San Juan Water District dedicated their February Board meeting to reviewing the impending water shortage created by a drought shrunken Folsom Lake and the necessity for increasing retail water rates in their Granite Bay service area. While there was discussion on potential mandatory outdoor water restrictions, non-residential customers such as the exclusive Granite Bay Golf Club seem to escape any meaningful rate increase in the proposals.
Folsom Lake water emergency on the horizon
Presentations at the packed gymnasium of the old Eureka Middle School gymnasium were given by San Juan Water District General Manager Shauna Lorance, Assistant GM Keith Durkin and Bob Reed of the Reed Group, Inc. San Juan Water District relies solely upon Folsom Lake water to service its retail customers in the Granite Bay area and wholesale operations to Citrus Heights, Fair Oaks, Orangevale and Sacramento. With Folsom Lake at historic record low water levels there is the very real fear that lake level will drop below the water intakes this coming fall or winter.
Home owners to shoulder most of drought rate increases
Water pipe for Peninsula Campground extending down to Folsom Lake
As San Juan Water District implements greater voluntary and mandatory water restrictions, the loss of retail water sales reduces their revenues. Bob Reed of the Reed Group Inc. was brought in to present different scenarios that would raise rates to compensate for the shortfall. Similar to the existing rate structure, it looks like residential customers will bear the brunt of the rate increases sparing the non-residential and commercial customers. Both Reed and Lorance said that under the current rate structure the average residential rate equaled the non-residential/commercial flat rate. But they offered no data to back up their claim.
Granite Bay residential rates higher than golf club*
Under the current rate structure, with my three bedroom, two bath house on 1/3 of an acre, I would have to use double the amount of water in my highest two month billing cycle for my average rate to equal the non-residential/commercial rate of .$0.66 per CCF. Except for those winter months where our water consumption is very low, any billing cycle that has my usage go in to tier 2 will usually have me paying a higher average rate than business, park, school or golf course. Frankly, every non-residential and commercial customer should always pay a higher unit rate for water than residential consumers.
*During the public comments at the Board meeting, a gentleman who identified himself as the General Manager of the Granite Bay Golf Club requested that the Board not impose a water restriction where the golf course would only be allowed to water tees and greens. Instead, he asked that the golf course be allowed to water the full course if only on a reduced weekly watering schedule. It would be interesting to know how much water Granite Bay Golf Club uses compared to residential consumers who have been asked by the San Juan Water District to eliminate all outdoor water use as of January 8th.
Current rate structure average cost
For a two month billing cycle
| Tier | CCF | Rate | Rate Total | Sub Total | Average Rate |
| 1 | 20 | 0.45778 | $9.16 | ||
| 2 | 180 | 0.76990 | $138.58 | $147.74 | $0.74 |
| 3 | 150 | 0.54101 | $81.15 | $228.89 | $0.65 |
| CCF Total | 350 | ||||
| Gallons | 261,800 | Commercial | $0.66 |
I would need to double my water consumption to equal the commercial rate of $0.66 per CCF unit. In other words, I need to waste water to get cheap water on the level with a private golf course.
Stage 3 eliminates lower tier 3 water rate
Bob Reed, a water pricing consultant for San Juan Water District, detailed proposed water rate increases effective with each drought water stage declared by the Board. At a Stage 3 declaration the third tier residential rate would be eliminated and the commercial rate would be slightly increased. From a conservation stand point, the current lower tier 3 pricing for residential water virtually removes any conservation incentive on the part of large water consumers. But even doubling my water consumption, I still couldn’t get close to the lower flat rate of proposed the non-residential/commercial rate of $0.73.
Stage 3 |
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| Tier | CCF | Rate | Rate Total | Sub Total | Average Rate |
| 1 | 20 | 0.51 | $10.20 | ||
| 2 | 180 | 0.85 | $153.00 | $163.20 | $0.82 |
| 3 | 150 | 0.85 | $127.50 | $290.70 | $0.83 |
| CCF Total | 350 | ||||
| Gallons | 261,800 | Commercial | $0.73 |
Even if my household use drops to 180 CCF units under Stage 3 conservation measures, I will still be paying a higher average price than commercial customers.
The power point slide used in the presentation were supposed to be available on the SJWD website for download but as of the writing of this post, nothing was available. Consequently, all the following rates are from notes I took during the meeting and may be subject to correction.
Stage 4 |
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| Tier | CCF | Rate | Rate Total | Sub Total | Average Rate |
| 1 | 20 | 0.60 | $12.00 | ||
| 2 | 55 | 1.00 | $55.00 | $67.00 | $0.89 |
| 3 | 0 | 1.50 | $0.00 | $67.00 | $0.89 |
| CCF Total | 75 | ||||
| Gallons | 56,100 | Commercial | 0.86 | ||
Stage 5 |
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| Tier | CCF | Rate | Rate Total | Sub Total | Average Rate |
| 1 | 20 | 0.74 | $14.80 | ||
| 2 | 40 | 1.23 | $49.20 | $64.00 | $1.07 |
| 3 | 0 | 2.46 | $0.00 | $64.00 | $1.07 |
| CCF Total | 60 | ||||
| Gallons | 44,880 | Commercial | $1.06 |
Severe conservation brings the rates close
With the elimination of all outdoor watering in a Stage 4 and 5 drought emergency scenarios my household could move our average cost per unit closer to the non-residential/commercial water rates. But at this point, the San Juan District Board isn’t considering making the exclusive Granite Bay Golf Club halt their irrigation. Why should the San Juan Water District balance their budget on the back of residential customers?
Water turn out of the North Fork Ditch with tree
Why should I subsidize a private country club?
I can’t set foot on the lush green fairways of Granite Bay Country Club because I can’t fork over the $48,000 membership fee. Why should Granite Bay residents subsidize the water rates for a private golf course we can’t even use? The Granite Bay Golf Club along with other commercial San Juan Water District retail water customers make money from the water they consume. When I pour myself a glass of water from the tap, I don’t get to charge anyone. I have to pay for it. Yet, golf courses, restaurants, apartments and local strip malls all use water to make money. Again, why should residential water customers subsidize those commercial interests that are making a profit from Folsom Lake water?
Filling swimming pools top concerns of Granite Bay residents
The public comments were especially interesting about the water shortage and drought. The biggest concern seemed to revolve around potential moratorium of filling new and existing swimming pools and landscaping. It was comical that people were more concerned about pool builders, landscapers and home construction when the area is facing an unprecedented shortage of water. There were also the ill-informed comments from people who thought Southern California, Sacramento and the fish were stealing the water that Granite Bay some how has a God given entitlement to use. No mention was made that most of the water sent out of Folsom Lake, into the Delta and sent south was used to irrigate subsidized crops in the San Joaquin Valley.
The Golf Club will be my new park
The San Juan Water District has always favored commercial interests in their water rate structure. There is no reason to believe that the Board will not vote for what ever Bob Reed recommends as they have done so in the past. All I know is that when the San Juan Water cops make sure my front and back yard lawn is dead, I’m packing up the family and we are heading over to Granite Bay Golf Club for a picnic on 18th fairway with that beautiful view of the club house. Who wants to join us?
