HomeMy WebLinkAboutMINUTES - 12191995 - D7 D.7
THE BOARD OF SUPERVISORS OF
CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on December 19, 1995, by the following vote:
AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson and Bishop
NOES: None
ABSENT: None
ABSTAIN: None
The Board of Supervisors considered a resolution authorizing County voter residents in
portions of East Bay Municipal Utility District (EBMUD) Director Wards 2, 3, and 4,
containing County territory, to vote on a ballot measure approving or disapproving the
creation of a new water district.
Victor Westman, County Counsel, clarified the advisory measure process, and the Local
Agency Formation Commission's (LAFCO) role in that process.
The following people presented testimony:
John Gioia, President, Board of Directors, East Bay Municipal Utility District,
2 Seabreeze Drive, Richmond;
John Nejedly, Community Concerned for Improvement of Quality of Water, (CCIQW)
400 Montecillo Drive, Walnut Creek;
Gary Balsdon, 301 Vernal Drive, Alamo;
Charles Brydon, 10 Sheri Court, Danville;
Ed Dimmick, 1251 Sheppard Court, Walnut Creek;
Bill Highfield, 1053 Hill Meadow Place, Danville;
All persons desiring to speak having been heard, Supervisor Bishop moved that the Board
authorize an advisory election in portions of EBMUD Director Wards 2, 3, and 4, containing
the County territory, and suggested that the motion include Paragraph 1, page 2, (as attached
to the proposed resolution) and that the Board pursue efforts to obtain a fair share of EBMUD
water rights.
The motion died for the lack of a second.
Supervisor Rogers moved that staff develop a plan to obtain more detailed information
regarding rate and tier issues, and he suggested that Board members continue to meet with
interested parties on water issues for further report to the Board.
Supervisor Torlakson seconded the motion.
IT IS BY THE BOARD ORDERED that Board members are AUTHORIZED to meet
with interested parties and East Bay Municipal Utility District representatives considering
water rate issues; and staff is DIRECTED to further report to the Board on information
regarding the issues that have been raised.
I hereby certify that this is a true
and correct copy of an action taken
and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED December 19, 1995
Phil Batchelor,Clerk of the Board
of Supervisord County Administrator
B
Barbara S. ra/eputy Clerk
c.c.County Administrator
County Counsel
Community Development Dept.
D.7 J
THE BOARD OF SUPERVISORS
CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Resolution on December.19, 1995„ by the following vote:
AYES:
NOES:
ABSENT:
SUBJECT: Authorizing an )
Advisory Election in portions ) RESOLUTION NO. 95/�
of EBMUD Director Wards ) (Elections Code § 9603)
2, 3 and 4 containing County )
Territory. )
l
The Board of Supervisors of Contra Costa County RESOLVES that:
It has been requested that this County's voters residents within involved County
territory contained within portions of East Bay Municipal Utility District Director Wards
2,3 and 4 be allowed to voice their opinions on and to indicate their approval or
disapproval of the attached ballot proposal. In this regard, it is determined, ordered
and directed as follows:
1. That the attached Advisory ballot proposal adopted this date is to be
presented for approval or disapproval by the voters of the Contra Costa County area
located within the described portions of Director Wards 2, 3 and 4 of the East Bay
Municipal Utility District on March 26, 1996.
2. The County Clerk (Elections Clerk) is directed to take all steps necessary to
place the above-noted ballot measure on the March 26, 1996 ballot for the involved
Contra Costa County area (both unincorporated and incorporated).
I hereby certify that the foregoing is a true and correct copy of a resolution
entered on the minutes of said Board of Supervisors on the date aforesaid.
Witness my hand and the Seal of the
Board of Supervisors affixed this 19th
day of December, 1995.
PHIL BATCHELOR, Clerk of the Board
of Supervisors and County
Administrator
By:
Deputy Clerk
ORIG. DEPT: County Counsel
cc: County Administrator
Elections Department
Executive Officer, LAFCO
EBMUD, Oakland
HADFOTI\DOCSWDV-ELEC.WPD
D.7
ADVISORY VOTE ONLY
1. Should Contra Costa County and respective Cities pursue efforts to detach .
an area including Danville, Alamo, Moraga, Orinda Lafayette, San Ramon, parts of
Walnut Creek and Pleasant Hill, and nearby unincorporated territory, from the East Bay
Municipal Utility District (including Ward 2, the Contra Costa portion of Ward 3, and the
southeastern portion of Census Tract 3560.02 within Ward 4 of EBMUD) and pursue
efforts to obtain a fair share of EBMUD water rights?
OR
2. Should proceedings be initiated in accordance with the Cortese-Knox Act to
review, study and report on a proposal for reorganization that the territory of Contra
Costa County located within the East Bay Municipal Utility District (more particularly
Ward 2, the Contra Costa portion of Ward 3, and the southeastern portion of Census
Tract 3560.02 within Ward 4 of EBMUD) be withdrawn from that District and a new
district formed to provide water service in that territory?
