Council Adopts Five-Year Rates on Second Reading of the Ordinance

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It did not end at 3:30 am, and it did not have a long line of public comments. In fact, no one from the public spoke, but on Tuesday night, the council took the next step in raising residents’ water rates by adopting a five-year plan of rate increases and pledging to return next year in order to pass the sixth year.

The rate hikes were approved with a 3-1 vote in Councilmember Dan Wolk’s absence, Councilmember Sue Greenwald dissenting.

Councilmember Greenwald once again expressed disappointment that the council did not at least second her motion to look into getting a variance from the state in order to delay the necessity of the project to give the city more flexibility as it works out the costs of the project.

“I think it’s critical to get as much flexibility as we can, because how can it hurt?” the Councilmember said on Tuesday night.

She reiterated her concerns about the serious fiscal costs to the city and its citizens.  She pointed out that, while all the councilmembers make well above median income, the typical resident would have far more trouble making ends meet.

Mayor Joe Krovoza, for the first time, acknowledged that he would not be opposed to the city seeking a variance as it looks to all options to keep the costs down.  However, he said he did not want to distort the message from that night and distract from the ultimate decision by the council to pursue the water project.

Tonight the city hosts a Water Forum at the Community Chambers from 7 to 9 pm “to share information about the City Council’s recent action on water rates, and how rate revenues will be used to develop a safe and reliable water source for current and future water users.”

According to the city, “The Forum will provide an opportunity to learn more about the City’s plans and to ask questions of City staff and other professionals responsible for water supply and reliability in Davis. The two-hour session will consist of a presentation about the surface water project, an explanation of the City Council’s recent actions related to the water rates, and a chance for questions and answers.”

The press release added, “The regional surface water project is being designed to largely replace Davis’ deteriorating groundwater supplies with safe, more reliable surface water supplies from the Sacramento River. The goals of the project include provision of a new water supply to meet existing and future needs, improve drinking water quality and improve the quality of treated wastewater.”

Mayor Krovoza sent out a blast-email yesterday in which he said, “One topic critical to our community looms large: our future water supply.  I can’t image a more complex issue for us to be tackling for our collective future.  While our historically-low water rates will increase to the average of other cities in our region, please learn why before rushing to judgment.”

He adds: “In short, we are wasting precious dollars now fixing a dated groundwater system that can’t sustain us, near-term expenses are looming if we don’t act on a long-term solution, and financing and construction cost are absolutely ideal now.  I firmly believe that the best decision to protect ratepayers is advancement of the new surface water supply project at this time.”

He concluded, “I have studied this project since my election and I sit on the Woodland-Davis Clean Water Agency’s board.  You have my word that this is a wise and prudent course for Davis.”

However, Councilmember Greenwald said that Mr. Krovoza’s characterization that our water rates will increase to the average of other cities in our region is “dead wrong.”

She said, “Both our water rates and our combined water/wastewater/garbage rates will be BY FAR the highest in the region. They will also be very high by statewide standards.”

“Our water/wastewater/garbage rates will even be substantially higher than those of San Diego, an example of ‘really high rates’ that has often been raised. And San Diego has minimal heating/air conditioning costs and no school and city supplementary taxes,” she added.

At the meeting last night, one of the issues that came up was where the city stood with respect to Woodland on the Prop 218 notification.  It was acknowledged that once the council passed the Prop 218 rate hikes (which they did last night), the city would be ahead of Woodland.

Woodland still needs to raise rates another 80% in order to finance their portion of the project.

In an article in the Bee two weeks ago, Woodland City Manager Mark Deven said that they would be raising their rates after Davis okays its plan.

The Woodland City Manager took some shots at Davis, as he said that “he doesn’t expect anything like the fight that consumed Davis in recent weeks.”

“Our City Council has done a more effective job of working with the community and staying together on this process,” Mr. Deven said.

The article continued, “He predicted some residents would express concerns about future rate increases but said, ‘There will not be contention among our council members.’ “

Davis and Woodland are, of course, different.  What the Woodland City Manager does not appreciate is that, while the council and city could have done a better job of communication, it would not have prevented the contentiousness of the issue.

That is just Davis being the engaged and vital community that it is.

I have to wonder how the working class people of Woodland are going to be able to afford this increase, and who is looking after their interests.

