Solvang City Council adopts water, sewer rate increases; citizens voice concerns | Government and Politics | syvnews.com

2022-06-18 20:07:15 By : Mr. Peter Kuang

As part of the water rate increase for Solvang, commercial accounts such as hotels and restaurants, would also see a higher charge under the new fee schedule. Solvang Park, where a bust of Hans Chrisitian Andersen resides, is surrounded by commerce.

Single-family residences in Solvang will see a rise in their water rates. Above is a comparison between the present rate and what was proposed. The City Council voted unanimously on Monday to implement the rates. 

Solvang resident Frank Smithson, who moved to Solvang a year ago, expressed his dissent over water rate increases. He said he had already done his part to keep his water usage down by installing artificial turf and drip irrigation lines, and covers his swimming pool to reduce water loss to evaporation. He said the new fixed rate schedule was unfair as he would have no control over fees.

Solvang’s utility rates have not been updated since 2016, and the last utility rate study was performed in 2011. The graph compares data with other cities in the region.

June 13th City Council Meeting

The Solvang City Council on Monday voted unanimously to adopt a water and sewer rate structure that will increase residential, commercial and industrial rates incrementally over the next five years.

Water rates will increase based upon water meter size, based on the premise that larger water meters place a heavier burden on the system. In addition, the newly adopted rate structure moves from a two-tier water usage rate structure to one with three water-use tiers.

The wastewater fee structure is more straightforward, with charges to increase gradually for both residential and commercial customers. 

“We’re all in the same boat. I would just appreciate it if we don’t … say ‘us’ and ‘you guys,’ because we’re all in this together, all right?" said Mayor Charlie Uhrig in an attempt to discourage an "us" versus "them" mentality. "Everything we do up here reflects us as well as it does you, so it’s not ‘us’ against ‘you’ and ‘they’ or whoever ‘they’ are.” 

A handful of residents took to the dais Monday to speak out against the rate adjustment.

Single-family residences in Solvang will see a rise in their water rates. Above is a comparison between the present rate and what was proposed. The City Council voted unanimously on Monday to implement the rates. 

“How do you expect people to conserve, to keep their bill down, if these other fees we have no control over. … I can cut back on my water more, but I’ve already done that,” said Frank Smithson who moved to Solvang a year ago.

Smithson, who noted his fixed rate will go from $27 to $147 in five years, said he already has artificial turf, drip irrigation lines, and covers his swimming pool to reduce water loss to evaporation.

“So I’m doing everything I can do, and just I don’t think it’s fair,” he said.

Solvang’s utility rates have not been updated since 2016, according to City Manager Xenia Bradford, and the last utility rate study was performed in 2011. Meanwhile, the city is facing water and wastewater critical infrastructure maintenance and upgrade expenses.

In 2021, the city contracted with HDR Engineering to complete a rate study. The study was modified by company representative Shawn Koorn after the agency received input from city staff, the council and public input.

To illustrate the new water usage rate structure, Koorn gave an example of an average single-family residence currently paying $103.03 per month. In 2023, that rate would increase to $107.72 per month, a 4.5% increase, with incremental increase each of the next three years.

Solvang’s utility rates have not been updated since 2016, and the last utility rate study was performed in 2011. The graph compares data with other cities in the region.

Under the new wastewater fee structure, the fixed charge for a single-family residence would increase from $34.65 per month to $49.88 in 2022-23 and incrementally each year to $91.87 in 2026-2027. Multifamily residences would see an increase from the current $34.65 per month rate to $88.22 in 2026-27.

Commercial and industrial accounts would see increases from today’s $34.65 rate to $72.63 with the additional volumetric charge of today’s $2.85 per 100 cubic feet to $7.47. Heavy commercial and industrial users’ base rates would increase similarly from $34.65 per month base rate to $77.60 in 2026-27, plus from $7.42 per 100 cubic foot volumetric charge to $14.53.

