The City of San Bernardino Municipal Water Department (SBMWD) Board of Water Commissioners will conduct a public hearing to consider a proposed schedule of increases and changes to the rates and charges for domestic water service provided to its customers. If approved by the SBMWD Board of Water Commissioners, the increases would take effect on October 1, 2016, with subsequent annual increases in 2017 and 2018.

The public hearing will be conducted at the time, date and location specified above. All members of the public are invited to attend the public hearing.

This notice is being sent to all record owners of property upon which the proposed charges will be imposed and any tenants who are directly liable for the payment of such charges (i.e., customers of record who are not property owners).

SBMWD is dedicated to keeping its customers informed throughout the process. (See “How Can I Participate?” on page 7 to learn more.) More information about water rates and charges is included in this document and available at www.sbcity.org/waterrates2016

Para obtener esta notificación de audiencia pública en español, llame al (909) 384-5141.

IMPORTANT INFORMATION ABOUT YOUR RATES

Notice of Public Hearing PROPOSED CHANGES TO WATER RATES AND CHARGES

DATE: September 20, 2016 | TIME: 10:00 a.m. LOCATION: City Council Chambers

300 N. “D” Street, San Bernardino, CA 92418

WHY ARE NEW RATES BEING CONSIDERED?

Keeping Costs as Low as Possible

You have received this notice because the City of San Bernardino Municipal Water Department (SBMWD) is considering making changes to the current rates for its water service charges. As part of its commitment to transparent operation, SBMWD is sending this notice to all property owners and customers of record who receive water services from the Department and may be impacted by these changes.

SBMWD HAS CREATED THIS NOTICE TO:

Inform you about all potential changes that may affect your bill

Let you know the reasons for the rising cost of water

Share how you can participate in the process

Invite you to the public hearing at which the changes will be considered

SBMWD recognizes the importance of providing its customers with water service that is reliable and affordable. The Department weighs potential financial impacts in all decisions, and works diligently to keep water rates – and customer bills – as low as possible without impacting the quality of service customers have come to expect. Some of the ways the Department keeps costs down include:

SBMWD is committed to providing its customers with reliable water service as cost-efficiently as possible. As a public agency, the Department cannot earn a profit, and must charge no more than the actual costs associated with providing service.

The Department has not raised its water rates in 4 years. In that time, the water industry has faced significant challenges that have raised costs and reduced revenues for water providers across the state. These include: California’s historic drought; the rising cost of imported water; new water quality regulations; the increased expenses needed to power, operate, and maintain the complex system that treats and delivers your water; and the need to demonstrate fiscal responsibility and sustainability.

As SBMWD’s Board of Water Commissioners considers changes, our goal is to set rates that minimize the impact to customers, encourage conservation, reflect the true cost of water, and foster financial and operational stability to allow us to continue providing high-quality service now and in the future.

Operating with 40 fewer employees than is currently authorized and fewer employees than in 2007.

Implementing a merit-based pay system and requiring that employees pay for a larger portion of their benefits.

Implementing field leak detection program and replacing aging meters with leak detecting meters.

Securing approximately $350,000 of SCE rebates as a result of well and pump rehabilitation.

Proposing in-house pipeline replacement crew to manage costs of new legislation.

Implementing multiple electronic payment options saving $20,000 per year in postage and printing.

Why Have I Received This Notice?

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MINIMUM MONTHLY CHARGE: PROTECTING YOUR WATER SYSTEM

Water rates are made of VARIABLE CHARGES that change depending upon the amount of water used, and a MINIMUM MONTHLY CHARGE, which depends upon meter size.

The minimum monthly charge helps the Department cover the costs of fixed expenses such as water facility repairs, pipe replacement, meter reading, billing and customer service.

About Your Water Department

10.6 billion gallons of water were produced in 2015

SAN BERNARDINO MOUNTAINS

BUNKER HILL BASIN (Groundwater Aquifer)

SURFACE WATER RUNOFF

STATE WATER PROJECT

Water supply consists of 100% groundwater from the Bunker Hill Basin. The basin is mostly replenished naturally through surface water runoff. When available, SWP water also provides basin replenishment. In the future, recycled water will also replenish the basin.

2 air unit treatment plants

2 wastewater treatment plants

4 Granular Activated Carbon(GAC) water treatment plants

38 active storage reservoirs/tanks

55 groundwater wells

126 million gallons of water storage capacity

750 miles of pipeline in service area

DID YOU KNOW?

FROM THE SOURCE

WATER IS TREATEDAND

DELIVERED TO YOU

As a public agency, the department cannot earn a profit from the services it provides, and must charge no more than the actual costs associated with providing services to its customers.

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How are rates calculated?

