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Consultant says Oxnard bulk water users undercharged at the expense of consumers
By Phil Molina
Editors’ note: Several activists have disputed Oxnard’s water rate structure, claiming that bulk users (agricultural, commercial and industrial) are charged lower rates than consumers and that this is illegal, per CA Proposition 218. A consultant seemed to be in agreement with them at the last Utilities Rate Review Committee meeting this week. If this is so, it would have an unplanned, unfavorable effect on businesses, with unknown consequences. So the city will need to figure out how to deal with the situation. The letter that follows summarizes Mr. Molina’s initial take on the situation:
Wed, Sep 9, 2015
Mr. Mayor, Elected Council Members, Friends, and City Manager:
Carollo Engineers put on a very detailed presentation for the utilities rate review committee this evening. Mr. Hugh Steve McDonald presented most of the material. Steve informed us that he has 2 Master Degrees in Engineering and has participated in numerous other utility projects around the State.
Toward the end of the meeting I asked Steve if the water that goes to the local restaurant, farm, commercial business or my home was treated any differently. Steve acknowledged, “no the cost of treating the potable water for Oxnard residents, business, and industry was treated to the same high quality level”. I followed that question with another question. Why then are the variable rates for residential users higher than variable rates for commercial, industrial, and agriculture? Steve said the variable rates should not be different, but must be the same according to Prop 218 and the recent Fresno litigation.
Mr. Mayor unless staff can product detailed cost analysis showing Steve was wrong, what Steve said, which was being recorded and can be replayed, Oxnard needs to change the water rate structure immediately so that variable rates are the same regardless of type of user. Fixed rates, however, will vary based on the cost of meter size, and water line size if bigger meters, larger water pipe diameters are needed for commercial, industrial and agriculture than for residential users.
Please establish the variable rate correction immediately. This should save residential users a substantial amount on their water bills.
Respectfully,
Phillip Molina
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Phil Molina is an Oxnard resident, former Oxnard Finance Director and “whistleblower,” who exposed alleged corruption, and was fired. He sued and won a large award, after many years of litigation.
Previous relevant articles:
Local Oxnard accountant-activist makes utility rate/policy recommendations
By Lawrence P. Stein- Editor’s note: The new Oxnard Utilities Rates Advisory Panel, (URAP) has created quite a bit of healthy discussion. Even though he previously predicted a trebling of utility rates, he believes that consumers are being outrageously overcharged for water to support what he feels is an overly expensive,inefficient GREAT water recycling program and […]
September 8, 2015
Oxnard Holds Utility Rates Workshops
By Dan Pinedo- In anticipation of utilities rates increases the city of Oxnard has created a Utilities Rates Advisory Panel, (URAP). The panel is made up of 8 members representing the community from three categories: Business/Industrial, Single Family Residential and Multi-Family Residential. There are 5 alternates. Under the direction of Interim Utilities Director Daniel Rydberg […]
September 7, 2015
Former Oxnard Finance Director points out inequitable utility rates
By Phil Molina- Editor’s note: We published this letter from Mr. Molina to Oxnard officials and “friends” just as we received it. Friends, Mayor, Councilpersons and staff: How much do you like Oxnard? How fairly, equitably and justly do you feel Oxnard treats you? Do you like subsidizing the poor? Do you like paying […]
September 5, 2015
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