Loading...
HomeMy WebLinkAbout03/01/78 AGENDA WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, MARCH 1, 1978 4:00 P.M. Call meeting to order Roll Call - Board Members: Rogers, Chairman; Barton, Bergen, Hoagland, Ratty 1. Approve minutes of regular board meeting of February 22, 1978. 2, Possible litigation, ~ FOR DISCUSSION 3. Staff Comments 4. Board Comments 5. Adjournment MINUTES WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, FEBRUARY 22, 1978 4:00 P.M. The me~. ting was called to order by Chairman Rogers in the ~,~ Manager's Conference Room at City Hall. i~~ The secretary called the roll as follows: Present: Rogers, Bergen, Hoagland, Ratty Absent: Barton Thomas M. Stetson, Consulting Engineer for the City, also, attended the meeting. The minutes for the meeting of February 1, 1978! were approved' as Presented. The Service Agreement between the City of Bakersfield and Rose- dalerRio Bravo Water Storage District was presented for review. The board will review the agreement and discuss it at the next meeting. Examples of Municipal Water Rates for Inside City and Outside City Services submitted by Thomas M. Stetson, Consulting Engi- neer for the City was presented to the board for discussion. Mr. Stetson informed the board that he had looked into the rates throughout the state and he has found that predominately munic- ipalities~ and other public owned utilities charge a higher out- side rate. For example the city of Fresno which is on a flat rate ~harges 150 pe/~e~more for outside city service and on ~/~ a meter rate it is( 0~q~. ~rcent or more. Mr. Stetson informed 'i~· ~__ the ]~oard that we a~e in the process of reviewing the entire Ashe Water System for a general rate increase, but we will not have 'that completed for another week or ten days. Mr. Stetson feels that a higher outside rate is certainly justified and regardless of what we do about a general rate increase we should probably have a surcharge of more than 50 percent for outside users. ~im Combs, Accountant for the Department of Water reported that) ~he number of users ins%~t-~-e~City was approximately 2,470 and ~her(... were approxlmately%~,~64~users outside of the City. He, ~ Dlso~ stated that when y6~-p~the calendar year together it ~look.~ like a h~gh operating deficit of $113,000.00, but we must [realize ~hat we were operating the first six months of the year / ~ at the'old rates that we inherited from Tenneco, during the last ~six mo~hs of last year things looked better because we adopted ~/new rates as of July 1, 1977. However, he still feels the ~a~s ~are way to low. ~ .... Mr. Stetson, also, stated that costs have gone up considerably, pumPing costs are up to $29.00 an acre foot of water pumped, plus we are paying the pump tax on that which was $15.00 an acre foot last year and it is going up to $20.00 an acre foot on July 1, 1978. This is $50°00 an acre foot just to pump the water out. Mr. Stetson told the board that the old rates that were establish- ed by the Public Utilities Commission when it was under the old rates were based on the original cost of all those facilities. We obviously have to raise rates because the City is paying off bonds and if any facilities have to be replaced in the outside areas they will have to be replaced at present day costs which are going to be several times what the original costs were. 'So the outside user is getting the advantage of a service from a system that was built at low cost. The system is owned by the Citizens of Bakersfield and in effect you are subsidising outside users at those rates. It would be helpful for the board to establish the surcharge for outside city users to facilitate analysis of the general rate structure. Mr o Stetson will then report back to the board in the next two to three weeks. Dr. Ratty made a motion that we raise the rate for water service charged to users outside of the City to 50 percent above the in- side rate with the initiation of the rate within the next sixty days. The motion was pass~.