H:\DFOTI\CL-SES\AG ENDA%DV-VOTE.W PD
EBPiI_iD )EhdEF,.,HL HGF IU : 510-287-0188 DEC 18 "95 135 : 12' Il . 0i)2 F
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DEC 15 '95 05:32PM EBMUD PUBLIC AFFAIRS P. 1
�
&11 '�j/
t
Fax Tumsmitial 'Memo
Date 12/15/95 310 4:00 No. ei
Board of Supervisors of cc co.
� Join M. Gioia, President
r Hoar of nirectors
F"0 310-M-0149
faxas - various Ensk, *2 1a. 287-0474
See attached.
DEC 15 '95 05:32PM EBMUD PUBLIC AFFAIRS P.2
"Sr PAY
MUNICIPAL Vr1LIrY DISTRICT
December 15, 1995
Ms. 00 Bishop,Chair
Board of Supervisors
Contra Costa County
651 Pine Street,Room 106
Martinez, CA 94553-1393
i
Dear Ms. Bishop:
Thank you for your letter of December 9, 1995 conveying the Board of Supervisor's perspective
on EBMUD rates. I want to tell you about the decisions which EBMUD's Board of Directors
made on December 12. I also want to give you some factual information that will hopefully allay
some of your Board's concerns,many of which are based on misinformation.
Your letter urged EBMUD to thoroughly review all issues related to rates,and provide an overall
plan that is fair and equitable to all ratepayers. That is good advice, and we have done just that.
After listening carefully to extensive public input received from customer calls and letters, at
Board meetings,at a public meeting in Walnut Creek,and at a public hearing Tuesday,the
EBMUD Board voted 6-1 to reduce the fourth-tier charge (for water use above 738 gallons per
day)from 53.44 to 81.95,a reduction of 36%. To ensure that our budget remains balanced,that
cut was offset by an increase in the third-tier nate from S 1.50 to S 1.65 (third-tier charges are
incurred for use between 394 and 738 OPD). Monthly water bills for these users will increase
between 1%and 5%. The second and first tier,which are for water use below 394 and 173 GPD
respectively,will not change.
Your letter urged EBMUD to adopt a rate system which does not rely on high-volume users to
"subsidize other residential users west of the hills."It also claimed that an inclined block rate
stivcture is"of questionable use in non-drought periods" Both of these statements are koorrect,
and let me explain why.
First,neither the tier system adopted in June nor the tier system effective January 1, 19%has say
east-west or west-east subsidy. Under bA rate smcftm,east side single-family homes use
35%of the water and pay 36%of the total residential water bill. Sixty-four percent of the
revenue is obtained from west of the hills customers. Even if EBMUD were to hstitute flat rates
based on,the average cost of service,we would receive the same amount of revenue ft+om east of
the hills as we do now. A careinl cost of service analysis,done as part of our rate study, shows
that west of hills avemSe cost of service is$1.31 per unit and east of hills is S1.45 per unit.
aX LLMNM/TIUR.*"LAW. CA ~-00..NfOi 81"M
�pua a oMt�tats .reww�oeaw�N.env rowm.Iry�a�
M&M rtiMw. fthum.wise. W�v aftmw. Nwam a 80MOIM
DEC 15 '95 05:33PM EBMUD PUBLIC AFFAIRS P.3
t
Ms. Gail Bishop,Chair
Contra Costa County Board of Supervisors
December 15, 1995
page 2
In addition,tiered tate structwes eneomp conservation and maximum efficiency of water
supply use. In 1993, Governor Pete Nilson signed AB 1712 into law which declares that water
oomuden►ation is an important component of Califomla's water policy for the fatue and that all
Measonable efforts to conserve water should oontinue to be a high priority of California's water
policy. It also expressly provides that any public agency which supplies water for municipal use
any encourage water conservation through rate structure design. All of the nudor California
water districts(including EBMUD)and environmental groups(including the Sierra Club)have
signed.a best management practices agreement which recognizes tiered rtes as an effective way
to encourage conservation.
Your letter also said that EBMUD's first-tier rate should not be considered a lifeline rate.
EBMUD adopted the first-tier rate to lieu of a lifeline rate; and,if some of our information did
not make that clear,that was an error. The first tier,which applies to AU customers, was set at
the District's average winter waxy use level(an approximation of indoor water consumption).
Thi6 provides a conservation incentive to most users throughout the year,and recognizes that
tonere are basic needs for water that must be met affordably for AU customers.
