Showing posts with label overhead. Show all posts
Showing posts with label overhead. Show all posts

Saturday, March 7, 2026

Beware of Consultants Hired by City Managers

 


Grants Pass' water plant.  Over 35-40 years of rationing water rates, our river has never run too low for this plant to water our city.

Kudos to the Daily Courier and writer Vickie Aldous for exposing the consultant hired by our City Manager regarding pay raises for himself and other non-union staff. The consultant was asked to create mid-size raises and delivered high raises. 

This reminds me of water and sewer rate consultants FCS Group, hired in 2005 by then City Manager David Frasher.  In 2008, our Public Works Director couldn’t pay the overhead and asked the Council to raise the base rate by $3 to fix the problem.  It didn’t, because they didn’t lower unit rates, which were most of the bill. 

FCS eventually hiked our water rates every year 5.28% above inflation to pay the overhead and Councils rubber stamped it. 

In April 2020, I sent a memo to city staff about changing the rate system back to putting all overhead costs in the base rate and charging only unit costs to unit rates, the way it was when our city was clean, green, beautiful, and far from wildfires.  

FCS sent me a memo, admitting on the first page that aligning “fixed costs” (overhead) with base rates would make revenue more stable and “water usage” cost less per unit, encouraging watering in the growing season. FCS never said what is wrong with watering. 

Ninety-nine percent of the cost of any utility is overhead; usage costs are tiny in comparison and vary greatly by season.  Paying for all plant overhead with base rates pays the bills every month, even when the plant goes down, and spreads the cost most evenly among ratepayers.  Our Budget Committee can do the yearly math to set rates.

 

3-4-2026 2-minute Speech to Grants Pass City Council

Published at GardenGrantsPass.blogspot.com and shared on Facebook and X.com

Like Ratepayers for Fair Water and Sewer Pricing on Facebook.

 

 Rycke Brown, Natural Gardener      541-955-9040                 rycke@gardener.com


Sunday, June 8, 2025

A Proposed Charter Amendment: Utility Bills; Principles of Rate Setting; and Contingency Funds.

 


Our "falling apart" water treatment plant, about two blocks from the place we will be building a new one this year because of lack of maintenance early in the rationing-rate system.

Section 1. UTILITY BILLS: Only water and sewer charges shall be on City of Grants Pass utility bills.  Failure to pay City Utility Bills shall be the only reason to shut off water except for infrastructure maintenance, ordinances to the contrary notwithstanding.

      

Section 2.  PRINCIPLES OF RATESETTING:

 

A.    Monthly base rates for water shall pay all overhead, expenses that do not rise and fall with the volume of cleaned water produced.  Base Rates shall be based proportionally on water service size, per connection.  Base rates shall rise by actual inflation of the previous year’s overhead costs over the year before.

 

B.     A single unit rate for water shall pay for all unit costs, which rise and fall with the volume of cleaned water produced.  Water unit rates shall be total unit cost the previous year, divided by the number of total units produced the previous year.

 

C.     Base rates shall cover all sewage treatment costs, with rates to be based proportionally on sewer service size, per connection.  Sewer base rates shall rise by actual inflation of sewer costs in the previous year over the year before.

 

D.    Bulk water haulers shall pay the ¾ inch base rate per month, plus the city’s unit rate times 1.336 per 1000 gallons, to make all unit rates equal per gallon.

 

Section 3.  CONTINGENCY FUNDS

A.    Overhead and unit cost expenses shall include separate contingency funds to cover actual inflation of expenses during the year for each utility.

 

B.     There shall be a separate contingency fund for maintenance of infrastructure for each utility.

 

-end-

 

 

 

 

Talk or write to your Mayor and City Councilors

About putting this proposed Charter Amendment on a special election ballot ASAP.

 

Mayor Clint Scherf                                                      541-450-6000              cscherf@grantspassoregon.gov

 

Councilor Rob Pell                    Ward 1 NW                451-476-7578              rpell@grantspassoregon.gov

 

Councilor Indra Nicholas           Ward 1 NW                541-450-6000             inicholas@grantspassoregon.gov           

Councilor Rick Riker                  Ward 2 NE                 541-479-7333              rriker@grantspassoregon.gov

 

Councilor Victoria Marshall      Ward 2 NE                 541-450-6000              vmarshall@grantspassoregon.gov

 

Councilor Eric Schoegl               Ward 3 SE                  541-450-6000              eschoegl@grantspassoregon.gov

 

Councilor Seth Benham            Ward 3 SE                  541-450-6000              sbenham@grantspassoregon.gov

 

Councilor Joel King                    Ward 4 SW                541-761-7538              jking@grantspassoregon.gov

 

Councilor Kathleen Krohn         Ward 4 SW                541-450-6000              kkrohn@grantspassoregon.gov

 

Mayor and Council@grantspassoregon.gov

 

 Rycke Brown, Natural Gardener              541-955-9040                 rycke@gardener.com