Proposition 218
Public Hearing and
Adoption of
Proposed Water and
Wastewater Rate
Structure
GROVERBEACH.ORG
Deanne Purcell,
Administrative Services
Director
Background
• Utility Rate Study conducted by Tuckfield and
Associates including
• Revenue requirements analysis
• Cost of providing service analysis
• Rate design to fund operating and capital costs
needed for Water and Wastewater Enterprise
Funds
• Desired outcome of Study ensures:
• Rates are sufficient to cover ongoing operations
and maintenance
• Rates can fund needed capital projects of over
$34 million
• Rates support debt service obligations & reserves
GROVERBEACH.ORG
Timeline
GROVERBEACH.ORG
September 5
Utility Rate
Study presented
to Council
September 25
Council
approved Prop
218 noticing
October 23
Council
approved Prop
218 re-noticing
November 8
Public
informational
meeting
December
11 Prop 218 Public
Hearing
Capital Improvement
Projects
• Water Fund
• Central Coast Blue - Recycled Water
• Water Main Zone Valves
• Well Capacity Analysis and
Improvements
• 16th Street Booster Station Upgrade
• Water Meter Replacement Program
• Automated Meter Reading
• Reservoir Maintenance
GROVERBEACH.ORG
Capital Improvement
Projects
• Wastewater Fund
• Sewer Upgrade for Existing and Future Flows
• Front Street Lift Station Upgrades
• South Oak Park Lift Station Upgrades
• Sewer Upgrade for Existing Flows
• Citywide Sewer Lining Project
GROVERBEACH.ORG
Existing vs. Proposed – Residential
GROVERBEACH.ORG
Water
Rates
Compare
by City
GROVERBEACH.ORG
Grover Beach –
lowest in County
Cost of Water Comparison
GROVERBEACH.ORG
Billing units are expressed in Hundred Cubic Feet (HCF) 1 HCF = 748 gallons
=
3 tanks (250 gal each) = approx. 1 unit of water = $4.20 (Tier 1) Prop 218
Hearing
• Notices mailed October 25, 2023
• Within 45-day notification requirement
• Mailing sent to all water and utility customers
and owners of property that receive water
and/or wastewater services
• Final number of protests to be determined on
December 11 at the conclusion of the public
hearing
• If 50% plus 1 of 4,942 water utility accounts
(2,472) submit protest, then Council cannot
consider rate structure
• If 50% plus 1 protest threshold not met, then
Council can consider and adopt rate structure
Questions
GROVERBEACH.ORG
GROVERBEACH.ORG
$40 Million in Grant funds secured
$14 million
Title XVI WIIN Act
Program
$1 million
Proposition 1 IRWM
Grant Program
$25 million
Water Recycling Funding
Program
$15M
Prop 1 Groundwater Grant
Program
$10M
Title XVI Grant Application
$10 million request submitted 12/7/23
In person meetings last month with
• EPA staff
• US Bureau of Reclamation staff
• Congressman Salud Carbajal’s staff
• US Senator Butler’s staff
Title XVI WIIN Act
Program
GROVERBEACH.ORG
GROVERBEACH.ORG
GROVERBEACH.ORG
Utility Assistance Program
• Provides billing discount to low-income
customers enrolled in utility CARES
program (218 current enrollment)
• Bi-monthly credit for both water and
sewer fixed services charge (varies based
on meter size) with $58.58 average credit
• Average credit will increase to $66.46
with February 1, 2024 rate increases
• Annual $50,000 allocation from General
Fund and highest level of credit offered
in the county
GROVERBEACH.ORG
Utility Assistance ProgramAdditional Credit Recommendation • Recommended expansion for 2024 given
concerns about impact of rate increase
• Additional Tier 1 usage credit in addition
to fixed charges credit
• From February 1-Dec 31, 2024
• Increased General Fund cost of $24,000
in FY 24 and $31,000 in FY 25
• Payment plans available if needed
GROVERBEACH.ORG
Recommendation
• Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed water and wastewater rate structure • 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
• Provide direction or consider action on:
• Returning to Council annually in the fall to review funding needs and revenues for the Water and Wastewater Funds and consider possible rate decreases below adopted rate structure • Expanding the Utility Assistance Program beginning on February 1, 2024 as recommended and/or providing other assistance to customers
GROVERBEACH.ORG
Questions
GROVERBEACH.ORG
Water
Rates
Compare
by City
GROVERBEACH.ORG
Water
Rates
Compare
by City
GROVERBEACH.ORG
Water
Rates
Compare
by City
GROVERBEACH.ORG
Water
Rates
Compare
by City
GROVERBEACH.ORG
South San Luis Obispo
County relies on three water
sources to meet the
community’s diverse needs.
