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The third time really was the charm for the CCSD when it comes to an increase in the rates for water and wastewater. In just one afternoon, the District held the public hearing and then counted the letters of protest and support sent in or turned today. Five of us helped the count by opening envelopes and stapling the protest (or support) to the envelope for the consultant to count.

I won’t keep you in suspense – there were 401 letters of protest against the water rate increase and 405 against the wastewater increase. To stop the increase, the district would have to receive at least  1964  protests against water and 1909 against the sewer increase. With no organized effort against the increase, it was quickly obvious that the protest would not succeed. Several of those who spoke during the hearing made it clear they are still unhappy with the way the district is spending our money. No one spoke in favor of the increase, other than acknowledging the proposed budget needed an increase to keep from going into the red.

What’s it all mean? On your September bill, you’ll see an increase in your CCSD bill. WATER: 9.75% – Effective July 1, 2009 (Bill mailed September 10, 2009)  SEWER: 15% – Effective July 1, 2009 (Bill mailed September 10, 2009)  Below is the rates schedule included with the letter explaining the increase.

Old  Rate:                               New  Rates: Effective 7/1/09____(For 12 units)

Water Base $ 21.70                    Water Base $ 23.82

Water Units $ 33.06                  Water Units $ 36.30

Sewer Base $ 56.55                     Sewer Base $ 65.03

Sewer Units $ 18.59                     Sewer Units $ 21.34

TOTAL $ 129.90                              TOTAL $ 146.49

Next up? An increase to cover the capital improvement projects proposed. Stay tuned.

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Yesterday there was a Special Meeting of the CCSD Board of Directors. On the agenda: election of officers and  consideration of rescinding the recently imposed rate increase. For 2009, Greg Sanders will serve as board president and Peter Chaldecott will be vice-president.

I won’t keep you in suspense – you probably already know that the Board passed resolution 01-2009 which rescinded the higher rates. Those rates kicked in last September and one billing cycle has passed the payment deadline (which means you paid it, I hope.) Bills for the November-December billing period will be sent out tomorrow. In that bill will also be an explanation of how to read that bill, since the CCSD has determined it will not refund cash, but instead credit your utility account with the overpaid amount. General Manager Tammy Rudock explained that there are about a hundred accounts of tenants who have moved out or where the account holder no longer has an active account. Those folks will be issues checks in the amount of their overpayment, unless that amount is less than $5. This method of returning the money was chosen because it is less time intensive and less expensive than actually refunding money.

So what next? Well, the understanding that the water and sewer rates must go up is nearly universal. And Jerry McKinnon asked a very critical question following the Board’s discussion on the matter. “Why not keep the money already collected – since its needed?”   The response from President Sanders and Director Clift centered on the very real threat of litigation by the Howard Jarvis Taxpayers Association.  If a lawsuit was brought against the district, we could end up with several hundred thousand dollars in lawyers fees and even if the District was found to be in the right, it would mean no additional monies or increases for the 2 or 3 year life of the suit. And although we would pay more for water, any amount over the “current” rates would likely be required to be deposited in an escrow account as a contingency plan – because if the District did not prevail, it would be obligated to refund that money.

I was glad that the Board spoke to the real reason behind their action: the threat of litigation. Fighting against the impending lawsuit would have just exacerbated the problem – what with attorney fees and all the lost billing cycles when the increase could’ve padded the accounts. That rescission was the right thing to do should have played a larger role, but then we may not have had this situation in the first place.

Just before the Board voted on passage of the resolution, Director Chaldecott explained he would be abstaining from this vote. His reason was that he had been a member of the board that had passed the increase. By abstaining, he took a very important first step in building the bridges of trust.  Although he didn’t want to vote yes on the resolution, he clearly wasn’t comfortable voting no. I hope this trend will continue we go forward.

Speaking of going forward: the Board (through its committees) will be looking into budget items (like conferences) and addressing the priorities for Capital Improvements projects and the committees will report back at the next Board meeting. More on this “new” method of doing things  tomorrow.

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This just in: a CCSD agenda for a January 8, 2009 meeting. Only item of business: Public Hearing to Adopt Resolution 01-2009 Rescinding Water and Sewer Rate Adjustment for Fiscal Years 2008/2009 and 2009/2010. Thank you, President Sanders.  I will be at the meeting – scheduled for Thursday January 8, 2009 at 12:30pm at the Vets Hall.

Full agenda is below.

