PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #11.A
SUBJECT/TITLE:
RESOLUTION ADOPTING NEW WATER AND WASTEWATER FEES FOR FISCAL YEARS 2024 THROUGH 2028, EFFECTIVE ON JANUARY 1, 2024
RECOMMENDATION:
1. Hold a public hearing; receive input and written protests, if any, from the public on the proposed changes to water and wastewater rates; and If protests are received for less than a majority of eligible parcels:
2. Adopt a Resolution adopting new water and wastewater fees for Fiscal Years 2024 through 2028, effective on January 1, 2024.
EXECUTIVE SUMMARY:
The purpose of this Public Hearing and City Council agenda item is to comply with Proposition 218 Public Hearing requirements for changing the City’s water and wastewater (sewer) rates. At the Public Hearing, the City Council receives input from the public on the proposed changes to water and wastewater rates. If written protests are received for at least a majority (50% plus one) of Pismo Beach parcels prior to the closure of the public hearing, no further proceedings to impose the water rate changes shall take place during the ensuing fiscal year. If protests received are not more than 50% of the eligible parcels, the Council may proceed to adopt a Resolution (Attachment 1) affirming and revising the City’s water rates. As of the publication of this report, the City has received thirty-six (36) protests of the proposed water and/or wastewater rate changes.
This is a prima facie count and the protests have not been validated. In order to constitute a majority of protests, there would need to be approximately 2,487 protests submitted for the proposed water rates, and 2,379 protests for the proposed wastewater rates. The majority protest counts represent 50% plus 1 of the total number of water or wastewater accounts with the City.
Summary of Proposed Water and Wastewater Rate Changes
The proposed water and wastewater (sewer) fees are each set up to have a flat rate service charge and a variable rate based on water consumption. The proposed fees are increased to fund critical water and wastewater infrastructure improvements, support the Central Coast Blue Project, and support operating expenses. The proposed rates are scheduled to adjust effective January 1, 2024 and annually on January 1st of 2025 through 2028.
More information regarding the rate setting methodology is available in the August 15, 2023 staff report, resolution, and attachments, available online in the Access Pismo public records portal1, or on request from staff.
1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=486161&dbid=0&repo=Laserfiche
11.A-1Council Agenda 10-17-2023
What Will the Proposed Water and Wastewater Rates Support? The proposed water and wastewater utility rates (Attachments 1.A and 1.B) will support the City’s water and wastewater needs and requirements now and into the future. The City is committed to providing clean, safe, and reliable drinking water; protecting public health and the environment with proper wastewater treatment; creating a brand new drought resistant water supply; and maintaining sustainable water and wastewater systems.
Clean, Safe, and Reliable Drinking Water
The City’s water quality is tested weekly and all water quality standards are met. Every year, the City provides a Consumer Confidence Report that outlines how the City’s water system met all federal and state drinking water standards at pismobeach.org/waterquality.
In order to maintain this water quality, several capital projects are proposed to be supported by the water charges, including: New Groundwater Production Well; Advanced Metering Infrastructure; Bello Reservoir Roof Replacement, Charles Street Reservoir Replacement; and Bello-Price/Highway 101 Waterline Upgrade.
Protecting Public Health and the Environment with City’s Wastewater Treatment Plant The City’s wastewater quality is exceptional, far exceeding the standards established by the California State Regional Water Quality Control Board. In order to meet federal and state laws and regulatory requirements, several capital projects are proposed to be supported by the wastewater charges, including the: Wastewater Maintenance and Improvement; Wastewater Treatment Plant upgrades; and Harloe Lift Station Bluff Stabilization.
New Drought-Resistant Water Supply: Central Coast Blue for Water Sustainability Central Coast Blue is a regional water sustainability project that will create a new, high- quality, and drought-resistant water supply for Pismo Beach, Grover Beach, and Arroyo Grande. These communities are designing and building a new advanced water purification facility to create a high-quality water source to supplement local groundwater supplies, with Pismo Beach serving as the lead agency. This project allows these communities to have sufficient water supplies even in times of drought.
