Like many other public agencies, the Town is facing several challenges in its operations:  infrastructure upgrades, new and increasingly restrictive regulatory measures and more. The Town’s last comprehensive rate study was conducted early in 2020 before the full financial impact of COVID-19 could be predicted. During the pandemic, the Town’s costs for materials, equipment, and supplies increased dramatically. The cost of operating, maintaining and replacing facilities exceeds the revenue from current rates. Moreover, over the next five years, the Town is planning on constructing $32.5 million of water system improvements and $15.9 million of sewer system improvements. These improvements will ensure that the Town can continue to provide safe and reliable clean drinking water and treatment and disposal of sewer waste.

The Town engaged a professional independent consultant, L&T Municipal Consultants, to analyze and prepare the proposed rate study, in consultation with legal counsel. As part of the study, the Town and consultant evaluated operating expenses and upcoming improvement projects to determine rate adjustments that were the lowest possible needed to pay for critical services.

The rate study details the Town’s obligation to address significant infrastructure needs and provides a detailed rate and cost of service analysis. In addition, it shows the need for rate increases to account for basic inflationary operating cost increases.

If approved, the first proposed rate increase will go into effect July 1, 2025 for water and sewer service.

No. As a public agency, the Town of Discovery Bay cannot generate any profit from its utilities. The Town can only charge the cost of services provided. All revenue collected must be used for the benefit of the ratepayers.

A notice will be mailed to all Town property owners and ratepayers in early May that describes the need for the rate increase and adoption procedures. In addition, Town staff and the rate consultant will be available at the Open House on May 1 to meet with the public and answer questions. Ratepayers can also review the Rate Study Report available here or call (925) 634-1131.

Over the next three years, the Town of Discovery Bay will replace roughly eight miles, about 44%, of asbestos cement pipe in the Town’s water system. The pipe segment is 50 years old and has deteriorated quickly due to corrosive soils within the Town. 

This project involves replacing the existing pipe with a more durable PVC pipe and updating related valves, fire hydrants, cathodic protection, paving, service connections, and more. Work will be completed along Willow Lake Road, Discovery Bay Boulevard and other streets in the northeast quadrant of the Town. Residents in these areas will be impacted by water main construction in the street, and each resident’s water service will be impacted for a few hours while water service is replaced. 

With the improved pipes, the Town will be able to continue providing high-quality water service to ratepayers.

Due to State regulatory requirements, the Town must maintain separate access to the Willow Lake treatment plant from the administrative building. Currently, the administrative building provides direct access to the treatment plant. To comply with these regulations, Discovery Bay will create a separate administrative building where ratepayers can inquire, pay water bills or attend meetings. 

This project involves purchasing land, completing site work, and constructing a new building, and is expected to be completed in 2026. The cost of the project will be $7.5 million.

In May, 2024, the Town of Discovery Bay passed a resolution to apply for the California Energy Commission (CEC) Energy Conservation and Assistance Act (ECAA) Loan Program to install a solar renewable energy system. The ECAA program offers subsidized financing, allowing the Town to borrow up to $3 million at 1% interest over 17-20 years. 

If this funding is received, the Town is planning to develop an Energy Conservation and Renewable Energy Program in Discovery Bay that includes installing a 328 KiloWatt photovoltaic system, outdoor LED path and parking lot lighting at the Community Center, replacing gas-consuming equipment at the Community Center with electric technologies, scheduling the pump backwash process at Willow Lake Water Treatment Plant during off-peak hours and installing LED lighting in the Willow Lake Treatment Plant pump room. 

The CEC began reviewing the Town’s application in November 2024, and funding will become available beginning February 2025. Once funding is received, the project is anticipated to be completed by the end of 2026.

The Town is currently finalizing the design of the Well 8 pump station project. This project involves updating the well, pump and more to accommodate increasing water demands and provide new subdivisions in the Pantages development with improved water supply reliability. 

Homeowners who have moved into the Pantages development will see minimal traffic impacts during construction due to construction vehicles traveling to and from the site. Water service should not be impacted for these residents.

Beginning in 2026, the Town will replace the underwater crossing in Newport Bay from Sand Point Court to Newport Lane to increase the amount of water able to move through the crossing. 

To begin, the Town will perform a feasibility study to determine the logistics of the project. Once reviewed, the Town will replace the existing eight-inch asbestos cement pipe with a 12-inch high-density polyethylene (HDPE) pipe using horizontal directional drilling. 

Residents within Newport Lane Court, Sand Point Court and Sand Point Lane will see impacts once construction begins. Water service for residents within the project limits will be impacted for a few hours while water service is being replaced.

To comply with policy updates made by the California Environmental Protection Agency, the Town of Discovery Bay is required to create a cross-connection and backflow prevention program. This program will use pressure vacuum breakers to prevent contaminants from entering the public water supply. Approximately 4,000 customers will be required by the state to install vacuum breakers on their properties.

The current segment of pipe in the Town’s water system is 50 years old and has deteriorated quickly due to corrosive soils within the Town. The Town will replace the existing pipe with more durable PVC pipe to continue providing high-quality water service to ratepayers for years to come. 

Currently, the Town’s administrative building provides direct access to the Willow Lake Treatment Plant. To comply with State regulations, the Town must maintain separate access to the treatment plant from the administrative building. This will be done by creating a separate administrative building where ratepayers can inquire, pay water bills or attend meetings.

The Town of Discovery Bay's project notifications will commence approximately 30 days before the project begins. Additional notices will be provided one week prior to construction, with a final notice issued 48 hours before the start. Please note that, depending on the project's urgency, the final notice may be given 12 to 24 hours or less before construction begins.

The Town pursues additional funding for capital improvement projects when opportunities arise.

Follow us on social media for updates, attend the upcoming community meeting, or contact the Town at (925) 634-1131 for details about upcoming projects.