STPUD ups rates; salary increases not decided
By Lesia Witkowsky
Water and sewer bills for South Tahoe Public Utility District customers will be going up July 1.
The board on a 5-0 vote made it official June 5.
Water rates will increase 6.5 percent for each of the next four years, with the fifth year being 5 percent. The base pay for people on water meters becomes 80 percent of the bill, with 15 percent being based on use. Sewer rates will be 6 percent higher each of the next five years.
About 20 people were in the room Thursday, with a few speaking from their seats. Many spoke about water meters and their legitimacy.
Residents are concerned that a lot of people in this town are on fixed wages and it is not easy for them to start spending more money for basics like water and sewer. A few also discussed the fact that meters will cost money to implement and were concerned with the fairness of everyone having to pay more money for water even if they barely use any, for example people who own homes here, but live full time in other cities.
Eric Schafer, board president, said how in a global sense meters encourage conservation by showing water consumption and therefore there are valid reasons for using them. Because meters are state mandated, the board has no choice but to ensure they are installed. They are also the best way to reduce water consumption because flat rates are hard to leverage pressure on customers to reduce water consumption, Schafer added.
He also reminded people that the staff recommendation was for higher water and sewer rate increases.
“We carry the burden of responsibility on whether or not we do the right thing. It’s a brutal cost, but if you’re trying to make sure of maintaining the system as it is or better, and make sure we don’t have something that causes more significant increases down the road, then do the 9.5 percent,” Schafer said. “If we’re not doing enough, I think you need to relook at it and think about doing what’s right and not what the notice say. I’m going to vote for this not because I believe it, but because I want my vote to at least be what is called for. It’s not my recommended approach, but that’s what I’m going to do.”
The notice he refers to is Proposition 218, which required a 45-day protest period. If 50 percent plus one ratepayers were to have filed a protest to the proposed rate increases, the district would not have been able to go forward no matter what the board wanted to do.
Water rate received 305 protests, or 2.17 percent of customers; sewer 342, or 1.88 percent of customers; and metered rate structure 260, or 1.85 percent.
The board has been discussing the possibility of raising rates since last fall. And the five have never been on the same page as to what the district should be asking of its ratepayers.
It’s been a case of does aging infrastructure get replaced now or sooner versus can ratepayers afford to pay more when so many still have not recovered from the economic downturn.
Board member Jim Jones agreed with Schafer that not enough money is being collected, especially when it comes to long-term equipment replacement.
Member Kelly Sheehan said, “Perhaps had there been smaller consistent rate increases, we wouldn’t be faced with the thought of a 9 percent increase or a 6 percent increase.”
Randy Vogelgesang, another board member, said, “It is our duty to carry out the wishes of the ratepayers to the extent that we can and still have a functioning district. In an ideal world we’d go with constant rates forever, but that includes capital improvement.”
Besides rate increases, the board approved the 2014-15 budget that takes effect July 1.
There are no cost of living increases for employees, but raises are not out of the question.
“Negotiations are under way with our union represented employees for a new MOU, since the current two-year contract expires in July of this year,” General Manager Richard Solbrig told Lake Tahoe News.
The board discussed the latest proposal from the union in closed session at the end of the meeting, but no decision came from it. It’s likely the salary question won’t be resolved until July.
Regular step increases for employees who are not at the top of the pay scale will be given.
No changes have been made to other employee benefits.
Kathryn Reed contributed to this story.
STPUD gave out hefty raises 2 years ago, and they will again, and there is nothing any of us can do about it. STPUD is taking money from our pockets and putting it in theirs, with little to no concern. Why ? Because they can. The employees own this board. STPUD should have been required to put this to a vote of the people! This is a small town and we should have just one government agency instead of all of these multiple agencies taxing the same people over and over again.
Gotta love Schafer’s comment, “that the staff recommendation was for higher water and sewer rate increases” of course it was. STPUD never felt the recession and neither did their staff unlike the rest of the citizens here.
