Thousand Oaks City Council
November 4, 2025

1 11/4/2025
Water and Wastewater Rates Public HearingNovember 4, 2025Tara Tosatto, Budget Officer

1. Purpose of the Public Hearing and Proposition 218 process2. Water Rates and Fees Ordinance3. Wastewater Rates and Fees Ordinance4. Key Municipal Code amendments5. Implementation schedule and next stepsOverview:1 2 2
11/4/2025
WATER•Serves 17,000 potable water customers; ~50,000 residents•100% imported waterKEY INVESTMENTS:•Citywide Advanced Metering Infrastructure (AMI) Project•Mainline replacement and valve rehabilitation program•Pump station and reservoir hardening and emergency power for wildfire resilienceUtilities at a Glance3WASTEWATER•Serves 38,000 wastewater customers; ~110,000 residentsKEY INVESTMENTS:•Ongoing pipeline rehabilitation and trenchless lining projects•Lift station modernization and backup power for emergency operations•Proactive maintenance and replacement of key infrastructure at HCTP •Inflation (higher costs to purchase water, energy, chemicals, supplies)•Capital Improvement Projects (CIP) to upgrade and rehabilitate systems•Proactive Infrastructure maintenance to prevent costly failures and protect the community•State law requires fair cost of service rates•Rates must reflect the true cost of serviceWhy Rate Adjustments are necessary4 3 4
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Water
20272026$0.60 per HCF$0.42 per HCFIncremental Pass-Through$1.02 per HCF$0.42 per HCFCumulative Pass-Through+ Pass-Through Water Purchase Cost6Water Rate Increase202720265%5%Water Rate Increase5 6 4
11/4/2025
Monthly Water Rates7Proposed Fixed Meter ChargesJanuary2027January 2026CurrentMeter Type$31.34 $29.84 $28.41 3/4-inch meter and smaller$49.09 $46.75 $44.52 1-inch meter$93.50 $89.04 $84.80 1.5-inch meter$146.79 $139.80 $133.14 2-inch meter$315.54 $300.51 $286.20 3-inch meter$564.22 $537.35 $511.76 4-inch meter$1,159.28 $1,104.07 $1,051.49 6-inch meterProposed Single-Family Residential Commodity Rates20272026CurrentTier$8.10 $7.16 $6.41 Tier 1: 0-12 HCF $8.76 $7.79 $7.01 Tier 2: 13-30 HCF$9.14 $8.15 $7.36 Tier 3: 31+ HCFProposed Uniform Commodity Rates20272026Current$8.50 $7.54 $6.78 Multi-Family Commercial$8.50 $7.54 $6.78 Non-Residential& Groundwater$9.14 $8.15 $7.36 Construction Water*89.4% of customers are residential with ¾” meter Pumping Lift Charge
820272026Current Rate% of CustomersZone$0$0$033%Zone P1 (0 Lifts)$0.51$0.48$0.4529%Zone P2 (1 Lifts)$0.51$0.48$0.4520%Zone P3 (1 Lifts)$1.02$0.96$0.90Approx.17%Zone P4 (2 Lifts)$1.53$1.44$1.35Less than 1%Zone P5 (3 Lifts)7 8 5
11/4/2025
Private Fire Line Charges
920272026Current MonthlyFire Line Size (inches)$2.68$2.55$2.422”$16.37$15.59$14.844”$47.51$45.24$43.086”$101.19$96.37$91.788”$293.89$279.89$266.5612”•Provide dedicated water supply for fire sprinklers and suppression systems•Charges based on pipe diameter to reflect capacity and system readiness •The estimates below are based on a standard ¾" meter, no pumping lift and includes wholesale pass-through.Total Estimated Monthly Water Charges in 202610 9 10
6 11/4/2025•The estimates below are based on a standard ¾" meter, no pumping lift and includes wholesale pass-through.Monthly Water Service Charge Comparison 11 •Customer conservation during drought = lower water sales/revenue•Fixed system costs remain same (staffing, pipeline maintenance, etc)•Revenue loss without a safeguard threatens financial stability•Drought rates help protect the city utility during these periodsPurpose of Drought Rates 1211
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11/4/2025
•Temp. surcharge on water use charges only•Calculated to recover revenue lost when conservation lowers sales•Adoption now = ability to use in the future•Implemented only if City Council chooses•Requires a formally declared drought stage•Customers get > 30 days’ advance noticeDrought Rates1320272026Water Shortage StageN/AN/AStage 1 (0-10% Shortage)$0.54$0.47Stage 2 (11-20% Shortage)$1.07$0.94Stage 3 (21-30% Shortage)$1.76$1.55Stage 4 (31-40% Shortage)$2.68$2.35Stage 5 (41-50% Shortage)$6.01$5.28Stage 6 (>50% Shortage) Wastewater13
