Sewer System
Update
GROVERBEACH.ORG
Greg Ray
Public Works Director/City Engineer
Nick Szamet
Administrative Services Director
Background
GROVERBEACH.ORG
• Private septic tank systems before
1965
• Core sewer system constructed in
1965 - now 60 years old
• Did not include properties in the
northern most portion of the City or
industrial area south of Farroll Road
• Industrial area still mostly served by
private septic systems
• Required to connect to City sewer with
ordinance adopted in February 2024
Background
GROVERBEACH.ORG
• 1965 population - 3,600 residents
• Estimated sewer flows at the time (0.29 million gallons per day or MGD) • Sewer mains sized for estimated flows and to accommodate future growth • From 1965 – 2006:
Repaired mains, sewer manholes and existing sewer pump stations as needed
Few upgrades to existing system
Sewer mains and pump stations added to accommodate new development
Background
GROVERBEACH.ORG
• City’s sewer collection system
today includes:
35 miles of gravity sewer
mains - 6 to 12-inches in
diameter
Three sewer pump
stations
• Two private sewer pump
stations (Mar Brisa, State
Park)
2006 Sewer System Master Plan and Recommended Upgrades
GROVERBEACH.ORG
• 2006 - Garing, Taylor and Associates prepared a comprehensive Sewer Master Plan
• A Master Plan evaluates a sewer system and provides recommendations for repairs and upgrades
• 2006 - City’s population had grown to 13,248 residents • Sewer flow - increased from 0.29 MGD to estimated 1.06 MGD • Many sewer mains built in the 1960s were at or near capacity • Master Plan recommended:
Upgrades to numerous sewer mains
Construct new gravity main south of Farroll Road to eliminate three sewer pump stations
Estimated cost of improvements - $1,465,000
2006 Sewer System Master Plan and Recommended Upgrades
GROVERBEACH.ORG
• 2006 – 2018:
Some of the recommended upgrades completed
A sewer main was constructed south of Farroll Road
Eliminated three of the City’s six sewer pump stations • 2014 - Grover Beach voters approved Measure K-14
Bond measure to rehabilitate local streets
• 2015 - Council prioritized K-14 street projects and provided policy direction Policy - Ensure sewer upgrades completed prior to street improvements
Council has reiterated this policy direction to staff 2018 Sewer System Master Plan and Recommended Upgrades
GROVERBEACH.ORG
• 2018 - MKN and Associates prepare an updated Sewer Master Plan
• MKN developed a computerized model of the City's sewer system Input current measured flows and estimated future flows based on population growth predictions
2018 population - 13,560 - Measured average sewer flow – 0.73 MGD Average sewer flows projected to increase to 1.13 MGD by 2050 Model identified the need for system upgrades based on existing flows Evaluated new development’s fair share of recommended system upgrades 2018 Sewer System Master Plan and Recommended Upgrades
GROVERBEACH.ORG
• 2018 Master Plan
identified $7,123,000
in recommended
operational and
system upgrades
• Included $4,563,000 in
upgrades to address
operational deficiencies
and sewer mains that
were over capacity prior
to 2018
Example: Upgrade N.
9th from 8-inch to 10-
inch
• Included $1,567,000
in upgrades to
address future flow
deficiencies
Example: Upgrade
S. 4th from 8-inch
to 12-inch
• City is coordinating
with SSLOCSD on
their upgrades to the
trunk main in Highway
1 GROVERBEACH.ORG
• Includes $993,000 in
upgrades to address
flow deficiencies from
anticipated septic
system conversions
south of Farroll Road
Example: Upgrade
Mentone from 8-inch
to 12-inch
Sewer System Capital Improvement Program
GROVERBEACH.ORG
Staff developed CIP based on 2018 Sewer Master Plan
recommendations
Timing and prioritization of projects modified to account for changes in development since 2018 Sewer Master Plan preparation
Example: Sewer main upgrades for existing deficiencies in S. 4th Street, N. 9th Street and Atlantic City Ave originally a lower-level priority Now high priority due to development of hotel at 950 El Camino Real The hotel developer paying their respective share thru Development Impact Fees
Sewer System Capital Improvement Program
GROVERBEACH.ORG
• 2018 Master Plan total cost
estimate - $7,123,000
• 2023 – 3 bids for CIP Project 5002
• Lowest bid - $4.1 M
• Significant cost increase vs 2018
Master Plan estimate
• All CIP estimates increased based
on 2023 bid and inflation
• Total CIP cost estimate - $15 M
CIP 5002
Sewer System Capital Improvement Program
GROVERBEACH.ORG
• Recommended CIP for next five years
• Sewer rate revenue alone is insufficient to fund priority improvements • Upgrades should be done soon to avoid impacts such as overflows • Due to the City’s strong credit rating- Bond financing recommended by the City’s financial advisor
• Similar to water revenue bond issued in 2020 for water system improvements $
• Recommended sewer upgrades on
future streets that are part of the
Measure K-14 program
• Sewer system Capital Improvement
Program goals:
Correct existing deficiencies in
areas downstream of new
construction
Complete sewer main work
ahead of Measure K-14 street
improvements (next project)
• March 24th - to Council for update
on order of K-14 Street projects
Sewer System Funding Needs
GROVERBEACH.ORG
Spreadsheet:
• Impacts from
passage of
Measure G-24
• Repealed sewer
rates to the
previous rates
established in 2021
• Initial estimate of
sewer system
funding needs
• Includes estimated
operation and
maintenance costs
• CIP expenditures
in FY 2024-25 only
Sewer System Funding Needs
GROVERBEACH.ORG
• No CIP funding
beyond FY
2024-25
• Still below
target reserve
levels by FY
2028-29
Sewer System Funding Needs
GROVERBEACH.ORG
• 2021 rate structure - Final 2% rate increase scheduled to take effect July 1, 2025 • Revenues generated will not provide sufficient funding to implement the CIP • Rate structure leads to diminished reserves and lack of funding for needed infrastructure improvements
• Does not maintain Sewer Fund fiscal solvency
• Impacts to existing and future sewer system could affect community health and safety needs
• Further delay implementation of Measure K-14 projects.
Sewer System Funding Needs
GROVERBEACH.ORG
• Given the issues identified previously with the existing 2021 rate structure:
Staff has worked with the City’s utility rate consultant Tuckfield and Associates
Preparing a new sewer rate study including a new rate structure that addresses current and future sewer system needs
Rate study will be completed over the next month
Staff is seeking Council direction to present the results of the rate study to the Council on March 24 along with the Proposition 218 noticing process for a new rate structure
Fiscal Impact
GROVERBEACH.ORG
• No immediate fiscal impacts
• Pending Council direction- staff will
present the results of a new sewer
rate study on March 24:
Additional information provided
on related fiscal impacts
Comprehensive financial plan
for the sewer system
Address potential grant funding
such as Community
Development Block Grants
Questions and
Comments
GROVERBEACH.ORG