—David M. Greenwald reporting

Author

  • David Greenwald

    Greenwald is the founder, editor, and executive director of the Davis Vanguard. He founded the Vanguard in 2006. David Greenwald moved to Davis in 1996 to attend Graduate School at UC Davis in Political Science. He lives in South Davis with his wife Cecilia Escamilla Greenwald and three children.

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Budget/Fiscal

27 comments

  1. [quote]”Our water/wastewater/garbage rates will even be substantially higher than those of San Diego, an example of ‘really high rates’ that has often been raised. And San Diego has minimal heating/air conditioning costs and no school and city supplementary taxes,” she added.[/quote]

    Yet San Diego chose to fix its water problems some time ago and is now reaping the benefits of that wise decision – and some in Davis want to keep putting off the inevitable. Perhaps San Diego was wiser…

    [quote]I have to wonder how the working class people of Woodland are going to be able to afford this increase, and who is looking after their interests.[/quote]

    Are you implying that the Woodland City Council is not looking after the interests of its “working class” citizens?

  2. I am supporting the referendum because I think that large projects and rate hikes like this one should be submitted to the voters. One more thing comes to mind: the Prop 218 “election” (as Steve Souza likes to call it) completely omitted renters from “voting” on the “ballot.” So the large numbers of student and other renters in town are going to be hit with these huge rate increases via pass throughs in leases, or just plain higher rents, and no one asked them.

    I think all voters in town should be able to vote on the June 2012 election ballot.

    The referendum committee will be around town with the petitions for you to sign if you want to be able to vote on these hikes.

  3. Mr. Harrington,

    When will the signature drive begin?

    “So the large numbers of student and other renters in town are going to be hit with these huge rate increases via pass throughs in leases, or just plain higher rents, and no one asked them.”

    Many bloggers on here argued that renters had the right to vote on the school bond measure because it could possibly effect them monetarily, so why shouldn’t they also have the right to vote on the water project?

  4. [i]”And San Diego has minimal heating/air conditioning costs …”[/i]

    I went to graduate school at UCSD, which has almost perfect weather. I thought my 5 years living in Isla Vista (UCSB) were climatically ideal, until I moved to La Jolla.

    That said, if you get just a mile away from the Ocean, San Diego much of the year is hot. I am not sure if most people in San Diego have HVAC costs greater than most people in Davis have, but I am sure most San Diegans have higher AC needs. In El Cajon and Santee and La Mesa, it’s not uncommon for it to be 95 degrees or hotter in mid-November. On the same day when it’s baking out in the desert, from Coronado to La Jolla along the beach, it will be 75-80 degrees with a mild breeze. Not surprisingly, with the exception of a few neighborhoods here and there, the rich people tend to live in the temperate beach communities and everyone else tends to live in the hot zone.

    [img]http://www.sandiego.gov/citycouncil/graphics/map.gif[/img]

  5. “Mayor Joe Krovoza, for the first time, acknowledged that he would not be opposed to the city seeking a variance as it looks to all options to keep the costs down.”

    Krovoza’s public “throw-away line” about accepting the possibility of seeking a variance coupled with staff’s reply, to most -likely a set-up question from Councilperson Swanson, during which he had difficulty keeping a “straight face” while confirming that a variance would be an option in the future if “appropriate” was obvious in its intent to take the air out of the upcoming referendum signature-gathering with meaningless rhetoric. As Councilperson Greenwald quickly pointed out, seeking this variance requires vigorous early proactive contact with the appropriate agencies who have “invited” those who seek a variance to come forward and shape the “scope’ of the considerations. The upcoming referendum and following initiative is the only path towards a vigorous legitimate effort by this Council and staff to seek a variance if they wish to keep this project “alive” for the future.

  6. “in fact, no one from the public spoke…”

    Wasting one’s breath at public comment last evening would have been a futile exercise. issue. The effort now is to organize the volunteers that have come forward to work on this signature-gathering campaign. Both sides have made their case and refuted the other’s ad nauseum. Now, let the signature-gathering campaign begin to give Davis voters a direct voice in the future of this project.

  7. Re Musser’s questioning David re whether he is implying that the “working class” of Woodland may not have anyone especially looking out for their interests, let me address her question. To begin with, not since moving to Davis in 2000 can I recall us having a council majority who was, on many issues, at bottom, really concerned about the working class of Davis. Yet Davis is, relatively speaking, as David says, an engaged community. But that does not always, or usually, translate into a council majority whose primary concern is working class interests for a host of reasons, any more than an Obama victory has resulted in the working class and the unions being the top priority of this administration.

