STPUD planned rate increase to be voted on after public hearing on May 16

SOUTH LAKE TAHOE, Calif. - The South Tahoe Public Utility District (STPUD) will consider raising water and sewer rates at its May 16 board meeting. The public has been invited to public meetings over the past several months, and now they are invited to participate in the final step to raise rates for water and sewer customers. STPUD says $132 million is needed over the next ten years to bring the system up to par.

After the STPUD board's budget workshop on March 19, a Prop. 218 notice was issued for the rate increase. Proposition 218 limits the ways local governments can raise taxes and fees without taxpayer consent. Public participation in meetings has been made available for the board to hear concerns, and complaints, and have their questions answered. Prop. 218 also states fees shall not exceed the reasonable cost of providing the service, and they shall not exceed the proportional cost of providing the service.

STPUD was approved for a rate increase just before COVID, but the agency decided to not implement all of the annual increases at that time. Instead, they now find themselves with over 150 needed projects and programs as a system nearing, or past, the end of its 50-year lifespan.

Also added into the mix is the number of emergencies that STPUD has had to fix over the years including the Caldor Fire, the winter damage and sewer collection runoff in 2017 and 2023, and floods after the Tamarack and Alpine fires. An avalanche also took out equipment at Fallen Leaf Lake.

STPUD operates four systems that are worth about $2.2B (Water Production and Distribution, Sewer Collection, Wastewater Treatment, and Recycled Water):

Water System - STPUD has 14,200 connections, 253 miles of waterlines, 31 pressure zones, 11 active wells, operates with 100% groundwater, 15 booster stations, 19 PRV stations, and 19 storage tanks.

Wastewater System - 18,300 connections, 312 miles of gravity sewers, 39 pump stations, 19 miles force mains, Treatment Plant, 3.5 MGD Average Flow, 7.7 MGD Rated Flow, 18 MGD Peak Flow

Recycled Water System - 26 miles export pipeline, Luther Pass pump station, Diamond Valley Ranch, two dams, two Reservoirs, ditch conveyance system, 3,000 acres utilized, pasture irrigation/grazing, alfalfa production, hydroelectric energy recovery - 100% recycled

It now costs $2 million to replace one mile of water line.

If the rate increase is approved:

Waterline Replacements
Goal: Finish fire security projects and return to the Pre-2010 Replacement Rate
• 2 miles new main on Pioneer
• 15 miles undersized mains
• 16 miles poor condition mains
Value: $85M ($9M increase)
Funding: State-subsidized low-interest loans (pending)
Grants (pending)
Rates

Wells Asset Management
Goal: Implement routine well inspection and rehabilitation program
• Inspect and perform maintenance on one well per year
Value: $4M (new this year)
Funding: Rates

Sewer Collection System
Goal: Find and reduce groundwater and stormwater entering the system, to reduce pumping costs and protect against emergency spills
• Establish ongoing program valued at $1.1M per year to repair the highest-risk pipes and manholes
Value: $11M ($5.6M new this year)
Funding: Rates

Wastewater Treatment Plant
Goal: Replace facilities that have outlived their useful lives
• Replace Holding Ponds
• Replace RAS System
• Replace Shops Facilities
Value: $15.6M ($6M increase)
Funding: State-subsidized low-interest loans (future)
Rates

Recycled Water System
Goal: Comply with regulatory requirements prohibiting winter releases from Harvey Place Reservoir
• Construct on-site emergency holding ponds
• Intercept surface water runoff and route to Indian Creek Reservoir
Value: $10M (new this year)
Funding: Rates
Grants (Future)

If approved, the rate increase will go into effect on July 1, 2024. See rate increased in the photos above.

Agenda for the regularly scheduled board meeting on Thursday, May 16 at 2 p.m. https://stpud.us/assets/board/agenda/District-Board-Agenda-Packet-05-16-24.pdf