At a public meeting Tuesday, Dublin San Ramon Services District (DSRSD) Board of Directors voted unanimously to close a shortfall in its wastewater operations budget with a rate increase of $39.78 per year for residential wastewater customers in Dublin and south San Ramon.

In a separate action, the DSRSD Board voted unanimously to authorize a potential increase in the Temporary Infrastructure Charge paid by water customers in Dublin and Dougherty Valley. Later this year or in early 2011, the Board will determine if the charge needs to change after restructuring two variable rate loans into a fixed rate bond. Board members cited the need to demonstrate that DSRSD has the ability to pay its debt in order to receive favorable financing terms and thus lower long term debt service costs. The increase in the Temporary Infrastructure Charge is a direct result of the City of Dublin’s and the City of San Ramon’s overestimating the demand for services in Dublin and in the Windemere/Gale Ranch area. Without the expected waste and sewer hookup fee payment from developers, DSRSD has no other choice but to raise rates for water customers. Director Georgean Vonheeder-Leopold was a member of Dublin City Council from 1984 to 1990, after serving two years on Dublin’s first Planning Commission.

DSRSD received 55 letters opposing the wastewater rate increase and 67 opposing the potential increase in the Temporary Infrastructure Charge. Five people spoke against each proposal and asked the Board instead to decrease costs and look for other sources of revenue.

DSRSD has decreased operating expenses by $4.3 million and reduced staffing levels by 17.5 percent since fiscal year 2009, implemented furloughs, deferred cost-of-living increases, suspended or eliminated several employee benefit programs, and shared costs of medical and pension benefits with employees and retirees. It has also deferred all but essential capital improvement projects and capital outlays and examined many of its business practices by acting on more than 75 ideas suggested by employees and Board members. At the meeting, Operations Manager Dan Gallagher cited one example. DSRSD has been buying chemicals jointly with seven other public agencies, reducing the cost of sodium hypochlorite, a form of bleach used to disinfect treated wastewater and recycled water, by 24.5 percent, saving DSRSD $48,000 in the coming year.

“We have a long-standing policy to use debt only to build things, like the infrastructure that allows Dougherty Valley and eastern Dublin to exist…and to have developers pay for debt. However, when there is no development, this falls to the rate payers. I hate this charge, but we can’t default on our bonds,” said Director Richard Halket.

“My 88-year-old mother exists on her Social Security income only. She is a resident of San Ramon and I know this will be difficult for her,” said Director Pat Howard, “but we have to protect our community assets, which are worth millions of dollars. Board members are custodians of these assets. We also need good, well trained people on hand to protect and operate these assets.”

The wastewater rate change will be phased in, with two-thirds of the increase taking effect January 1, 2011, and the remainder on July 1, 2011.

If the maximum Temporary Infrastructure Charge becomes the actual Temporary Infrastructure Charge later this year or early next year, residential customers could pay up to $30 every two months instead of the current $18.