The San Francisco call., 1910-12-13
Water RATES NOT
TO BE INCREASED
Citizens of Oakland Save Near
Iy SI,0O0,000 in Four Years
by agreement
Consulting Engineer j. H. Dock
weller Files Report With
City Council

OAKLAND. Dec. Ia H. Dock
weller. consulting engineer for this
City in water rate matters. filed with
the city council this evening an official
report showing that through reduc.
tions Of rates by agreement with the
Peoples water company, there ha:
been effected a saving TO the consum-
ers and tax PAYERS of Oakland, which
win reach a total Of S902 600 by June
sa. I9ll That date win close the
fourth year in which the reductions oi
rates have been effective, the period
having begun July i. 1907.
The most important feature Of these
agreements, as Docbweiler explains
in his statement, lies in a stipulation
given by the Peoples water company
that there shall be no increase Of water
rates after June 80, 1911, when the
council must fix new rates.
In his report DOckweiler relates the
history Of the water rate negotiations
briefly, for the purpose Of emphasizing
the value Of the agreement 10 the cIi-
zens. He points out that when the
Contra Costa water company sold out
airy I, 1907, the corporation was then
collecting under rates established reg
ularly in 1903. The Contra Costa COM
pany had by Injunction set aside the
rates fixed for 1904, 1905 and 1906.
Councilman b. H Pendleton, presi-
dent OF the body now, but then chair
man of the auditing and finance COM
mittee, undertook negotiations with
the Peoples water company. In con-
which the rates for 1907 were reduced
10 per cent below the rates for 1906.
Reductions also were made in the fat
rates for hydrants, and a cut of 20
per cent was made in the municipal
water rate. The 10 per cent reduc-
tion applied TO private consumers. For
1908 the company agreed TO a further
reduction of per cent
PendletOn procured a written agree
ment from the company again in 1908.
by which the rates of that year were
again reduced 10 per cent with 25
cent cut in the hydrant rate. The
same agreement provided for , per
cent reduction again for the year 1909.
with an additional 5 per cent reduction
TO follow in the 1910 rates. Ordinances
fixing rates for the various years COW
cred were according to the terms Of
these agreements.
Having thus made clear the rea-
sons for the rate reductions, DOckweil-
er continues in his statement:
"As the result Of the water rates
thus established for the last four years,
during a period Of three and a third
years, which have elapsed TO date, that
is. from July l. 1907, to November 1,
1910. there has been saved to the con-
sumers residing within the city Of oak
land. and 10 the municipality Of Oak
land. total of s659,055.S1, made up
as follows.
city Of Oakland ..........-..--..... ll7.251.S6
Total ........................... .sc59 o55. 81
ON other words. had the Peoples
water company collected the rates
since July ]. 1907, which it collected
during the year previous to that date
it would have collected 1853, ,055.Sl more
than it did collect from the inhabitants
of Oakland. represented by consumers
and tax payers.
III is to be noted that the s117,-
25l.36 saved by the municipality of
Oakland is that amount saved in
taxes. as the municipal water rates are
paid from taxes.
IN the Pendleton agreement. herein
before referred TO, which was filed with
the city council April >, 1908, appears
the following;
1t is further agreed that the Peo-
pies water company from and after
June 80. 1911, viii not claim or charge
any higher rates than those determined
as above for the year ending June 30,
1911.
1T viii thus be seen that the pres
ent water rates are the maximum and
that the savings for each year viii
become larger and larger as the num-
ber Of consumers increases. as COM
pared with the rate collected in 1906
The first four months Of the present
fiscal year show a saving Of s121,-
S19.56. which viii amount to about
1855. 600 for the entire YEAR, Stated in
other words. the water company dur
collected 1855. 600 more from the city
OF Oakland and consumers residing
therein had the rate OF 1906 prevailed.
The gross savings OF the four years
VIII approximate S902. 600"
Dockweiler's report contains a
graphic chart showing the savings in
rates by years as follows
1907, s1O0.71S.66; 1908. S1S6.3IS.SS:
1909, S2sS.l3S.71; 1910. first four
months. Sl21.S79 1910. estimate for
entire year S365.O0O. Cumulative total
TO November ]. 1910 s659,055.8l; for
four years, July !. 1907. to June 30
1911. about 1902, 600
Thus" concludes the consulting en-
Eineer. during a period OF four years
without litigation, water rates have
been gradually reduced by your hon
orable body so that the rates prevail
ing in 1910 are lower for the munich
pality than those established in 1904
while the rates 10 the private con-
sumer are within a few cents as low
as those established by the 1904 rates. "