The project includes construction of an Advanced Treatment Facility to treat water from the City of Pismo Beach's Wastewater Treatment Plant (WWTP) to produce purified water that is purer than most bottled water. The purified water will be injected into the groundwater basin to supplement the natural groundwater supply and to create a seawater intrusion barrier.
Central Coast Blue will enhance local supply reliability and help protect the community from droughts by diversifying supply sources and keeping communities from becoming too reliant on any one source of water. This project also reduces the amount of treated effluent released by Pismo Beach’s WWTP into the ocean by 74%. For more information, visit www.centralcoastblue.com .
11.A-2Council Agenda 10-17-2023
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 operating expenses, including support for personnel costs, electricity, chemicals, and purchased water (State Water and Lopez Lake water). The financial plans also include ensuring adequate reserves and debt service coverage ratios.
Timeline of Proposed Water and Wastewater Rate Changes
August 3, 2023 Special Council meeting: The Council reviewed information about the proposed water and wastewater rates and provided direction to staff regarding the proposed fees. Council directed staff to:
Continue efforts on the proposed water and wastewater fees as proposed except for a change to the Mobile Home water variable rate as described below; Amend the Mobile Home water variable rate to reflect the proposed Multi-family Family variable rate starting with January 1, 2024 and each January thereafter through January 2028; and
Return to Council in two years to determine if water and wastewater rates should be evaluated prior to the end of the 5-year implementation of rates.
August 15, 2023 Council Meeting for consideration of amending rates: The Council reviewed information about the proposed water and wastewater rates, and adopted a Resolution (R-2023-062) to approve the proposed schedules; direct staff to issue Proposition 218 notices to all residents and rate payers; direct staff to schedule a Public Hearing on the adoption of the rates for October 17, 2023; and adopt the City of Pismo Beach Water and Wastewater Rate Study (Study).
August 28, 2023 Proposition 218 Notifications: To comply with Proposition 218 requirements, staff notified all property owners and rate payers of properties served by the City’s water and wastewater system with a Public Notice (Attachment 2); the rate setting process; the upcoming community workshops; where to find more information ( www.pismobeach.org/ratechanges); and the public hearing scheduled for October 17, 2023.
Community Workshops: Staff held two public workshops to receive feedback on the proposed rate structure.
Non-Residential Rate Structure Workshop: September 27, 2023 at 4:00 p.m. Residential Rate Structure Workshop: September 27, 2023 at 6:00 p.m.
October 17, 2023 Public Hearing: Council will determine whether or not to adopt the Resolution approving the new water and wastewater rates.
As of the date of the preparation of this report, staff has made only an informal count of the number of written protests received. Written protests collected have been placed directly into a locked box in the City Clerk’s Office to ensure the safe-keeping of filed protests and the integrity of the protest process. On the afternoon of October 12, 2023, at 2:00 p.m., staff performed a prima facie count of the protests received to date and
11.A-3Council Agenda 10-17-2023
determined that thirty-six (36) intended protests of the proposed water and/or wastewater rates have been submitted. Those protests have not been validated, but even if all protests are assumed to be valid, the number received falls well under the majority threshold.
Staff will provide the raw count of protests received to City Council at the beginning of the public hearing. Following staff's report, the City Council will conduct a public hearing, during which any interested parties may submit oral comment and/or additional written protests. Following the closure of the public hearing, no additional written protests will be accepted. At that time, if feasible, staff will provide a final count of all timely filed protests.
In the event that the volume of protests received prior to the closure of the public hearing makes it infeasible for staff to provide a final count on the spot, staff may recommend that Council either recess to allow completion of the count, or adjourn the item to a future date certain. In the event that the number of protests received is sufficiently close to the majority threshold to warrant complete validation, the City Clerk will recommend that the Council adjourn the item to a future date certain, and arrange to conduct public validation proceedings in the interim. In the event the number of protests receives does not approach the majority threshold, the City Clerk will determine that no validation is warranted and recommend that the Council proceed in considering staff's recommendation to adopt a Resolution establishing the new rates.
