Salinas staff recommend new sewer rate plan after study finds aging pipes, $115M in needed projects

Mayor Donahue and members of the Salinas Finance Committee heard a rate study presentation March 4 that concluded the city’s sanitary sewer system needs major investment and that current rates—unchanged since 2012—are insufficient to fund operations, maintenance and capital work.

The presentation by Adriana Robles, assistant public works director and city engineer, and consultants from Wallace Group and DTA described an aging network that serves about 12,000 acres, more than 280 miles of gravity mains, force mains and 11 lift stations. Robles said the city currently estimates 10,460,000 gallons per day of existing sewer flow and an additional 2,330,000 gallons per day from the North of Bridal future growth area.

The study produced two primary rate scenarios to close an identified funding gap and stabilize the sewer enterprise fund: one scenario would begin at roughly $16 per equivalent dwelling unit (EDU) per month with a 2% annual escalator; the other would begin near $15 per EDU per month with a 4% annual escalator. Andrea Ress of DTA summarized the financial model and said annual operations and maintenance are currently about $3.5 million and that the capital program—escalated at 3% to year of construction—totals about $114.8 million.

Why it matters: the committee…