III. Public Participation Hearing

A Public Participation Hearing (PPH) was held on May 5, 2003 in Fontana. Several speakers offered comments. All opposed the proposed rate increase as creating an excessive burden on residential customers, particularly those on fixed incomes. In addition to opposing the proposed rate increase, these speakers also emphasized the importance of taking action against the parties responsible for contaminating Fontana Division's ground water sources. The Commission also received 175 letters from customers. All opposed the proposed rate increase as being excessive, particularly given the current economic situation.

Mark Nuaimi, the Mayor of Fontana, spoke about the impact of San Gabriel's proposed rate increase on the City's budget for providing services. He believes that San Gabriel should be looking for alternative funding sources rather than expecting ratepayers to pay for the cleanup due to percholorate contamination of the groundwater sources. He suggested that San Gabriel impose connection fees on developers to pay for needed facilities. He criticized San Gabriel's standby fee on residential fire sprinklers as being excessive compared with adjacent water districts. He believes that San Gabriel is not interested in promoting the use of recycled water to reduce the cost of service on all ratepayers because San Gabriel prefers to increase its investment in plant to generate high returns.

City criticizes San Gabriel for not working with city officials on matters of common interest. City says that San Gabriel made no effort to give advance warning to city officials of the proposed 77% increase in rates through 2006. According to City, the Mayor offered to pursue an interest-free loan from City to San Gabriel to address its expressed needs for water treatment plant, but San Gabriel's response was - no response. City states that it has 10,000 acre-feet per year of un-reclaimed water going to waste, but San Gabriel has no interest in a project to utilize this water.

School District points out that Fontana Division rates are already the highest in the area and San Gabriel's proposed increase will cause School District severe budgetary problems. School District argues that Fontana Division has sufficient capacity to handle the current drought situation, that San Gabriel is using the drought to justify unneeded capital projects for the sole purpose of increasing profits, and is proposing an unwarranted luxury of a new office building at a time when the State is in an economic slump.