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\f0\fs24 \cf0 >> Joanne: AS WE TOLD YOU A\ MOMENT AGO THE CITY OF SAN DIEGO\
WATER BILLS HAVE DOUBLED IN THE\ PAST FIVE YEARS THE INCREASE HAS\
GENERATED MILLIONS OF DOLLARS IN\ RESERVES, MONEY FOR FIXING AGING\
INFRASTRUCTURE.\ JOINING ME IS MR.
ROGER BAILEY.\ THANK YOU FOR BEING HERE.\
>> THANK YOU.\ >> Joanne: THE BIG QUESTION, WHY\
IS IT TAKING SO LONG OR THIS\ LONG TO FIX WATER PIPES THAT\
PEOPLE HAVE BEEN PAYING FOR.\ >> YES.\
APPROPRIATE.\ BACK IN 07 WE MADE THE CASE TO\
HAVE THE RATE ADJUSTMENT.\ WE SAID WE WOULD REPLACE\
PIPELINES AND BUILD AND UPGRADE\ OUR WATER TREATMENT PLANTS.\
I THINK IT'S IMPORTANT THE\ PUBLIC UNDERSTAND THE THREE\
WATER TREATMENT PLANTS WE SAID\ WE WOULD UPGRADE WE HAVE\
COMPLETED THOSE.\ THOSE WERE THE MAJOR PROJECTS IN\
THE CAPITOL IMPROVEMENT PROGRAM.\ IN ADDITION TO THAT WE SAID WE\
WOULD REPLACE PIPELINE, 75 MILES\ OF PIPELINE.\
TODAY WE HAVE COMPLETED\ 100 MILES OF THOSE PIPELINES.\
IN FACT WE HAVE COMPLETED\ CONSTRUCTION OF ABOUT 58 MILES\
OF THE PIPELINE AFFIDAVIT MOUNT\ WE TALKED ABOUT.
I THINK IT'S\ IMPORTANT THE PUBLIC UNDERSTAND\
WE HAVE EXECUTED AND WE'RE\ CONTINUING TO DO THAT.\
WE NEVER SAID THE PROJECTS WOULD\ BE COMPLETED BY FISCAL YEAR '11.\
>> Joanne: I BELIEVE THE REPORT\ SAYS OUT OF THE 111 PROJECTS TO\
BE COMPLETED IN 2011 ABOUT A\ THIRD HAVE BEEN COMPLETED.\
20 SOMETHING CANCELED OR ON HOLD\ AND A NUMBER THAT HAVEN'T BEEN\
\page COMPLETED.\ YET THE MONEY IS IN ANNA COUNT.\
>> YES, I THINK IT'S EASY TOE\ ITEMIZE THE LIST OF PROJECTS AND\
FIGURE WHICH HAVE BEEN\ COMPLETED.\
BY THAT MEASURE SAY WE'RE\ BEHIND.\
>> IF YOU LOOK AT IT IN A\ DIFFERENT WAY.\
LOOK AT THE MOST EXPENSIVE PART\ OF THE PROGRAM AND ASK YOURSELF\
HAVE WE EXECUTED OR HAVE WE\ COMPLETED MOST OF THOSE\
PROJECTS.\ THE ANSWER IS YES.\
THERE ARE SEVERAL WAYS TO LOOK\ AT THIS THING.\
IF YOU GO DOWN THE LIST OF\ PROJECTS AND NOT ALL PROJECTS\
ARE MADE EQUALLY.\ THAT'S ONE MEASURE.\
>> IF YOU LOOK AT THE TOTAL\ AMOUNT OF PIPES WE SAID WE WOULD\
CONSTRUCTION WE HAVE COMPLETED\ MOST OF THOSE.\
WE HAVE COMPLETED OUR WATER\ TREATMENT PLANTS WE HAVE TALKED\
ABOUT A FEW MOMENTS AGO.\ >> Joanne: THE SECOND HART OF\
THE STORY IS THE MONEY.\ I HAVE HAD E-MAILS FROM PEOPLE\
SAYING LOOK AT MY WATER BILL AND\ THE INCREASE.\