UNIT CURRENT RATESPROPOSED RATES OCTOBER 1, 2016

PROPOSED RATES JULY 1, 2017

PROPOSED RATES JULY 1, 2018

Minimum Monthly Charge:Including Single Family Residences, Multiple Family Connections, Commercial, Landscape, and Industrial Services

W a t e r M e t e r s i z e

1/2 & 5/8 Inch Per Month $12.90 $16.09 $19.58 $23.39

3/4 Inch Per Month $16.15 $20.15 $24.51 $29.28

1 Inch Per Month $22.60 $28.19 $34.30 $40.98

1 1/2 Inch Per Month $38.80 $48.40 $58.88 $70.35

2 Inch Per Month $58.20 $72.60 $88.32 $105.52

3 Inch Per Month $103.50 $129.12 $157.06 $187.66

4 Inch Per Month $158.20 $197.36 $240.07 $286.83

6 Inch Per Month $330.00 $411.68 $500.78 $598.33

8 Inch Per Month $524.15 $653.88 $795.40 $950.34

10 Inch Per Month $750.65 $936.44 $1,139.12 $1,361.01

DID YOU KNOW?Many of SBMWD’s expenses do not vary based upon the quantity of water used by our customers. Minimum monthly charges protect service and reliability by providing revenue regardless of the amount of water sold.

Rates for water service charges are billed monthly and made up of a fixed Minimum Monthly Charge, and a number of variable charges that change based upon the amount of water use. These components are structured to proportionately allocate the costs of service among SBMWD customers.

Rates for the Minimum Monthly Charge are established on the basis of the size of the water meter serving each property. These rates, which apply to single family and multiple family residential customers as well as commercial, landscape, and industrial customers, are calculated to recover fixed costs that do not vary depending upon the amount of water delivered.

Commodity Charges are determined based on the amount of water served to a property in hundred cubic feet (HCF) (one HCF = 748 gallons). This flat rate charge is structured to recover a portion of SBMWD’s fixed costs, and the costs of producing and delivering water. Replenishment, conservation, and elevation charges are also calculated per HCF of water served to a property.

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GLOSSARY

UNIT CURRENT RATESPROPOSED RATES OCTOBER 1, 2016

PROPOSED RATES JULY 1, 2017

PROPOSED RATES JULY 1, 2018

Usage Charges: c a t e g o r y

Commodity Charge Per HCF $1.15 $1.15 $1.15 $1.15

Replenishment Charge Per HCF $0.09 $0.11 $0.14 $0.17

Conservation Charge Per HCF $0.35 $0.49 $0.49 $0.49

Minimum Monthly Charge – Monthly fixed charge, based upon meter size, applied to single family and multiple family residential customers as well as commercial, landscape, and industrial customers.

Commodity Charge – Flat rate, variable charge based on the number of units of water delivered to a property. 1 unit = 1 hundred cubic feet (HCF) = 748 gallons.

Replenishment Charge – Flat rate, variable charge based on the number of units of water delivered to a property. 1 unit = 1 hundred cubic feet (HCF) = 748 gallons. Revenues from this charge help defray the costs associated with purchasing water for groundwater replenishment.

Conservation Charge – Flat rate, variable charge based on the number of units of water delivered to a property. 1 unit = 1 hundred cubic feet (HCF) = 748 gallons. Revenues from this charge help maintain sufficient operating revenues to provide customers with the same level of service in a time of drought.

Elevation Charge – Flat rate based on customer elevation zone, variable charge based on the number of units of water delivered to a property. 1 unit = 1 hundred cubic feet (HCF) = 748 gallons. Revenues from this charge help defray the power and infrastructure costs associated with delivering water to higher elevations.

UNIT CURRENT RATESPROPOSED RATES OCTOBER 1, 2016

PROPOSED RATES JULY 1, 2017

PROPOSED RATES JULY 1, 2018

Elevation Charge:Z o n e

Zone 1 Per HCF $0.11 $0.11 $0.11 $0.11

Zone 2 Per HCF $0.19 $0.19 $0.19 $0.19

Zone 3 Per HCF $0.17 $0.17 $0.17 $0.17

Zone 4 Per HCF $0.14 $0.14 $0.14 $0.14

Zone 5 Per HCF $0.23 $0.23 $0.23 $0.23

Zone 6 Per HCF $0.23 $0.23 $0.23 $0.23

DID YOU KNOW?A single gallon of water weighs 8.35 pounds, so lifting water to customers at higher elevations requires a lot of power!

Elevations charges make sure that customers at all elevations are charged appropriately for the power associated with their water delivery.

Note: no rate increases are proposed for the commodity and elevation charges described in the tables above

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How will this impact my bill?

BILL ESTIMATOR

Interested in learning how your bill would change under the proposed rates? TRY THE BILL ESTIMATOR!

Just log on to www.sbcity.org/waterrates2016, select your meter size, and enter your monthly water usage to calculate your new water bill and see the difference if new water rates are adopted.

