Opinion: Unable to understand logic of STPUD’s water rates
By Steve Jacobs
I am extremely upset and frustrated with South Tahoe Public Utility District. As a consumer and full-time resident of this community, I believe many of us are being victimized by STPUD’s current water policy. I believe their current water rates are unfair, inequitable and should be illegal.
If you do not yet have a water meter: If you do not yet have a water meter, you will continue to be billed at the “flat-rate” of approximately $200-plus per quarter (for both water and sewer). As soon as STPUD gets more funding, they will eventually install a water meter at your house. Once you have a water meter, you will then be charged based on your water usage.
If you already have a water meter: If you currently have a water meter (or when STPUD eventually installs one for you), you will be charged for every drop of water you consume. I am a full-time resident and I recently received my latest quarterly bill (water and sewer) for almost $500.This is up from the flat rate of $200-plus. There are only two people in my household, and we have landscaping but no lawn areas. (Note: For more details about my water situation see below). So I am now being charged 2½ times the amount of a flat-rate customer.
But it is not just me. One of my neighbors lives alone and received a bill for almost $800 (she has a lawn). Her neighbor who has a family of four and lawn area received a bill for over $900.
The problems: People without water meters will continue to pay the flat rate while many of us with meters will pay substantially more. This is not equitable and the district openly admits that their current rate system is unfair. STPUD says that California law requires the district to charge metered customers for their water based on volume consumed. And while this is true, there is no state law that establishes the actual rate that STPUD has elected to charge us. The problem is STPUD has set the water rates way too high.
To determine how much to charge for water, STPUD hired a consultant. And, of course, STPUD needs a certain amount to support their operations. However, both the consultant (as stated in the consultant report) and STPUD (in my conversations with customer service and according to Dennis Cocking, STPUD public information officer) admit that the current water rate disparity is unfair and inequitable when applied to their customer base. This inequity is especially amplified in our community where we have such a high percentage of second homes. In order to keep the rates “revenue neutral,” STPUD has to set water rates substantially higher for those of us who live here full time and use a “normal” amount of water. Second homeowners (with properties that sit mostly vacant) use little water and will pay far less. The result is those who already struggle financially to live here full time will now subsidize those who can afford to have a vacation home at the lake.
Also, in my view, people with a reasonable amount of landscaping and who water responsibly should not be penalized. Our water comes directly out of the ground, and if you water your lawn or your plants you recycle most of that water back into the environment. It would be different if we were in a drought situation. But we are not in a drought, and from my understanding we probably never will be, as there is plenty of water here in the Tahoe basin. While it is everyone’s responsibility to use water conservatively, I do not think it is right that STPUD wants us to live like we are in a continual drought.
Possible solutions: While I question the cost-benefit of the multimillion dollar water meter installation program, ultimately I believe it is a good thing to have meters in order to encourage people to use water wisely. However, the laws and policies relative to water usage need to be established and applied fairly and impartially. STPUD’S current water rate policy clearly does not meet this test. Here are some possible solutions:
1. It is my understanding that some current STPUD board members are in favor of raising rates even higher. Prior to establishing user rates, I believe STPUD needs to take a hard look at every aspect of their operation to ensure they are doing everything possible to minimize waste and maximize operational efficiency. Over the past years, most companies in America have cut back staff and have streamlined operations. I do not see that STPUD has ever made any effort to do this. They are a monopoly; they are supposed to be working for us (the public) and not just protecting their own interests. STPUD needs to evaluate staff compensation packages, staff levels, and implement infrastructure cost controls.
2. I believe STPUD should immediately increase the fixed portion of the water bill (the meter charge) and substantially decrease the consumption rate (to near zero) until such time that all of their customers have water meters. This would comply with state law, and would alleviate much of the inequity and class disparity for residents and second-home owners. In the distant future, when everyone has water meters, an equitable volumetric rate among the entire customer base could be considered.
3. I believe STPUD should immediately establish a tiered usage, seasonally adjusted base rate so people can afford to water their landscaping in the summer. (Tiered rates are commonly used by many utility companies.) People should not be penalized for having a reasonable amount of landscaping that is watered intelligently and conservatively. Plants are good for our environment, and the water used to keep plants healthy is mostly returned back into the ground from where it originated. Also, water used for irrigation is relatively cheap to provide since it does not need to be sewage processed or pumped over the hill to Nevada.
