Reasonable Rates

By James D. "Pretti" (Jim) Pretti

Keep any necessary rate increases well below the rate of inflation.

Those policies have been very effective in stablizing and controlling rates. During my nine years on the Board, the total rate increase to our customers has been 15%; about an average 1.67% per year. The Bay Area inflation rate has been over 32% during that same time period, about 3.7% per year. I have been very instrumental in keeping necessary rate increases to less than 1/2 the rate of inflation.

During this nine year period the $450 Los Vaqueros Reservoir was constructed on time and under budget; our Bollman Water Treatment Plant was converted to a state of the art ozone treatment; repairs were made to the infrastructure, and replacements were upgraded. Also during this period there were significant increases in the cost of the water CCWD purchases from the Federal Government. All of this was accomplished while still keeping rate increases well below (less that 1/2) the rate of inflation.

The success in containing and stabilizing rates is due to the cost-containment proceducres I helped put into place, more efficient operations; increased staff productivity, and long range forecasting and planning. In short, a lot of hard work.

I was the leading proponent in changing the District's financing policies. It was my recommendation to use short- term tax-exempt commercial paper as an interim financing mechanism instead of going straight to issuing bonds for construction projects. Short term tax-exempt commerical paper bears a very low interest rate, currently less than 2%. Using this financing vehicle has resulted in savings of over$4.8 million to date.

The District is very creative and innovative in seeking ways to lower and contain costs. We are able to obtain a large portion of our energy needs from providers other than PG&E at a substantial savings. We also have been very successful in obtaining a significant amount in government grants for many projects that would otherwise have to be funded by ratepayeres.

I have worked very hard to help put the District into a very sound financial position that will allow it to continue to provide our customers with good quality water and service while maintaining reasonable rates.