Grover Beach Water Use
Source: Northern Cities Management Area
1993 2022 0
500
1,000
1,500
2,000
2,500
Acre-Feet per Year
Groundwater
Lopez Lake
Grover Beach Conservation
Source: Grover Beach
117
66 0
20 40
60 80
100
120
Gallons per Person per Day
Statewide Average Grover Beach
However, prolonged drought
and
changing environmental
conditions have dramatically
impacted these sources.
Lopez Reservoir
mandatory cutbacks
triggered for users
%
CAPACITY IN DEC 2022
22 Lopez Lake Storage
Source: SLO County Department of Water
1969 2023
0%
20%
40%
60%
80%
100%
Percent Full
10-yr Average
Santa Maria
Groundwater Basin
Seawater was detected in the
drinking water aquifer in 2009.
The NCMA agencies manage
municipal pumping to prevent
seawater intrusion.
Groundwater
Pumping
Source: Northern Cities Management Area
1986 2022
0%
20%
40%
60%
80%
100%
Percent of
Entitlement
10-yr
Average
Seawater Intrusion Detected
Water Supply
0 200
400
600
800
1,000
1,200
1,400
Reduced Groundwater -
5-year Average
Lopez Lake - 20%
Reduction
Lopez Lake - 100%
Reduction
Acre
-Feet per Year
Lopez Lake
Groundwater
Current Demand
2014 2015 2016
Central Coast Blue Program Timeline
SLO County
Regional
Recycled Water
Strategic Plan
Pismo Beach
Recycled Water
Facilities
Planning Study
SSLOCSD
Recycled Water
Facilities Planning
Study
• Final Environmental Impact
Report
• Preliminary Engineering
• Cost Share
Agreement
• Joint Powers
Authority
• Final Design and
Permitting
Groundwater Modeling
and Project Planning
2017 2019 2020 2021 2022
State Water Project Allocations
0%
20%
40%
60%
80%
100%
Allocation
10-yr Average
Source: California Department of Water Resources
1967 2023
Lopez Spillway Raise State Water
Production Well
Relocation
Desalination
Alternatives Comparison
Conservation
Alternatives Comparison
Objectives Conservation State Water Lopez Spillway
Raise
Production Well
Relocation Desalination Central Coast Blue
Improve Water Supply Reliability
Seawater Intrusion Prevention
Create New Water Supply
Local Control
HOW IT WORKS
Seawater Intrusion
Seawater Intrusion Barrier
Basin Benefits From Seawater
Intrusion Barrier
1420 AFY
Extraction
900
AFY
Injection Pismo
Beach 555
AFY
Arroyo
Grande
355 AFY
Grover
Beach
510 AFY
Partner’s Share of
Increased Pumping
PAGE 46
Project
Location
PAGE 47
Project
Location
Communities
Investing in
Potable Reuse
Source: WateReuse
Pure Water Soquel
Project Facts
• 1.3 million gallons per day of
purified water
• 3 seawater intrusion prevention
wells
• 9 monitoring wells
• 8 miles of pipeline
• Project online in 2024
• Expandable in the future to meet
additional groundwater basin
needs, drought needs, and climate
change
• Construction Cost: approx. $145M
• Service Area: 40,000 people
Source: Soquel Creek Water District
Project Capital Cost
$93M
Implementation
Costs
$18M
Injection Wells,
Monitoring Wells &
Pipelines
$27M
Advanced
Water
Purification
Facility
$40M
Management
Reserve/ Program
Contingency
$8M
9%
19%
29%
43%
Project Capital Cost
Process Building & Tanks
$8.6M
Site Civil
$2.8M
Process Mechanical
$16.7M
Electrical, Instrumentation &
Controls
$12M
Project
Capital
Cost
Injection Wells
$14M
Monitoring Wells
$6M
Pipelines
$7M
25%
50%
25%
Financing Plan
$93M
Planned LowInterest
Loans
$47M
Planned
Federal Grants
$23M
Central Coast Blue will be
funded by a combination
of grants, low-interest
loans and ratepayer
revenues.
