Item 1 - Additional Material posted 1-9-19ADDITIONAL MATERIAL
Donna Goldsmith
From:
Michael Fry <mnfry@cox.net>
Sent:
Monday, January 7, 2019 10:30 PM
To:
Steve Vaus; Dave Grosch; Caylin Frank; Barry Leonard; John Mullin; Tina White; Donna
Goldsmith
Subject:
Water and Sewer Rate workshop
Attachments:
sewer deduct meter cities.txt
Dear Mayor and members of the City Council,
Once again, I am protesting the way Poway charges for sewer service. Poway's winter water use method fails when we
have a warm dry winter. Many cities throughout America have adopted a better method. I've attached a list of cities
with a total population of 5.5 million that allow sewer deduct water meters.
A sewer deduct water meter is a sub meter that measures water used for irrigation or other uses that do not go into the
sewer. This water is subtracted from the master water meter and the difference is used to calculate the sewer rate
charge. The customer still pays the full water rate charge from the master water meter. Only the sewer rate charge is
reduced by the sewer deduct meter.
An alternative sub meter is also allowed. It is called a sewer charge meter. It measures water that is 100% headed for
the sewer. In my case, my irrigation system connects to my water line before it enters my house. A sewer charge meter
on my house would be used to charge me for the sewer rate. My master water meter would be used to charge me for
the water commodity rate. You can only have one kind of sewer sub meter.
Poway already uses remote reading water meters in a few locations. Sub meters would also be a good use for that
remote technology.
In 2007, Poway's winter was very warm, and very dry. I measured only 4.66" of rain for that entire season. My wife
watered to keep our trees and landscaping alive, and we used extra water. We were switched from Tier 2 to Tier 4, and
the 3 year averaging method kept us in Tier 4 for 3 years[ When that happens again, it will cost us an extra $609.66
during the following 3 years. A sewer charge meter will completely solve that problem.
Another benefit of using sub meters is simplified billing. There is no need for tiered sewer rates or multi-year
averaging. All residential users will pay the same rate ($4.02/unit) as multi -family, schools, churches, mobile home
parks, and general commercial users. We will only pay for the water and sewer service we use.
It is time for change in Poway's sewer service. Millions of Americans have a choice. We deserve the same.
Mike Fry
Poway
1 of 6 January 8, 2019, Item # 1
Cities with sewer deduct water meters, State, Population
Nashville, TN, 684,410
Columbus, OH, 860,090
Mokena, IL, 18,740
Lower Makefield Township, PA, 32,742
McCandless Township, PA, 28,457
Findlay Township, PA, 5,761
Lebanon, OH, 20,033
Madison, WI, 252,551
Salem, MA, 43,132
Willoughby, OH, 22,268
Manchester, NH, 110,506
Warwick, RI, 80,871
Oklahoma City, OK, 638,367
Enfield, CT, 44,654
Redmond, WA, 62,458
Pickerington, OH, 20,402
Butler County, OH, 368,130
Newton, MA, 85,146
Cleveland, OH, 385,809
Middletown, OH, 48,694
Mascoutah, IL, 8,600
Holden, MA, 18,943
Wichita, KS, 382,368
Akron, OH, 199,110
James City County, VA, 67,009
New Lenox, IL, 26,217
Norwalk, IA, 10,896
Altoona, IA, 18,699
Gahanna, OH, 35,297
Lake County, OH, 230,041
Kent, WA, 92,411
Iowa City, IA, 67,862
Des Moines, IA, 203,433
St Augustine, FL, 14,280
Rochester, MI, 114,011
Mansfield, OH, 47,821
Amherst, OH, 12,021
Bloomington, IN, 78,005
2 of 6 January 8, 2019, Item # 1
Received
City CW" Office
JAN 0 8 2019
From: Chris and Larry Cruse,
13734 Utopia Rd city OfPoway
Poway, CA
To: Poway City Council
Re: Water and Sewer Rate Workshop, 1/08/2019
Mayor and Council members,
We are opposed to any increases to the water and sewer rates. There are several issues
that must be addressed first to make sure the rates are proportionate to the costs to
provide service to each parcel, and that the rates do not include other costs that are not
related to providing water and sewer service. Our particular objections and the reason for
those objections are listed below.
1.) Cost allocations. The city has added the costs of almost half of the legislative and
administrative department on to the water and sewer fund without providing a
study that shows that the administrative and legislative costs are related to
providing water and sewer service. In addition, the City is charging the water and
sewer funds for millions of dollars in cost allocations to fund regular general
service positions without providing a study to show that the costs are related to
providing water and sewer service.
2.) The City is not paying the full cost of providing water and sewer service to City
properties and facilities. Thus, the water and sewer ratepayers are paying the costs
not paid by the City as a tax on their bills. According to a staff document, it wasn't
until 2017 that the City began paying some of their own water use costs, but they
are only paying for water at the rate of raw water that is supplied to the City. The
City is not paying for the costs of treating the water they use in the parks, at the
pool, or at any city facility, or for the delivery of the water or for any of the
additional costs of water service. The City is not paying for any sewer costs. Prop
218 allows the City to bill us for the costs of water and sewer to our own parcel, but
it does not allow that we each pay a proportion of the costs to fill the city pool, or
water the parks, or flush the toilets in city buildings. Those costs should come from
the general fund of the City, not the water and sewer fund.
