San Mateo examining sewer rate increases

Other financial issues that will affect rates include new equipment maintenance at the wastewater treatment plant, more utility and chemical needs and more staffing to operate and maintain the facility. There will also be increased utility costs at the treatment plant and updating to meet state regulatory compliance standards. The city’s current sewer rate structure started in 2018 and goes through 2023. San Mateo is working with contractor Bartle Wells to determine 2023 sewer rates.

Over the past six years, rate increases have helped support San Mateo’s Clean Water Program and improved the city’s future financial burdens on the wastewater system. The rate increases and low rate interest loans from the federal government for wastewater system infrastructure projects have put the city in a stronger position and reduced debt service, which the council highlighted. Councilmembers praised city staff for spreading out the financial payment of capital improvement projects. The maneuvering ensured rate increases did not hit customers all at once and helped the city’s long-term financial flexibility. The increased rates spread out over the years means future increases will likely only be in the single digits and be related to inflation, staff said. The city still falls within a similar price range to other cities in the area like Burlingame and San Carlos.

“If we had not gotten the low-interest loans, it would feel like $10 a gallon at the pump for regular ratepayers,” Councilmember Joe Goethals said.

A city analysis showed a need for more maintenance staff, with not enough current staff to support operations, estimated at around five positions. The city said there is enough revenue to support increased staffing. San Mateo wants to have new staffing in place by the spring in advance of upcoming training sessions for the upgraded plant. San Mateo broke ground on wastewater treatment plant upgrades on Detroit Drive in 2019, with completion scheduled for 2024. The project will modernize and expand the facility to upgrade aging infrastructure. The city is also creating an underground flow equalization system with a 5.3-million gallon structure to eliminate sanitary sewer overflows during heavy rains.

“We need to fully staff the wastewater treatment plant in the ways that are necessary, and we should keep pace with inflation and set rates that will prevent future double-digit increases,” Goethals said.

curtis@smdailyjournal.com

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