~d. Mr. Bergen informed the board that Water Manager John Blakemore has submitted his resignation effective Friday~ February 2~, 1978. Mr. Bergen proposed to promote John Chafin to Water Manager~ but not .fill the ~ssistant Water Manager position, he feels that it woul.d be to the advantage of the Department to hire 'an engineer type person who is familiar with domestic Water to work in the public works department under John Chafin. Mr. Hoagland stated that. it is of utmost importance that we bring someone into this position who has some expertis~e in domestic water to help us with the problems we will be facing in this area. This engineer type person will be hired at a lesser salary and he will be able to preform duties that should reduce or consultin9 fees and thus be of savings to the City~ The staff will come back to the board with specific recommendations as to where this position should be in the near future. ~t this point Mr. Stetson outlined the type of problems that are involved in a rate system analysis. Mr. Bergen made comments regarding the water supply problems indicated within the area of the Rio Bravo Annex. Mr. Stetson will make a report to the City Council on this su'bject this even ing. Mr. Hoagland informed the board that we have to get this transfer of the Beardsley and Calloway Canals resolved. Mr. Hoagland has a letter dated February 16, 1978 from attorney Cam Paulden. Mr. Paulden is in objection to the lanuage. City Attorney Hoagland and Tom Stetson will contact Mr. Paulden regarding this matter. There being no further business to come before the Board, Chairman Rogers adjourned the meeting at 5:03 P.M. L l~d~-~{m~e r, Secdet ary City of Bakersfield Water Board ~..L~....,L~,,...,.,..., KERN DELTA WATER D ISTRI CT MIXO~. TeEASURE~ BAKERSFIELD. CALIFORNIA 93307 ,.os, ~/7~/;e/ 834-4195 February 21, 1978 Board of Directors Kern County Water Agency P.O. Box 58 Bakersfield, California 93302 Gentlemen: Kern Delta Water District has in storage at Lake Isabella approximately 8,200 acre feet of Kern River "power flow water". This water was stored last fall when things were quite dry. In light of current river projections and the extreme financial burden placed on the District by this water we a~e offering it for sale to Kern County Water Agency. Taking losses into consideration, we can deliver 7,600 acre feet to the Agency by making an exchange with Cawelo Water District. The exchange would be made as follows: Water would be delivered to Cawelo via the Beardsley Canal. A like amount of Cawelo State water can then be released and delivered from the California Aqueduct as part of the Agency's water pool. The price'of this water is offered at a maximum rate of $35.00 per acre foot. When all of.the charges are received from Southern-California Edison Company and if our costs are less, the rate per acre foot would be reduced. It. is our intention to "break even" and not make' a profit on the transaction. If this meets with your approval, we will be more than happy to sit down ,and work out the operation procedure with your staff. Very truly yours, ~i:'aul E.: ~eland ~ Kern Delta Water District PEL/lc cc: Cawelo Water District' Kern River Water Master' ~City of Bakersfield NORTH KERN'WATER STORAGE DISTRICT '~ '" BOX 1195 BAKERSFIELD, CALIFORNIA 93302 (805) 325-3116 May 7, 1975 Board of D~rector~' Kern Delta Water District '2714 L Street Bakersfield, California 93301 Attentiom: Mr. Stanley E. Willis, President Gentlemen: Among the mmny rumors currently circulating regarding the' Kern River water. rights, is a rumor that if your District acquires the Kern Island system, hy either purchase or condemnation, an effort may then be made to increase the diversions' of water from Kern-River above the historical.pattern-of recent years. It has been suggested that this' might be done under a theory tha~ Ker~ Island's rights are measured by its paper entitlement under the Shaw Decree rather than by its diversions and beneficial use in past years. Of course we do not know whether there is any basis for this' rumor, but our .Board of Directors has bec~me concerned that possibly there might be. Any increase in the Kern Island diversions over and above the historical pattern would result in a correspondimg decrease in the quantity of water available to North Kern Water Storage District. North Kern would thus be seriously d~m~ged by any such increase in the Kern Island