3.) In the past, the City has billed the sewer fund for the cost of litigation caused by a
faulty sewer map. The lawyer fees and the settlement expenses were added to our
sewer bills. The water and sewer ratepayers didn't do anything to deserve paying
those costs. It was human error on a map and more human errors or not solving the
problem swiftly and fairly that caused the Poway residents to sue because their
trees were removed from their private property. The sewer ratepayer should not
have been billed for this administrative error. Likewise, if there are administrative
issues that lead to a NPDES related suit, none of the legal fees related to that suit
should be charged to the water and sewer ratepayers. This is a general fund
expense. Just because Lake Poway water may have been polluted in the process
3 of 5 January 8, 2019, Item # 1
doesn't mean the water ratepayers should get dinged for paying the lawyer or any
settlement fees.
The new proposed rates are structured the same as the rates from this year and are
disproportionate to sewer use from each parcel. Single family homeowners should
be charged a uniform rate. The city will collect the same amount of money as it does
under the current structure, but it will be apportioned fairly, based on the use of
each property.
4.) Sewer Consumption Rate. The new proposed rates are structured the same as the
rates from this year and are disproportionate to sewer use from each parcel. Single
family homeowners should be charged a uniform rate. With a uniform rate, the City
will collect the same amount of money as it does under the current structure, but it
will be apportioned fairly, based on the use of each property.
The sewer rate for single family homes is not a rate. Every other category of sewer
user pays a real rate for sewer commodity use. Apartment owners, condo owners,
church, schools, businesses, industrial users all pay a real rate for sewer use. All
sewer users have a winter water use number which is configured by the city based
on previous use, and which the City says is a good approximation of their
consumption. All categories of sewer users are charged for their sewer use by
multiplying their winter water use number times their sewer rate. All, that is, except
for single family homes. They are each assigned a winter water use number but
they are not charged a rate. Instead, they are charged a tiered fixed fee for their
sewer consumption. When converted to a rate, single family homeowners are
currently paying from $28.61 per unit to $2.41 per unit. Unlike most tiered rates, in
Poway's sewer charge tiers, those who use the least water end up paying the highest
rates, and those who use the most water pay the lowest rates.
The rate between tiers is wildly disproportionate to use, as is the rate within the
tiers. In Tier 2, all users whose winter water use is between 6-12 units pay the
same charge, $50.48. This means that the customer that uses 12 units pays the same
consumption charge as a customer whose winter water use is half as much, only 6
units. Surely, it cost the city more to process 12 units of sewage than it does to
process 6 units, so the cost is not proportional to the use of each parcel. Apartments
and condo owners pay a true rate. They are sending their sewage through the same
pipes and to the same facilities as the sewage from single family homes. If one
apartment uses 12 units, they will pay twice as much for their sewage as an
apartment that uses 6 units. Why are single family rates different?
The new proposed rates are structured the same as the rates from this year and are
disproportionate to sewer use from each parcel. Single family homeowners should
be charged a uniform rate. The city will collect the same amount of money as it does
under the current structure, but it will be apportioned fairly, based on the use of
each property.
4 of 6 January 8, 2019, Item # 1
As a suggestion, the winter water use number should be a cap. If a resident uses
less water than their winter time water use number, they should only be charged
for the water they actually use in that period. They can't put more than that in the
sewer system in that period. It would be a fairer way to charge for sewer
consumption.
5.) Between 20 and 30 years ago, the City borrowed over $8 million from the water and
sewer funds that have not been paid back. These were inter -fund loans and should
have received annual interest equal to the average of what the city's investment
portfolio was making that year. The City used the loaned the money to their
redevelopment agency. The State is not allowing the City to tap tax increment funds
to pay back the loan at the full interest rate and in a timely manner, so, in turn, the
City isn't paying back the water and sewer funds at full interest They plan to pay it
back in 15-18 more years and with as little as 0.22 percent interest
The money was taken from the water and sewer funds without any public notice or
consent. In fact, there is no documentation or a date for b of the 7loans. If the City
does not pay back the loans in full, regardless of what the state will allow them to
do, then the council members have failed their fiduciary duty to the water and
sewer ratepayers. This is both a legal issue and a moral issue. If someone loans
money to you and you loan it to someone else, and that person does not repay the
loan, don't you still owe the person you borrowed it from? Lending money is always
a risk, but remember, the ratepayers did not lend the money, the City took it to
balance their budget. They did not make regular payments on the loans for 30 yrs.
Waiting another 15-18 yrs and paying interest of less than �/a of 1 percent on some
loans is not acceptable. The City needs to make an accounting of the loans with the
full interest and pay it back immediately.
To prevent something like this from happening again, the city needs to incorporate
some policies that keep water and sewer funds separate from other city funds. It
doesn't matter so much if the city borrows money from one general fund to another,
but borrowing from the water and sewer fund impacts the rates water and sewer
users pay. Some of the people who paid higher rates 20 and 30 years ago to finance
the loans are never going to get their money back. Some have passed away or
moved. Our sewer and water rates should not include costs for balancing the
general fund. Water and sewer funds should not be co -mingled with other general
funds.
After these issues are addressed, and the loaned money is returned to the water and sewer
funds, we can consider if there are insufficient money in the water and sewer funds and
increased rates are necessary to provide water and sewer service.
Sincerely,
Chris and Larry r silse�
5of 5
January 8, 2019, Item # 1