Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: December 11, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: Proposition 218 Public Hearing and Adoption of Proposed Water and Wastewater Rate Structure
RECOMMENDATION
1) Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed water and wastewater rate structure; and 2) if the number of valid protest letters are below 50% plus one of the number of property owners or customers authorized to submit protest, adopt the Resolution amending the Master Fee Schedule for water and wastewater rates effective February 1, 2024.
BACKGROUND
On September 5, 2023, staff and the utility rate study consultant Clayton Tuckfield with Tuckfield and Associates (Tuckfield) presented the results of a Utility Rate Study and preliminary findings and recommendations to the Council. The study included a Revenue Requirements Analysis; Cost of Service Analysis; and Rate Design to fund operating and capital costs needed for the Water and Wastewater Enterprise Funds over a five-year period through 2028. The desired outcome of this study was to ensure that the rates are sufficient to cover costs associated with ongoing maintenance and operations of the water and wastewater utilities, as well as anticipated capital improvement costs. The rates must also support debt service obligations and maintain reserves equal to at least six months of typical maintenance and operations expenditures in accordance with industry standards. Monthly rates charged to customers on a bi-monthly basis are the primary source of revenue to operate the City’s water and wastewater systems and this revenue does not fund City services or costs outside of the Water and Wastewater Funds.
Overview of Utility Rate Study
The Utility Rate Study indicated that current rates do not fully cover operating costs of the City’s water and wastewater systems over this five-year period and do not provide adequate funding for capital projects needed to improve the water ($26.1 million) and wastewater ($8.2 million) systems.
The capital projects for the water system include Central Coast Blue (CCB) which is a regional recycled water sustainability project under planning and development for several years that would create a new, high quality, and reliable water supply for residents and businesses in Arroyo Grande, Pismo Beach, and Grover Beach. As part of this project, the City is working with partner agencies to create a high-quality water source to supplement local supplies and provide sufficient water supplies even in times of water shortage or drought. The future water rates covered in the Utility Rate Study must provide funding for the City’s share of costs for constructing and operating the Central Coast Blue project pursuant to the project Cost Sharing Agreement approved by the Council on February 15, 2022.
Staff Report: Proposition 218 Hearing and Adoption of Water and Wastewater Rate Structure Page 2 December 11, 2023
Other water system capital projects include reservoir maintenance, water meter replacement program, and improvements to the 16th Street booster station. These water Capital Improvement Project (CIP) expenditures totaled approximately $26.1 million over the study period and are proposed to be financed with the annual water revenue, State and Federal grants, capital reserves and a proposed new debt issue in FY 2023-24.
CIP expenditures for sewer utilities include sewer line upgrades, improvements to the South Oak Park lift station and citywide sewer lining projects which totaled approximately $8.2 million over the study period and are planned to be funded through the annual sewer rate revenue, debt proceeds from a new debt issue in FY 2023-24, and Wastewater Fund reserves. The City is seeking to begin this work in early 2024 so the sewer line upgrades will be completed prior to repair of affected streets as part of the Measure K-14 street rehabilitation program. The City contracts with South San Luis Obispo County Sanitation District to provide wastewater treatment services for the City’s wastewater. Treatment charges were not studied and are currently a direct pass-thru from the District as these costs are billed to ratepayers with revenue remitted by the City to the District.
If the proposed rate structure is adopted, an initial 19.7% water revenue increase would be effective on February 1, 2024, and subsequent 19.7%, 19.7%, 19.7%, and 4% rate increases would be scheduled to go into effect on January 1 of the following four years (the initial rate increase for the first year will vary for customers based on usage tier). The average bi-monthly bill for residential water customers using 15 units per billing period is projected to increase from $94 to $120 ($26 increase bi-monthly or $13 per month) in the first year. For wastewater customers, the projected increase is from $26 to $31 ($5 increase bi-monthly or $2.50 per month) in the first year. The combined total increase is from $120 to $151 ($31 increase bi-monthly or $15.50 per month). This total does not include the bi-monthly South San Luis Obispo County Sanitation District charge of $50.98 where there is no change in these rates as they were not included in this study.
Proposition 218 Protest Process
Council directed staff to return to Council on September 25, 2023, for approval to implement the Proposition 218 noticing process for holding a public hearing on the proposed water and wastewater rate increases as part of a five-year rate structure. Staff returned to the Council on September 25 with the final Utility Rate Study report and the Council approved the Proposition 218 noticing process for holding a public hearing on November 13, 2023, on the proposed water and wastewater rate increases. The public hearing notice was issued on September 27, 2023; however, notices are required for both account holders and property owners of record under Proposition 218 and staff determined that some property owners were inadvertently not included with the noticing process. Staff returned to Council on October 23, 2023, and recommended that Council approve a new Proposition 218 noticing process for water and wastewater utility customers and property owners that receive water and/or wastewater services in compliance with the 45-day notification requirement and set a new public hearing date of December 11, 2023. This notice is shown in Attachment 2. The City conducted a public informational meeting about the proposed rate structure and Central Coast Blue on November 8 and posted extensive information about the rate structure, Central Coast Blue, and related information on the City’s website at https://www.grover.org/604/New-Water-and-WastewaterRate-Study-2023.
Pursuant to Proposition 218, any owner or customer of record that is required to pay the subject fees of a parcel subject to the proposed rates may submit a written protest against the proposed rate revisions. Attachment 2 includes a copy of the notice which informed the registered property Staff Report: Proposition 218 Hearing and Adoption of Water and Wastewater Rate Structure Page 3 December 11, 2023
owners along with customers about the proposed rate increases and the December 11th public hearing along with how to submit a protest. A total of 7,165 notices were mailed to property owners and account holders for a total number of 4,942 water utility accounts. A written protest must contain the street address or Assessor’s Parcel Number (APN) for the parcel(s) with respect to which the protest is made. The protest must also be signed by the registered owner or customer who pays the fees. Protests are required to be mailed or hand-delivered to the City’s offices.
