We can fix our water and sewer rates!

 

We can fix our water and sewer rates!

Water should never be rationed by price.  Every household should be able to afford to water their yard, protecting their city from fire, as it was before water-rationing rates.  Every household should pay the same charge for sewer within their water service size class, as it was before water-rationing sewer rates. 

·        No unit rates on sewer; minimal unit rates on water.

·        All water overhead paid through monthly base rates to pay monthly utility expenses.

·        Water unit costs covered by a single unit price.

·        All sewer costs equally shared through base rates, no extra charges.

·        Rates to rise by inflation of actual utility costs, not the Consumer Price Index (CPI).

·        No franchise fees.  The City cannot charge a franchise fee for a business it owns.

 

We can do this by putting a city initiative on the ballot, creating a Ratepayer Utility Rate Board for Grants Pass, passing it, and electing its members after it passes.

·        Rates will be set by an elected 5-member Ratepayer Utility Rate Board (Ratepayer Board)

·        Ratepayer Board eligibility is open to any registered voter living in a residence that uses Grants Pass water and/or sewer and who does not work for the city in any other capacity. 

·        Each member of the Ratepayer Board shall take an oath to stick to the above financial principles in setting utility rates. 

·        Each meeting of the Ratepayer Board will begin with a statement of these principles.

·        The Ratepayer Board will meet 5 business days within one week per year to set the rates and shall be compensated $100 per day for their attendance.

·        The City Manager shall provide each member of the Ratepayer Board with the previous year’s expenses of the water and sewer systems, including the Ratepayer Board’s per diem, one week before Ratepayer Board meetings begin.

 

Before we can do any of this, we need: a group to help write the petition; people to circulate the petition for the ballot; and people willing to serve on the Ratepayer Board.  All of this will be quicker and easier with money, so please donate.  We could use a website, too.  All of this must come together before we can even start to circulate a petition.  Fortunately, we get 2 years after the petition is approved to circulate to finish.  Let us know if you are interested in helping.

           541-955-9040                                        rycke@gardener.com

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Rationing rates have relatively low base rates and high unit rates, designed to cause less use of a product or service.  They give us cheap access to water and sewer service and make us pay through the nose to use it.  Worse yet, as use keeps dropping, rates are hiked by more than inflation every year to cover overhead in a very high-overhead business.   Overhead is the cost of the whole water or sewer system, bills that must be paid monthly regardless of use: debt payments; salaries; maintenance budgets; electricity for lights and computers.  Unit costs rise and fall with use of the utility, like water-cleaning supplies and power for pumping.  (Sewer will have no unit price.)

 

Grants Pass has had water-rationing rates since the 1990s but got serious about it in 2006 with much higher tiered unit rates and a lower base rate.  Water use dropped a lot. In 2008, City staff told the Council that their conservation rates had worked so well that the water plant could not pay the overhead.  Staff asked the council to raise the base rate by $3, which they said would stabilize revenues.  Council passed the base rate raise but it didn’t stabilize revenues because the unit rates were too high; the base rate was too low; so people kept cutting back on use.  After that, Grants Pass raised base and unit rates by the same percentage yearly to pay the overhead, until the City Council dedicated $3 million in America Rescue Act money to the new water plant and cancelled the last 2 yearly raises in rates for the new plant to compensate ratepayers.  But they are still raising rates by the CPI and will likely raise them to cover overhead every year.

The city started rationing rates on sewer in 2013, basing sewer units on the average of each winter month’s water use.  Sewer unit rates are especially bad for ratepayers and the sewer system because unit costs of cleaning sewage are much higher than for water.  They are particularly hard on the poor who must live many to a house and put a lot of water down the sewer.  When people cut back on water use by reducing what goes down their drains, they cut the water needed to make sewage flow smoothly.  Since sewage unit rates began, we have had sewage pumps clogging.  This is why we didn’t charge for sewer units before, and Medford and Portland still don’t.

 

When revenues don’t meet overhead expenses, maintenance is the easiest expense to cut.  Grants Pass never budgets what is recommended for replacement of pipes.  We had rationing rates for at least 20 years before we were told that our 80-year-old water plant is falling apart and we need a new one.  Electricity and natural gas utilities started rationing utility rates in the ‘70s, which is why we have had forest fires and gas leaks started by poor maintenance of power and gas lines.

