Projects Completed and Rate Adjustments Coming

Your public utility’s team has completed or virtually completed a pipeline replacement project on the 2300 block of Teasley Street (near Briggs Avenue). At 800 feet, this is our sixth and most ambitious project to date. For the past several weeks, our team has been excavating, laying and welding concrete-lined steel pipeline in challenging conditions. We’ve pulled 28-30 rocks/boulders. We’ve run into difficulties with other utility lines running over our water mains (because their plans and drawings were incorrect), leading to unplanned work stoppages. 

For most of the world that contracts out this kind of work, these would have led to hundreds of thousands of dollars of what’s called “change orders,” which is what contractors charge for unanticipated hurdles that lead to higher costs on their end. This is why Crescenta Valley Water District committed to pursuing an in-house pipeline program. In a world of many uncontrollable factors, such as drought, the cost of purchased water, increasing energy costs and protecting you by proactively tackling water quality issues such as PFAS, pipeline replacement was one of the areas we identified where we might be able to control our costs. We can control change orders, get ahead of supply chain shocks by stockpiling materials, beat inflation, demand the highest work quality standards to prolong pipeline life, insulate ourselves from the impact of tariffs, etc. 

We’ve shot a few videos (with in-house resources, of course) that you may find of interest.  www.youtube.com/@crescentavalleywaterdistrict/videos. Have a watch! 

We’ve had ongoing outreach to the community regarding our rate discussion with anticipated rate adjustments and increases by July of this year. Since last fall, we’ve held a series of meetings at the La Crescenta Library, we’ve met with HOAs, we’ve published ads and articles in this paper, and we’ve solicited input and feedback from the community through the above meetings and conversations with those who have engaged in dialogue frequently, and with a survey to the community. This input and feedback substantively shaped the policy directives of our board of directors regarding our approach with rates. We will host additional town hall meetings during the weekday/end and AM/PM to accommodate as many schedules as possible. 

The primary proposed change to rates is a significant one in that it’s a change in the rate structure itself. The new rate structure, called a “budget-based” rate structure, is what it sounds like. Each household’s budget for water will be individualized based on household size (indoor water usage) and the amount of lot size needing irrigation (outdoor water usage). The reason for this proposal is that a budget-based rate structure most appropriately promotes fairness and equity for various types of customers while aligning water usage targets with evolving California regulations. We are also proposing to shift more of your bill to the service charge. Most of our costs, such as infrastructure, power, treatment, etc., are fixed, and this shift will provide more stable and predictable revenue, which is important for a utility planning the community’s short and long-term needs. Finally, based on years of feedback about a preference for monthly billing, we are planning to make the change away from the current practice of bi-monthly billing. 

The overall level of rates will need to increase, as with most other costs in this world. 

“I like increased costs,” said nobody ever. That said, I hope you recognize the importance of reliable and safe water and wastewater service both for day-to-day or emergencies, such as fires and earthquakes. And though we are doing everything we can to operate outside of the box by controlling what we can, such as the above discussion on in-house pipeline or the grants, regional partnerships, stormwater capture, etc., our best effort (and I believe that it’s an excellent effort) is to balance mitigating rate increases while providing the reliability and high level of customer service you should expect. 

Thank you for your input. Please stay engaged and I am asking for your support in helping us help you. 

In closing, I’d like to welcome Lilit Danelyan, our new project coordinator. She is a local and graduate of UCLA who brings a broad base of experience ranging from technical to customer service and stakeholder engagement. She will be responsible for a broad range of duties, including facilitating cross-functional teams at the District. 

Thank you as always for taking the time to read and for continuing the dialogue.