To be valid, a signed written protest must be received by the City Clerk or submitted during the public protest hearing and represent an address with current water and wastewater service. Only one protest per address can be accepted and no protest will be accepted or valid if submitted after the close of the public protest hearing. At the end of the public hearing, the City Clerk will tally and report the qualifying written protests and the Council will then certify whether the written protests opposing the increases meet the 50% plus 1 threshold required to constitute a majority protest. If a majority protest does not exist, the Council may consider and adopt the Resolution shown in Attachment 1 to amend the Master Fee Schedule reflecting the updated water and wastewater rate structure.
Central Coast Blue Recycled Water Project
As noted earlier, CCB is a regional recycled water project that will utilize treated wastewater which is currently discharged to the ocean to increase groundwater supplies and secure a sustainable, drought-resistant local water supply (please see https://www.centralcoastblue.com for more information). CCB is intended to be a critical component of the future drinking water supply portfolio for the local cities and will help protect against the threat of seawater intrusion into their groundwater supplies and future droughts. The project will include construction of a new Advanced Water Purification Facility in Grover Beach to treat wastewater from the Pismo Beach wastewater treatment plant with state-of-the-art technology to purify the water before injecting it into the groundwater basin. The project is a multi-city collaboration between the cities of Grover Beach, Pismo Beach, and Arroyo Grande who formed a Joint Powers Authority in 2022 for this project. The Council approved the JPA Agreement enabling the City’s participation in the Authority on September 26, 2022.
The City’s allocated share of the CCB project cost is 36% including operating costs, financing and reserves as identified in the project Cost Sharing Agreement. The City’s cost share is tied to the City’s estimated water supply needs over the next 20 years in the City’s Urban Water Management Plan to provide sufficient water supply to current and future residents and businesses to withstand future drought conditions. The Five Cities area experiences frequent drought conditions and one year ago the City was contemplating the enactment of water use reductions of up to 50% until extensive rainfall occurred last winter. The estimated cost of the CCB project including design, construction, implementation, and project contingency is $93 million.
The project is expected to inject approximately 900-1,000 acre-feet of water into the groundwater basin with additional acre-feet of water able to be pumped given the seawater intrusion barrier. A future Phase II of the project may be implemented in the future if the three agencies wish to expand the project and produce additional water supply.
State and Federal grants are expected to be used for 50% of the total cost of the project with the remaining cost anticipated to be funded with low-interest Water Infrastructure Finance and Innovation Act (WIFIA) loans through the U.S. Environmental Protection Agency totaling $47 million. If half of the City’s costs are covered by grant funding as expected, the City’s share of project funding based on the 36% cost share will be $16.7 million, which will be funded with the WIFIA loan to be repaid by water rates. However, the Council has the legislative ability to enact a lower rate than the adopted rate structure on an annual basis based on future costs for Central Staff Report: Proposition 218 Hearing and Adoption of Water and Wastewater Rate Structure Page 4 December 11, 2023
Coast Blue and the level of grant funding received. The water rate structure does not assume the most recent Bureau of Reclamation Title XVI grant funding opportunity for the project which would provide approximately $10 million in project funding in addition to the nearly $40 million in grant funding already received for the project. The CCB project team submitted this grant application on December 6 with an expected award date of mid-2024. Attachment 3 includes a letter from Representative Carbajal demonstrating a strong level of support for this project with similar letters coming from Senators Butler and Padilla. If this additional grant was awarded, the City would review project financial needs and work with the rate consultant to update the current rate study with the grant award information and potentially lower future rates.
Lastly, staff would recommend that the Council direct staff to return to the Council annually each fall to review funding needs and revenues for the Water and Wastewater Funds and consider possible rate decreases below the adopted rate structure. This would be a prudent step to take given the extent of the proposed five-year rate structure and to review potential changes in project expenditures and revenues along with other changes in Water and Wastewater Fund activities that may impact future rates.
Addressing the Impacts of Rate Increases
In 2019, the Council enacted a Utility Assistance Program (UAP) to provide credits to lower income residents who participate in the PG&E or SoCal Gas CARES programs which are responsible for verifying income eligibility. The City annually allocates approximately $50,000 from the General Fund for this program which is typically expended each year. Grover Beach is one of only a few cities in the county that offer such a program and provides the highest level of credits to customers. The credits increase when rates increase, and the Council previously provided direction to staff to identify an increased amount of funding for this program as part of the midyear budget review in February 2024.
In recognition of concerns about the impact of the proposed rate increases, staff recommends the Council consider expanding the UAP to provide a credit to cover the water rate increases for all Tier 1 water users in the program through December 31, 2024, in addition to the current credit for fixed charges for water and wastewater costs. This additional Tier 1 credit would cost approximately $7,800 for each FY 2023-24 and FY 2024-25 for a total of $15,600 and this credit would expire after December 31, 2024. Currently there are 218 account holders enrolled in the program and implementing this recommended expansion would increase the General Fund contribution by $24,000 from $51,000 budgeted to approximately $75,000 in FY 2023-24. and will increase by an additional $30,700 from $52,300 budgeted to approximately $83,000 in FY 2024-
25. This number would increase if more customers enrolled in the program, so staff would recommend reviewing this cost in the future to determine if enrollment has changed and if additional budget adjustments are needed. Staff will also continue to work with individual customers on payment plans for utility bill payments if needed along with utilizing UAP funding from the General Fund budget.
