March 12 Rate Study Workshop

Board to Review Water, Sewer, and Recycled Water Facility Needs and Rate Scenarios

The public is invited to the March 12, 2024, Workshop.

On March 12, the Marina Coast Water District Board of Directors will review and provide input on proposed facility investment and rate scenarios with an independent rate consultant and staff. The Board will seek to maintain the District's affordable rates while also obtaining sufficient revenue to increase the pace of re-investment in aging water and sewer pipelines, pumps, reservoirs, and other facilities.

Historically, the District has invested about $600,000 per year — spread across all utilities (sewer, water, and recycled water) — to renew and replace aging facilities that are critically needed to provide water
and sewer service to customers. This is below the industry standard. As the system ages, additional investment is needed to ensure the system can reliably serve customers every day and around the clock.

In recent years, the pace of investment has increased to about $3.5 million or more per year. However, a recent in-depth engineering review has found that the pace of infrastructure investment must be accelerated to ensure that water and sanitary sewer service will continue to be reliable for our customers.

Two rate and capital facility spending scenarios will be presented for discussion and consideration by the Board. The Board will need to identify the appropriate balance between limiting rate increases and funding sufficient infrastructure rehabilitation to maintain a reliable system. The scenarios under consideration will be:

Scenario 1: Full capital investment in facilities

Scenario 2: Measured capital investment in facilities

Everyone is welcome to attend the workshop on Tuesday, March 12 at 6:00 PM. For your convenience, there are several ways to participate and learn more:

• Participate online via Zoom webinar or listen via telephone. Details are at:
  https://www.mcwd.org/customer_service_rate_update_2024.php
• Attend the meeting in person at the District Boardroom, 920 2nd Avenue, Suite A, Marina
• Review the agenda and project attachments at Marina Coast Water District Public Board and Committee Meetings. Details will be provided soon.

Learn more on our website at the Rate Update 2024 webpage.

Steps already taken to increase efficiency and lower costs before considering rate changes. In the face of constantly rising operational and administrative costs, MCWD takes ongoing action to keep costs
down. For example:

• The District obtained about $9.9 million in grants in the last 5 years.
• Staff completed large facility projects in-house, saving time and money from outsourcing.
• Staff optimized water pump stations to ensure the District does most pumping during the lowest cost PG&E hours.
• Staff are cross trained to perform water, sewer, recycled water distribution, sewer collections, pumps, and mechanical functions, reducing the number of staff needed and allowing for a quicker response.
• Continued major decrease in overtime cost without affecting deliverables.
• Did not fill an HR position and instead absorbed that work in other areas, lowering labor costs.

The District will continue to provide updates and information as the study progresses on social media, e-news, mailed notices, and more. For more information, contact us at customerservice@mcwd.org or call (831) 384-6131.