Agenda Item Wording:
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Goshen Community Services District - Updated Service Agreement - Approve an updated wastewater service agreement with the Goshen Community Services District.
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Agenda Date: 06/15/2026
Prepared by: Nick Bartsch, Public Works Director, nick.bartsch@visalia.city, 713-4052
Department Recommendation: Staff recommends that Council approve the updated wastewater service agreement with the Goshen Community Services District (GCSD).
Summary:
The City of Visalia entered into an agreement with the Goshen Community Services District (GCSD) in 1995, which established that the City would accept and treat wastewater discharge from the community of Goshen. The existing, over 30-year-old, agreement contains ambiguity, includes terms and provisions that are no longer applicable, and also fails to meet the current and projected needs of both the City and the GCSD. The proposed updated agreement clearly addresses the uncertainties over available capacity in the current agreement and better defines the roles and responsibilities of each party. While it does not guarantee future capacity increases beyond what has been identified, planned, and accounted for to date, it does provide a pathway for future requests through clear communication, planning and capacity analysis.
The Goshen Community Services District Board of Directors approved the proposed updated agreement at its regular Board Meeting held on May 28, 2026.
Background Discussion:
The existing agreement between the City of Visalia and the Goshen Community Services District (GCSD or District) was established in 1995 and provided for the treatment of wastewater discharge from the Community of Goshen. The agreement established maximum limits (both daily and monthly average) of not only flow discharged, but also of specific components that comprise that flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS).
The existing agreement has been amended numerous times to ultimately increase the quantities of each of the discharge factors. Due to the ambiguity of the language in the original agreement, there was some trepidation over the true capacity available to the District each time these amendments occurred.
The revised language in the updated agreement clearly addresses the existing and proposed capacities available to the District to build out their existing sphere of influence, which has been planned and account for through the City’s updated 2024 Water Reclamation Facility (WRF) Master Plan. The agreement provides for specific increases in District capacities in accordance with planned projects at the WRF.
The District is obligated to pay the fees and charges associated with these increases according to the schedule set forth within the agreement, and at the adopted rates at the time of those increases.
2027 Expansion: No earlier than 07/01/2026, and no later than 01/03/2028, the District shall pay the applicable Capacity Purchase Fees, upon which the quantities shall be deemed amended as follows:
2027 Amended Average Daily Discharge: On an annual basis, the District’s daily average discharge shall not exceed the following limits:
2027 Amended Maximum Daily Discharge: The District’s maximum daily discharge shall not exceed any of the following limits:
2030 Expansion: No earlier than 01/01/2030 and no later than 06/03/2030, the District shall pay the applicable Capacity Purchase Fees, upon which the quantities shall be deemed amended as follows:
2030 Amended Average Daily Discharge: On an annual basis, the District’s daily average discharge shall not exceed the following limits:
2030 Amended Maximum Daily Discharge: The District’s maximum daily discharge shall not exceed any of the following limits:
However, the agreement does not guarantee any capacity needed for the expansion of the District’s boundaries or beyond their existing sphere of influence. Rather, it provides a process by which additional capacity may be requested, assessed and addressed at the cost of District. The District is also required, under the proposed agreement, to make a good faith effort to notify the City of any potential increases in wastewater flow, biochemical oxygen demand, suspended solids and other potential pollutant levels, indicated by any commercial and/or industrial development inquiries, that would significantly affect the quantity and/or quality of the District's discharge to the City system as soon as such potential impacts are made known to the District.
The updated agreement makes clear that the twenty-four-inch gravity sewer line that conveys the District’s collected wastewater and ultimately connects to the City’s system is effectively the “District Main Line.” The agreement establishes the ownership and maintenance responsibilities of this line belonging to the District.
The revised language also addresses and clearly assigns discharge quality monitoring and pre-treatment responsibilities to the District. The District will be required to operate and maintain a pretreatment program and implement enforcement procedures to ensure their discharge meets the minimum quality standards required by the Regional Water Quality Control Board. While the District has been held responsible for this in the past, the updated terms more clearly delineate these tasks as they relate to the City’s role in State reporting and overall regulatory compliance.
The updated agreement also covers the right to the processed reclaimed water. Under the new terms, the City shall have the sole right to the use and disposition of any reclaimed water that is the product of the City’s treatment of discharged wastewater received from District. The right to the use of reclaimed water includes any right to credits or offsets that may be recognized by a Groundwater Sustainability Agency in the implementation of a Groundwater Sustainability Plan under the California Sustainable Groundwater Management Act.
Fiscal Impact including annual maintenance and operating costs: The updated agreement establishes specific increases in District capacities, and associated payments, in accordance with planned projects at the WRF. The District is obligated to pay the fees and charges associated with these increases according to the schedule set forth within the agreement, and at the adopted rates at the time of those increases. For the most immediate capacity purchase noted as “2027 Expansion,” the City has calculated the Capacity Purchase Fee that would include the both the Treatment Plant Connection Capacity Charge and Trunkline Capacity Charge, in accordance with the current FY 2025/26 Rates & Fees, to be $1,891,075, payable in the event District elects to purchase and pay for the full amount of the 2027 Expansion prior to July 30, 2026. Alternatively, the District will be required to purchase the 2027 Expansion no later than 01/03/2028 in accordance with the adopted rates at the time of the purchase. Subsequently, the final “2030 Expansion” capacity increase addressed under the agreement will be calculated and based on the approved rates and fees that are adopted at the time of purchase (no earlier than 01/01/2030 and no later than 06/03/2030).
The District shall be responsible for ongoing monthly sewer service charges in accordance with the rates established by City Resolution. The agreement provides for the City to amend its rate schedule from time to time, provided that any such charges to the District shall be consistent with the then current rates and charges in effect for other customers with similar service demands. It also establishes the City’s ability to establish a separate cost based upon a rate study specific to meeting and handling the District’s effluent demands. The current ongoing Wastewater rate study is taking this into account.
Prior Council Action:
June 5, 1995 - Approval of the Wastewater Service Agreement between the City of Visalia and the Goshen Community Services District.
April 23, 1996 - Approval of Amendment No. 1 to the Wastewater Service Agreement
June 30, 2003 - Approval of Amendment No. 2 to the Wastewater Service Agreement
April 2005 - Acceptance of Amendment No. 3 to the Wastewater Service Agreement
June 2006 - Acceptance of Amendment No. 4 to the Wastewater Service Agreement
April 2007 - Acceptance of Amendment No. 5 to the Wastewater Service Agreement
December 18, 2023 - Approval of a request from GCSD to increase sewer discharge capacity.
December 18, 2023 - Approval of a contract to design Near-Term Improvements at the Water Reclamation Facility.
August 19, 2024 - Adoption of the Water Reclamation Facility Master Plan Update
August 4, 2025 - Approval of contract to construct the Solids Handling Improvements Project.
October 6, 2025 - Approval of contract to design Digester 9 at the Water Reclamation Facility.
Alternatives: Reject the updated agreement and continue to operate under the terms and conditions of the existing agreement.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve the updated wastewater service agreement with the Goshen Community Services District (GCSD).
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 06/15/2026
Attachments:
Goshen CSD - Service Agreement (Existing)
Goshen CSD - Updated Service Agreement (Proposed)
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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