Water Rate Study Ad Hoc Committee Meeting Canceled

The Water Rate Study Ad Hoc Committee meeting has been canceled with no reason given.

The meeting was scheduled for this Wednesday but City manager Joe Felz canceled the meeting.  No reason was given.

The meeting would have been held to review the City Manager's list of "costs" associated with operating the City's Water Department and determine how much should be billed to the Water Fund.

Meanwhile, Fullerton Water Department customers are still being overcharged 10% on their water bills.  

Water Tax Repealed, Rate Decrease Anticipated

The City Council voted 5-0 to do the right thing: Rescind the 1970 City Council Resolution that granted an automatic transfer of 10% of gross water sales to the General Fund.  The money was then used to cover General Fund obligations, 80% of which is for salaries, benefits, and pensions.

The end of the water tax does not mean the automatic reduction of 10% of ratepayers water bills.

That will be explored by the Water Rate Ad Hoc Committee in the coming weeks.

For now, though, let's savor the moment.

One year ago I said that ending the water tax would allow for ratepayers' money to go where they had intended it to be spent, the water system.  "Oh no.  That would mean a $2.5 million cut to the General Fund" said the tax's supporters.  "We can't have that!"

The fact is, that money was not supposed to be going into the General Fund and reliance on those funds demonstrates a clear disregard of fiduciary responsibilities by our city officials.

The money was earmarked for water purposes and any other use is a clear misappropriation of public funds.  Suddenly with the water tax gone, the Water Fund has all the money necessary to begin replacing 4 to 6 miles of pipe per year instead of 1 mile per year.  This is a leap in the right direction.  However, there is much more work ahead.

You can expect another tax and spend plan to come forward to try to make up the $2.5 million annual cut in illegal funding.

Keep a wary eye out for gimmicks, games, and gambling with your money by city officials and vote June 5 to recall Bankhead, Jones, and McKinley.

Please join me...

...for a neighborhood meeting to discuss where your water bill is going.

April 1, 3:00-4:00 PM 

356 Del Cerro, Fullerton

(The Medici Residence)

Where is the money going, how do we stop it, and can we get it back?

I have a plan but I need your help!

Find out this Sunday

MARK YOUR CALENDAR - More meetings...

The Citizens Infrastructure Review Committee (CIRC) is scheduled to meet on Wednesday, April 4, at 6pm in the City Council Conference Room.  This is a PUBLIC meeting and PUBLIC COMMENTS are encouraged.

What does the CIRC do?  As the name implies, the committee reviews the City's infrastructure program also known as the Capital Improvement Program.  We look at prioritizing projects, funding sources, and act as the ears for the City Council.  The committee serves as an advisory body and has no authority to do anything accept approve previous meeting minutes and make recommendations to the City Council.

The Water Rate Study Ad Hoc Committee is scheduled to meet on Monday, April 9, at 6pm in the Main Branch Library.   This is a PUBLIC meeting and PUBLIC COMMENTS are encouraged.  

The Ad Hoc was formed to vet the initial water rate study which was conducted in 2010 and reviewed by the committee in 2011.  As part of the study, the committee asked questions about the in-lieu franchise fee ($2.7-million water tax).

The Ad Hoc is made up of two committees, CIRC and the Energy and Resource Management Committee (E&RC), as well as 5 community members.  Many of the CIRC and E&RC members have chosen not to participate for personal reasons such as scheduling and the depth of commitment necessary.

MARK YOUR CALENDAR - Water Rate Ad Hoc Meeting April 9th at 6PM, City Yard

Where is your money going?

The next Water Rate Study Ad Hoc Committee meeting is scheduled for Monday, April 9th at 6PM at the City Yard (Basque & Commonwealth).

Please attend this important meeting and speak up.  If you have ever wondered why Fullerton was in this mess it is because too often we all sit back and expect someone else to do all of the work.  Please do your part and engage in the discussion.

Do you think using your water rates to pay for "rent" of city-owned property is a bad idea?  Do you want a refund of the money you were over charged?  Do you want the City to actually use ALL of the money they collect from water sales do be spent on the Water System?  Are you upset that the Water System has been neglected?  Are you fearful the City will try other tricks and accounting gimmicks to take more of your money and provide fewer services?

Please mark your calendar and bring your neighbors.  Fullerton is YOUR city.  

Water Rate Study Ad Hoc Committee Update

The new conference center at the Main Branch Library was full of City Council candidates.  Also in the back row was Councilman Don Bankhead, who I am running to replace should voters recall him on June 5.  

Thank you to everyone who took time out of their lives to join me at the meeting.  The discussion was lively and comments were appreciated.

There seems to be two camps brewing, though it may still be too early to know.  One position is that any rent-back of City-owned property to the City is illogical and amounts to a double tax.  The other position is that some rent-back is justified.  