Effective Date of New Rates: The proposed date of the amended rates would be effective on or around January 1, 2024.
Conclusion and Recommendation
Staff recommends that the Council:
1. Hold a public hearing; receive input and written protests, if any, from the public on the proposed changes to water and wastewater rates; and If protests are received for less than a majority of eligible parcels:
2. Adopt a Resolution (Attachment 1) adopting new water and wastewater fees for fiscal years 2024 through 2028, effective on January 1, 2024.
FISCAL IMPACT:
The fiscal impact of approving the proposed water rate schedule is additional revenues above the current rate revenue received, ranging from $56,421 to $790,796 from FY 2024 to FY 2028, to support the Water Enterprise Fund and related critical capital improvement projects, Central Coast Blue, the cost of State and Lopez water, maintaining water operations, supporting reserves, and ensuring adequate debt service coverage ratios.
The fiscal impact of approving the proposed wastewater rate schedule is additional revenues above the current rate revenue received ranging from $128,325 to $1,523,474 from FY 2024 to FY 2028 to support the Wastewater Enterprise Fund and related critical capital improvement projects, Central Coast Blue, maintaining wastewater operations, building reserves, and ensuring adequate debt service coverage ratios.
11.A-4Council Agenda 10-17-2023
ALTERNATIVES:
1. Do not adopt the resolution.
2. Provide alternate direction to staff or request additional information.
ATTACHMENTS:
1. Resolution for Water and Wastewater Rates
1.A. Exhibit A to Resolution: Water Rate Schedule for FY 2024—FY 2028
1.B. Exhibit B to Resolution: Wastewater Rate Schedule for FY 2024—FY 2028
2. Notice of Public Hearing – Proposition 218 Notice
Submitted by: Meeting Date: October 17, 2023
Nadia Feeser, Administrative Services Director
City Manager Approval:
11.A-5Council Agenda 10-17-2023
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA ADOPTING NEW WATER AND WASTEWATER FEES FOR FISCAL YEARS 2024 THROUGH 2028, EFFECTIVE ON JANUARY 1, 2024
WHEREAS, on August 3, 2023, the Council reviewed information about the proposed water and wastewater fees and provided direction to staff regarding the proposed fees; and
WHEREAS, on August 15, 2023, the Council reviewed information about the proposed water and wastewater rates, adopted a Resolution (R-2023-062) to approve the proposed schedules; directed staff to issue Proposition 218 notices to all residents and rate payers; directed staff to schedule a Public Hearing on the adoption of the rates for October 17, 2023; and adopted the City of Pismo Beach Water and Wastewater Rate Study; and WHEREAS, on August 28, 2023, to comply with Proposition 218 requirements, staff notified property owners and rate payers of the proposed rates with a Public Notice; and WHEREAS, on September 27, 2023, City staff held two public workshops to receive feedback on the proposed rate structure; and
WHEREAS, the City collected written protests of the proposed water and/or wastewater rates up to and including the Council's public hearing of the matter; and WHEREAS, on October 17, 2023, the Council held a duly-noticed public hearing at which all interested parties were given the opportunity to be heard and to submit any additional written protests of the new water and wastewater rates; and WHEREAS, at the conclusion of the public hearing, it was staff's determination that protests had been received for less than a majority of eligible parcels on both the new water and wastewater rates; and
WHEREAS, the water and wastewater fees will support providing clean, safe, and reliable drinking water; protecting public health and the environment with proper wastewater treatment; creating a brand new drought resistant water supply; and maintaining sustainable water and wastewater systems.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
1. Fee Schedule Adoption. The City Council approves and adopts the additions to the existing fee schedule set forth in Exhibit A (Water Rates for FY 2024 through FY 2028) and Exhibit B (Wastewater Rates for FY 2024 through FY 2028) to this Resolution, effective January 1, 2024. The revenues generated from water rates would be collected in the Water Enterprise Fund. The revenues generated from wastewater rates would be collected in the Wastewater Enterprise Fund. The City Attachment 1
11.A-6Council Agenda 10-17-2023
Council specifically finds that the fees adopted are reasonable and do not exceed the cost of providing the service.
