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City Sewer Department Settlement Brings Long Overdue Refunds to Residents
UCAN News
In March of 2004, UCAN's executive director learned that the City of San Diego had been systematically overcharging residential customers (and undercharging large commercial customers) for sewer bills. When confronted, the city confessed then that it had applied the wrong rates, in violation of state law.
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.
Fox 6 News San Diego, Mon, 20 Nov 2006 9:49 PM PST
Waste Water Fee Settlement: The City of San Diego has reached a tentative settlement with residents over a lawsuit that accused the city of unfairly charging homeowners for sewer rates.
10 News San Diego, Mon, 20 Nov 2006 8:11 PM PST
Tentative Settlement Reached In City Wastewater Suit A tentative settlement deal is reached in a lawsuit alleging the city of San Diego unfairly charged homeowners sewer rates that should have been paid by industrial users.
News 8 San Diego, Mon, 20 Nov 2006 5:26 PM PST
City Reaches Settlement In Sewer Rate Lawsuit Mayor Jerry Sanders has announced a tentative settlement agreement between the city and a local consumer advocate over San Diego's wastewater rates.
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Was credit for the refund
Was credit for the refund reflected in our bills?
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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