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