Santa Paula: Water and Sewer Rate Increase Brings New Speakers and Issues


By Sheryl Hamlin

The November 6, 2019 Santa Paula City Council meeting brought new speakers to discuss the effects of rate increases. In a prepared statement, Mayor Garman said that Public Comments were not to be considered official “protests” until the proper form was filled and signed. A table was provided for this purpose in the room. Ballots were accepted until the end of the Public Hearing for this item.

Public Comments

Nine citizens spoke in Public Comments. Several speakers spoke in Spanish. There was no request for translation.

Larry Diamond reported on commercial property near the river having multiple meters: sewer, water and irrigation. One of his meters is a large, 1 ½” meter, whose costs double under the new scheme. His total bill before delivery of water will go to $2450 annually.

Gabriel Gill who lives on Telegraph and owns property on Peck said the city’s estimates of replacements were too frequent and he said the ballot and brochure were too complicated for low ability readers.

Doug Henning of SPUSD said the bill for the district’s 45 meters would go from $274,000 annually to $519,000 annually.

What is notable about these speakers is that they were making first time appearances about the rate increases and represented the first time commercial/industrial users spoke up about the negative effect of the rates.

After Public Comments, the Mayor closed the Public Hearing and the ballots were tallied.

Ballot Reporting

Tai Chau, city engineer, reported that 9750 notices were mailed greater than 45 days before the hearing representing 7505 active accounts. He said that 3,753 would be a majority.

The clerk reported 671 protests or 8% which was not enough to refute the rate increases.

Greg Clumpner said there were two previous rate studies his firm provided the city, but none enacted. Council Member Sobel reiterated the need to help low income residents. There was nothing discussed about commercial property reprieve.

A roll-call vote resulted in a 5-0 approval of the rates.

For official details of the rate study click here: Santa Paula Rate Study 2019.

Finance Director Report

In the Presentations section of the meeting, prior to any Public Hearings, the Finance Director presented an list of process improvements that will help customer service and reduce staff time. She also said that the Bond Financing Team was being formed, as well as hiring two accountants.

As part of the recommendation which was approved at the November 6, 2019 meeting, the 2010 $55 million Water Revenue bond issuance will be refinanced with bonds at a lower rate. The callable amount of the 2010 offering is $43.55 million which is theoretically the amount of refinancing bonds which can be issued. Presumably the Bond Financing Team will give a detailed report on this refinancing in the near future.

To watch the meeting, click here: Video

For more information on the author click here: sherylhamlin dot com


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2 Responses to Santa Paula: Water and Sewer Rate Increase Brings New Speakers and Issues

  1. Sheryl Hamlin November 13, 2019 at 7:27 am

    I frankly do not see how the huge increase for the larger water meters does not constitute a “tiered rate structure” which was shot down in the San Juan Capistrano case. If I were the commercial property owners who will be charged these onerous rates, I would get a prop 218 lawyer and see the options. Here is a good summary of the case:
    https://www.eastvalley.org/328/Tiered-Rate-Court-Decision
    16 hr ago

    Reply
  2. Sheryl Hamlin November 9, 2019 at 7:19 am

    The heavy handed approach to the commercial/industrial properties is matched by the spirit of anger against corporations which has erupted with the Split Roll tax proposal in 2020.

    Reply

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