VIB Presents

Highlights from Vallejo City Council

May 12, 2009

Water Rate Increase Sails Through—Lakes Water Customers Panic--Wilson Attacks Schivley—Gomes and Davis Swap Blows—Iowa State Assembly Proffers Support for USS IOWA

5/12/09

By Marc Garman

First Community Forum

Marilyn Wong and Bill Stevens spoke about the resolution approved by the Iowa State Senate to provide what Stevens described as, “unprecedented support at the state senate and gubernatorial level” regarding the potential placement of the USS Iowa at Mare Island. This is apparently the first time one state has put forth a resolution to help a city in another state with the placement and restoration of a historic vessel. Hopefully this resolution will be backed with some funding.

7.1—Urgency Item—seizure of city property taxes by the state

Mayor Davis used the “urgency provision” to place a letter on the agenda, from the League of California Cities, protesting the anticipated $2 billion property tax take back Governor Schwarzenegger is suggesting. California cities would be faced with a further chunk taken out of already decimated property tax revenues—a decrease in revenue Vallejo cannot afford.

Approved unanimously, Schivley absent

Water Rates going up—Rub a dub dub. Can't afford to fill my tub.

Council chambers were filled with 80-90 people. Many were residents of Green Valley, who are supplied with water from Vallejo's Lakes Water System. They face the greatest challenge.

Present to answer questions from the public were Water Superintendent Erik Nugteren, Public Works Director Gary Leach and a lawyer named Colentano.

Mayor Davis opened the water rate hearing with the reminder that “All written protests must be submitted to the City Clerk prior to the hearing closing.”

50% of ratepayers must protest in order to block an increase.

There were a little over 1000 protests in total. Not enough to make a dent. Many people complained that they were not made adequately aware of their right to protest and that the notification sent out by The City was both vague, nondescript and looked like junk mail. It was likely overlooked by many folks.

The rate increase itself is in two separate parts:

The City of Vallejo will get an increase of 6% per year for the next 5 years.

The Lakes System which supplies areas such as Old Cordelia and Green Valley will face a staggering 20% per year increase for 3 years followed by 7% and 7% for the two following years.

The difference in percentage increase is largely tied to California proposition 218. In simple terms, this proposition prevents the co-mingling of funds. You can only charge people fees for the service provided them. The Vallejo and Lakes/Green Valley water systems are separate entities. So, Vallejo pays for Vallejo, and cannot subsidize another system. Clearly, this is a double edged sword. People who are served by the Lakes water system must pay for their utility themselves. However, the decision to raise rates was made by the Vallejo City Council...a legislative body which people from Green Valley or Old Cordelia have little influence over, or the ability to cast a vote. Smacks of taxation without representation.

Water Superintendent Erik Nugteren gave a presentation on the increases stating, “We have to invest the money to keep our system intact.” A lot of references were made to the poor state of the roads in Vallejo and the danger inherent in allowing the water infrastructure to reach such a state of disrepair. Pictures of the Couch Street and Tennessee Street pipe breaks were displayed as part of a powerpoint presentation. Nugteren also indicated that Vallejo water rates fall more or less in the middle when compared to other cities in the Bay Area. He elaborated on employee salaries and the difficulty Vallejo has in retaining people at the water department.

He stated that water department employees are often lured away from Vallejo by higher wages. As a result the city has implemented a training program to try to improve retention. Unfortunately, it is illegal to require employees trained in Vallejo to stay. It may be possible to offer incentives though, and this might be worth looking into.

The one bright point of the rate increase is the fact that contractors are desperate for work and have lowered their prices considerably. This means the taxpayers will get more bang for their buck if we make capitol improvements sooner rather than later.

With regards to federal stimulus monies, it seems that the majority of the assistance available is in the form of low interest loans for “shovel ready projects”. Not much help there.

Public Comment

Accountant and Financial Advisor J.D. Miller asked the question, “Wouldn't decreasing water rates make Vallejo better?” Miller brought up the plight of retirees and those on fixed incomes and suggested that a decrease in rates would “put money in the hands of people who need it and would spend it.”

Miller also suggested that Vallejo consider privatizing its water department. He referred to the generous pensions water department employees get...often 80% of their pay. Private employees get much less generous benefits, perhaps resulting in a net savings.

Conversely, the fact that a private service provider is guaranteed a profit ( usually around 8%) by the California Public Utilities Commission (CALPUC) would tilt the scale in the other direction. Also, CALPUC would take over the decision making capacity now afforded the city council. They would be in charge of the Water Department and would be able to impose increases etc.

