TS Eureka rejects water, sewer rate hikes

After several meetings and public outcry, the Eureka City Council voted unanimously to hold off on raising water and sewer rates and establish a citizen task force to help create new rates.

Although not enough protest letters were sent in to legally stop the hike, council members agreed that the rates were too high for people to handle at this time, the notification process was too confusing and senior citizens shouldn't be hit with such high rates.

If it had been approved, the rates would have increased by 66 percent for water and 87 percent for sewer in the next five years. The rates also included a method for calculating rates, which included Proposition 218 guidelines...

Council Member Barth attended and gave an overview of the agencies in charge of our drinking water. Mayor Dalager never responded to our requests to speak.

Barth told the ETA:

The SDWD gets around a third of its water from local sources (Lake Hodges).

Barth explained that there were many reasons the SDWD would require greater expenditures. Earthquake retrofitting of infrastructure, a spike in needed maintenance, and increased charges from government agencies that sell us imported water.

Tangentially, Barth suggested that the SDWD might dramatically increase its water self-sufficiency by pumping reclaimed water back to Hodges.

Barth also weighed in on the governance structure of the San Dieguito Water District. Currently, the City Council serves as the SDWD Directors. Because the City and the SDWD often enter into agreements and the council represents both sides, she wants the SDWD governing board to have representatives that are independent from the Council. She suspects the Council might agree to adding two independently elected directors.

The City cannot raise taxes without a vote of the people. The SDWD can raise rates with a vote of City Council Members.

The San Dieguito Water District (SDWD) sent out notices last week indicating that "...an average single family household will see an increase of approximately $9.88 per month (19.9%)..." The notice points out that ratepayers can reduce their bills by reducing consumption.

The North County Times reported:

The San Diego Water Authority is raising their rates on the water retailers.

"However, the local district's treatment plant, which it jointly owns with Santa Fe Irrigation District, now needs some substantial repairs, Watts said, adding that those costs would be reflected in the water bills." The repairs are deferred maintenance and earthquake retrofiring.

Mark Osterkamp, a third-generation farmer, grows wheat and other crops near Brawley, in Imperial County. Osterkamp and many other desert-area farmers are paid to leave some of their land idle so water can be diverted to cities such as San Diego. Read the Press Enterprise article

Part of the cost being transmitted to the SDWD customers are payments to Imperial Valley farmers. A few years ago, the San Diego Water Authority made a deal with regional farmers. From the UT: As part of the pact, the Imperial Irrigation District is idling land and selling a portion of its unused supply to the San Diego County Water Authority. The deal reduces the region's local food production capacity. There was little, if any real opportunity for the Encinitas public to weigh in on the deal. Indeed, few in Encinitas realize that it happened.

The SDWD is a member of the San Diego Water Authority. The SDWD is run by the Encinitas City Council. The council rarely takes a position on regional water policy.

The UT recently ran a story on the rights of ratepayers to oppose water rate increases. Water customers can block increases by filing written protests. Prop 218 ensures this right and water districts are suppose to inform their customers of these rights.

(Note, SDWD is run by the city)

During the last SDWD rate increase that I worked on, the City Council failed to ensure the public was aware of their rights to protest. I brought this to the attention of the council. The City Council did not care that they were in violation of Prop 218.

The NCT wrote that Councilmember Jim Bond said, "We're extraordinarily careful to make sure we comply (with Prop. 218)."

Before Teresa Barth was elected, this was a common sort of response by the council.

After public speakers make their presentations the council can make outrageous retorts, which sound good to uniformed viewers, without being challenged. The public does not get to respond, but council members can. Barth is known for doing her homework and being prepared for council discussions. Barth lifts the rug when other council members sweep things under. There has been less sweeping lately.

I don't think Jim Bond would have gotten away with saying they are "extraordinarily careful" to comply and then ignore the serious noncompliance if Barth had been on the council at that time.

On September 25 the Encinitas City Council, acting as the San Dieguito Water District, voted (5-0) to authorize Dan Dalager to send a letter of opposition to the MWD. The council was against granting the MWD staff substantial pension benefit increases.

The Council spoke only briefly about their opposition. They did not offer recommendations to the MWD on how to proceed. The council did not speak about the lack of parity between their recommendations for the MWD and their approval of pension increases for city workers just a few years ago.

From the NCT (March 20, 2005):

Retirement pensions at City Hall, for everyone from clerks to supervisors to computer technicians, will be vastly improved after a City Council action last week.

The council Wednesday approved what appears to be a modest adjustment to the formula used to compute yearly pensions for workers who retire at age 55 or thereafter.

The increase, however, translates into a 35-percent bump in annual pensions that city employees can collect from the California Public Employee Retirement System.

The Encinitas Taxpayers Association's President addressed the council before their vote on the MWD letter. He suggested the council consider changing the retirement benefits to a defined contribution system. Defined contribution systems are pay-as-you go.

There are disparities in sewer service charges across the City of Encinitas. The average ratepayer in Encinitas (ESD) and Cardiff Sanitation Districts (CSD) pays over twice what Leucadia Water District (LWD) ratepayers shell out. The maximum charge is the same as the average charge in Leucadia because they have a flat fee structure. Encinitas and Cardiff's charges are based on winter water usage.

The disparity can partially be explained by differences in decisions about how and when to achieve secondary sewage treatment. Those decisions, made decades ago, resulted in different financing routes and associated long term financial consequences.

Both ESD and CSD are now run by the Encinitas City Council. LWD remains an independent district with elected board members.

Click here to see a blown up map of the districts.