Oxnard water cost of service study released- on 7/11 Council agenda

By George Miller

A draft of the water cost of service study required for Proposition 218 compliance to justify utility rates was released by Oxnard this week. Prepared by consulting firm Carollo Engineers and Oxnard staff, it sets the stage for rate increases scheduled for September 1.  This  will be discussed at the Tuesday, July 11 City Council meeting (AGENDA)


  Public Works Department
1. SUBJECT: Public Hearing Regarding and First Reading of Ordinance for Water Rate Increases (30/30/60) 
That City Council:
1. Holds a public hearing to receive public testimony and consider all protests concerning the adoption of an ordinance establishing water system user fees and charges.2. Finds that, according to the CEQA exemption listed in 14 CCR section 15273, CEQA does not apply because this ordinance establishes rates, which the Council finds are for the purposes of: meeting operating expenses, including employee wage rates and fringe benefits; purchasing or leasing supplies, equipment, or materials; meeting financial reserve needs and requirements; and obtaining funds for capital projects, necessary to maintain service within existing service areas.3. Approves the introduction and first reading by title only and waives further reading of an ordinance establishing fees and charges for the use of and for services relating to City water services. 
Legislative Body: CC Contact: Daniel Rydberg Phone: 385-8055
Document: K1 Agenda Report
Document: K1 Attachment – Cost of Service Study
Document: K1 Presentation

July 2017


Water demand will not even reach 2012 levels by FY 2021/2, even with thousands of added housing units and economic growth. This is because of the drought and associated conservations measures, even though the latter have been eased (see chart below)

George Miller is Publisher/Co-Founder of CitizensJournal.us and a “retired” operations management consultant residing in Oxnard. He has been a sea kayaker for 25 years.

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4 Responses to Oxnard water cost of service study released- on 7/11 Council agenda

  1. Tom July 10, 2017 at 9:28 pm

    K1 Agenda Report

    If a mandatory percent cutback in water usage is issued, the city proposes to raise the cost of water by the same percentage. Their example is a 20% cutback in water usage and a 20% increase in the cost. Apparently, the city believes this will result in no change in
    revenue. They are wrong.

    Take the example of the typical customer that uses 9 HFC per month at a rate of $3.36 per HCF. His bill will be 9*$3.36=$30.24.

    After the 20% reduction in use and 20% increase in cost his bill will be 0.8*9*1.2*3.36=$29.03

    That amounts to a 4% decrease in revenue from the sale of water.

    The loss is even greater when a portion of the usage drops to a lower tier.

  2. Tom July 7, 2017 at 9:52 pm

    Table 54 in the K1_Attachment shows that a SFR using 9 HFC will have a water bill of $49.76. What is not included in the calculation is a security and contamination fee of $1.24 and a water resource fee of $0.50. Your monthly water bill will include these items.

    • Citizen Reporter July 7, 2017 at 10:08 pm

      We sent your comment to Public Works Director Dan Rydberg, thanks.

  3. Sheryl July 7, 2017 at 6:58 pm

    So they have to charge ‘drought rates’ to maintain revenues ….


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