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Conejo Recreation & Park District GENERAL MANAGER BOARD OF DIRECTORS Jim Friedl George M. Lange, Chair Susan L. dolt, Vioe Chair Joe Gibson, Director Ed Jones, Director Chuck Huffer, Director GENERAL MANAGER EMERITUS Tex Ward DATE: February 2, 2017 TO: Board of Directors FROM: Jim Friedl, General Manag SUBJECT: California -American Wa pany Proposed Rate Increase _ Participate with City of Thousand Oaks in Pending Rate Case A1607002 in amount not to exceed $25,000 RECOMMENDATION Authorize General Manager to enter into Agreement with City of Thousand Oaks to participate in California American Water Rate Case A1607002 in an amount not to exceed $25,000. DISCUSSION On January 24, 2017, the City of Thousand Oaks ratified the City Attorney's agreement with the law firm Downey Brand, LLP in an amount to exceed $100,000 for legal services pertaining to California American Water Rate Case A1607002. (See attached City of Thousand Oaks Staff Report dated 1124117). The City has been granted "Party" status to this rate case and is prepared to vigorously scrutinize the justifications for the rate case and protect the interests of the rate payers in the City Thousand Oaks - - - including residents, businesses and public agencies. Water is CRPD's second largest operating expense. In Fiscal Year 2015116, CRPD spent $623,834 on water in the California American Water Company service area which represents about one-half of the District's total water expense. Therefore, it is in the District's interest to ensure rate increases are reasonable and justified. An option included in this rate case combines several different California -American Water Company districts into one geographically larger district covering Ventura, LA and San Diego counties. It appears the effect of consolidation helps to pay for water infrastructure and service in communities vastly different and geographically disconnected from our own resulting in significant increased water rates in the City of Thousand Oaks. In order to protect against unreasonable water rate increases, staff recommends the District financially support and participate with the City in the cost of this Rate Case. STRATEGIC PLAN COMPLIANCE Meets 2016 Strategic Plan Element 4.0 Partnerships Collaborate with other entities in order to fulfill the District's mission. ADMINISTRATIVE OFFICES 403 West Hillcrest Drive • Thousand Oaks, CA 91360-4223 (805) 495-6471 • FAX: (805) 497-3199 - Email: parks@crpd.org • Website: www.crpd.org