Planned State
Grants
$23M
Cost Share
$47M
Grover Beach
$16.7M
Pismo Beach
$18.3M
Arroyo Grande
$11.8M
25%
36%
39%
Following extensive and
collaborative negotiations,
program partners agreed
on a framework to share
program costs and
benefits.
Public Outreach and Engagement
Over 50 public meetings
with project updates,
including two joint council
meetings.
Website and informational
materials with project
details
Demonstration facility,
tours, and community
presentations
Seawater intrusion detected
in Wells 30-N02 and
Oceano Blue Well in 2009
Seawater Intrusion Detection – Model shows onshore
subsurface flow in layers 6 and 8 preceding and during
the detection of seawater intrusion in 2009. These layers correspond with the portions of the aquifer where
seawater intrusion was detected.
Deep Well Index
Basin contamination due to
seawater intrusion
Street
Repair
• 1.1 miles of Grover
Beach streets overlay
project pipelines
• Total Phase 1: 1.9
miles
• Pipelines routes have
been optimized to
minimize street repair.
• 2 blocks of recently
repaved streets will
need to be replaced
out of the city's 450
blocks.
AWPF
Advanced Treatment Process
1 2 3
Central Coast Blue Provides Many Unique Benefits
Local Control
Drought Resilience Groundwater Protection Water Reuse
Protects the groundwater basin
against seawater intrusion
Provides reliable water supply
that isn’t dependent on rainfall
Reduces reliance on costly
imported water
Recovers valuable local water
and aligns with State priorities
Sustainability
Shares resources to maximize
value for the community
Reduces the amount of water
discharged to the ocean
Regional Collaboration
Injection
Wells
Original
Project
Injection
Wells
Modified
Project
Hydrogeological Evaluations
1. San Luis Obispo County Regional Recycled Water Strategic Plan (2014)
2. City of Pismo Beach Recycled Water Facilities Planning Study (2015)
3. SSLOCSD & Arroyo Grande Recycled Water Facilities
Planning Study (2017)
• Central Coast Blue Phase 1A Model Report (2017)
4. Central Coast Blue Phase 1B Model Report (Geoscience, 2019)
5. Central Coast Blue Prop 1 Groundwater Grant Program
Planning Grant
Cleath Harris Geologists
Phase 1B Technical Advisory
Committee
Prop 1 Grant TAC
Prop 1 GWGP Planning Grant
Representative Agency
Technical Advisory Committee (TAC)
Harvey Packard CC RWQCB
Jennifer Epp CC RWQCB
James Bishop CC RWQCB
Saeed Hafeznezami SWRCB DDW
Jeff Densmore SWRCB DDW
Kira Smith SWRCB DFA
Stakeholder Advisory Group (SAG)
Shane Taylor Arroyo Grande
Gregory A. Ray Grover Beach
Benjamin A. Fine Pismo Beach
Will Clemens Oceano CSD
Jim Garing GTA & Associates
Paul Sorensen GSI
Representative Agency / Firm Affiliation
Hydrogeologists
Paul Sorensen,
Dave O’Rourke
GSI Water
Solutions
Northern Cities Mgmt
Area (NCMA)
Tim Cleath,
Steve Bachman
Cleath-Harris
Geologists
Nipomo Mesa Mgmt
Area (NMMA)
Jim Garing GTA & Assoc. Independent
Bob Collar
Golden State
Water
Company
NMMA
Michael Cruikshank WSC Central Coast Blue
Non-Hydrogeologists
Ben Fine, Greg
Ray, Shane Taylor,
Will Clemens
NCMA Agencies, Public Works
SLO County Public Works Independent
Dan Heimel WSC Central Coast Blue
Phase 1B Groundwater Model
Technical Advisory Committee