As a local water supplier, Crescenta Valley Water District (CVWD) values the input of our customers and is committed to involving them in all aspects of our operations.

In early 2020, CVWD staff formed a Community Advisory Committee (CAC) to gather input on funding for capital improvement programs, specifically pipeline replacements. Committee members applied for the role and were selected based on their familiarity with the issues and their interest.

Most recently, staff and the Board heard comments from the CAC regarding whether raising bonds or raising rates is the preferred method for a long-term funding strategy to address aging infrastructure and ensure future reliability. Another question was an assessment of the extent to which system maintenance and improvements have been deferred.

With the feedback from the CAC and considering many other factors the Board decided to move forward with utilizing rates to generate revenue to fund much-needed capital improvements. The feedback provided by the CAC on this broad policy topic was extremely helpful in this decision-making process, and staff felt it was important for the Board to hear it before taking action. Soliciting feedback is consistent with our commitment to transparency, and the District acts in accordance with laws governing transparency with the public.

While the CAC’s formal contribution on this issue has been satisfied, individual members are encouraged to continue attending committee meetings and Board meetings to stay informed and comment on agenda items. Staff is also available to answer specific questions regarding our operations and planning efforts.

Currently, the District is conducting a cost-of-service study to ensure we are meeting our commitment to provide safe and dependable service at the lowest possible cost. Lately, there has been some confusion about that process and our effort to gather public input on policy issues that will help ensure long-term reliability of our water supply.

As is best industry practice, rates are evaluated every five years by an independent financial expert to ensure we are covering the cost of operations, including capital projects and maintenance of the wells, pipelines and equipment in the delivery system. The cost-of-service study determines how rates are allocated between various customer classes.

The cost-of-service study will be presented by the consultant to the Finance Committee in the coming weeks, and the District invites continued participation from the community. The study will be presented to the Board and adopted before a formal notice is sent to customers in late July/early August in accordance with Proposition 218 requirements.

Water rates are based directly on the cost of providing service for our single-family, multi-family and commercial customers. In other words, customers pay for their appropriate share of the burden they place on the system and infrastructure. CVWD uses a tiered rate structure for single-family customers, which represents the vast majority of customers. Tiered rates incorporate considerations for “peaking” – periods when water use surges across the entire service area, which drives up the cost to meet demand – for example, early mornings when sprinklers are running is a peak time of use. Additionally, because single-family homes typically use more water for irrigation, which is beyond what is considered water “for essential use,” they also use more water during peak times, and the tiered rate structure reflects this cost.

For commercial and multi-family customers, most water use is indoors, and they are subject to lower peaking factors. In other words, the system does not need to be sized to meet what are typically lower peaks from these customers. Also, new or converted multi-family units are now required to have individual meters and are billed on the same tiered rate structure as single-family customers.

Producing and delivering clean, reliable water is our mission, and it is a complicated business. In the interest of transparency and accountability, we encourage our customers to attend our upcoming Board and Committee meetings and ask questions about our operations. Meeting dates and times will be available on our website, www.cvwd.com, and you can sign up for automatic meeting notifications.

Nemesciano Ochoa, P.E., General Manager,
Crescenta Valley Water District