HomeMy WebLinkAbout3-11-11 BiggsGiTY o~ Boos
465 C Sra>=mar
P.O. Box 307
BEGGS, CALIFORNIA 9591 7
TELI=PHONE (530) 868-5493
www.biggs-ca.gav
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NOTICE: PROPOSED WATER RATE ADJUSTMENT
This notice is to inform you about proposed changes to the city water rates, and your opportunity to
protest the changes. The proposed increase in water rates will apply to the property(ies) you own
located in the City of Biggs.
The proposed monthly rates are as follows:
Metered Rates:
Minimum Service Minimum
Pipe Size Charge Usage {C.F.) Rate per 1000 CF
314" 41.85 7000 $8.20
1" 41.85 7000 $8.20
1.5" 48.57 7000 $8.20
2" 54.57 7000 $8.20
3" 105.14 9032 $6.20
4" 145.9 4 15,510 $6.20
fi" 253.14 32,984 $6.20
Flat Rates:
Residential -Single Family $41.85
Residentia! -Multi Family $41.85
ChurcheslLodges $52.85
BusinesslRetaif $71.85
Restaurants113ars $81.85
Service Stations $182.85
Day Care Centers & Pre Schoo[ Facilities Up to 10 Children $52.85
Day Care Centers & Pre School Facilities More than 10 Children $62.85
Schools Set Case by Case
Industrial Set Case by Case
Note: '[.) Metered Rates are per month. Charges above the minimum usage are
based on a per 1000 C. F. (cubic feet) amount.
Note 2.y The city will also collect $13.95 per month from each account for the Capital
Improvement Account.
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Why is the change needed?
Water service rates in Biggs need to be restructured to achieve a more equitable share of costs
among customers, and raised in order to meet the costs bf providing the service. The reason for the
proposed increase is to meet the actual cost of providing water service and the basis for the
increase is set forth below.
Costs include ongoing daily operations of the city's three wells, operation and testing of the
treatment systems by licensed workers, maintenance of the underground distribution network,
engineering services and administration. Costs also include debt service on loans to pay for capital
infrastructure improvements.
Projects completed within the past three years include:
o Complete refurbishing of the two primary freshwater drinking wells;
o Replacement of 74% of the city's oldest water delivery pipes;
o Installation of meters and new service lines to about half the city's properties;
o Addition of a '[0,000-gallon hydro-pneumatic tank to control pressure consistency;
o Automated telemetry systems to electronically balance operational controls; and
o Auto-start generators to back-up the system in case of power outages.
Today we have a water system providing reliable, top-quality drinking water and consistent water
pressure of approximately 55 psi (pounds per square inch), up from 35 psi just a few years ago.
Perhaps most important is that hydrant water availability #or emergency ~refghting has gone from
poor to excellent. The old water tower is no longer in use.
Costs of the project were estimated in 2D05 and rates adjusted accordingly in 2006. Now that the
project is complete and operations of the new equipment are established, rates have again been
compared #o expenses. The City water utility is currently generating less revenue than is required to
cover necessary expenses and loan payments far the water project.
A Citizens Water Rate Advisory Committee studied the situation aver atwo-month period and made
several specific recommendations to the City Council in January. These recommendations include
modifying the rate structure to close the gap between metered and non-metered customers,
proceeding with the installation of meters to non-metered business customers, and adjusting rates to
achieve coverage of the costs to operate the water utility.
How will customers be affected?
Water system costs, usage allowances and rates vary and are structured differently in each
community. Customer bills in Biggs are currently $46.101mo for non-metered (fiat rate) customers
and average $551rno for metered customers. This metered average includes a range from $381mo
to well over $1001mo, depending on the customer's water consumption. Part of the rate change
involves adjusting the minimum allotment from 1250 CF to 7000 C1=. It is anticipated that most
metered customers will stay within the new allotment most of time.
With the proposed changes to the Biggs rate structure, most residential customers are expected to
pay $55.00 per month all or most months of the year. This compares to rates in regional
communities where the monthly bill for typical usage ranges from $24-67/mo. Biggs' rates have not
been adjusted since 2006.
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In accordance with California Proposition 218 (The Right to Vote on Taxes Act, 1996}, the ci#y is
providing the opportunity for written protests to be considered, and will hold a public hearing to
consider public comments. The City Clerk will collect protest letters, tabulate and report them to the
City Council; if a majority protest is received the rate increase process will be stopped.
Notice of Public Hearing
A public hearing on the proposed water rate restructure and increase will be held
at the City Council meeting on Monday, May 2, 2D11, at 6:OOpm
in the city council chambers located at City Hall, 3016 Sixth Street, Biggs.
The City Council invites all rate payers to comment on the proposed rate increase. Rate payers'
comments must be submitted in writing, even if the commenter is attendin the ublic hearin , by
Monday, May 2, 2011. Any rate payer subject to the rate increase may protest the increase by fling
a written protest with the City Clerk at or before the close of the public hearing. The written protest
must include the rate payer name and signature, and the property address or Assessor Parcel
Number. Only one protest per parcel will be considered. If you are not in opposition to the proposed
rate increase, no action is required on your part.
Written comments and Protests may be submitted to the City of Biggs, Attention City Clerk,
PO Box 307, Biggs, CA 95917.
Key dates: Monday, May 2, 6:OOpm
Public Hearing -Special Meeting
Letters of protest due to City Hall
Monday, May 16, 6:00 pm
June 16, 2011
Regular City Council Meeting
Second and frnal consideration of rates
New rates would be effective
Additional detailed information is available upon request from city hall and on the city website:
www.~iggs~ca.gov
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