Public Notices
notice of public hearing - Water Rate study
NOTICE TO PROPERTY OWNERS OF PUBLIC HEARING REGARDING PROPOSED WATER RATES
Hearing Date & Time: December 1, 2021, at 6:00 PM
Hearing Location: Phelan Community Center
4128 Warbler Road, Phelan, CA 92371
& Via Zoom/Conference Call*
(visit www.PPHCSD.org for Zoom/conference call information)
Why are you receiving this notice?
The Phelan Piñon Hills Community Services District (the “District”) is mailing this notice to you because you are a water customer directly liable for the payment of water service fees, or the owner of record of a property that receives water service. This notice describes proposed changes to the rates for the District’s water service fees, and provides notice of a public hearing to be held on Wednesday, December 1, 2021, at 6:00 p.m. at the Phelan Community Center, 4128 Warbler Road, Phelan, CA 92371 & via Zoom/conference call regarding these proposed changes.
What do water rates fund?
The District provides water service to approximately 7,100 customers, and monthly water service fees are the primary source of revenue to operate the water system. Service fees fund costs related to system operations, capital projects, debt service, administration, as well as costs related to prudent long-term operational or financial management of the water system, such as maintaining adequate fund reserves and planning for contingencies.
Revenues received from water service fees are used solely to fund the water enterprise. The objective of the proposed five-year rate schedule is to fully fund operations, address capital replacement, and adequately build-up reserves to meet reserve policies through Fiscal Year 2025-2026. In addition, the District needs to ensure adequate funding to address additional capital and operating expenses. The proposed rates for the District’s water service fees are based on a comprehensive rate study prepared by an independent consultant.
Why are rate increases needed?
An adjustment is needed to fully provide the revenue required for operations and maintenance, repayment of loans, funding of reserves, required repairs and/or replacements of capital facilities and equipment, including Comium66 mitigation, civic center development, meter replacement program, and other obligations of the utility. In addition, the increases will fund water purchases, increased pumping costs due to higher electrical rates, capital projects identified in the District’s Water Master Plan, and the Antelope Valley Adjudication settlement.
The proposed rates are based upon the revenue required to operate the system and are comprised of two basic components – a Meter Charge (fixed monthly charge) and Commodity Charges (based on water usage). The projected revenue is based on reviewing historical volumetric usage (consumption), and setting water demand at FY 2021 usage. The Meter Charge is calculated to recover a portion of the fixed costs of providing water service, including billing and customer service, with costs allocated based on the size of a customer’s water meter and the number of accounts. In addition, a fixed monthly charge per bill to recover the costs associated with addressing the Chromium-6 requirements will remain at the current rate equal to $9.71.
The Commodity Charge is based on usage and recovers costs associated with the delivery of water. The Commodity Charge consists of three tiers which will impose higher rates per unit of water (measured in hundreds of cubic feet, or CCF / HCF) as the level of consumption increases. The Tier 1 allotment, equal to 9 CCF, is based on the State’s indoor water efficiency standards of 55 gallons per capita per day, rounded up to the next whole water unit. The Tier 2 allotment, equal to 20 CCF, covers the average amount of water needed to serve the typical single-family home. Tier 3 captures any usage over Tier 2, and covers a proportionate share of costs for the increase in water usage and peaking on the system. It also pays for supplemental water costs to serve demand in the highest tier. The District will annually review revenues and expenditures for the water fund to ensure that sufficient and appropriate revenues are collected to effectively provide for the short and long-term water service needs of the community. Collectively, the proposed rates recover the proportionate share of cost for providing water service to each parcel.
New water rates
The District is proposing to phase in a series of annual water rate adjustments. After the initial rate adjustment on January 1, 2022, the yearly rate adjustments, will take place July 1st of each year, starting on July 1, 2022, in the amounts and period of time set forth in the chart below.
The rates presented herein were developed as part of a comprehensive Cost of Service Study. As part of this detailed process, consumption data by account was analyzed to develop rates specific to each customer class. The total cost of serving various customers is determined by distributing utility cost components among all accounts based upon the respective service requirements of each. As such, a cost of service rate study enables a water utility to proportionately allocate costs to customers based on total accounts, meter size, and consumption. The proposed residential rates incorporate three-tiers, in which Tier 1 includes the first 9 units of water consumption and Tier 2 includes all water used between 9 units and 29 units. Tier 3 includes all units of water over 29 units. Proposed rates for all other classes of customers are uniform, meaning the per-unit charge remains constant, regardless of consumption. Please note that 1 CCF / HCF = 748 gallons.