2. Collection and Listing of Fees. Exhibit A and Exhibit B schedule of rates and charges are hereby directed to be computed by and applied by the various City departments, and to be collected by the City Administrative Services Department for the herein listed special services when provided by the City or its designated contractors. The fees listed in in Exhibit A and Exhibit B shall be charged and collected for the enumerated services.
3. Separate Fee for Each Process. All fees set forth by this resolution are for each identified process; additional fees shall be required for each additional process or service that is requested or required. Where fees are indicated on a per-unit of measurement basis the fee is for each identified unit or portion thereof within the indicated ranges of such units.
4. Added Fees and Refunds. Where additional fees need to be charged and collected for completed staff work, or where a refund of excess deposited monies is due, and where such charge or refund is ten dollars ($10.00) or less, a charge or refund need not be made.
5. Constitutionality. If any portion of this resolution is declared invalid or unconstitutional then it is the intention of the City Council to have passed the entire Resolution and all its component parts, and all other sections of this resolution shall remain in full force and effect.
6. Copy Available to Public. A copy of Exhibit A and Exhibit B shall be maintained in the Administrative Services Department Office and in the City Clerk’s files for review by the public during business hours.
7. Effective Date. The revisions to the fee schedule set forth in this Resolution shall go into full force and effect on January 1, 2024.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 17th day of October 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Attachment 1
11.A-7Council Agenda 10-17-2023
Water Rates for FY 2024 through FY 2028
Current and Proposed Water Fixed and Variable Charges
Current Proposed
Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Meter Size Water Meter Fixed Charge ($ per bi-month)
5/8"$38.24 $39.38 $40.60 $41.86 $43.16 $44.50
3/4" $38.24 $39.38 $40.61 $41.87 $43.17 $44.51
1"$58.36 $63.18 $65.15 $67.17 $69.26 $71.41
1.5"$108.01 $122.44 $126.24 $130.16 $134.20 $138.37
2"$168.72 $194.00 $200.02 $206.23 $212.63 $219.23
3"$340.10 $388.61 $400.66 $413.09 $425.90 $439.11
4"$521.67 $603.08 $621.78 $641.06 $660.94 $681.43
6"$1,219.31 $1,433.71 $1,478.16 $1,523.99 $1,571.24 $1,619.95 Variable Charge ($ per HCF)
Current Proposed
Classification Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Single Family Variable Charge ($ per HCF)
Tier 1 - 0 to 10 units $5.58 $6.02 $6.21 $6.41 $6.61 $6.82 Tier 2 - 11 to 16 units $6.36 $6.72 $6.94 $7.16 $7.39 $7.62 Tier 3 - 17 to 32 units $7.29 $8.14 $8.39 $8.66 $8.93 $9.21 Tier 4 - Over 32 units $9.76 $11.21 $11.56 $11.92 $12.29 $12.68 Multifamily $6.48 $6.79 $7.01 $7.23 $7.46 $7.70
Mobile Home $6.58 $6.79 $7.01 $7.23 $7.46 $7.70
Commercial [1]$8.07 $7.18 $7.40 $7.63 $7.87 $8.12
Irrigation [1]$7.14 $7.24 $7.47 $7.71 $7.95 $8.20
Construction $8.23 $6.58 $6.79 $7.01 $7.23 $7.46
[1] Includes Municipal customers.