FISCAL IMPACT
The recommended rate structure would result in additional Water Fund revenue of approximately $265,000 in FY 2023-24 and $1,149,000 in FY 2024-25 and additional Wastewater Fund revenue of approximately $62,000 in FY 2023-24 and $278,000 in FY 2024-25. Expansion of the Utility Assistance Program to provide a credit to cover water rate increases for Tier 1 water users in the UAP through December 31, 2024 would require an increased General Fund contribution of $24,000 in FY 2023-24 and an additional $30,700 in FY 2024-25.
Staff Report: Proposition 218 Hearing and Adoption of Water and Wastewater Rate Structure Page 5 December 11, 2023
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed water and wastewater rate structure; and if the number of valid protest letters are below 50% plus one of the number of property owners or customers authorized to submit protest, adopt the Resolution amending the Master Fee Schedule for water and wastewater rates effective February 1, 2024.; or
2. Do not adopt the Resolution amending the Master Fee Schedule for water and wastewater rates; or
3. Provide alternate direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A Proposition 218 Hearing Notice was mailed on October 25, 2023, to all utility customers and registered property owners that receive water and/or wastewater services. Information regarding the proposed rates and a link to the online copy of the Utility Rate Study, as well as other related information, was posted on the City website. A Public Hearing Notice was also published in New Times on November 30, 2023.
Attachments
1. Resolution amending the Master Fee Schedule
2. Proposition 218 public notice
3. Title XVI grant support letter from Representative Carbajal RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, AMENDING THE MASTER FEE SCHEDULE FOR WATER AND
WASTEWATER RATES
WHEREAS, the City Council of the City of Grover Beach has created a Master Fee Schedule by adopting Resolution No. 23-XX; and
WHEREAS, notice of the Public Hearing to consider proposed adjustments to the Master Fee Schedule for Water and Wastewater Rates was mailed at least 45 days prior to the scheduled Public Hearing as required by state law (Cal. Const. art. XIIID, §6); and WHEREAS, on December 11, 2023, the City Council conducted a Public Hearing, considered testimony, and at the conclusion of the protest hearing determined that the number of valid written protests received was less than 50% plus one of the total number of water and wastewater customers or property owners subject to the fee in the City and approved the recommendations in the Utility Rate Study regarding adjustments to the Water and Wastewater Rates.
NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, DOES DELARE, DETERMINE, AND ORDER AS FOLLOWS:
THAT the Master Fee Schedule be amended as set forth in Exhibit “A” attached to this Resolution; and
THAT the fees listed in Exhibit “A” of this Resolution shall become effective as on the various dates as listed.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 11TH day of December 2023.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 1
**DRAFT**
February 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 January 1, 2028 Water Rates (Monthly)
Residential Base Charges
5/8" - Meter $ 17.91 $ 21.44 $ 25.67 $ 30.73 $ 31.96
3/4" - Meter $ 17.91 $ 21.44 $ 25.67 $ 30.73 $ 31.96
1.0" - Meter $ 17.91 $ 21.44 $ 25.67 $ 30.73 $ 31.96
1.5" - Meter $ 59.70 $ 71.47 $ 85.55 $ 102.41 $ 106.51
2.0" - Meter $ 95.52 $ 114.34 $ 136.87 $ 163.84 $ 170.40
3.0" - Meter $ 191.04 $ 228.68 $ 273.73 $ 327.66 $ 340.77
4.0" - Meter $ 298.50 $ 357.31 $ 427.71 $ 511.97 $ 532.45 Residential Volume, in addition to Base Charge (per 100 Cubic Feet):
0-1,000 CF $ 4.20 $ 5.03 $ 6.03 $ 7.22 $ 7.51
1,000 to 2,200 CF $ 8.51 $ 10.19 $ 12.20 $ 14.61 $ 15.20 >2,200 CF $ 11.91 $ 14.26 $ 17.07 $ 20.44 $ 21.26
Non-Residential Base Charges
5/8" - Meter $ 17.91 $ 21.44 $ 25.67 $ 30.73 $ 31.96
3/4" - Meter $ 26.87 $ 32.17 $ 38.51 $ 46.10 $ 47.95
1.0" - Meter $ 29.85 $ 35.74 $ 42.79 $ 51.22 $ 53.27
1.5" - Meter $ 59.70 $ 71.47 $ 85.55 $ 102.41 $ 106.51
2.0" - Meter $ 95.52 $ 114.34 $ 136.87 $ 163.84 $ 170.40
3.0" - Meter $ 191.04 $ 228.68 $ 273.73 $ 327.66 $ 340.77
4.0" - Meter $ 298.50 $ 357.31 $ 427.71 $ 511.97 $ 532.45 Landscape Volume, in addition to Base Charge (per 100 Cubic Feet):
All Usage $ 9.11 $ 10.91 $ 13.06 $ 15.64 $ 16.27
All Other Volume, in addition to Base Charge (per 100 Cubic Feet):
All Usage $ 7.90 $ 9.46 $ 11.33 $ 13.57 $ 14.12
CITY OF GROVER BEACH
MASTER FEE SCHEDULE
ADMINISTRATIVE SERVICES DEPARTMENT
Description
Rates Effective
Revised 12/7/2023
Exhibit A
February 1, 2024 January 1, 2025 January 1, 2026 January 1, 2027 January 1, 2028 Wastewater Rates (Monthly)
Boarding house (per unit) $ 18.57 $ 22.19 $ 26.52 $ 31.69 $ 32.96 Plus per bedroom charge $ 11.95 $ 14.28 $ 17.06 $ 20.39 $ 21.21 Car washes & Laundromats minimum charge $ 7.40 $ 8.84 $ 10.56 $ 12.62 $ 13.12 Church $ 18.00 $ 21.51 $ 25.70 $ 30.71 $ 31.94
