Milpitas overcharges 6395 Multifamily parcels because of not using calculated fees

 To determine how much to charge all the residential family residents the following formula is provided. This formula is the basis for the calculated fees. This is required in the notice that sent to the public on utility rate fees. The city did not provide this basis and is a violation of Article XIII D section 6 1.

The formula for determining sewer rates are as follows:

1. People per household (PPH) * gallons/day * 365 gallons/year * number of parcels = total gallons per year
2. Add the gallons of all parcel types to get total gallons of all parcel types.
3. Divide the gallons of a parcel type by the total of all parcels = percentage of cost.
4. Percentage of cost * total cost $7,369,096.00   = Cost of a parcel type.
5. The cost of a parcel type divided by the number of parcels = Yearly fee.

Examples
1:
Single family
3.34 PPH * 65 gallons/day * 365 days/year * 12264 single family parcels = 980,546,658 gallons/year
Multifamily
2.05 PPH * 60 gallons/day * 365 days/year * 6397 multifamily parcels  =    287,193,315 gallons/year
Mobile homes
1.9 PPH* 60 gallons/day * 365 days/year * 570 Mobile homes parcels  =      25,694,175 gallons/year

2:                                                                                Total of all parcels =  1,293,434,148 gallon/year

3:
Single family:  980,546,658 gallons/ total 1,293,434,148 gallons = 75.8% percent of total cost
Multifamily :    287,193,315 gallons/ total 1,293,434,148 gallons = 22.2% percent of total cost
Mobile homes:   25,694,175 gallons/ total 1,293,434,148 gallons = 1.98% percent of total cost

4:

Single family:    75.8% * $7,369,096.00 =  $5,5586,478.81 Cost to all single family parcels
Multifamily :     22.2% * $7,369,096.00 =    $1,636,229.50  Cost to all multifamily  parcels
Mobile homes:  1.98% * $7,369,096.00 =       $142,387.69  Cost to all mobile home parcels

5.
Single family:  $5,5586,478.81/ 12264 parcels = $455.52 yearly fee per parcel
Multifamily:      $1,636,229.50/   6397 parcels =  $255.78 yearly fee per parcel
Mobile homes:     $142,387.69/ 12264 parcels =  $249.80 yearly fee per parcel

Do not expect that the city of Milpitas will charge the calculated rate!

The following is the calculated fee compared to actual charge.
                             Calculated  charge      Actual charge     Comment
Single family:            $455.52                   $455.52            correct.
Multifamily:              $255.78                    $306.36           overcharge of over $50.00 per year.
Mobile homes:          $249.80                    $200.16           undercharge of over $49.00 per year

The result is that the city is overcharging for sewer services and is a violation of
 Article XIII D section 6 b
" (1) Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service."

The city council members take an oath to uphold the state Constitution but this is just a formality to pick up their pay checks at the end of the week and get themselves reelected.

This is what you get when the people of Milpitas do not know how their sewage fees are charged.
I have ask the city how the water fixed rate fee is charged and the city will not provide me the answer. I suspect that the water fixed fee charge that went up by 17% is a made up too.