Points raised by the public for delaying the project for more planning and until a new board is seated were ignored.
The base rate for the water utility will go to $15.50 a month on April 1. The current $8.15 base rate doesn’t include any water, but the new base rate includes 2,000 gallons.
Customers will pay $2.71 for each 1,000 gallons they consume over the 2,000 gallons up to 7,000 gallons, up from $1.75. At higher tiers the 1,000 gallon rate increases, from $3.07 to $3.45 to $3.88 and $4.33.
Madrid and City Attorney Jay Rubin claimed “three public hearings” had been held before the Feb. 26 public hearing.
It is unfair to characterize the three town halls as public hearings. They were not in front of elected officials and no City staff reported the public input to the City Commission, making them empty exercises. The Sierra County Sun made a records request for all documents relaying public input to the City Commission, which came back as “no such documents exist.”
Madrid said “rate experts, engineers and City staff were available to answer questions” during the town halls, but the vast majority of the questions went unanswered, were ignored or were said to be off-point.
For example, Ron Fenn, who is running for City Commission Seat 5, tried to question whether water meters would be replaced by smart meters. Madrid said it “wasn’t being contemplated,” and cut his comments short.
However, at the Feb. 24 Public Utility Advisory Board meeting and the Feb. 26 City Commission meeting, Madrid informed the boards water meters will be replaced, avoiding the term “smart meter,” leaving the public to wonder.
The community has shown it is virulently opposed to smart meters due to the spiking magnetic radiation they give off and the need to spend money on fixing the infrastructure. At the last City Commission meeting, the board refused to hold a special election on installing smart meters, despite being presented with a certified petition and citizens’ initiative ordinance banning smart meters for 10 years.
At the Feb. 26 meeting, Madrid misled the City Commission about public input at the town halls, claiming an amendment to the ordinance’s rate structure was made to address residents’ “concerns.”
He said the public was concerned over the “base rate being too high” and that “higher-consumption users should pay more” and that the rates should encourage conservation of water. The public said nothing about those issues.
Madrid was truthful in stating the public was concerned about water-fee revenue being transferred into the general fund instead of back into the utility. Instead of stopping the transfers, Madrid said they will “gradually go to zero in a five-year period.”
Six residents spoke during the only public hearing, Feb. 26. All were in opposition to the ordinance. Their concerns were given short shrift by Madrid and the City Commission in subsequent discussion before the vote on the rate hike.
Jack Noel said he opposed the ordinance, although he agreed a rate increase is needed, because it was being “rushed through before the election,” and “the city manager has an agenda to get this through.” He pointed out the water-rate study numbers and the engineering study numbers have been disputed and left unsettled.
“We’re still arguing whether there is a 47 percent versus a 12 percent leakage” in the water pipes, Noel said.
Noel revealed Madrid’s agenda includes smart meters. Noel spoke with one of the bidders on the electric smart-meter project, “who said it was clear the City staff wanted smart meters” not only for the electric customers, but also for the water customers, “which compounds the problem you’ve enraged this community with.”
“We need to stand back and wait for the new commission and for a long-term 20-to-30 year plan,” Noel said.
Sophia Peron, who is running for City Commission Seat 4, said the $9.4-million water project and water-rate ordinance needed to be delayed not only until the election is over, but also “until after the census.” She believes the population will have decreased much lower than 6,000 people and the few may not be able to pay for the project through rate increases.
“Stop pulling these power moves,” Peron said. “We have no money. We spent $39 million on the hospital.”
Rick Dumiak noted how uncertain the numbers are and how little the project has been vetted. “What is the $9.4 million going to repair,” he asked, alluding to Wilson & Company’s revelation on February 22 that only 11,000, not 22,000 linear feet of pipe will be replaced for $6 million.
The rate study assumes each customer will use about 6,000 gallons a month, Dumiak said, which Fenn pointed out is about three times the national average. If the engineering is “skewed” toward delivering that volume of water, “how important is that?” he asked.
“And what guarantee is there the money will not be put in the general fund again,” Dumiak asked.
He too wanted to wait for a new commission and more study.
Ariel Dougherty said the fact water rates haven’t been raised for 13 years showed “negligence on the part of commissioners” and that they “weren’t paying attention.”
They are considering a rate structure different from the published ordinance, Dougherty said, “therefore it’s confusing to the public what is being approved.”
Many people brought up the inequity of residents paying as much as businesses during the town halls. Downtown business owners will mostly benefit from the project, since it will replace pipes downtown. “There is no commercial rate in the ordinance,” Dougherty said, “which is a disservice to the community. The grant and loan will help the downtown.”
“And there is a serious lack of listening to citizens,” Dougherty said. “The process is backward. There should be public discussion and then the ordinance should be written based on public discussion.”
Audon Trujillo said the water project “was not contemplated in the comprehensive plan,” which should have been updated in October 2019, but wasn’t. He noted neither water nor parks were in the plan, yet the city is taking on big projects in both departments.
Ron Fenn said he opposed the ordinance because rate increases can’t cover the massive infrastructure repair cost. The 11,000 linear feet are “2.8 percent of the water system lines,” which will cost $6 million, while $3 million will fix the Cook Street chlorination system and tank. Yet rates are doubling for this small portion, he said.
He recommended doing a master plan and “then looking at funding from $200 to $300 million in water-line replacement over 35 years.” Fenn said that estimate assumed 2.8 percent of water-line replacement a year, a 3-percent inflation rate on construction costs and the city receiving 40 percent in grants.
“We can’t do this with water rates,” Fenn said.
During the City Commission’s discussion, City Commissioner George Szigeti praised the PUAB for coming up with “an astute amendment” to the published ordinance, referring to the $15.50 base rate and other rate increases.
This was misplaced praise and demonstrated how little informed the City Commission was by Madrid. Madrid and Karl Pennock sprung the amendment on the PUAB during the Feb. 24 meeting, with two members resisting taking action on it for that reason.
Pennock, employed by the Rural Community Assistance Corporation, is a subcontractor of the U.S. Department of Agriculture, which is giving the city the $9.4-million grant/loan. The RCAC’s job is to make sure the City can pay back the loan, as well as maintain the water utility, so the federal government isn’t wasting its money.
Szigeti and Madrid’s response to residents’ concerns over lack of long-term planning was to recite platitudes. “This is just a step we need to take,” Szigeti said. Madrid urged the City Commission not to “kick the can down the road.”
Mayor Pro Tem Kathy Clark also praised the PUAB for its “brilliant recommendation.”
She addressed two of Dougherty’s points to a small degree. Clark asked Water and Sewer Department Director Jesse Cole if the water lines downtown feed into residential lines on side streets and Cole said they did, implying the project will not just benefit downtown business owners.
Clark also got Madrid to state subsequent rate increases, starting July 2021, will not be 3 percent, but will mirror the Consumer Price Index. Dougherty pointed out 40 percent of town residents live on Social Security, which is tied to the CPI.
City Commissioner Rolph Hechler asserted the rate hike and project should be decided by the current board because it has more experience than the incoming board.
Mayor Sandra Whitehead seemed to miss the public’s and board’s opposition altogether, proclaiming “The City Commission and community will continue to work together.”
The City Commission then voted on the rate increase, passing it unanimously.