Attachment 1.A
11.A-8Council Agenda 10-17-2023
Wastewater Rates for FY 2024 through FY 2028
Current and Proposed Wastewater Fixed and Variable Charges Fixed Charges by Meter Size
Current Proposed
Meter Size Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 inches Fixed Charge ($ per bi-month)
5/8"$31.22 $32.28 $34.21 $36.30 $38.51 $40.86
3/4" 44.95 46.23 49.00 51.99 55.16 58.53
1"72.40 74.15 78.58 83.37 88.46 93.86
1.5"141.03 143.92 152.53 161.83 171.71 182.18
2"223.38 227.66 241.26 255.98 271.59 288.16
3"442.99 450.95 477.89 507.04 537.97 570.79
4"690.04 702.15 744.10 789.49 837.65 888.75
6"$1,650.82 $1,679.05 $1,779.36 $1,887.90 $2,003.06 $2,125.25 Residential Fixed Consumption Charges
Current Proposed
Classification Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge ($ per bi-month)
Single-family [2]$74.01 $77.27 $82.02 $87.02 $92.33 $97.96 Apartments/Multifamily [2] [3] 46.72 48.78 51.78 54.94 58.29 61.85 Mobile Homes [2] [3] $32.38 $33.80 $35.88 $38.07 $40.39 $42.85 Variable Rates
Current Proposed
Classification Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Variable Charge ($ per HCF)
Commercial $9.06 $9.83 $10.43 $11.07 $11.74 $12.46
Dual Residential/Restaurant 12.78 13.53 14.36 15.24 16.17 17.15 Dual Residential/Commercial 8.75 9.25 9.82 10.42 11.05 11.73 Grocery 16.22 17.76 18.86 20.01 21.23 22.53
Hotel 7.51 8.18 8.69 9.22 9.78 10.38
Hotel w/Restaurant 12.19 17.31 18.38 19.50 20.69 21.95
School w/ Cafeteria 7.47 8.27 8.78 9.32 9.88 10.49
School 4.80 5.11 5.43 5.76 6.11 6.49
Shopping Center 6.50 7.36 7.81 8.29 8.79 9.33
Shopping Center w/ Restaurant 15.76 17.31 18.38 19.50 20.69 21.95 Trailer/RV 4.06 4.37 4.64 4.92 5.22 5.54
Service Station 7.26 7.47 7.93 8.41 8.93 9.47
Restaurant / Bakery 16.33 18.63 19.78 20.99 22.27 23.63 Municipal $6.31 $6.91 $7.34 $7.79 $8.26 $8.77
[2] Residential customers are charged a fixed charge per bi-month for consumption. [3] Apartments, Multifamily, and Mobile Homes are charged by the dwelling unit.
Attachment 1.B
11.A-9Council Agenda 10-17-2023
City of Pismo Beach
NoƟce of Public Hearing - Water and Wastewater Rates 1
CityofPismoBeach
NoƟceofPublicHearing
ProposedRateIncreaseforWater andWastewater Services Whyarewaterandwastewaterrateschanging?
The proposed fees are increased to fund criƟcal water and wastewater infrastructure improvements (see page 2 for details), support Central Coast Blue, and support increased operaƟng expenses. The proposed rates are scheduled to increase as shown on pages 2 and 3 of this public noƟce eīecƟve January 1, 2024 and annually on January 1, of 2025 through 2028. Water and wastewater rates will apply to all parcels within the City that have water and/or wastewater service.
PublicHearing
The Pismo Beach City Council will hold a Public Hearing on the proposed increases to water and wastewater (sewer) rates. The Public Hearing will be held at the following Ɵme and place:
Date: Tuesday,October17,2023
Time: 6:00 p.m.
Place: Pismo Beach City Hall, Council Chamber
760 Maƫe Road, Pismo Beach, CA 93449
The Public Hearing will cover the proposed rate increases (January 2024 through January 2028) for water and wastewater services. This noƟce is provided to all property owners and customers who currently receive either of these services provided by the City of Pismo Beach. If adopted, the proposed rate increases will become eīecƟve January 1, 2024 and will be reŇected on the January and February 2024 bills. All interested persons are invited to appear at the Ɵme and place speciĮed to give oral or wriƩen tesƟmony, as well as wriƩen protests, regarding the proposed fees.
