MINUTES

DEPARTMENT OF WATER & POWER
BOARD OF COMMISSIONERS
MINUTES OF A SPECIAL BOARD MEETING
JUNE 5, 2007

A Special meeting of the Board of Commissioners of the Department of Water & Power, City of Big Bear Lake, was called to order at 9 a.m., by Chairwoman Willey, at the DWP Board Room, 41972 Garstin Drive, Big Bear Lake, California.

FLAG SALUTE:

Board Member Miller

BOARD MEMBERS PRESENT:

Barbara Willey, Chairwoman
Susan Conley, Vice Chairwoman
Bill Speyers, Treasurer
Fred Miller, Board Member
Bill Giamarino, Board Member

BOARD MEMBERS EXCUSED:

None

OTHERS PRESENT:

Jerry Gruber, General Manager
Diane Muir, Administrative Manager
Jennifer McCullar, Interim Principal Analyst
Steve Wilson, Water Superintendent
Dan Ballin, City Attorney, Best Best & Krieger
Robyn Bratton, Board Secretary
Rick Herrick, Mayor Pro Tem
Darrell Mulvihill, City Council Member
Liz Harris, City Council Member
Michael Karp, City Council Member
Brian Charles, Grizzly Newspaper
Danielle Seckler, Bear Valley News
Paul Mitton, Channel 6
Approximately 50 Members of the Public

ITEM NO. 3 - Approve Agenda

Motion made by Board Member Speyers, seconded by Vice Chairwoman Conley, and carried 5-0 to approve the Agenda.

Chairwoman Willey made a statement that this was a public hearing and the Board would take statements from the public regarding the proposed water rate increases. She stated that according to Proposition 18, it is illegal to exempt one property owner from paying their fair share of a water utility bill.

GM Gruber gave a brief statement as to why commercial rates need to be increased.

ITEM NO. 4 - Public Forum

Chairwoman Willey opened the Public Forum at 9:10 a.m.

Phil Dolan – 42162 Big Bear Boulevard, Big Bear Lake – Commercial Property Owner – Opposed

Mr. Dolan stated to the Board that he owns a Laundromat and is opposed to the tiered system. He would have to pass these increases on to his customers, some of which are low income customers.

Teri Gutierrez – 797l San Bernardino, Sugarloaf – Residential Property Owner - Support

Ms. Gutierrez stated that she pays for what she uses and so should everyone else.

Vi Colunga, CEO, Bear Valley Hospital – Opposed

Ms. Colunga stated that she is opposed to the sudden proposed increase and feels it should be done incrementally, over a period of time.

Walter Con, CFO, Bear Valley Unified School District – Opposed

Mr. Con stated that he is vehemently opposed. This increase would equate to a 112 percent increase ($32,000) to the District annually. He feels this proposal should be rejected and a joint team be formed between the community members and joint powers.

Stan Miller, Knickerbocker Mansion – Opposed

Mr. Miller stated that a lack of planning on the DWP’s part should not constitute an emergency for residents of the Valley. Rates need to be equal across the board. He is opposed to the tiers. He stated that there should be an across-the-board increase over a five to ten year period for commercial and residential customers.

Vince Smith, Riffenburgh Lumber – Opposed

Mr. Smith wanted to reiterate what others have said. Rates are beyond reasonable. He also stated that at this time, the DWP has no one on the meter waiting list due to the slow down of construction in the Valley.

Kent Kessler, Windy Point B&B – Opposed

Mr. Kessler stated that he has gone to great lengths to conserve and lower his water usage. He is in a R-1 Zone. He felt that 112 percent is not fair for him to pay, and that private rentals should also be paying their fair share as 72 percent of rentals in Big Bear are private and also zoned R-1. He believes the increase should be in increments.

Brent Tregaskis, Chamber of Commerce - Opposed

Mr. Tregaskis stated that he is representing the Chamber and does not believe the situation was handled well. He is shocked at the increase, and the Chamber Board does not support this proposal. It’s too much too fast. He sympathesizes with the DWP’s debt and infrastructure problems but believes the DWP should work with the businesses and come up with a better thought-out plan.

Robert Pool, Sleepy Forest Cottages, President of the Lodging Association – Opposed

Mr. Pool stated that his rates will go up 133 percent and he can’t pass this on to his customers. He has actually dropped his rates. He said that as many as 100 businesses could go under if this increase goes through. He has nothing to pass on to his customers when he is already below income.

Charlie Brewster, Owner of Robinhood Resorts – Opposed

Mr. Brewester stated that this increase would cripple the whole industry and impact the economic worth of the Valley. He stated that there are many empty buildings in the Village because it is too expensive to set up a business. Commercial rates should actually be cheaper than residential. The DWP needs to set up a committee to discuss in more detail.

Zintars Purvins – 243 Riverside – Residential Property Owner – Opposed

Mr. Purvins stated that he has owned property in Big Bear for 33 years and only uses his cabin three to six times a year. He feels he is being charged for unused water. Full-time and part-time property owners should be charged separately.

