Grover Beach City Council
September 8, 2025

Water System
Update
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Matthew Bronson
City Manager
Greg Ray
Public Works Director/City Engineer
Background
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• Update on status and overview of City’s water system:
• Water infrastructure needs
• Water supply conditions
• Water Enterprise Fund financial issues
• Information about water supply resiliency study and requested direction on scope of study
• Consistent with Council Priority of Water and Sewer
Infrastructure and Needed Resources
Water Infrastructure Needs
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• City’s water system:
• 48 miles of water mains
• 1,600 valves
• 440 fire hydrants
• Predominately over 40 years
old and some components as
old as 60 years
• 31 unexpected service
interruptions in FY 2024-25
Water Infrastructure Needs
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• System reliability impacts:
• Major system maintenance deferred due to a lack of funding • Replacements and upgrades only after system components failed • Water Master Plan and 10-year CIP developed in 2010
• Begin long overdue maintenance and replacement of aging system components • Upsize mains, valves and pumps for existing and future development • Time period modified to 20 years to minimize ratepayer impacts • Updated Water Master Plan and CIP in 2019 with similar 20-year timeframe • Some progress due to 2020 Water Revenue Bond
Water Infrastructure Needs
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• Identified water infrastructure projects delayed other than necessary Well 1 power supply project:
• Water Main Zone Valves
• Well Facility Improvements
• 16th Street Booster Station pump and equipment upgrades • Water Meter Replacement Program
• Automated Meter Reading
• Upsizing Water Mains
• Nitrate Plant de-commissioning
• Reservoir Maintenance
Water Supply Conditions
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• Two water sources: Lopez Lake
(Lopez) and Santa Maria
Groundwater Basin (groundwater)
• Above/near normal rainfall from
2023 to 2025
• Lopez Lake currently 85% full
• Groundwater levels sufficient to
support current pumping
• Sufficient water supply available
over the next few years to meet
projected demand
Water Supply Conditions
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• Current water supply could be insufficient to serve existing customers during extended drought resulting in need for significant water use cutbacks
• With incremental population growth expected, long-term water demand may exceed available supply even with normal rainfall years • No supply buffer available to address drought or water system emergencies
• Pending federal litigation against County operation of Lopez Lake for alleged impacts on endangered species
• Building permits and development projects approved but not yet built result in additional demand
Water Supply Conditions
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• Staff efforts related to future water supply:
• Research feasibility of water supply development impact fee • Ordinance concept on implementing temporary development stay to address water supply shortage conditions in cases of extended drought • Water supply resiliency study
• In-depth evaluation of supply resiliency and risks compared to estimated demand
• Analysis of available alternative water supply sources with recommendations on the most feasible sources to consider • Recommendations on the timing and scale of a future water supply source(s)
Water Supply Conditions
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• Water supply resiliency study draft scope
• Public information and engagement program for community involvement • Analysis of water supply and demand and recommended water supply buffer amount and policy
• Cost-benefit analysis of the following list of water supply alternatives:
• Conservation
• Desalination
• Lopez Lake spillway modifications and downstream releases • Purchase of State Water
• Recycled water
• Storm water retention
• Other emerging water supply solution
Water Supply Conditions
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• Short list of water supply alternatives recommended for in-depth research
• Preliminary design, cost estimates and estimated schedules for selected alternatives
• Peer review, value engineering and recommendations on existing designs
• Final report and recommendation to the Council identifying the most cost effective and feasible water supply alternative
• Recommendations on future actions related to the recommended alternative
Water Supply Conditions
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• Staff seeking Council input and direction on draft scope of work prior to releasing a Request for Proposals
• Study led by the Public Works Department with involvement from Community Development and City Manager’s Office
• Funding for the study is included in Water Fund budget • Proposed schedule:
• RFP released this month
• Consultant agreement to the Council for approval by the end of 2025 • Study report to the Council by July 2026
Water Enterprise Fund Issues
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• Operating budget - $4.6 million with budgeted deficit of $145,404 • Status of water rates:
• Dec. 2023 rate structure reduced by Council in May 2024 to 2021 levels • Measure G-24 removed Council authority to increase w/o Prop 218 process • Current 2021 rate structure expires June 30, 2026
• Does not fund increased operations and maintenance costs or necessary capital projects to improve infrastructure
• Plan to initiate rate study following conclusion of water supply resiliency study and bring to Council in FY 2026-27
Water Enterprise Fund Issues
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• Future rate structure considerations:
• Infrastructure needs
• Water supply needs
• Lopez Lake litigation impacts
• Tiered rate structure under new case law
• Billing for multi-family residences
Summary and Next Steps
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• Recommended action:
• Receive a report on the status of the City’s water system including water infrastructure needs, water supply conditions, and Water Enterprise Fund financial issues and provide direction to staff regarding a proposed water supply alternatives study
• Start of multi-year process to address the City’s water system in a thoughtful and comprehensive way
• Council deliberation and community engagement integral • Process begins with water supply resiliency study as first step Questions and
Comments
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