PROPOSED RATE INCREASE
TO WATER SERVICE CHARGES
PUBLIC HEARING - NOVEMBER 7, 2023 AT 6:30PM,
CITY HALL, 955 SCHOOL STREET, NAPA, CA 94559
WATER RATES PROPOSED TO INVEST IN SYSTEM RELIABILITY
Napa rates would remain among lowest
Napa’s water rates remain some of the lowest in the area, even after the proposed increases. The chart below shows a typical summer water bill for 8,000 gallons per month. With the proposed rates, 77% of all water bills for Napa customers will be $72 or less.
The City’s water system is a network of treatment plants, pipes, tanks, pump stations, fire hydrants, meters, and other facilities that are designed, operated, maintained, repaired, and replaced for a single purpose – to provide you safe, reliable, and life sustaining water every second of every day.
Water System Operations include labor, materials, and
equipment necessary to operate and maintain the water
system and purchase of State Water Project water which
supplies almost 2/3 of the water used by the community.
Annual inflation and the size and age of the water system are primary drivers of these costs.
Infrastructure Investments include planned capital improvements and debt service on past capital improvements. A major focus of these investments is on aging infrastructure including major transmission lines, neighborhood distribution lines, and the Hennessey Treatment Plant and Reservoir. Failure to make these investments leads to system failures, increased operating costs, and increased costs of future improvements.
Water rates have not increased over the past two years. Rates are the primary funding source for the water system – NO taxes are used. Current rates do not bring in sufficient revenue to cover the cost of running a stable and reliable water system.
The proposed rates are necessary to cover the costs of investing in infrastructure, purchasing water supply, and operating the system.
Water rates provide
the funding for Water
System Operations
and Infrastructure
Investments to protect
your health and safety
by ensuring reliability
of infrastructure,
water supply, and fire
protection.
Please take a look at the complete contents of this notice. An explanation of what rates are used for is shown on page 2. Investments in critical Capital Improvements are highlighted on page 3. The inserts provide full details on proposed rates, typical monthly cost of water and other utilities, the public hearing on the rates, and the opportunity to protest.
ATTACHMENT 2
Water System Operations are projected to cost
$44 million in 2028, which include an $8 million
investment in Capital Improvements (CIP). Based
on these costs, a dollar of revenue is allocated
as shown. 68 employees operate, maintain, and
manage a very complex system to provide you
safe water that is available 24/7. As a comparison,
the City’s Fire Department has 74 employees to
deliver services to keep you safe every day.
Infrastructure Investments use a combination
of revenue from rates, capacity fees from new
development, and debt service to complete capital improvements on the water system. The graph below identifies the level of necessary investments in various areas of the water system. A primary focus is on water quality, in particular improvements to the Lake Hennesey Treatment Plant in 2028-2030. This plant treats What are water rates used for?
Transmission
Treatment
...TO TAP
FROM SOURCE...
• 5,000 acres in two watersheds
• 3 water supplies
• Future water supply planning
• 3 treatment plants
• Instrument and control systems
• 350 lab samples per day
• Regulatory compliance
• 24/7 Operation
• 14 storage tanks
• 9 pump stations
• 14 pressure regulator stations
• 360 miles of pipe
• 2,900 Fire Hydrants
• 9,700 Valves
• 25,500 meters and service lines
• 12,000 meters read per month
• 1,000 customer visits per month
• 70-110 leak repairs per year
• 24/7 Emergency Response
• Customer service
• Water conservation
• Development review
• Capital improvement design
Distribution
2 our local supplies and was
constructed in 1981. $80-$100
million is needed to refurbish and
upgrade the plant. Revenue bonds
will be sold in 2027 to generate
the necessary funds, resulting in
approximately $7 million per year in
debt service. A similar approach was
used for the $45 million upgrades
to the Barwick Jamieson Treatment
Plant in 2010.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2023 2024 2025 2026 2027 2028 2029 2030
