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Hollister council adopts 30% bridge water rate increase; 25% discount for PG&E CARE customers
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Summary
The Hollister City Council voted 5-0 to adopt a 30% "bridge" increase to water rates, effective with the March billing cycle, and approved a 25% discount for customers verified in PG&E's CARE program; council directed staff to return in the fall with a five-year rate study and implementation plan.
The Hollister City Council voted unanimously on Feb. 17 to adopt a 30% "bridge" increase to water rates and a 25% discount for customers who qualify through PG&E's CARE program.
City Manager Anna Cortez told the council the water utility operates as an enterprise fund and must cover personnel costs (including CalPERS liabilities), operations and maintenance, capital investments and reserves. Cortez said a consultant had earlier recommended an alternative that would raise the base rate by about 83% over five years, but she proposed a smaller, inflation-based bridge increase while staff completes a detailed five-year rate analysis.
"Because my request is less than the 83% that we had announced, you are able indeed to make that decision today," Cortez said. She proposed expanding the city's existing senior discount and using PG&E's CARE verification to screen eligible low-income households, and she recommended redesigning utility bills to make county and treatment costs easier to identify.
During public comment, residents raised water-quality and odor concerns. Stephanie Castro said residents had received a notice about chromium-6 at two wells and asked that water quality and sewage odors be addressed before raising rates. The mayor and city manager responded that the city has notified customers in accordance with state requirements and that staff have held a special meeting to explain the findings; Cortez said the city's water is safe and described steps being taken to both remediate issues and improve public communications.
After reopening the Prop. 218 public hearing, Councilmember Resendiz moved to adopt the 30% bridge increase with a 25% discount for ratepayers verified through PG&E's CARE program; Councilmember Bichet seconded. The council voted by roll call, 5-0.
Clerk Woodworth said the new rate could be set to take effect with the next billing cycle, with staff indicating a practical effective date of March 16 to avoid splitting a billing period. Cortez also told the council she expects to return in the early fall with a comprehensive rates analysis and recommended structure for the next five years.
What happens next: staff will implement the 25% CARE discount process, prepare bilingual outreach materials and a redesigned bill that shows costs the city controls versus partner charges, and complete a more detailed rates study with recommendations in early fall. Council directed staff to be transparent about partners' charges (San Benito County Water District and Sunnyslope Water District) when communicating with ratepayers.