 

Water-rationing rates have spread to cities around the world, making weather more variable and temperatures more extreme worldwide, causing bigger fires closer to cities, sometimes burning right through them, due to lower humidity from much less irrigation.  It’s time to start the Great Ratepayers Revolt by taking control of our city utility rates.

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

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Give us a real break

 

New Water Treatment Plant site, cleaned for construction.

            Council decided to give the New Water Treatment Plant Project three million dollars of our ARPA funding for a down payment on our new water plant.  You also plan to give ratepayers a small break on our rates in return.  

At first, the City and The Daily Courier said that the City would cancel the last two years of base rate raises that are supposed to help pay the loan.  But they also said that the unit rate raises for the new plant would continue, as well as inflation and raising the separate new plant debt payment fee.  Lately, Courier articles and City staff have become less specific about which rates would be curtailed.

If you stop increasing base rates, but keep increasing unit rates, as unit rates rise, ratepayers will collectively cut back further on water use, decreasing revenue.  This will make the City raise unit and base rates to cover the overhead, the monthly cost of having a water plant, clawing back our expected $8 savings on the base rate.  Or the City might dip into the ARPA $3,000,000 to cover it, decreasing our future down payment and increasing our interest.

If you stopped the new plant unit rate raises instead of base rates, we would be paying more from base rates and no more for our use, and our rates might stabilize. 

When you passed the new plant payment fee, we were told that it would not rise by inflation and would go away when the debt was paid.

We were not told then that the fee would not cover the whole loan.  Twenty-two percent of eighty million dollars is being put on our base and unit rates, increasing by 5.28%, plus inflation, yearly for five years, will never go away, and will rise by inflation, every year until this rationing rate system is reformed.

You, our Council, can set base rates to cover all overhead: debt payments; operations; administration; maintenance; and actual inflation of plant costs.  You can lower all unit rates to one rate, paying for only unit costs, which rise and fall with our water use.  This was the way we paid for our plant and the cost of producing and delivering clean water with it, for over fifty years.  Grants Pass was watered; rates were low and stable.  To return to that rate system would be a real and permanent improvement in our health, wealth, safety, and happiness.     

Speech to the Grants Pass City Council, 12-1-2021, shared with the Josephine County Commissioners, published at GardenGrantsPass.blogspot.com.

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

Why Should We Save Water?

 

            I agreed with ninety-five percent of the Mayor’s Proclamation, “Imagine a day without water,” I really liked the word, “vital.”  I agreed right up to the end, where she asked us to please help the city provide clean, pressurized water by conserving it.

          How does buying less of the product the utility is selling help the utility, the ratepayers or anything in any way?  Selling water is now vital to paying its overhead.

Utilities are high-overhead businesses.  From the time our water system was built until the nineties, we paid all the overhead, the monthly expenses of the system, in monthly base rates, and only marginal unit costs in unit rates. 

No matter how much or little we used the service, the overhead was paid every month and base and unit rates stayed low and stable.  If we had a breakdown in the plant that kept it from treating any water for a month or more, the overhead and unit costs would still be paid, and our water utility would not go bankrupt.

Since sometime in the nineties, ratepayers have been charged rationing rates on water, with a lower base rate and higher unit rates.  Unit charges were most of my bill in summer of 2001.  But few people stopped watering until 2006, when rates were restructured to greatly discourage irrigation.  The base rate dropped more, and units were hiked enough to make many people stop watering, the easiest use to cut, as the Great Recession began.  Banks didn’t water their repossessed properties, either.

Two years later, Staff told the Council that the new rates were working too well.  People had conserved so much that the utility was unable to pay its overhead!  Staff asked Council to raise the base rate back to where it had been before, which would stabilize the rates. 

But use kept dropping, and both base and unit rates kept rising.  Unit rates are too high.  We’ve been chasing the overhead and cheating on maintenance ever since as rates keep rising faster than inflation. It is the easiest overhead item to cut, just like watering is for homeowners and banks.  Now our ninety-year-old water plant is slowly falling apart and we have to build a new one.

I had a live-in boyfriend.  After two years, I knew I couldn’t marry him.  After ten years, I decided to stop making the same mistake every day and gave him thirty-day notice. 

We’ve had over twenty years of water-rationing rates, fifteen years of seriously rationing rates.  When will we stop making the same mistake? 

