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HomeMy WebLinkAbout02/22/78 AGENDA WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, FEBRUARY 22, 1978 4:00 P.M. Call Meeting to order ~i00 Roll Call - Board Members: zRogers, Chairmgn; .~arton,//n g , Hoagland, 1.~Approve minutes of regular meeting of February 1, 1978. 2j Rosedale-Rio Bravo Water Storage District Service Agreement. - BOARD TO REVIEW -~ 3J Examples of Municipal Water Rates for Inside City and Outside j City services submitted by Tom Stetson. - FOR DISCUSSION 4 Staff Comments 5. Board Comments 6. Ad j ournment MINUTES WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY~ FEBRUARY 22, 1978 4:00 P.M. The meeting was called to order by Chairman Rogers in the Manager's Conference Room at City Hall. 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- dale-Rio 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 charges 150 percent more for outside city service and on a meter rate it is 100 percent or more. Mr. Stetson informed the board that we are 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. Kim Combs, Accountant for the Department of Water reported that the number of users inside the City was approximately 2,470 and there were approximately 1,864 users outside of the City. He, also, stated that when you put the calendar year together it looks like a high operating deficit of $113,000.00,'.but we must realize that we were operating the first six months of the year at the old rates that we inherited from Tenneco, during the last six months of last year things looked better because we adopted new rates as of July 1, 1977. However, he still feels the rates 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. ~he 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. 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 passed. St~ff comments Mr. Bergen informed the board that Water Manager John Blakemore has submitted his resignation effective Friday, February 24, 1978. Mr. Bergen proposed to promote John Chafin to Water Manager, but' not fill the Assistant Water Manager position, he feels that it would 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 expertise 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 consulting fees and thus be of saVings to the City. The~st'aff will come back to the board with specific recommendations as to where this position should be in the near future. At 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 th:e City Council on this subject this evening .... 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. ~'f~da Hostmyer, Secretary City of Bakersfield Water Board ! !: