City staff recommended Wednesday that the City Council adopt a 7.5 percent water rate increase for 2016 and approve a plan for future increases from 2017 to 2020.

Council members said they will continue discussions about improving billing procedures at the San Antonio Water System, while reaching out to families eligible for affordability programs.

SAWS CEO Robert Puente said the utility’s trustees view the increases projected for 2017 and beyond as the maximum amounts the utility will pursue to provide water and sewer service for 1.7 million people.

“They understand these are caps, and they want us to come under those caps,” Puente said.

The council is set to vote Nov. 19 on the rate increase, as well as on a plan to raise the overall water rate to 7.9 percent in 2017 and to increase the SAWS water supply fee from 2018 to 2020.

The increases would support the Vista Ridge pipeline, federally mandated sewer upgrades, brackish water desalination, and replacement of hundreds of miles of the city’s aging sewer and water lines.

The city’s chief financial officer, Ben Gorzell, recommended that the council approve the rate plan and an updated rate structure to take effect Jan. 1, expanding the number of residential billing rate blocks from four to eight.

He also recommended “additional assistance” to low-income customers whose monthly use exceeds 6,000 gallons; improvements in billing procedures; and continued efforts to prevent “water loss.” SAWS estimates that 16 percent of its water is lost through leaks, flushing of lines and other factors or is not registered by outdated water meters.

Some of the 42 positions being added by SAWS in 2016 will be focused on customer service, leak repair, sewer upgrades and technology upgrades. Gorzell noted the recent rash of high bills SAWS sent out, stirring complaints from customers at a time when rate increases are planned over several years.

The council has wrestled with the proposals, and delayed action by three weeks, as the matter also has become clouded with opposition to the Central Texas pipeline and delays in the final release of what was intended to be a comprehensive city water policy report.

Although the council unanimously approved a contract last year between SAWS and a private consortium to fund and build the Vista Ridge pipeline, to carry up to 16.3 billion gallons annually to San Antonio as early as 2020, Councilman Ron Nirenberg has asked pointed questions about it.

The project will initially force SAWS to raise rates to help finance the 142-mile pipeline from Burleson County and will provide some of the state’s most expensive water, at more than $2,000 per acre-foot, according to SAWS. Officials have said the project will secure a long-term supply for the city’s growth, with costs certain to fall by the time SAWS retains ownership of the pipeline in 2050.

The council asked Wednesday about the financial stability of the consortium, led by an affiliate of Abengoa, an international utility and energy conglomerate. The subsidiary, Abengoa Vista Ridge, is “shielded” from financial default by the parent company, SAWS Chief Financial Officer Doug Evanson told the council.

Wednesday’s work session was less contentious than one a week earlier, when Nirenberg told Puente he would keep asking questions so the public can fully understand the complex pipeline deal “in the context of what we’re trying to do in the next 30 to 60 years.”

Nirenberg has said the council should review the Texas A&M University water policy report before voting on a SAWS rate increase.

The study is scheduled for presentation to the council Nov. 12 and public comment later that day, and at a Nov. 18 council work session. A July draft version leaked to the San Antonio Express-News in September and later posted by Mayor Ivy Taylor called Vista Ridge a “high-risk” project, but one that could be needed to help the city avoid a future water deficit.

shuddleston

@express-news.net

More Information SAWS rates in future The average monthly residential bill for a customer using 7,092 gallons is expected to rise from $54.34 currently to $81.73 in 2020, to fund various projects, including water supply and delivery expansions, federally mandated sewer upgrades and replacement of aging water and sewer mains. The City Council is set to vote Nov. 19 on a rate increase for 2016 and a rate plan for 2017 to 2020. 2016: Average SAWS bill, including state fees, to rise 7.8 percent to $58.60 2017: Average SAWS bill, including state fees, to rise 7.5 percent to $62.67 2018: Water supply fee to rise 1.3 percent; average bill projected to run $66.67 2019: Water supply fee to rise 4.5 percent; average bill projected to run $72.23 2020: Water supply fee to rise 9.9 percent; average bill projected to run $81.73 Source: San Antonio Water System, city of San Antonio