I'm of the opinion that we (taxpayers and ratepayers) have already paid for these facilities and that renting them back to the City is wrong and amounts to a double tax.  

With so much material to review and interesting comments by all, no action was taken by the committee.  The transfer study will be further discussed in a couple of weeks along with possible recommendations to the City Council on what to do with the surplus cash from overcharges to ratepayers.

Also, I asked that we place on the agenda discussion and, possibly, a vote on recommending that the City completely forgo any transfers to the General Fund until an audit of the fund is complete.   Speaking of audits, the transfer study was not an audit by any stretch of the imagination.  Therefore, an audit of the General Fund is necessary. 

Stay tuned for more information in coming days...

Water Rate Hike Hearing...Will you be heard?

Tonight the Fullerton City Council will take up, among many issues, water rate hikes.

I oppose the so-called "pass-through" rate increase for a few reasons.

First, the pass-through is supposed to pass along rate increases imposed on Fullerton by the Metropolitan Water District (MWD) and the Orange County Water District (OCWD).  Fullerton passes the increase to YOU 6 MONTHS BEFORE MWD or OCWD actually increase their rates.  If it isn't illegal, it should be.  At the very least, it is unethical.

Second, the MWD is neck deep in a law suit by the San Diego County Water Authority which is alleging that MWD staff together with some of the staff of MWD's member agencies (like Fullerton) have created a "Secret Society" that meets behind closed doors to develop policies and manipulate water rate increases.  

Third, the MWD is raising their rates to help cover $6,000 bonuses for ALL employees, raises that will amount to nearly 6%, and two new pay grades.  And for those who will think I'm picking on the poor defenseless public employee, let me remind you that all public employees work for ratepayers/taxpayers.  These bonuses and raises are being pushed onto water consumers without their input or approval.  The increases are coming in the midst of the worst economic disaster since the Great Depression.

Water is not like any other commodity.  We have no choice which water agency hooks up to our water meters.  It is of the greatest importance that those services which have monopolies over taxpayers are regulated sufficiently to ensure that they are free of corruption and malfeasance.  Taxpayers must be assured that they are receiving the highest level of service at a reasonable and sustainable rate.

Please attend the City Council meeting at 6:30PM at City Hall.  

Are Fullerton's Water Rates and the Proposed Rate Hikes Justified

Tonight is the Fullerton Water Rate Study Ad Hoc Committee meeting at the Main Branch Library at 6pm.

As a member of this committee, I would like to hear your thoughts and concerns on all things water related.

With a massive MWD scandal brewing that implicates Fullerton in even more corruption and with the recent revelation that Fullerton water ratepayers were over charged, I think it is important to hear what you, the ratepayers and voters, have to say.

Tomorrow, the Fullerton City Council will take up a water rate hike.  You have a say in the rate increase but you need to come and speak to the Council.

FULLERTON IS YOUR CITY.

Results from Study of 10% Water Tax Released

The City of Fullerton has released the findings of a study that looked at transfers of funds from the Water Fund to the General Fund.  In simple terms, this is the City's justification for skimming water revenue and using it for non-water related activities.

The study focused on the last three (3) years because legal counsel identified a three-year window of liability.

Here is the City's internal memo (click image to read):

Page 1 of 3

Page 2 of 3 

Page 3 of 3

The memo notes that over the last three years water ratepayers have overpaid $2.5-million. 

If you can accept the premise* of the report then the next logical question is what to do with the over payment.  This question will be the focus of the Water Rate Ad Hoc Committee over then next several weeks.

*The bulk of the $5-million that the City would like to retain is being justified as rent for the water system's use of City-owned properties and is payable to the City's General Fund.

This latest study of the franchise fee will be the topic of conversation at Monday's Water Rate Ad Hoc Committee meeting at the Main Branch Library at 6PM.  

MARK YOUR CALENDAR - Water Rate Ad Hoc Meeting March 19 at 6PM

Fullerton's Water Rate Study Ad Hoc Committee will be receiving the Water Fund to General Fund Transfer Study prepared by the same consultant that prepared the initial water rate study in 2011, Municipal & Financial Services Group, Inc.  

The public meeting will be held at Fullerton's Main Branch Library and will begin at 6PM.  Anyone wishing to speak on water related issues, will be given an opportunity to do so.  

This is the same group that reported the "Franchise Charge" as being 11%, or $2.49-million, of the total water sales on their May 23, 2011 presentation.  

Contact the City Clerk's Office if you need any special accommodations. 

(714) 738-6350 or CityClerk'sOffice@ci.fullerton.ca.us  

Why does MWD continue to raise rates?

Drought-like conditions? Out of control employee costs?  Corruption?