                             

Three-minute comment to the Josephine County Commissioners and the Grants Pass City Council, 10-20-2021

 published at GardenGrantsPass.blogspot.com

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

Council: Don’t waste our federal funding

 

Our old water treatment plant, still going strong, but slowly falling apart.  The new plant will produce the same amount, but will have room to expand, about 3 blocks behind that big red roof.

            In the July 13^th Daily Courier, we are told that the Council is thinking of using 3 million dollars, a good third of our federal Covid relief funding, to pay for two years of rate increases for the new water treatment plant, an average of $8 per month that would not be added to our bills.  Since we use more water than average, my family would benefit more than most. 

            But such a small benefit would be hollow and temporary, compared to reforming our rate system to pay for all our overhead with base rates and charging only marginal unit costs to our unit rates, the way we used to pay for water when this city was clean, green, beautiful and safe from wildfire.  It is better to take the debt payments off our rates entirely and charge us all but the 18% paid by the Urban Renewal District in our debt payment fee.

We were told, when the debt payment fee was passed, that it would never increase and would go away when the debt was paid.  We were not told that 22% of it would go onto our base and unit rates, where it increases by inflation every year and will never go away.

Some councilors, the Courier said, want to thank essential workers for staying on the job by giving them some federal money.  This is problematic.  Which jobs are essential and who holds them?  How do you find out?  Do the relative few who are paying attention apply and prove it?  It would only cause resentment, dividing residents into classes and paying only some. 

Any money you would give to essential workers would be little compared to what they would gain when you reform water and sewer rates, making it cheap to use water and free to use sewer, like we used to.  A lot of those essential workers are sharing housing and paying more than they should for water and sewer because of water-rationing unit rates.

Housing is what you should spend all that federal money on, starting with two cheap places to shower and sleep for those without secure shelter.  With a few million dollars, you could build a couple of large hostels that can house all our unsheltered residents.  They would be sustainable, because they would be cheap to use, not free.  When you reform our water and sewer rates, they will be more sustainable.

 

Speech to the Grants Pass City Council, 7-21-2021, published at GardenGrantsPass.blogspot.com

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

Council: A Restrained 4th of July

 

            Though we had no official fireworks show this year, the unofficial show of both legal and illegal fireworks in my neighborhood was surprisingly restrained.  It seems last year’s Almeda fires awoke many residents to the fire danger that has been building over decades of rationing water by rates and poor enforcement of our weed codes. 

This year, the City has certainly been keener to enforce our codes regarding seeding weeds, and to obey them as well.  I was delighted to see the railroad weeds cut, and to see seeding and dry weeds being cut almost every time they are called in. 

But we should not have to complain to enforce our weed and trash codes.  That was a job for police and fire until 2006.

            As I walk neighborhoods, putting flyers to “Contact our City Council and Manager” on doors, I have not been talking to many people.  But I am also giving gardening leaflets and these flyers to store clerks and others as prizes.  Nearly all agree that it would be good to reform our rates so everyone can afford to water their yards, protecting our city from fire.  “Protecting our city from fire” really strikes a nerve this year.

            We all know that water stops fire.  Green grass does not burn, and neither do most green plants, if they are kept watered.  After plants flower, go to seed and dry out, they burn hot and fast.  That is why we have a weed code that mandates cutting or killing weeds before they flower and go to seed.  

Fire danger is a major reason we built our water plant.  Before that, Grants Pass burned, as many cities did without pressurized water to put out fires and to water yards so fires don’t spread. 

            From the time we built a water plant until we started rationing water by rates in the ‘90s, the rates were kept as low and stable as possible, so residents could garden their city, and so pressurized water to fight fires would be as close as the nearest spigot or hydrant. 

            The city paid all the plant overhead with our monthly base charges and covered only unit costs with unit prices.  We paid for the water system with our monthly charge, and the water was nearly free, so everyone with a yard was free to garden and protect their neighborhood with water.  We must return to that rate system.

 

Speech to the City Council, 7-7-2021, published at GardenGrantsPass.blogspot.com

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

Council: Cheap water bought fire safety

 

Honorable Council, Mayor and Manager,

            I was looking over the water section of your website and looked at “The Value of Water” page.  Three brochures were listed and shown: “Clean Clothes;” “Clean Drinking Water;” and “Treated Wastewater.”

            You are missing at least one brochure: “Irrigation and Fire Safety.”  But your pricing of our water does not reflect this.  Your price discrimination between customers and their uses of water has irrigation and fire suppression paying the same top tier price that single-family homeowners pay, which shows that you want to suppress these uses the most.  As Staff pointed out in 2008, irrigation uses the most water and it is most easily cut from household budgets. 

