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Home My WebLink About06/07/78 WATER BOARD ~. CITY OF BAKERSFIELD WEDNESDAY, JUNE 7, 1978 4:00 P. M. Call meeting to order. Roll Call ? Board Members: Rogers, Chairman; Barton, Bergen, Hoagland, Ratty 10 Approve minutes of regular board meeting of May 10, 1978. 2. Communication from C. H. Williams, regarding City of Bakersfield legal support for Kern River Wa%ermaster. - BOARD TO DETE~4INE ACTION. 3, SCHEDULED PUBLIC STATEMENTS a. Statement f~om Park Stockdale Civic Association regarding water rates, 4. Staff Comments. 5. Board Comments 6. Adjournment 'MINUTES WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, MAY 10, 1978 4:00 P.M. The meeting was'called to order at 4:00 P.M. by Chairman Rogers in the Council Chambers. The Secretary called the roll as follows: Present: Rogers, Barton, Bergen, Hoagland, Ratty Absent: None Don Howard and Ken Deitz Associate Engineers for the City's Consulting Engineering firm; Stetson Engineers, Inc., also, attended the meeting. The minutes from the regular.meeting of April 26, 1978, were approVed as presented. Kim Combs, Accountant for the Department of Water submitted to the Board a recap of the Operating Statement for the City of Bakersfield Domestic Water .Enterprise for the calendar year 1977 and a recap of the Operating Income and Expenses for the City of Bakersfield Domestic Water Enterprise for the period January 1, 1978 through March 31, 1978. We usually prepare financial statements as of June 30th for the preceding twelve months. However, since there has been so much interest shown in the matter I thought these two statements would be appropriate. The first covers the operation of the system from the date the City took ownership (December 22, 1976) to December 31, 1977. I mentioned to the Board before, that the Domestic Water Enterprise was run' ning at a deficit. This information is based on the most recent data, including a final billing from California Water Service Company, Inc., adjusting 1977 .estimated Operation and Maintenance expenses to 1977 actual Operating and Maintenance received late in February. The second covers the operation of the system for the first three months of this year. SCHEDULED PUBLIC STATEMENTS Mr. Mac Ryan, 6024 Friant Drive, representing the Board of Directors' of the Park Stockdale Civic Association, read a prepared statement of the Park Stockdale Civic Association, Inc., dated May 3, 1978, protesting the surcharge which equals 50% of the billing rate, and a 35% increase in the general billing rate. Mr. Ryan requested that the Water Board supply his committee with the following: 1) The data on which the Water Board based its surcharge and rate increase, 2) The rate base projection used in computing the Water Bond Retirement Schedule, 3) Current Income and Expense statements, 4) Contract Agreement in which the City purchased the water system from Tenneco West, Inc., and 5) copies of the minutes of the Water Board for the last year. Mr. Ryan stated that the committee had received part of the information requested above. Mr. Ryan at this time re- quested a copy of the Engineering report submitted to the Board for the Ashe Water system, Mr. Combs informed him that this report would be made available to him during the meeting or immediately following the meeting. Mr. Bergen stated that the Agreement in which the City water system was purchased from Tenneco West, Inc. was in the process of being printed and in the meantime a copy is available for review in the City Clerk's Office. Mr. Trice Harvey, Kern County Supervisor of District No. 4, objected to the 50% surcharge in the unincorporated.area.'~'~r. B. C. Bisans, 500 Pebble Beach Drive, opposed the surcharge being imposed on 'the residents of the unincorporated area. Mrs. Donna Martin, 5909 Cochran Drive, posed several questions regarding the rate increase and surcharge to the Board. Francis Adams, 401 Hewlett Street, questioned the taxes in the incorpor- ated area. Gladys Carlson, a resident of Stockdale Estates objected to the waste of water in the streets. Mr. Don Howard, of Stetson Engineers, Inc., at this time responded to questions and made a ~detailed explanation of rates and the surcharge. Barbara Lechtrich, 500 Plato Court, questioned the billing pro- cedures of the Domestic Water System. Melvin Bredwell, 209 Angel Street, spoke out in opposition to the rate increase. Larry Dunham, 7604 Las Cruces Avenue, questioned the City being an operator of a water system. Charles Nourse, 504 Davies Court, questioned what f~nd the money was coming from to cover the deficit the Domestic Water System was running in. Harry Ennis, 5901 Hesketh Drive, questioned .the need for capital im- provements in the system. Larry Martin, 5909 Cochran 'Drive, opposed'the 50% surcharge and, also, made some statements and questions to the-Board and staff on various aspects of its operation. Further discussion followed and Don Howard responded to additional questions and gave further explanations