Letter from Scotts Valley City Manager Jenny Haruyama • To Scotts Valley Business Owners:
A public hearing has been scheduled for Wednesday, August 16, 2017 at 6:30 p.m. at the City Council Chambers (One Civic Center Drive) to discuss and consider the rate increases.
As you may be aware, the City of Scotts Valley will be considering adjusting wastewater rates over a three-year period effective September 2017.
The results of a comprehensive rate study recommend rate adjustments to support operating costs and fund priority upgrades due to aging equipment and systems. Specifically, the change in rates will enable the City to establish a $1 million emergency reserve, ensure a cash flow reserve of 6 months, and set aside $100,000 annually to repair, upgrade, and/or replace equipment.
Currently, commercial rates are based on a uniform volumetric rate for all users and do not take into consideration the impact various industries have on the wastewater system. The proposed rate structure moves to a cost of service model, and proposes three commercial strength classifications (low, medium and high) with corresponding rates.
For instance, a low strength category would include retail and schools; a medium strength would be an office or hospital; and high strength would include restaurants and bakeries. An example of proposed rates and classifications are attached for your information.
We recognize that this change is significant and would like to offer to meet with the business community to discuss the proposed increase in wastewater rates in more detail.
In the meantime, if you have any questions, please feel free to contact me at [email protected] or (831) 440-5606 or Scott Hamby, Public Works Director at [email protected] or (831) 438-5854.