St. Helena Water Failures Tops July 9 Meeting Agenda

NAPA VALLEY, CA — A sweeping Civil Grand Jury report recently released criticized city leadership for years of water system failures.

Residents will hear city officials respond Thursday to the report that concludes decades of deferred maintenance, governance failures, and incomplete infrastructure projects have left St. Helena's water system struggling despite multiple rate hikes and millions of dollars in spending.

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The St. Helena Water and Wastewater Advisory Committee is scheduled to discuss those findings during its July 9 meeting.

City officials argue major improvements are already underway and more projects are in progress.

Findings

Among the report's most significant findings, the Grand Jury determined that water rates increased approximately 183% between 2011 and 2025, yet customers continue to experience taste, odor, and discoloration problems.

Investigators found that while water now leaves the Bell Canyon Water Treatment Plant "clear, clean, and healthy" following recent upgrades, contamination appears to occur within the city's aging distribution system of nearly 46 miles of underground water mains and pipes.

The report also found no comprehensive assessment has been completed to determine the condition of that system or the full cost of repairing it.

The Grand Jury further concluded the city's capital improvement plans repeatedly cited many of the same infrastructure projects to justify water rate increases in 2011, 2016, and 2023, but several projects were delayed or never completed.

Investigators also the city for lacking a comprehensive system to track water quality complaints until recently, eliminating higher rates for outside water customers in 2016, allowing outside service customers to benefit from Measure H-funded improvements without helping repay the bond, and failing to provide consistent governance and professional project management.

The report places much of the responsibility on successive City Councils, but stops short of imposing penalties.

Instead, California law requires the St. Helena City Council to formally respond within 90 days to every finding and recommendation.

The Grand Jury recommended the city complete a comprehensive assessment of its distribution system by Sept. 30, develop a long-term rehabilitation plan with costs and funding sources by Dec. 31, expand complaint tracking and reporting, restore differentiated water rates and surcharges for outside-city and high-elevation customers, and require governance training for elected officials and senior management.

Response

City officials said they agree that aging infrastructure remains a serious challenge but contend the report overlooks substantial progress already completed.

In a public statement, the city said it has invested millions of dollars in water and wastewater infrastructure over the past several years.

"The Civil Grand Jury's report raises important issues that deserve thoughtful consideration," Interim City Manager Jim McCann said. "We welcome constructive oversight and share the goal of providing the highest quality water service possible. We also believe it is important for the public to understand the significant work that has already been completed, the measurable improvements already achieved, and the substantial investments that address long standing deficiencies in our water system."

Some of the issues in the Civil Grand Jury report include:

• Water rate increases: The Grand Jury noted that all three water rate studies (2011, 2016, and 2023) cited rising costs of purchasing treated water from the City of Napa as one justification for increasing water rates.
• Outside service customers: The report found that after the City eliminated higher rates and surcharges in 2016, the added costs of serving customers outside city limits—including pumping costs—were shifted onto all ratepayers.
• Measure H benefits: The Grand Jury also criticized the fact that customers outside St. Helena who receive water under Outside Service Area Agreements benefit from Measure H-funded infrastructure improvements without paying the property tax that repays the bonds.
• Governance and planning: The report concluded that City Council oversight and long-term planning were inadequate, leading to repeated rate increases, delayed capital projects, and continued financial distress despite higher revenues.

City officials said they are preparing the city's legally required formal response to every Grand Jury finding and recommendation.