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Friday, September 11, 2015

No 'win-win' label for water cost decisions

Yorba Linda's elected leaders label many of their decisions “win-win” for the community, but neither City Council members nor water district directors are placing that tag on water-use changes resulting from the state's long-term drought.

In fact, there's never been a situation more “lose-lose” than the upcoming rate hike decision facing the Yorba Linda Water District directors, slated for a Sept. 17 meeting at 6:30 p.m. at district offices, 1717 E. Miraloma Ave., Placentia.

To recoup revenue lost because residents are using 36 percent less water, directors plan to raise the “basic service charge” that varies based on meter size.

More than 80 percent of residential ratepayers have one-inch meters, with the current $16.77 monthly charge increasing to $41.57. About 15 percent have three-quarter- or five-eighth-inch meters, with the $10.06 charge rising to $26.29.

Ratepayers irrigating with two-inch meters, including the city, schools and some homeowner associations, will see a boost from $53.66 to $125.61, and the fewer one and one-half-inch meters will jump from $33.54 to $79.77.

While directors are only setting one increase to start this year, opponents see bigger boosts in future years, which will occur if more state restrictions are imposed or if the district's water and energy suppliers raise prices.

Already the district is drawing the maximum allowed 70 percent of its water supplies from the groundwater basin managed by the Orange County Water District. Groundwater is two-thirds cheaper than imported water.

Increases can be defeated if a majority of about 24,000 ratepayers file written protests before the close of Sept. 17's public hearing. Protests must include an address or parcel number and be signed by the property owner. Verification of a large number of protests could take some time, with results not available at the meeting.

Some directors are upset over statements they've hiked their own salaries, but their last raise was in 2003, when stipends were set at $150 per meeting, with a maximum of 10 per month.

Employee increases, officials say, were negotiated before the mandated cuts. They note pay is “lower than the norm in the industry in Orange County,” adding, “We are having trouble retaining our experienced staff as they quickly gain experience and leave for other agencies.”

Directors also receive from $8,963 to $15,124 in medical, vision and dental benefits, except Phil Hawkins, who recently dropped his coverage. Mike Beverage, in office since 1992, receives a CalPERS pension contribution, $1,560 for 2014, according to the district's public information officer.

Sadly, nobody sees this as “win-win” – water officials say the increases are “tied to the penny to the 36 percent reduction,” and, if not implemented, district solvency is “questionable.” And based on recent statements from state officials, the 36 percent cut looks to be permanent.