Bill Mabin of the Green Valley Land Owners' Association spoke of the staggering $500 to $800 water bills facing many Lakes customers. “ We're asking for more than just the operation of our system and a bill.” he said continuing to add that, “We haven't heard any discussion of solutions or ideas. We deserve a fair shake”

Pat Howard, who lives just down the street from Lake Curry asked why the lake wasn't being used as a water source and continued to call the protest structure “unfair'

It was suggested that residents of Green Valley etc. should consider seeking an entity to purchase their water system.

Other comments included words and remarks such as: not a fair or practical rate—hardship--ludicrous--ridiculous--inhumane--extremely alarmed—water is life—crippling burden to homeowners—sell our homes?--

Speaking of selling things...Sam Kurshan suggested bottling and selling Vallejo water. He cited the high quality of our water.

In a later reply to Kurshan, Superintendent Nugteren admitted that he has a hard time seeing bottled water as a viable option for Vallejo. Considering the competition and a need for marketing there would be some obstacles. Nugteren indicated he was open to ideas though.

Other brands of bottled water show a deer drinking from a pure mountain stream or The Alps or whatever. That's all been done to death. And it's BORING. We need to be different !!!!! And exciting !!!

Vallejo needs to embrace its status as the hip-hop capital of Northern California...

SO

Here's the Concept that will Sell Vallejo's water for Big Bucks !!!

Hip Hop Hydration

Snizzle Drizzle---basic bottled water

Crunk Squirt---flavored water in a sports bottle

Manizzle Fizzle---The carbonated version

We feel these are hot marketing concepts that just can't lose. Expect to see logo and bottle designs in the very near future. Basically water is water, but by targeting an untapped market segment, Vallejo can dominate the world of hydration. Let's get busy !!! Viva Vallejo !!!!!

Councilmember Sunga says he wholeheartedly supports a bottled water concept for Vallejo. You Go Hermie !!!

But I digress...And now on to comments from city council and the real fun. Fun in the Osby Springer tradition.

Council Remarks--Trading Blows and other non-sequiturs

Channeling Bill Clinton, councilmember Hannigan stated, “I feel the pain that the lakes property owners are feeling at this time.” I don't know if this was much consolation as she followed it with the brilliant insight, “Last time I checked, water was free!” And this after a half hour+ long presentation by water superintendent Nugteren regarding the immense costs of piping, treatment and employees. At $34 million, the water department is Vallejo's largest enterprise.

Then Mayor Davis suggested that “The easy vote is to vote no, the responsible vote has to be to vote for it.” and that “We have to pay for what we use.” he illicited a strong response from councilmember Gomes who felt that the mayor was unfairly attempting to “put a qualifier on everyone's vote”.

Gomes had indicated she would vote no, and had read a letter from councilmember Schivley who was home sick, in which Schivley stated “If I were there, my vote would be no.”

Davis backpedaled, did a fast tactical duck and cover by indicating that “the comment was for me.” and that he did not intend to cast dispersion on a differing opinion.

Things got interesting when Michael Wilson opened his mouth. Wilson attacked Schivley calling Gomes' reading of the letter from her “totally inappropriate” and continued to trade blows with Gomes  “I didn't see her light go on” said Gomes after Wilson accused her of casting a vote for Schivley. Nice Mikey. Attack the lady when she's down. Wilson showed a complete lack of graciousness. Mayor Davis finally had to step in and break up the squabble calling for order. It really was pretty ugly.

In public comment the newly self appointed watchdog for bad behavior at council, Sam Kurshan dug into Wilson.

Kurshan proclaimed that Wilson had used the meeting as a “personal sniping platform” and continued to add, “Tonight you have shown us your absolute worst. You owe the public an apology as well as councilmember Schivley. Shame on you Michael !!!”

I don't think I have ever seen a councilmember dart out the back door as quickly or stealthily as Wilson did after the drubbing. Zip !!!

The rate hike was approved 5-1 Gomes opposed, Schivley absent.

A resident of Green Valley could be heard saying, “God help us.” as she exited the council chambers.

Some thoughts on Power

Why did Wilson jump on Schivley in a way that made him look so obviously petty and mean? Aside from Kurshan, several members of the audience were making noises of disapproval when he was on his little tirade. It was such an obviously inappropriate move.

The answer is power. The four fundeds plus Osby have squeezed out City Manager Tanner and they feel powerful. Some people can handle power. Others get dizzy at the slightest whiff. Sometimes those who desire something with the greatest hunger are least able to control themselves. Let's just call it an interesting tell.