Alameda County — Water rates will likely rise as a result of challenges currently facing the Tri-Valley’s Zone 7 water supplier.
Reduced sales during the drought, forever-chemical treatments, and state infrastructure contributions all loomed over the agency’s four-year rate study that discussed annual rate increases between 2.0 and 9.5 percent, with the board favoring the higher end, at its Sept. 21 board of directors meeting.
“Water supply reliability is going to take a significant investment,” said Director Dennis Gambs. “In order to accomplish that, we have to do it through our water sales. I don’t see any fat in these projects we’ve identified.”
As the Tri-Valley’s water wholesaler, Zone 7 provides water to local retailers — Pleasanton, Livermore, the California Water Service, and the Dublin San Ramon Services District — for final treatment and delivery.
The rate study considered six financial scenarios that progressively ranged from a zero-rate increase that failed to meet the agency’s reserve targets, to a 9.5% annual rate increase that included forever-chemical treatment projects at Zone 7’s Stoneridge and Chain of Lakes sites, funding for the Los Vaqueros Expansion Project, and funding for the Delta Conveyance Project, on top of other operations and maintenance expenses.
For the final Oct. 19 vote, the board asked staff to prepare, detailed reports for the most inclusive scenarios.
“We would mislead ourselves tremendously to think we can get off cheap; because we can’t,” said Board President Sarah Palmer. “We have too much at stake. We’ve got too many projects that, unfortunately, as much as they seem to be extraneous, they are going to be very necessary.”
While drought-induced calls for 15% water conservation have stretched the area’s water supplies, they have also cut into Zone 7’s revenues, and thereby prompted some of the rate increases to bolster the agency through uncertain weather conditions.
The National Weather Service Seasonal Drought Outlook, released Sept. 30, expected California drought conditions to persist at least through the end of the year.
Similarly, in a Sept. 28 statement, Gov. Gavin Newsom urged the state to brace for a fourth year of drought.
Referring to his newly released water supply strategy, Newsom said, “The plan outlines our aggressive, science-led approach to addressing California’s water future by reimagining the way we source, store and deliver water statewide for future generations.”
Newsom’s strategy included support for large water infrastructure projects, such as the Los Vaqueros and Delta Conveyance projects to which Zone 7 plans to contribute.
The Los Vaqueros Expansion Project involves a transfer pipeline to the Bethany Reservoir and a possible 275,000 acre-foot increase to the reservoir’s capacity, while the Delta Conveyance Project proposes a 45-mile long tunnel to reroute water from the Sacramento River into the State Water Project.
Both projects intend to take advantage of less frequent and more intense precipitation events to carry consumers through longer droughts, according to the strategy.
Board Vice President Sandy Figuers, tried to place the upcoming rate increase into perspective.
“We are financially solvent; we are looking forward; we’re proactive,” he said. “People may grump and groan about the money, but if they didn’t have this district and its staff, we would be in a world of hurt.”
