GSWC Ojai operations manager
Frank Heldman reported that service issues brought up by individuals
at the last meeting were followed up on. Only three problems were
subsequently identified and had been resolved.
Over the course of the meeting,
Heldman took information from the few customers with concerns or complaints
so that he could address and improve problems at specific locations.
“We are committed to following up on service-related issues,”
Heldman said.
Water quality came up infrequently, the usual problem being iron and
manganese content that pose no health threat, but create “aesthetic
issues of taste and odor,” as water quality engineer John Brady
put it.
Some questioned the management of funds, but Golden State maintained
that they have continued to invest in Ojai’s infrastructure,
citing 36 projects in the past six years they displayed on a service-area
map. Golden State has invested $3.5 million in the Ojai water system
in the past nine years and proposes another $2.4 million for future
infrastructure needs. The seven projects, from wells, valves and spreading
grounds, are proposed between now and 2009.
When criticized for dividends paid to investors, Golden State countered
that they have paid their investors less than the rate of return authorized
by the PUC. This number is approved at 9 percent, and Golden State’s
presentation showed they have been paying about 4 percent.
The theme of the night boiled down to the fact that water service
costs have increased over the past eight years, a trend that is expected
to continue into the future. “With water, there is a continuous
process of repairs and upgrades,” said regulatory affairs manager
John Garon.
Some pipes in Golden State’s
Ojai system are up to 70 years old and require replacement. The company’s
presentation reminded all that, as a private water provider, Golden
State receives no federal grants or special assessments, so the costs
of providing water service are paid directly by its customers.
Because Ojai is its own GSWC region and has only about 3,000 customers,
the shared distribution cost of operations means customer costs are
greater than a district with tens of thousands of customers. Merging
with another region could result in the reduction of Ojai rates, but
may increase the rates of the regions with which Ojai merges.
If customers of those other
Golden State regions voice a high number of protests, the PUC might
not approve such a move, as in 2000, when the commission denied a
GSWC request for merging Ojai into Region One. A statewide rate merge
application by Golden State was also denied by the PUC in 2006
The water company hopes that a supplemental request to the CPUC for
an assistance plan would help defer the costs to low-income customers.
GSWC vice president Roland Tanner encouraged those who did not expect
to qualify for the program to attend the public participation hearing
on May 10 to tell the commission they would like to be merged with
other GSWC regions so as to lower the rates for Ojai.
Tanner said that vocal support could
make a difference in the commission’s perception of need for
a rate merging
Customer Kathy Couturie had a different suggestion during the comments
portion. She invited people to attend an Ojai Friends of Locally Owned
Water (F.L.O.W.) meeting next week to explore the possibility of a
municipally owned water district in Ojai.
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