Workshop???

Seems like the only time I have to write any more is when I'm on the road...

I wanted to talk about the "effluent disposal" workshop a few weeks ago. I didn't go but I was able to watch it on tape recently.

Here are a few observations that really struck me.

In the first few minutes Scott Lee asked a direct question. "What is the operations and maintenance cost going to be when the new plant comes online?"

Hmmm...Bert Rapp:..."well, I don't want to guess"..."I don't have the proforma..."

Barbara Smith said "I'll get you copies of the official statement(bond documents). It's in there."

So, do you mean to tell me that Bert and Barbara don't know what the O & M is going to be? Do you mean to tell me that they have spent the last couple of years poring over the proforma to figure out what rates they were going to charge and they can't remember one of the most important line items? I've only looked at it a few times and I know what it is. It's also on the Prop 218 ballot that they held hearings on.

Of course, Glenn Hille, who can usually be so helpful in providing information, remained silent when he knows exactly what the O & M is. And weren't two members of the City Council Finance Committee and Sewer Subcommittee, Steve Conaway and Cecilia Cuevas, sitting there unwilling to give Scott Lee an honest answer?

tsk. tsk.

By the way, the answer is, our total operating costs are;

$ 1,200,000 in 2007
$ 7,000,000 in 2010
$ 10,000,000 in 2014

Can you hear that giant sucking sound?

~~~~~~~~~~~~~~~~~~~~~~~~

Scott Lee asked another direct question in response to Bert Rapp and Glenn Hille saying that new development is paying 43% of the capital costs from sewer developer impact fees.

Scott said; "Do you mean the whole sewer plant - and they're paying 43% and existing residents paid 63%?

They said yes.

How can that be? I hope someone out there will look into this. If we are paying $80 MM...then 43% would be $34.4 MM.

$ 80,000,000 = 100%
$ 34,400,000 = 43%
$ 45,600,000 = 57%

But it doesn't compute because currently sewer DIF's are about $12K per unit/permit. The presumption is that there will be 46 permits per year. That equals about $550k per year and over 20 years that's only $11 MM.

DIF $ 12,000
ERU/YR 46
DIF REV/YR $ 552,000
DIF REV/20 yrs $11,040,000

There was more but these were the most egregious comments.

Bless Scott Lee for trying. I invite anyone out there to tell me how development is paying 43% of the sewer plant costs. The residents of Fillmore are getting fleeced and forced to build a plant so much bigger than we need...but the sizing design flaws are for another day.