|
34
<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 th 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 3ftein 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 1'
<br />supply lines and storage facilities must be given first priority".
<br />OPERATING REVENUE AND EXPENSE: j
<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 1�
<br />Emerald Lake Area j
<br />Total Total Net Investment Unappropriated
<br />Operating Operating Annual Fixed Surplus
<br />Date Revenue Expense Income Capital June 30
<br />From Uhlenberg Report for 7/1/51 $20,800.25
<br />1952 $$64,700.81 050,93.8.92 $$13,761.29 $G25,470.56 $ 9,090.98
<br />1953 64,304.60 523639.16 11,665.44 222646.12 1,889.70
<br />1954 64,436.70 58,448.98 5,987.72 4,824.45 726.43
<br />1955 64,099.22 52,974.01 110125.21 27.05 10,425.83
<br />1956 64,478.53 529476.96 12,001.57 6,119.08 16,308.32
<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 $$282412.79, were spent for the improvement of pumping supply lines and
<br />storage facilities as a general benefit to the entire Emerald Lake area.
<br />Also, substantial investments have been made in "Fixed Capital" as shown in the ,
<br />Uhlenberg reports of 1952 through 1956, as shown in the above table. However, it is
<br />quite true that the accumulated surplus as of June 30, 1956, in the amount of $16,308.52,
<br />has not as yet been appropriated for any specific improvements. This, as explained
<br />by the Water Superintendent, has been held pending the outcome of annexation activities.
<br />FUTURE WORK PROGRAM
<br />It is clear from the above table that present water rates do not
<br />return sufficient
<br />revenue to finance a large scale improvement in this area, which
<br />in the Adamson report
<br />was estimated in excess of $$2,000,000. However, in the interest
<br />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
<br />as surplus funds
<br />become available.
<br />Estimated
<br />PROJEC.T
<br />Cost
<br />e 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
<br />50000.00
<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 .
<br />t
<br />90000.00
<br />r,
<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 />"
<br />connections . . . . . . . . . . . . . . . . . . . . .
<br />. . $$ 4,000.00
<br />4. At the Million Gallon Reservoir, install a larger
<br />pumping unit with pump house, pump control valves,
<br />recording meter, and a new discharge line .
<br />7,500.00
<br />5. A new 611 inlet and outlet line from the Welbanks
<br />wooden storage tanks should be installed in a new
<br />location . . . . . . . . ..
<br />$$ 8,000.00
<br />Total Estimated Cost of Improvements . . . .
<br />$$ 33,500.00 j
<br />The Water Superintendent emphasizes the fact that these proposals
<br />are for the purpose
<br />of correcting immediate deficiencies but are not adequate to meet
<br />the ultimate need '
<br />of a large scale development program, as proposed by Mr. Paul Adamson
<br />in his survey
<br />of the Emerald Lake Area.
<br />As I have stated in my previous reports on the Emerald LLa}e yajer
<br />problems, such
<br />major improvements can only be accomplished by some metho 0 ong
<br />term financing,
<br />ri
<br />
|