CLEARLAKE OAKS, Calif. – The Clearlake Oaks County Water District will host two upcoming hearings to discuss a proposed ordinance to increase water and sewer rates for customers.
The public hearings will take place at 4 p.m. Thursday, April 16, at Live Oak Senior Center, 12519 Foothill Blvd., and 10 a.m. Friday, April 24, at the district's administrative office, 12952 E. Highway 20.
In addition to the copy of the ordinance that's posted below, a full copy of it may be obtained at the district’s administrative office during regular business hours or on the district’s Web site at www.clocwd.org .
The California Rural Water Association completed a study of the district's current rates, determining that a new water base rate and an increase in current rates was needed to provide sufficient revenue and maintain the district's water and sewer systems, according to the hearing notice.
The proposed ordinance the district board will consider would, if approved, establish a base rate for water and sewer services for all customers with a district connection and institute a tiered water usage rate.
The district proposes to change its billing procedures from one based on active accounts to one that takes into account all service connections, meaning that all customers on the district – whether they use water or not – would have to pay the proposed base rates.
In addition, the ordinance would implement a 3-percent per-year rate increase in 2016, 2017 and 2018, and increase the capital improvement account fee by $2 per year for both water and sewer beginning in July 2016.
Residential customers in tier one would have a base rate of $37.87 and a usage rate of $1.30 per 100 cubic feet for a total monthly bill of $40.47 if they use 200 cubic feet of water – or 1,496 gallons, according to district documents.
Comparatively, the same customer in 2018 would have a base rate of $47.56 and usage rate of $2.84 for a total monthly bill of $50.40.
Additional rate tiers can be viewed in the documents below.
“Annually the board will be reviewing what effects these rates are having,” said district General Manager Matthew Bassett.
If adopted, the new rates would go into effect in this July's billing cycle, according to the district's hearing notice.
While the rates were last raised just three years ago, Bassett said the rates need to go up again in order to support district operations.
He emphasized that district payroll has not gone up, but other expenses have.
The biggest problem, however, is the district's aging infrastructure, which Bassett said dates from the 1960s.
“It’s at the point where it has to be replaced – not just repaired,” Bassett said.
The district also is under a state cleanup and abatement order. “If we don’t address the failing infrastructure then the state will call us out on the violation,” Bassett said.
He said the district already has taken the first steps needed to address the state's requirements, and is now in the middle of a sewer infrastructure study to look at what upgrades are needed.
Bassett said the district received a $381,000 state grant to fund the sewer collection study. In addition, the district is pursuing separate grants and loans from the government to make needed upgrades, including $400,000 in grants for a distribution study and a $1 million grant for new water meters.
To fully fund capital improvements and collect enough to pay the bills, as of this July the district would have had to collect $83 a month each customer for water alone, and about the same for sewer – far above current rates, Bassett said.
However, he said such a raise wouldn't have been realistic, and instead the district board has looked at a slower increase, with the plans to review the rates annually and do a true rate study again in three years.
With the proceeds from the rate increases, the district plans to undertake infrastructure projects including buying and installing a new $1.5 million clarifier for the sewer plant to replace one from the 1960s, Bassett said.
The district has a total of 12 sewer lift stations; Bassett said between eight and 10 of them need to be replaced at a cost of between $150,000 to $200,000 each.
The new lift stations will be made of stainless steel, not cast iron like the current ones, and rather than having to put people down into them for repairs, they'll be on rails and equipment can be lowered down into them, which he said will increase worker safety.
There also is the need to replace many miles of sewer lines – just how many will be determined by the sewer distribution study that's now under way and expected to be finished by fall, Bassett said.
There also will be a complete engineering and review of the sewer plant, where Bassett said they're looking at reducing sludge and heavy metals.
The proposed rate changes are a matter of being proactive about the district's needs and infrastructure, Bassett said.
“We’re not kicking the can down the road,” said Bassett. “It’s at our doorstep. We’ve got to address it.”
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April 2015 - Clearlake Oaks County Water District water and sewer rate ordinance