LAKEPORT, Calif. – After more than two hours of hearing from city residents opposed to rate increases, followed by a discussion of the city's needs for improved infrastructure, the Lakeport City Council voted Tuesday night to increase city water and sewer rates 100 percent over the next five years.
The council unanimously approved a resolution certifying the results of the protest hearing the council held at its Sept. 18 meeting before voting on two resolutions, one modifying water rates, the other sewer. Each of those latter resolutions passed 4-1, with Councilman Tom Engstrom the lone dissenter.
Between 40 and 50 people were in attendance at Tuesday night's meeting, about half the number who had packed the chamber for the council's first hearing on the rates last month.
Based on the city's proposal, the bill for a month of water service at a residence with a basic 3/4-inch water connection and up to 1,000 cubic feet of water would rise from $17.45 per month to $34.85 by January 2017, with a 1-inch pipe with up to 2,000 cubic feet increasing from $34.87 per month to $69.70 in that same time frame.
Also over the five-year period, sewer customers in the north part of the city would see their rates go from $35.41 per month to $74.25; rates for customers in the south would grow from $46.79 to $74.25.
Approximately 618 validated written protests had been submitted to the city, just over half of the 1,216 needed to have stopped the rates according to state law.
City residents who spoke at the Tuesday night meeting – some of them having spoken at the last meeting, some newcomers who brought new concerns and perspectives – asked council members to step back, reevaluate the projects the rates would help fund and come up with an alternate plan.
The essential message coming from residents was, “Not right now,” especially in light of a still rough economy where people continue to struggle financially.
On the other end was the council, who heard from numerous people that council members up for reelection this November could expect to be challenged as a result of the rates.
The council majority held that the needed projects had been put off for too long, putting the city into the position of needing to act or else face budget-breaking fines from the state.
“Part of the reason we're running in the red is that no one has had the courage to plan for the future,” said Mayor Stacey Mattina.
Utilities Director Mark Brannigan said the rate hike proposal had been formed by the city staff with the help of experienced consultants.
He said he wanted the public involved in the process, wanting them to take part in identifying the challenges. Since the Sept. 18 meeting he said he and other city staff had spent time trying to answer questions from community members.
Brannigan said the city needed enough revenues to pay its bills every month. Due to budget cuts and lack of revenue, the city has been placed in a reactive mode. The city is applying for grant funding to complete needed infrastructure projects mandated by the state after the city had a sewer spill several years ago.
“We knew it was going to be a difficult hill to climb but it's in the best interest of the ratepayers of the city of Lakeport in the long run,” Brannigan said.
The rate increase, paired with grant funds the city hopes to receive from the United State Department of Agriculture Rural Development, won't cover all system needs, such as new water wells, he explained.
Engstrom asked what would happen if the county refused to let the city have an encroachment permit for a water main loop along S. Main Street, one of 10 water and sewer projects the city intends to complete.
“If it gets to the point where we're just hitting roadblocks, then we need to start looking at other alternatives,” Brannigan replied.
During the discussion City Manager Margaret Silveira said the city has right to improve its water system without receiving the county's permission.
Community asks for reconsideration
Approximately 21 people went before the council on Tuesday night, with several of them deferring their time to speakers including Marc Spillman and Bob Bridges. Only one person, Charles Witt, spoke in favor of the increases, acknowledging that improvements needed to be made.
Arlin Pischke, a former Lakeport councilman, warned against the increases, suggesting the city was biting off “a big, big chunk” in the midst of what he said is probably a depression.
He urged them to listen to the community, which doesn't have a lot of wealth. “Take it in smaller steps.”
Pischke encouraged the council to do what it could to fill up the 58 empty commercial buildings in the city. He said the two members up for reelection this year – Suzanne Lyons and Bob Rumfelt – could count on his opposition if they voted for doubling rates.
Bridges, one of the community's most vocal opponents of the increase, said he saw tears and fright in peoples' faces when he walked door to door to talk to residents about the increases.
While he appreciated suggestions about the potential for removing some projects – like not installing new water meters citywide – to save money, “I think there's a lot more toning down that can be done,” Bridges said.
He said he would volunteer to serve on a citizens committee. Brannigan had reported at the last meeting that when the city had tried a few years ago to set up such a group, only one person – who wasn't a city resident – showed any interest.
Bridges wanted the city to sit down, rethink and reprioritize. “It's apparent that this is going to cause great pain.” He added that he felt the city needed a small raise to help its situation.
Likewise, Verna Schaffer urged the council to go back to the drawing board and get a citizens' committee organized.
“There is no easy solution and our economy is really, really failing,” she said.
