Metropolitan Water District Director's Letter to Fullerton City Council

You are probably all aware of the series of events that have taken place during the first 2 weeks of April. The month started off with the snowpack report for April 1st. The snowpack in the state of CA is at the lowest in recorded history. Governor Brown attended a snow measurement station in the Sierra's. After witnessing the measurement he ordered a mandatory cutback of 25% on urban water use.

 

The MWD had been analyzing our water supply and the possibilities of an allocation for the last few months. It was agreed upon and agendized for discussion at our April committee and board meetings. Governor Brown beat us to the punch with his April 1 announcement.

 

The MWD was very successful at moving water to the San Luis Reservoir during the large December storms. The discussions in February and March were centered around a Level 2 allocation, but as March went by it became clear that the snowpack was going to be very low. The snowpack measurement combined with Governor Brown's mandatory reduction caused the MWD to rethink it's allocation level. The allocation debate at the water planning and stewardship committee meeting on April 13th had varying opinions. The discussion was centered around a Level 3 or Level 4 allocation. A Level 3 being a 15% cut, and a Level 4 being a 20% cut in water use by MWD customers. The arguments for either level of allocation had merit. In the end, it was agreed to go with a Level 3 allocation with a monthly review that potentially could bring a revote to change the allocation.  

 

The MWD's water supply situation is not completely finished for this year. We may face some shortfalls in our water transfer program. The MWD contracted for a 100,000 acre feet of water from the rice farms north of the delta. We were informed on Friday April 10th, that the transfers were being halted by the state. That transfer is uncertain. Our fallowing program with the Palo Verde irrigation district will be utilized fully this year, but our stored water in Lake Mead has a slight chance of not being released if Lake Mead's level falls into emergency status. This condition seems unlikely, but nonetheless there is a small chance. These scenarios could trigger a deeper allocation.

 

I discussed the Level 3 allocation with our water manager Dave Schickling. His opinion is that we can meet a Level 3 allocation without penalty from the MWD. The penalty is over $1,400 per acre foot. It goes without saying that we should make every effort to conserve water over the next 9 months. Governor Brown's order for a 25% reduction will be tougher to attain, but if we can reach that level, or near it, the MWD's Level 3 allocation will not be an issue.

 

I have attached General Manager Kightlinger's letter to the state water resource control board. This letter outlines the MWD's position and provides a proposed framework for the mandatory cutbacks. I have also attached a letter to Governor Brown from Chairman Record. These letters were crafted through discussions in various committees, and they are enlightening about past water conditions, conservation, and our current situation. They are well worth reading.

 

On Tuesday April 14th, the board of directors voted to support a Level 3 allocation. I voted in support of the Level 3 allocation. I have also attached the summary report for April. There are 2 other items worth noting. We appropriated 41 million dollars to rehabilitate the filters at the Weymouth treatment plant. These filters are almost 80 years old. The new filters are an enhanced design that is compatible with the new ozone equipment being installed at the Weymouth plant. The other item of interest took place in communication and legislation committee. This action authorized the general manager to express support for SB 385 (Hueso, D-San Diego) primary drinking water standards: Hexavalent Chromium. This bill sets attainable standards for the presence of Hexavalent in our water supply.

 

As always if you have any questions, give me a call.

[redacted]

Pete Beard

WATER RATE INCREASE - Just say NO!

This week I received a notice from the City of Fullerton that they would like to raise water rates...AGAIN!  

The proposed rates are specifically for pass-through costs from Metropolitan Water District, Orange County Water District, Southern California Edison, and the City of Anaheim (we purchase electricity from Anaheim for Fullerton's wells in Anaheim).  

We know MWD (the agency that gave each employee a $6,000 bonus) recently raised rates to help cover salaries and pensions as well as some infrastructure needs.  We are required to purchase about 30% of all water from MWD.  The OCWD charges us a pumping tax that is significantly less than MWD but those rates keep creeping up. 

And those pesky electric bills keep going up as well.  

Let's recap a few important changes to your rates:

In 2012, a post-recall Council directed staff to refund about $7.4 million: http://www.ocregister.com/articles/city-374846-water-bills.html 

In 2013, a new council majority (Chaffee, Flory, & Fitgerald) voted to redirect staff to only refund about $3.3 million and concocted a new scheme to keep the rest and continue their slightly smaller skimming operation: http://www.ocregister.com/articles/customers-522970-water-city.html  & http://www.orangejuiceblog.com/2013/03/fullerton-water-heist/

Now, the City will charge you more and as a direct result skim more, and claim it in the name of pass-through costs.