SBMWD wants its customers to understand the true impacts of the proposed rate changes, if they are adopted by the Board of Water Commissioners.

The table below lists an average customer’s bill, and shows how that bill would change under the proposed rates.

Average customer: 16hcf water used per month, 5/8” meter size. (1 hcf = 748 gallons.)

Average Monthly Bill Comparison

SBMWD Existing $35.59

Proposed 2016 $39.11

Proposed 2017 $43.07

Proposed 2018 $47.36

0

$10

$20

$30

$40

$50

$60

$70

$80

Fontana Water

Company

East Valley Water

District

City of Rialto

City of Redlands

City of Riverside

SBMWD Proposed

SBMWD Current

City of Colton

Cucamonga Valley Water

District

LOCAL WATER PROVIDER BILL COMPARISON

Riverside – Average of summer and winter rates; currently reviewing water rates SBMWD – Average of six elevation charge zonesCucamonga Valley Water District – Includes Stage 6 Drought Surcharge; increases to $66.28 by 7/1/18Fontana Water Company – Not including any potential drought surcharges

NOTES

As the graph comparing a typical water customer at multiple local water providers shows, SBMWD has consistently maintained some of the region’s lowest water rates.

West Valley Water

District

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How can I participate?

The City of San Bernardino Municipal Water Department welcomes your input as its Board of Water Commissioners consider the changes explained in this notice. If you have questions or comments, you can:

Call, visit or log-on – Additional information about the proposed increases, including the cost of service and rate analysis, is available for review at the SBMWD Office, by calling (909) 384-5141, or on our website: www.sbcity.org/waterrates2016

Write – Any record owner of a parcel upon which the proposed charges will be imposed and tenants directly liable for the payment of the proposed charges has the right to submit a formal written protest to the proposed rates, but only one protest may be counted per parcel. Written protests may be mailed or hand delivered to:

City of San Bernardino Municipal Water Department, Attention: Robin L. Ohama, Deputy General ManagerP.O. Box 710, San Bernardino, CA 92402

or at the public hearing (date, time and location noted below). Written protests must be received prior to the conclusion of the public input portion of the public hearing. Protests to the proposed rates must include your name, signature, street address, parcel number and/or account number. Protests submitted by email or other electronic means do not count as formal written protests.

Attend a public meeting/hearing – The public hearing will take place on September 20, 2016, at 10:00 a.m., at the City of San Bernardino City Hall, 300 N. “D” Street, San Bernardino, CA 92418. After the conclusion of the public hearing, the Board of Water Commissioners will make a recommendation regarding the adoption of proposed rate increases. At the public hearing, all members of the public will have an opportunity to speak, but verbal comments alone do not qualify as a formal protest.

Public hearing process – At the time of the public hearing, the Board of Water Commissioners will hear and consider all written protests and public comments. After the hearing, if a majority of the property owners of the impacted parcels or tenants directly liable for the payment of the charges submit written protests in opposition to the proposed rate increases, the increases will not be imposed. If a majority protest is not received, SBMWD’s Board of Water Commissioners may adopt the proposed changes, though they are not obligated to. If adopted, the proposed rates will become effective October 1, 2016, and subsequent increases would be effective annually on July 1, 2017 and July 1, 2018.

We all have a responsibility to protect our resources and use them wisely. SBMWD is working hard to provide you, our customer, with the tools and resources you need to become more water efficient. We offer many conservation rebate programs to encourage you to save water both indoors and out.

For information about how to save water, water restrictions, and conservation incentives, please visit conserve.sbmwd.org or call (909) 384-5141 today!

WATER CONSERVATION IN OUR COMMUNITY

Create a custom water-saving checklist

Find rebates

Keep up on the latest drought information

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SBMWD will host a series of open house public meetings to discuss the proposed rate changes with the community. All members of the public are invited to attend, ask questions, and share feedback. You can also view the presentation and provide feedback online at www.sbcity.org/water. Please join us at the time and location that is most convenient for you.

PUBLIC MEETING: Wednesday, August 17, 2016

Time – 6:30 p.m.Location – Cesar Chavez Middle School 6650 N Magnolia AvenueSan Bernardino, CA 92407

PUBLIC MEETING: Tuesday, August 23, 2016

Time – 6:30 p.m. Location – Arrowhead Country Club3433 Parkside DriveSan Bernardino, CA 92404

PUBLIC MEETING: Tuesday, August 30, 2016

Time – 6:30 p.m. Location – San Bernardino City Hall Council Chambers300 N. “D” StreetSan Bernardino, CA 92418

City of San Bernardino Municipal Water Department300 N. “D” StreetSan Bernardino, CA 92418

IMPORTANT INFORMATION ABOUT YOUR RATES

JOIN US AT A PUBLIC MEETING!