HomeMy WebLinkAboutRES NO 127-17(1)RESOLUTION NO. 127-170)
A RESOLUTION OF THE BAKERSFIELD CITY
COUNCIL AMENDING RESOLUTION NO. 127-
17 BY RESCINDING THE PREVIOUSLY
APPROVED INCREASES TO WATER RATES FOR
FISCAL YEARS 2018/2019 AND 2019/2020
FOR CITY DOMESTIC WATER SERVICE AREA.
WHEREAS, Chapter 14.04 of the Bakersfield Municipal Code authorizes the
City Council to establish rates and fees sufficient for the City to recover the costs
of providing domestic water services; and
WHEREAS, on March 7, 2008, the City filed a lawsuit entitled: California
Water Service Company and City of Bakersfield v. The Dow Chemical
Company, et. al. San Mateo County Superior Court Case No. CIV 470999 to
recover damages as a result of the contamination of its water from a fumigant
manufactured by Dow/Shell Oil which contained 1,2,3, trichloropropane or TCP;
and
WHEREAS, the State of California recently adopted a maximum
contamination level of 5 parts per trillion (ppt) for TCP; and
WHEREAS, in order to remove the TCP from City wells, the City has to install
treatment vessels containing granular activated carbon and provide funding for
operating and maintenance expenses for several years; and
WHEREAS, the City had to bond for the capital costs of the mandatory
remediation project in an amount of $23 million, resulting in higher water fees to
City customers; and
WHEREAS, in order to pay for the capital costs and financing of the
mandatory remediation project, on September 6, 2017, the City Council
approved Resolution No. 127-17 by which the City Council adopted increases to
water fees with the following schedule:
a. 16.0% increase effective October 1, 2017; and
b. 13.0% increase effective July 1, 2018; and
C. 7.6% increase effective July 1, 2019; and
WHEREAS, in January 2018, the City reached a settlement in the TCP
lawsuit, recovering a gross settlement amount of $82 million less legal fees and
costs, for a net of approximately $54 million, which will allow for the recovery of
the capital costs to install the treatment vessels for thirty-five (35) City wells; and oe0gKFa
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WHEREAS, as a result of the settlement, the City called the previously
issued bonds in the amount of $23 million, making the previously adopted 13%
water fee increase, effective July 1, 2018 and the 7.6% water fee increase,
effective July 1, 2019, no longer necessary to finance the mandatory
remediation; and
WHEREAS, the City Council believes that it is in the best interests of the City
to rescind the scheduled increases to the water rates that were set to go into
effect on July 1, 2018 and July 1, 2019.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Bakersfield
as follows:
The above recitals and findings are true and correct and are
incorporated herein by reference.
2. The Council hereby rescinds the adoption of:
a. The 13.0% increase in water fees that was to go into effect on
July 1, 2018; and
b. The 7.6% increase in water fees that was to go into effect on
July 1, 2019,
3. Except as amended herein, all other provisions of Resolution No.
127-17 remains in full force and effect.
4. This resolution shall take effect immediately upon its passage.
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
FEB 1 12918 by the following vote:
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AV ES: COUNCIL MEMBER g%W GONZALES, W41Q. SMITH, FREEMAN, SULLIVAN, EARLIER
AB N COUNCILMEMBERN is
BSENE COUNCIL MEMBER £I
CHRISTOPHER ERRY
ACTING CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
APPROVED FEB 2 1 2818
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
CB
JOSHUA H. RUDNICK
/Deputy City Attorney
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