    Let’s be realistic and honest: in a country where not much more than 50% of registered voters turn out for even presidential elections, there is usually mass apathy and ignorance of local politics in most American communities, and Woodland is no exception.

    How many people in Woodland even know about the project, let alone the huge increase in their water rates that the project will entail??? Just try looking at the Daily Democrat online and you will hardly see a full discussion and debate about the issue there? Maybe my search was to quick, but I could hardly find a single letter to the newspapers pro or con the project. (Someone show me my research was too brief). I think this reflects both apathy and ignorance and not assent to the water project. It is an apathy that the Woodland Council is only too happy to take advantage of and which the majority of the Davis CC would love to have.

  8. “He said he would propose another budget next year that again offered the Legislature a choice between raising taxes or imposing more cuts, in the belief that at some point, voter backlash to reductions would push some Republicans to act on taxes.

    “I mean, how much less school do you want?” he said. “

    (above..from a recent interview with Gov. Brown)

    This is what we are most-likely looking at for the near future. We will,most likely, need MORE local voter support for our schools to maintain our education system which has been the main item in supporting Davis home values. Leaving enough money in voter’s pockets to support our educations system as it is being slowly starved to death from Sacramento IS the priority.

  9. Here’s another strong reason for the local business commmunity to promote putting the referendum on the June 2012 ballot.

    I understand that many Davis apartment complexes are unable to pass on the rate hikes to renters because the apt pricing is very competitive today. (Think, 100s of new apts at UCD West, across Hwy 113.) This means that the rate hikes basically go into “fixed costs” to the owners, and that means net profits go down. So owners of apartment complexes in town should be very motivated to get these rate hikes on the ballot so all concerned can properly evaluate the merits of the project after each side has fully presented its democratic rights to campaign.

  10. [b]Toad:[/b]Non-family households include both unmarried people living together and single person households.

    Single person households constitute 27% of households nation-wide. Many, of course, are elderly on fixed incomes.

    Additionally, almost 40% of UC Davis students are Pell grant students from low and moderate income households.

    Toad, non-family households are equally important.

  11. Michael,

    Do you know if UCD is expanding enrollment to “consume” the new apartments?

    Don,

    I tend to think it will be difficult for the landlords to pass the water rate increase along, particularly if as many have suggested, these student renters are not as aware or engaged in the dialog concerning the water rate hikes and the landlords are unable to convince the students that the students should pay more because the landlord’s costs are going up.

  12. Rich Rifkin: On San Diego weather — someone else brought that up as well. The staff member I spoke with agreed that heating and air conditioning costs were very low, but that might pertain only to parts of San Diego. (I still suspect ours are higher due to both very hot summers and cold winters).

    That said, there is no doubt that the high water rate areas are mostly on the coast, and most of the coast has very low heating/air conditioning costs.

    In the end, it is cumulative costs that count, and we will have higher than average water costs, high waste water costs, high heating/air conditioning costs and high supplementary taxes. The package is going to be quite noticeable on a state-wide comparative basis.

  13. Median home prices July 2011

    San Diego $320,000
    Davis $470,000
    Woodland $205,000

    Looks like the cost of living is under greater pressure in Davis from the cost of housing instead of water. Yet it seems that the no growth crowd has never been concerned about the effects of restricting growth on the cost of living. Why the crocodile tears? Could it be that water development allows other development? If you were really concerned about the cost of living in Davis you would have a history of at least trying to moderate the outrageous prices for homes that growth restrictions have fostered. But no, all of a sudden this concern about water costs. Please! At least the Taxpayers association is consistent.

  14. [quote]It is an apathy that the Woodland Council is only too happy to take advantage of and which the majority of the Davis CC would love to have.[/quote]

    I think you are assuming an apathy that very well might not be there. According to a source I know, the water rate increases are a hot topic in Woodland. I think there is a very elitist attitude by some in Davis towards Woodland folks that is unwarranted… just my opinion.

  15. newshound:[i] Michael,
    Do you know if UCD is expanding enrollment to “consume” the new apartments? [/i]

    West Village doesn’t even cover the enrollment increase of the last decade. UCD expects to expand enrollment by about 5000 students and 300 faculty in the next five years (see today’s Enterprise).

