MMWD Considers Long-Term Rate Changes

Even as water users are trying to wrap their heads around a from Marin Municipal Water District, the district is convening a committee to make long-term rate recommendations.

The district is experiencing a number of challenges right now, primarily in how to balance its revenue needs, capital projects, and conservation efforts. MMWD saw its lowest usage last year since 1993, when the area was coming out of a drought. Decreasing usage means the district has also seen decreasing revenues.

“But, we’re not unique,” said MMWD General Manager Paul Hellicker, pointing out that districts around the state are seeing decreases in water usage and in revenues.

The advisory committee, which had its first meeting last week, is charged with recommending a rate structure that will generate adequate operating revenues, reflect the true costs of supplying water to customers, be easy to understand, and encourage conservation. Sixteen members sit on the committee, including Steve Endicott of Sleepy Hollow and Kiki LaPorta of Fairfax.

“I ask that no one comes in with an agenda at the beginning,” said Gordon Bennett, from Point Reyes Staion, at the meeting – after a heated discussion about past rate committees. A number of people sitting on the current committee sat on previous rate committees, including a committee that made extensive recommendations in 1993 to adopt the first tiered rate system in non-drought years.

Such a committee was last convened in 2003, when it recommended adding a fourth tier to the rate structure. The fourth tier currently charges users who use that much water six times as much as the baseline level of usage.

At the committee’s first meeting last Wednesday night, district engineer John LaHaye gave an overview of the water district.

Of the average 30,000 acre-feet the district delivers every year (one acre-foot is just over 325,000 gallons), 71.5 percent comes from the district’s seven reservoirs and 25.5 percent is bought from the Sonoma County Water Agency. Just under two percent of the water is recycled and one percent is untreated – certain, limited accounts use untreated water.

Of the seven reservoirs, the main water supply comes from lakes Kent, Nicasio, Alpine, and Bon Tempe. Smaller lakes Soulajoule, Phoenix, and Lagunitas serve as reserve water supply for times of drought. Approximately 84,000 acre-feet are generated in rain run-off into the reservoirs each year, but “it’s highly variable,” said LaHaye. In 1976 and 1977, the area experienced almost no run-off, leading to a severe drought. And, in the early 1990s, Marin also went through a period of several drought years.

The water from the reservoirs is pumped through large pump stations to two main treatment plants. The large stations that pump the water up and over hills, before gravity can pull it down the watershed, accounts for more than half the district’s energy bill.

The main San Geronimo treatment plant, on Sir Francis Drake Boulevard in Woodacre, can treat 25 million gallons of water per day primarily from Kent and Nicasio. Treatment means the water has chlorine and a small amount of ammonia added to it for disinfectant and is treated with fluoride. That water is then pumped up over White’s Hill and used to serve central and northern Marin.

The Bon Tempe treatment plant, above Phoenix Lake, can treat 18 million gallons of water per day from Bon Tempe and Alpine lakes. Water from Alpine is pumped into Bon Tempe, because Bon Tempe is actually very small. When Alpine is low, it is filled by pumps from Kent. From the Bon Tempe treatment plant, the system is primarily gravity-fed (except for small boosters and lift stations) as it serves southern Marin.

The last key plant in the system is the Ignacio facility, which has the capability to accept delivery of up to 16 million gallons per day from the Sonoma County Water Agency and send it along to northern Marin. The district buys a large amount of water from Sonoma in the winter and relies more heavily on its own reservoirs in the dry summer months. 

A small plant in conjunction with the Las Gallinas Sanitary District recycles about two million gallons of water per day for accounts such as irrigation services.

“If you started from scratch, the system would look different,” said Committee Chair Anne Layzer, pointing out that the district was created by joining together 21 smaller water districts.

The 900 miles of pipe that stretch across the district also have to be replaced on a fairly continual basis in order to help prevent leaks. [There is approximately a 10-12 percent discrepancy between water collected and delivered, much of which is attributed to leaks.] And some of the pipes are over 100 years old, including a pipe from 1883 that had to be replaced near the Hub in San Anselmo last week when it ruptured.

All of this has to be taken into consideration as the committee attempts to weigh the various costs and goals of the district with the needs of its customers and the environment. 

“I’m not against an increase in rates, because everything goes up, but I want it to be fair and equitable,” said committee member Ed Powell, who also served on the previous rate committees.

Right now, in addition, the Marin Municipal Water District is proposing a four percent increase in rates. The average customer’s bi-monthly bill is currently $90.72 and would increase to $94.44. The bi-monthly service charge would also go up four percent.

In a letter to customers, Hellicker said the rate increase is due to increase costs. According to the letter, the Sonoma County Water Agency is increasing the amount it charges by four percent, chemicals used to treat the water are expected to increase in cost by 10 percent, electricity is expected to increase six percent, health insurance premiums are going up seven percent, and the district’s contribution to the employee retirement fund is increasing 4.3 percent.

A public hearing on the rate increase will be held on April 27 at the San Rafael Council Chambers at 7 p.m.