Schaffer said she was certain an increase was needed, but not to the extent the city was proposing.
Liz Callahan worried that increasing water bills would impact her enjoyment of her yard, flowers and swimming pool. Rather than traveling to Europe, she stays home and enjoys her pool, which friends and neighbors also share. Her monthly water bill already is more than $200.
She warned that the increased would lead to dying lawns and trees. “People won't want to come to Lake County,” she said. “They won't want to come to Lakeport. They won't want to come to the Lake.”
Dave Norris asked city staff if they based their income projections for the new rates on current usage or usage that reflected more conservation. Finance Manager Dan Buffalo said the projections were based on the assumption that usage would stay the same. He said the city estimated that the average household used 900 cubic feet per month.
Chris Macedo asked about the last time the city raised rates. Brannigan said the last Consumer Price Index-based increase was in 2011 for sewer rates.
Macedo also quizzed the council and staff about how long they've known about the city's water and sewer system problems. Brannigan said it's been an ongoing issue.
In turn, Macedo asked why, if the city had known about the problems for some time, that gradual increases hadn't been made.
“This is all about money,” said Macedo, referring to the city's desire to incorporate the S. Main Street corridor.
Mary Kay Hauptman said the city could achieve a lot with conservation and a community study group, adding, “You definitely have our attention.”
Kim Beall told council members she had voted for them but, “Frankly, I think your job sucks.”
“So do we,” replied Councilman Roy Parmentier.
Charles Witt said the city needed repairs, admitting he hasn't stood up for the city much in the past. “If we don't pay it today, we will pay it tomorrow,” he said.
Keith Kirsch urged the council to get rid of the proposal to install new water meters, saying it was less expensive to employ a city staffer to do the work, and that ratepayers also benefited by having a live person who could determine if leaks were taking place. He said the city would save about $800,000.
Council not unanimous in support
When the discussion came back to the council, Engstrom pointed out, “In my 40 years in public service, what's happening here is typical,” explaining that people usually don't come to meetings unless there is something affecting them directly.
“Unfortunately, we've been privy to a lot of information over many months that you don't have,” Engstrom told the audience.
He said he was having a hard time making a decision that will face the community long after he's dead, with the city expected to have to pay back loans for the projects over a 40-year period.
Staff told Engstrom that the council needed to pass the resolutions implementing the rate hikes in order to be considered for the grant funding.
“So that's the kicker,” Engstrom said. “That's why we're under the gun.”
Brannigan said the resolutions would demonstrate the city's ability to pay back the loan.
Parmentier suggested not pursuing the water meters. At the same time he told community members in the audience that putting the projects off would cost the city more in the long run.
He said he would rather not pay $10,000 a day fines to the state – which the city could potentially face if it's not in compliance with state law – and instead put those funds into local infrastructure projects. “Your infrastructure, not ours,” he told the audience.
Rumfelt said the conversation about raising the rates had been going on for five or six years, and people have threatened the council before.
He said he would like to be reelected in November, but he was prepared to risk being voted out in order to see the system receive the needed improvements.
Rumfelt said he hoped the council would do what was right. If he didn't get reelected, Rumfelt said he would at least be able to flush his toilet and get a glass of water.
“It's not as if the people who sit up here haven't been paying attention or don't know what they're talking about,” said Lyons. She noted she had driven staff crazy getting information and learning about the system's needs, concluding, “I'm with you, Bob.”
Mattina agreed it was an “extremely painful” decision, but better than the alternative. “In five years, all of these projects will cost far more and we will have paid so many fines.”
Silveira told the council that if the water meters were removed from the projects list, the city risked not getting the federal grants. She suggested the council leave the meters on the list, removing them later if the funding didn't come through.
Rumfelt moved all of the resolutions, with a 5-0 vote on the protest hearing results and the 4-1 votes – with Engstrom voting no – on the separate resolutions to raise water and sewer rates.
After the votes, audience members got up to leave but Rumfelt asked them to stay for the next item, and several did. That subsequent discussion involved replacing a granular activated carbon filter used in the city's treatment of lake water, with the equipment not to exceed $60,000.
Buffalo told the council that paying for the project would use up the rest of the city water fund reserves.
Brannigan said the taste of the system's water would be “significantly different” without the treatment.
Macedo asked if the city could use redevelopment money for the treatment. Rumfelt said the city would still have to pay back those funds.
Beall told the council that if they had decided to upgrade the system, “You might as well have it taste good,” she said of the water.
Parmentier, who pointed out that he was not running for reelection, moved to approve the purchase, initially saying that the amount was not to exceed $60 million rather than $60,000. He said he was just checking to make sure people were paying attention.
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