Fill out your protest form that was attached on your bill.  If you didn't get the notice for any reason, fill out this form and send it in immediately.  Share with all of your neighbors, employers, friends, and family in Fullerton!

(Click image to view/print)

Water Rate Meeting TODAY at 4:30PM

Public parking will be available in the small parking lot accessed from Commonwealth as well as the large employee parking lot accessible from Basque. 

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.

Fullerton's Water Rates and Water District Salaries

Teri Sforza of the Orange County Register compiled salaries and benefit values for those earning more than $100,000 as employees of Fullerton's water supplier, the Orange County Water District.  It is an impressive list of management titles and technical fields.  Some of the job titles below have me scratching my head as to what the employees do and what their day to day activities entail.  There are several listed as "supervisor" or "manager" with the exact same title.  Are these managers or are they more like committee members?  Are certain efforts being duplicated?

Sforza says that OCWD employees do not receive the defined benefit that most other agencies provide which certainly makes these salaries much more palatable.  Instead, employees pay into their own 401k-style plans which means a much less overall tax burden for rate payers like the City of Fullerton's residents.

Nonetheless, with Fullerton's water rates being reviewed and an increase likely, it is important to know the good and bad business practices of our partnering public agencies.
Here are the numbers for OCWD. These numbers include the value of health benefits and retirement account contributions in addition to pay received by workers.

