West Marin water rate increases proposed
The North Marin Water District is preparing to raise rates in West Marin to help pay for $27.5 million in capital improvements.
The agency’s board voted Tuesday to accept a rate study and call for a public hearing. If approved, the new water rate structure would apply to 775 connections for about 1,800 residents in Point Reyes Station, Olema, Bear Valley, Inverness Park and Paradise Ranch Estates.
The board also agreed to hold a hearing to consider an 8% increase to Oceana Marin sewer service for about 235 homes in Dillon Beach. Both hearings are set for June 17.
Under the proposal, customers would see incremental rate increases over the next five years beginning in July. For a median customer in Point Reyes Station, the bimonthly bill would increase $25.15 to $130.84, a 23.8% hike in the first year.
“The biggest driver of a rate increase is the need to replace, rehabilitate or upgrade existing water infrastructure over the next 10 years and beyond,” said Tony Williams, general manager of the water district. “In general, the majority of the West Marin water system has reached the end of its design life.”
Two large projects require the North Marin Water District to take out loans, Williams said.
The district must replace the pipeline across the Lagunitas Creek Bridge. The work is required as part of a $21 million Caltrans project to replace the 95-year-old span in Point Reyes Station. The pipe replacement is expected to cost the district about $1.25 million, Williams said.
A similar pipeline replacement project will be required at about the same cost as part of a county effort to replace the Olema Creek Bridge on Sir Francis Drake Boulevard, also in Point Reyes Station, Williams said.
Other capital needs include a new water supply well for resiliency; upgrades to the treatment plant; and rehabilitation of storage tanks, pipelines and pump stations throughout the West Marin system, Williams said.
“The total number of customers in our West Marin system is relatively small but the water system is extensive and complex” and costly to maintain, Williams said. “The complexity is due to the ruralness of the area and overall mountainous terrain.”
As part of the rate study, the district evaluated several financing options for the capital improvements as well several ways to get the work done. However, the total cost must be distributed across a small customer base and there are no other significant sources of revenue. This results in higher rates, he said.
“We hope to get grant funds to help offset the costs but there is no guarantee that we will be successful in obtaining grant funding,” Williams said.
The district will present its capital improvement program at its May 6 board meeting. The district has received no public comment on the rate study or proposed increase.