The Ukiah Valley Water Authority (UVWA) Executive Committee tackled big financial changes at its Jan. 30 special meeting, voting to standardize fees across its four member agencies—Redwood Valley, Millview, Willow, and Ukiah. Finance Director Dan Buffalo pushed for uniform rates to streamline billing and boost efficiency. The board also discussed a five-year rate study, major infrastructure funding, and the transition of customers to UVWA’s billing system.
This meeting was focused on financial matters. Dan Buffalo, the City of Ukiah’s Finance Director, spoke about the adoption of standardized fees for the consolidated UVWA, which is comprised of four different water agencies: Redwood Valley, Millview, Willow, and the City of Ukiah, which have had separate fees and cost structures. Willow County Water District manages several other water districts, some of which are not in the UVWA.
The UVWA staff report states that the idea is to “establish standardized dates, fees, charges, penalties, and deposit amounts for water services across the UVWA service area. The resolution also introduces consistent protocols for service initiation and termination, aimed at improving clarity, uniformity, and operational efficiency.” Buffalo said the Finance Department’s “billing system can only accommodate so many exceptions, and standardization has to occur to utilize economies of scale.”
The Board voted to adopt standardized fees. Some highlights:
- The UVWA uses a Credit Reporting Agency to provide Collection Risk Information.
- New service applicants who pose no credit risk will be charged no deposit.
- New service applicants who pose minimal risk: minimum $50.00 deposit.
- New service applicants who pose substantial credit risk: minimum $100.00 deposit.
- There will be higher deposits required for customers whose service has been disconnected for nonpayment.
- Disconnection Fees: In addition to increased deposit requirement.
- Service Disconnect Fee: $85.00
- Premium Disconnect Fee: $100.00
- Service Reconnection Fee: $50.00
- Premium Reconnect Fee: $90.00
- Premium Fees are those requiring special handling, such as after-hours requests.
- The property owner is ultimately responsible for all utilities used at their property, regardless of whether it is occupied by tenants.
Buffalo reported that Ukiah will contract with Mark Hildebrand to perform rate studies. There is a legal requirement to perform a five year financial plan, and a separate five year rate study for each member agency. At the end of the five years, it is hoped to have one rate for the UVWA instead of separate rates for each of the agencies. Buffalo hopes to have a proposal ready for the Board to review at the next meeting.
Attorney Williams pointed out that we need to understand that fees will change for all water users in the area because of new groundwater sustainability fees and changes coming to the Potter Valley Project, “We are going to be buying our water, water that we’ve been diverting,” said Williams. Hildebrand will be asked to incorporate this into his proposed rate study, and will speak to the Board at the next meeting.
Buffalo explained that the City of Ukiah’s financial reports are in a different format than those prepared by the Willow water agencies. He provides quarterly financial reports to the City Council. He asked the Board if they would accept quarterly, rather than monthly, reports, adding that he will alert the Board to any extraordinary financial developments, rather than wait until the end of the quarter. The annual budget will be ready for the Board to review in May, and he suggested that the Board meet twice in May, once to review and provide comments, and then later to approve, the budget. This will give each agency in the UVWA time to have their own boards review the proposed budget.
Ukiah’s Billing Customer Service rep, Lori Martin, reported that the transition of Redwood Valley and Millview customers to the UVWA’s billing system is going well. Willow’s Office Manager Liz Patton agreed. Ukiah’s meter reading equipment are able to read Redwood Valley’s and Millview’s meters. Willow’s customers will be transitioned to UVWA billing system in March. The fact that they ran mock billing cycles prior to the transition helped the process.
Ukiah’s Water Manager Sean White updated the Board on the State of California’s SAFER planning grant application. SAFER is a program designed to bring water security to small communities. Grant funds are expected to help pay for connecting the infrastructure in the UVWA service area.
White said, “We continue to chip away at this. We got a final and complete application in to the state.” Consulting engineering company Carollo is reviewing Ukiah’s GIS and CAD drawings in order to draft a plan, and proceed to the engineering phase. The next phase will take approximately 6 months. Then Carollo’s findings and suggestions will be presented to the UVWA Board, after which it will take approximately another 6 months to get to the 30% design phase.
Board Member Tom Schoeneman said, “So we’re a year away. Let’s hope the money is still there.”
White, whose demeanor is always super calm and zen-like, replied, “It is our experience that if the money goes away, it always comes back. It is important to have a shovel-ready project ready to go. We need to be ready to accept the money.”
Jared Walker, General Manager of the Willow County Water District, added that he and White have been meeting regularly with representatives from SAFER that the “UVWA is on their radar, and getting SAFER’s full attention.”
White and Walker then turned to the subject of the first month of service for the newly-formed UVWA. Walker said, “As of January 1, Willow staff is City of Ukiah staff.” Everything is going well, and the combined expertise of personnel has enabled rapid response to some water main breaks that occurred in January. All three pumps at Lake Mendocino are operating and other maintenance tasks have been completed quickly.
Ukiah attorney Phil Williams reported that the Amended JPA document forming the UVWA has been filed with the California Secretary of State, and will next be submitted to the State Controller’s Office.
Chair Adam Gaska announced that the meeting was adjourned, and the next meeting will be on March 6 at 5 PM.