Plus per parsonage or dwelling unit $ 15.32 $ 18.31 $ 21.88 $ 26.15 $ 27.20 Commercial establishment (Public Place) (Up to 5 Fixtures) $ 17.97 $ 21.47 $ 25.66 $ 30.66 $ 31.89 Each additional fixture $ 4.92 $ 5.88 $ 7.03 $ 8.40 $ 8.74 Factories, industrial plants, with 20 or less employees $ 12.09 $ 14.45 $ 17.27 $ 20.64 $ 21.47 Each additional employee over 20 $ 1.39 $ 1.66 $ 1.98 $ 2.37 $ 2.46 Hotel, motel, auto court or lodge (per unit) $ 18.46 $ 22.06 $ 26.36 $ 31.50 $ 32.76 Mobile home (per space) $ 15.32 $ 18.31 $ 21.88 $ 26.15 $ 27.20 Restaurants minimum charge $ 2.56 $ 3.06 $ 3.66 $ 4.37 $ 4.54 Schools minimum annual charge per ADA and employees $ 3.96 $ 4.73 $ 5.65 $ 6.75 $ 7.02 Schools with Cafeterias additional
Per ADA and employees $ 1.65 $ 1.97 $ 2.35 $ 2.81 $ 2.92 Single-Family dwelling unit $ 15.32 $ 18.31 $ 21.88 $ 26.15 $ 27.20 Theater, clubhouse or place of amusement $ 17.97 $ 21.47 $ 25.66 $ 30.66 $ 31.89 Travel trailer and recreation vehicle space $ 7.89 $ 9.43 $ 11.27 $ 13.47 $ 14.01 Multi-Family, Two or more dwellings (per unit) $ 15.32 $ 18.31 $ 21.88 $ 26.15 $ 27.20 Plus Per Each coin-operated washer $ 3.35 $ 4.00 $ 4.78 $ 5.71 $ 5.94 $ 0.48 $ 0.57 $ 0.68 $ 0.81 $ 0.84
Excess Discharge per 100 cubic feet (3,000 Cubic Feet
per GBMC 7182)
CITY OF GROVER BEACH
MASTER FEE SCHEDULE
ADMINISTRATIVE SERVICES DEPARTMENT
Rates Effective
Description
Revised 12/7/2023
1 NOTICE TO PROPERTY OWNERS OF PUBLIC HEARING
REGARDING PROPOSED WATER AND WASTEWATER RATES
Hearing Date & Time: December 11, 2023 6:00 PM
Hearing LocaƟon: City Hall
154 South 8th Street, Grover Beach, CA 93433
Why are you receiving this noƟce?
The City of Grover Beach (City) is mailing this noƟce to you because you are a water and/or wastewater customer or are the owner of record of a property that receives water or wastewater service. This noƟce describes proposed changes to the water and wastewater rates and gives informaƟon about a public hearing to be held on December 11, 2023 at the City Hall, 154 South 8th Street, Grover Beach, CA, 93433 regarding these proposed changes.
What do water and wastewater rates fund?
The City provides water and wastewater service to residenƟal, landscape, and commercial customers. Monthly rates charged to system users (customers) on a bi-monthly basis are the primary source of revenue to operate the water and wastewater systems and are used solely for this purpose. Rate revenue provides funding for annual operaƟng and maintenance costs, capital projects to improve water and wastewater infrastructure, administraƟon, and maintaining adequate fund reserves and planning for conƟngencies.
In order to maintain a high level of water quality and ensure adequate supply, several water system capital projects are proposed to be supported by your water payments that include the: Central Coast Blue Water Sustainability Project; Reservoir Maintenance; Automated Meter Reading; Water Meter Replacements; Booster StaƟon upgrades, and other projects. Capital projects that are supported by your wastewater payments include the: sewer upgrades for both future and exisƟng flows, Fronts Street LiŌ StaƟon Upgrades, South Oak Park LiŌ StaƟon Upgrades; System Repairs; and Citywide Sewer Lining projects.
New Drought-Resistant Water Supply: Central Coast Blue Water Sustainability Project Central Coast Blue is a regional water sustainability project that will create a new, high-quality, and drought-resistant water supply for Grover Bech, Pismo Beach, and Arroyo Grande. These communiƟes are designing and building a new advanced water purificaƟon facility that will supplement local groundwater supplies. The Advanced Treatment Facility will treat water from the City of Pismo Beach's Wastewater Treatment Plant to produce purified water that will be injected into the groundwater basin to supplement the natural groundwater supply and to create a seawater intrusion barrier. The project allows these communiƟes to have sufficient water supplies even in Ɵmes of drought.
Central Coast Blue will enhance local supply reliability and help protect the communiƟes from droughts by diversifying supply sources and avoiding excessive reliance on any one source of water. This project also reduces the amount of treatment plant effluent to the ocean by 74%. For more informaƟon, visit www.centralcoastblue.com.
Maintaining Sustainable Water and Wastewater Systems
Water and wastewater rates support the overall financial plans for water and wastewater. These financial plans account for increasing operaƟng expenses, including support for rising personnel costs, electricity, chemicals, and purchased water (Lopez Lake water). The financial plans also include ensuring adequate reserves and debt service coverage raƟos.
Why are rate increases needed?
Current rates do not provide adequate funding for long-term operaƟon and maintenance expenses and capital projects. The City engaged a consultant to perform studies of the City’s water and wastewater funds, and to recommend user rates designed to meet the City’s financial obligaƟons, including operaƟng and debt service costs, funds for needed capital projects, and maintenance of cash reserves. The rate structures developed in the studies comply with federal, state, and City laws and guidelines. They are consistent with good industry pracƟces and are equitable among the City’s customer classes. At the City Council MeeƟng on October 23, 2023, the report on these studies was presented which included recommended uƟlity rates through January of 2028. The City Council reviewed the report and approved the proposed rate schedule to be considered at a public hearing on December 11, 2023.