    [i]Don,
    I tend to think it will be difficult for the landlords to pass the water rate increase along, particularly if as many have suggested, these student renters are not as aware or engaged in the dialog concerning the water rate hikes and the landlords are unable to convince the students that the students should pay more because the landlord’s costs are going up.[/i]

    Then surely the renters in town would have no reason to oppose the water rate increases. Since it remains a landlord’s market, with vacancy rates below 5%, I tend to disagree with you. But I expect, if opponents of the water project agree with your assessment, then they won’t be arguing that Davis tenants have any reason to favor the referendum.

  16. “I tend to think it will be difficult for the landlords to pass the water rate increase along, particularly if as many have suggested, these student renters are not as aware or engaged in the dialog concerning the water rate hikes and the landlords are unable to convince the students that the students should pay more because the landlord’s costs are going up.”

    The landlords will just raise the rent when the next round of lease signings comes up. They could care less if the students are engaged or not. You can bet that the landlords won’t absorb the higher water costs themselves.

  17. [quote]West Village doesn’t even cover the enrollment increase of the last decade. UCD expects to expand enrollment by about 5000 students and 300 faculty in the next five years (see today’s Enterprise).– [b]Don Shor[/b] [/quote]This is off-topic, but I can’t resist jumping in.

    I read that the Chancellor says that she plans to rely heavily on out of state students for the increase in student enrollment.

    It is a bit difficult for me to decipher the tuition, but out of state tuition appears to be about $35,000 a year. This also appears to be about the same as tuition at Harvard and Yale (anyone, please tell me if I read this incorrectly).

    A perceptive person recently told me that State Universities across the nation are courting out of state students to try to raise more money.

    He said that the competition is great for these out of state students, and pointed out that the private universities are also competing for these students who can pay so much.

    It is not clear if there are enough well-qualified, well-heeled out of state students to go around. We’ll just have to see.

  18. Here is a link to the UC Systemwide Enrollment Projections:

    Undergraduate & Graduate Enrollment Through 2020-21 Phase I Report [b]

    [url]http://repository.ucop.edu/cgi/viewcontent.cgi?article=1000&context=enrllmt_lrp_reports&sei-redir=1#search=”University California enrollment projections”[/url][/b]

    It is an interesting read. If you scroll down about a third of the way to Display 5, you will see a graph that shows a significant projected decline in the number of California high school graduates.

    Between the budget cuts and the decline in high school graduates, you can see the challenge. We’ll just have to wait and see what materializes.

  19. Note: I just read the second Enterprise story featuring the press conference. I was at a Capitol Corridor Joint Powers Authority this morning (there is also a League of California Cities Convention going on) and was forced to miss the convocation. All important events seem to occur at once.

    At the news conference, Chancellor Katehi’s comments about relying on out of state students was more nuanced.

  20. [quote]At the news conference, Chancellor Katehi’s comments about relying on out of state students was more nuanced.[/quote]

    This is just my personal perspective on “nuanced” positions – which I admit I have little patience with, being what is called “New England frank” myself –

    From Merriam Webster Dictionary:
    [quote]Definition of NUANCE

    1: a subtle distinction or variation
    2: a subtle quality : nicety
    3: sensibility to, awareness of, or ability to express delicate shadings (as of meaning, feeling, or value)[/quote]

    What “nuanced” position has come to mean, IMHO, is subtle distinctions/shadings used to cover up true intent, which if expressed, would result in harsh political blow-back from citizens. Just my opinion 🙂

  21. Davis plans to substantially increase enrollment. I would say that the city needs to plan for that by increasing the availability of rental housing. That is already a current need, so this just exacerbates it. Abandoning the affordable housing policies, more flexible zoning, and fast-tracking any rental housing proposals will be necessary. Using the metric of a 5% vacancy rate for a healthy rental market, Davis has fallen short for decades. The city doesn’t need peripheral growth to accomplish this (other than what UCD is doing). It needs a change in current housing policy.

  22. [b]Don Shor:[/b]According to the Enterprise, Rochelle had a different take on this: She said we have a very high vacancy rate now and this will help. Regardless, I don’t know if it will happen, for the reasons I posted above.

  23. “The apartment vacancy rate in the city of Davis increased slightly since last fall to 3.4 percent, while rents crept down by an average of 0.55 percent, according to a survey by the University of California, Davis.

    The UC Davis Office of Student Housing conducts the annual vacancy- and rental-rate survey, now in its 35th year, to provide the campus and the Davis community with information for planning.

    Last year, the apartment vacancy rate was 3.2 percent, and the average rent increase was 1.05 percent.”

    [url]http://www.news.ucdavis.edu/search/news_detail.lasso?id=9701[/url]

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