San Francisco Water, Sewage Rates to Skyrocket in July

San Francisco residents can expect to pay a lot more
for their water and sewage service beginning in July
if a majority of property owners fail to object to new rate hikes
proposed by the San Francisco Public Utilities Commission.
Photo by Luke Thomas

By Hope Johnson

April 7, 2009

San Francisco water and sewer rates are set to increase substantially in July unless a majority of property owners object to rate increases currently being proposed by the San Francisco Public Utilities Commission.

But, there’s a catch. Due to the passage of Prop 218, objections to the proposed rate increases must be received in writing.

The intent of Prop 218, passed by California voters 1996, is to prevent local governments from arbitrarily increasing taxes and fees under Prop 13, the constitutional amendment limiting property taxes to 1 percent of cash value. But the proposition also mandates that opposition to municipal rate increases must be expressed in writing by property owners.

According to legally required literature mailed by the SFPUC to all potentially affected residents, the proposed rate increases cannot be implemented if written “protests are received by a majority of the affected property owners and customers” by May 5.

Deputy City Attorney John Roddy, attending yesterday’s Rate Fairness Board hearing on the SFPUC’s proposed rate increases, acknowledged that for complaints to be officially accepted, they must be sent to the SFPUC in writing by the customer directly responsible for paying the utility bill, generally the property owner.

Renter objections may not be considered official even when submitted in writing, Roddy said. Despite comprising nearly 63 percent of city residents, renters generally do not fall within the legal definition of “customer” because charges are either incorporated into rent or paid directly to landlords rather than the utility.

“It’s a gray area in Prop 218,” Roddy conceded when asked if the SFPUC would officially accept written objections from renters. “The SFPUC needs to be able to verify the comment is from an affected customer.”

Roddy expressed doubt the SFPUC would address the issue for the current rate increase proposal because written complaints would have to be received by tens of thousands of renters to meet the majority requirement.

Roddy also said he was uncertain if emailed objections would be accepted as official objections to the proposed rate increases.

Proposed increases will double residential water bills by 2014, consecutively raising rates in sizable increments by 13.4, 14.4, 12.5, 12.9, and 7.1 percent respectively over the next five years. Residential sewer rates will also double within five years under the SFPUC’s proposed rate changes.

According to SFPUC Assistant General Manager and Chief Financial Officer Todd Rydstrom, the average residential bill, currently $42.03 per month, would swell to $73.68 per month by 2014.

“As I’m sure you all know, rates for the water and sewer service in the city and county will be rising again,” said Rate Fairness Board Vice Chair Howard Ash. “I expect they will continue to rise for years to come.”

“It is coming at a very bad time for the average Joe out there,” a property owner responded during public comment. “I would ask that these costs… be spread out over a longer period of time and matched somehow to inflation. Inflation is very low now, less than 1 percent.”

According to SFPUC Director of Communications Tony Winnicker, the proposed rate increases will fund a $4.4 million Water System Improvement Plan (WISP), approved by voters in 2002. The plan provides for upgrades to outdated water and sewage systems, improved flood controls, and preparation for future droughts, climate change and earthquakes.

The changes fail to allocate a share of the sewer rate increases to commercial customers, leaving their sewer rates unchanged over the next five years.

At no time during the hearing did any commissioner or SFPUC staff member explain the official procedure for submitting protests, or discuss the May 5th deadline for written objections.

Tenants and property owners may have one final, more traditional avenue for opposing the rate increases. The Board of Supervisors has authority to reject the approved rates within 30 days prior to the date the new rates are scheduled to take effect, currently July 1, 2009.

Elected officials are taking notice of the impact the large increases will have on rate payers. District 4 Supervisor Carmen Chu said today she will continue to monitor the progress of WISP projects the SFPUC has stated increased fees will fund.

The Rate Fairness Board plans to make its recommendation to the SFPUC on the proposed increases during an April 28th hearing to be held at 1:30 p.m. in Room 400 of City Hall. Approval of rates by the SFPUC is scheduled for May 5th at 10:00 a.m. in Room 416.

Sanctioned objections to the rate increases are those submitted in writing by the May 5 deadline to the SFPUC Commission Secretary at 1155 Market Street, 11th Floor, San Francisco, CA 94103, and must include the property parcel number or SFPUC customer account number.

Hope Johnson

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