The Hollister City Council on Monday night unanimously agreed to
follow a consultant’s plan and drop bi-monthly sewer rates for
single-family homes by nearly $40 in light of the new wastewater
plant’s budget coming in $20 million lower than expected.
HOLLISTER
The Hollister City Council on Monday night unanimously agreed to follow a consultant’s plan and drop bi-monthly sewer rates for single-family homes by nearly $40 in light of the new wastewater plant’s budget coming in $20 million lower than expected.
San Francisco based Stone and Youngberg’s recommendation calls for single-family residences’ rates to go from $180.29 to $142.68 immediately (see a list below of rate cuts for other types of units).
City Manager Clint Quilter at the meeting said officials’ goal was to “cut as much now,” giving residents the lowest rates possible.
The rates will increase 10 percent over each of the next three fiscal years and eight percent in 2011-12. That graduate increase coincides with the original plan – rates next were scheduled to increase to $248.20 – but from the lower starting point.
At the end of the 2011-2012 fiscal year, after the payment bonds have stabilized, Quilter said officials will re-examine the rates.
The old rate schedule had called for a 39 percent raise for this fiscal year and a 38 percent raise the following year.
City Engineering Manager Steve Wittry estimated the final cost of the sewer plant at nearly $105 million. As of now, the plant is not fully completed and there also is a construction contingency of $3.34 million in case of increased costs. Wittry said the numbers are on the conservative side, so they have the possibility of being reduced further.
These numbers assume a 0 percent growth rate. Quilter said that with the moratorium being lifted and new construction a possibility, the rates will drop even further.
For an expanded version of this story, see Friday’s Free Lance.
Rate Schedule
Single Family Residential
Old rate: $180
Adjusted rate: $143
Multi-Family Residential
Old rate: $157
Adjusted rate: $124
Mobile Homes
Old rate: $110
Adjusted rate: $87
Commercial/Industrial – low strength
Old rate: $85
Adjusted rate: $67
Commercial/Industrial – moderate strength
Old rate: $158
Adjusted rate: $125
Industrial – high strength
Old rate: $613
Adjusted rate: $485
Schools – per pupil
Old rate: $6.57
Adjusted rate: $5.19
