North Marin Water District plans to raise rates for West Marin customers on July 1, the second annual hike in a multi-year plan to raise funds for major system improvements. The $32- per-year increase for median customers is the same amount as last year’s raise, though the district says users may see even slightly higher bills this year due to higher water consumption.
A public hearing on the rate change will take place on June 27 at the Dance Palace.
Since North Marin’s rates in Point Reyes Station, Olema and Paradise Ranch Estates are relatively low—the median annual consumption for single-family homes is consistent with rates in Inverness and Bodega Bay, at $676, and much lower than the median $1,210 for Bolinas residents—the district does not expect much dispute. (Before last year’s rate increase, just one customer sent a brief letter of protest.)
“Aging infrastructure is common across the U.S., and our water system is not immune to that,” said Drew McIntyre, who took over as the district’s general manager this month. “However, we believe that having minimal rate increases helps reduce huge spikes in the future. We like to make our full plan public so customers know why the increases are not just for one year, but rather for multiple-year periods.”
The increases, which are consistent with previous projections for a five percent annual increase through 2022, are expected to bring an extra $40,000 annually. That revenue is meant to help fund significant system improvements, including the construction of wells and a solids-handling facility, along with upgrades to the Point Reyes Station treatment plant.
Some improvements are already underway. With funds generated by last year’s rate increase, the district replaced one filter at the treatment plant, at a cost of $75,000. The district plans to replace another filter for the same price in 2019.
The most expensive project underway is the replacement of a water tank in Paradise Ranch Estates that burned over two decades ago in the Mount Vision Fire. The project was originally estimated to cost $525,000, but is now projected to cost $650,000.
According to David Bentley, the district’s chief financial officer, the price estimate changed once the details of the project were hammered out. And, he said, as the economy picks up, contractors have more work and won’t come down as easily on bids.
The project, currently in the design phase, will likely be finished by June 2018. “We’re especially anxious to be moving forward with the Paradise Ranch Estate tank, as we’ve been talking about that one for a while,” Mr. McIntyre said.
In order “to maintain financial stability” for the ongoing projects, the time frame and budget for other proposals have been adjusted. For instance, the construction of a $300,000 second well on the Gallagher Ranch was postponed a year. That project is meant to curb the district’s use of old wells at its Coast Guard site when they suffer from salinity intrusion.
Plans for a $1.3 million solids-handling facility—which would provide the district with more tanks so that certain residue materials can settle and be disposed of offsite rather than directly onto the land—now factor in some possible cost-cutting measures.
The water district hopes to lower the cost of the latter project by around 20 percent by expanding an easement on the Coast Guard property. Currently, the district must cross the Coast Guard property to reach a smal parcel of land where it plans to build the facility. An expanded easement would lower construction costs, Mr. McIntyre said, allowing the district better access to the paved road.
According to the financial plan for the upcoming year, the district believes it will still likely need to borrow around $600,000 to fund construction of the handling facility.
Finally, further improvements to the treatment plant itself, which was built in the ‘60s and ‘70s, have been pushed back a year to 2021. Those upgrades are estimated to cost a whopping $2.8 million, for which the water district plans to take out a loan.
For now, the district is encouraging customers to consider their overall consumption, as it’s anticipating a 3 percent rise in usage this year. “When the news is about a drought every day, people start conserving,” Mr. Bentley said. “So we expect increases now that the state has declared the crisis to be over.”
For perspective, the projected usage for the year is still almost half the average volume consumed in the first 10 years of this century.