Attachment 2
2 The proposed rates are based on a comprehensive uƟlity rate study and financial plan to ensure reliable and funcƟonal water and wastewater systems. The City will annually review revenues and expenditures for the water and wastewater funds to ensure that sufficient and appropriate revenues are collected to effecƟvely provide for the short and long-term service needs of the community.
The rate study report providing the rate development methodology is available at City Hall and on the City’s website at www.groverbeach.org.
New rates
In order to provide necessary funding to operate and carry out long-term improvements of the water and wastewater systems, the City is proposing to implement new rates as a series of annual revenue adjustments over the next five years. The following tables summarize the proposed water and wastewater rates.
Water Current and Proposed Monthly Fixed Charges
Water Current and Proposed Variable (ConsumpƟon) Rates
Current Proposed
Classification Rate Feb 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
1" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Non-Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $24.71 $26.87 $32.17 $38.51 $46.10 $47.95
1" $27.52 $29.85 $35.74 $42.79 $51.22 $53.27
1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Current Proposed
Classification Rate Feb 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Variable Charge ($ per HCF)
Residential
Tier 1 - 0 to 10 units $2.99 $4.20 $5.03 $6.03 $7.22 $7.51 Tier 2 - 11 to 22 units $6.17 $8.51 $10.19 $12.20 $14.61 $15.20 Tier 3 - Over 22 units $8.90 $11.91 $14.26 $17.07 $20.44 $21.26 Landscape $6.72 $9.11 $10.91 $13.06 $15.64 $16.27
All Other $6.47 $7.90 $9.46 $11.33 $13.57 $14.12
3 Wastewater Current and Proposed Monthly Charges
Impact on your bill
For the proposed rates effecƟve February 1, 2024, a typical single-family home that uses 15 Units* of water every two months, the water porƟon of your bill would increase from $93.69 per billing cycle (every two months) currently to $120.37 per billing cycle or $13.34 more per month. The wastewater porƟon of the bill would increase from $25.64 to $30.64 per billing cycle or $2.50 per month.
The accompanying graph provides a summary of combined bills, exisƟng and proposed, for water and wastewater under three usage scenarios. The comparison includes wastewater charges from South San Luis Obispo County SanitaƟon District as well as a 1.0% UƟlity Tax applied to the water bill. The dark blue boxes represent the total increases by usage level. The City’s total uƟlity rates are currently near or at the lowest rates in the county compared with other ciƟes and would remain near the lowest countywide aŌer the first-rate increase.
Current Proposed
Classification Charge Feb 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge ($ per month)
Boarding House (per unit) $15.54 $18.57 $22.19 $26.52 $31.69 $32.96 Per Bedroom Charge 10.00 11.95 14.28 17.06 20.39 21.21
Car Washes & Laundromats (min charge) 6.19 7.40 8.84 10.56 12.62 13.12 Per 100 cubic feet above minimum 0.00 0.00 0.00 0.00 0.00 0.00 Church 15.06 18.00 21.51 25.70 30.71 31.94
Per parsonage or dwelling unit 12.82 15.32 18.31 21.88 26.15 27.20 Commercial Establishment (Public place up to 5 Fixtures) 15.04 17.97 21.47 25.66 30.66 31.89 Each additional fixture 4.12 4.92 5.88 7.03 8.40 8.74
Factories, Industrial Plants (20 employees or less) 10.12 12.09 14.45 17.27 20.64 21.47 Each additional employee over 20 1.16 1.39 1.66 1.98 2.37 2.46 Hotel, Motel Auto Court or Lodge (per unit) 15.45 18.46 22.06 26.36 31.50 32.76 Mobile Home (per space) 12.82 15.32 18.31 21.88 26.15 27.20 Restaurants (min charge) 2.14 2.56 3.06 3.66 4.37 4.54
Per 100 cubic feet against minimum 0.00 0.00 0.00 0.00 0.00 0.00 Schools (min annual charge per ADA and employee) 3.31 3.96 4.73 5.65 6.75 7.02 Schools with Cafeterias (additional) Per ADA and employees 1.38 1.65 1.97 2.35 2.81 2.92 Single-Family Dwelling Unit 12.82 15.32 18.31 21.88 26.15 27.20 Theater, Clubhouse or Place of Amusement 15.04 17.97 21.47 25.66 30.66 31.89 Travel Trailer and Recreation Vehicle Space 6.60 7.89 9.43 11.27 13.47 14.01 Multi-family, Two or More Dwellings (per unit) 12.82 15.32 18.31 21.88 26.15 27.20 Per each coin-operated washer 2.80 3.35 4.00 4.78 5.71 5.94 Excess Discharge per 100 cubic feet $0.40 $0.48 $0.57 $0.68 $0.81 $0.84 $131.01 $147.47
$171.23
$203.17
$286.76
$359.57
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Current 7 HCF Proposed 7 HCF Current 15 HCF Proposed 15 HCF Current 30 HCF Proposed 30 HCF $16.46
$31.94
$72.81
4 Example bill calculaƟons using proposed February 1, 2024 rates at 15 HCF (Units):
Water: ..................... $17.91 Monthly ¾” Meter Base Charge X 2 Months + $4.20/HCF X 10 HCF +$8.51/HCF X 5 HCF = $120.37 City Wastewater: ..................................................... $15.32 per Month per Dwelling Unit X 2 Months X 1 Dwelling Unit = $30.64 South San Luis Obispo County Sanitation District: ........................................................... $25.48 per Month X 2 Months = $50.96
1.0% Utility Tax: ....................................................................................................................................................................... $1.20 Total:
$203.17
How do you file a protest or parƟcipate in the public hearing? The City Council will consider the new rate structure and proposed revenue increase at a public hearing on Monday, December 11, 2023 at 6:00 p.m. at City Hall, 154 South 8th Street, Grover Beach, CA, 93433. You are invited to present oral or wriƩen tesƟmony at the public hearing.
