May 19, 2008University Neighborhood Housing Program’s 25th Anniversary Affordable Housing Forum was on Thursday, April 10, 2008
at Fordham University’s Rose Hill Campus in the Bronx.Water and Sewer Rate Reform Summit
Can NYC achieve affordable water rates, promote
conservation, and control capital costs?Click Here to Download the Report (PDF)
Water Board approves 14.5% increase in water and announces a commitment from City Hall to examine alternative rate structures and the rental payment in time for next year’s rate hearings:
The New York City Water Board approved a 14.5% rate increase effective July 1, 2008. Comptroller William Thompson and Council Finance Chair Weprin and Council Environmental Chair Gennaro spoke against the increase. In an unusual move, the individual board members spoke individually about the thought process behind their decision to proceed with the increase.
Chairman Jim Tripp indicated that he had contemplated resignation and ultimately decided to stay on the board and vote for the increase after entering into a “joint commitment with the Mayor and DEP to examine alternative rate structures and a full and deep exploration of the board’s rental payment to the City.” He indicated that for the first time in the years he has discussed these issues with City Hall that there is an understanding of the issue around the rental payment and he credited the many individuals and groups that have spoken out on the issue with getting the attention of City Hall on the issue.
Tripp envisions a real discussion with City Hall that will result in looking at the allocation of costs of the water system, discussion with state regulators on the value and scheduling of certain mandated work items like the covering of the Hillview Reservoir which may add $1 billion to the capital cost of the system. Tripp said that nobody should be looking at DEP as a cash cow. He feels that he has a commitment from City Hall that will result in some kind of action in the next 6 months, re-directing money for next year, including the rental payment in excess of the debt service on old municipal debt.
Did we lose? Yes for now, but maybe not with a longer term view. The rate increase is approved and it’s the largest increase in 15 years. However, the Water Board has taken on a more active role with City Hall on the need for rate restructuring. They have sped up a process that as recently as a month ago was being talked about in terms of years and is now being talked about in terms of months. As always, the follow up is going to be the key.
We will convene a meeting (perhaps by conference call) to update everybody on next steps in a couple of weeks. We are continuing our research on other cities and monitoring of city plans on the Multifamily Conservation Plan and the toilet rebate program.
Traditionally, the work on water rates ended now and started up again in the new year. This year, the work will continue straight through the summer.
Thanks for your attention.
Older News :
Multifamily Conservation Program
The City Water Board’s new Multifamily Conservation Program was the focus of a City Council committee hearing on January 22nd. The Environmental Protection Committee hearing was scheduled following a front page New York Times article that called the program a “policy switch” that eased the City’s stance on water meters.
Under the program, owners of buildings with six or more apartments can opt to be billed at a fixed rate as long as they have low flow toilets in at least 70% of the apartments and they submit to water conservation audits. The rate under the new program will be approximately $424 per apartment.
City Council committee members questioned DEP Commissioner Miele about the program, its history and its financial effects for most of the hearing. The regulations implementing the program (which was approved by the Water Board last spring as part of the 2000-01 rate hearings) were approved at the last Water Board meeting of 2000. Council members also questioned why the City was not reactivating the Toilet Rebate Program that had operated several years ago to reimburse owners for installation of low flow toilets by licensed plumbers.
UNHP director Jim Buckley testified in support of the new program at the hearing. Contrary to the published reports of surprise about the program from some City and environmental leaders, he noted that this program has been developing over many years. The current transition program which has been in effect for at least 8 years was started as a way to protect buildings from exorbitant increases due to metered use. The new program recognizes the validity of the argument that has been raised over the past decade that buildings with larger apartments and larger families will be penalized with higher bills despite a commitment to conservation efforts.
Owners considering applying for the program should carefully evaluate whether this program is beneficial to them at this time. Buildings in the transition program already are paying less than the new program would charge and the transition programs will stay in effect until December 31, 2003. However, owners that are paying metered bills and are in the bill cap program— $520 for each apartment—should apply for the program.
Applications can be taken off the City website at www.nyc.gov/dep or through UNHP's office. For more information, call Jim Buckley or Jo Kletter at (718) 933-3101 or email mail@unhp.org.