If adopted, the proposed rates would become effective January 1, 2022, with additional increases phased-in over the following years, through FY 2026, as outlined in this notice. During this time, the Board will confirm the amount of revenue required during the budget process each year and will continue to look for cost saving opportunities and revenue resources in an effort to potentially reduce or suspend the implementation of the proposed maximum rate increases identified in this notice.
Impact on your bill
For a single family home with a 1” meter that uses a 20 HCFs of water, the monthly bill would decrease by $9.74. The accompanying graph provides a summary of proposed and existing water bills under various usage levels. A rate calculator is available on the District’s website at www.PPHCSD.org or CLICK HERE
How do you file a protest or participate in the public hearing?
Any property owner of a parcel upon which the water service fees will be imposed or any tenant directly responsible for the payment of water service fees (i.e., a customer of record) may submit a written protest to the proposed increases to the water service fees; provided, however, only one protest will be counted per identified parcel. Any written protest must: (1) state that the identified property owner or customer of record is in opposition to the proposed water service fees; (2) provide the location of the identified parcel (by assessor’s parcel number or street address); and (3) include the name and signature of the property owner or customer of record submitting the protest. Written protests may be submitted by mail to the Phelan Piñon Hills Community Services District at: 4176 Warbler Road, Phelan, CA 92371, or in person, or at the Public Hearing (date and time noted above). Regardless of how the written protest is submitted, it must be received by the District prior to the conclusion of the Public Hearing. Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any written protest, whether mailed or submitted in person to the Board Secretary, that the enclosed protest is for the Public Hearing on the Proposed Water Service Fees.
The Board of Directors will hear and consider all written and oral protests to the proposed rate increases at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest, submitted prior to the conclusion of the Public Hearing. Upon the conclusion of the Public Hearing, the Board of Directors will consider adoption of the proposed rates for water service described in this notice. If written protests against the proposed rates, as outlined above, are not presented by a majority of property owners or customers of record, the Board of Directors may adopt the proposed rates. If adopted, the proposed rates for the water rates will be in effect beginning January 1, 2022, and be adjusted each July 1 beginning in 2022 and thereafter through July 1, 2025.
If you have any questions about the proposed rate increase, please contact the District at
(760) 868-1212 during normal business hours.
Visit https://www.pphcsd.org for current meeting and workshop schedule.
Hearing Date & Time: December 1, 2021, at 6:00 PM
Hearing Location: Phelan Community Center
4128 Warbler Road, Phelan, CA 92371
& Via Zoom/Conference Call*
(visit www.PPHCSD.org for Zoom/conference call information)
Why are you receiving this notice?
The Phelan Piñon Hills Community Services District (the “District”) is mailing this notice to you because you are a water customer directly liable for the payment of water service fees, or the owner of record of a property that receives water service. This notice describes proposed changes to the rates for the District’s water service fees, and provides notice of a public hearing to be held on Wednesday, December 1, 2021, at 6:00 p.m. at the Phelan Community Center, 4128 Warbler Road, Phelan, CA 92371 & via Zoom/conference call regarding these proposed changes.
What do water rates fund?
The District provides water service to approximately 7,100 customers, and monthly water service fees are the primary source of revenue to operate the water system. Service fees fund costs related to system operations, capital projects, debt service, administration, as well as costs related to prudent long-term operational or financial management of the water system, such as maintaining adequate fund reserves and planning for contingencies.
Revenues received from water service fees are used solely to fund the water enterprise. The objective of the proposed five-year rate schedule is to fully fund operations, address capital replacement, and adequately build-up reserves to meet reserve policies through Fiscal Year 2025-2026. In addition, the District needs to ensure adequate funding to address additional capital and operating expenses. The proposed rates for the District’s water service fees are based on a comprehensive rate study prepared by an independent consultant.
Why are rate increases needed?
An adjustment is needed to fully provide the revenue required for operations and maintenance, repayment of loans, funding of reserves, required repairs and/or replacements of capital facilities and equipment, including Comium66 mitigation, civic center development, meter replacement program, and other obligations of the utility. In addition, the increases will fund water purchases, increased pumping costs due to higher electrical rates, capital projects identified in the District’s Water Master Plan, and the Antelope Valley Adjudication settlement.
