Water Hike Outrage Continues
By Sondra Murphy
Last week’s presentation by a Golden State Water Company official to the Ojai City Council went over like a wet blanket. Ken Petersen, GSWC Coastal District regional manager, briefed the city on the 43 percent increase they are asking for from the California Public Utilities Commission. Petersen said a public meeting on the rate case was still under way at Nordhoff High School.
After a review of GSWC’s history, Petersen explained that the proposed increase, as reported in the OVN’s Jan. 22 issue, is to cover the cost of the deteriorating water system’s infrastructure and capital projects aimed at improving it. “We still have water mains that have been in the ground since 1929,” said Petersen, “and that, of course, affects water quality.”
If it sounds a bit like déjà vu to customers, it is because the same claims were cited by GSWC, an American States Water Company subsidiary, back in 2007. After going through an onerous CPUC hearing process, GSWC was allowed a 35 percent rate increase in 2008.
Petersen cited upgrades to aging pipes and supply wells, such as the San Antonio tank, as two of the reasons the increase is being sought. “Rates are established to allow recovery of operating costs and provide an opportunity to earn fair rate of return on investment,” Petersen said. “Since the last comprehensive general rate case in 2007, facility and operating costs have increased, resulting in the need to file the current proposal.”
Regarding increases in operating costs, Petersen specified water and electricity supply expenses, materials and supplies, group health insurance, property insurance, maintenance expenses, and postage. Petersen also said the company will be seeking a change from bi-monthly to monthly billing statements. “We have only five people working here in the coastal area and we would need an extra person reading that meter,” he said, if the rate case is approved.
“I’m sure we are all moved by your case for a rate increase, but what your customers are probably wondering is, ‘What are customers getting for these increases?,’” said Council-woman Sue Horgan. She added that it was her understanding that GSWC was directed at the last increase to submit reports to the city. “To my knowledge, we have received no such report.”
“The master plan that Mr. Petersen referenced is to be that report, but I have not yet seen it,” said city manager Jere Kersnar.
“I would suggest you start with those issues before giving us reasons for an increase,” Horgan advised Petersen.
“It sounds like you’re just assuring your rate of return to investors on the backs of the Ojai community,” said Councilwoman Betsy Clapp. “I’m fundamentally opposed to private water corporations owning public water. I think it’s pretty deplorable that, two years later, you’re asking for an increase of this amount.”
She then took it further. “I think it’s time for us to consider taking back the water,” said Clapp. “If we don’t, it’s just going to get worse and worse and worse and we’ll be hostage to a private company that has control over a public utility.” Clapp added that she would support looking into purchasing the city water supply through eminent domain and financing it through bonds.
GSWC has operated in Ojai under a long-standing, open-ended contract with the city and its service cannot be discontinued because it owns the pumps and water lines that serve the community, unless local water users buy the equipment.
Eminent domain is the inherent power of the government to seize private property, with due monetary compensation, but without the owner’s consent. The property is taken either for government use or by delegation to third parties who will devote it to public or civic use or, in some cases, economic development.
“It seems that not too long ago we did a study on the cost of taking over the system,” said Mayor Steve Olsen.
I am a resident that is subject to Golden State’s rates. I would rather pay more to take the water public water back through eminent domain than pay Golden State one penny more.
Let's Take The Water Back
2 Feb 10 at 10:53 pm
The City Council will let GSW run out half the people here. 43% a few years after another whopper and they won’t finish until 2030. The water bill will be higher than rent. Looks like Meiners Oaks is the winner, cheap water. The home values will rise in Meiners Oaks as Ojai empties out. The renters will have to move closer to their jobs as the water bill will be higher than the gas bill.Renters won’t have water and trash included anymore.Maybe this is the beginning of the end of a very diverse town, just the VERY RICH will be able to pay for water.
anonn
3 Feb 10 at 8:29 am
I am sick and tired of this out of town company shoving water prices down our throats through the lackluster CPUC.
Will the new pipes be lined with gold?
What a joke. If they try this, they will have hell to pay.
Jim Courage
3 Feb 10 at 11:20 am
Hate to shine some reality on this, but figure out what it would cost to buy this infrastructure. Divide by 2,800 customers. That is roughly what it would cost, per customer, for just the infrastructure.
Then, you have to staff it. Engineers, accounting, construction crews, IT, and of course Management. How many people would it take to run this? Now rent them workspace, and buy them office equipment, computers, etc.
Not much has changed in 5 years. Go take a look at that report, and ask a neighbor if they will pay their share.
Just Another Taxpayer
3 Feb 10 at 7:09 pm
If you can’t afford it, move to Ventura or back to the mid west. Ojai should be more unaffordable.