diversions. Our Board of Directors has been advised that Kern Island's rights are measured . by and limited to the quantities of water actually.diverted and put to beneficial use in the recent pastf You can r~adtly understand, therefore, that if any increase in Kern Island's diversions over the historical patterm should be attempted, the North Kern Board of Directors would be duly boumd to resist and endeavor to prevent any such increase by whatever legal mea~u are available. Please do not take this letter to indicate an unfriendly attitude on the part of the North Kern Board toward the Kern Delta District's progrmms. On the contrary, North Kern's Board of Directors and management'wish to cooperate with your D~stridt, as they have done for nearly a quarter of a century with the Kern Island management. It is very much in the best interests of both Districts to work together in a spirit of harmony and mntual respect, and North Kern hereby· offers to do so. -. Yours very truly, Lee Froman President LF:ch cc A.C. Paulden, counselor ~bruary 22, 1978 Mr. Don Rogers, Chairman ~Q ~gi~t-Wat~r--and-Growth--Commit~e ~o,~e~~~ city of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Re: Kern River Water Utilization by Kern Delta Water District Dear Don: Enclosed are copies of several letters we have found necessary to send to Kern Delta Water District and Kern County Water Agency. Also is a copy of a proposed Kern Delta Water District letter which we understand was not sent to Kern County Water Agency until~several revisions were ~o-be made. This District has been vitally concerned over an operation which could, in the long term, become a gross infringement upon the rights of the other diverters of First Point Group water -- the City, its contractors and North Kern Water Storage District. We interpret Kern Delta's suggested sale as a gross infringement. This transmittal is for the purpose of informing your Water .Board of our concern.and action. If you have any questions, we will be happy to discuss them with you. Very truly yours, Lee Fr oman .~~ ~resident .~ ch cc Harold Bergen John Chafin ~ Cawelo Water District Kern Delta Water District Tenneco-West, Inc. - William T. Balch Rosedale-Rio Bravo Water Storage District ,NORTH KERN WATER STORAGE DISTriCT BOX ! !95 BAKERSFIELD. CALIFORNIA 9330:) (805) 32'5-3116 February 21, 1978 Board o'f Directors Kern County Water Agency P. O. Box 58 ~akersfteld, CA 93302 Attention: Mr. Stuar't T. Pyle C, en t 1 emen: Kern Delta Water District has informed us that a quantity of water which that District has in storage in Isabella Reservoir will be offered for sale to your Agency or to other possible buyers for use outside of the service areas of the various rights involved. . We have informed Kern Delta Water District that any such sale of that water would be a violation of the water rights of this District. The water in question was stored by Kern Delta in order to make it available for irrigation use ~n said service areas in the event of another dry year. A sale of the water for use outside those service areas would increase the quantity of Kern River water needed by Kern Delta for irrigation use in said servtce areas this year and thereby decrease th'e amount of water available to our District in direct violation of our rights. You will readily appreciate the importance of this potential problem to our District. Our Board of Directors has determined tha~ it will do whatever is necessary to protect North Kern's water rights, and has instructed me to send this letter to you. For your information I enclose a copy of o~r letter of today to the Board of Directors of Kern Delta Water DistrJct and a copy of the May 7, 1975 letter referred to therein. Very truly yours, Lee Froman President ch - enclosures Letter, May 7, 1975 Letter, Kern Delta Water District NORTH KERN WATER STORAGE DISTRICT BOX I 1S15 BAKERSFIELD. CALIFORNIA 93302 (805) 325°3116 February 21, 1978 Board of Director~ " Kern Delta Water District Del Kern Sta'tion Bakersfield, CA 93307 ' (;eh t 1 caen: You have informed us that a quantity of water your District has in storage in Isabella Reservoir will be offered for sale to Kern County Water Agency or other possible buyers fsr