4. I believe that STPUD should delay volume-based billing for a period of one year for each of their customers after that customer has a water meter installed. My understanding is that this is permitted by state law. Excerpt follows… “(B) Notwithstanding subparagraph (A), in order to provide customers with experience in volume-based water service charges, an urban water supplier that is subject to this subdivision may delay, for one annual seasonal cycle of water use, the use of meter-based charges for service connections that are being converted from non-volume-based billing to volume-based billing.” For this one-year period, STPUD bills should indicate to their customers the actual dollar amount for the metered rate versus the non-metered rate. This would allow customers the opportunity to learn and prepare for the differences between the two billing systems.
My water situation (for comparison): In my case, I have a water meter at our house. So, STPUD charges for water based on their current metered rate, and as a result my latest quarterly bill (for sewer and water) has jumped from $150 to almost $500. There are only two people in my household and we use water very conservatively. We have low-usage water fixtures and appliances (1.6 gpf toilets, low-flow showers, sink aerators, high-efficiency dishwasher, etc.), and we have a landscaped yard with native plants (no lawn areas) that is on a low-flow drip irrigation system that is on a timer.
STPUD says that, with current water rates, over the course of an entire year the total amount that a metered customer pays will equal the amount paid by a flat-rate customer. This is simply not going to be true for anyone with landscaping that needs to be watered in summer.
Please let me know your thought: I have tried to put the facts and my beliefs together on this issue. If I am in error on anything, I apologize and please let me know. I am interested in hearing readers’ input on these ideas.
I encourage everyone to call the district (530.544.6474) and let them know your ideas; or better yet, attend a STPUD board meeting and express you thoughts.
Thank you.
Steve Jacobs is a resident of South Lake Tahoe.
STPUD needs someone to do what the city manager did, go in and clean up the budget, and trim the fat, make the public utility a leaner company like all the other companies in the US now. Have these guys ever had layoffs?
They seem to just do whatever they want over there, and hold water, a basic human need hostage. These metered bills are outrageous! You would think they’re pumping champagne through the lines.
Go back to flat rates, and only charge a surcharge when people use an excessive amount of water, this has been done with other utilities ie gas and electric.
Average water and sanitation bill $474/year (US$40/month) in 2002[2] (Wikipedia) Latest data I could find.
Looks like metered people are running $2000+/year.
They need to straighten things up over there. We appreciate the clean water provided, but need to get it at a more reasonable rate, and need them to run more efficiently.
Until STPUD took over our water, there were about 7 different water company’s, The water rates averaged between $85.00 and $125.00 per year. And we had the best water you could drink, all well water except for Globin’s water that had a resevor above the Sierra House off Pioneer Trail. We now have water that tastes like L.A. water. I some times wonder if its not sewage!!
You people need to go to the District and get a copy of the SALARIES of the EMPLOYEES, it is public information and they are a Public Company and must give it to you, Only then will you see the huge salaries that are being paid to the top people and even the workers are way over paid, they are the highest paid PUBLIC EMPLOYEES IN TAHOE.
When they want a raise they raise your rates, when they want new equipment, they raise your rates. They use Company cars and trucks for personal use, they take equipment home for personal use, they transport there families in district cars etc etc.
As for the Sewer Rates, when the District was formed, The sewer rate was $29.00 a year and we had the most modern system in the United States.
you could actually drink the treated sewage, they had a fish tank in the office that was treated sewage.
what happened ??
Check the salaries, it will blow your mind
The California Controller’s Office lists the salaries of city, county, and special district employees. Here is the link for South Tahoe PUD salaries: http://lgcr.sco.ca.gov/CompensationDetail.aspx?entity=SpecialDistrict&id=12400902400&year=2009&GetCsu=False
However, the latest year available on that website is 2009.
This article from April 2010 also has some STPUD salary info: https://www.laketahoenews.net/2010/04/4-proposed-stpud-rate-hike-comes-with-questions/
STPUD board meetings are the first and third Thursdays of the month. Agendas are easily accessed via the home page of the district website — which is easy to get to from the square ad to the right of this post.