The answer could be YES to all.

Your Fullerton City Council is about to approve passing the bill for these along to you, Fullerton water consumers.

Lending to the tails of MWD corruption, the Surf City Voice is offers further revelations into MWD's chairman, Jack Foley whose continued lack of ownership over his failure to disclose his income as well as his wife's income for consulting with water districts and related groups becomes public. 

It makes ratepayers like me very suspicious of "pass-through" rate hikes that are unsubstantiated by the City's own MWD and OCWD representatives.

With a recall election looming, I wonder what it will take to wake up Fullerton voters?

The Perpetual Study

(from http://californiawaterblog.com/2012/01/18/some-curious-things-about-water-management/)

Studies forever, are sometimes cheaper and more politically convenient than action or technically serious work. For example, there is a common and political perception that new reservoirs are needed. Most elected and business officials grew up in an era when if you needed more water, you went to the nearest watershed, built a dam, and diverted water to where you wanted it. Today, most of the technical community is lukewarm on the idea of expanding reservoirs, for economic, technical, and environmental reasons. Constructing new reservoirs also taps an immense reserve of controversy. So consider the choices:

A) Build a reservoir costing $2 billion, or $100 million/year for a long time at 5% annual interest
B) Study building a reservoir, costing $1 million/year, perhaps for a very long time

The least controversial and most politic and economical choice here is to study the problem for a long time and rarely release substantial reports on the subject. This neatly dampens most of the controversy, while keeping agencies and consultants well funded and out of trouble. However, studying the problem forever has a financial cost, and arguably greater costs from dissipating analytical expertise, avoiding more serious discussions, and loss of technical integrity in government agencies.

Water Rate Study Session Recap

First, thank you to everyone who attended the study session.  I listened carefully to the ideas, opinions, and concerns of everyone who spoke and have taken those comments to heart.

The information that was presented, although helpful, raised more questions than it answered. 

Bearing the Cost for MWD

Among these, why does the City charge some entities (AT&T, Time Warner, Gas Company, etc.) but not others like MWD to use the City's right-of-way for pipelines?  The answer from Mr. Schickling, the Water System Manager, is that MWD is a water wholesaler and not a retailer.  The argument used by the City thus far to explain why an "in-lieu-of property tax" fee is charged to the City's Water Fund is that other utilities pay the City to place utilities in the right-of-way and that the Water System is just like the other utilities which burden the City.  That argument, however, is not applied to the Metropolitan Water District which has miles of pipelines under Fullerton roadways.  There are other utilities with lines buried in Fullerton's streets which the City doesn't receive a dime for as well.

Taxation Without Representation

Another major problem with the franchise fee or "in-lieu tax" is that Resolution 5184 (see below), the 1970 resolution which raised the tax from 2% to 10%, was enacted specifically to pay for services rendered for managing the Water System by "the Finance Department of the City and of the City Administrator, City Attorney, and City Clerk".  Therefore, while the resolution says that the 10% transfer is to the General Fund, the resolution also earmarks what the transfer is to pay for.  Currently, 80% of this transfer goes to pay for public safety salaries and benefits- that's illegal. 

Double Taxation (Without Representation)

Something that does not seem to bother anyone is that Resolution 5184 (see below) says that the 10% transfer from the Water Fund to is to be based on "gross annual water sales".  The current practice is to also include the "meter fee" (a fixed fee or tax based on the size of your water meter) as part of the "gross annual water sales".  This means you get taxed for the size of your meter and taxed again on 10% of the meter fee as well as the actual water you purchased.

That's sounds like another illegal tax for the Howard Jarvis Taxpayers Association to look into.

No Transparency, No Accountability

All this time I have avoided mentioning the proposed rate increase.  In my opinion, we cannot consider a rate increase until we can assess all of the facts and figures.  To date those facts and figures have been illusive. 

Frankly, the accounting for our water system and the Water Fund has been non-existent for decades and is a complete wreck. This needs to be addressed before we can quantify, much less qualify any increases in water rates.

The water bill needs an overhaul as much as the rest of the water system. And the fees, taxes, charges must all be itemized and transparent to water rate payers.

Is this too much to ask?

Click on image to view full size.



 

Fullerton Water System Study Session - MARK YOUR CALENDAR!

Below is a press release from the City of Fullerton.  Read it carefully and mark you calendar.

Also, here is how much money has been skimmed from the Water Fund:

 

Fiscal                              (Water Fund)

Year     Franchise Fee     Water Sales                

2001      $1,435,202          $14,342,888

2002      $1,558,578          $15,619,444

2003      $1,576,091          $15,676,902

2004      $1,775,133          $17,800,172

2005      $1,771,294          $17,499,462

2006      $2,065,417          $20,587,913

2007      $2,287,693          $22,938,001

2008      $2,278,041          $22,893,749

2009      $2,388,515          $23,967,172

2010      $2,479,930          $24,796,981

2011      $2,532,595          $25,295,986

PRESS RELEASE -

All things water in the City of Fullerton will be the focus of a special City Council study session Tuesday, Jan. 10, 2012.

