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Territorial Dispatch

Marysville City Council Opposes Proposed Water Rate Increase

Jan 28, 2025 10:20AM ● By Shaunna Boyd

MARYSVILLE, CA (MPG) - The Marysville City Council held a special meeting Jan. 23 to discuss its opposition to a proposed 33% increase in water rates by California Water Service (Cal Water) over the next three years. 

During Council Comments, Marysville Mayor Chris Branscum said water rates in Marysville are already double or even triple the rates in other nearby communities. 

“It is one of the more persistent and, frankly, more important problems for the city and its residents,” Branscum said.

Much of the city is designated as economically disadvantaged and those higher rates have a significant impact on family budgets, according to Branscum. He characterized the proposed rate increase as “an insult to the city.”

Branscum said the documents provided by Cal Water aggregate the data for Marysville with other neighboring areas and he previously asked Cal Water to provide data specific to Marysville. Branscum said that he asked again that Cal Water provide that data, so the city’s consultants can review actual usage and cost, in comparison with other areas. That information will be useful in determining the next steps for the city, according to Branscum.  

Many Marysville residents say they pay upwards of $800 per month for water in the summer months, said Mayor Branscum, and “It’s unsustainable.” 

While costs go up for the consumers, Branscum said, Cal Water is making “huge profits” and high water rates mean fewer and fewer people are able to keep their lawns green. 

Councilmember Brad Hudson agreed that he had to give up lawns at two of his properties. Hudson said he appreciates the work that goes into procuring and delivering the water and understands rate increases are common practice for utility companies. But he said many Marysville residents are on fixed incomes and cannot shoulder that cost. Hudson added that he appreciates that Cal Water representatives were attending the meetings and making efforts to provide full transparency during this process. 

Councilmember Stuart Gilchrist said to the residents in attendance, “We hear you and we’re very grateful you’re here.” 

Councilmember Marjorie Rollins said, “I think that private water companies, including Cal Water, are primarily accountable and beholden to their stockholders, not the people they serve.” 

While the City of Marysville has the goal of ensuring that residents thrive, Rollins said, Cal Water does not have the same goal: “We need to protect our residents and businesses at all costs. This cannot continue.” 

City Manager Jim Schaad said there is a significant difference in rates in Marysville compared to neighboring communities, which gives those communities an advantage and makes it harder to grow the Marysville economy with new homes and businesses. Schaad said that the higher rates paid in Marysville are not invested within the city and instead, “that money goes to shareholders and corporate salaries.” 

Schaad said he and his staff will work with Cal Water to understand the cost of service and how the rates are determined.

“I intend to dig into this,” Schaad said.

Yuba County District 2 Supervisor Renick House spoke during Public Comment at the meeting, offering his support to Marysville in their opposition to the rate increase. He said it’s important to ensure equitable access to water resources throughout the region and he would support other options for Marysville, such as switching to a different service provider. 

Yuba County District 5 Supervisor Jon Messick also offered his support to Marysville. Messick serves as chair of the Yuba Water Agency, which is a public agency managing water resources within Yuba County. If the City of Marysville decided to buy out their contract with Cal Water and look into merging with a regionalized water system for water treatment and delivery, Messick said, the Yuba Water Agency could help with grant funding. 

“It’s worth looking into,” Messick said.

Cal Water’s Marysville District Manager Tavis Beynon said they “want to be as transparent as possible” and would like to return with a detailed presentation answering all the questions raised at this meeting and explaining the numbers, the process and the current system status. 

Cal Water’s Government and Community Affairs Director Kevin McCusker said that “people might not like the answers, but we do want to bring the answers back and be responsive to the questions being asked.” 

 “This is the beginning of the process, not the end of the process. It is a proposal; it’s not a decision,” McCusker said.

McCusker explained that their proposed rate increase will be considered by an administrative judge with the California Public Utilities Commission (CPUC) to determine what is “prudent and necessary.” McCusker expected that review would not take place until next December and he said the City of Marysville can submit written opposition to the proposal at any time during the process. 

To address the higher costs in Marysville versus other areas, McCusker said that costs vary based on the actual cost of delivery. So, if an area has contaminants in the water that must be filtered out before distribution, then that community will have to bear the cost. McCusker added that other areas might be paying less if their service providers aren’t imposing the state’s legal conservation requirements. 

Councilmember Gilchrist said that’s why City Council wants to see all the specific data for Marysville, so that those factors can be considered. 

Mayor Branscum agreed, stating that they need to look at all options, including severing their relationship with Cal Water. 

“You have to have water, you have to find a way to pay for it, and you can only reduce your use so much,” Marysville resident Susan Townsend said.  

Townsend added that she tore out her lawn and put in drought-resistant landscaping but her bill keeps going up, although less water is used. While costs are expected to go up over time, she said, a 33% increase over three years is “just not right.” 

Mayor Branscum closed the meeting by saying, “We have a problem here. We’re going to try to work our way through it.” 

Councilmember Gilchrist made a motion directing staff to put together a team of experts to review this issue and Councilmember Hudson seconded the motion with the addition that the experts work in cooperation with Cal Water to get the necessary data. The motion was unanimously approved by the Council. 

The next regular Marysville City Council meeting is scheduled for Feb. 4.