Solvang Utilities Director Jose Acosta said the rate increases were requested “to provide adequate funding flows allowing city staff to operate and maintain the city’s water and wastewater infrastructure” and to “make needed improvements for aging infrastructure and improvements for safety of the community.”

According to Koorn, major water delivery system improvements required include replacing aging pipelines, and refurbishing wells and reservoirs. The wastewater/sewer system also requires upgrades to enable the city to meet the required discharge permit components.

Long-term borrowing for necessary capital improvements includes an estimated $6.25 million to meet water system needs and $19 million for the wastewater system.

As part of the water rate increase for Solvang, commercial accounts such as hotels and restaurants, would also see a higher charge under the new fee schedule. Solvang Park, where a bust of Hans Chrisitian Andersen resides, is surrounded by commerce.

Councilman Mark Infanti noted the city’s general fund cannot continue to absorb the water and sewer costs.

“That’s why we’re looking at increasing sales tax: to increase our general fund because it’s not adequate to handle all the capital improvement projects and then handle the weight of water and wastewater,” he said.

The council received 41 written protests to the new rates. The city provides water and wastewater services to about 2,300 customers.

Skytt Mesa resident Denise El Amin took issue with the fixed base rate structure, and asked that the city rethink the structure for residents who have low water usage.

“If I go to my mother’s house and take a bath there, my water bill’s not going to go down,” El Amin said.

Councilwoman Claudia Orona noted that other towns have based their rates solely on usage only to be faced with litigation. In addition, such a structure can lead to deficiencies in funding infrastructure if users cut back significantly on use.

“If everyone conserves water at the same time, there’s no funding coming on to fund these services, and this needs to be sustainable no matter what. You need to cover costs to operate your wastewater treatment plant, to drink the water, and to service the piping, whether you’re using it or not,” she said.

Solvang resident Frank Smithson, who moved to Solvang a year ago, expressed his dissent over water rate increases. He said he had already done his part to keep his water usage down by installing artificial turf and drip irrigation lines, and covers his swimming pool to reduce water loss to evaporation. He said the new fixed rate schedule was unfair as he would have no control over fees.

Jill Goldworn, a resident since 1999, said she felt she already pays “way too much for water; more than I pay for any other utility.” She wanted to know how to cut her expenses, given the fixed base rate, since she has already cut back on her water usage and sees a monthly bill that averages $500.

“I’ve tried everything. My grass is dead. I just hand-water my herbs and roses just so I can have a little beautification in my home, and I’ve reduced and limited water in every way possible. I wash my clothes at once one time a week. I wear things multiple times so I don’t have to wash. Taking baths, my favorite thing, can’t afford to do that,” she said.

While she understood council members all live in the city and face the same fees, she disagreed with the proposal.

“You make these decisions, and on paper 8.8% doesn't sound like a lot, but it’s a lot, especially if you can’t control it, if you can’t lower it by taking active action to make some changes in your life, but yet you're stuck with the fixed fees. It just doesn't seem like a reasonable thing,” she said.

Orona took umbrage with the idea that people may give up on conservation if they felt they could not overcome the fixed rate increases anyway.

“We don’t conserve just to bring our bill down. We conserve it because we want it to be available for generations to come,” Orona said.

Uhrig again noted every resident of Solvang was “in the same boat” and reminded viewers the city has “had to purchase almost $1 million in state water because we can’t get enough state water.”

In answer to Councilman Robert Clarke addressing some residents’ voiced concerns that hotels wouldn’t be paying their fair share, Acosta noted hotel and commercial consumption is significant. As an example, a hotel using a 4-inch water line pays a flat $1,900 fee for water service. In addition, a hotel can average $1,200 per month in water use fee, while some use more and others use less.

“… I hate to vote ‘yes’ on this because I live here too; I pay for it too. But unfortunately we want to make sure we are able to provide the water, you know, the services that our community needs,” Orona said.

The complete fee schedule is in the agenda packet posted at www.cityofsolvang.com/AgendaCenter/City-Council-2.

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