April 16, 2013

Cal Water Rate Case hearing May 15

Council received an update on California Water's request to the California Public Utilities Commission (CPUC) to increase water bills in Visalia by 28.3% over the next 3 years. The CPUC will hold a public participation hearing on the Cal Water Rate Case on Wednesday, May 15, from 6 to 9 p.m. at the Visalia Convention Center, 303 E. Acequia Ave. The public is encouraged to attend.

Cal Water is requesting a rate increase in Visalia that would generate $6.6 million annually - an increase of 28.3%. At a time when Visaians are conserving more, and Cal Water is delivering less water, both its corporate and district expenses are increasing at rates considerably higher than inflation. In contrast, the Division of Ratepayer Advocates' extensive review of the Cal Water rate case resulted in their recommendation of an increase of 9.7% over three years. DRA's chief areas of concern deal with: Cal Water's non-specific capital budgets; health insurance and pension plans for Cal Water employees and executives respectively; stock awards; and increased costs due to lower water sales. To view the staff report, click here.

Timeline: A final decision is due by the Administrative Law Judge within 60 days of it being submitted for his consideration. That decision is then forwarded to the full CPUC for consideration. It's expected the rate case process will conclude at the end of the year. Considerable time has been spent by City staff reviewing the application and testimony submitted by Cal Water in relation to their proposed multi-million dollar increase. The application and attachment are available for public review. In addition, the Division of Rate Payers Advocates (DRA), a division of the CPUC, has conducted an extensive review of the utility's application. On March 1, DRA submitted its reports, including an 84-page DRA report specific to the Visalia rate case. The DRA did recommend a significantly less increase, 9.3% over the three years, as opposed to Cal Water's requested 25.3% company wide and 28.3% Visalia District increases. To view the application, attachment, and DRA reports, click here.

Blue Ribbon Task Force to Consider Sales Tax Proposal 

Visalia residents have an opportunity to serve on a Blue Ribbon task force to consider a possible sales tax augmentation ballot measure.

The task force will consider a sales-tax proposal and make a series of recommendations, including if and when the measure should go on the ballot, the amount of the tax, and how the money should be spent. Council authorized a survey to determine whether Visalia residents would vote to impose the sales tax.

Applications are available at www.ourvisalia.com, or by clicking here. They are also available at City Hall North, 425 E. Oak Ave., Suite 301. Applications may be emailed, mailed or hand-delivered, but must be received by 5 p.m. Wednesday, May 1. Anyone who lives in the City of Visalia who applys by the deadline will be on the committee. For information, email [email protected].   

The task force will plan to meet every Tuesday between May 7 and June 25 at 7 p.m., and take a tour of the City facilities on Saturday morning, May 18. The location of the meetings may vary, and the Task Force may choose to meet at other times. Task Force members also must miss no more than two meetings in order to participate in the discussions and final recommendations.

The Council has asked for a recommendation from the Task Force by July 1, 2013. If the Council votes to put the measure on the November ballot, city officials would have to submit the paperwork to Tulare County by or around Aug. 10. To review the staff report, click here.

For information, call Community Relations Manager Nancy Loliva at 713-4535 or [email protected].