The session, which will be open to the public, will be held at 4:30 p.m. in the new Conference Center at the Fullerton Main Library, 353 W. Commonwealth Ave., adjacent to Fullerton City Hall.

David Schickling, Water System Manager for Fullerton, said the workshop will cover all aspects of the City’s water utility, ranging from where Fullerton gets its water supplies to how that water is delivered to residences and businesses in the City.

The session will also examine capital improvement needs for the aging water system.

The study session, which was requested by the Council, will be a prelude to the reopening of consideration of a water rate study which was brought to Council this past July.

“The Council took no action on the study then and, instead, directed that further study be done – specifically on the public notification process and the legality of the ‘in-lieu franchise/property tax’ transfer of funds from the Water Fund to the General Fund,” Schickling explained, noting the in-lieu franchise tax has been in place since 1968.

“The results of this expanded study are nearly complete and will be available for public review beginning with a meeting of the Council-appointed Water Rate Study Ad Hoc Committee in February.” That meeting, the date of which has not yet been firmed up, will be open to the public.

Once the committee has reviewed the results of the new study and made recommendations on it, the matter is tentatively scheduled to come to the City Council for consideration in March.

Further information about the study session or the water rate study may be obtained by calling the Office of Water Engineering at Fullerton City Hall at (714) 738-6845.

Persons requiring special accommodations to attend the study session the workshops are asked to notify the Office of Water Engineering prior to Jan. 10.

Tinkering with Water Rates

Water ratepayers in San Juan Capistrano are in for a rude awakening.  A new audit of the water system's financial mismanagement predates the 2003 merger of the Capistrano Valley Water District and the City of San Juan Capistrano by six years. 

You read that correctly.  For six straight years the Capistrano Valley Water District was consistently underfunded because of the rate structure.

The dirty laundry is being aired on the pages of the OC Register and after several massive rate hikes (22% in February and 18% more in July) which the audit says aren't sufficient to cover the deficit.

According to  the Register, the audit states that the utility "also used one-time revenue from property taxes and developer fees as a stopgap funding measure, which had the effect of hiding structural funding problems."

The report indicates "poor financial communication" may have been part of the problem.

Let's head up Interstate-5 to Fullerton and look at the similarities.

Fullerton hasn't had an audit but it did have a rate study.  The rate study appears to have been nothing more than a report to justify nearly doubling water rates.  When pressed for hard data and answers on the water system's "in-lieu franchise fee" (an illegal 10% tax on the Water Fund), staff came up empty-handed.

Fullerton has been under-funding the water system since the 1960s.  Some might rightfully ask how that is possible and why.  Good questions, to be sure.  It was in the 1960s that the "in-lieu franchise fee" was put in place by a city council that actually predates Don Bankhead's tenure on the dais.  Since then, 10% of every dollar paid into the Water Fund has been skimmed and deposited into the City's General Operating Fund like a 3-year old grabbing at a cookie. 

That may not seem like a big deal but with every rate hike, the City's General Fund wins big.  Not to mention nearly 80% of the General Fund covers the benefits and salaries of employees not associated with operating or managing the water system.  It also helps to shore up the growing deficit and pension shortfall.  How is that fair?  How is that even legal?  It's not legal.  This January you'll begin to see a more vigorous campaign headed by City staff to raise rates and justify the continued skimming of the Water Fund.

The illegal "water tax" imposed on the Water Fund has reinforced the policy and subsequent affect on our infrastructure with ZERO investment.  Now, after 50 years of ignoring the problem, pillaging the coffers, and looking the other way, rate payers will be forced to pick up the tab.

Maybe I can blame my parents.  Perhaps Mom and Dad should have been banging on the doors at City Hall in the 1960s and '70s telling the City Council and City Manager to invest in the water system.  But they didn't protest City Hall, probably because they were busy raising five kids, paying a mortgage, and worried about their kids heading off to fight questionable wars in far away places.

No, I can't blame them. Like most people, they relied on their elected representatives to do the right thing.

To those who were voters in the 1960s, '70s, '80s, and '90s...here I am holding the bag.  How much is it going to cost, you ask, to make up for years of mismanagement and neglect? 

About $300-million... 

Orange County Grand Jury Compensation Survey of Water and Sanitation Districts Released

The Orange County Grand Jury has released its "COMPENSATION SURVEY OF ORANGE COUNTY WATER AND SANITATION DISTRICTS". Although the study makes no great revelation, it does suggest that these special districts may be too far removed from the hands of the constituents they serve.

