Three items are on the agenda:
–A public hearing on the citizens’ initiative ordinance that seeks to place a 10-year moratorium on smart meters within the City’s utility jurisdiction.
–A resolution setting a special election on the smart-meter ordinance for March 24.
–A “discussion/action” item to publish an ordinance that seeks to raise the water rates 55 percent, which will then go to public hearing in about a month.
The smart-meter ordinance, if adopted by the City Commission, would “repeal” and “void” the City’s contract with Landis + Gyr, which the City Commission awarded a $1-million contract on August 27, 2019. The City has about 4,300 electric-utility customers. The contract called for the installation of that many smart meters and a computerized relay system that would hook into the City’s billing-software system.
The ordinance would also prohibit any installation or purchase of smart meters for the water utility for 10 years, which the City was planning on doing as money became available.
The ordinance is to take effect immediately upon passage.
Over 260 people signed the petition in favor of the smart-meter moratorium, but only 211 were verified as qualified electors, according to Angela Torres, the interim city clerk. However, only 154 electors needed to sign the petition to bring the initiative ordinance to the City Commission, which was supposed to vote it up or down by Jan. 2, according to State law.
Many residents have spoken at City Commission meetings pointing out health hazards associated with smart-meter electro-magnetic radiation. Others complained the city should spend the money on critical-infrastructure repairs. That Landis + Gyr is the subject of lawsuits for non-performance and other issues formed another topic of residents’ protests against the purchase. The City Commission approving the purchase with no documentation or public input perturbed many residents as well.
State law says if the City Commission rejects the initiative ordinance, or if it writes a competing ordinance, then the ordinance must go to a special election.
The second item on the agenda is therefore confusing. It is a special-election resolution, which claims the City Commission has “adopted” the ordinance, therefore the ordinance will go to a special election on March 24. But if the City Commission adopts the ordinance, no special election is required, according to State law.
The third item on the agenda seeks the City Commission’s permission to “publish” an ordinance that will raise water rates 55 percent. Ordinance legal ads must run in the Sentinel, the official City newspaper, for three weeks. A public hearing on the water-rate hike would then be scheduled.
The current base rate for the water utility is $8.15, which would go to $18 a month, if the ordinance is adopted. However, under the proposed ordinance, 2,000 gallons is included with the base rate, which would cost $8.15 plus $1.75 plus $1.75 or $11.65 under the current rate. Therefore the base-rate difference between the current and proposed rate is $6.35, a 55-percent increase. If one only uses 1,000 gallons a month however, the increase is almost 100 percent.
Although one of the City’s rate-increase goals is to encourage water conservation, the new one encourages more water use—up to 2,000 gallons a month, since one pays for it, whether used or not.
The second part of the rate increase is the cost for 1,000 gallons, the smallest unit the City measures in water usage, which also encourages over-usage. The current rate is $1.75 per 1,000 gallons and the new rate is $2.71, also a 55-percent increase.
At minimum, a 35-percent rate increase is necessary to hold onto a $9.4-million grant-loan the City was awarded by the U.S. Department of Agriculture, which comes with conditions. It requires the City collect almost $1.4 million in water-utility fees a year. Currently it collects about $911,000 a year.
The loan-grant would fix downtown water pipes, which comprise about 30-percent of the leakiest, oldest pipes.
The 55-percent increase will allow the city to attack other water-system problems. A 2015 engineering study identified $25-million in needed water repairs, a figure five years out of date.
According to a September 2019 engineering study, the water system is leaking 47 percent. Water and Wastewater Director Jesse Cole claims 17-percent leakage based on his January 2020 water audit. The Sierra County Sun has requested, but not received the water audit.
Public Utility Advisory Board Chairman Jeff Dornbusch questioned whether the people should be paying for leaking water at the City-Commission Jan. 22 meeting, and if the rates will be recalculated as the leaks are stopped.
Karl Pennock of the Rural Community Assistance Corporation, who conducted a water-rate study as a subcontractor for the USDA, the $9.4-million loan-grant agency, said he would consider it. For more information on Pennock’s water-rate study, please see: City’s water rates must go up to get $9.4 million loan/grant, By Kathleen Sloan, January 23, 2020
However, it appears the City is moving ahead with the rate increase before considering finer points raised by Pennock’s water-rate study. The City Commission has also not heard a presentation on the 2015 or 2019 water-system studies or Cole’s water audit.