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<br />Some of the Council members may recall that the present water rates for the Emerald
<br />Lake district were establishedon May 1, 1950 following a comprehensive study which,
<br />among other things, revealed that ih the past "substantial annual losses to the City
<br />in the operation of the Emerald Lake water system had been the rule rather than the
<br />exception". Also that, "it was imperative for the protection of existing consumers
<br />in the entire area, that at least the igain supply lines and storage facilities be
<br />maintained in a manner that will insure a continuous source sufficient to supply
<br />numerous storage tanks located at various distributioh levels". At this time it was
<br />emphasized also that "current revenues, even with this proposedincrease, will not
<br />provide sufficient funds for the improvement of distribution facilities affecting
<br />individual consumers, due to the fact that necessary replacements and improvements to
<br />supply lines and storage facilities must be given first priority".
<br />OPERATING REVENUE AND EXPENSE:
<br />The following table summarizes the revenues and expenditures applicable to the above
<br />area for the past five years, during which time a careful segregation of funds has
<br />been included in the Uhlenberg annual audit of the Redwood City Water Department.
<br />REVENUE AND EXPENSE
<br />Emerald Lake Area
<br />Total Total Net Investment Unappropriated
<br />Operating Operating Annual Fixed Surplus
<br />Date Revenue Expense Incorhe Capital June 30
<br />From Uhlenberg Report for 7/1/51 $20,800.25
<br />1952
<br />064,700.81
<br />013,761.29
<br />$25,470.56
<br />$9,090.98
<br />1953
<br />64,304.60
<br />%,93.8.92
<br />52,639.16
<br />11,665.44
<br />22,646.12
<br />1,889.70
<br />1954
<br />64,436.70
<br />58,448.98
<br />5,987.72
<br />4,824.45
<br />726.43
<br />1955
<br />64,099.22
<br />52,974.01
<br />119125.21
<br />27.05
<br />10,425.83
<br />1956
<br />64,478.53
<br />52,476.96
<br />12,001.57
<br />6,119.08
<br />16008.32
<br />DISPOSITION OF ACCUMULATED SURPLUS
<br />In keeping with the above policy, all net earnings for theyears 1949-50-512 amounting
<br />to the sum of $28,412.79, were spent for the improvement of pumping supply lines and
<br />storage facilities as a general benefit to the entire Emerald Lake area.
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<br />Also, substantial investments have been made in "Fixed Capital" as shown in the
<br />Uhlenberg reports of 1952 through 1956s as shown in the above table. However, it is
<br />quite true that the accumulated surplus as of June 30, 1956, in the amount of $16,308.52,
<br />has not as yet been appropriated for any specific improvements. This, as explained
<br />by the Water Superintendent, has been held pending the outcome of annexation activities.
<br />FUTURE WORK PROGRAM
<br />It is clear from the above table that present water rates do not return sufficient
<br />revenue to finance a large scale improvement in this area, which in the Adamson report
<br />was estimated in excess of $2,000,000. However, in the interest of maintenance and
<br />service requirements of the existing supply and storage system, the following improve-
<br />ments are recommended by the Water Superintendent, to be financed as surplus funds
<br />become available.
<br />Estimated
<br />PROJECT Cost
<br />1. At the Vista and Oak Pumping site, replace one of the
<br />two old 28,000 gallon redwood tanks, renew roof of the
<br />other, and replace the existing old 25 hp pump and
<br />motor with a new 25 hp unit . . . . . . . . . . . . . . . . 0 5,000.00
<br />2. Abandon the old 4" steel line running from lower
<br />Emerald Lake at Lake Blvd. and Park Road, across
<br />private property to Summit Drive, and install
<br />approximately 1200 feet of new 6" line to replace
<br />the old man . . . . . . . . . . . . . . . . . . $ 99000.00
<br />3. At the Easter Cross storage tank, remove the old
<br />28,000 gallon wooden tank, and replace with a new
<br />28,000 gallon wooden tank, with necessary valves and
<br />connections $ 41000.00
<br />4. At the Million Gallon Reservoir, install a larger
<br />pumping unit with pump house, pump control valves,
<br />recording meter, and a new discharge line 7,500.00
<br />5. A new 6" inlet and outlet line from the Welbanks
<br />wooden storage tanks should be installed in a new
<br />location . . . . . . . . . . . . . . . . .. . . . . . . . . $ 8,000.00
<br />Total Estimated Cost of Improvements . . . . . . . . . . . . . $ 332500.00
<br />The Water Superintendent emphasizes the fact tla t these proposals are for the purpose
<br />of correcting -immediate deficiencies but are not adequate to meet the ultimate need
<br />of a large sc e development program, as proposed by Mr. Paul Adamson in his survey
<br />of the Emerald Lake Area.
<br />As I have stated in my previous reports on the Emerald Lae yaler problems, such
<br />major improvements can only be accomplished by some metLo o ong term financing,
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