HomeMy WebLinkAbout08/02/78 AGENDA
WATER BOARD - CITY OF BAKERSFIELD
WEDNESDAY, AUGUST 2, 1978
Call meeting to order. ~%' % - .
. Roll Call - Boar~embers: ~s, Ohairman;,BartOn,~ Bergen, Hoaglar~d,
~/ 14/ ~pprove minutes o~f regular meeting of Ju. ne 28, 1978.
,/ 21/ Agricultural Water Enterprise; Operating and Capital Budget review, -
' BOARD TO APPROVE. '
Domestic Water Enterprise; Operating and Capital Budget review. -
BOARD TO APPROVE.
4. Domestic Water delinquent accounts. - BOARD TO REVIEW AND DETERMINE
ACTION. ~
5. Staff Comments ~(~
6. Board Comments
7. Adjournment
MINUTES
WATER BOARD - CITY OF BAKERSFIELD
WEDNESDAY, ~, 1978
4:00 P.M.
The meeting was called to order at 4:00 P.M. in the City Hall
Caucus Room.
The secretarY called the roll as follows:
Present: Rogers, Bergen, Hoagland, Ratty.
Absent: Barton
c~taff Present: Chafin.,_Bo.gart_,~ Combs,~Needham,__Howard_,_Hos-tmyer--
George Nickel, President, Nickel Enterprises; Bob Lewis, District
Engineer, California Water Service Company; Earl Smith, President
of Board of Directors of Fairhaven Industrial Fire Protection
District; Chuck Mandl, President of Fairhaven Industrial Fire
Protection District; and Ernest Kartinen, Senior Civil Engineer,
Boyle Engineering; also, attended the meeting. ,
A letter'dated June-23, 1978; ~from California--Water Service
Company in regard to computer billing error on a total of 1,353
accounts for the month of June was presented to the board. Kim
Combs, Accountant for the Department of Water gave the following
statement regarding this matter: I was first made aware of this
error last Thursday. morning when I received a phone call from
Mr. DiMartino of California Water Service Company in San Jose.
In reviewing the possible courses of action that can be taken
here, with Mr. DiMartino and, also, with our outside consultants,
two alternatives have been suggested. They are: (1) California
Water Service could ma.il out a special billing to cover this
error immediately with a special notice explaining the error in
detail along with an apology'and requesting payment for the
additional amount currently due and payable. In addition to the
notice, California Water Service should, also, enclose a 9elf-
addressed, stamped envelope to facilitate the payment of the
additional billing. (2) California Water Service could add this
additional amount due and payable to next month's bill and, again,
enclose a special notice explaining in detail the error in the
previous billing.
It is the recommendation of the staff which is fully supported
by our consulting engineer that the first alternative be chosen
as the course of action, to be taken. That is, a special billing
with a notice and self-addressed stamped envelope be prepared
and mailed as soon as possible by California Water Service
Company.
Dr. Ratty made a motion that alternative number one (1) listed
above be used. The motion was passed.
Dr. Ratty made a motion that the staff prepare a draft letter
which can be mailed to customers of the Domestic Water System
showing the need for a rate increase as suggested by Mr. Bergen
at the Water Board meeting on June 7, 1978. The motion %~as
passed.
~' ~ ~ A Letter of Agreement dated June 27, 1978, between the City of
Bakersfield and Olcese Water District addressed to George Nickel
amending Agreement No. 77-07 dated November 7, 1978, was brought
before the board. George Nickel at this time addressed the
board saying that he felt this letter was valuable to the City
as well as Olcese.' Mr. Nickel'would like to have the Opportu-
nity to recover a Portion of that water which will not be need-
ed for a period of time.in order'to offset some of the costs
involved and make it economically feasible to proceed with the
improvements. Mr. Hoagland suggested that on page two (2),
item six ('6) of the Agreement the word immediately be omitted
and the words with due diligence be inserted.
Mr. Bergen made a motion that we approve the Agreement as
modified. The motion was passed.
Staff Comments
Fire Cheif, Dennis Needham presented a letter to the board
that he had written on June 28, 1978, to Mr. Earl Smith,
President of the Board of Directors of Fairhaven Industrial
Fire Protection District as response to their letter of June 23,
1978.
Mr. Earl Smith, at this time presented a map of the area to the
board. Mr. Smith addressed the board stating that he and other
representatives-.of Fairhauen~-were-attending-the_-board_meeting .....
to see what the City's action will be on the matter so that
they can determine what to do.
After further discussion Mr. Bergen made a motion that the staff
come back to the board at an early date with a plan and/or
recommendations on how we can develope a water system to serve
areas within the City, and if possible the plans should be
integuated with the proposed development of Fairhaven Industrial
Fire Protection District.
At this time Chuck Mandl President of Fairhaven Industrial Fire
Protection District addressed the board stating the reason the
district was formed was to supply water to the plants in the
area on a nonprofit basis, and he feels the same thing could
apply going across the street supplying it to the City of
Bakersfield.