General Manager $ 290,851
Assistant General Manager $ 236,548
Executive Director of Engineering & Planning $ 222,330
Executive Director Local Resources and Administration $ 220,320
Laboratory Director $ 202,033
Chief of Hydrogeology $ 198,177
Director of Water Production $ 193,589
Director of IS/Property Management $ 192,627
Chief Financial Officer/Treasurer $ 182,048
Water Quality Director $ 171,696
Director of Planning and Watershed Management’ $ 171,537
Natural Resources Director $ 166,110
Groundwater Replenishment System Process Manager $ 165,026
Executive Director Operations $ 164,899
Director Of Engineering $ 163,453
Director of Human Resources $ 159,960
Principal Hydrogeologist $ 159,889
Process Control & Systems Manager $ 157,656
Director of Recharge Operations $ 157,231
Groundwater Replenishment System Program Manager $ 155,788
Director of Public Affairs $ 154,547
Principal Engineer $ 152,569
Supervising Chemist $ 152,072
Supervising Chemist $ 151,283
Research Director $ 150,019
Senior Engineer $ 149,847
Principal Engineer $ 147,976
Purchasing Manager $ 147,854
Risk and Safety Manager $ 146,692
Principal Engineer $ 145,197
Principal Hydrogeologist $ 144,901
Chief Operator $ 143,170
Accounting Manager $ 142,281
Supervising Chemist $ 140,666
Director of Regulatory Affairs $ 139,631
Senior Programmer Analyst $ 138,821
Principal Hydrogeologist $ 137,777
Operations Shift Supervisor (Grade IV/V) $ 136,932
Finance Manager $ 136,610
Chief Operator $ 135,996
Principal Process Specialist $ 134,158
Senior Programmer Analyst $ 133,268
District Secretary $ 132,467
Senior PCS Programmer $ 130,756
Principal Communications Specialist $ 130,322
Senior Engineer $ 129,013
Operations Shift Supervisor (Grade IV/V) $ 128,076
Senior Plant Operator III $ 127,667
Senior Plant Operator III $ 127,667
Principal Planner $ 127,646
Supervising Chemist $ 126,572
Supervising Chemist $ 126,572
Supervising Environmental Specialist $ 123,087
Senior Scientist $ 122,306
Senior Scientist $ 122,306
Operations Shift Supervisor (Grade IV/V) $ 121,726
Operations Shift Supervisor (Grade IV/V) $ 121,726
Principal Scientist $ 121,656
Principal Scientist $ 121,656
Senior Plant Operator III $ 121,653
Senior Plant Operator III $ 121,653
Maintenance Manager $ 121,520
Maintenance Manager $ 121,520
Supervising Chemist $ 121,131
Supervising Chemist $ 121,131
Field Headquarters Maintenance Supervisor $ 120,857
Field Headquarters Maintenance Supervisor $ 120,857
Basin Cleaning Vehicle Operations Supervisor $ 120,731
Basin Cleaning Vehicle Operations Supervisor $ 120,731
Senior Plant Operator III $ 119,740
Senior Plant Operator III $ 119,740
Senior I & E Technician $ 118,892
Senior I & E Technician $ 118,892
Principal Project Accountant $ 117,864
Principal Project Accountant $ 117,864
Senior Plant Operator III $ 117,572
Senior Plant Operator III $ 117,572
Operations Shift Supervisor $ 117,388
Operations Shift Supervisor $ 117,388
Hydrogeologist $ 116,199
Hydrogeologist $ 116,199
Senior Maintenance Technician Grade III $ 116,021
Senior Maintenance Technician Grade III $ 116,021
Principal Project Accountant $ 115,737
Principal Project Accountant $ 115,737
Senior Programmer Analyst $ 115,679
Senior Programmer Analyst $ 115,679
Senior I & E Technician $ 115,407
Senior I & E Technician $ 115,407
Senior Chemist $ 115,340
Senior Chemist $ 115,340
Recharge System Operator $ 114,934
Recharge System Operator $ 114,934
Senior Maintenance Technician Grade III $ 114,713
Senior Maintenance Technician Grade III $ 114,713
Principal Project Accountant $ 114,346
Principal Project Accountant $ 114,346
Senior Distribution Technician $ 114,223
Senior Distribution Technician $ 114,223
GIS/Database Supervisor $ 113,719
GIS/Database Supervisor $ 113,719
Senior Scientist $ 113,206
Senior Scientist $ 113,206
Senior I & E Technician $ 112,766
Senior I & E Technician $ 112,766
Senior Administrative Coordinator $ 112,646
Senior Administrative Coordinator $ 112,646
Senior I & E Technician $ 112,566
Senior I & E Technician $ 112,566
Property Manager $ 110,873
Network Administrator $ 110,275
Senior Scientist $ 109,268
Senior Scientist $ 109,268
Senior Environmental Specialist $ 109,096
Senior Hydrogeologist $ 108,938
Senior Hydrogeologist $ 108,938
Senior Scientist $ 108,910
Senior Scientist $ 108,910
Assistant District Secretary $ 108,460
Assistant District Secretary $ 108,460
Senior Planner $ 108,421
Senior Planner $ 108,421
Hydrogeologist $ 108,179
Construction Inspector $ 108,174
Senior Chemist $ 107,371
Senior Chemist $ 107,371
Network Administrator $ 107,289
Maintenance Technician Grade II $ 106,187
Buyer $ 105,335
Principal Communications Specialist $ 104,902
Senior PCS Programmer $ 104,888
Senior Environmental Specialist $ 103,638
Legislative Affairs Liaison $ 103,190
Senior Chemist $ 102,715
Senior I & E Technician $ 102,430
Maintenance Technician Grade II $ 102,163
Senior I & E Technician $ 100,204
Field Headquarters Operations Supervisor $ 100,121

TWO IMPORTANT ANNOUNCEMENTS

Two important announcements:

First, the Water Rate Study will be held at the City Yard (1580 W. Commonwealth Ave.) at 6:30PM tonight and at City Hall tomorrow morning (4/13/2011) at 7:30AM at City Hall.
Please attend the meeting, hear what City Hall has to say and be ready to offer up solutions that do not include doubling our water bill.

You can find the City’s budget at: http://www.cityoffullerton.com/depts/admin_serv/budget/budget.asp

You can find the DRAFT Water Rate Study Report at: http://www.cityoffullerton.com/civica/filebank/blobdload.asp?BlobID=7063

Second, the Planning Department needs your help. I will share my personal feelings about this at a later date but until then, please help. If you don’t pitch in and speak up, imagine who will…

Here is the text of the message from City Hall to YOU:

Community Partners:
The City of Fullerton is inviting residents, property owners, business owners and community groups to help select a consultant for the Downtown Core and Corridors Specific Plan and Program Environmental Impact Report. The goal of the Downtown Core and Corridors project is to develop a vision and plan to guide the future development of the City’s downtown and its major entry corridors, or streets. By creating detailed standards that are aligned with the community-based vision, the design and review process for future projects will be improved as there will be more clarity and direction for the parties involved.