I. OPENING
A. Call to Order
B. Pledge of Allegiance
C. Establishment of Quorum
D. Election of Officers
II. SPECIAL MEETING HEARING
A. Public Hearing to Adopt Resolution 01-2009 Rescinding Water and Sewer Rate
Adjustment for Fiscal Years 2008/2009 and 2009/2010
ROLL CALL VOTE
III. PUBLIC COMMENT
IV. ADJOURN

What is missing from the CCSD’s agenda for Monday?  Discussion of and action on the rate increase. From the General Manager’s point of view, it makes sense. The issue has been decided, the protest failed. Anyone still carrying on about it is just a sore loser out for revenge.

In a viewpoint buried deep on page 19 of this week’s Cambrian, Mary Webb lays bare some of the reasons why this issue isn’t going away quietly:

  • the lack of clear procedures for the 218 process,
  • the protest numbers being quietly revised in September,
  • the fact that the district did not have the authority to invalidate protests based on signatures,
  • the notarized statements from disenfranchised voters delivered to the CCSD in September.

Any or all of these factors would change the outcome. For me, it hasn’t been about the extra money tacked onto my bill each month – its the flagrant  disrespect for the democratic system and the law that offends me. I had hope that without litigation the Board would do the right thing and toss the whole thing and start fresh with a new proposal. One that only includes a 10-15% increase. One that has a written process for counting.  There was so much confusion during the last rates debacle that only ONE number out of all the CERTIFIED totals was even correct. It’s a perfect excuse for a “do-over.” Many of the people I have spoken to about the protests of this summer and last fall understand an increase is indeed needed. Nearly all of them would not protest this charmed proposal. The CCSD would have its  increased revenue, Cambrians would really feel they’d been heard and the state Constitution would remain intact.

In November, Cambrians spoke loud and clear in choosing new directors – DeMicco and MacKinnon both campaigned on more transparency and a need to communicate with the community and build trust. But that will have to wait until at least next month. Why?

The new board will not be able to take any action on the rates (or the loan) because it is not on the agenda. State laws protecting citizen’s rights to attend and comment at public meetings requires that any decisions that will be made by an elected board be published at least 3 days in advance of the meeting – so people can attend and be somewhat prepared to comment intelligently (or at least more informed than they might otherwise be.)

At its most useful, government is essentially a mechanism by which neighbors can pool their resources to develop infrastructure, like roads and sewer and water systems, and to provide services, like fire protection, that would otherwise be impractical for us each to provide ourselves. Our elected leaders must expertly pilot the ship toward the community’s vision for the future. What our elected leaders must do is balance the needs, wishes and realities of financial limitations to give us the best services and facilities we can afford….as a community. Sometimes the choices are difficult or unpopular, which is why it’s crucial that leaders can be trusted to act in the best interests of the community.

They are expected to plan for the long term well-being of the community while overseeing the district manager’s job of dealing with difficulties on a daily basis. The added pressures of limited water, no direct control of land use and a well-educated, strong-willed public can (and do) exhaust everyone involved. So nap this weekend and come give one more dollop of energy to the CCSD meeting Monday  (December 15). Then it’ll be about 6 and a half weeks until the CCSD meets again. Come greet the new Board members. Be heard.

I leave off with this precise thought:

“To some degree it matters who’s in office, but it matters more how much pressure they’re under from the public.” – Noam Chomksy

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Last fall, a movement developed to stop the first rate and Cambrians for a Fiscally Responsible CCSD began studying the finances of the District. Part of that first increase proposal was a plan to pay for part of the buildout reduction program by tacking a fee onto the water bills. The problem is that the State Constitution says “Revenues derived from the fee or charge shall not exceed the amount required to provide the property related service.” And “Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.” (Article 13D)

The second time around, the CCSD proudly advertised (in a full page Cambrian ad on page 2) that there was no BRP fee included. Which was a good thing, since it would be illegal. During meetings and workshops last spring, the Board told us the BRP would not be paid for out of rates.

It was brought to my attention by Jerry McKinnon that the expenditure report for September included a payment to RBF Consulting for $5,000 that tagged “WD/Professional Services-BRP Study 7/1-7/31/08″ (CCSD Expenditure Report for Month ending September 30, 2008). Unless money in the water department funds arrived there from a source other than the rates revenues, this would seem to indicate the BRP is being funded from our rates.

Further investigation revealed that since March 2008, CCSD has paid  RBF Consulting for professional services related to the BRP at least  $25,840.00 and at least another $12,000.00 going back to March 2007. Every one of these was charged to the water department and so paid for with rates revenue.

