DEPARTMENT: Finance
DEPARTMENT HEAD: Ben Gorzell, Chief Financial Officer, Troy Elliott, Deputy Chief Financial Officer
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
San Antonio Water System (SAWS) Proposed Rate Adjustments for 2018 and 2019
SUMMARY:
An Ordinance approving 1) adjustments to the 2018 and 2019 residential, general, irrigation, wholesale and recycled class rates; 2) adjustments to various fees and charges related to special services provided by SAWS; and 3) amendments to Chapter 34 of the City Code consistent with those modifications and other necessary City Code amendments and clarifications.
BACKGROUND INFORMATION:
The City Council will be asked to consider SAWS' proposed changes to the residential, general, irrigation, wholesale and recycled class rates for 2018 and 2019 and changes to fees and charges for special services provided by SAWS, as well as amending Chapter 34 of the City Code to be consistent with those changes and make certain clarifying wording changes requested by SAWS.
The rate adjustments were presented to City Council at a B-session on October 18, 2017. As discussed in that meeting, SAWS is requesting rate adjustments of 5.8% and 4.7% for 2018 and 2019 respectively. The drivers of the rate increase identified by SAWS are:
* Capital projects in 2018 and 2019 focused on the water & sewer infrastructure;
o Replacing and upgrading sewer mains to comply with the Consent Decree with the
EPA on Sanitary Sewer Overflows (SSOs), and
o A renewed emphasis on the Water Delivery system to address aging infrastructure.
* O&M needs in 2019 including:
o Automated Metering Infrastructure rollout to be based on pilot results in 2018, and
o Operating reserve increases required by the bond indenture for the additional O&M cost from the Vista Ridge Project scheduled to start in April of 2020.
The Public Utilities Staff of the Finance Department conducted a comprehensive review of the proposed rate adjustments as documented in the a...
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