KINGS BEACH, Calif. – The Board of Directors of the North Tahoe Public Utility District will consider raising its monthly water and wastewater rates at a public hearing on March 7 at 5 p.m. It will be held at the North Tahoe Event Center, 8318 North Lake Boulevard, Kings Beach.

According to the NTPUD website, under this proposal the average single family water bill will go from $85.14 a month now to $148.61 a month in 2028. The wastewater bill will go from its current $51.85 to $87.37 in 2028. Rates are based on consumption.

Single family residential customers can calculate their projected monthly water bill with the Utility Rate Calculator.

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For the utility rate calculator, go to https://ntpud.org/utility-rate-calculator/.

After the close of the public hearing, the board will establish the water and wastewater rates for fiscal years 2024/2025, 2025/2026, 2026/2027, 2027/2028, and 2028/2029.

The average single-family residential monthly water bill will be:

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current rate $85.14; July 1, 2024, $97.91; July 1, 2025, $108.68; July 1, 2026, $120.63; July 1, 2027, $133.90; July 1, 2028, $148.61.

The average single-family residential monthly wastewater bill will be:

current rate $51.85; July 1, 2024, $57.55; July 1, 2025, $63.89; July 1, 2026, $70.91; July 1, 2027, $78.71; July 1, 2028, $87.37.

For the proposed rate adjustments, go to https://ntpud.org/wp-content/uploads/2024/01/NTPUD-Rate-Adjustment-Web-2024.pdf.

For the proposed water and wastewater rates, go to https://ntpud.org/proposed-rate-adjustments/#proposedrates.

The NTPUD’s water and wastewater rates fund operations, maintenance, and the construction of critical infrastructure. Proposition 218 requires that the NTPUD base its rates on the cost of providing water and wastewater services that include current and future infrastructure replacement. It mandates that the NTPUD may not collect more revenue than is necessary to recover the costs of providing those services.

The board welcomes community input and will consider public comments and written protests at the hearing.

Written protests need to be received prior to the close of the hearing.

After the close of the public hearing, the board will establish the water and wastewater rates for fiscal years 2024/2025, 2025/2026, 2026/2027, 2027/2028, and 2028/2029. Final rates may be less than, but may not exceed, the proposed adjustments.

The board will also have to vote in each consecutive year to implement that year’s new rates, according to Justin Broglio, NTPUD public information officer.

For the rate hearing process, go to https://ntpud.org/proposed-rate-adjustments/#ratehearingprocess.

For the rate study documents and past meetings, go to https://ntpud.org/proposed-rate-adjustments/#rateassessmentdocuments.

For the interactive project map, go to https://storymaps.arcgis.com/stories/5a148d7567c54fbb9bd762e1ab437aa0.

Water and wastewater rate adjustments are subject to Proposition 218.

If a majority of NTPUD customers file a valid written protest for a proposed rate adjustment, then it cannot take effect. This needs to be done for each proposed rate adjustment.

One protest per parcel can be accepted. If a property owner and their tenant responsible for paying the water and/or wastewater bill file separate protests for the same parcel, only one protest will be counted. Customers receiving water and wastewater service can submit protests on either or both services, and protests for both services can be submitted in a single document.

How to File a Protest

Protests must be received by the NTPUD before the close of the public hearing on March 7.

Under California Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge. This statute of limitations applies to the water and wastewater service rates and charges proposed in this notice, and begins on the date that the resolution adopting the rates becomes effective.

To Complete a Valid Written Protest:

• Submit a letter that states: “I protest the water and/or wastewater rate adjustment.”

• Sign your protest and print your name. All letters must include the customer’s or property owner’s signature to be valid. An electronic signature cannot be counted.
• Include your utility account number and the service address or Assessor’s Parcel Number for the utility account. Property owners who lease their property and do not pay for water and/or wastewater service are only required to list the service address or APN.
• Deliver the written protest to NTPUD:
  • Mail your letter to NTPUD Proposed Rate Adjustment, c/o NTPUD, P.O. Box 139, Tahoe Vista, Calif. 96148;
  • Hand deliver it to the NTPUD Administration Offices at 875 National Avenue, Tahoe Vista, Calif. 96148;
  • Hand deliver it to the district clerk prior to the close of the public hearing.

NTPUD Proposed Five-Year Rate Adjustment

In 2022, NTPUD hired an independent consultant and began a comprehensive cost-of-service study to determine whether existing rates and property taxes were sufficient to meet the system rehabilitation and replacement needs. This is in addition to the NTPUD’s operational costs for the water and wastewater systems.

The rate structure was also assessed for compliance with industry best practices and California state law. California Proposition 218 requires each customer class to be charged only what is required to cover their respective proportional cost-of-service. Water rates can only be used to fund water system costs, and wastewater rates can only be used to fund wastewater system costs.