Water Capital Improvements by Type
Water Administration Water Distribution Water Quality Watershed (Supply) Water Transmission Water Recovery/Disaster
ATTACHMENT 2
NOTICE: PROPOSED RATE INCREASE TO WATER SERVICE CHARGES SINGLE-FAMILY RESIDENTIAL: Inside City (In) and Outside City (Out) $ cost per unit (unit = 1,000 gallons)
Current Tier
Proposed
1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027
In Out In Out In Out In Out In Out In Out
$4.57 $6.53 0-14 units $5.46 $8.07 $6.12 $9.03 $6.67 $9.85 $7.27 $10.73 $7.85 $11.59 $6.58 $9.58 15-27 units $8.05 $11.53 $9.01 $12.91 $9.82 $14.08 $10.71 $15.34 $11.56 $16.57 $8.70 $12.39 28+ units $9.77 $12.72 $10.94 $14.25 $11.92 $15.53 $13.00 $16.92 $14.04 $18.28 Bimonthly Fixed Service Charge
ALL CUSTOMER CLASSES
Inside/Outside City
Current Service Size
Proposed
1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027
$48.58 3/4-inch $52.04 $58.28 $63.53 $69.25 $74.79
$48.58 1-inch $52.04 $58.28 $63.53 $69.25 $74.79
$93.43 1 1/2-inch $99.53 $111.47 $121.51 $132.44 $143.04 $147.24 2-inch $156.51 $175.29 $191.07 $208.26 $224.92
$290.75 3-inch $308.45 $345.46 $376.56 $410.45 $443.28
$452.19 4-inch $479.39 $536.92 $585.24 $637.91 $688.94
$900.65 6-inch $954.22 $1,068.73 $1,164.91 $1,269.75 $1,371.33 $1,438.79 8-inch $1,713.95 $1,919.62 $2,092.39 $2,280.71 $2,463.16 Water Quantity Charge
A Public Hearing on adopting the proposed rates will be held at City Hall, 955 School Street, on November 7, 2023, at 6:30 pm . City Council will receive verbal or written com - ments and/or protests regarding water rates at the hearing. Per the California Constitu - tion (Prop 218), if written protests representing a majority of the parcels subject to the pro - posed water rates are received prior to the close of the hearing, the City may not implement the proposed water rates. Protest form with instructions is included with this mailer .
The basis for the charges identified herein is available in the Cost of Service study online at cityofnapa.org/water or at the City of Napa Utilities Department, 1700 Second Street, Suite 100, Napa, CA.
MULTI-FAMILY RESIDENTIAL, $ cost per unit (unit = 1,000 gallons) Current Location
Proposed
1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027
$6.53 Inside City $7.59 $8.51 $9.27 $10.11 $10.91
$10.26 Outside City $11.17 $12.52 $13.64 $14.87 $16.06
COMMERCIAL/INDUSTRIAL/INSTITUTIONAL, $ cost per unit (unit = 1,000 gallons) Current Location
Proposed
1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027
$6.64 Inside City $7.58 $8.49 $9.25 $10.08 $10.89
$10.40 Outside City $11.10 $12.44 $13.55 $14.77 $15.96
IRRIGATION, $ cost per unit (unit = 1,000 gallons)
Current Location
Proposed
1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027
$6.84 Inside City $7.65 $8.57 $9.34 $10.19 $11.00
$10.70 Outside City $11.27 $12.62 $13.76 $15.00 $16.20
ATTACHMENT 2
Bimonthly Fire Service Charge
Current Service Size
Proposed
1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027
$33.75 1 1/2-inch $33.99 $38.07 $41.49 $45.23 $48.85
$51.76 2-inch $51.64 $57.84 $63.04 $68.72 $74.21
$75.80 2 1/2-inch $75.21 $84.24 $91.82 $100.08 $108.09
$99.79 3-inch $98.73 $110.58 $120.53 $131.38 $141.89
$153.81 4-inch $151.70 $169.90 $185.20 $201.86 $218.01
$303.89 6-inch $298.83 $334.69 $364.81 $397.64 $429.46
$483.99 8-inch $534.25 $598.36 $652.21 $710.91 $767.78
$694.10 10-inch $710.81 $796.11 $867.76 $945.85 $1,021.52 $1,294.42 12-inch $997.72 $1,117.45 $1,218.02 $1,327.64 $1,433.85 ELEVATION SURCHARGE for all Pumped Zone Customers
$ cost per unit (unit = 1,000 gallons)
Current
Proposed
1/1/2024 10/1/2024 10/1/2025 10/1/2026 10/1/2027
$2.08 $2.46 $2.75 $3.00 $3.27 $3.53
Fire Services
RATESHARE DISCOUNT
per Bimonthly Water Bill*
Current/Proposed
$25.00
* Program for low-income single-family residential customers cross-enrolled in PG&E CARE program.
Typical Cost for Water Each Month
Under the proposed rates, the monthly cost of water service for single-family residential customers inside the City is illustrated below. High water users would see the largest dollar increase. If the proposed rates are adopted, low water users (over 50% of all bills) would see a small increase but remain at a very reasonable $48 per month for water service. Typical summer bills will be in the $72 - $104 range as irrigation use increases.