Why the Grand Jury Study:
Special districts are not well understood by the public
Receive little public scrutiny

Special Water/Sanitation Districts Serving Fullerton:
Municipal Water District of Orange County
(Water only)

The District is a wholesale water management and planning agency that provides imported water to 28 water purveyors and two private water companies in a service area of over 600 square miles. These smaller entities then provide the water to residential and commercial customers. In 2001 the District consolidated with Coastal Municipal Water District of Southern California. It is the second largest member agency of the Metropolitan Water District of Southern California, the agency that supplies Southern California with the majority of its imported water. It coordinates countywide water/wastewater emergency preparedness and response efforts.

Orange County Sanitation District
(Sewer only)
The District provides wastewater services for much of Orange County. Its boundaries cover 479 square miles, serving 21 cities and three special districts. The District has two operating facilities, one in Fountain
Valley, the other in Huntington Beach, treating wastewater from residential, commercial and industrial sources in central and northwest Orange County. Each day approximately 230 million gallons of wastewater is treated, enough water to fill Angel Stadium three times a day.

The 25 members of the District’s board of directors consist of elected representatives from each of the sewer agencies or cities within the Orange County Sanitation District. Thus the board members of the District are not elected directly, but are appointed by their respective agencies.

Orange County Water District
(Water only)
Despite its name, the Orange County Water District is not a water provider in the usually understood sense. Its function is to manage the underground water in Orange County, called the aquifer. Agencies pumping water from the ground in Orange County are regulated and charged by this district. The Orange County Water District also operates the Groundwater Replenishment System, a state of the art plant in Fountain Valley that purifies wastewater and injects it back into the ground for reuse.

The board of directors for this district is a hybrid of elected and appointed officials. Of the 10 board members, 7 are elected from defined service areas within the district, and 3 are appointed representatives of
the cities of Fullerton, Anaheim and Santa Ana.

Findings:
Lack of interest by the public
Some districts offer board members fulltime benefits for part-time work
Suggests minimum standards for information access on district websites

Facts:
Combined total annual revenues for the 18 water and sanitation special districts in Orange County exceed $1.3 billion.

California state law defines a special district as “any agency of the state for the local performance of governmental or proprietary functions within limited boundaries (Government Code Section 16271 (d)).

Compensation for the board of directors of water districts must be set in accordance with the California Water Code Section 20202 and for the board of directors of Sanitation Districts, in accordance with the Health and Safety Code, Section 6489.

Board of director meeting stipends for water and sanitation special districts are capped by the state. Other compensation packages for the board of directors and the general manager are set by the board of directors in each district.

Elected or appointed officers of a special district, commission or board elected or appointed after June 30, 1994 are prohibited from participating in the California Public Employees' Retirement System (CalPERS).

Recommendations:
Provide in an easily accessible format on the district’s website, data on compensation for the board of directors and general manager, as well as current budget and financial reports.
Maintain and update agendas, minutes, meeting schedules and location on the district’s website.

Water Bills: Where Does Your Money Go?

Fullerton pays a pumping tax, $255 per acre-foot or about $0.08 for every 100 gallons you use, to the Orange County Water District.  This pumping tax is collected as part of your water bill, though it isn't an itemized cost.

The Orange County Water District is a ground water replenishment agency meaning they do not directly sell water to anyone but they pump water into the ground to replenish what cities like Fullerton pump out. 

Looking at the OCWD's 2011-12 proposed budget I stumbled onto the list of memberships with organizations which Fullerton water rate payers pay for with every twist of their spigot.

Some of these organizations look like questionable lobbying groups.  Among them are the Black Chamber of Commerce, Hispanic Chamber of Commerce, Cal State Fullerton Demographics, California Issue Forum, California Special Districts Association, Clean Water America Alliance, Independent Special Districts Association, International UV Association, Utility Branding Network, and so on! 

In all, we pay for $303,625 so that our OCWD Board Members and staff can associate with these organizations.  The OCWD website where I obtained the proposed budget does not offer any reasons for belonging to these groups. 

Is this smart use of your taxes?  Is the OCWD Board acting in the best interest of its customers? 

Fullerton's Water Rates

From an article on Elk Grove's (a Sacramento suburb) skyrocketting water rates...

Chris Brown, executive director of the California Urban Water Conservation Council, said water rates nationally are rising faster than other utilities, as water systems face infrastructure upgrades without financial reserves. He said water rates are not structured to collect infrastructure reinvestment funds.

"When pipes are 50 years old, they start to fail," Brown said. "We are faced with replacing these systems and we haven't saved money for it for the last five decades."