regarding the above questions. Dr. Ratty stated that he was satisfied the surcharge and general rate increase was researched and thought out to establish equity for everyone. Chairman Rogers expressed his appreciation to everyone for attend- ing this meeting and bringing their concerns to the Water Board. The Board and staff may not have satisfied everyone here today, however, the public is invited to our meetings to bring their concerns to the Water Board's attention. There being no further business to come before the Board, Chairman Rogers adjourned the meeting at 6:25 P.M. L~nda Hostmyer, S~cretary City of Bakersfield Water Board FERN RIVER WATERMASTER Room 705, 1415 - 18th Street P. O. Box 1195 Bakersfield, California 93302 (805) 32s-3116 May 15, 1977 Memorandum to: Kern River Group From: C.H. Williams Subject: Support for Watermaster During the last few days, it has become apparent there is a need for the Districts to show tangible support of the Watermaster. I contemplate receiving this support in the following ways: 1) A Board resolution which supports and ratifies those recent activities regarding the acceptance of Kaweah River flood flows. I understand Buena Vista Water Storage District has already taken this action and North Kern Water Storage District will do so Tuesday, May 2) Acknowledge my retaining Cam Paulden, for necessary legal advice, as circumstances arise. I suggest we allocate his costs in the same manner as the other special flood problems; 20-24-24-32. I would appreciate confirmation of this support. 5-23-78 cc: H. Bergen K. Hoagland STOCK.ALE C[¥1C ASSOCL~.TIO~, IN(~. 205 RIO FJRAVO DRIVE · BAKERSFIELD, CALIFORNIA N'33og City Counci'l City of B~kersfield : Baker~fie id, California Gentlemen: It has t-cry recently become public knowledge that the Bakersfield City Council through tt.~ Water Board is attemptin~ to impose a "surcharge" equal to fifty ~erccnt of the billi~ r:..~e on their ~.;o~ter customers in the Stockd~le area. ~nls sur~,~narge is in additlo]~ to a just ~nnouneed thirty-five percent increase in the general billir~ rate. .- Initially, it ~~~pe~rs that the city is claiming that 'these increases are bar, ed on economic necessity. However,. until recently, the Stockdale area w,%ter was owned by a tax p~ying, profit makita,, commercial firm operating under rules of the Public Uttlitie/~ Co~.~mission. The' P.U.C. 's rules permit such firms to charge ~ fee' high enough~o cover a. ll costs, including capit~l recovery, ' incor.~ ta-¢ ~and a profit on ooeratlons.~ Consequently, it appears that the announced increase in the wai~er bi!!i~t~ is dt'signed to' recover more thrum increases in economic costs. ~Perha~ we residents of the StockPile ne ces-~%ry ~rea -are l~eing asked to ~ay Dart of the~ ~' co?/cC-~ of. the city"s-general or~el~atl, nc inefficiency. ~;~ith our _,~elattvely new water system we are not 'creating anythl~ but routine operating expenses. .Therefore, it appears that the basic rate increase is unjustified and that the su~'charge is motivated entirely by poiitics! considerations, h'e believe that this "surcharge" is discrlmin&tory, unre~sO~able, probably illegal and it can be charactorized only. as ~ ma.!iciou~ tntru-'..~o. ~.. .upon our ~ran~uiltty. Stnc~ the City of Bakersfield through the Council has control of its W~ter ask tP~t this Council cause the rate ' · n ....... r~,e and the surcharce act to be ~nat failing,, we request that imposition .of the' surcharge be delayed for able period in. order that we have time to study the problem and the possible alter~tives. The Board of' Directors for the Park ~ ' ' .De,dale Civic Association, together with ~members of the Kern City Civic Association ~f~ int~"~ted .... residents of ~~~.,..,.~.,~..,.... Es%ares ~_re in the process of forming a co~mittee to forw~ulate possible long-term solutions for Stockdale area problems. At the initial meeting of the ootcntia! committee zember~, it was determined that. the committee needs ~e upon which the ;';~ter Board. %~zed itn rate increase and surcharge. ~,:e ~iso need ~ccess to the city*s rate_ base ,oro.]cctlons used in compugtn~e w~,~oter .retirement schedule and ~ curr~nt t__~r~ome ~n~ exoence statemen~ for.the ~.~.~." s~.!e ooerati~ns. %to ~.~ill also ten-k!re a copy of the ~tntrac~ or a~greem~nb ;~'hich the qity purchased the Ker~n~I._~land '3ater Co. plus cooles of the minutes of !~.-6~rd m~etings ~ th,~' '~knt y~. Tn* ..:lmplest method for crcatil~ the necessary committee &ccess will be to photocopy the relevant docu~ents and mail them to the S%oekdale__ Enclave.. Committee,.20 5_~io ~ ,~___~%_~ ...20 Rio Bravo, Drive,_ B~kersflold,_ .~ Cali£_-- 9~0~. ~ea::onable photocopy exp~n~u~ n&~l be pa~Td; .- ' '" Also, at ~he.'Initlal meettng it was %he general concensus th=-t no. one },an~.-d to be ass:ociated With ~ city, or its counriI~, that ~.tQ'.,].d atte~mpt the surcharge ~neuver. Also, it waz su~;~csted that many of 'the retired r~:~:[2cnts of Kern City capmot afford ~his surcharge .... Uincerely, y j. M. Ry , ctor JI.R: jlc