Dana DuVall – 137 Wabash, Sugarloaf – Residential Property Owner – Support

Ms. DuVall stated that she is a full-time resident and the old water system needs to be upgraded. She talked about how many sink holes in other cities are due to faulty water pipelines. There is also the fire issue and this is a threatened area. We need to make sure our water is being delivered properly and residents cannot bear the brunt of the increases alone.

Denise Proffer – 881 Victoria, Sugarloaf – Residential Property Owner – Support

Ms. Proffer stated that her biggest fear is fire and not if it happens, but when it happens, the water system has to be maintained – fire is an equal opportunity destroyer.

Helen Purvins – 243 Riverside – Residential Property Owner – Opposed

Mrs. Purvins stated that she has been a part-time homeowner for over 30 years. Her and her husband are retired and have a small, one bedroom cabin. Her tax bill is now higher than her residence in Yucapia. Her electricity has tripled in less than two years. She stated that there have been too many increases on her water and tax bill. There are no representatives for part-time residents.

Carolyn Knudsen – 1181 Sugarpine Rd. – Residential Property Owner – Support

Ms. Knudsen stated that the fire danger in Big Bear is higher this year than last year, and residents can’t continue to subsidize commercial property owners.

William Hazewinkel, The Inn @ Fawnskin – Opposed

Mr. Hazewinkel stated the he had requested information on some DWP customer accounts so he could send to the PUC. He said he waited three plus weeks for a written response from his letter to Jerry Gruber. He received a fax stating the DWP could not respond for 20-40 days.

Reese Troublefield, Big Bear Valley Rec & Parks District – Support

Mr. Troublefield stated that his dealings with Jerry Gruber and Bill La Have have always been fair. He understood that over the last 15, years the DWP’s water rates were benevolent. He supports Walter Con’s comment about the Park and School Districts sitting down to look at the issue again and why the 112 percent impact is all at once.

Chairwoman Willey closed the Public Hearing at 9:50 a.m.

ITEM NO. 5.1 - Consider Proposed Water Rate Increase

Chairwoman Willey made the following statements regarding public comments:

• Private home rentals are a City and County issue, not a DWP issue.
• There are no water charges on tax bills. Customers are not charged for water not used.
• Personal customer account information is not given out to the public.
• In the past, Bear Valley Electric did raise their rates and they tripled. It is a misconception as to how much commercial water rates are going to increase. Anyone wishing to know the amount of the increase on their bill is welcome to call the DWP office, and one of the staff members will calculate it.
• The DWP is also a non-profit organization.

ITEM NO. 5.2 - Consider Adoption of Resolution No. DWP 2007-11 Establishing      Water Rates, Charges, and Fees, and recommending to the City Council of Big      Bear Lake that the City Council Rescind Ordinance No. 2003-330 and a Portion      of Ordinance No. 2002-321 and a Portion of Ordinance No. 2004-340 and      that the City Council Adopt Increased Commercial Usage Charges and System      Rehabilitation Fees

Discussion from Board members and staff:

Board Member Miller stated that he has been on the Board for two years and the main reason he applied to the Board was because of his concerns for water. He also has a background in water He questioned why the residents have to carry the load for commercial owners. Water companies off the hill are experiencing the same issues that are facing the DWP.

Vice Chairman Conley stated that she owned a business in the Village for 15 years and has been a resident for 18 years. She can relate to the concerns as a business owner; however, the DWP has a responsibility to provide water safely to the public. During her 6-1/2 years on the Board, she has found that there has been an inequity between the residential and commercial water rates. The bottom line is this is the cost of doing business.

Board Member Speyers stated it might be good to have another presentation.

Chairman Willey stated that staff has conducted numerous presentations throughout the DWP community. It is a matter of the cost of doing business. The DWP is not making use of a commodity to hold the public as hostage, and the DWP has been working on and preparing for this for over a year.

General Manager Gruber stated that on June 11, the City Council will vote on this issue and there will be an expanded PowerPoint presentation to specifically identify certain businesses that will be impacted. He encouraged the public to attend.

Chairman Willey strongly urged the public to attend our Board meetings.

Board Member Giamarino stated that he was the newest Board Member. He feels the DWP needs to create an infrastructure that delivers water and solve problems for the Valley. We need to rectify what has been done in the past. He also encouraged the public to attend the Board meetings.

Administrative Manager Muir stated that there was a misunderstanding regarding the 112 percent increase. Depending on how the customer used water within their current base rate will determine the percentage change. The largest increase will be 112 percent; however, most will vary and some will go down.

Board Member Willey received five verbal ayes and the resolution was adopted.

ITEM NO. 6 - Adjournment

No further business came before the Board. Chairman Willey adjourned the meeting at 10:03 a.m.

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Robyn Bratton,
Secretary to the Board

Approved at meeting dated: 6/26/07

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