Budget/Fiscal

Documents Show Clean Water Agency Spends Hundreds of Thousands on PR Firm

water-rate-iconRatepayers Paying Nearly $300,000 in Two Years For Communications Firm To Sell Water Project to Public –

In a series of documents obtained by the Vanguard recently, it is seen that the Clean Water Agency has contracted with Kim Floyd Communications, Inc. to engage in outreach efforts that can better be characterized as public relations in nature.

In the agency’s July 2010 minutes, Don Saylor, then a member of the Davis City Council and a director on the Clean Water Agency Board, asked for a description of these “outreach efforts.”

Commentary: New City Manager’s Straight Talk A Reason For a New Hope

Sep-Budget-Photo

Davis got its first view of its new city manager, Steve Pinkerton, on Tuesday night, and we could already see a huge change in the nature of the fiscal analysis coming out of city hall.  Gone were the days of rosy projections and papering over serious problems.

Instead, what we got was a lot of straight talk from the city manager, who acknowledged for the first time that the figures that we have been viewing for the past few years are not only bleak, but things are actually worse than we feared.

Council Will Take Slower and More Methodical Approach To Deal With Worse Problem Than Previously Articulated

Sep-Budget-Photo3

Last night for the first time, Davis got to watch its new city manager, Steve Pinkerton, at work.  At this budget workshop, there would be no rosy and hopeful projections, only straight, hard facts.

If anything, City Manager Steve Pinkerton would argue, the gap between current levels of funding and what we will owe in the next few years is understated by the numbers presented on Tuesday evening.

Urgency: Why Council Must Act Sooner Rather than Later on the Budget

Overtime

Back on June 28, the Davis City Council passed, by a narrow 3-2 vote, a budget that started to fix what had been decade-long fiscal mismanagement of the city.  Over the course of the last decade, the city council has allowed total compensation, salaries, benefits, other post-retirement benefits (OPEB) and pensions to become unsustainable.

Even when the city was riding the wave of the real estate bubble and seeing double-digit growth in property taxes, even then the increases were unsustainable.  To fund a 36% salary increase for fire, the city enacted a half-cent sales tax, for example.  The city also had to pass a parks tax.

Clock Begins As Opponents of Water Rate Hikes Have 30 Days to Protest Its Adoption

Vote-stock-slideOrdinance Number 2381 was attested by the City Clerk after hours on Thursday, September 22, 2011.  Therefore, the official day of attestation shall be Friday, September 23.

According to Elections Code section 9237, “If a petition protesting the adoption of an ordinance, and circulated by a person who is a registered voter or who is qualified to be a registered voter of the city, is submitted to the elections official of the legislative body of the city in his or her office during normal office hours, as posted, within 30 days of the date the adopted ordinance is attested by the city clerk or secretary to the legislative body, and is signed by not less than 10 percent of the voters of the city according to the county elections official’s last official report of registration to the Secretary of State, or, in a city with 1,000 or less registered voters, is signed by not less than 25 percent of the voters or 100 voters of the city, whichever is the lesser, the effective date of the ordinance shall be suspended and the legislative body shall reconsider the ordinance.”

Council Pushes Back Budget Discussion

budget-public-1Last week, the Davis City Council pushed the September 30th deadline back.  They will now begin with a Budget Workshop, which appears focused on reviewing the current status of unfunded liabilities related to the City’s pension and retiree medical benefit plans, along with unfunded liabilities related to major infrastructure components including streets, sidewalks, bikepaths, parks and city facilities.

The budget plan that was passed back in June looked to take $2.5 million in current personnel costs and put it “toward CalPERS and OPEB unfunded liabilities ($1.5 million), street maintenance contracts ($850,000), and unallocated contingency appropriations ($150,000).”

City Defends Need for Project, Increased Water Rates

waterforum-1

Davis public officials, including three members from the Woodland-Davis Clean Water Agency, on Wednesday held a question and answer session about the new water project and the accompanying rate hikes associated with the project.

In addition to Davis’ representatives, Mayor Joe Krovoza and Councilmember Stephen Souza, Woodland Councilmember Martie Dote came down from Woodland to speak, as well.

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

water-rate-icon

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.

Commentary: Councilmember Wolk Splitting the Baby on Water

Wolk-DanCouncilmember Dan Wolk has tried to play the swing vote on a number of issues early in his tenure as a Davis city councilmember.  In the process, he has had to cast some tough votes, like the deciding vote on the budget.

Two weeks ago he came forward with a compromise on the water project – while he got a lot of what he wanted, he did not get the centerpiece, a one-year, 10 percent rate hike, which would have likely avoided the referendum and would have given the council time to move forward.

Commentary: City Commission Exacerbates the Lack of Movement on Budget Reform

chip-seal-sep

Back in July, the Finance and Budget Commission was asked to weigh in on possible avenues by which the city could reduce its personnel costs by 2.5 million.  Instead of doing that, they “expressed concern over what they viewed as an unnecessary reduction in services, before other alternatives had been considered.”

In so doing, they came out against a two-year budget, arguing “There are too many unknown variables to make a multi-year budget meaningful, especially in today’s economic environment.”

