HomeMy WebLinkAboutMINUTES - 05241994 - X.2 .J ( `• 1
TO: BOARD OF SUPERVISORS Contra
FROM: WATER COMMITTEE ' _ Costa
Supervisor Tom Powers (Chair)
Supervisor Tom Torlakson Co
DATE: May 24, 1994
SUBJECT: EAST BAY MUNICIPAL UTILITY DISTRICT (EBMUD) RATES; FUTURE INCREASES AND RATE STUDY
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Authorize Chair to sign a letter to EBMUD requesting that government rates at cost, and government
subsidized rate scenarios be considered as part of EBMUD's future rate study, and that consideration
be given to alternative rate/volume scenarios as part of future rate increases.
REASON FOR RECOMMENDATION/BACKGROUND
During the Water Committee meeting on May 23, 1994, EBMUD staff provided an overview of rate
issues related to future rate increases, government rate policy, and the tiered rate structure. Also
discussed was a detailed future rate survey which EBMUD will be,preparing. The Water Committee
reviewed the issue in response to Board-referred correspondence on EBMUD's government rates, and
concern that these.rates are higher than the cost of providing water.
The issue of one public agency paying another public agency a higher rate than the actual cost of
providing water, particularly during such difficult budgetary times, was of concern to the Water
Committee. The Water Committee recommended that letter(s) be sent requesting that at-cost and
perhaps subsidized government rates and impacts to the District be considered as-part of the rate
survey, and to caution that perhaps that proposed rate increases be tabled until such time as the study
is completed, or perhaps that alternative rate/volume scenarios be considered as part of any rate
increases in the short 'and long-term.
CONTINUED ON ATTACHMENT: YES SIGNATURE
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
Supervisor Tom Powers (Chair) Supervisor Tom Torlakson
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
UNANIMOUS (ABSENT I HEREBY CERTIFY THAT THIS IS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
Contact: Roberta Goulart (510) 646-2071 ATTESTED
cc: Community Development Department PHIL BAT HEL R, CLERK OF THE
Growth Management&Economic Development BOARD OF SUPERVISORS AND
Agency COUNTY ADMINISTRATOR
County Administrator's Office BY. � OA ,n.�Q�
T , DEPUTY
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W.A.T.E.R. - :s: CO
(Water Allocation Through Equitable Rates)
696 San Ramon Valley Blvd., Suite 30064 tf --
Danville CA 94526 j �=D
DE EL
March 23, 1994 51994
UPERVISOR-To. Su ervisors, Contra Costa County CLEOi
Supervisors, Alameda County cont7l.a.coss�co.
Mayors of Cities in these Counties
At the regular public meeting of the EBMUD Board on March 22,
I presented to the Board my response to Jorge Carrasco's memo to
the Board concerning rates. A copy of this memo is enclosed.
Originally, I had sent a letter to President Flashman and the
EPMUD Board requesting that consideration be given to charging
the counties and cities at the rate of' $1.15 per unit (the cost
of service), rather than the surcharge rate of $1.29 per unit
which is .low charged.
Please note that the memo's first paragraph states that I
recommended the first tier residential rate which is $1.04 per
unit. This is not correct. I recommended $1.15 per unit which is
cost of service rate.
The last paragraph states that a survey revealed that none of
several area water agencies charges a "special rate" for public
agencies.
When the reference to "special rates" is compared to the
first tier residential rate ($1.04 per unit), they admit that the
first tier rate is a 'special rate'. This preferential special
rate applies to the two thirds of residential customers on the
Bay side of the District. This means that the $1.29 public agency
rate .subsidizes the residential first tier residential of $1.04.
We request that you write to President Flashman and the EBMUD
Board requesting an explanation of your surcharge and that you be
charged for cost of service. EBMUD's address is 375 Eleventh
Street, Oakland 94=623. Also, .please send a copy to W.A.T.E.R.
Thank you.
Mayors:
Alameda _
Berkeley
Danville Sincerely,
Lafayette
Oakland
Orinda
Piedmont
Pinole
Pleasant Hill Bill Highfield, Preident
San Ramon W.A.T.E.R.
Richmond
Walnut Creek
`The Board of SupervisorsContra Clerk
kl Baha Board
Costa
and
County Administration Building 1 tCounty Administrator
Or
651 Pine St., Room 106 C v (510)646-2371
Martinez, California 94553-1290 County
Tom Powers,1st District
Jeff Smith,2nd District
Gayle Bishop,3rd District ��".s E:r..
Sunne Wright McPeak,4th District >?
Tom Torlakson,5th District
q cUU�T
May 24, 1994
Stuart Flashman
President
Board of Directors
East Bay Municipal Utility District
P.O. Box 24055
Oakland, CA
Dear Mr. Flashman:
The Contra Costa County Board of Supervisors, through the Board' s
Water Committee, has learned that EBMUD water rates charged to
government agencies are higher than the actual cost of the water
itself . The Board has some concern relative to one public agency
charging another rates which are above costs, particularly during
these difficult budgetary times .
We understand that EBMUD is embarking on a detailed rate survey. It
would be extremely helpful if this study could look at other
alternatives, such as providing water to governmental agencies at
cost, or perhaps at a subsidized rate. Ramifications of these as
well as the above-cost alternative should be examined in detail .
The Board has provided this letter by facsimile, in order to
provide our comments as part of the rate hearing which we
understand is scheduled today.
Thank you for your consideration of our request.
Apervnce ely:� ,
isor Tom Powers
Chair,
Board of Supervisors