News Flash

Department of Water

NOTICE OF PUBLIC HEARING OF THE BOARD OF COMMISSIONERS OF 
 THE CITY OF BIG BEAR LAKE, DEPARTMENT OF WATER AND POWER

TO CONSIDER PROPOSED INCREASES TO WATER SERVICE FEES

February 21, 2023

Dear Property Owner/Tenant,

            NOTICE IS HEREBY GIVEN that the Board of Commissioners (the “Board”) of the City of Big Bear Lake, Department of Water and Power (“DWP”) will hold a public hearing to consider the adoption of increases to the fees for water service applicable to the parcel for which you are shown as the property owner of record or the customer of record.

Section 13.24.200 of the Big Bear Lake Municipal Code sets forth the procedures for the establishment of fees for water service by the Board.  This section requires that the Board hold a noticed public hearing, adopt a resolution establishing fees for water service, and forward such resolution to the City Council for approval. In accordance with these procedures, notice is hereby given that the Board will hold a public hearing to consider the proposed increases to fees for water service.  

The Public Hearing of the Board will be held at:

The Offices of the City of Big Bear Lake, Department of Water and Power

41972 Garstin Drive

Big Bear Lake California 92315

            Date:               Tuesday, April 11, 2023        

            Time:              9:00 a.m.         

Should the DWP determine that, due to a state of emergency or public health concerns, the meeting at which the hearing will be held will be entirely virtual, in accordance with AB 361 or other applicable law, information to that effect will be posted on the DWP’s website as soon as such information is available and in accordance with the law, and will be included on the meeting agenda for the public hearing to the extent possible.

The bases of and reasons for these proposed modifications and rate increases are to enable the DWP to: 
(1) recover costs associated with the prudent operation and maintenance of its water production, storage, and distribution system; (2) meet debt service obligations (3) fund capital projects required to supply reliable water service that meets all State and Federal water quality standards; (4) replace aging infrastructure in order to improve fire protection; and (5) reduce water lost through leaks.

The DWP’s rate structure consists of three customer classes – residential, commercial, and private fire service. The DWP’s residential water service fees are billed on a bi-monthly basis; commercial water service fees are billed monthly; and private fire service accounts are billed either bi-monthly or monthly depending upon whether the property served is a private residence or a business.  

The DWP has established fees for water service based on the proportional allocation of costs to each customer class. The water rate structure has two components: (1) a service charge component (the “Service Charge”); and (2) a usage charge component (the “Usage Fee”). The Usage Fee is structured in such a way as to recover the variable costs and a portion of fixed costs of providing water to each customer class, encourage efficiency, and manage the DWP’s water resources.  

The Service Charge is a fixed amount based on the size and capacity of the meter and is calculated to recover a portion of the DWP’s fixed costs of operating, maintaining, and delivering water, and includes up to 4 hundred cubic feet (ccf) of water usage per month. For residential customers, the Usage Fee consists of six tiers, with the first tier included in the Service Charge, and which will impose higher rates per ccf of water usage as the level of water consumption increases. For commercial customers, the Usage Fee consists of two tiers, with the first tier included in the Service Charge. The Service Charge for private fire services is a fixed amount based upon the size of the fire service meter.  

Effective July 14, 2023, the DWP is proposing rate increases for all water customers. Under the proposed rate structure, if a customer’s usage does not exceed 4 ccf of water for the month being charged, the customer will only be charged the monthly Service Charge.  Usage above 4 ccf in a month will be charged at the corresponding tier and rate, depending on customer class.  Usage for Residential customers is measured on a bi-monthly basis, meaning (for example) that Residential customers will not move into tier 2 unless they use more than 8 ccf in a two-month period. The proposed modifications to fees for water service are described in the attached Proposed Schedule of Water Service Fees.   

If adopted by the DWP Board of Commissioners and approved by the City Council, the rate changes will be effective July 14, 2023, for all DWP water customers. Additional rate increases are proposed to be effective July 1 of each year through July 1, 2027.  In no event shall the scheduled increase result in rates exceeding those set forth in this notice.  The Board may elect to implement rate increases that are less than those in this notice.

The proposed rate increases were developed by Raftelis Financial Consultants, Inc. (Raftelis), an independent rate consultant. Raftelis performed an in-depth analysis of revenue requirements necessary to implement the improvements outlined in the DWP’s 10-Year Capital Improvement Plan. Further details, regarding the bases of and reasons for the proposed modifications, are available at DWP’s Office located at 41972 Garstin Drive, Big Bear Lake, California 92315 and may be reviewed there by any interested person. They are also available on the DWP’s website at www.bbldwp.com. 

Any property owner or any tenant directly responsible for the payment of water service fees (i.e., a customer of record) may submit a written protest to the proposed rate increases to the DWP’s water service fees. However, only one protest will be counted per identified parcel.  Any written protest must:  (1) state that the identified property owner or customer of record is in opposition to the proposed water rate increases; (2) provide the location of the identified parcel (by assessor’s parcel number, street address, or customer account number); and (3) include the name and signature of the property owner or customer of record submitting the protest.  Written protests may be submitted by mail or in person to the Department of Water and Power, c/o Secretary of the Board of Commissioners at P.O. Box 1929, Big Bear Lake California 92315, or in person at 41972 Garstin Drive, Big Bear Lake, California 92315, or at the Public Hearing (date and time noted above), provided they are received prior to the conclusion of the public comment portion of the Public Hearing.   Any protest submitted via e-mail or other electronic means will not qualify as a written protest.  Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the Secretary of the Board of Commissioners, that the enclosed protest is for the Public Hearing on the proposed increases to water service fees.

At the time of the Public Hearing, the Board will hear and consider all protests, questions, and objections concerning these matters.  Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a signed written protest.  Upon the conclusion of the Public Hearing, the Board will consider adoption of the increases to the DWP’s water service fees described herein.  If valid written protests against the proposed increases submitted by the property owners or customers of record do not constitute a majority of the identified parcels upon which the water service fees are proposed to be imposed, the Board will be authorized to adopt the proposed rate increases.  In accordance with Section 816 of the Charter of the City of Big Bear Lake and Section 13.24.200 of the Big Bear Lake Municipal Code, the resolution will be forwarded to the City Council.   If approved by the City Council, the proposed water service fees will be in effect beginning July 14, 2023 and will be subject to annual adjustments as disclosed in the Proposed Schedules of Water Service Fees outlined in this notice.  

Please note that there is a 120-day statute of limitations for challenging all water rates should the proposed adjustments be adopted.

*While Residential tiers are shown on a monthly basis, usage is measured on a bi-monthly basis. This means that customers will not move into tier 2 unless they use more than 8 ccf in a two-month period, or usage over an average of 4 ccf in a month.  Similarly, customers will not be billed at tier 3 until they have usage over 24 ccf in a two-month period, or usage over an average of 12 ccf per month, and so on.