Deputy Director Christophe Litsai told residents at a second public meeting that San Mateo County is proposing a five‑year water‑rate increase for Community Services Area (CSA) 11 to address long‑deferred revenue, cover operating costs and build a minimum reserve.

"Again, my name is Christophe Litsai. I'm the deputy director overseeing engineering and resource protection," Litsai said while presenting the proposal, which staff described as a 22% per‑year increase compounded annually over five years. The county said the increase would bring rates closer to the levels that would have resulted had adjustments tracked inflation over the last 13 years.

Staff presented year‑one examples: a typical CSA 11 customer using 10 units (one unit = 748 gallons) currently pays $54.90; with the proposed first‑year rates that bill would be $66.96, an increase of about $12 per month. Meter charges for a typical 5/8‑inch residential meter would go from $28 to $34.16 per month in the first year. The county plans to retain a four‑tier structure (0–11 units; 12–25; 26–40; 40+) designed to promote conservation.

County analysts said the increases are intended to cover ongoing operations and maintenance, repay an outstanding loan (about $60,000 plus accrued interest related to the 2011 outage), and fund a target reserve equal to 50% of annual operating costs plus 3% of the system replacement value (about $160,000). Projections shown at the meeting estimate a small starting fund balance (~$12,894), near‑term deficits in years one and two requiring an additional county loan (staff estimated roughly $35,000), break‑even in year three, and restored reserves and debt repayment by year five.

Litsai said the county will seek to limit costs where possible — for example, pursuing grant funding for a smart meter replacement program — but that regulatory requirements, additional testing and the small number of connections make CSA 11 more expensive to operate than larger systems. Staff noted that even with the proposed increases CSA 11 rates would remain lower than many larger neighboring systems on the comparison chart.

The county outlined the next steps for the rate‑setting process: staff will ask the Board of Supervisors on Jan. 13 to set a public hearing for Tuesday, March 24 at 9 a.m. at 500 County Center in Redwood City; Prop 218 mailed notices are planned around Jan. 19 (45 days before the hearing). Litsai explained protest rules under Proposition 218: each parcel within the CSA boundary is entitled to one written protest (owner or tenant); undeveloped parcels inside the boundary count toward the parcel total; protests must be written, received by the clerk before the close of the public hearing and cannot be withdrawn after the hearing. Litsai also referenced Government Code section cited by staff as authorizing tiered rates under Prop 218.

Public commenters asked how many accounts fall into each tier, how commercial usage is counted, and whether the proposed rates equitably distribute costs. Staff said most accounts are residential and that higher‑use commercial accounts would see larger bills because of meter size and consumption. Staff also addressed customer service and emergency contact procedures, noting that operator Bracewell handles 24/7 operational calls and that DPW provides billing support.

The meeting closed with staff inviting residents to review the posted materials and the department's online links and to submit questions or requests for information before the formal rate‑setting process begins.