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11/4/2025•7% average annual rate increases, effective July 1, 2026 & July 1,2027•Adjustments vary by customer type based on flow and wastewater strength•Ensures fair, cost-based rates and provides funding for maintenance of critical city wastewater infrastructure/pipelines + Hill Canyon upgradesWastewater Rate Increase15 Wastewater Rates by Customer Types16% DifferenceService Unit Charge 2027Service Unit Charge2026Service Unit ChargeCurrentNew Flow/Strength FactorERC DefinitionCustomer Class9.5%$45.89$42.88 $39.17 100%1 dwelling unitSingle-Family Residential12.4%$36.71$34.30 $39.17 80%1 dwelling unitMulti-Family Residential9.5%$45.89$42.88 $39.17 100%20 fixture unitsGeneral Commercial (Offices/Retail/All Other)2.4%$78.01$72.90 $71.29 170%20 fixture unitsMarkets/Mortuaries3.3%$78.47$73.32 $70.89 171%20 fixture unitsRestaurants/Bakeries8.0%$45.89$42.88 $46.61 100%20 fixture unitsRestaurants (w/Grease Trap)30.9%$29.37$27.44 $20.95 64%20 fixture unitsSchools22.7%$45.89$42.88$39.1762%180 150gallons per dayIndustrial/High Flow23.6%$45.89$42.88$39.1767%180 150gallons per dayCar Washes30.9%$0.78$0.72$0.55N/Aper Service UnitOutside City Surcharge 15 16
9 11/4/2025Monthly Wastewater Rate Comparison 17
Utility Assistance Program
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•Water estimated discount based on low water use (10 HCF) is ~10%•Wastewater discount is 11.7%•Eligibility: •Must be enrolled in CARE via SCE or SCG•Must be a residential customer, using the property as your primary home.•Accounts and CARE must match.•Limit on number of enrollees.Utility Assistance Program19WastewaterWater$60/year$5/month$120/year$10/month Thousand Oaks Municipal Code (TOMC) Updates19
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11/4/2025
21•Establishes administrative penalties for unauthorized water use, diversion, or tampering•Protects the City’s investment in new AMI water meter infrastructure•Prevents theft losses from being passed on to ratepayersOther Water TheftMeter TamperingViolation Number$700$1301st$2,000$1,0002nd$3,000$1,3003rd+Water Theft Administrative PenaltiesProtecting the City’s Water System and Ratepayers Water Meter Installation Fees22Fee TypeAmountMeter SizeFlat Fee$6005/8" x 3/4" or 3/4" M25 DiscFlat Fee$680¾” Fire-Rated & E-SeriesFlat Fee$7001" E-SeriesFlat Fee$7801” Fire-Rated Deposit$1,5001-1/2"Deposit$1,8002"Deposit$2,0003"Deposit$3,5004"•Applies only to new metered connections•Fees are based on time and materials•Moves fees from uncodified ordinance to Council resolution•Improves consistency and prepares for inclusion in the User Fee Manual 21 22
12 11/4/2025Water and Wastewater Billing Update23• Removes fixed, prescriptive notice timelines for delinquent accounts• Complies with Water Shutoff Protection Act (SB 998) Current SB998 policy is available online at www.toaks.gov/waterbilling Establishes a Three-Year Limit•Applies to both back-billing and refunds•Reflects the City’s current practice•Ensures fairness and consistency as customers pay only for what they use•Aligns with industry best practices for municipal utilities•Excludes cases involving fraud, tampering, or unauthorized useBack-Billing and Refund Limit 2423
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11/4/2025
Utility Bill Appeal Process•Formalizes a step-by-step appeal process for disputed charges•Moves from policy into Municipal Code for transparency•Ensures clear timelines, accountability, and due process•Ensures fairness, consistency, and customer protection 25 1. Conduct Public Hearings for the proposed Water and Wastewater rate ordinances.2. Receive report from City Clerk on Prop 218 protests3. Adopt TOMC updates4. Adopt Resolution for Water Theft and Tampering Penalties5. Adopt Resolution for Water Meter Installation User FeesRecommendations25 26