City Takes Sewer Rate Shift to the People With Monday Workshop

Keep. It. Simple.

That’s the city of Mill Valley’s MO for the March 26 public workshop on its . On the heels of Monday’s Mill Valley City Council discussion about sewer rates that seemingly left everyone in the room a bit confused, the goal for the presentation to the public is to answer a few vital questions:

• Why has the city ?
• Why is the city moving toward a and thus discharge into the sewers?
• How does it affect me?

“To make sure everything is clear is the important thing,” City Manager Jim McCann said. “We’ve got to remind people that we’ve got a sewer system that is not as old as the city but almost, and as a result it needs some attention. We want to take the rate structure and make it as fair as possible.”

The move towards a flow-based rate kicked off in June 2011, when the City Council from $297, which was among the lowest charges in Marin, to $600, a 102 percent spike. City officials cited rising costs from the (SASM), the joint powers agency that collects and treats wastewater for approximately 28,000 residents in Mill Valley and five neighboring sanitary districts, as well as more stringent state regulations and an Environmental Protection Agency order issued in the wake of SASM’s massive 2008 spill of more than 3 million gallons of wastewater. The spills resulted in a $1.6 million fine.

The lion’s share of the rate hike goes towards an overhaul of a large chunk of the city’s 59 miles of sewer pipes, much of which dates back some 50 years. An EPA-mandated video survey of 12.6 miles of the system found it laden with a variety of defects, including cracks, holes, blockages and tree root intrusion.

After the council approved the rate hike, which also calls for a 13 percent increase in 2012-2013 and a 1 percent rise in 2014-2015, it directed staff to explore moving towards charging people based on how much water they consume. Councilmembers said such a move would create the most fair and equitable system, ensuring that the heaviest water users paid more than those who conserved.

The first proposal was for a formula that was half flow-based and half-fixed. The idea was to encourage water conservation and a more equitable rate structure without jeopardizing the revenue the city needs to pay its bills and upgrade its aging sewer system. That formula had some unintended consequences, however, as some businesses that put the lowest strain on the sewer system – offices, for instance – saw their charges skyrocket.

City officials with a proposal to charge customers using a 100 percent flow-based rate. The reversal back to a formula that the council had originally requested, along with some missing information in the staff report, drew the ire of several councilmembers.

“It would almost seem like we’ve done an about-face tonight,” said Vice Mayor Andrew Berman. “Because we’ve now spent tons of time educating the public with staff reports saying we have to have a certain minimum percentage to meet our nut. Now we’re saying we don’t need that.”

Based on the 100- percent flow-based proposal, which the council backed informally Monday night, the highest residential water users in Mill Valley would see their rates rise from $600 in 2011-2012 to an estimated $1,276 in 2012-2013 (see charts at right), a 113 percent increase. The lowest users – those whose water consumption is half of the median – would see their rates drop to $327, a nearly 46 percent reduction.

For businesses, the impact varies based on the type of business and how much of a burden it puts on the sewer system. Restaurants and markets would benefit most from the proposal, seeing anywhere from a 31 to 47 percent drop in rates compared to what they would pay in 2012-2013 under the current formula, which includes both flow-based and fixed charges.

The council still has two major areas to address, and it will likely do so at its April 2 meeting.

• Whether the city should raise more money for its sewer system upgrades that the council approved in June 2011, and if so, how do raise through the money – through higher rates or debt financing
• What system should the city create to make sure the city raises the revenue it needs each year, even if customers begin conserving water to lower both their water and sewer bills.

“There are infrastructure repairs that we have to do but I don’t think we’re going to be able to take on more aggressive approach on that and stick it on the consumer,” Berman said in encouraging city officials to pursue debt financing.

Despite the confusion and the fact that there are more decisions to be made, one resident said he appreciated the city’s effort to move toward a flow-based system.

“Even if it’s somewhat unclear now, at least it is moving toward some clarity and some basic principles of equity and fairness,” said Lovell Ave. resident Daniel Meltzer. “One thing we don’t condone in any way are subsidies for one class of ratepayer over another. So let’s all take a deep breath – thanks for your efforts.”

The 411: The city of Mill Valley is hosting a public workshop on sewer rates at 7 p.m. on Monday, March 26 at the , 180 Camino Alto. Background materials will be provided.