Read more: http://www.sacbee.com/2011/05/31/3664875/elk-grove-residents-could-face.html#ixzz1NwnwrjZX

MWDOC eCurrents News Letter

MWDOC Newsletter

_________________________________

Message from the President
By Joan C. Finnegan, MWDOC Board President

May is Water Awareness Month. Water is something that, as a society, we take for granted. It is highly regulated, legislated, and fought over. Mark Twain said it best when he said, “Whiskey is for drinking; water is for fighting.” And, in the West, this has been particularly true. Similarly, water on the international level is subject to conflict; but that conflict is often driven by scarcity and cleanliness. Did you know that one out of every six people in the world do not have access to clean, safe water? In fact, more people worldwide have cellular telephone service than have access to clean, safe water. Water Awareness is more than a month; it should be a part of our everyday life.

The Municipal Water District of Orange County (MWDOC) and the family of Orange County Water Agencies are committed to raising public awareness of water-related issues year round. MWDOC does this through a number of programs including its water education school program in partnership with the Discovery Science Center, its Water Policy Dinners, public outreach, and the annual Orange County Water Summit (Summit) in partnership with Orange County Water District and The Disneyland Resort. This year’s Summit was held on May 20th at Disney’s Grand Californian Hotel. Presentations have been posted at http://r20.rs6.net/tn.jsp?llr=xr8waecab&et=1105689018621&s=11443&e=001ZBYd0YJCKCIN2yvzM4HEY2nL2nQpKyWu6p3qvhxjiHcYa_r-9QOmLRJDKdFCUNt28uvmzmonIIWWXqgTVhjipjd2Lr9j3-pCgI0ASKaEqBKYz0e1Tyg4Uw==. Photos and video clips will soon follow.  At 7:30 a.m. on the first Friday of every month, policy makers and community leaders gather at MWDOC for the Water Advisory Committee of Orange County (WACO) which hosts guest speakers with expertise on water management, water resource development, legislation, regulation, and numerous other areas specializing in water. If you have not joined this engaging group in the past, please consider it. The next WACO meeting is on Friday, June 3rd, and will feature Byron Buck, Executive Director of the State & Federal Contractors Water Agency.

Improving our overall water use efficiency as a region is also part of building awareness. Information, tools, and rebates for improving residential, commercial and industrial water use efficiencies are available on MWDOC’s website, http://www.mwdoc.com/.

__________________________________

The Value of Water Brought to Focus at the O.C. Water Summit
By Gina DePinto, Principal Communications Specialist, Orange County Water District 

On Friday, May 20, more than 400 people attended the 4th annual Orange County Water Summit (Summit) and heard dynamic presentations and engaging discussions about the value of water, seismic risks to California’s water supplies, the need for new and improved infrastructure, and what it takes to build water infrastructure projects during today’s tough economic times.

Presented by the Orange County Water District, Municipal Water District of Orange County and the Disneyland Resort with Title Sponsor Siemens Water Technology Corp., the O.C. Water Summit brought experts from across the country together with Southern California business professionals, water industry stakeholders, elected officials, and community leaders to discuss ongoing state water issues.

The theme of this year’s Summit was “California’s Extreme Water Makeover.” Many people think of the “Big One” as an earthquake, but one of California’s most fragile fault lines is its main water delivery system that moves water from Northern California to parts of the Central Valley, the Bay area, and Southern California. One major earthquake or heavy storm could cause levees along the delivery system to break, allowing ocean water to rush into the Sacramento-San Joaquin River and contaminate water supplies, as well as potentially cutting off the delivery of water to many parts of California. For decades, blueprints to fix California’s lifeline have been drafted and debated. If and when a plan comes together that decision makers can agree on, how can California get it financed in the face of budget cuts, especially when water is a resource that is taken for granted and is highly undervalued?

Click here to read more about the OC Water Summit.

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Legislation Proposing Statewide Water Fee "Parked" in Senate for Additional Work
By David J. Cordero, MWDOC Director of Government Affairs 

Proposed legislation that would create a statewide fee to fund water projects and programs that provide public benefits advanced to the Senate Appropriations Committee this month, where it will remain and become a “two-year bill” so that the author may work with stakeholders and others to address issues and concerns later this year.

The March issue of eCurrents introduced its readers to Senate Bill 34 by Senator Joe Simitian (D-Palo Alto). The bill would establish a statewide fee to provide a sustainable revenue source to fund water projects and programs that provide state and regional “public benefits.” The proposed, but yet-to-be-determined, fee amounts would be assessed to urban retail and agricultural water suppliers on a per-acre-foot and per-irrigated acre basis respectively. The California Board of Equalization would be responsible for collecting the fee and depositing the revenue into a new California Water Resources Investment Fund. Half of the revenue would be deposited in a State Investment Account and the other half would be deposited into Regional Investment Accounts.