Any registered property owner or customer of record of a parcel subject to the proposed rates may submit a wriƩen protest against the proposed rate revisions. If wriƩen protests are filed with respect to a majority of the affected property parcels, the proposed rate revisions will not be adopted. There will only be one protest allowed per parcel of property.
A wriƩen protest must contain the street address or Assessor's Parcel Number (APN) for the parcel(s) with respect to which the protest is made. The protest must also be signed by the registered property owner or customer. Protests may be mailed or hand delivered to the City’s offices at 154 South 8th Street, Grover Beach, CA, 93433. Protests may also be delivered to the City Clerk at the public hearing.
To be valid, a signed wriƩen protest must be received by the City Clerk at or before the Ɵme of the protest hearing.
The City previously sent a similar noƟce of a public hearing concerning these rates on or around September 27, 2023. Due to a distribuƟon uncertainty, it was necessary to resubmit this noƟce to the public with a revised hearing date. If you received the prior noƟce please disregard it as this noƟce will be the perƟnent noƟce for compliance with submiƫng a protest. You will also be required to submit a new protest even if you previously submiƩed one pursuant to the September 27, 2023 noƟce. *1 Unit = 1 HCF, 1 HCF = 748 Gallons
1 AVISO A LOS PROPIETARIOS DE LA AUDIENCIA PÚBLICA CON RESPECTO A
LAS TARIFAS PROPUESTAS DE AGUA Y AGUAS RESIDUALES
Fecha y hora de la audiencia pública: 11 de diciembre de 2023 a las 18:00 Ubicación de audiencia pública: Ayuntamiento de Grover Beach 154 South 8th Street, Grover Beach, CA 93433
¿Por qué recibe este aviso?
La Ciudad de Grover Beach (Ciudad) le envía este aviso por correo porque usted es un cliente de agua y / o aguas residuales o es el propietario registrado de una propiedad que recibe servicio de agua o aguas residuales. Este aviso describe los cambios propuestos a las tarifas de agua y aguas residuales y brinda información sobre una audiencia pública que se llevará a cabo el 11 de diciembre de 2023 en el ayuntamiento, 154 South 8th Street, Grover Beach, CA, 93433 con respecto a estos cambios propuestos. ¿Qué financian las tarifas de agua y aguas residuales?
La Ciudad proporciona servicio de agua y aguas residuales a clientes residenciales y comerciales. Las tarifas mensuales que se cobran a los usuarios del sistema (clientes) cada dos meses son la principal fuente de ingresos para operar los sistemas de agua y aguas residuales y se utilizan únicamente para este propósito. Los ingresos de la tasa proporcionan fondos para los costos anuales de operación y mantenimiento, proyectos de capital para mejorar la infraestructura de agua y aguas residuales, administración y mantenimiento de reservas de fondos adecuadas y planificación para conƟngencias.
Con el fin de mantener un alto nivel de calidad del agua y garantizar un suministro adecuado, se proponen varios proyectos de capital del sistema de agua para ser apoyados por sus pagos de agua que incluyen: proyecto de Sostenibilidad del Central Coast Blue; mantenimiento de embalse; lectura automatizada de medidores; reemplazos de medidores de agua; actualizaciones de la estacione de bombeo y otros proyectos. Los proyectos de capital que están respaldados por sus pagos de aguas residuales incluyen: mejoras de alcantarillado para flujos futuros y existentes, mejoras de la estación de bombeo de Front Street, mejoras de la estación de bombeo de South Oak Park Boulevard; reparaciones del sistema; y proyectos de revestimiento de alcantarillado en toda la ciudad.
Nuevo suministro de agua resistente a la sequía: Proyecto de Sostenibilidad Central Coast Blue Central Coast Blue es un proyecto regional de sostenibilidad del agua que creará un nuevo suministro de agua de alta calidad y resistente a la sequía para Grover Beach, Pismo Beach y Arroyo Grande. Estas comunidades están diseñando y construyendo una nueva planta avanzada de purificación de agua que complementará los suministros locales de agua subterránea. La Planta de Tratamiento Avanzado tratará el agua de la Planta de Tratamiento de Aguas Residuales de la Ciudad de Pismo Beach para producir agua purificada que se inyectará en el acuífero de agua subterránea para complementar el suministro natural de agua subterránea y crear una barrera de intrusión contra el agua salada. El proyecto permite que estas comunidades tengan suficientes suministros de agua incluso en tiempos de sequía.
Central Coast Blue mejorará la confiabilidad del suministro local y ayudará a proteger a las comunidades de las sequías al diversificar las fuentes de suministro y evitar la dependencia excesiva de cualquier fuente de agua. Este proyecto también reduce la cantidad de efluentes de la planta de tratamiento al océano en un 74%. Para obtener más información, visite www.centralcoastblue.com.
Mantenimiento de sistemas sostenibles de agua y aguas residuales Las tarifas de agua y aguas residuales apoyan los planes financieros generales para el agua y las aguas residuales. Estos planes financieros representan el aumento de los gastos operativos, incluido el apoyo al aumento de los costos de personal, electricidad, productos químicos y agua comprada (agua del lago López). Los planes financieros también incluyen asegurar reservas adecuadas y coeficientes de cobertura del servicio de la deuda.
¿Por qué se necesitan aumentos de tarifas?