Ernie Kartinen, Senior Civil Engineer with Boyle Engineering,
at this time addressed the board asking how the City was going
to serve the area in question. Mr. Bergen informed him that
this question will be answered in the plan prepared by the City
" staff. Mr. Bergen suggested that a City representative attend
the meetings of the Fairhaven Industrial Fire Protection District.
Board Comments
Dr. Ratty asked what had occured regarding the Army Corps of
Engineers turning back operation of the Isabella Reservoir to
the users. Water Manager Chafin explained that the Army Corps
of Engineers has set flood control criteria for the operation
of reservoir space in years of high watershed yield. This._'year
the Corps took over the operation of Isabella Reservoir on
April 5, 1978, and put the project on mandatory flood control
release. They returned the operation to the Kern River Water
Master on Monday, June 26, 1978. The main difference between
the operation by the Corps and the irrigation interest is the
crops determine on a daily basis what the outflow from the dam
shall be and most generally there is a difference in ownership
of the water.
Mr. Bergen presented to Chairman Rogers a booklet from Mr.
Lee Froman, President of North Kern Water Storage District,
of testimony on the 160-Acre Limitation from their recent
trip to Washington, D. C. on June 8, 1978.
There being no further business to come before the board',
Chairman Rogers adjourned the meeting at 5:15 P. M.
Donald A. Rogers, Chairman
City of Bakersfield Water Board
Linda Hostmyer, Secretary
City of Bakersfield Water Board
CITY OF BAKERSFIELD
Agricultural Water Enterprise
Estimated R~venues and Expenses
For the Period 7-1-78 to 6-30-79
Previous Current
Fiscal Year Fiscal Year
PROPOSED OPERATING BUDGET 1977-1978 1978-1979
Revenue from Operations (see attached schedule) $1,695,930 $1,862,150
Operating Expenses
Field Expenses:
Wages and Employee Benefits. $ 292~200 $ 322,400
U.S. Corps of Engineers O.&M. - Lake Isabella 22,115 22,120
Maintenance Expense 61,600 70,000
Weed Con t rol 12,300 30,000
Charges from Vehicle Pool 119,770 122,000
Charges from General Services Department 5,000 10,000
Expenses Reimbursed - Clearing Accounts (80,000) (lO0,O00)
Expenses Reimbursed - Equipment Rental (3,200) (5,000)
Expenses Reimbursed - O.&M. - R.R.B.W.S.D. (12,600) (20,000)
Expenses Reimbursed - O.&M. - T.W.I. (13,300) (26,000)
Total Field Expenses ~ 4.03,885 '$ 425,520
Admi ni strati ve Expenses:
Consulting Engineer Fees $ 36,800 $ 37,000
D.W.R. - Snow Survey 3,115 3,115
U.S.B.R. - Contract Administration 340 340
insurance 57,960 47,960
Charges from Administrative Departments lO,lO0 11,000
Less: Charges to Other Departments (18,200) (18,000)
Field Office and Related Expenses 17,700 18,000
Property Taxes 71,800 37,600
Miscellaneous General Expense 8,400 6:400
Total Administrative Expenses $ 188,015 $ 145,415
Net Operating Income Before Depreciation $1,104,030 $1,291,215
Depreci ati on 160,000 160,000
Net Operatin9 Income (Loss) $ 944,030 $1,131,215
Non-Operatin9 Expenses
1976 Water Bonds - Interest $ 692,160 $ 686,940
1976 Water Bonds - Principal -0- 173,880
1965 NKWSD-Isabella Bonds-Interest and Fees 33,065 31,180
1965 NKWSD-Isabel la Bonds-Principal 32,500 32,500
Less: Amortization of Bond Premium (1,100) (1,100)
Total Non-Operating Expenses $ 756,625 $ 923,400
Net Income (Loss) ~$ 187,405 $ 207,815
CITY OFBAKERSFIELD
~Agricultural Water Enterprise
Estimated Revenues
For The Period 7-1-78 to 6-30-79
Previous Current
Fiscal Year Fiscal Year
1977-1978 1978-1979
Sales to Five (5) Major Districts $1,500,000 $1,500,000
Kern River Canal & Irrigation Sales 60,400 160,000
Lake Ming. Agreement (Coun,~y of Kern) 4,700 4,700
Annual Pumping Agreements 450 450
Temporary Pumping Agreements 880 1,O00
Miscellaneous Irrigation Water Sales 53,300 145,000
.Oilfield Discharge Agreements 13,800 14,000
Sand Sales 50,400 25,000
Interest Income 12,000 12,000
Total Estimated Revenues $1,695,930 $1,862,150
CITY OF BAKERSFIELD
Agricultural Water E~terprise
Capital Budget
For The Period 1978/79 - 1979/80
The Water Department is now Participating with other Kern River
interests to investigate the feasibility of replacing and adding the
facilities listed below. The possibility now exists for low-head,
high-volume power generation on a non-firm basis. What this means is
that by combining Rocky Point and Beardsley River Weirs into a single
diversion structure, there is enough 'natural gradient in the Kern
River Channel to generate power as water is diverted into the Carrier
Canal. At.today's cost for electricity and its dependency upon water
supply Conditions, this power generation facility would have the poten-
tial of returning between $100,000 and $250,000 per year in generating
revenues. There is a strong possibility that federal funding would be
available to supplement suc)i a project.
