District News and Information

Proposed Rate Adjustment Based on Recent Rate Study

The Planada Community Services District (District) last adjusted its water and sewer rates in 2005. Since then, the costs of providing these essential services have significantly increased due to rising expenses in materials, labor, equipment, parts, professional services, state-mandated laboratory testing, environmental compliance, and subcontracted work.

These escalating costs have placed the District in a challenging financial position. Despite these pressures, we remain committed to delivering safe, high-quality drinking water and ensuring uninterrupted sewer service to our community.

To better understand our financial outlook and ensure long-term sustainability, the District recently conducted a comprehensive rate study. Based on its findings, a proposed rate increase is now being considered. This process is being conducted in accordance with California’s Proposition 218, which ensures transparency, public participation, and fairness.

We are dedicated to keeping our residents informed and involved every step of the way. More information, including details of the proposed rate structure and opportunities for public input, will be shared soon.

Planada’s Water System: Investing in a Safer, Stronger Future

Planada Community Services District is committed to providing our community with clean, reliable water now and for generations to come. After a thorough evaluation of our water system, we’ve developed a plan to modernize our infrastructure, strengthen our supply, and prepare for future growth.

Why this project matters:

Aging infrastructure needs replacement.
Some of our existing water mains and equipment have been in use for over 40 years. Replacing aging infrastructure will reduce leaks, service disruptions, and maintenance costs.

We need to be ready for peak demand.
While our current system meets daily needs, it falls short during periods of high demand or emergencies. Improvements will ensure we have reliable water when it’s needed most.

System reliability is a top priority.
We’re planning to install a new groundwater well and a 750,000-gallon elevated water storage tank to help ensure there's always enough supply—even if one well is temporarily offline.

Upgrading to modern water meters.
Many of our customer water meters are outdated. New digital meters will improve accuracy, reduce water loss, and support tools like usage-based billing in the future.

Sustainable solutions save money.
We’re including a solar power system to reduce electricity costs over time, supporting long-term savings and environmental sustainability.

What’s being proposed:

A new groundwater well and elevated storage tank at a tested and approved location

Over 26,000 feet of new water pipelines to replace older, undersized lines

1,120 upgraded digital water meters for all customers

A solar photovoltaic system to offset electricity use at the new facilities

After considering other options—including connecting to the City of Merced—this project was chosen as the most cost-effective, resilient, and locally controlled solution.

We’re proud to be moving forward with these improvements and will keep our community updated every step of the way.

Roundabout Utility Relocation – Project Update

Planada Community Services District is currently working with Caltrans to finalize contract documents and technical specifications for the upcoming utility relocation phase tied to the roundabout installation project. We anticipate soliciting bids by the end of May, with construction expected to begin in June and be completed by August 2025. This work is a critical step to ensure District infrastructure is protected during Caltrans’ broader safety improvement efforts.