Funds disbursed from the State Investment Account would be under the jurisdiction of the California Water Commission. Direct expenditures and grant disbursements would be handled on an annual basis in consultation with various state agencies and include:

• Operating expenses of the Delta Stewardship Council;
• Grants and expenditures to implement the Delta Stewardship Council’s Delta Plan;
• Projects of “statewide and interregional significance;”
• Projects that reduce the impacts of mercury contamination in the Delta watershed;
• Scientific studies and assessments; and
• Debt service on general obligation bonds for projects and programs that provide statewide and interregional significance.

Click here to read more about the statewide water fee proposed in SB 34 (Simitian).

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Winter Weather Improves Water Supply Conditions; Mandatory Water Reductions Lifted.
By Warren Greco, MWDOC Water Resource Analyst

After nearly two years of mandatory water supply reductions, full imported water deliveries have been restored to residents and businesses in Southern California. On April 13, 2011, the Board of Directors of the Metropolitan Water District of Southern California (Metropolitan) voted to end its Water Supply Allocation Plan for its 26 member agencies, which encompass 19 million people from Ventura to San Diego Counties. This step by Metropolitan made it possible for the Municipal Water District of Orange County (MWDOC) to end the supply allocation plan that it had adopted for its service area in July 2009.

Metropolitan adopted mandatory water use reductions two summers ago, as water supplies were heavily constrained following both a multi-year drought and pumping restrictions being imposed in the Sacramento-San Joaquin Delta (Bay-Delta) to protect endangered fish species. The action to lift the Water Supply Allocation Plan was made possible by storms this past winter, as well as the continued water use efficiency efforts by residents and businesses.

This season, many parts of California have experienced near record amounts of rainfall and snowpack, and imported water supplies have improved significantly from the previous three years. Locally, Orange County has received around 21 inches of rainfall compared to a historic average of around 13 inches. Overall precipitation in the northwestern slope of the Sierra Nevada Mountains, which supplies Southern California by way of the State Water Project, is at 144 percent of the normal. The Colorado River Basin, which supplies Southern California through the Colorado River Aqueduct, received its biggest snowpack in 14 years.

Click here to read more about water supply conditions.

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Mesa Consolidated Water District Breaks Ground on Colored Water Treatment Facility Improvements Project
By Stacy Taylor, Public Affairs Manager, Mesa Consolidated Water District

The Mesa Consolidated Water District (Mesa Water) Board of Directors inaugurated the start of construction for its Colored Water Treatment Facility improvements project with a ceremonial groundbreaking on April 19, 2011. A live webcam of the Colored Water Treatment Facility improvements project progress is online at http://r20.rs6.net/tn.jsp?llr=xr8waecab&et=1105689018621&s=11443&e=001ZBYd0YJCKCLw7X0CDs8MfYEIgnD25e0GaZe_AVjO7jC8u4izDDhNB-6FjKwlSTmLS8UZZR-2VLUvQiI0bGOOn6cBbmk75VGzPQkNeLo3LD-kSUlK02Qrlw== under the public information menu.

“The Colored Water Treatment Facility produces delicious, soft, high-quality water,” said Mesa Water’s Board President, Fred R. Bockmiller, Jr., P.E., “and the Facility expansion will allow Mesa Water to achieve our goal of being able to produce 100 percent of our water from local sources.”

When completed in mid-2012, Mesa Water’s improved Colored Water Treatment Facility will provide the following benefits:

• High-quality soft water;
• 50 percent more water than the previous technology while using less energy;
• Groundwater clean-up by keeping colored water from migrating into the clear water zone;
• 100 percent local water reliability.

Mesa Water closed its Colored Water Treatment Facility for improvements on December 30, 2010. The contractor completed the demolition phase in mid-April 2011, and the expanded Facility is scheduled to return to service by mid-2012, just in time for peak summer demands.

Click here to read more about Mesa Water's Colored Water Treatment Facility.

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MWDOC Celebrates the Winners of the 2011 Poster and Slogan Contest
By Melissa Covarrubias, MWDOC Public Affairs Intern

The 2011 Poster and Slogan Contest sponsored by the Municipal Water District of Orange County (MWDOC), was a success once again. This year more than 800 entries were received from Orange County students in kindergarten through sixth grade. Thirty winners were selected in total – 15 for their poster entries and 15 for their slogan entries. The winning students were recognized at a special awards ceremony on Wednesday, May 25, at the Discovery Science Center in Santa Ana.

This year’s contest theme was “Low Flow is the Way to Go!” and all of the students showed their talent through their artwork and slogans.

