Late Addition to the Agenda

On February 17, 2010, Administrative Law Judge Weatherford issued a ruling directing the Division of Water and Audits to prepare a report to evaluate the reasonableness of rates and adequacy of service of Sunbird Mobilehome Park. That report was filed on May 3, 2010. On April 28 and 29, 2010, Commission staff attended legislative hearings at which residents of Sunbird spoke and raised concerns over evictions for non-payment of water bills. The agenda for the May 6, 2010 Commission meeting was published on April 26, 2010. In order to ensure that no steps to evict or disconnect water service are taken against water customers whose bills may be adjusted based on the outcome of this complaint, the Commission should take immediate action.

This item was added to the agenda on less than 10 days notice by a
two-thirds vote of the Commission under the provisions of Government Code Section 11125.3(a)(2). This code section allows an item to be added to the agenda when two thirds of the members agree that there exists a need to take immediate action that came to the attention of the state body after the agenda was already published.

Waiver of Comment Period

This is an order adopting injunctive relief. Accordingly, pursuant to Section 311(g)(2) of the Public Utilities Code and Rule 14.6(c)(1) of the Commission's Rules of Practice and Procedure, the otherwise applicable 30-day period for public review and comment is waived.

Assignment of Proceeding

Dian M. Grueneich is the assigned Commissioner and Gary Weatherford is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Sunbird, a mobile home park located in Thermal, California, modified its water rates in June 2006 to increase rates substantially for water usage above the Tier 2 usage limit.

2. Sunbird charges $20.00 per ccf for monthly water consumption in Tier 3 (between 12 ccf and 16 ccf).

3. Sunbird charges $40 per ccf for monthly water consumption in Tier 4
(in excess of 16 ccf).

4. The neighboring water supplier, the Coachella Valley Water District, has only one tier in its water rate design.

5. Water consumption at Tier 3 and, particularly, Tier 4 levels can result in very high bills, for example, monthly consumption of 20 ccf results in a water bill of $275.26.

6. The Commission has not previously reviewed the reasonableness of the water rates charged by Sunbird.

7. Residents of Sunbird testified at the Assembly Budget Subcommittee No. 3, Natural Resources and Environmental Protection, on April 28, 2010 and at the Senate Budget and Fiscal Review, Subcommittee No. 2, on April 29, 2010, and stated that there were instances where residents were evicted from Sunbird because of their inability to pay water charges.

8. Water Division filed its staff report on May 3, 2010.

Conclusions of Law

1. Sunbird is subject to Commission jurisdiction under Pub. Util. Code
§ 2507.6.

2. In order to ensure that no steps to evict or disconnect water service are taken against water customers whose bills may be adjusted based on the outcome of this complaint, the Commission should take immediate action.

3. An injunction against evictions and disconnection of water service for
non-payment of the tenant's water bill should be issued in aid of our jurisdiction over Sunbird's water rates. 

4. Because the current upper tier rates may be excessive given the staff recommendation, the Commission should take immediate action to order Sunbird to stop billing for current Tier 3 and Tier 4 water usage at its current
Tier 3 and Tier 4 rates and to instead charge for all water usage above the current Tier 2 usage level at current Tier 2 rates, pending the resolution of this complaint.

5. Sunbird should maintain records of all water usage above the current
Tier 2 usage limit for which Tier 2 rates are charged pursuant to this decision, the resulting revenues for that excess usage at Tier 2 rates, and the charges that would have been billed if current Tier 3 and Tier 4 levels had remained in effect.

6. The need to take immediate action exists and came to the attention of the Commission after the agenda for the May 6, 2010 Commission meeting was already published.

ORDER

IT IS ORDERED that:

1. During the pendency of Case 09-11-019, Sunbird Mobilehome Park must charge its water customers whose usage exceeds current Tier 2 consumption levels the current Tier 2 rate for that usage in excess of current Tier 2 volumes.

2. Sunbird Mobilehome Park must notify its water customers within 5 days of this decision that it will charge the current Tier 2 rates for consumption above Tier 2 volumes until Case 09-11-019 is resolved, but that service already rendered may be rebilled after the Commission determines the reasonableness of the billed rates in this proceeding.

3. Sunbird Mobilehome Park may not use non-payment of water charges as the basis for eviction or disconnection of water service, pending the outcome of Case 09-11-019.

4. To determine if a water customer is in arrears in the payment of charges, Sunbird Mobilehome Park shall recalculate any charges previously paid for water usage in Tier 3 and Tier 4 as if the current Tier 2 rate were in effect for that usage, and any payments in excess of that recalculated charge shall be considered to have been paid, first, for any non-water charges owed to Sunbird Mobilehome Park.

5. Sunbird Mobilehome Park shall maintain records of all water usage above the current Tier 2 usage limit for which Tier 2 rates are charged pursuant to this decision, the resulting revenues for that excess usage at Tier 2 rates, and the charges that would have been billed if current Tier 3 and Tier 4 rates had remained in effect.

This order is effective today.

Dated May 6, 2010, at San Francisco, California.

Previous PageTop Of PageGo To First Page