SHOULD A PUBLICLY OWNED UTILITY BE ABLE TO MAKE A PROFIT ON A COMMODITY SUCH AS WATER, AND KEEP IT? OR SHOULD IT GO BACK TO THE OWNERS THE RATEPAYERS?
Ownership of a fixed quantity of acre feet of Bunker Hill water per year is vested to the City of Riverside. Ownership of a fixed quantity of Bunker Hill water per year is vested to the Gage Canal. Gage Canal has transferred their Bunker Hill water rights to the City of Riverside.
The City of Riverside owns Riverside Public Utilities (RPU) and assigns them the task of delivering water to water meters throughout the City. RPU is assigned the service of delivery, billing, and maintaining the delivery system throughout the City. The revenue generated by that billing is retained, with the exception of Prop 218 and Measure A monies, by RPU to provide those services. In essence, RPU is a delivery system with no true ownership rights. All of their assets are owned by the City. That applies to everything in their possession from aardvarks to zebras. RPU possesses no water rights of water, they are merely the conduit for water that, by law, belongs to the City of Riverside.
The City of Riverside, through the RPU conduit has used 5,000 less acre feet of water in 2015 than they have protected rights to. The 5,000 acre feet belongs to the City of Riverside to do with as they please. On November 3, 2015, the Riverside City Council directed RPU to deliver the excess 5,000 acre feet to Western Municipal Water District (WMWD), a member agency of Metropolitan Water District (MWD), for the sum of $1.6 million. RPU state during the Public Hearing of the agenda item providing that direction, that the cost to RPU of moving that water to WMWD would be $0.3 million, thereby leaving an excess of $1.3 million that is the City’s revenue on the sale of that water. RPU’s mandate is to pay for their cost of operation through revenue generating billing. The cost of moving that water is, by their own statements is $0.3 million. Being that the water is owned by the City of Riverside, not RPU, any monies above the cost of delivery should go to the City’s General Fund to be allocated by direction of the Riverside City Council. In fact, the City is essentially acting as a customer in assigning the delivery of the 5,000 acre feet to WMWD to RPU. As the revenue from the transferred water is for an item possessed by the City itself, the City is allotting $0.3 million to RPU to cover their cost and maintenance.
The monies going into the General Fund from this sale are found and unanticipated funds that are not allocated to any particular use. The City Council is free to disburse this money however they see fit, from returning it to ratepayers as a reward for their water frugality, or burning it, with proper permits of course, in front of the fountain at City Hall. I would strongly recommend they choose the former, rather than the latter.
Art Cassel
TMC, RATED RIVERSIDE’S REGIONAL COUNTIES MOST, “NEGATIVE,” “RAUNCHY,” “LOW CLASS,” “VISIONS OF GRANDEUR,” “FULL OF B.S.,” “IGNORANT,” “MISGUIDED,” “BULLYISH,” “FILTHY,” “SICK,” “PERVERTED,” “STUPID,” “PATHETIC,” “DESPICABLE,” “DISAPPOINTING,” “BELOW THE BELT,” “A NEW LOW,” “SHOCKING,” “OFFENSIVE,” “INAPPROPRIATE,” “HURTFUL,” “MEAN SPIRITED,” “DISTASTEFUL,” “EMBARRASSING,” HORIFFIC,” “SLANDEROUS” “FIT TO BE VIEWED FROM THE REAR” AND MEZZSPELLED, “MISSPELLED” AND “OPINIONATED” BLOG SITE! TEMPORARILY BLOCKED BY THE CITY OF RIVERSIDE AT PUBLIC ACCESS SITES WITHIN THE CITY, THEN UNBLOCKED. I GUESS YOU CANNOT DO THAT ACCORDING TO THE ACLU. RATED ONE TWO ONE STAR OUT OF FIVE IN TERMS OF COMMUNITY APPROVAL RATINGS.. TMC IS NOW EXCLUSIVLY EXCLUSIVELY ON FILE WITH THE COUNTY OF RIVERSIDE’S DISTRICT ATTORNEY’S OFFICE (WE BELIEVE THIS WILL END SOON, SINCE THE FOCUS IS NOW ON THE IMPROPRIETIES OF MR. “Z”. WE TRIED TO TELL YOU, BUT NOBODY LISTENED), AND DON’T FORGET WE ARE PROSSIBLY POSSIBLY ON FILE WITH THE CITY OF RIVERSIDE’S POTENTIAL SLAPP SUIT LIST… A STRATEGIC LEGAL MANEUVER THAT CAN BE DONE ONLY IN RIVERSIDE WITHOUT A CONTRACT… AGAIN, THANK YOU COMMUNITY OF RIVERSIDE AND THE CITY OF RIVERSIDE EMPLOYEE’S FOR YOUR SUPPORT!
Art, thanx for the great description. I would have said some things a little differently but, let’s not quible. I took your numbers and did some quick calculations to see how our residential water rates compare to the deal WMWD just received from our city. Residents are charged (the 1st tier price) $1.14 per meter unit (CCF). That is equivalent to $376/ acre foot of water delivery charge. WMWD will pay RPU $60 per acre foot delivery charge. You will pay six times more for the same water delivered to your house! The city is unlawfully discriminating against its’ residents.