The grand prize winner in the Kindergarten through Third Grade level was Iris Lee from Canyon View Elementary in Irvine. Iris received a pair of annual passes to Disneyland as her grand prize. The grand prize winner in the Fourth through Sixth Grade level was Deven Nagel (poster shown above left) from La Veta Elementary in Orange. Deven received an Apple iPad as his grand prize.

Click here to read more about the MWDOC Poster and Slogan Contest.

Water Rate Increase Notice Heading to Your Mailbox

The notices will go out June 1 and will advise water rate payers that their water bills will increase as much as...6% per year every year for 5 years and then 3% every year for 5 more years.  But wait there's more! 

There will also be at least a 1.8% additional increase to cover that pesky "pass-through" cost that is a direct result of rate increases from OCWD, MWDOC, and MWD.

All of these are compounding interest rates with numerous variables that will likely increase.

Throughout the Water Rate Study process I struggled to get anyone to tell me what the actual cost is per meter.  I was told continually that the cost is really high and we just can't go there.  How expensive is it??  After hours and hours of meetings and studying I still don't have an answer. 

Here is what I do know. 

All of the "pass-through costs" related to the City's purchase of water are grossly underestimated.  I fear the actually "pass-through" cost will go up as much as 20% in just the next 2 to 3 years. 

The Water Rate Study showed a 3% increase in city employee costs could be expected despite the fact that the proposed budget shows a 3% in crease for CalPERS (pensions) for general (non-safety) employees and a 7.4% increase for safety employees.  The same proposed budget shows group benefits to increase 6.8% for non-safety employees and 7.8% for safety employees.  So, right from the start we have a glaring flaw that needs to be rectified.



Sexual harassment training is just one of the

Ethics Office accomplishments.  MWD Ethics

Office also created and provided Rumors and

Gossip training and ethical decision making

training for managers and employees.

 The Water Rate Study also shows the MWD pass-through as increasing by 6%.  However, MWD's proposed budget shows an increase of 23% for system operation as well as another 23% for construction costs.  The same MWD proposed budget shows MWD employees receiving a 12% increase in salaries and benefits and 18.4% increase in "labor costs".  The MWD budget has other fluff, such as the Ethics Office I wrote about HERE that costs rate payers $573,000 to review legislation and train employees on sexual harassment.

And the most egregious part of the Water Rate Study is the sacred franchise tax.  Most people pay their water bill believing that when they pay for that portion noted as "water" that they are in fact actually paying for the cost to purchase water and maintain the water system.  They are wrong.

First, according to the Water System Manager, we do not recover the actual cost of maintaining and delivering the water.  Hence the water rate study.



City profits from hidden tax!



Second, 10%-11% of your water bill (not your total utility bill) goes into the general fund.  The general fund is what pays for a major portion of our public safety and employee benefits such as pensions.  That 10%-11% does NOT go into the water fund.  So, when I asked the consultant from Municipal Financial Services how much the City marks up the water I was shocked that he said the City does not make any money on water sales.  Of course the City makes money, $2,486,000 is a nice chunk of change which that can only be labeled as profiteering or perhaps municipal greed. 

You see, franchise fees exist so that when a company, let's say AT&T, buries wires in the road, they have to pay a small fee to the City as rent.  That fee helps cover inspection and maintenance costs and is similar to a property tax.  That seems like a pretty rational way to deal with private entities using public right-of-way for utility systems but when the City charges its own water rate payers, it is adding insult to injury.



In the case of Fullerton's Water Rates a few things need to be made crystal clear to rate payers and to the City Council:

• First, rate payers do not pay enough to cover the actual cost of maintaining and replacing the water system.
• Second, our current water rates are based completely on consumption which is dependent on users consuming more water in order to maintain the system.  In fact, the more you conserve water, the more the City of Fullerton must raise water rates.  That's a stupid way of addressing our infrastructure.  No matter how much water you use or don't use there is a specific cost to make it available to you.  The water bill should have 2 segments: one for the fixed cost to have water available and a second segment that reflects the exact cost for water consumed.  That would be the most transparent way to address this.
• Third, the City Council must abolish the franchise tax.  I realize that it will cause a $2.5-million shortfall in the general fund but keeping the tax in place is abusive and wasteful governance.  The City Council and City Manager's Office must be reminded that they, like the rest of us, must live within our means.  That means its time to drop the $50,000 allocation for membership in the League of Cities and Southern California Association of Governments and cut out the $50,000 allocated in the Public Works Department's Capitol Improvement Program to replace window coverings at Basque Yard (see page N-10 of proposed CIP).

At a time when 1 out of 4 of your friends, family, and neighbors are out of work, we need to remind our elected representatives of their fiduciary responsibility to voters and taxpayers. 

No comment.

Your last chance to speak up is July 19 at the City Council meeting and public hearing.