Kathryn Reed, LTN publisher
Sue’em if you think it’s unfair. You have enough residents who feel like you to file some type of class action as well.
We have two new people on the Board now, Kelly and Randy.
We need to be at the meeting on Thursday Dec. 15 at 2:00 pm to tell them what we want.
We want Equality.
All of us pay for water at the same rate.
Ughh, I hate the jeolosy over wages for engineers and hydrologists.
The author of this article very articulately describes how permanent residents are subsidizing second homeowners water bills. That is the issue. If you personally want to make more money go get an advanced degree in a technical field. The fact of the matter is accountants, engineers, lawyers and scientists will always earn a lot of money. It is the way it is, it is the way it always has been. No offense intended, but a journalism professor used to get mad because he made 1/2 of what a relative of mine made at a university. My relative had a PhD in statistics with emphasis in systems analysis. Journalists get paid a rate, engineers get paid better. Dont like it, become an engineer.
STPUD is as STPUD does. That says it all.
With four times as much water available as used, only a psychotic could impose this insantiy on us.
The STPUD board is composed of our friends and neighbors, yet they treat the public with comtempt and disdain.
Water corrupts and absolute water corrupts absolutely. OK, I stole the quote, but I at least modified it.
IIHWAD.
I have 4 people in our household and full lawn and watered trees and my bill was $294 for the last period. That was during the summer months. You are clearly wasting water. My bill should be less in the winter months. And we are full time residents. It can be done.
Hey Johnny
Are you on a meter ???
Johnny, how many cubic feet did you use?
It is on your bill. How many square feet of lawn do you have?
This will help other residents determine relative usage and costs, because irrigation is by far the greatest user of water. Unless you are taking one hour showers or washing 200 loads a month, inside usage show be a minor percentage of total use in summer.
Wintertime is when inside water usage can be calculated as landscaping is under many feet of snow.
Thanks.
P.S. Hopefully other households will relate how many cubic feet of water they used and the cost.
Yes on a meter. I don’t have the Cubic feet info in front of me. We take 5 min. showers and the lady of the house soaks in the tub every night. So we make it up in other ways. Don’t run the water when you brush your teeth, only turn the water on half way when doing dishes, run the dishwasher on speed setting, only water your lawn when it starts getting brown, if its yellow let it mellow if you know what I mean. There are so many ways to save water. My household knows when you open the faucet you are putting money down the drain. Its that simple. Don’t waist the water.
I agree with Johnny. Our water bill actually went down and we are full time residents with kids. We don’t have a lawn, but do have some natural landscaping that we do water. Does the district still have the turf buy-back program? If so, I would recommend checking it out. You can make some money on getting rid of your grass, save yourself money on your water bill, and be kind to the environment in the process. With respect to salaries, my understanding is that the managers have not received raises in three years. Their compensation is well below industry standards. They are a well run organization with no fat to trim. Honestly, I don’t understand the argument that just because everyone else has had to cut – they should.. I don’t understand the logic behind that.
Have to keep feeding the Green Pig.
What is so bad about water conservation? It is the most important resource and is finite. Someone told me that if water use continued to rise, the district would be facing some serious upgrades in their delivery system. The cost of water is also tied to the cost of power, as it all needs to be pumped, and power will only get more expensive.
So many people are caught up in the short term and fail to think about the world in 20 years.
John
There is lots more to this than jealosy of engineers wages.
It’s much more than that.
So to bad if you “hate the jeolosy”
people paying the bills hate the excessive pay government and agency employees get.
It’s not proportional with your value. Nor is it in line with the free market.
“Greed all it is ,in your face.”
Ernie Claudio you must be high on your coffee, cause two people on the board like a icicle hell,Spiting on a forest fire to trying put it out!
They are there to take up Space!
Check the salaries… I’m told the Technicians (worker-bees) without a college degree make almost $40 per hour! In the Bay Area, college graduates today are happy to make $20 an hour, unless you are a pHD or MD. Request STPUD put the salary issue on the Board Mtg agenda (coupled with the salary fact-sheet as staff report). Compare to other water companies…
The less water that you use the less money they take in and your water rate will rise to compensate for the loss of money. The same goes for electric.