WhatistheimpactonatypicalSingle-FamilyResidenƟalcustomer? Your u Ɵlity bill is determined by the type of residence or business you have, the water meter size at your address, and your water consumpƟon. The average Single-Family ResidenƟal home consumes 14 hundred cubic feet (HCF) of water over the two-month billing cycle. (1 HCF = approximately 748 gallons) The following table assumes a typical Single-Family ResidenƟal home with a ¾-inch meter consuming 14 HCF of water (over a two-month period), and illustrates the dollar and percent increase over the prior year.
TypicalSingle-FamilyResidenƟal*UƟlityBillImpact
*For more informaƟon and to compare your current bill with the proposed January and February 2024 bill, please visit www.pismobeach.org/ratechanges .
Attachment 2
11.A-10Council Agenda 10-17-2023
City of Pismo Beach
NoƟce of Public Hearing - Water and Wastewater Rates 2
WATER:CurrentandProposedBi-MonthlyFixedRates
Current Proposed
Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Meter Size Water Meter Fixed Charge ($ per bi-month)
5/8"$38.24 $39.38 $40.60 $41.86 $43.16 $44.50
3/4" $38.24 $39.38 $40.61 $41.87 $43.17 $44.51
1"$58.36 $63.18 $65.15 $67.17 $69.26 $71.41
1.5"$108.01 $122.44 $126.24 $130.16 $134.20 $138.37
2"$168.72 $194.00 $200.02 $206.23 $212.63 $219.23
3"$340.10 $388.61 $400.66 $413.09 $425.90 $439.11
4"$521.67 $603.08 $621.78 $641.06 $660.94 $681.43
6"$1,219.31 $1,433.71 $1,478.16 $1,523.99 $1,571.24 $1,619.95 WhatDoesMyUƟlityBillPayFor?
Clean,Safe,andReliableDrinkingWater
The City is commiƩed to maintaining sustainable, reliable, and cost-eīecƟve water and wastewater systems. The City’s water quality is tested weekly and all water quality standards are met. Read about how the City’s water system met all federal and state drinking water standards in the City’s 2022 water quality report at www.pismobeach.org/waterquality .
In order to maintain this water quality, several capital projects are proposed to be supported by your water payments, including the: New ProducƟon Well; Advanced Metering Infrastructure; Bello Reservoir Roof Replacement, Charles Street Reservoir Replacement; and Bello-Price/Highway 101 Waterline Upgrade.
ProtecƟngPublicHealthandtheEnvironmentwithCity’sWastewaterTreatmentPlant The City’s wastewater quality is excepƟonal, far exceeding the standards established by the California State Regional Water Quality Control Board. In order to meet federal and state laws and regulatory requirements, several capital projects are proposed to be supported by your wastewater payments, including the: Advanced Metering Infrastructure; Wastewater Maintenance and Improvement; and Harloe LiŌ StaƟon Bluī StabilizaƟon.
NewDrought-ResistantWater Supply:CentralCoastBlueforWater Sustainability Central Coast Blue is a regional water sustainability project that will create a new, high-quality, and drought-resistant water supply for Pismo Beach, Grover Beach, and Arroyo Grande. These communiƟes are designing and building a new advanced water puriĮcaƟon facility to create a high-quality water source to supplement local groundwater supplies, with Pismo Beach serving as the lead agency. This project allows these communiƟes to have suĸcient water supplies even in Ɵmes of drought.
The project includes construcƟon of an Advanced Treatment Facility to treat water from the City of Pismo Beach's Wastewater Treatment Plant (WWTP) to produce puriĮed water that is purer than most boƩled water. The puriĮed water will be injected into the groundwater basin to supplement the natural groundwater supply and to create a seawater intrusion barrier.