Selecting the right consultant for this project is extremely important, and the City has intentionally created a process where members of the community will be involved in the decision.

In January 2011, the City of Fullerton released a Request for Qualifications for the Downtown Core and Corridors Specific Plan and Program Environmental Impact Report. Twenty consultant teams responded and submitted Statements of Qualifications. On March 30, 2011, an Evaluation Committee (consisting of 10 members of the public appointed by the City Council and 7 City staff members) identified the top three consultant teams. These three consultant teams have been invited for interviews before the Evaluation Committee and the Fullerton community.

At the community interviews, members of the Fullerton community will have the opportunity to hear presentations from the three teams. They can also interact with the consultant teams and ask them questions. Community members will also have the opportunity to fill out evaluation score cards for each team. The score cards will be used by the Evaluation Committee to select the best consultant team for the project.

Details related to the Community Interviews are provided below:

Monday, April 25, 2011

4:00pm – 8:00pm

City of Fullerton Maintenance Services Building

1580 W. Commonwealth Avenue

Please participate in this important process and invite your friends, family, neighbors and co-workers do the same by forwarding this email to them. Together we can insure that the downtown and its entry corridors get the best consultant team for this important project.

For more information, please contact:

Heather Allen, Planning Manager: heathera@ci.fullerton.ca.us or 714.738.6884

Jason Jones, Project Manager: Jason@JonesPlanningandDesign.com or 408-310-7881

Al Zelinka, Community Development Director: alz@ci.fullerton.ca.us or 714.738.3347.

Water District CEO Speaks His Mind

Wednesday I had the opportunity to listen to retired U.S. Army Colonel and MWD CEO Jack Foley speak to engineers and land surveyors at the monthly meeting for the Orange County Chapter of the American Council of Engineering Companies.  Foley has an amazing and long resume that is impressive even to those not usually impressed by meaningless wallpaper.

Foley spoke for more than an hour focusing his attention on MWD and our water infrastructure.  One of Foley's admirable traits is his plain English.  He doesn't get caught up in a the absurd political correctness that I'm used to hearing at from public speakers.  Instead, Foley spoke from the heart and was crystal clear and it was appreciated. 

The environment was a large part of the retired colonel's sermon.  Unlike most CEOs who wring their hands and are "sensitive to the issue", Foley stands his ground unabashed. 

Public Pay Rises Despite Recession

August 31st, 2010, 4:12 pm
by Teri Sforza, Register staff writer

"In the five years between 2002 and 2007, the number of full-time equivalent employees in all state and local governments in California grew just three percent, while the cost of paying those folks grew 26 percent."

What is more amazing are the special districts like water and sanitation districts.

"How this breaks down may tell us something interesting about this government transparency thing. Stay with us here!

• State government, alone (a rather closely-watched entity), saw employees rise 2 percent, and payroll rise 23 percent, between 2002 and 2007.
• Local government, alone (less closely-watched?), saw employees rise 4 percent and payroll rise 27 percent.
• School districts, alone (a mixed-bag on how well they’re watched), also saw employees rise 3 percent and payroll rise 27 percent.
• But special districts, alone (perhaps the most unwatched governments of all), saw employees rise 14 percent, and payroll rise 40 percent."

And who runs these districts?  We, the People, though indirectly.  Often, our local city council members are appointed by their respective councils to represent their city's interests in a particular district.  It is convenient for these representatives (elected by us and appointed by fellow council members) to raise taxes disguised as fees to cover the costs of rising pensions, executive board per diem, cost of living adjustments, insurance premiums, and environmental mitigation.  These are all controlled by local districts except certain environmental requirements.  Our local elected representatives are completely responsible for the "passing along rate hikes".  They are the ones who we elect to represent our interests.  They are supposed to fight to keep rates low.  But do they?  No!  They continually raise taxes and push it off onto the end user, you and me, and call them fees.  And ultimately, when questioned, they say "we just got to recover our costs." 

Please remember that your vote in November will have a far reaching impact on your taxes, personal income, local businesses, and how your community is represented.  Think before you vote.