The study determined annual rate adjustments are necessary over the next five years to continue providing reliable and sustainable water and wastewater services. NTPUD’s existing rates and property taxes are not sufficient to pay for the necessary infrastructure investments and meet operational costs.

The proposed water and wastewater rate hikes are triggered by many factors including:

• Identified infrastructure improvements necessary to address end of service life system rehabilitation and replacement before failure.
• Identified water infrastructure improvements to provide fire suppression.
• Increased cost of construction, supplies, materials, labor and utilities.

NTPUD identified necessary rate restructuring to ensure continued compliance with Proposition 218. As a result, the bill impact in the first year of the proposed rate adjustments will not be the same across all customer classes.

Even with the proposed rate increases over the next five-year rate period, NTPUD’s fees remain consistent with the other water and wastewater service providers in the region.

Investing in infrastructure

NTPUD’s water system contains more than 53 miles of water distribution pipelines, five pump stations, eight water storage tanks, a water treatment plant, two groundwater wells, and one inter-tie with the Tahoe City Public Utility District. NTPUD provides almost 1,000,000 gallons of potable water per day to our customers.

NTPUD’s wastewater system has more than 73 miles of collection main pipeline, 7.5 miles of force main pipeline, four primary pump stations, and 16 secondary pump stations. NTPUD collects nearly 1,000,000 gallons of wastewater per day. Then it pumps it to the Tahoe-Truckee Sanitation Agency for treatment.

The average age of the NTPUD’s utility infrastructure is more than 50 years old. Even with continuous maintenance and investment, a lot of the system is approaching the end of its service life, NTPUD stated on its website.

In 2017, NTPUD developed a Capital Improvement Plan (CIP) that identified more than $51 million in necessary system rehabilitation and replacement over the next 20 years. Since then, NTPUD has strategically invested to bring parts of the aging water and wastewater systems to modern standards.

There is more work to be done and progress has been hampered by the inflation, NTPUD stated on its website.

Building a Wildfire-Resilient Lake Tahoe

NTPUD is the primary water supplier for North Lake Tahoe. It has a critical role in community wildfire protection.

NTPUD wants to ensure there is a fire hydrant on every neighborhood street so there’s reliable and redundant water supply to fight fires.

A top priority in NTPUD’s CIP is improving water infrastructure for fire suppression.

In conjunction with Tahoe City PUD and South Tahoe PUD, NTPUD is working to secure federal and state funding. If allocated this additional funding, it will not be enough to provide the needed support for the necessary investments to protect our communities.

Planned Upgrades and Improvements

• Water Distribution Pipeline Replacement and Fire Protection Upgrades: There’s three miles of water distribution pipelines identified for replacement and upgrade. It will replace undersized and failing water pipelines with larger diameter modern pipelines to increase available fire protection flows. It will also install new fire hydrants.
• Water System Pump Station Improvements: It calls for replacing and rehabilitating pumps, motors and motor control centers that have reached the end of their service life.
• National Avenue Water Treatment Plant Upgrades: It will complete necessary end-of-life equipment replacements and control system upgrades at the water treatment plant.
• Smart Metering throughout the District: It will replace aging water meters in NTPUD’s three water systems with modern smart meters. Smart meters will allow for remote collection of water use data in real-time. This technology provides more accurate measurement, leak detection and improved efficiency resulting in water savings.
• Secondary Wastewater Pump Station Upgrades: It will rehabilitate or replace eight of the secondary stations (that date to 1969) and have reached the end of their service life.
• Wastewater Collection Main Rehabilitation: It will rehabilitate three miles of wastewater collection main pipeline that are showing signs of failure.
• Wastewater Force Main Condition Assessment: It will do a comprehensive condition assessment of NTPUD’s wastewater export force main pipeline to develop rehabilitation and service life extension recommendations. It was installed in 1968 and approaching the end of its service life.
• District Fleet, Electrification and Corporation Yard Improvements: It will replace pieces of heavy equipment and vehicles that have reached the end of their service life. Beginning in 2027, the NTPUD fleet must move toward electrification in accordance with California Air Resources Board’s Advanced Clean Fleet requirements. This includes upgrades and seismic retrofits to corporation yard buildings and facilities.

Prioritizing Property Tax Revenue for Reinvestment

In NTPUD’s rate assessment, it plans to change where the property tax funds are spent. Currently, NTPUD uses part of the property tax revenues to subsidize indirect operating costs of the water and wastewater utilities. The proposed rate adjustments allow NTPUD to fund these operations through rate revenues and direct property tax revenue into critical infrastructure projects.

Rate Relief Assistance Program

In July 2024, NTPUD will offer a Rate Relief Assistance Program to income-qualified customers for their primary residence. Details will be available in summer 2024.