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City Sewer Department Settlement Brings Long Overdue Refunds to Residents
In June of 2004, the city council revised sewer rates -- boosting those of commercial users and lowering those of residents to eliminate the overcharges to residents. But the city did not offer to reimburse residential ratepayers for years of overpayment. So Michael Shames requested a refund last year. When he was turned down, he initiated a class action to get money reimbursed.
After over two years of litigation, the City and Michael have agreed to settlement that would return about $40 million to overcharged residential customers and would allow for the creation of independent oversight of City water and sewer operations. The latter may be the most valuable part of this settlement, as it gives City utility customers the ability to effectively question future rate increases.
This settlement affects all SINGLE-FAMILY RESIDENTIAL SEWER CUSTOMERS (WITH ADDRESSES INSIDE THE CITY OF SAN DIEGO LIMITS) WHO PAID SEWER BILLS FROM MAY 23, 1994 THROUGH SEPTEMBER 30, 2004.
In the coming months, a notice will be sent in your sewer bill, which informs you that you will be entitled to share in a FORTY MILLION DOLLAR ($40,000,000.00) settlement fund if you choose to be a member of a Settlement Class provisionally certified by the Superior Court of California, for the County of San Diego.
If you are CURRENT single family residential sewer customer and you reside at an address that had a water meter in existence as of September 30, 2004, your monthly sewer bill will be credited automatically for the next four years. YOU DO NOT NEED TO DO ANYTHING ELSE TO PARTICIPATE.
If you are NOT a CURRENT single family residential sewer customer, you still be may be entitled to a cash payment. However, you MUST submit a Proof of Claim Form within a period of time that will be discussed in the notice.
The San Diego Superior Court will schedule a Fairness Hearing to be held before the Hon. Ronald M. Prager in Department 71 of the San Diego Superior Court, 330 West Broadway, San Diego, CA 92101 to (1) consider and determine the fairness, reasonableness, and adequacy of the Settlement described above; (2) consider whether to certify the Settlement Class and (3) consider Class Counsels’ application for attorneys fees for 12.5% of the settlement fund , and reimbursement of reasonable expenses and costs.
UCAN will conduct an application process for qualified non-profits to use the access to utility bills to solicit money for the independent oversight of the City Water and Sewer departments. Details of that application process will be forthcoming. Groups interested in taking advantage of the process will need to meet minimum requirements, that include:
- $250K initial budget for staffing and inserts
- 501(c)(3) status
- Experience with rate case or financial review of utility operations
- An identified staff person who will oversee consultants/experts hired with the solicitation monies
- An adequate accounting system to confirm intake and expenditures of money raised by the solicitation
- Some public track record so as to have sufficient credibility
- No conflicts of interest with the City e.g. truly independent status
November 20, 2006 North County Times and San Diego Union Tribune.
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Was credit for the refund
Was credit for the refund reflected in our bills?
Sewer refunds reflected on my July 20th bill & more to come
My current bill contains the following prorated credits: 1) $1.66 credit for "reversal of sewer base fee settlement increase"; 2) $2.34 credit for "reversal of sewer service charge settlement increase"; and 3) $6.50 for "sewer settlement credit". With the refund/credit amounts, the City of San Diego Water & Wastewater Services included a note at the bottom of the billing statement that says: "Effective July 1, 2008, your sewer charge is $58.98 per bi-monthly billing period". The notice continues to read as follows: "In February 2007, the City Council approved a series of 6.5 percent water rate increases." These increases were noticed last year by a "218" notice issued to all homeowners and tenants and contained a hard-to-see protest form. The City received so few protests that these increases were easily passed. The City Council even agreed to allow protests to be submitted on the day of the hearing and still, most citizens didn't attend or send someone to fill out the protest form at the hearing. We got these increases because we failed to take the time to use the process to say "no" to the then proposed increases. The reason I'm writing about last year's Prop 218 Notice & chance to protest is twofold: 1) All the work to inform the public on TV, radio, and via print media did not motivate the numbers of people needed to defeat the increases; resulting in the sewer credits from the settlement being offset by last year's rate increases; and 2) This comment should serve as a warning that there are other increases before the City Council where the people will again have the power to say "no".
If the City had allocated all of its earmarked resources for continued maintenance instead of using our money for underfunded pensions & whatever else it saw fit, there would never have been a dramatic infrastructure problem. I'm wondering where all of the previous increases over the years were allocated. It is hoped everyone will take time to learn whether or not the next rounds of increases are needed and if so, hold the City accountable to disclose other monies available to offset San Diego pilot projects and rate increases.
UCAN was selected by a judge to monitor the City water and sewer charges as a result of the sewer settlement in lieu of taking refund money away from ratepayers. Of course, there is now a big debate over the language of the bill insert and we will more than likely miss the first insert ordered by the judge, which stalls UCAN's ability to get the funds to hire the experts needed to serve as "watchdogs" over the water and sewer to protect San Diegans. See the specifics of this settlement in this section posted in 2006. If there's a way to create confusion & a lack of consensus, public officials and City, State & Federal staff will find it. San Diego is lucky to have a couple of very outspoken City personalities who continue to challenge, question and force answers that the "good ol' boys" don't like answering.
I'm moving -- how do I get my refund?
Hi,
I'm moving from a single family residence to a condo.
In the informational material sent by the City of San Diego,
I find nothing about a "Proof of Claim Form" or when I need
to submit it. I looked on their website and there is nothing
there either.
I was overcharged -- so how do I get my refund when I move.
~ Moving Away ~
Sewer Rate Refunds
weedwam
What if you croak before receiving refund?
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