Understanding the City of Pinole’s Proposed Sewer Rate Increase
The City of Pinole is gearing up for significant changes to its sewer rates, which will impact residents and businesses alike. This move stems from a comprehensive evaluation and strategic planning to ensure the city’s wastewater infrastructure remains functional and efficient. Here’s a detailed look at the key points surrounding this proposal.
Notification and Public Engagement
Residents and business owners have already been notified about the proposed rate changes through mailed notices. On May 21, 2024, the City Council received a draft presentation of the Sewer Rate Study, marking the first step in the public hearing process. To further facilitate public engagement, a workshop is scheduled for July 2, 2024, at 7 PM. This workshop is an opportunity for community members to voice their concerns and ask questions about the proposed rates.
The City of Pinole will host a formal Public Hearing on July 16, 2024, where the proposed rates will be discussed in detail and potentially adopted. Notices regarding this hearing, as required by California’s Proposition 218, have been distributed to all affected parties. Residents are encouraged to review the details sent in the mail and participate in the decision-making process by providing comments or votes.
For those interested, the draft Pinole Sewer Rate Study 2024 is available online for review: DRAFT Pinole Sewer Rate Study 2024.
The Need for Rate Increases
The primary driver behind the proposed sewer rate increase is the need for upgrades to Pinole’s aging sewer collection infrastructure. These upgrades are crucial to address issues of inflow and infiltration (I&I) to the Pinole-Hercules Water Pollution Control Plant.
The city is currently grappling with an estimated $100 million in deferred maintenance, a result of past City Council decisions. Unlike previous councils, my tenure is and has been committed to not passing the buck and addressing these infrastructure issues head-on to ensure the long-term sustainability of our infrastructure and wastewater system.
The updates will ensure that the city’s wastewater system continues to operate efficiently and meets regulatory standards.
Financial and Operational Context
The City of Pinole’s Wastewater Department operates as an enterprise fund, meaning it is self-funded through user fees rather than relying on property or sales taxes. This structure requires the department to recover all operating costs, which include:
- Electricity for operating pumps
- Fuel for maintenance vehicles
- Chemicals for wastewater treatment
- Regulatory fees for permits and inspections
- Salaries and related processing costs
Moreover, the City has a Joint Powers Agreement with the City of Hercules for wastewater processing. This partnership necessitates a robust and well-maintained infrastructure to handle the shared load.
Historical and Future Financial Planning
In 2018, the City Council adopted a five-year rate structure based on an analysis by Willdan Financial to fund necessary improvements as recommended by the Sanitary Sewer Master Plan (SSMP). For 2024, Willdan Financial has once again been tasked with updating the sewer rate model and making recommendations for the next five fiscal years.
The updated model addresses several key areas:
- Operating and maintenance costs for the Pinole-Hercules Water Pollution Control Plant.
- Operating and maintenance costs for the Pinole collection system.
- Debt service for prior improvements, including state-mandated upgrades funded by an SRF Loan.
- Capital improvements to reduce inflow and infiltration and maintain reserves for future projects.
Rate Structure Changes
One significant change in the new sewer rate model is the methodology for calculating commercial user fees, which are based on water usage. This adjustment aims to streamline the calculation process and reduce errors, providing a more accurate and efficient system for determining charges. Residential users will continue to pay a flat rate for their sewer services.
Fiscal Impact
The proposed sewer rates are essential for the continued operation of the Pinole-Hercules Water Pollution Control Plant and the city’s collection system. Adequate revenue is crucial to avoid deferring important projects and to ensure compliant operations. To minimize the financial impact on ratepayers, the City has implemented several measures, including a 30-year payback schedule for the SRF Loan and refunding prior bond debt service to reduce annual payments.
Get Involved
Residents are strongly encouraged to engage with this process. Review the mailer sent to you, attend the workshop on July 2, 2024, and participate in the Public Hearing on July 16, 2024. Your input is vital to shaping the future of Pinole’s wastewater infrastructure and ensuring the proposed rates are fair and effective.
For more detailed information, including how to file a protest form, refer to the draft Sewer Rate Study Report linked above. Your voice matters in this critical decision-making process.