use outside of the service areas of the water rights involved. Such a sale would be a violation of the water rights of North Kern Water Storage District. This was explained to you before you bought the Kern Island and related rights -- see my letter of May 7, 1975. I enclose a copy of a letter I have sent today to the Board of Directors ol Kern County Water Agency notifying that Agency of this fact. Several days ago our counsel, Mr. Paulden, su~;};ested to your counsel, Mr. NcNurtrey, that it might be useful for the two districts to discuss, and consider ways and means of solving, your district's specific needs for funds with. which to pay for your share of the amount due to Southern Ca]ifornia Edison for the storage of power flows this past year. That invitation i-s still open.. Our Board of Directors at its meeting today authorized me to remind ym, of the invitation and to say that it wiI1 be glad to meet with your Board for this purpose, without prejudice to the rights or claims of either district. Very truly yours, [~Lee Froman President ~= ch eno l os"i,res .. Letter, I~,a:.' 7, 1975 Lette[; Kern CoL:nty Water Agency C~ WATER DEPARTMENT .. ': ~ February 24, 1978 To: Mayor and Members of the City Council ' From: Water Board The City Council delegated the administration and operation of the Ashe Water System to the Water Board. One policy of the operation of that water system is that it be self-supporting. During 1977, the expenses of operating the system exceeded the revenues. SinCe the expenses are fixed, it is necessary to increase revenue s. The system is owned by the taxpayers of the City of Bakersfield.. However, many of the customers of the system are located outside of the City. Most municipally operated water systems, levy a surcharge on water rates for service {o customers outside the municipality. Some surcharges are as high as 150 Percent (2½, times the rates for customers within the municipality), see attachments "A", "B", "C", and "D". Therefore, the Water Board has adopted a surcharge rate of 50 percent for water service to customers outside of the City based on a recommendation by our consultants. This may, or may not be sufficient to provide all of the necessary .revenue for the operation of the system. A study will soon be completed which will determine if a general rate increase to all customers of the system is necessary. .. " Councilman Donald' A. Rogers' ·. ~'~halrman, Water Board ~itv c~f R~orcf~old OPERATING STATEMENT Domestic Water Enterprise F6'r the Month of January 1978 Operating Revenues: Sales to Domestic Customers $ 44~618,35 Operating Expenses: Field Expenses: 0 & M Charge from Cal Water $ 13,192.00 Power for Pumping 24,847.40 Other Maintenance ~' '~0~ $ 38,039'.40 Administrative Expenses: Consulting~Engineer Charges -O- Charges from Other Departments $ 1,551.63 Property and Pump Taxes 4,079.63 Insurance 1,003.33 Management Fee from Cal Water 1,458.00 Refunds on Mainline Extensions -O- Miscellaneous General Expense 30.46 8,123,05 46,162.45 Net Operating Income Before Depreciation ($ 1,544.10) Depreciation Expense* 6,666.67 Net Operating Income (Loss) ($ 8,210.77) Non-Operating Expenses Interest Expense 11,892.00 Net~Income (Loss) ($'20,102.77) * Estimate Active Accounts EOM = 4,276 ($20,102.77) ~ 4,276 = ($4.70) per Active Account OPERATING STATEMENT __Domestic Water Enterp~ For The M6hth Of'-Fe§~ua~-~ 1978 Operating Revenues: Sales to Domestic Customers $ 36,490,93 Sales to Construction CustOmers 2,262.23 Total Sales $ 38,753,16 Operating Expenses.: Field Expenses: 0 & M Charge from Cal Water $ 13,192.00 Power for Pumping 8,514,36 Other Maintenance 2,00 $ 21,708.36 Administrative Expenses: Consulting Engineer Charges -O- Charges fromOther Departments* 1,667.91 Property and Pump Taxes 3,712.94 Insurance 1,003.33 Management Fee from Cal Water 1,458.00 Refund on Mainline Extensions -O- Miscellaneous General Expense 14.78 $ 7,856.96 $ 29,565.32 Net Operati.ng Income Before Depreciation $ 9,187.84 Depreciation Expense* 6,666.67 Net Operating Income (Loss) $ 2,521.17 Non-Operating Expenses Interest Expense $ 11,892.00 Net Income (.$"9,370.83) * Estimate Active Accounts EOM = 4,316 ($9,370.83) ~ 4,316 : ($2.17) per Active Customer