The San Lorenzo Valley Water District is headed for a busy year that is likely to include another round of hearings to increase water rates.
The district’s last year of a three-year rate increase went into effect in 2016, and the district’s board of directors – facing tough infrastructure needs and rising pension costs with a declining revenues because of successful conservation efforts – voted unanimously last month to seek bids for a rate study. This study of revenues, expenses, rate structures and water usage is the state of California’s required first step in determining new multi-year water rates.
The board pledged public forums and meetings to discuss its finances and rate structure in the months ahead. It is unlikely water rates could be increased much before the end of the year.
The board this month also resurrected a new version of the “campus” analysis that resulted in an explosive controversy three years ago, seeking proposals from architects to study whether the current offices and facilities are adequate for a staff it expects to grow this year.
The board agreed this month to unanimously hire a full-time human resources manager, in the $75,000 salary range. Last year, it had embraced a long range plan to increase its 26-member staff by 50 percent over several years, to better handle administration and services in the sprawling mountain district.
These studies are likely to be in the mix in the board’ consideration of the size of any package of water increases.
Directors already are getting some opposition.
A group that had led the fight against the initial rate proposal, which had initially included a new office campus, San Lorenzo Valley Watchdogs, has resurrected its Facebook page and joined ratepayers in opposition to the payment of legal bills for former director Terry Vierra, who a judge in December ruled had violated state conflict-of-interest laws when he was on the water district board in 2010.
The legal costs of a continued appeal of the Vierra case also are likely to be in the mix in any public discussion of water rate increases. The board already has paid over $70,000 in legal fees, and faces plaintiff legal bills, judgment fees, and continued legal fees if it continues to appeal the case.
Another wrinkle has been added to the legal fee issue, since the board’s Administrative Committee is proceeding on a 2016 mandate to review its corporate counsel contract. Request for proposals were sent out and a number of law firms submitted proposals to replace Marc Hynes, the longtime water district council who represent both Vierra and the water district in the proceedings. Hynes reportedly submitted a proposal, and the issue could come before the whole board this spring.
