Wastewater Treatment Plant Improvements and Rate Study

On April 21, 2010, the City Council approved several actions related to the City’s wastewater treatment plant. Specifically, the Council:

1) Approved the City of Palm Springs Wastewater Treatment Plant Capital Repair and Rehabilitation Plan; and

2) Approved the City of Palm Springs Wastewater Financial Plan and Rate Study; and

3) Authorized staff to proceed with Proposition 218 majority protest noticing, and scheduled a Public Hearing for June 16, 2010, to consider the matter of increasing sewer service charges in accordance with the Financial Plan and Rate Study.

The City’s wastewater treatment plant was originally constructed in 1960, and is now 50 years old. No significant improvements have been made at the treatment plant since 1983, and needed repairs of it have generally been deferred and are now required. A comprehensive study of the City’s treatment plant was completed, and determined that approximately $67 Million in major rehabilitation and repair projects at the treatment plant are required over the next 20 years.

The City’s sewer utility rates charged to property owners for sewer service are $10.36 per month. The current rate of $10.36 per month has not changed since 1993, and remains one of the lowest sewer utility rates in California (well below the current statewide average of $36.58 per month). The City’s current sewer utility rates are too low to fund the required projects at the treatment plant, or to cover ongoing operation and maintenance costs of the City’s sewer system.

A financial plan and rate study of the City’s wastewater fund was completed, and determined that the City’s current sewer utility rate of $10.36 per month would need to be increased to adequately cover the required projects at the treatment plant, and future operation and maintenance costs of the sewer system. The City Council approved the financial plan and rate study, which recommends that the current sewer utility rate be increased from $10.36 per month to $20 per month over a three year period, and at approximately $1 per month annually over the next 16 years to a maximum rate of $35 per month by 2028.

The proposed maximum sewer utility rate increase to $35 per month by 2028 remains less than the current statewide average sewer utility rate of $36.58 today.

The City Council has scheduled a Public Hearing on the proposed sewer utility rate increase for June 16, 2010, to be held at the City Hall Chambers located at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262. Pursuant to Proposition 218 passed by the voters of California in 1996, the City must provide a 45-day notice to all property owners who have sewer service about the proposed sewer utility rate increase. Property owners are entitled to submit written protests to the City objecting to the rate increase, provided the written protest includes the following information:

1. Identifies the name of the property owner or tenant;
2. Identifies the location of the property by address or Assessor’s Parcel Number); and
3. Includes the signature of the property owner or tenant

Written protests may not be sent via email, as it must include the signature of the property owner or tenant residing at the property.

Written protests may be hand delivered to the City Clerk, or be mailed to the City Clerk, Jay Thompson, at 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262. Written protests must be submitted prior to the close of the Public Hearing on June 16, 2010.

Property owners are encouraged to review the City’s reports related to the sewer utility rate increase during the 45-day public noticing period. The reports are available for review at the Public Works and Engineering Department counter, and here:

Staff Report for City Council Meeting - April 21, 2010

Carollo Engineering 20-Year CIP FINAL Report - February 2010

Palm Springs Wastewater Financial and Rate Study FINAL Report - February 2010

For further information please contact Marcus Fuller, Assistant Director of Public Works at (760) 323-8253, ext. 8744, or marcus.fuller@palmspringsca.gov.