The proposed rates are based upon the revenue required to operate the system and are comprised of two basic components – a Meter Charge (fixed monthly charge) and Commodity Charges (based on water usage). The projected revenue is based on reviewing historical volumetric usage (consumption), and setting water demand at FY 2021 usage. The Meter Charge is calculated to recover a portion of the fixed costs of providing water service, including billing and customer service, with costs allocated based on the size of a customer’s water meter and the number of accounts. In addition, a fixed monthly charge per bill to recover the costs associated with addressing the Chromium-6 requirements will remain at the current rate equal to $9.71.
The Commodity Charge is based on usage and recovers costs associated with the delivery of water. The Commodity Charge consists of three tiers which will impose higher rates per unit of water (measured in hundreds of cubic feet, or CCF / HCF) as the level of consumption increases. The Tier 1 allotment, equal to 9 CCF, is based on the State’s indoor water efficiency standards of 55 gallons per capita per day, rounded up to the next whole water unit. The Tier 2 allotment, equal to 20 CCF, covers the average amount of water needed to serve the typical single-family home. Tier 3 captures any usage over Tier 2, and covers a proportionate share of costs for the increase in water usage and peaking on the system. It also pays for supplemental water costs to serve demand in the highest tier. The District will annually review revenues and expenditures for the water fund to ensure that sufficient and appropriate revenues are collected to effectively provide for the short and long-term water service needs of the community. Collectively, the proposed rates recover the proportionate share of cost for providing water service to each parcel.
New water rates
The District is proposing to phase in a series of annual water rate adjustments. After the initial rate adjustment on January 1, 2022, the yearly rate adjustments, will take place July 1st of each year, starting on July 1, 2022, in the amounts and period of time set forth in the chart below.
The rates presented herein were developed as part of a comprehensive Cost of Service Study. As part of this detailed process, consumption data by account was analyzed to develop rates specific to each customer class. The total cost of serving various customers is determined by distributing utility cost components among all accounts based upon the respective service requirements of each. As such, a cost of service rate study enables a water utility to proportionately allocate costs to customers based on total accounts, meter size, and consumption. The proposed residential rates incorporate three-tiers, in which Tier 1 includes the first 9 units of water consumption and Tier 2 includes all water used between 9 units and 29 units. Tier 3 includes all units of water over 29 units. Proposed rates for all other classes of customers are uniform, meaning the per-unit charge remains constant, regardless of consumption. Please note that 1 CCF / HCF = 748 gallons.
If adopted, the proposed rates would become effective January 1, 2022, with additional increases phased-in over the following years, through FY 2026, as outlined in this notice. During this time, the Board will confirm the amount of revenue required during the budget process each year and will continue to look for cost saving opportunities and revenue resources in an effort to potentially reduce or suspend the implementation of the proposed maximum rate increases identified in this notice.
Impact on your bill
For a single family home with a 1” meter that uses a 20 HCFs of water, the monthly bill would decrease by $9.74. The accompanying graph provides a summary of proposed and existing water bills under various usage levels. A rate calculator is available on the District’s website at www.PPHCSD.org or CLICK HERE
How do you file a protest or participate in the public hearing?
Any property owner of a parcel upon which the water service fees will be imposed or any tenant directly responsible for the payment of water service fees (i.e., a customer of record) may submit a written protest to the proposed increases to the water service fees; provided, however, only one protest will be counted per identified parcel. Any written protest must: (1) state that the identified property owner or customer of record is in opposition to the proposed water service fees; (2) provide the location of the identified parcel (by assessor’s parcel number or street address); and (3) include the name and signature of the property owner or customer of record submitting the protest. Written protests may be submitted by mail to the Phelan Piñon Hills Community Services District at: 4176 Warbler Road, Phelan, CA 92371, or in person, or at the Public Hearing (date and time noted above). Regardless of how the written protest is submitted, it must be received by the District prior to the conclusion of the Public Hearing. Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any written protest, whether mailed or submitted in person to the Board Secretary, that the enclosed protest is for the Public Hearing on the Proposed Water Service Fees.
The Board of Directors will hear and consider all written and oral protests to the proposed rate increases at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest, submitted prior to the conclusion of the Public Hearing. Upon the conclusion of the Public Hearing, the Board of Directors will consider adoption of the proposed rates for water service described in this notice. If written protests against the proposed rates, as outlined above, are not presented by a majority of property owners or customers of record, the Board of Directors may adopt the proposed rates. If adopted, the proposed rates for the water rates will be in effect beginning January 1, 2022, and be adjusted each July 1 beginning in 2022 and thereafter through July 1, 2025.
If you have any questions about the proposed rate increase, please contact the District at
(760) 868-1212 during normal business hours.
Visit https://www.pphcsd.org for current meeting and workshop schedule.
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