Potential Rate Adjustments to Turlock Sewer Services Q&A
Protecting Water Quality, Public Health and the Environment
The City of Turlock provides 24-hour emergency response 365 days per year for all residential, commercial, and industrial users of the city sewer system. The Department manages a sewer collection system with approximately “225” (2013 Sewer System Master Plan) miles pipelines to serve Turlock residents. Additionally, the Regional Water Quality Control facility treats a portion of the City of Ceres wastewater as well as all of the waste from the Community Service Districts of Keyes and Denair.
A network of underground pipes, manholes, and other equipment carries sewage from homes, businesses, and industries to our wastewater treatment plant. There, it goes through multiple stages of treatment to remove contaminants. Once treated, the water is sent to the North Valley Regional Recycled Water Program for further beneficial use, like landscape irrigation.
How does the sewer system impact Turlock residents?
The sewer system is there for residents every time they use a kitchen sink, flush a toilet, take a shower, or wash a load of laundry. Today, sophisticated treatment plants such as ours are integral to sewer systems, ensuring that wastewater undergoes rigorous cleaning processes. Biological and chemical treatments, aided by aerobic and anaerobic digestion, help break down harmful pathogens and contaminants, preventing outbreaks and protecting public health within our community as well as our neighboring communities.
Has the City explored other avenues for funding before proposing this increase?
Absolutely. The city has actively pursued multiple sources of funding, including previous grants and state and federal assistance. While $2 Million has been received for the collection system and incorporated to reduce the amount of the proposed sewer rate increases, they only cover a portion of the total costs required to maintain and upgrade the sewer infrastructure adequately. Additionally, the City recovers a commodity charge for recycled water that is used for additional beneficial use as non-rate revenue. This revenue is applied to the fund to reduce overall operating costs for our residents and businesses.
What are the benefits of a well-maintained sewer system?
A well-maintained sewer system ensures that wastewater is effectively treated and disposed of, preventing health hazards and environmental contamination. Regular maintenance and timely upgrades reduce the risk of system failures and service disruptions, providing residents with consistent and reliable sewer services.
Does this service impact the environment?
Yes. Proper treatment and disposal of wastewater helps protect local water bodies and the environment from pollution, supporting the overall health of the ecosystem. Funding these essential operations through sewer rates helps to ensure reliable, and sustainable sewer services to all residents, enhancing the overall quality of life in the community.
What does funding from sewer rates pay for and why is that important to residents and the community at large?
Funding from sewer rates pays for several critical components necessary for maintaining and improving the city's sewer system. These components include:
• Operating and Maintenance (O&M) Costs: This covers the daily expenses of running the sewer system, such as salaries, benefits, supplies, chemicals, and maintenance services. Proper O&M ensures that the system functions reliably and efficiently.
• Debt Service: This includes the repayment of loans and bonds that the city has taken out to finance major capital improvement projects. Debt service ensures that the city can continue to invest in necessary infrastructure upgrades and expansions.
• Capital Improvement Projects: These are large-scale projects aimed at upgrading and expanding the sewer system to meet future demands. They include repairs, replacements, and enhancements to existing infrastructure, as well as capital rehabilitation projects.
• Reserves: Adequate reserve funds are essential for handling emergencies, unexpected repairs, and future capital needs. They provide a financial cushion that helps the city manage risks and maintain service levels during unforeseen events.
Why is Turlock considering a change in current sewer rates?
The City has not raised wastewater rates since 2013 and revenues from the current rate structure are not fiscally sustainable. The current total annual costs are $26.3 million while the existing rate revenue is approximately $20.5 million. Water and wastewater services are experiencing the same global impacts of inflation. The cost for chemicals necessary to treat the wastewater are rising as well as parts to repair equipment. Rates must keep up with costs to operate the system effectively. Many parts of our wastewater system are about 50 years old and some beyond their useful life. The system needs continual repair, replacement, and refurbishment to minimize the risk of overflows, blockages, and other problems that can lead to compliance issues and service interruption. Further investment ensures our wastewater system continues to protect public health.
What is the methodology for setting sewer service charges?
The approach is based on a three-step process:
- Financial Plan: Estimates the costs to be recovered from rates, including O&M, debt service, planned capital projects, and target fund balances.
- Cost-of-Service: Proportionally allocates revenue requirements to customer classes based on state law and industry standards.
- Rate Design: Considers the best rate structure to collect revenue from various types of customers.
How are costs allocated to customers in the cost-of-service study?
Unit costs are allocated based on wastewater loadings to four parameters: Customer Costs, Flow Related Costs, Biological Oxygen Demand (BOD) Costs, and Suspended Solids (SS) Costs. These unit costs are consistent across all customer classes and then allocated to customers based on their contribution to the wastewater treatment process. Our rates are based upon the actual costs of providing wastewater (sewer) service to you, nothing more. Rates increase when necessary to cover operating and capital costs to maintain the City’s wastewater system.