THEY WANT TO KNOW WHY.\ WHEN THEY HEAR THERE ARE\
HUNDREDS OF MILLIONS OF DOLLARS\ IN ANNA COUNT.\
I REALIZE THE CITY IS REQUIRED\ TO HAVE MONEY IN A RESERVE\
ACCOUNT.\ MORE THAN IT'S REQUIRED TO,\
SITTING IN ANNA COUNT.\ WE KNOW $155 MILLION MORE AND\
THEIR BILL GOES UP.\ THEY WANT TO KNOW WHY THEY'RE\
PAYING IF THERE IS A RESERVE\ AMOUNT OF CASH.\
>> YES, THERE ARE A FEW THINGS.\ I TOTALLY UNDERSTAND AND\
\page APPRECIATE THE FRUSTRATION.\ YES WE HAVE HAD RATE INCREASES\
OVER THE LAST SEVERAL YEARS.\ THINK IT'S IMPORTANT FOR THE\
PUBLIC TO UNDERSTAND THAT NUMBER\ ONE, LAST YEAR WE HAD A\
OPPORTUNITY TO ABSORB WHAT WE\ HAD INCURRED FROM THE CWI --\
>> Joanne: PAST THROUGH?\ THE INCREASE COST OF WATER.\
>> THE INCREASE OF RAW WATER\ COST PASSED ONTO US.\
WE ABSORBED THAT WITHOUT A RATE\ ADJUSTMENT.\
>> Joanne: IT DIDN'T GO UP YET\ AGAIN.\
>> IT DID NOT.\ THE SEND PART OF THE DISCUSSION\
IS WE NEED TO UNDERSTAND WE\ DON'T HAVE $630 MILLION SITTING\
IN THE BANK JUST DOING NOTHING\ WITH.\
THAT'S NOT A CORRECT STATEMENT.\ WE HAVE A LONG LIST OF\
OBLIGATIONS WE HAVE TO FULFILL\ INCLUDING KEEPING A CERTAIN\
AMOUNT OF RESERVE.\ IT IS AN EXPENSE.\
WE HAVE NO CHOICE.\ WE HAVE TO KEEP THAT.\
IN ADDITION TO THAT I THINK THE\ NUMBERS DO NOT REFLECT THE FACT\
THAT OF THAT $630 MILLION THAT\ THEY TALK ABOUT WE HAVE AWARDED\
AT LEAST IN CUMBERED OVER\ $178 MILLION IN OBLIGATIONS.\
MEANING WE HAVE OUTSTANDING\ CONTRACTS WE HAVE TO COMPLETE.\
SO, IT'S NOT LIKE THE MONEY HAS\ NO USE.\
WE NEED TO BE CAREFUL IN SAYING\ WE HAVE $630 MILLION IN CASH,\
BECAUSE WE DON'T.\ >> Joanne: WE REPORTED EARLIER,\
A COUPLE OF WEEKS AGO, WATER\ RATES MAY GO UP YET AGAIN.\
IS THAT GOING TO BE THE CASE?\ GIVEN THIS INFORMATION COULD\
PEOPLE EXPECT A ROLL BACK ON\ WATER RATES.\
\page >> I THINK IT'S PREMATURE TO\ TALK ABOUT RATE INCREASES.\
I THINK WHAT WE'RE DOING AND THE\ PUBLIC SHOULD UNDERSTAND WE'RE\
IN THE PROCESS OF ASSESSING OUR\ COSTS AND MAKING SURE THE COSTS\
WE EN CURE WE ARE ABLE TO COVER.\ BY THAT WE'RE DOING A COST OF\
SERVICE STUDY TO MAKE SURE THE\ STRUCTURE IS IN PLACE TO RECOVER\
OUR REVENUE REQUIREMENT.\ I DON'T WANT TO PREJUDGE IT ONE\
WAY OR ANOTHER.\ I SUSPECT AT THE END OF THE DAY\
WE WILL MAKE A RECOMMENDATION TO\ COUNCIL.\
>> Joanne: THANK YOU, ROGER\ BAILEY FOR BEING HERE.\
>> THANK YOU.\ }