Finally,your letter states that the seismic improvement surcharges on parcel size are another
example of ratepayers east of the hills subsidizing those on the west. The fact is that east side
customers(who use 35%of EBMUD water)pay 33%of the seismic improvement program
costs. While much of the construction activity will occur on the west side,that work will benefit
all parts of the service area after a major earthquake by improving system-wide reliability. One
of the improvements,the southern loop,wall provide badly needed redundancy for the San
Ramon Valley--ensuring that water can be pumped from west to east in the event of problems on ,
our major distribution lines that traverse the valley.
I hope this information has clarified the rate structure and the principles used by EBMUD to set
rates and charges. if you have questions,the EBMUD staff or i would be happy to answer them.
I also want to let you know that we plan to attend the Board of Supervisors'meeting next week
at which you will discuss the concept of an advisory ballot measure regarding detaching portions
of central Contra Costa County from the EBMUD service area. I sincerely hope that your
discussion will begin by asking whether such a measure has any merit whatsoever,given the
reality that it is wholly inconsistent with the direction of California public policy(to consolidate
government functions when appropriate to encourage economies of scale and avoid
inefficiencies)and would,without a question,result in higher rates for all customers curmntly
served by EBMUD. Tine most effective way to ensure a reliable,high-quality water supply at a
Sir price should be foremost in your minds as your Board co uldess this question. As you know,
EBMUD water users(including those east of the hills)enjoy lower rates than their neighbors in
DEC 15 '95 05:34PM EBMUD PUBLIC AFFAIRS P.4
Ms. Gail Bishop, Chair
Contra Costa County Board of Supervisors
December 15, 1995
page 3
the Contra Costa Water District and the Dublin San Ramon Services Dist&t. Organization
narttvcturing is a highly complex matter,and requires careU consideration of a wide range of
Issues related to water rights,provision of instream flows to meet state-and federally-imposed
requirements for environmental protection, the ability of smaller districts to comply with
increasingly more stringent water regulations,the ability to adequaWy address regional water
resource management concerns,debt collection,the impact on fature bond ratings,and the costs
for implementing a reorganization.
I want to expand on just one of the issues listed above:water rights. Despite what some people
say, central Contra Costa customers do not have sole ownership of 125 million gallons per day
(MCD)of water. EBMUD Sled a water rights application in 1949 for 125 MGD to meet
growing population needs on both sides of the hills during and after World War II. This Sling
was to supplement the 200 MOD water right entitlement previously obtained. EBMUD water
rights are assigned to EBMUD as a whole and are not granted to serve any specific portion of the
District service am. Portions of west county (Pinole,Hercules,and Rodeo)were annexed to
EBMUD at approximately the same time as Walnut Creek,Denville,and Alamo. San Ramon
and Blackhawk were annexed after the new water rights were obtained.
In closing,I want to note the inextricable links between ensuring a reliable,high-quality water
supply and water rates. EBMUD's original fourth-tier price of$3.44 was set with caret'bl
consideration. It represents the long-run marginal cost associated with ensuring adequate, secure
and stable water supplies for the 1.2 million customers EBMUD currently serves as well as those
to come in the tWture within the service area. The complete analytical derivation of the$3.44
morainal cost is contained in the CH2M 101 rate study. a would note,for the record,that the
"led marginal rate of 86 cents that Mr. Carl Danner has presented in the newspapers is
incorrectly derived and intuitively unr`asonable because it ignores the Costs which ate incurred in
every year to have sufficient water supplies to meet needs in drought years.) EBMUD is moving
forward on projects that will allow us to bring our water from the American River and both
deliver it to our customers and provide storage for droughts, These projects are expensive, and
are most cost-effectively funded by a latae member of customers.
EBMUD's Board members recognize that our customers were ill-pre aced for the marked change
to a marginal cost pricing approach,and so angered by the bills they reoeived that we could not
begin to discuss the vital work that is going on to secure reliable supplies. We have taken the
necessary step:to set in place a rate structure that is consistent with the principle of Simess,that
charges the cost of service to each customer class,and that is sufficient to cover expenditures.
We need the support of the Board of Supervisors in promoting public dialogue about the water
supply projects because public support is vital to Completing the work that has begun. I welcome
a joint meeting of our Boards to discuss this issue.
DEC 15 '95 05:35PM EBMUD PUBLIC AFFAIRS P.5
Ms. Gail Bishop, Chair
Contra Costa County Board of Supervisors
December 15, 1995
page 4
We are at a critical juncture in California water rights history and are intensively involved in
discussions about the Bay-Delta needs,the needs of the Mokelumne River,and the needs of our
customers. We must be unified in our efforts to protect our current water supplies and secure
adequate additional supplies for the fbture.
Thank you for your time,and consideration.
Sincerely,
(5ohn M. Gioia
President
Board of Directors
cc: Contra Costa County Board of Supervisors
EBMUD Board of Directors
W. Phil Batchelor,County Administrator/Clerk of the Board,Contra Costa County
Mr. Dennis Diener,Interim General Manager, EBMUD
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