None of the City Commissioners, not even the three new City Commissioners who campaigned on transparency platforms, Brendan Tolley, Randall Aragon and Amanda Forrister, answered the Sierra County Sun’s questions about why the City would further stress public funds by going through with a nonessential purchase amidst the coronavirus pandemic.
Mayor Pro-Tem Brendan Tolley belatedly answered the Sun’s phone call, stating he couldn’t talk about it because of “pending litigation.”
Last August the City Commission, by mere motion, voted to award a Request for Proposals for the electric utility smart meter installation and system to Landis & Gyr.
Without bringing the subsequent contract back to the City Commission, Mayor Sandra Whitehead signed the contract with Landis + Gyr September 2019 that included a pick-and-choose menu of services that goes on for years, without a bottom line stipulated.
The $1-million figure was City Manager Morris Madrid’s verbal estimate for how much the project would cost at the August 27 meeting. The City Commission has never been presented with or asked for a schedule of costs and services.
By October 2019, over 260 people signed a petition to put the question whether smart meters should be banned in the City for 10 years, succeeding in garnering enough signatures to hold a special election.
After missing state-law-dictated deadlines, one of the last acts of the prior City Commission, in a Jan. 29 special meeting, was to vote down holding a special election. The City Commission cited case law that argued some governmental actions are not subject to a public vote.
Ron Fenn filed a lawsuit the next day, claiming the City Commission violated the state law allowing the people under a commission-manager form of government to put certain questions to public vote. He was running for City Commission seat 5 at the time, subsequently losing the bid for office.
The court case is still in the discovery phase and no judge has been assigned. The case was filed in 7th Judicial District Court, Sierra County.
The City made no purchases with Landis + Gyr until recently. The contract had an easy-out clause stating lack of City funding could void the contract. According to an up-date report given by City Manager Morris Madrid to the City Commission, Landis + Gyr had delayed delivering services due to the coronavirus pandemic. It appeared the City may have taken the easy out, saving the $1 million.
Then the first purchases with Landis + Gyr showed up in the City’s accounts payable statements included in the May 13 City Commission packet, available online, which total about $20,000.
The Sun asked the City Commission the following questions that remain unanswered:
Due to the coronavirus shut down, it is a given gross-receipts-tax revenue will drop, causing more than the usual deficit in General Fund revenue compared to General Fund expenditure. This is usually made up by a massive transfer from the electric department. The electric fund will therefore probably be tapped more deeply in the upcoming fiscal year.
Smart meters are not essential.
1. Please express your opinion on expending $1 million from the electric fund for smart meters—made up of citizen fees—during a very tough year.
2. Please express your opinion on the lack of an opt-out ordinance, while this nonessential infrastructure is going in place. The Public Utility Advisory Board and City Manager Morris Madrid voiced favor with a $120 set-up charge to not have a smart meter and then $20 a month thereafter as its opt-out proposal. Given the 25-percent poverty rate, this is not a real option for many people. Please include in your statement what you feel would be a reasonable opt-out plan.
3. When the smart meter motion was made Aug. 27, 2019, between 30 and 40 business customers were automatically excluded at no charge. Please express an opinion on whether this shows favoritism to businesses over residential customers and whether it is an equitable application of city policy to make residents pay to opt out, but not businesses.
4. A few months ago I asked the new Commissioners if they would reconsider letting the smart-meter purchase go to a vote. The citizen-initiative ordinance was ignored and the special-election resolution was voted down. Have you worked on or investigated this issue?