GRIDLEY, CA (MPG) - It was a full house and a long haul at the Gridley City Council meeting on August 7. This meeting covered a diversity of topics from utility prices, to weed abatement liens, to the purchase of a new flatbed for the Electric Department.

Mike Beachamp, of Utility Financial Solutions, was given time to provide initial findings of a Cost-of-Service study requested by the City of Gridley to help city officials ensure financial viability and reliability of service for City utilities (water, sewer, and electricity).

He noted that currently, the utilities program is admirably debt-free, however, he states that it is in a “cash burn situation,” meaning that the amount being expended in provision of services will exceed what comes in within a fairly short period of time. In order to prevent this from happening as well as to ensure that all operating expenses will be easily covered in the future, Beachamp presented findings from his study proposing a series of rate increases that would take place over the next few years.

It was noted that current electrical rates for the City of Gridley have not increased for about 5 years, and the water rate has stayed consistently the same for about 12 years. Beachamp estimated that an initial increase according to his proposal would look like about $16 per month for an average customer.

No final decisions are being made at this time; this report is an initial step in the exploration process.

Multiple members of the council expressed concern and asked questions, eager to minimize cost impacts on the local community. Councilmember J. Angel Calderon first stated what the majority appeared to feel, that it was important to him to avoid Gridley utilities becoming like PG&E.

A side-by-side comparison of proposed adjusted rates to the rates of other competitor companies, including PG&E, was requested, and there was a recommendation to schedule a working session during which the Council can review, discuss, and explore in more depth the current findings and options.

Those interested in understanding the proposals and influencing future decisions may view Beachamp’s presentation in its entirety at the http://gridley.ca.us/government-and-departments/city-council webpage under the “Agenda” for August 7. In accordance with existing policy, there will be opportunities for community input and rate protest prior to the implementation of any changes.

Continuing on, Mr. Buljit Dhami was granted approval for the purchase of a parcel of land within the Industrial Park area, for the expansion of Mallard Mini Storage. Mr. Dhami’s statement indicated that there have been “many requests for larger storage units and RV parking.” He says, “Our vision is to develop a state-of-the-art RV parking facility alongside a modern and secure mini storage complex. We see tremendous potential in combining these two essential services and catering to the diverse needs of our residents and visitors alike. … Our goal is to be up and running within a year.”

Dave Harden, City Engineer, provided a progress update on the revision of various city construction and design standards that have been in the works for some time. Detailed images of the various elements affected (including water, sanitary sewer, drainage, and grading) were provided in the body of the agenda for this meeting.

Harden also requested and received approval to amend an existing task order for services through Bennett Engineering, which is overseeing the planning and preparation for the Feather River Sewer Crossing project. Additional funding to the initial amount approved is necessary to complete the work, however it is expected that this funding will be reimbursable through the Clean Water State Revolving Fund.

As a final note, City Treasurer reports for the past three quarters were released and approved, as well as city expenditure reports for April, May, and June 2023. These reports and all documents discussed above can be accessed within the “Agenda” link for the Aug 7 Gridley City Council meeting at the http://gridley.ca.us/government-and-departments/city-council webpage.