Judi, I checked the website. You were told wrong. Remember people pay medicare on there entire salary including deferred compensation.
X Local is exactly right. The flat rate does not cover fixed costs. So saving water will mean more cost increases later.
Let me just say this much. My water bill this past quarter was more than my monthly: mortgage, electric, gas, cell phone, and credit card bills … COMBINED.
I own a commercial business in major metropolis in California, my water bill there, which is on a meter, with a usage say roughly triple what I use here. Oh and since its commercial I don’t get the lower residential rate, runs around $45 per quarter.
So yea, STPUD is sticking it to us.
We had Dale Rise on the board, I really thought he was watching out for us, and he lost the election. Which was understandable given numerous factors.
I really don’t think anything is going to change at all, even with the two new board members. Why? Because we can complain all we want, it won’t change a thing if they want to stick it to us. The board has made this clear.
I fully expect to pay through the nose for my water bill at the very least until those on the board decide to represent the voters. And since they have made it clear that they are going to stick it to us, complaining to them won’t do anything at all.
But can a recall get their attention?
John, you told Judi that she was wrong. I did some calculations and found that, indeed, technicians DO make almost $ 40/hr. Top pay for an electrical instrumentation technician is approximately $ 36/hr. Add vacations to that and it probably gets darn close to $ 40/hr. That is hardly the point, though.
You cannot compare wages in Lake Tahoe to wages in Richmond or Stockton. Living in Lake Tahoe is an honor and privilege. If STPUD employees want to make the wages at some mythical water district, let them move. In very little time, the League to Save Lake Tahoe’s (for a very limited group of wealthy people) dream of no one living here will be realized. The rates are outrageous. Has anyone ever heard a STPUD employee complain about their pay? In my decades here, I have never heard a word.
Bring back St. Pud to open the dialog with the Board again. For those of you who don’t know who St. Pud is, too bad.
We need enlightened leadership that will take into account the benefits of landscaping (beauty, fire protection, etc.) and not penalize the residents so that a very small group can live entirely too well.
Dumbfounded, you are missing the approximaly $1200 per month in health. I agree it completely misses the point, but those people are not making $80k. It does cost that much to employ them though. Look our business pays $1200 for insurance, 7.5% FICA, 3.5% unemployment, 5% workers comp. It costs a heck of a lot of money to hire an employee. Those cost are buried in that number.
The number one cost for a STPUD employee is wages, second would be the cost for their CALPERS retirment. There is an Employer and Employee payment to CALPERS (High Cost At THIS TIME). Unknown if STPUD pays for both (Employee/Employer).
Also, if you are on a meter there is a service fee of $66.00 on top of the meter fee…..
It is over $2.000 per mouth per employeer for medical or $12.00 per hr. On cal pers public pays 16.34% per hr
Just a thought about landscaping. The houses that best survived the Angora Fire did not have “native landscaping”. They had conventional landscaping. Native landscaping burst into flames because is doesn’t have much water content. Conventional landscaping holds more water. Landscape watering does not cause any increase in treatment as it returns the water to the groundwater environment. There is no argument that supports paying the same rate for landscaping water as users should pay for household water. This reality has to be included in STPUD calculations for ratepayers. Bring back St. Pud!
… and from here… it gets worse.
OK, from web site Kae gave us.
Electrical Instrumentation Technician II maximun annual salary is 74,792. Pension of 2.7% at 55 years old and it costs the employee 2,057 dollars per year. Health is 21,600 per employee. At 55 with 25 years of work you would retire at two-thirds of 74,792 dollars or about
50,000 dollars a year.
You are very correct Dumbfounded in your calculations.
And you who get social security would probably give your eye teeth to be a
STPUD employee then retiree. Retirering 10 years later with less than half the money must frost your a–, plus it cost your more for much less.
Yep.
Government and all the agencies betrayed us.
They think that government employees deserve more than the rest of us and have taken it.
The pigs wiped out our economy.
This is at the core of our nations problems.