Author: Marlene King
Date: October 26, 2015

October 1 Board meeting moved forward, on a 3-2 vote, the Cost of Service Study (COSS) 9%, 9%, 9% rate increases for the next three years (Directors King and Gruzdowich, representing Fairbanks Ranch and RSF, voted against this rate increase proposal). At the Oct. 15 meeting, the Board agreed with my proposal to delay the Prop. 218 hearing on the rate increase proposal until the February 2016 meeting. This means that the written explanation of the rate proposal and 218 protest hearing procedures will be mailed out the first of January, rather than during the December holiday season, when many customers are traveling and unable to discuss the rate proposal with neighbors or ask questions of District staff.
A number of S.F.I.D. customers have remarked that it is unfair to propose rate increases in the middle of a period where customers are penalized if they exceed their allocations. In fact, the COSS was initially proposed for 2014, but delayed by the previous Board until after the election of Nov. 2014, because three of the five seats were up for election.
By the way, during the 2010 COSS, the previous Board did not vote to establish drought rates, as recommended by the water rate consultant. Consequently, the water rate consultant and District staff recommended “allocations” in May 2015 to meet the Governor’s reduction mandate. The current COSS again proposes drought rates, and the current Board approved moving forward with both “normal” water rates and “water shortage” rates.
Finally, the proposed rate increases are “not to exceed” numbers: the Board will analyze, at the beginning of each year or at the beginning of a water shortage condition, whether the District’s financial position requires the 9% increase or the maximum water shortage increase, or whether a lesser increase is warranted. The public will always have the opportunity to write the Board or speak in person at the Board meeting where this “yearly rate consideration” is on the agenda.
Interesting Facts and Hints: