HomeMy WebLinkAbout01.(Handout 2) Prop 218 Notice01. (Handout 2) Draft Prop 218 Notice
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Central San
Notice of Proposed Rate Changes
[page 1 callout]
Central San's annual Sewer Service Charge funds round-the-clock operations, maintenance, and
construction of critical infrastructure. Central San is adjusting rates to increase total Sewer
Service Charge revenue by 2.5% in 2025 and 4% in 2026. For single-family homes, the rate
increases under consideration are 4% ($29 annually) for 2025 and 4% ($30 annually) for 2026.
Rates will vary for other residential and non-residential customers, based on the cost to provide
service to those classes. Please see page 3 table for exact rates based on your customer class.
Central Contra Costa Sanitary District (Central San) is your local sewer service provider
protecting public health and the environment for almost 80 years. Every time you wash your
dishes or clothes, flush your toilet, or use your sinks, bathtub, and shower, Central San collects
and cleans all that dirty water. We maintain over 1,500 miles of underground pipe and 18
pumping stations to transport wastewater from our customers to our regional treatment plant,
where we clean more than 13 billion gallons of wastewater every year.
DOING MORE TO PROTECT OUR ENVIRONMENT
• Household Hazardous Waste (HHW) Collection: Since opening our HHW facility in 1997,
we have collected almost 50 million pounds of paint, pesticides, batteries, fluorescent
lamps, and more, keeping these hazardous wastes out of sewers, storm drains, and
landfills. Even better, nearly 90% of the materials we collect are reused or recycled.
• Recycled Water: Always on the forefront of local water resiliency, our recycled water
program saves more than 500 million gallons of precious drinking water every year.
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We have not done this alone. You, our customers, have provided us with the funds necessary to
fulfill our mission of protecting public health and the environment. We are thankful for the
trust you have placed in us, and we remain committed to providing you exceptional service at
reasonable rates. At Central San, we continually strive to control costs and do everything we
can to keep rates affordable.
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FINANCIAL HIGHLIGHTS
0 Secured low-cost state financing to save $20 million in interest costs on large-scale projects
• Maintained AAA (S&P) and Aa1 (Moody's) credit ratings to keep borrowing costs low
• Benchmark performance annually to ensure efficient, cost-effective operations
• Recovered $1.8 million in COVID-19 response costs from State and Federal funds
• Fully funded pension liabilities, saving millions in ongoing interest costs
Through prudent financial management, we've built our reserves, including a rate stabilization
fund, to help weather changing economic conditions. We recognize that our customers are
facing rising costs, from utilities to food and housing. Under the proposed rate changes, we plan
to draw from our rate stabilization fund to keep rates as low as possible and help smooth
increases over time.
YOUR DOLLARS AT WORK
Through proactive maintenance, we've extended the lifespan of our facilities and equipment to
make every dollar work harder for our customers. We've continuously invested in our
wastewater system to ensure safe, efficient, reliable service. Over the past two years, we've
worked hard to complete several significant infrastructure improvement projects:
• Pipes: We replaced more than 6 miles of aging neighborhood sewer pipes throughout
our service area.
• Aeration Basins: We completed the first phase of renovations to our aeration basins.
These giant tanks provide an oxygen -rich environment for beneficial microorganisms
that consume and break down pollutants in wastewater.
• Steam and Aeration Blower Systems: We installed new electric blowers to provide full
backup for these essential systems.
• Recycled Water: We completed the first phase of renovations to our recycled water
plant, which will ensure continued reliability of our recycled water system and support
expanded capacity for the future.
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PREPARING FOR THE FUTURE
As we look ahead, our key priorities include replacing aging infrastructure, meeting new
regulatory requirements, and enhancing environmental sustainability while continuing to
provide exceptional service.
This past year, the San Francisco Bay Regional Water Quality Control Board introduced new
regulations requiring all Bay Area wastewater agencies to reduce nitrogen discharges to the Bay
by 40% within a decade. Achieving the mandated reductions will require significant treatment
upgrades at an estimated cost of $11-13 billion for Bay Area residents. Costs to Central San to
meet the 40% nitrogen reduction may range from $500-700 million. We are exploring
innovative solutions to help us meet the new requirements, and reprioritizing other projects to
control overall costs and minimize rate impacts to customers.
The proposed rates will provide the necessary funding for these critical projects currently
scheduled for the next two years:
1. Nutrient Regulatory Requirements Roadmap: We will develop a comprehensive roadmap to
guide our nutrient -management efforts over the next decade, allowing us to coordinate, plan,
design, and construct multiple large-scale projects in the most effective and cost-efficient
manner. Additionally, we will continue to explore and test cutting-edge technologies that could
help achieve the Regional Water Quality Control Board required reductions at a lower cost
compared to conventional technologies.
2. Pipes and Pumping Stations: We will replace about 12 miles of neighborhood sewer pipes to
ensure reliable service for decades to come. We will also complete improvements to three large
pumping stations that are essential for continuous delivery of wastewater from the Martinez
area to our treatment plant.
3. Large Sewer Inspections: We will continue condition assessments of our large sewers and
force mains to plan for future repairs. Measuring up to 8.5 feet in diameter, these pipes convey
wastewater from neighborhoods throughout our service area.
4. Solids Handling: We will continue work on a large-scale, multi-year rehabilitation of our
solids handling facilities, including seismic upgrades and replacement of aging equipment. The
project will ensure reliable ongoing processing of wastewater solids and compliance with strict
air quality regulations.
5. Aeration Basins: We will begin the second phase of renovations to our aeration basins to
improve seismic reliability, enhance efficiency, and prolong the lifespan of these critical
facilities.
6. Energy Efficiency Roadmap: We will assess current and future energy needs and develop a
comprehensive and sustainable energy strategy for powering our operations while minimizing
costs and climate impacts.
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Annual Sewer Service Charge Rates — Current & Proposed
[rates table to be included after Board vote]
* ACCESSORY DWELLING UNITS (ADUs): An ADU is a separate living unit located on the same
property as a single-family home.
+ STRENGTH CATEGORY: Nonresidential customers are categorized into five "strength
categories" (Low, Low -Medium, Medium, Medium -High, and High) based on the concentration
of sewer waste generated by each. The greater the strength of waste, the higher the cost of
energy and effort to treat, which leads to a correspondingly higher rate. A nonresidential
customer's annual Sewer Service Charge is determined by multiplying the appropriate strength
category rate times the annual wastewater discharge volume measured in Hundred Cubic Feet
(HCF). For example, a bakery discharging 250 HCF per year would pay an annual Sewer Service
Charge at the July 1, 2025, proposed rate calculated as follows: ($16.70 per HCF) x (250 HCF per
year) _ $4,175.00.
CALCULATION OF RATES IN WASTEWATER COST OF SERVICE STUDY
Central San completed a detailed Cost of Service Study that identifies the wastewater system
infrastructure and services needed to serve all customers, the estimated cost of providing that
system and service to customers, and the proportionate allocation of those costs to each
customer class that receives the benefit of that system. That proportionate allocation of costs
to each property is the basis for the Sewer Service Charge rates included in this notice. The Cost
of Service Study is available at centralsan.org/notice.
If you have questions regarding the calculation of your Sewer Service Charge for your property,
including the identification of the annual wastewater discharge volume for nonresidential
customers, you may request further information via email at rates@centralsan.org or phone
(925) 335-7702. Please provide your name, contact information, and the service address or
Assessor's Parcel Number(s).
RATE HEARING PROCESS/ HOW TO PROTEST
The Central San Board of Directors will conduct a public hearing on April 17, 2025, at 2:30 p.m.,
at the Central Contra Costa Sanitary District Board Room, 5019 Imhoff Place, Martinez, CA
94553. At the hearing, the Board will consider all spoken and written comments from the public
in favor or opposed to the proposed Sewer Service Charge rates. If a valid written protest is
filed by the owner or customer of more than one half of the total number of properties subject
to the Sewer Service Charge rates, it is considered a majority protest and Central San will not
impose the proposed updated rates. If there is no majority protest, it is within the authority of
the Board to approve the proposed update to the Sewer Service Charge rates. If the Board
approves the proposed updated rates, there is a 120 -day statute of limitations for challenging
the updated rates. (See Government Code Section 53759.)
A valid written protest must include the name of the owner or customer who is protesting, as
well as the address and/or Assessor's Parcel Number. Written protests may be mailed, hand -
delivered, or sent via email or fax; but they will only be counted if they are received by the
Secretary of the District prior to the close of public testimony for the public hearing. A written
protest that is sent via fax must be sent to (925) 372-0192. A written protest that is sent via
email must be sent to kyoung@centralsan.org.
More information about filing a written protest can be found at centralsan.org/notice or by
calling (925) 335-7702.
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[Central San logo]
5019 Imhoff Place
Martinez, CA 94553
NOTICE OF PROPOSED RATE CHANGES AND PUBLIC HEARING AT 2:30 P.M. ON APRIL 17, 2025,
AT 5019 IMHOFF PLACE, MARTINEZ
WHAT YOU NEED TO KNOW
1. We will continue to maintain and upgrade our treatment plant, pumping stations,
pipelines, and other critical infrastructure essential to conveying and cleaning
wastewater.
2. We will continue to offer and grow services such as the Household Hazardous Waste Collection
Facility and Residential and Commercial Recycled Water Fill Stations.
3. We remain committed to protecting the environment and meeting the highest regulatory
standards.
4. We will continue to prudently manage costs and maintain the financial stability and
sustainability of Central San.
5. We will continue to provide our customers exceptional service at responsible rates.
For more information: centralsan.org
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