Staff Recommends Delaying Personnel Cuts

pinkerton-steveSunday Commentary: Did City Staff and Paul Navazio Sabotage Budget Cuts?

On Tuesday’s Davis City Council agenda, City Manager Steve Pinkerton has asked council to postpone the September 30th deadline to cut 2.5 million from the budget.

Wrote the city staff: “Staff acknowledges that any reductions based on a $2.5 million dollar package, irrespective of timing, would create significant impacts on service levels. With so much at stake, staff feels the need to have adequate time to allow full vetting of the service impacts.”

Water Issue Remains Contentious Even After Prop 218 Hearing and Vote

water-rate-icon

That the council approved water rate hikes on September 6 has not diminished the amount of contention over the issue of water in Davis.  Earlier this week, a group of citizens announced they would be filing papers to put the water rate hike to a vote of the people.

In the meantime, the City of Davis continues its efforts to outreach on the issue.  On Thursday, it announced it would hold a Water Forum from 7-9 p.m. on Wednesday, September 21st, in Community Chambers (23 Russell Blvd), 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.”

Word to the Wise – How To Read Your City Utility Bill

water-rate-iconBy E. Roberts Musser

Since the surface water project has been front and center in the local news lately, it would seem an article on how to read your city utility bill would be quite timely.  The Dept. of Public Works held a seminar on the subject at our most recent Davis Senior Citizens Commission meeting on Sept. 8, 2011.  It proved to be an interesting discussion.

On Sept. 6, 2011, the City Council most recently approved a 14% increase in water rates for every year each of the next 5 years, with the possibility of having to increase water rates 14% in the 6th year.  But to increase the water rates the 6th year will require another Prop 218 notice.  So for an average single family resident, we have the following rate schedule:

 

Water Rate Referendum is in the Works to Stop Water Rate Hikes

water-rate-iconA diverse group has come together to fight the water rate hikes, as anti-tax conservatives join forces with liberal progressives in Davis seeking to overturn the five-year water rate hikes of 14% passed by the Davis City Council on a 4-1 vote last week.

According to one source, once on the ballot it would suspend the rate hikes until about nine months after they are set to begin on December 1.

Will Davis Voters Put a Water Rate Referendum on the Ballot?

water-rate-icon

The Vanguard has made its position on the water rate hike very clear over the past few years, including in the last month.  However, as a 501c(3), the Vanguard cannot advocate for or against any electoral matter.  Therefore, the Vanguard can only report on facts – what is happening, what will happen, and also we can examine claims made by either side, so long as we are not encouraging or advocating anyone to vote a particular way.

As we reported this weekend, the Vanguard is disappointed a compromise proposed by Dan Wolk could not be agreed to.  His proposal would have set a one-time 10% water rate increase for this year, while allowing time to explore various options and approaches.

Commentary: The Lost Chance for Compromise

water-rate-iconThe Vanguard is disappointed that both Mayor Joe Krovoza and Councilmember Sue Greenwald left a one-year compromise on the water deal on the table Tuesday night (see Wednesday morning’s article).

Councilmember Dan Wolk, with backing from Mayor Pro Tem Rochelle Swanson, would have set a one-time 10% water rate increase for this year, while allowing time to explore various options and approaches, including one strongly favored by Sue Greenwald involving a variance that would allow for regulatory relief.

Concerns Grow About the Budget Deadline and Lack of Urgency by City Staff

Joe-Krovoza

Back in June, the Davis City Council by a narrow 3-2 vote passed its budget, which reflects 2.5 million dollars in personnel cuts to be due by September 30.

It is now well into September, and at the September 6 city council meeting it was announced that the first budget discussion would come on September 27, just days before the deadline.

Vanguard Analysis and Commentary: Water Project Still an Expensive Gamble

water-rate-icon

There are so many different moving parts on the water discussion, that it is likely to be impossible to capture them all.  I will start this discussion on a positive note. In years past there would be a sense of bitterness in a vote like this. However, on this council, I can honestly say that there are five people who, agree or disagree, did what they thought was in the best interest of the people of Davis.

Along those lines, the costs here are going to be tremendous.  We will evaluate just how tremendous shortly, but this is not a cheap project.  There are strong cases to be made that we needed to go ahead.  As I argued earlier this week, after looking at all of the arguments, I am just not convinced that we had to go about this now, especially in an economy such as ours.

Documents Show Possible Dollar Tree Emergence at West Lake Undermining Prospects For New Buyer of Grocery Store

WLIGA-Mtg-1

As has already been reported, Westlake Market is operating in the red and the current owners, the DeLanos, are looking to sell.  What has not been widely reported is that the landlord is making a deal with the Dollar Tree to come into the adjacent store space that has been vacant during the nearly two years of operation for Westlake Market

In a communication to Community Development Administrator Katherine Hess, that the Vanguard acquired as part of a Public Records Act release, Eric Nelson of the community group DANG (Davis Advocates for Neighborhood Groceries) on July 21 said, “I have found a very qualified operator to take over the grocery and he submitted a letter of intent to the DeLanos and they have accepted.”