Central Coast Blue will enhance local supply reliability and help protect the community from droughts by diversifying supply sources and keeping communiƟes from becoming too reliant on any one source of water. This project also reduces the amount of treated eŋuent released by Pismo Beach’s WWTP into the ocean by 74%. For more informaƟon, visit www.centralcoastblue.com .
MaintainingSustainableWaterandWastewater Systems
Water and wastewater rates support the overall Įnancial plans for water and wastewater. These Įnancial plans account for increasing operaƟng expenses, including support for rising personnel costs, electricity, chemicals, and purchased water (State Water and Lopez Lake water). The Įnancial plans also include ensuring adequate reserves and debt service coverage raƟos.
Attachment 2Attachment 1.AAttachment 1.A
11.A-11Council Agenda 10-17-2023
City of Pismo Beach
NoƟce of Public Hearing - Water and Wastewater Rates 3
WATER:CurrentandProposedVariable Rates
WASTEWATER:CurrentandProposedFixedRates
WASTEWATER:CurrentandProposedVariable Rates
Current Proposed
Classification Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Single Family Variable Charge ($ per HCF)
Tier 1 - 0 to 10 units $5.58 $6.02 $6.21 $6.41 $6.61 $6.82 Tier 2 - 11 to 16 units $6.36 $6.72 $6.94 $7.16 $7.39 $7.62 Tier 3 - 17 to 32 units $7.29 $8.14 $8.39 $8.66 $8.93 $9.21 Tier 4 - Over 32 units $9.76 $11.21 $11.56 $11.92 $12.29 $12.68 Multifamily $6.48 $6.79 $7.01 $7.23 $7.46 $7.70
Mobile Home $6.58 $6.79 $7.01 $7.23 $7.46 $7.70
Commercial [1]$8.07 $7.18 $7.40 $7.63 $7.87 $8.12
Irrigation [1]$7.14 $7.24 $7.47 $7.71 $7.95 $8.20
Construction $8.23 $6.58 $6.79 $7.01 $7.23 $7.46
[1] Includes Municipal customers.
Fixed Charges by Meter Size
Current Proposed
Meter Size Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 inches Fixed Charge ($ per bi-month)
5/8"$31.22 $32.28 $34.21 $36.30 $38.51 $40.86
3/4" 44.95 46.23 49.00 51.99 55.16 58.53
1"72.40 74.15 78.58 83.37 88.46 93.86
1.5"141.03 143.92 152.53 161.83 171.71 182.18
2"223.38 227.66 241.26 255.98 271.59 288.16
3"442.99 450.95 477.89 507.04 537.97 570.79
4"690.04 702.15 744.10 789.49 837.65 888.75
6"$1,650.82 $1,679.05 $1,779.36 $1,887.90 $2,003.06 $2,125.25 Residential Fixed Consumption Charges
Current Proposed
Classification Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge ($ per bi-month)
Single-family [2]$74.01 $77.27 $82.02 $87.02 $92.33 $97.96 Apartments/Multifamily [2] [3] 46.72 48.78 51.78 54.94 58.29 61.85 Mobile Homes [2] [3] $32.38 $33.80 $35.88 $38.07 $40.39 $42.85 Current Proposed
Classification Jan 1, 2023 Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Variable Charge ($ per HCF)
Commercial $9.06 $9.83 $10.43 $11.07 $11.74 $12.46
Dual Residential/Restaurant 12.78 13.53 14.36 15.24 16.17 17.15 Dual Residential/Commercial 8.75 9.25 9.82 10.42 11.05 11.73 Grocery 16.22 17.76 18.86 20.01 21.23 22.53
Hotel 7.51 8.18 8.69 9.22 9.78 10.38
Hotel w/Restaurant 12.19 17.31 18.38 19.50 20.69 21.95
School w/ Cafeteria 7.47 8.27 8.78 9.32 9.88 10.49
School 4.80 5.11 5.43 5.76 6.11 6.49
Shopping Center 6.50 7.36 7.81 8.29 8.79 9.33
Shopping Center w/ Restaurant 15.76 17.31 18.38 19.50 20.69 21.95 Trailer/RV 4.06 4.37 4.64 4.92 5.22 5.54
Service Station 7.26 7.47 7.93 8.41 8.93 9.47
Restaurant / Bakery 16.33 18.63 19.78 20.99 22.27 23.63 Municipal $6.31 $6.91 $7.34 $7.79 $8.26 $8.77
[2] Residential customers are charged a fixed charge per bi-month for consumption. [3] Apartments, Multifamily, and Mobile Homes are charged by the dwelling unit.