Get over it
3 Feb 10 at 9:34 pm
“Get over it” has it right, that’s why the City Council is letting the water report slide. Call your Council members and thank them for NOT getting the report the PUC said we were entitled to. Less people, less traffic, less affordable housing because of high water rates, less kids for the school and less older people. Who group benefits most?
anonn
4 Feb 10 at 8:54 am
I just bought a house in Ojai after living in Meiners Oaks. Yesterday, I received a bill from Golden State Water Company for $124.97. Imagine my shock, as it applied to a 23 day period for two people living in a modest home with modest water use. Needless to say I will reduce my bathing from once a day to once a month. Sorry for the smell neighbors. Clearly, it is a mistake, but I do wonder what my monthly water cost will be. On the other hand, working for a City Public Works department, I understand the cost for replacement and repair of deteriorating infrastructure, and its importance. I hope the City Council memebers will make a sober analysis and not indulge in political grandstanding when faced with the costly reality of safe and reliable water distribution.
Heat
4 Feb 10 at 9:15 am
All involved will have hell to pay if my water bill goes up.
Jim Courage
4 Feb 10 at 1:16 pm
the last time these we had a increase,I had my water tested by a private company,it seems alot of items golden state said were 26 times higher. I think the city should have water tested buy a third party and compare what gs. say’s.different sections of gs area.Next, buy gs out let casitas run it.Ive paid casitas since the dam was built,but have gs for water???????????????????check you water!!!!!!!!!!
dan
5 Feb 10 at 8:12 am
If the City Council was really planning for our City and Valley’s future they would bite the bullet and decide that it is in the best interest of the ratepayers to have a publically owned water company. How about an accurate study (things HAVE changed in 5 years – read about the Colorado River folks) so the City Council can educate themselves on the issues and make an informed decision instead of having the City Attorney tell them what to do. City residents have been complaining about the water company since at least 1930 (just read the Council minutes). The water company will never cost less than it will today – the infrastructure is in such deplorable shape that the cost of the delivery system should be at its lowest. The community should expect to see some real numbers before we decide that its not doable.
How about some leadership City Council?
A Taxpayer for Publically-Owned Water
5 Feb 10 at 3:05 pm
How about some leadership City Council?
(deleted)
no longer New Yorker
5 Feb 10 at 5:21 pm
I’m also tired of our residents being held hostage by a less than reputable water comapany. The primary function of city government is public safety and infrastructure. A safe and secure water source easily falls within the confines of both catagories. It is definately time to take another look at taking back our water.
coach mike
5 Feb 10 at 9:27 pm
I encourage Ojai residents to check the following link: http://www.foodandwaterwatch.org/water/pubs/reports/water-privatization-threatens-workers-consumers-and-local-economies
Also you will find more information on the privatization of water, on American Water Co. (GSWC is a sudsidiary of American Water).
This is another example of the corporatization of America.
GSWC does not care about the residents of Ojai, only care about their shareholders.
We need to wake up and get those bums out of our town.
It is obvious that the increases do not go to improve the water system as they are always asking for more money giving the same reason: fixing the system.
Enough is enough. Let’s own our water.
Fed up
7 Feb 10 at 8:36 am
how about $25,000000.00 bond split 2800 homes (approx)8928.57 ea, over 20 yrs $ 447.00 per yr ,37.20 per month…..tell gswc take ahike……..
dan
7 Feb 10 at 3:48 pm
how does each member of our city council,plus the new wanna-be’s stand on the gswater turkey that has us all by the throat.maybe we really need new blood.its time to step up or pick a number and step aside……………….
dan
7 Feb 10 at 4:00 pm
SHOCKING! Uncanny 1958 Prediction coming true; America’s Destruction from Inside
http://www.youtube.com/watch?v=DPZZK9gG1aU
Joe Friday
7 Feb 10 at 5:38 pm
Casitas Municipal Water District was offered the chance to take over the GSWC infrastructure some years ago. They did a study, found it would be a poor deal and too costly to replace the deteriorated infrastructure and passed.
Not much has changed in the past 5 years. The infrastructure is certainly in worse shape. Don’t take my word for it, just stop by CMWD and ask the director of capital projects.
Asking the City of Ojai to buy this, even using the figures of $37.50/month, what makes anybody think the water could be delivered cheaper? Now the City is on the hook for all the unknowns? Do you think GSWC makes $37.50/month profit? Simple math and critical thinking will tell you the answer.
Not gonna happen. But, please feel free to keep up the impotent outrage.
Just Another Taxpayer
8 Feb 10 at 10:14 am
Dan,you know what the Council thinks. They don’t even have the PUC report from 2008. Carol Smith wants to put in 467 low income homes with 5 plus people in each home, how does that help the water supply. She, Sue and Steve have done NOTHING to protect us. How about filing a complaint with the PUC for now. Get the report and stop them from raising rates until we have a clear picture of whats happening? Then, put in TERM limits and get some NEW BLOOD, they can’t do worse than 43%.
anonn
8 Feb 10 at 10:58 am
Low income housing is a state requirement and not the choice of any of the council members. Council members have brought up many of the impacts to Ojai, including water concerns.
Sondra Murphy
9 Feb 10 at 6:43 pm
Double the water prices and it will drive the working class drug dealing families outta town!
Send em home
10 Feb 10 at 8:23 pm
No it won’t! They can afford the hike, they don’t pay taxes! They keep ALL their money!
whatever
11 Feb 10 at 10:36 am
Sondra, the Council members have brought up many impacts to Ojai, and SOLVED NONE!
anonn
14 Feb 10 at 10:07 am