The North Marin Water District board approved modest increases for West Marin water rates with little fanfare on Tuesday, but a bigger jump in sewer rates for part of Dillon Beach prompted protests and an incremental schedule for the change.
The hikes are meant to help fund major capital projects to improve the systems, and more annual increases are to come in the foreseeable future.
The water rate boost in Point Reyes Station, Olema and Paradise Ranch Estates—where bills will rise $32 per year for the average customer, bringing the district an estimated $40,000 extra annually—is meant to help fund significant capital needs: the district has $5.7 million worth of system improvements that it hopes to undertake in the next five years.
“That’s a very aggressive schedule,” David Bentley, the district’s chief financial officer, said at a public hearing at the Dance Palace Church Space.
In the upcoming fiscal year, the most expensive project will be the replacement of a water tank in Paradise Ranch Estates that burned over two decades ago in the Mount Vision Fire, which will cost $450,000 this year and $525,000 total. Other projects planned for this year include the replacement of filters at the Point Reyes Station treatment plant at a cost of $75,000 and the first phase of construction of a $300,000 second well on the Gallagher Ranch. The new well is a follow up to a $3 million well built in 2014; both are meant to curb the district’s use of old wells at its Coast Guard site when they suffer from salinity intrusion.
In the next five years, the district has even bigger plans, such as a $1.2 million solids-handling facility at the West Marin treatment plant, with construction starting in 2018. These days, after sediment, iron and manganese are filtered through green sand inside repurposed brewery tanks, the residue is simply discharged to the land. To better dispose of it, the district wants more tanks so the material can settle and be disposed of offsite.
North Marin also wants to make improvements to the plant itself, which was built in the ‘60s and ‘70s, in 2020. That project was last estimated to cost $2.8 million.
According to Mr. Bentley, the district is hoping to find grant funding for the improvements.
That’s not surprising, since the capital projects would amount to $3.4 million of debt. “That’s a legitimate concern. That’s a lot of debt for 779 customers,” he said, though he added that the projects have been repeatedly pushed back in years past because of the financial concerns.
Drew McIntyre, the district’s water engineer, said that the costs for the expensive treatment plant improvements could come down if the district acquired more room at the treatment facility—which they believe is possible after the federal government sells the Coast Guard property to the county, per federal legislation. A large part of the expense arises from the logistics of fitting the project into a “postage-stamp sized facility.”
The district general manager, Chris DeGabriele, also said that price estimate was many years old. He added that, of all the projects planned for the next five years, the plant improvements were the most likely to be delayed, given the costs.
While the water-service price bump received little pushback—only one person sent a brief letter of protest—the district fielded more frustration over big sewer-charge increases in Oceana Marin, a neighborhood largely made up of second homes in Dillon Beach.
The district proposed a 10 percent increase on the average sewer customer, which would cost about $84 extra in the coming year, with additional 10 percent increases in future years. It also proposed doubling the fee for new connections from $15,000 to $30,000.
Those jumps stem from estimates made by an engineering firm hired to help update the sewer system’s master plan. The firm said the system needs $3.1 million in capital improvements—a huge potential outlay for just 231 customers.
But even a 10 percent increase will only bring about $20,000 extra next year, a modest amount considering the scale of improvements. Though Mr. DeGabriele said it would be difficult to secure grants for a neighborhood of second homes, board director Dennis Rodoni suggested that its proximity to the coast could help a grant application, since a sewer system failure near the ocean could have dire consequences.
Though the district said it had attempted to reach out to property owners, a recent notice to owners of undeveloped parcels spurred concerned phone calls about the dramatic increase in connection fees.
One couple, Michael and Sarah McCall, said the hikes could make or break their home plans. “A decision tonight would convince us whether to pull out or not,” said Mr. McCall, who relocated with his wife to West Marin from Southern California with dreams of leaving behind apartment living for their own home.
He said they had already been slammed with huge fee increases for their home project. After moving north, their contractor increased the estimated price to build the home by $200,000, he said. “We’re starting to feel like regular people like us aren’t wanted in places like this. We wiped out our savings. We’re not rich people. We’re hard-working people.”
The board originally considered delaying the fee for 60 days by allowing those who apply for permits by Sept. 1 to pay the old fee. But after Mr. McCall said that timeframe was too tight, the board decided to delay implementation of the new connection fee until Oct. 15. Per a suggestion from Mr. Rodoni, who is running for county supervisor, the fee will also be spread out over two years.
“We want you here,” board member Stephen Petterle told the couple.
Mr. McCall was clearly frustrated by the vast expense of building in Marin, but as he left the meeting, he was grateful for at least a little respite. “I’m glad I came,” he said.