STPUD plots rate plan for capital upgrades
By Kathryn Reed
Pros and cons of various time lines to complete capital improvement projects were discussed last week by the South Tahoe Public Utility District board.
No action was taken, but the board is on track to go forward with the multi-year rate increase plan for sewer and water customers that was approved last year. Rates will go up another 6 percent on the sewer side and 6.5 percent on the water starting July 1.
The district looks at projects in 10-, 20- and 30-year intervals.
The three biggest issues facing South Tahoe PUD are installing the state mandated water meters, replacing water lines so there is adequate fire flow and replacing the aging sewer system.
The remaining 7,000 meters should be installed to all residential customers within five years. The district obtained a $21.5 million zero percent loan from the state to be able to complete the project.
With the projected rate increases going forward, it will take the district 30 years to install all of the water lines to meet today’s standards. While inflation is built into budgets when looking forward, it is impossible to know what other rules might come down the pike.
In the next 10 years it means spending $69.5 million, and $173.8 million in 20 years. The district has spent $59.4 million in the last 10 years on water projects.
Staff looked at three alternatives – no water or sewer improvements, appropriate/adequate improvements that would accomplish the goals in 10 to 15 years. This is the least risky choice, but also the most expensive.
The board is going with the third, or delayed, plan. For the water line replacement to be done in a 30-year period, it means rate increases of 6.5 percent through 2017, 5 percent in 2018, 2 percent between 2019 and 2024, and 4.5 percent from 2025-44. The currently quarterly water fee is $130.25, by 2034 is would be $288.92, and $448.67 by 2044 if the increases are approved.
For the $140.6 million worth of sewer improvements that have been identified to be completed in 20 years, the rates would have to increase by 6 percent in years 2015-18, 2 percent from 2019-24 and 4 percent from 2025-2034.
The quarterly bill will go from $100.02 to $210.49.
Board member Jim Jones advocated for a more aggressive plan to replace the infrastructure. Other board members want a more tempered approach that people would be better able to afford.
Only two people showed up for the Feb. 5 workshop – a former board member and a contractor.
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Notes:
• There will be a board workshop March 3 at 2pm.
• May 7, 6pm – public hearing.
• May 21, 2pm – public hearing and consider rate approval.
• All meetings are at the district office, 1275 Meadow Crest Drive, South Lake Tahoe.
Bend over folks, The district is about to rip you off again. The highest paid people in Tahoe must need another raise. And you can do nothing about.
Tahoe may become a city yet.
State Mandated water meters – but you pay for them through STPUD. Isn’t this a tax? You didn’t decide you needed them, STPUD didn’t decide you needed them but the entity which did isn’t paying for them.
As far as infrastructure upgrades, I would have assumed I was already paying for them in my existing bill, a portion of which should have been put aside for future needs. If they have only been charging for day to day operations, they are poor business managers and it should be asked why there is no reserve.
We knew this was coming when we saw the multi-colored “advertisement” for STPUD in the mail this week. The mailer claims the lowest rates in the region however we have been paying higher rates for years while other districts are now raising rates to catch-up. It seems criminal that ratepayers have to pay for this Ad to get prepared for the next rate increase- but that’s exactly what STPUD did.
Back in the 90s when EID was making everybody switch over to meters, it was simple. Each residence paid for their own. If you couldn’t pay the upfront cost, you could have a portion added to your bill each month, for a period of about 5 years, if I remember correctly. A lot of people chose that option, figuring they’d probably move sooner than that, and stick it to the next purchasers. But still, at least they didn’t force people who had already purchased meters to pay for everybody else’s like they’re doing here. When we built this house in 02, we paid for our meter up front as part of our water/sewer permit fees. Now we get to pay for everybody else’s too.
Nice.
Do these guys ever go after grants?
I’ve lived in a lot of places, and the water bills here seem excessively high to everywhere else, not a little high, like double at least.
Someone’s got to pay for the slick color flyers, radio commercials, newspaper ads, gourmet coffee deliveries for employees, gold-plated health insurance for board members, and so on. Why can’t they simply insert a simple one-page newsletter in customer bills instead of mailing a separate color brochure?
7,000 divided into 21 million equals 3,000. That is 3000 dollars per meter. What a deal especially when STPUD has an incredible surplus of underground water and that water can not be exported to drought effected areas.
Please stop the insanity. Fat chance that will happen.
And only 2 people showed up at the meeting? That in itself is very telling about the complaints and what the finger pointers are willing to do to make change or voice their concerns, nothing…
Given how the city is doing a good job reducing its expenses, it might be time for us to request that the city annex STPUD. I’m sure they would reduce costs, staff, and thus our rates.
Yes Reza the city could annex it and they would have to play by the rules of the PUC not the whim of the board.
I wonder how much of the increase is to cover the city’s new requirement to pave one entire lane of the street when they dig?
Kind of a slick way for the city to have a large portion of the street repair costs paid out of our left pocket instead of our right pocket.
Sunriser
It is about time that the City has made them pave, 90% of your street failures are due to Water and Sewer cuts in the street that are not properly repaired. When you cut the street you break the bond and failures begin. Good Job City.
STPUD doesn’t pay for anything the tax payers do. Before you know it the city will have STPUD plowing snow.
Beagle it has nothing to do with water surplus/source/whatever you were thinking.