Las tarifas actuales no proporcionan financiación adecuada para gastos de operación y mantenimiento a largo plazo y proyectos de capital. La Ciudad contrató a una empresa para realizar estudios de los fondos de agua y aguas residuales de la Ciudad, y para recomendar tarifas de usuario diseñadas para cumplir con las obligaciones financieras de la Ciudad, incluyendo costos operativos y de servicio de la deuda, fondos para proyectos de capital necesarios y mantenimiento de reservas de efectivo. Las estructuras de tarifas 2 desarrolladas en los estudios cumplen con las leyes y pautas federales, estatales y municipales. Son consistentes con las buenas prácticas de la industria y son equitativos entre las clases de clientes de la Ciudad. En la reunión del Concejo Municipal del 23 de octubre de 2023, se presentó el informe sobre estos estudios que incluía las tarifas de servicios públicos recomendadas hasta enero de 2028. El Concejo Municipal revisó el informe y aprobó el programa de tarifas propuesto para ser considerado en una audiencia pública el 11 de diciembre de 2023.
Las tarifas propuestas se basan en un estudio exhaustivo de tarifas de servicios públicos y un plan financiero para garantizar sistemas de agua y aguas residuales confiables y funcionales. La Ciudad revisará anualmente los ingresos y gastos de los fondos de agua y aguas residuales para asegurar que se recauden ingresos suficientes y apropiados para satisfacer eficazmente las necesidades de servicio a corto y largo plazo de la comunidad. El informe del estudio de tarifas que proporciona la metodología de desarrollo de tarifas está disponible en la Municipalidad y en el sitio web de la Ciudad en www.groverbeach.org.
Nuevas tarifas
Con el fin de proporcionar los fondos necesarios para operar y llevar a cabo mejoras a largo plazo de los sistemas de agua y aguas residuales, la Ciudad propone implementar nuevas tarifas a base de una serie de ajustes anuales de ingresos durante los próximos cinco años. Las siguientes tablas resumen las tarifas propuestas de agua y aguas residuales.
Actual de agua y cargos fijos mensuales propuestos
Actual
Tarifa
1 de febrero
de 2024
2 de enero
de 2025
3 de enero
de 2026
4 de enero
de 2027
5 de enero
de 2028
El tamaño de
un medidor
residencial
Cargo fijo ($ por mes)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
1" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
El tamaño de un medidor no
residencial
Cargo fijo ($ por mes)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $24.71 $26.87 $32.17 $38.51 $46.10 $47.95
1" $27.52 $29.85 $35.74 $42.79 $51.22 $53.27
1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Propuesto
3 Actual de agua y tarifas variables (consumo) propuestas Actual de aguas residuales y cargos mensuales propuestos Impacto en su factura
Para las tarifas propuestas a partir del 1 de febrero de 2024, una casa unifamiliar típica que usa 15 unidades* de agua cada dos meses, la porción de agua de su factura aumentaría de $ 93.69 por ciclo de facturación (cada dos meses) actualmente a $ 120.37 por ciclo de facturación o $ 13.34 más por mes. La porción de aguas residuales de la factura aumentaría de $ 25.64 a $ 30.64 por ciclo de facturación o $ 2.50 por mes. El gráfico adjunto proporciona un resumen de las facturas combinadas, existentes y propuestas, para el agua y las aguas residuales en tres escenarios de uso. La comparación incluye los cargos por aguas residuales del Distrito de Saneamiento del Sur del Condado de San Luis Obispo, así como un impuesto de servicios públicos del 1.0% aplicado a la factura del agua. Los cuadros azul oscuro representan los aumentos totales por nivel de uso. Las tarifas totales de servicios públicos de la Ciudad están actualmente cerca o en las tarifas más bajas en el condado en comparación con otras ciudades y permanecerían cerca de las tasas más bajas en todo el condado después del aumento de primera clase.
Actual Propuesto
Clasificación Tarifa
1 de febrero
de 2024
2 de enero
de 2025
3 de enero
de 2026
4 de enero
de 2027
5 de enero
de 2028
Cargo variable ($ por HCF)
Residential
Nivel 1 - 0 a 10 unidades $2.99 $4.20 $5.03 $6.03 $7.22 $7.51 Nivel 2 - 11 a 22 unidades $6.17 $8.51 $10.19 $12.20 $14.61 $15.20 Nivel 3 - más de 22 unidades $8.90 $11.91 $14.26 $17.07 $20.44 $21.26 Paisaje $6.72 $9.11 $10.91 $13.06 $15.64 $16.27
Todos los demás $6.47 $7.90 $9.46 $11.33 $13.57 $14.12
Actual Propuesto
Clasificación Cargo
1 de febrero
de 2024
2 de enero
de 2025
3 de enero
de 2026
4 de enero
de 2027
5 de enero
de 2028
Cargo fijo ($ por mes)
Instalación de embarque (por unidad) $15.54 $18.57 $22.19 $26.52 $31.69 $32.96 Cargo por habitación 10.00 11.95 14.28 17.06 20.39 21.21 Lavaderos de autos y lavanderías (cargo mínimo) 6.19 7.40 8.84 10.56 12.62 13.12 Por 100 pies cúbicos por encima del mínimo 0.00 0.00 0.00 0.00 0.00 0.00 Iglesia 15.06 18.00 21.51 25.70 30.71 31.94
Por casa de iglesia o unidad de vivienda 12.82 15.32 18.31 21.88 26.15 27.20 Establecimiento Comercial (Lugar público hasta 5 Accesorios) 15.04 17.97 21.47 25.66 30.66 31.89 Cada accesorio adicional 4.12 4.92 5.88 7.03 8.40 8.74
Fábricas, Plantas Industriales (20 empleados o menos) 10.12 12.09 14.45 17.27 20.64 21.47 Cada empleado adicional mayor de 20 años 1.16 1.39 1.66 1.98 2.37 2.46 Hotel, Motel Auto Court o Lodge (por unidad) 15.45 18.46 22.06 26.36 31.50 32.76 Casa móvil (por espacio) 12.82 15.32 18.31 21.88 26.15 27.20 Restaurantes (cargo mínimo) 2.14 2.56 3.06 3.66 4.37 4.54 Por 100 pies cúbicos contra mínimo 0.00 0.00 0.00 0.00 0.00 0.00 Escuelas (cargo anual mínimo por ADA y empleado) 3.31 3.96 4.73 5.65 6.75 7.02 Escuelas con cafeterías (adicionales) Por ADA y empleados 1.38 1.65 1.97 2.35 2.81 2.92 Unidad de vivienda unifamiliar 12.82 15.32 18.31 21.88 26.15 27.20 Teatro, Casa Club o Lugar de Diversión 15.04 17.97 21.47 25.66 30.66 31.89 Espacio para remolques y vehículos recreativos 6.60 7.89 9.43 11.27 13.47 14.01 Multifamiliar, dos o más viviendas (por unidad) 12.82 15.32 18.31 21.88 26.15 27.20 Por cada lavadora que funciona con monedas 2.80 3.35 4.00 4.78 5.71 5.94 Exceso de descarga por 100 pies cúbicos $0.40 $0.48 $0.57 $0.68 $0.81 $0.84 4 Ejemplo de cálculos de facturas utilizando las tarifas propuestas del 1 de febrero de 2024 a 15 HCF (unidades):
Agua: $17.91 Mensual ¾” Cargo base para medidores X 2 meses + $4.20/HCF X 10 HCF +$8.51/HCF X 5 HCF = $120.37 Aguas residuales de la ciudad: $15.32 por mes por unidad de vivienda X 2 meses X 1 unidad de vivienda = $30.64 Distrito de Saneamiento del Sur del Condado de San Luis Obispo: ......................................................... $25.48 por mes X dos meses = $50.96 Impuesto de servicios públicos del 1.0%: .................................................................................................................................................... $1.20 Total: $203.17
¿Cómo presentar una protesta o participar en la audiencia pública? El Concejo Municipal considerará la nueva estructura de tarifas y el aumento de ingresos propuesto en una audiencia pública el lunes 11 de diciembre de 2023 a las 6:00 p.m. en la Municipalidad, 154 South 8th Street, Grover Beach, CA, 93433. Se le invita a presentar testimonio oral o escrito en la audiencia pública.
Cualquier propietario registrado o cliente de agua y / o aguas residuales impactado por las tarifas propuestas puede presentar una protesta por escrito contra los aumentos de tarifas propuestos. Si se presentan protestas por escrito con respecto a la mayoría de las parcelas de propiedad afectadas, no se adoptarán las revisiones de tarifas propuestas. Solo se permitirá una protesta por parcela de propiedad.
Una protesta por escrito debe contener la dirección postal o el número de parcela del asesor (APN) para la(s) parcela(s) con respecto a la cual se realiza la protesta. La protesta también debe ser firmada por el propietario registrado o cliente. Las protestas pueden enviarse por correo o entregarse personalmente en el ayuntamiento en 154 South 8th Street, Grover Beach, CA, 93433. Las protestas también pueden ser entregadas al Secretario de la Ciudad en la audiencia pública. Para ser válida, una protesta escrita firmada debe ser recibida por el Secretario de la Ciudad en o antes del momento de la audiencia de protesta.
La Ciudad envió previamente un aviso similar de una audiencia pública sobre estas tarifas el 27 de septiembre de 2023 o alrededor de esa fecha. Debido a la incertidumbre de la distribución, fue necesario volver a presentar este aviso al público con una fecha de audiencia ajustada. Si recibió la notificación previa, no la tome en cuenta, ya que esta notificación será la notificación pertinente para el cumplimiento de la presentación de una protesta. También se le pedirá que presente una nueva protesta, incluso si anteriormente presentó una de conformidad con el aviso enviado el 27 de septiembre de 2023. *1 Unidad = 1 HCF, 1 HCF = 748 galones
November 29, 2023
Grayford Payne
Deputy Commissioner
Policy, Administration and Budget
Bureau of Reclamation
1849 C Street NW
Washington DC 20240-0001
Subject: WaterSMART Title XVI Water Reclamation and Reuse Grant Endorsement, Central Coast Blue
Dear Deputy Commissioner Payne,
I am writing in support of the City of Pismo Beach’s (City) application for federal funding to advance the permitting, design and construction of Central Coast Blue. Central Coast Blue is a regional water reuse project that will create a new, local, drought-resilient water supply and protect the Santa Maria Groundwater Basin from seawater intrusion. This collaborative, multiphase project is a partnership between the cities of Arroyo Grande, Grover Beach, and Pismo Beach that will benefit southern San Luis Obispo County for generations to come.
Central Coast Blue will inject highly purified recycled water into the local groundwater basin to replenish the groundwater supply and prevent contamination caused by seawater intrusion. This critical project will provide the following benefits to the region, including several census tracts designated by the State as disadvantaged or severely disadvantaged communities:
• Increase water supply sustainability by protecting the groundwater basin from seawater intrusion, replenishing this essential resource and increasing sustainability of local groundwater supplies.
• Increase resilience to climate change by creating a new, local, drought-resilient water supply, and reducing reliance on strained imported water and local surface water supplies.
The funding request in the City’s application to the U.S. Bureau of Reclamation’s WaterSMART:
Title XVI WIIN Act Water Reclamation and Reuse Projects for Fiscal Years 2023 and 2024 is critical for the success of the project. Combined with the participating agency contributions, State grant funding, WIFIA financing, and the $14.1M in Title XVI funding previously awarded, this grant will allow the City and its partners to construct this vital project for our region.
Attachment 3
Again, I write in support of the City’s request for WaterSMART funding, consistent with relevant rules and regulations.
Thank you.
Sincerely,
Salud Carbajal
Member of Congress