Every person in Tahoe should look at the SALARIES of these people, I was blown away at the SALARIES they are paying. WOW.
Most residents don’t have any Idea at how much these people make, They make far more than 50% of the people in this town, maybe even 65%. If I were looking for a job, S.T.P.U.D. is the place to work, Live like a KING.
If they are going to up my rates, they better make my water taste better because it sucks ! It used to be great, years ago, now it is full of chlorine and who knows what. I recently put in a filter and now my water is back to where it used to be. STPUD is a rip-off monopoly.
The board is bought and paid for by the union.
Now there’s a surprise, the decision was made long ago despite the dog and pony shows leading up to the vote. I wonder what it would have taken for the board to change it mind, other than a majority protest petition, I suspect nothing.
Scott-
Did you protest the rate increases?
If half of us, plus one, would have protested, we could have stopped it. Tahoe people are pathetic…a lot of complaining, but no action beyond expecting someone else to solve your problems.
STPUD, of course, knows this, and uses it to get what they want. As Tahoe is almost built out now, look forwaard for many more increases going forward since growth in customers will essentially stop.
I too believe the payscale at the district could use some inspection and investigation.
Particularly how it compares to other water/sewer districts of similar size. Living in Tahoe should NOT be something you are paid extra to do.
Does anyone know if STPUD employees get a break on water and sewer costs? That would light a few fires if it turned out to be fact.
As far as anything Union goes, I am generally not pro union. They have had their place in a historic sense, esp. in safety and health issues, but in too many cases they became so powerful they run the ship. They become no different than gangs All of us beyond 50 years old should be well aware of the corruption so common at the top of Unions. It may be so in this one. I suppose we will get a window into that subject come July, when the contract expires.
If the negotiations are not looking at reasonable demands, and strike is mentioned,
I would recommend to revisit the only thing Ronald Reagan ever did that I was 100% behind, that being of course, firing the air traffic controllers when their Union got a bit too big for its britches.
A more recent and also warranted action was Hostess Bakeries, when they shut down, (as they had said they would have to), if the Union continued making unreasonable demands. I remember well the shocked look on the suddenly unemployed, and the whines of “They can’t do this, it is not right!”
There are some STPUD board members who certainly don’t want to “rock the boat” with regard to STPUD employee high wages and benefits.
STPUD Board members bestow upon themselves the same succulent health and medical plans they approve for employees, why on earth would they want to jeopardize such a generous benefit for themselves? Especially for part-time positions.
One long term Board member underwent costly heart surgery a couple years ago, at 100% expense to ratepayers and taxpayers. And not even a thank you to those who picked up the tab.
The following was copied directly off the STPUD website at http://www.stpud.us/board.html regarding that Board of Directors:
“The five-member Board of Directors are elected by popular vote of the general public who reside within the boundaries of the District.”
As evidenced by the low voter turnout at Tuesday’s election there are a huge amount of people in this community who find voting of no particular importance and don’t even bother to show up and participate in the decision-making processes that take place in their own community which impacts their lives. Due to a lack of caring this community gets back what they’ve put in and it deserves what they get.
4-mer has it right, not enough show up and vote. On the other hand, STPUD rates can only be stopped if over 50% “protest” the vote, which probably has never happened in the history of their rate increases. That’s a game played by STPUD. That would be a good investigation whether STPUD has ever not raised its rates when proposed. STPUD has been bought and owned by the unions for years. They laugh at us all the way to the bank, from our pocket to theirs.
Scott:
“ STPUD rates can only be stopped if over 50% protest the vote, which probably has never happened in the history of their rate increases.”
Another glaring example of how a large amount of people in this community don’t bother to be involved in the decision-making processes that directly affects them. This apathy has led to the unfortunate circumstances of a minority of people being in a position to dictate to the majority. Since I don’t envision any shift in this indifference or some great rush to participate by the masses, the only consideration remaining is determining one’s satisfaction level of residing in a community that doesn’t care enough to take some control of their own destiny.