Specific capital expenditures and improvements items requested
for the 1978/1979 and 1979/1980 fiscal years are found on the attached
summary.
CITY OF BAKERSFIELD
'A§ricultural Water Enterprise
Capital Outlay Program
For the Period 7-1-78 to 6-30-80
Fiscal Year Fiscal Year 2-Year
1978-1979 1979-1980 Total'
Source of Funds
Capital Improvement Reserve $ 275,185 $ 550,000 $ 825,185
Net Operating Revenues 207,815 200,000 407,815
Total Source of Funds $ 483,000 $ 750,000 $1,233,000
Proposed Application of Funds
1) 1-3/4 yd. Articulated FrOnt-End
Loader $ 37,500 $ 37,500
2) 1/2 Ton Canal Tender Pick-up
Truck 5,500 5,500
~ 3) Control Weir at River Canal 65,000 65,000 4) Replacetst & 2nd Pnt. of Meas. 75,000 75,000
5) Replace Beardsley River Weir ~ 300,000 300,000
6) Replace Rocky Point River Weir) $ 300,000 300,000
7) Replace Calloway River Weir and
Head§ate ~ 150,000 150,000
8) Improvement of 2,800 acre
Spreading Lands 300,000 300,000.
Total Capital Expenditure $ 483,000 $ 750,000 $1,233,000
CITY OF BAKERSFIELD
Domestic Water Enterprise
Estimated Revenues and Expehses
-For The Period 7-1-78 to 6-30-79
Previous Current
Fiscal Year Fiscal Year
1977-78 1978-79
ReVenues:
Domestic Water. Sales $ 610,385 $1,192,195
Construction Sales 27,150 31,130
Total Sales $ 637,535 $1,223,325
Operating Expenses
Fi el d .Expenses :~
O. & M. Charges from Calfornia Water Service $ 151,140 $ 197,285
Power for Pumping 156,640 225,800
Extraordinary Maintenance 7,290 48,000
Total Field Expenses $ 315,070 $ 471,085
Administrative Expenses:
Char§es~ from Other Departments $ 29,820 $ 32,800
Consulting Engineer Charges 34,385 75,600
Insurance Expense 12,040 9,965
Property Taxes 7,545 3,245 .....
Pumping Taxes 75,655 98,675
Management Fee' from California Water Service 14,990 18,750
Miscellaneo~s General Expenses. 1,155 5,000
Uncollectible Accounts Expense 900 3,055
Total Administrative Expenses $ 176,490 $ 247,090
Net Operating Income Before Depreciation $ 145,975 $ 505,150
Depreci ati on Expense 80,000 97,500
Net Operating Income $ 65,975 $ 407~650
Non-Operating Items
Re venue:
Non-reoccurring Bond Proceeds and Refunds
of Prepayments .. $ 65,900 $ 124,500
Expenses:
Bond Interest Expense $ 137,795 $ 142,695
Bond Principal Repayment -0- 36,120
Mainline Extension Refunds 2,780 23,475
Repayment of Cash Deficiency 71,825 62-,100
Net Non-Operating Items ($ 146,500) ($ 139,890.)
Net Excess or (Deficiency) of Revenues
($ 80,525) $ 267,760
CITY OF BAKERSFIELD
Domestic Water Enterprise
Proposed Capital Improvements
For The Period 7-1-78 to 6-30-80
Fiscal Year Fiscal Year Total for
1978-1979 1979-1980 Two Years
Sources of Funds:
Revenue from Operations $ 267,500 $ 325,500 $ 593,000
Depreciation 97,500 107,500 205,000
$ 365,000 $ 433,000 $ 798,000
Application of Funds:
Storage Reservoir in S.W. $ 100,000 $ 230,000 $ 330,000'
Meters for New CUstomers 40,000 40,000 80,000
Pumphouse at Well Site #9 20,000 -0- 20,000
Pumphouse at Well Site #1 20,000 -0-' 20,000
Pumphouse at Well Site #8 17,000 -0- 17,000
Driveway and Turnout at Well #4 3,000 -0- 3,000
Fire Hydrants in Developed Areas 24,000 12,000 36,000
Services from Existing Mains 6,000 6,000 12,000
Oversizing of Future Mains 25,000 25,000 50,000
New Well Sites in S.W. llO,O00 120,000 230,000
$ 365,000 $ 433,000 $ 798,000