What changes are being proposed for the rate structure?
The study proposes moving away from using fixture units for residential customers as a proxy for sewer flow to using water usage, which is a better proxy. It also proposes a realignment of rates across different customer classes.
Residential customer wastewater flow is determined by winter water usage, while commercial and institutional customer wastewater flow is based on annual water usage. Industrial user rates are based on measured water usage and concentration. Industrial rates are also being revised to remove the reserve capacity charge as a separate charge and include it in the rate.
The intent of the rate design is to have a structure that is easy to understand and administer, as well as to meet the increase in revenue requirements.
What are the projected impacts of the proposed rate increases?
For Residents:
Many residents will see their rates decrease. These adjustments are designed to ensure our sewer system remains reliable and efficient, while complying with California's latest legal standards, including Proposition 218, to ensure a fair and transparent process.
For Industrial Customers:
Industrial customers will see an increase in rates. This adjustment is essential to meet our revenue needs, cover rising operating costs, and fund critical capital improvements. The rate increases ensure equitable cost distribution across all customer categories, supporting a sustainable and robust sewer system. These rates comply with California's latest legal standards, ensuring a fair and transparent process.
Why Are These Changes Necessary?
• Revenue Needs: Ensuring reliable sewer services requires sufficient revenue to cover operational and maintenance costs. These adjustments will help generate the necessary funds to keep the system running smoothly.
• Capital Improvements: The current wastewater treatment facility began treating water in 1918. Under direction of the Clean Water Act enacted in 1972 the present day facility finished construction in 1977. The 132 acre facility was constructed with both Federal and State grant funding leaving approximately 10% to be funded by the rate payers. Plant was reclassified to a Grade V facility in 2006, and continues to maintain the highest level of classification the State of California requires. The facility was modified to add additional denitrification in 2015 to meet more stringent discharge regulations.
• Legal Compliance: By updating our rates, we ensure compliance with California law standards, including Proposition 218. This guarantees that the rate-setting process is fair, transparent, and legally sound.
Check Your Rates
How do Turlock’s proposed sewer rates compare to neighboring communities?
The proposed sewer rates are based on a thorough cost of service study, ensuring that the rates reflect the actual costs of maintaining the sewer system. These rates were not specifically designed to match or compete with those in neighboring communities.
How can residents and stakeholders provide feedback or get more information?
Residents and stakeholders can email contact@civicmic.com with any questions.
Does the City’s Wastewater Enterprise make a profit?
No. By law, the City cannot charge customers more than what it costs to provide the service. Our wastewater system is owned by our customers and governed by the City Council; the City does not have shareholders or pay dividends.
How do the Proposition 218 protest proceedings work?
Under Proposition 218, property owners have the right to protest proposed increases in certain fees, including sewer. If 50% of affected property owners submit written protests at or before the public hearing, the city cannot implement the fee.
Public hearings are scheduled for October 2024.
I am residential, how do I know if I am metered or non-metered class?
If you receive drinking water from the City of Turlock you will be in metered. If you receive drinking water from a water district other than the City of Turlock you will be non-metered.
On the Prop 218 notice, the single family residential Non-Metered current rate is lower than the single family residential metered. Why is that?
Metered and Non-Metered have the same rates for fixture counts. Non-metered accounts are accounts that receive drinking water from independent water districts. Non-metered accounts only represent 2% of the total residential accounts in the city. The prop 218 notice is reporting the change for the majority of the account holders for each customer class not the entire class. For metered users, the majority of the accounts were 21-25 fixtures where non-metered users he majority of the accounts were up to 15 fixtures. Metered users will have the same rate changes as non-metered users.
The current charge on my bill doesn’t match the rate listed on the Prop 218 notice, how do I know what my current rate is?
There are two components that make up the total sewer charge. The sewer rate itself, which is the cost to treat the waste and the administrative charge which is the cost to administer the program. The current administrative charge is $8.15 per account/dwelling. If you subtract $8.15 from your total sewer charges on your bill, that will be your current sewer rate.
The current administrative charge is $8.15 where the proposed rate administrative charge is $3.15, have I been overcharged?
No, the current rate structure is more than thirty years old and uses fixtures in the home as a proxy for sewer flow. Water usage is a much better proxy for sewer contribution and makes for a rate structure that is better representative of the contribution, easier to understand, easier to administer and bill. The efficiency gained by the changes made to the rate structure will have significant impact to reduce administrative costs. The cost avoidance is applied as a savings to the customer.
I am a commercial customer, how do I know what class I am in?
All businesses are unique. However most businesses will fall under low strength. Businesses such as hotels with dining, commercial laundry and similar services will be categorized as medium strength. Auto steam cleaning, bakeries, industrial laundry, markets with garbage grinding, mortuaries and restaurants are classified as high strength.
