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The bureaucratic failures and financial mismanagement of the Ross Valley Sanitary District have been evident for some time, so for those seeking to get past the rhetoric, please review the following documents and let us know if you have additional questions. What is most important is that we are moving ahead to the solution to the myriad problems:  creation of the Central Marin Sanitation District, which will consolidate sewage collection and treatment in Central Marin!

bulletSewer district merger needs real leadership
bulletMarin Civil Grand Jury Report "Stuck in the Muck: The Ross Valley Sanitary District"
bulletMarin Civil Grand Jury Report "Bickering Board Breeds Discontent"
bulletLarkspur housing group pulls out of deal with Ross Valley Sanitary District, sues district for $15 million
bulletConcerns raised about sanitary district
bulletRoss Valley Sanitary District would only merge if it's in charge
bulletPetition may force consolidation
bulletRVSD already has at least $1 million invested in the sale of its property at Larkspur Landing (the former Ross Valley sewage treatment plant), and now - after 11 years of negotiations - the deal has fallen through because the district failed to clean up its hazardous waste site. Because the deal had not closed three year's ago, RVSD had to take out a $10 million loan to finance capital expenditures, for which it is paying 4% interest. The property will now have to be cleaned up and its market value is considerable less than the $12.5 million the district would have received. This property most likely will become an asset of the new sanitation district we now are in process of creating. UPDATE: RVSD settled with the developer and agreed to pay $4.8 million, on top of another almost $2 million in legal fees!
bulletRVSD was expelled from its former office space, after spending around $1 million to move there less than four years ago. It responded by purchasing a building outside of its jurisdiction, and paying more than 20% over market value ($285 per square foot, when market value was around $225). It then proceeded to spend around $1 million in upgrades to the property (utilizing funds from capital programs). The previous lease for administrative and equipment space was $60,000 per year; the district is now spending over $150,000 per year.
bullet

Time to explain spending (Marin Independent Journal, May 11, 2011)

I was surprised to see the quote from Ross Valley Sanitary District President Marcia Johnson at the end of the May 5 IJ article where she said to justify the large rate increase: "When I started on the board at the end of 2008, we barely had enough money to pay the bills."

If this statement is true why, after doubling rates in 2008, did directors approve:

• buying a $2.5 million building in San Rafael rather than lease space in the district?

• spending about $750,000 to fix up the newly acquired building?

• hiring 10-plus new employees?

• guarantee a 24 percent pay increase to all employees spread over the next few years?

• filing lawsuits and acting against other local agencies, resulting in millions of dollars in legal fees?

• not cleaning up the PCBs at the Larkspur property so the buyer could develop it. Instead, the district waged a lawsuit, settled at a cost of $4.5 million?

• establishing a $500,000-per-year grant program for replacing sewer laterals?

These costly decisions don't make sense given what Johnson supposedly knew in 2008. Now the district claims the need to significantly raise rates again just to pay bills, balance the budget and build a reserve?

Perhaps it should slow down on the rate increase process, and like other agencies, look for opportunities to cut annual expenses such as:

• putting the lateral grant funding on hold.

• not filling vacant positions.

• asking management to take 1-2 days per month unpaid furlough.

• reducing travel to conferences management and board members.

• discontinuing spending $3,000 per month for a lobbyist, and $7,000 per month public relations consultant.

If Ross Valley took those steps, while taking a hard look at its spending and capital priorities, its board may work to build credibility.

Dan Hillmer, Larkspur

 

 

 

 

 

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Last modified: January 20, 2011