By Noel Smith – [email protected]
Water rates are going up on March 1, 2013 for all ratepayers in the Soquel Creek Water District (SqCWD). The Board of Directors unanimously approved the three-year increase on February 5, 2013. The rates will also increase on January 1 2014, and on January 1 2015. According to Michelle Boisen, the District’s financial and business manager, the increased rates are necessary to fund improvements needed to maintain the quality and quantity of its product, water.
“There are a number of capital projects we need to address in the next few years,” said Boisen, “Having to do with the danger of groundwater supply shortage due to saltwater intrusion and to complete $66 million in necessary infrastructure improvements over the next 10 years to ensure our delivery of high-quality water to our customers.”
Boisen explained that in order to replenish the aquifer from which the SqCWD pumps its water, the District has to reduce its usage by 30 percent for the next 20 years. The alternative is to find another source of water. That is the reason the district has partnered with the Santa Cruz Water district in exploring the possibility of building a desalination facility rather that mandating that their customers reduce usage by almost a third.
When asked about if any of the rate increases were associated with the proposed desalination project, Boisen said “Current desalination costs – which are shared with the Santa Cruz Water District – are for the EIR in progress due this summer and for providing education and information on the subject of desalination to the public and these costs are funded through the current water rates.”
The following descriptions and rates are from the District website.
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Bi-Monthly Service Charges
The bi-monthly (every two months) Single Family Residential service charges (Meter Fees) are simplified so that all residential meter charges are the same. Service suspension will no longer suspend the service charge. The bi-monthly service charge is intended to help cover a number of fixed District expenses and is spread equally among all water users.
On March 1, 2013, the Single Family Residential service charge goes to $43.40 regardless of meter size. On January 1, 2014, it increases to $46.43 and on January 1, 2015, the last increase is to a $49.66 per meter service charge.
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Automated Meter Reading Opt-Out Fee
This is a $10 fee charged each billing cycle for those customers who request that a “Smart” meter device not be installed at their service location. A technician then will manually read their meter each billing cycle. If the District switches from bi-monthly to monthly billing, opt-out customers will be billed this fee every month.
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Changes to the Rate (Water Usage) Structure
The District is also making changes to the existing water quantity rate structure. The residential quantity charge reflects an “inclining rate structure”; which means those who use more, pay more. This tiered rate structure changes from three tiers to four tiers to better reflect the actual water usage of residential customers. The highest tier is for those customers consuming more than 30 units of water per 60-day billing period.
Per unit 60 day billing cycle water usage rates for single family residences
Tier 1 – 1 – 6 units (Up to 4,500 gal or 75 gal per day) = $3.60 • 1/1/14 = $3.80 • 1/1/15 = $4.00
Tier 2 – 7-14 units (Up to 10,500 gal or 175 gal per day) = $5.80 • 1/1/14 = $6.40 • 1/1/15 = $7.00 (Avg. residential Customer)
Tier 3 –15-30 units (Up to 22,500 gal or 375 gal per day) = $8.50 • 1/1/14 = $9.75 • 1/1/15 = $11.00
Tier 4 – 31+ units (Over 22,500 gal or 375 gal per day) = $13.00 • 1/1/14 = $14.50 • 1/1/15 = $16.00
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The SqCWD is a Special District governed by a five-member Board of Directors elected by the voters who live within the District. The District’s service area extends from 41st Ave. in Capitola, east through La Selva Beach with about 14,200 connections to its water distribution system serving about 38,000 customers. Over 90% of these connections are residential.
The average SqCWD household uses 174 gallons of water per day. This is about 85 units (1 unit = 100 cubic feet and 1 cubic foot = 7.4805 gallons) or 63,600 gallons of water in a year. SqCWD does not receive any tax revenues or other subsidies meaning that water rates fund both the District’s operations and capital improvement projects.