New Water and Wastewater Rate Structure

The City of Grover Beach is dedicated to providing safe and reliable water and wastewater services in a cost-effective manner. The City provides water and wastewater service to residential, landscape, and commercial customers. Bi-monthly rates charged to system users (customers) are the primary source of revenue to operate the water and wastewater systems and are used solely for this purpose. Rate revenue provides funding for annual operating and maintenance costs, capital projects to improve water and wastewater infrastructure, administration, and maintaining adequate fund reserves and planning for contingencies.

 In order to maintain high-quality utility services and ensure adequate water supply, the City Council approved a new five-year water and wastewater structure to allow for increases to rates of up to 19.7% for water rates for years 1-4 and up to a 4% increase for year 5; as well as up to 19.5% for wastewater rates for years 1-4 and up to a 4% increase for year 5. Upon implementation of the new rate structure in February 2024, the average residential water bill will increase by approximately $13 per month and the average wastewater bill will increase by approximately 2.50 per month. The Council may set rates lower than allowed by the rate structure should additional revenues be realized that were not considered in the rate study determining the rate structure. For more information regarding the 2023 Rate Study, please got to: www.groverbeach/org/Rate Study 2023

 Several water and wastewater system capital projects over the next five years are proposed to be supported by these rates. These projects include: 

Water System Projects:

Project

Estimated Cost

Central Coast Blue Water Sustainability Project (for more information on this project, please go to https://www.grover.org/FAQ.aspx?TID=24 or https://www.centralcoastblue.com/)

$16.7 million (Grover Beach’s Share)

Water Reservoir Maintenance – upgrades to tank site to prevent failure of Tank 2, which would impact the City’s ability to deliver water and provide fire protection 

$1.5 million

16th Street Booster Station Upgrade – upgrades are needed to ensure the northern portion of the City has adequate water pressure to provide water to customers. If the Booster Station is not upgraded and fails, the City will be unable to provide water to a large portion of the City

$960,000

Water Meter Replacements – Update water meters to ensure appropriate billing

$900,000

Well Capacity Analysis and Improvements – well field improvements are needed to ensure continued reliable groundwater protection

$75,000

Water Main Zone Valves – add additional valves to reduce shutdown distances

$25,000

Installation of Automated Meter Reading System – avoid the need for contract services and provide City control of meter reading

$300,000

 

Wastewater System Projects:

Project

Estimated Cost

Sewer Upgrade Project – Need to replace and expand outdated sewer lines to allow for capacity to serve several planned and in-development projects, including 402 and 401 West Grand Avenue mixed-use developments, the Cleaver and Clark Commons affordable housing development and the hotel at 950 El Camino Real. Failure to upsize could result in sewer overflows and delay of this project would require delay of Measure K-14 projects

$3.6 million (Planned financing)

 

Sewer Upgrades Project #2 – upsize sewer lines for existing flows and planned development along El Camino Real. Delays will severely limit system capacity downstream

$3.1 million

Citywide Sewer Lining – Line existing mains to avoid damage from roots, etc. to prevent sewer overflows due to blockages

$500,000

Front Street and South Oak Park Boulevard Lift Station Upgrades – upgrades required due to age of lift stations and potential for failure

$294,000

Storm Drain Repair at Rail Crossing – Repair/replace storm drain line at the end of its useful life to prevent failure which would cause flooding at Front Street and Ramona Avenue

$140,000

 

Utility Assistance Program 

In 2019, the Council enacted the County’s most generous Utility Assistance Program called the “CAP Program” to provide credits to lower income residents who participate in the PG&E or SoCal Gas CARES programs which are responsible for verifying income eligibility. The City annually allocates approximately $50,000 from the General Fund for this program. The credits increase when rates increase.  

Additionally, the Council expanded the UAP to provide a credit to cover the water rate increases for all Tier 1 water users in the program through December 31, 2024, in addition to the current credit for fixed charges for water and wastewater costs. The City also will to work with individual customers on payment plans for utility bill payments if needed along with utilizing the CAP Program. 

For more information on enrollment in the CAP Program, please visit: https://groverbeach.org/93/Utility-Services or contact the Administrative Services Department at (805) 473-4550 x 3.

Additional Resources:

For more information, please see: