OVERVIEW: The Hillcrest water system (HWS) is broken and it’s not the City’s fault. The water has always been hard and we have been willing to live with that. Now, rising nitrate levels in the Hillcrest 2/3 area have forced the City to remove one well from service. Chemically treating our water to bring it into compliance with revised Federal arsenic standards reduces plant capacity another 20%. Three of the last four sets of tests for arsenic in the Hillcrest 2/3 region have shown results that are above the Federal standards.

This situation has lead to low and inconsistent water pressure and some brown water events. This is especially true in the Hillcrest 2/3 region where the City was injecting more than 1 million gallons of surface water per day into the system in an attempt to make up the shortfall.

CITY’S PROPOSAL: Conversion of all HWS customers to the City’s surface water system (SWS) for a one time fee of NOT TO EXCEED $3,570 or a monthly fee of NOT TO EXCEED $19.80. These fees include the installation of water meters. If either Hillcrest 1 or Hillcrest 2/3 supports the City’s proposal, that region will be connected.

PROJECT BENEFITS: HWS customers will receive better quality water both in terms of water softness and in terms of meeting State and Federal standards. We will also experience better and more consistent water pressure. Hillcrest 2/3 will have a greatly improved water supply.

PROJECT DESCRIPTION: Construction of a 30” water line from Yuba City High School to Lincoln Road and from there west to Sanborn Road. Construction of a water storage and pumping facility near Sanborn & Lincoln Roads.

EFFECT OF OVERSIZING: Oversizing the project results in economies of scale that benefit both current HWS customers and future developers. The City has calculated that installation of the proposed 30” pipeline saves HWS customers over $450 per home as compared to construction of a 22” pipeline that just serves the needs of HWS customers. Additional, but less dramatic savings result from oversizing the water storage and pumping facility.

SHARING THE COST WITH DEVELOPERS: Proposition 218 insures that the City only charges HWS customers for that portion of the project that benefits us. Proposition 218, SEC. 6., (2)(b)(3) says; "The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel."

The “not to exceed” fee of $3,570 outlined in the City proposal is less than half of what developers are currently being charged for water connections so it would seem that, if anything, it is developers that are subsidizing HWS customers.

EFFECT OF INCLUDING HILLCREST 1: Including Hillcrest 1 in the proposal creates additional economies of scale. The result of inclusion of Hillcrest 1 is that the one time “not to exceed” cost was reduced form $3,990 to $3,570.

WATER CHARGES: The City estimates that the average water usage bill for HWS customers will be about $25 per month after conversion. This is based on a study of Hillcrest 2/3 homes that already have meters.

WATER METERS: All homes will be required to have water meters. Installation of water meters is included in the "not to exceed" fee of $19.80.

IMPACT ON WATER SUPPLY: The City's proposal does not increase or diminish Yuba City's water supply. Rather, the primary source of water for all Yuba City water customers will be surface water with backup from the City's well located at the water treatment plant. Plans call for all current HWS wells to be kept for use in case of emergencies.

HILLCREST 2/3 WATER SHORTAGE: The Hillcrest 2/3 region currently has a water shortage. This past summer, the SWS was providing over 1 million gallons of water per day to the Hillcrest 2/3 region. Implementation of the City's conversion proposal will relieve this localized water shortage.

In the event of a drought that causes cut backs in water supplies from the Feather River, Hillcrest 2/3 residents will likely suffer badly if conversion to the surface water system is rejected.

THE CONVERSION FEE IS NOT A LIEN: The proposed conversion fee is a debt that will be collected through the monthly water bill. It will not appear as a lien on your property tax statement. There is no requirement that it be paid off at the time of any sale, transfer or refinance of the property. The balance may be paid at any time without penalty.

SPREADING COSTS TO SWS CUSTOMERS: The City cannot legally spread the costs of fixing the HWS to current SWS customers according to Michael Colantuono, an attorney that has been advising the City on the HWS issue. He cites proposition 218 as the basis of his opinion. The California Supreme Court’s decision in the case of Silicon Valley Taxpayer’s Association v. the Santa Clara County Open Space Authority supports Mr. Colantuono’s position.

ALTERNATIVE SOLUTIONS: The City studied many alternatives in arriving at this proposal. This is the best and cheapest solution. Other options were either more expensive, were not feasible or were not legal.

SALE OR LEASE OF THE HWS: City officials have said that selling the system is the last thing they want. However, they see no other alternative if we reject the best and cheapest proposal. Four companies have expressed interest.

HOME SELLER’S DUTY TO DISCLOSE: Sellers are required to disclose that which they know about that may have a negative impact on a property's marketability or desirability. As problems with the HWS continue to be discussed and more information about problems with the HWS emerges, sellers' duties to disclose increase.

IMPACT ON PROPERTY VALUES: We can have better water for about $20 to $25 a month extra. That is less than we pay for bottled water, water softener salt & repairs, repair and premature replacement of plumbing fixtures and etc. That can only improve our property values. A sale of the HWS to a private operator will increase the cost of our water and we will still get the same or similar water that we get now. That will certainly reduce our property values.

It is not our intention to discourage buyers from purchasing property in the HWS. Water is only one of the components affecting a property’s desirability. Buyer’s should consider all factors in making an informed buying decision. Others factors to be considered include price, size, quality, condition, location, bedroom and bathroom count, garage size, lot size, availability of RV parking and etc. This is a changing situation and buyers and sellers should inform themselves as to it's current status to insure that this knowledge is reflected in any agreement to purchase or sell property in the HWS.

CURRENT INFORMATION: Interested parties are encouraged to contact the City of Yuba City to obtain current information. Contact them at;

Utilities Department Administration
302 Burns Drive
Yuba City, CA 95991
(530) 822-4639