HomeMy WebLinkAboutResolutions 2011-074 N.C.S. 05/16/2011Resolution No. 2011 -074 N.C.S.
of the City of Petaluma, California
APPROVING A LETTER OF OPPOSITION FOR SENATE BILL 34 (SIMITIAN)
WHICH ADDS A STATE WATER RESOURCES ASSESSMENT FEE
TO WATER DELIVERED TO CITE' CUSTOMERS
WHEREAS, the City of Petaluma conducts operation and maintenance activities to
ensure the function of the community's water distribution system; and,
WHEREAS, Senator Joe Simitian has proposed Senate Bill 34 ( "SB 34 "), which would
adopt the California Water Resources Investment Act of 2011; and,
WHEREAS, SB 34 would impose substantial fees as an annual assessment on local
water providers to fund statewide and regional water projects with no guarantee that the funded
projects would directly benefit City water consumers other than as members of the general
public; and,
WHEREAS, the pending legislation does not quantify the fee, but the potential fiscal
impacts of this pending legislation could include a possible annual water resources assessment
fee to the City's water delivery system in excess of $800,000; and,
WHEREAS, the City's operation of its potable water system has been modified to
comply with the Water Supply Act of 2010, implementing and exceeding the Best Management
Practices presented by the California Urban Water Conservation Council; and,
WHEREAS, addition of the proposed annual water resources assessment by the State of
California would cause adverse fiscal impacts to the operation and maintenance of the City of
Petaluma's potable water services and could fiscally impact the water ratepayers with a
significant rate increase.
NOW, THEREFORE, BE IT RESOLVED THAT the Petaluma City Council strongly
opposes Senate Bill 34 ( Simitian) for the reasons stated in the recitals above and directs the
Mayor to send the attached letter of opposition to California Senator Joe Simitian.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the /Ad ved as to
Council of the City of Petaluma at a Regular meeting on the 16` day of May, 2011, ( orm:
by the following vote:
AYES: Albertson, Barrett, Mayor Glass, Harris, Vice Mayor Healy, Kearney, Renee
NOES: None
ABSENT: None
ABSTAIN
ATTEST
City
Resolution No. 2011 -074 N.C.S. Page 1
May 17, 201 1
The Honorable Joe Simitian
California State Senate
State Capitol, Room 2080
Sacramento, CA 95814
Re: SB 34 California Water Resources Investment Act of 2011
Dear Senator Simitian:
Attached please find Resolution 2011-074 N.C.S., adopted unanimously by the City of Petaluma
City Council, to respectfully voice our opposition to the SB 34 legislation. The proposed
legislation will add substantial cost to the water delivery system for our community, which we will
have no choice but to pass on directly to our customers, the ratepayers.
The April version of the bill, obtained from your website, includes a blank where the fee is
identified. This uncertainty of impact to our ratepayers precludes our ability to evaluate the bill's
impact on the City of Petaluma water enterprise and our ratepayers' monthly bills. An earlier
version of the bill identified the anticipated cost at $110 /acre foot. This fee would result in a
burden to the City of Petaluma of approximately $810,000 and translate to an 8% increase to our
typical residential units.
The bill does not provide any reduction for urban water providers who have implemented the
California Urban Water Conservation Council Best Management Practices. The City of Petaluma
has consistently implemented and exceeded water conservation BMPs, investing in excess of
$500,000 per year in our conservation programs.
SB 34 at §87010.(c) states "Funding of public benefits should be guided by the beneficiary pays
principle... ", a statement we can support. The City of Petaluma already pays for many services
that provide local public benefit, including services of the California Department of Public
Health, and annual fees to the State Water Resources Control Board, satisfying the public benefit
reference included as §87010.(b) (2) (C). Additionally, we annually report Public Water System
Statistics to the Department of Water Resources, which would now be duplicated pursuant to SB
34 at §87067.(a).
The Sonoma County Water Agency (SCWA) and the retail water contractors, including the City,
have planned and funded regional programs to enhance local water supply, recycled water,
and expansive water conservation programs. In addition, in the past year SCWA and the retail
water contractors formed the Sonoma Marin Saving Water Partnership to further these efforts
and to ensure compliance to SBx7 -7, which requires a 20% reduction in per capita water use by
the year 2020. This reduction in per capita water use will result in a direct reduction in water
sales revenue to fund the water enterprise operation and maintenance activities of the City.
The City of Petaluma is committed to reaching these reductions in per capita water use and still
operate and maintain a system to ensure continuous provision of utility services to our
community.
The State legislature has already pressed costly mandatory measures on the City of Petaluma
and other water contractors with the Water Supply Act of 2010. To continue adding mandatory
fees or measures while we are still struggling to absorb or pass on the costs associated with last
year's measures, seems punitive; especially to agencies who have already reduced their
operating income through reduction of water use by our consumers. We respectfully request
that you work with us to solve the regional and state -wide water supply issues rather than merely
assess more fees.
Resolution No. 201 1 -074 N.C.S. Page 2
The Honorable Joe Simitian
California State Senate May 17, 2011
Re: SB 34 California Water Resources Investment Act of 2011 Page 2
Sincerely,
David Glass
Mayor
C: Senator Mark Leno
Assembly Member Jared Huffman
Senator Lois Wolk
Senator Robert Huff
Senator Mark Desaulnier
Senator Jean Fuller
Senator Loni Hancock
Senator Ed Hernandez
Senator Christine Kehoe
Senator Doug La Malta
Senator Carol Liu
Peter Detwiler, Senate Governance and Finance Committee
Cindy Tuck, ACWA Legislative Director
Pamela Tuft, Interim Director, Petaluma Dept. of Water Resources and Conservation
Grant Davis, General Manager, Sonoma County Water Agency
Paul Helliker, General Manager, Marin Municipal Water District
Krishna Kumar, General Manager, Valley of the Moon Water District
Miles Ferris, Utilities Director, City of Santa Rosa
Richard Burtt, Public Works Director, Town of Windsor
Milenka Bates, Public Works Director, City of Sonoma
Darrin Jenkins, City Engineer, City of Rohnert Park
Damien O'Bid, Public Works Director, City of Cotati
Tito Sasaki, North Bay Agricultural Alliance
Jennifer Persike, ACWA
Editor, Press Democrat
Editor, Argus- Courier
Resolution No. 2011 -074 N.C.S. Page 3