LDPCSD to seek a new general manager

October 5, 2009 – © Foothill Express

Recruiting a new general manager for the water district will begin immediately. Board members made the decision in a 4-0 vote at the September 21 meeting of the Lake Don Pedro Community Services District.

The newest LDPCSD board member, Chuck Day, was out of town.

Not only has the general manager position been vacant for over a year, but Jason McCulloch, operations supervisor, also announced his resignation in September.

Although recruiting a general manager will begin immediately, after much discussion the board delayed the process of hiring an operations supervisor until the general manager is hired.

Almost 50 community members once again packed the small meeting room and voiced their concerns that there would soon be no leadership or expertise remaining to run the district, which provides water for the Lake Don Pedro subdivision and some other nearby properties.

Ron Hunt suggested that the board appoint someone in the operations supervisor position as an interim to ensure that everything continues to function as expected.

Vicki Keefe stated, “We want to see you work together and do what is right … No one has bothered to cross-train. Forget your personal feelings. Please, let’s move forward.”

In other business, the consulting firm of Bartle Wells Associates presented recommendations for alternative approaches for increasing revenues to meet the projected budgetary shortfalls.

Problems cited include stagnant revenues from water, since the water availability charge has never been changed, consistent fees while expenses are increasing, and reduction in connection fees.

Consultants proposed three methods of increasing water rate fees: 1. Proposition 218 process, requiring the district to send out notices of maximum potential rate increases to all property owners of record, including all tenants; 2. Increasing the connection fee, which requires a public hearing; or 3. Increasing the water availability charge.

Proposition 218 stipulates that each parcel is only allowed one vote.

Based upon the need for funds to improve the infrastructure, the Bartle Wells consultant suggested that “…not only should rates go up, but undeveloped lots will benefit from this … The goal was cost sharing. Undeveloped lots should be paying their share in the burden.”

Community members voiced their concerns regarding potentially charging people who purchase property that has been foreclosed. Coralaine Porter suggested, “You will be penalizing down the road someone who will be a good ratepayer.”

Residents also discussed charging owners of undeveloped properties, with one attendee stating, “This is a big burden on a lot of people who probably haven’t seen their property for 20 years … I own property but I am not allowed to vote for the board … and I have no say in how the water company is run.”

Tom Porter stated, “I will work toward defeating something that raises fees for vacant lots. What you are doing is doubling water (fees). You are saying you don’t want more people to come to Don Pedro. You’ve stopped them from coming.”

Representatives of the water district indicated that rates have not kept up with the additional costs. Without revenue, there is a concern that the state will take over.

After indicating that he saw no other alternative, Director Emery Ross moved and the board voted unanimously on the following:

• Accept the rates as presented in the Bartle Wells Associates water rate study (i.e., gradual rate increases over five years, from $25 to $32).

• Send Proposition 218 notices with property maximums.

• Set the public hearing date for potential increases of the connection fees to be held on November 16, 2009. This action would be voted on by July 1, 2010.

Additional discussion was held regarding discrepancies in the final raw water billing of the Lake Don Pedro Golf Course and changes in the methodology that was used.

Water district staff indicated that following notification of the closing of Don Pedro Golf Course on August 31, the meter was locked off and the Deerwood Corporation was billed $24,487.97 for usage of 55 units of raw water. Deerwood paid the bill with the exception of $3,529.65 for overhead that had not been billed on previous months.

Although the original contract signed with Deerwood Corporation provided for the Lake Don Pedro Golf Course to cover a portion of the water district’s overhead expenses, overhead had not been billed in previous months.

Vice President Wes Barton said, “… it is a poorly written contract and it is difficult to calculate the proportion of the overhead.” He stated further that the contract has never been billed correctly and there are too many questions.

Director Bill Kinsella indicated that “The contract says you’re going to do A, B, C and D and you bill for A, B and C-and all of a sudden you bill for ‘D’. We did not do what we were supposed to do and this man is going to close his business and we zap him with another ten grand.”

Director Emery Ross indicated that “… we should have had a sit-down with these guys. Sensitivity is not as good as it should have been.”

Don Pedro resident Bob Sykes emphasized that even though we may not all be golfers, “We are a diverse community, and if we can give something that brings value to our community, we need to make it viable.”

Tom Porter added that if the charge were removed, “I would feel a lot better about the district. I would never have sent somebody a bill and then have to defend it later. (I thought I was) dealing with a fair group of people … fair as human beings.”

Vice President Barton indicated that the majority of the board gave staff direction to credit Tom Porter for the overhead and not to bill Deerwood Corporation.

Tom Porter shook hands with and thanked each of the directors and the attendees individually for their fairness regarding this concern.

In other business, Terri Booten, representing Lake Don Pedro Trailblazers saddle club, requested support and will work with Vice President Barton and other volunteers to put together a plan for developing clear trails in the area, including a potential bridge over Gregoris Pond.

In public comments, Vicki Keefe noted that there had been questions regarding the specific provisions of the Brown Act and what is required of the board to meet those provisions. Keefe requested that the board study the Brown Act and its policies. “This is your fiduciary responsibility,” she said.