Usage Monthly Cost % of Bills
at this
level or
lower
Water Use Units Per
Month Current 2024 2028
Low - Winter 4 $43 $48 $69 52%
Average - Summer 8 $63 $72 $104 77%
High - Summer 12 $89 $104 $150 88%
NOTE: These calculations are based on monthly charges. Water customers are actually billed every two months.
A discount of $12.50 per month for low
income customers will be continued.
How to Calculate Changes to Your Bill
Get copies of your past water bills and
visit the Water Rates section of
cityofnapa.org/water
or call 707-257-9521.
Household Utility Comparison
How does your water bill stack up?
The typical household spends the following on other utilities each month:
Water Service Electricity/Gas Sewer Recycling Cell Phone Cable/Internet $48 - $104 $240 $62 $30 - $59 $144 $120 - $200
ATTACHMENT 2
ATTACHMENT 2
City Clerk
public hearing on November 7, 2023 at 6:30 pm. Spoken, fax, email or other electronic protests are not valid and will not be counted.
ATTACHMENT 2
Recently Completed Projects
● 1,700 linear feet (lf) 36-inch transmission main at Sheehy Ct ($1.3 million) ● 770 lf 12-inch and 36-inch transmission main and 300 lf 8-inch main on Laurel Ave ($1.1 million)
● Hillcrest and Silverado Pump Stations ($3 million)
● 2,500 lf 6-inch and 8-inch main on Randolph, Seminary, and Franklin Streets ($280,000)
● Alta Heights II Pressure Tank replacement ($330,000)
Planned Capital Investments:
● Hennessey Spillway Flow Expansion ($10 million)
● 2,800 lf 12-inch main on Laurel Ave from Griggs to Freeway Dr ($1.2 million)
● 3,000 lf 12-inch main on Browns Valley Rd ($1.5 million) ● Design Hennessey Treatment Plant Upgrades ($6 million) ● HTP Improvements ($80 million - $100 million)
One week of indoor water use is...
loads of laundry
28 loads of dishes cleaned
* A typical family of 4 uses 1 unit of water per week during the winter months. These calculations are based on the average of low-flow fixtures and calculated using the proposed rates. You can get more out of the highest efficiency fixtures. High-efficiency showerheads, faucet aerators, and other water-saving devices are available at the Utilities Department, 1700 Second Street Suite 100, Napa. flushes
7 7
showers
135
$6.51 + $5.46
135
handwashes
Fixed Cost Unit Cost
$11.97
( (
While system operating costs have been streamlined, additional revenue is needed to fund much-needed capital improvements such as replacement of aging pipelines, Hennessey Treatment Plant (HTP) Improvements, and increased monitoring and laboratory analyses that ensure water is safe to drink.
Aging infrastructure is a common challenge for many water systems. Much of Napa’s water infrastructure was built in the 1950s just after WWII. The City has a Water Master Plan to address these capital improvement needs.
All for only
Capital Improvement Projects (CIP)
Design Life
Buried Pipes = 100 years
Treatment Plants = 40 years
Annual CIP
● Existing CIP: $6 million/year
● Proposed CIP: $8 million/year
by 2028
● Debt Service for $100 million
HTP Bond issuance 2027:
$7.2 million/year
● 20 miles of distribution (<12-inch) mains are ~100 years old ● 70-110 emergency repairs per year drive operating costs ● 50 miles of 42-inch and 36-inch transmission mains are between 50 and 70 years old
● Hennessey Treatment Plant is 42 years old
Investment Needed: System is Aging
3
ATTACHMENT 2
PO Box 660
Napa, CA 94559
Presorted
Standard
US Postage
PAID
Napa, CA
Permit __
If you own more than one
parcel, you may receive
multiple notices. We apologize
for the inconvenience.
Información importante sobre
aumento de tarifas del agua.
Para recibir esta información
en español, llama al (707) 257-
9521 o visita www.cityofnapa.
org/water
Printed on Recycled Paper
Visit cityofnapa.org/water or call (707) 257-9521 for:
Water Rate FAQs, Cost of Service Analysis, Maps of Elevation Surcharge Area and Fire Service Charges, Water Conservation Info, Protest Procedures, Bill Charge Calculations and more!
DO NOT DISCARD.
IMPORTANT
WATER RATE
INFORMATION
ENCLOSED.
PROPOSED RATE INCREASE
TO WATER SERVICE CHARGES
PUBLIC HEARING - NOVEMBER 7, 2023 AT 6:30PM,
CITY HALL, 955 SCHOOL STREET, NAPA, CA 94559
Tap Water: about a Bottled Water:
$1.50
Delivered right to your home!
What does 1 gallon cost?
Milk:
$5.43
Latte:
$29.12
Gasoline: $5.09
ATTACHMENT 2