Certain non-residential sewer users are charged a higher rate for wastewater service due to the “strength” of the wastewater they deposit into the system.
Attachment 2
11.A-12Council Agenda 10-17-2023
City of Pismo Beach
NoƟce of Public Hearing - Water and Wastewater Rates 4
City of Pismo Beach
760 Maƫe Road
Pismo Beach, CA 93449
Owner/Name
Address In Care Of
Address 1
Address 2
City, State, Zip
HowDoIProtesttheProposedWater and/orWastewater Rates? Under ProposiƟon 218, if you are the owner of record for a parcel or parcels or a tenant directly liable for payment of the fees subject to the proposed rate changes, you may submit a wriƩen protest against each proposed rate increase (water, wastewater). If valid wriƩen protests are Įled for a majority (50% plus one) of the aīected parcels, the applicable proposed rate change will not be imposed. Only one protest per parcel will be counted. All protests must:
1. Be in wriƟng and received by the City Clerk before or during the public hearing on October 17, 2023 at 6:00 p.m.
Protests must either be mailed or personally delivered to the City Clerk at 760 Maƫe Road, Pismo Beach, CA 93449.
Email or facsimile protests will not be accepted. Protests will not be accepted aŌer the closure of the public hearing.
2. SpeciĮcally idenƟfy what you are protesƟng: the water and/or wastewater rate increase(s).
3. IdenƟfy the aīected parcel by the service address and/or Assessor's Parcel Number (APN).
4. Include the name and original (wet) signature of either the account holder or the property owner of the service address.
All interested persons are invited to appear at the Ɵme and place speciĮed to give oral or wriƩen tesƟmony in regard to this maƩer. At the public hearing, the City Council will accept oral and wriƩen tesƟmony, as well as wriƩen protests, regarding the proposed fees.
HowCanIFindOutMoreAbouttheProposedChanges?
To Įnd out more about the proposed changes and how they will aīect your bill, please visit the City’s website at www.pismobeach.org/ratechanges . This site has detailed reports, the rate study, presentaƟons, and sample bills to help determine the impact of the changes. For addiƟonal quesƟons, please call the AdministraƟve Services Department at 805.773.4655.
In addiƟon, City staī will hold two informaƟonal community meeƟngs for the public on September 27, 2023 at Pismo Beach City Hall, Council Chamber, 760 Maƫe Road, Pismo Beach, CA 93449. The Įrst meeƟng is at 4:00 p.m. for non- residenƟal customers and the second meeƟng is at 6:00 p.m. for residenƟal customers.
Water andWastewater RateDevelopmentProcess
The City hired a consultant to perform studies of the City’s water and wastewater funds, and to recommend user rates designed to meet the City’s Įnancial obligaƟons, including operaƟng and debt service costs, and funds for needed capital projects. 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 August 15, 2023, City staī and the consultant presented the report on these studies, including 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 October 17, 2023. Two public community meeƟngs will be held on September 27, 2023 at Pismo Beach City Hall, 760 Maƫe Road, Pismo Beach, CA 93449.
If a majority protest has not been received by the end of the October 17, 2023 Public Hearing, and the City Council approves the new Water and Wastewater Service Rates as shown in the Rate Schedules shown on pages 2 and 3, the proposed rate increases will Įrst appear on uƟlity bills issued on the January and February 2024 bills.
Attachment 2
11.A-13Council Agenda 10-17-2023