I will be asking the CCSD about this at their next meeting (which is scheduled for Monday November 17 12:30pm) and via email to the GM and directors. Perhaps I will get an answer. Stay tuned here for more….

In a surprising announcement at Thursday’s CCSD meeting, the General Manager and District Counsel told the Board and community that the count had been incorrect. In an audit of the protests spurred by a public records request, the total number of protest letters was changes from 2498 to 2517.

In a press release, available on the CCSD website, the new “official” numbers were apparently shown to the League of Women Voters who “verified the revised certification”:

Per CCSD Customer Service Account
Valid Protests Received: 1,982
Majority Protests Required: 2,001 (3,999 ÷ 2) plus 1
Per CCSD Service Parcel
Valid Protests Received: 1,952
Majority Protests Required: 1,966 (3,929 ÷ 2) plus 1

After announcing with such certainty that the numbers were absolutely correct and the League of Women Voters certified the count was correct – turns out the count was incorrect.

All this raises more questions than it resolves. If the count of letters was incorrect, how can we know the number of protests required is correct? This is another example of a mistake that magnifies the incompetence of the staff and brings into question the value of having the League certify the count.

I hope the members of the Board don’t simply dismiss this error, as they have many other incidents, and chalk it up to a mistake anyone could make and therefore let it go. This behavior borders completely unacceptable for elected officials and public servants.

I cannot speak for the CFR, but most individuals I’ve talked to understand a rate increase is needed – the objection is to the process used and the utterly dismissive and disrespectful treatment of community members who are asking for accountability and explanation. No one should have to blindly accept a hit to their monthly budget without adequate justification and some measure of accountability.

What I wrote earlier this week is even more true with this new information: It is not about the few dollars every other month, its about an irresponsible, unresponsive public agency and elected officials that see the law as an obstacle, rather than best practices limits on their authority.

Last Thursday’s CCSD meeting had a larger than usual crowd of Cambrians, most of whom came to speak and view the outcome of the Rate Protest tabulations – though that was not the only item on the agenda that will affect us all in the next several years. Board President Joan Cobin rearranged the agenda to move the Rates issue to about fifteen minutes into the meeting, instead of after the staff reports, committee reports and consent agenda, as in the published agenda. I applaud her desire to “get right to business”, though the representatives from the League of Women Voters (Sara Horn and President Ann Garfinkel) missed at least half of the report from by General Manager Tammy Rudock on the counting. Ms. Horn and Ms. Garfinkel were only at the meeting very briefly, leaving before the public comments and before the Board officially accepted the League’s report. Watch their report by clicking here:

I also missed the start of item VIII A, having planned my arrival based on the original schedule. Fortunately, the Board meetings are recorded, so I was able to catch up on what I missed later – and Cambrians who had come pretty much only for this item seemed appreciative that it was given priority and moved to the start of the meeting.

Excerpts of that part of the meeting will soon be available at Google video and audio is, as always, available at Slo-span.org. I encourage anyone who couldn’t get to the meeting to watch the conversation and deliberation of the Board that followed the public comments and lead to the unanimous approval of a resolution to raise the rates 12% and revisit the issue next year to determine if an additional 14% is really needed.

The bottom line, as Kathe Tanner notes in the week’s Cambrian, is that the Water and Wastewater enterprise funds will have more money in them to keep the system running and the effect on our pocketbooks won’t be as severe as initially proposed. The Board also directed that staff shouldn’t use any staff time to pursue a loan of any size until getting further direction from the Board.

I applaud the entire Board for the time they all clearly put into considering how to move forward. No matter what the actual number of accounts or valid protest letters, there was a clear and strong message from half of the community, and a pretty loud silence from the other half. Muril Clift’s measured approach showed he had spoken to his constituents and had the best interests of the community and the CCSD at heart when he came up with an alternative most in the community find reasonable.

More excerpts will be available in the next couple of days. Watch some of the public comments made on this item and Art Montandon’s responses to questions raised by Cambrians in their comments.

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The Rates Committee of Cambrians for a Fiscally Responsible CCSD will meet tomorrow at Moonstone Beach Bar and Grill at 9:30, instead of the usual time – with tourist season in high gear we need to finish the meeting and be on our way before the restaurant opens and starts seating people. As always, the Rates Committee meeting welcomes anyone interested in attending – no special password needed.

Thank you, once again to the MacKinnons for providing such a comfortable place (and what a view!) for our meetings. You should check out their stylish new website. Looking good!

Don’t forget:

The north end of Moonstone Beach Drive is now closed to through traffic because construction has begun on the replacement of the Leffingwell Bridge.