Our city is showing the result in brown, often weedy yards that could burn at a spark.  Last year’s fires have people on edge; they know that Grants Pass could burn in the next katabatic wind event like that of last September. 

Grants Pass did burn, as did many cities, before it had a water treatment plant.  It was rebuilt with brick.  I am sure that they built the water plant to allow our residents to keep their property safe with pressurized water.  They priced water as cheap as possible by the unit and paid for the overhead with base rates.  There was no competition; water service is a natural local monopoly.  The City did it so people could afford to use as much as they needed for every conceivable use.  It resulted in a clean and beautiful city in the 80’s.

Green grass does not burn.  Dry grass and weeds burn hot.   Fresh, cleaned water is not scarce or precious and should not be priced as though it is.  It is abundant and vital to our health, hygiene and fire safety and should be a cheap as possible to use.  Those big storage tanks on our hills give us the pressure to use cleaned water effectively for irrigation and fire suppression, all over the city, making our cleaned river water far superior to water delivered in ditches.

We used to have only one unit price for those who paid the base rate, and it was low, as it covered only the unit costs, those that change with the amount of water produced.  All of our overhead: plant; pipes; equipment; personnel; debt and maintenance; were paid through base rates, monthly charges for monthly bills.  You could go back to that system well before September.

 

Speech to the Grants Pass City Council, 6-16-2021, published at GardenGrantsPass.blogspot.com

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

Council: Act like Regulators

 

Honorable Council, Mayor and Manager,

            At our last meeting, I chided this Council, especially the member who wanted to nearly double our bulk water rates from $6.05/1000 gallons to $12 just to see what happens to demand.  The Council passed the increase unanimously, so you all share in that decision. 

It seems that little will happen to demand for that water, because the actual price of the water is still low compared to the cost of hauling it.  Water is, after all, not a scarce, precious resource; it is abundant and vital to families and farms in our county.  Even hauled water is a monopoly, because the cost of time and fuel exceeds any savings that might be realized by hauling water from Medford at $1.25/1000 gallons.   This explains how Cave Junction can charge $30/1000; they are just as far from us as we are from Medford.

            The Councilor who proposed this rate hike for our rural customers replied that he represents the citizens of this city.  If you truly represent and act as regulators to protect the residents of Grants Pass from the monopoly power of city utilities to run rates up to whatever the market can bear, then you would reform our water and sewer rate systems back to what we had before water rationing rates became a worldwide fad over the last 35 years. 

For over 50 years, we paid for all the overhead of our water plant, the expenses that do not rise and fall with our use of the service, in our monthly base rates.  We paid only marginal unit costs, which rise and fall with use, in our unit rates.  Sewage treatment was all base rates with no unit rates not long ago.  Unit rates for wastewater cleaning are oppressive to larger families who are often low income and multi-generational.  Overpriced water is oppressive, too.

Returning to the old rate system would pay all the expenses of our utilities at the least cost to customers every month and allow us to use all the water we want at a low price, as we did in the ‘80s and before, when our city was clean, green, and safe from fire because we put millions of gallons in the air every day of the growing season with our sprinklers and water vapor spread through the surrounding countryside for miles.

Please put utility rate reform on your agenda so we can all water our city and make it clean, green, beautiful, and safe again.

 Speech to the Grants Pass City Council, 6-2-2021, published at GardenGrantsPass.blogspot.com

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

We may not need a new water plant

 

Honorable Council, Mayor and Manager,

            I was wrong.  I apologize to the ratepayers, Copeland, and all other businesses on their property.  I was wrong to support taking any part of their property to build a new water plant before all options for fixing the old plant are exhausted.

            I was taken in for years, until last week, by Staff’s assertion that the old plant cannot be fixed because the only clear well is falling apart and we can’t fix it in the time it would take for us to run out of clean water.  But how big is a clear well?  Can we not build a new one outside the present footprint of the building and use it while we fix the old one?  Then we can have two and be able to maintain each as needed.  We can proceed to fix the rest of the failing masonry while doing seismic retrofitting and then keep it maintained.  We can certainly do it for less than $81 million. 

            At Monday’s workshop, Staff went over the history of the planning for a new water plant.  A second clear well at the old plant apparently has never been considered. 

Staff did say that they considered taking several properties next to the plant to rebuild parts of the old plant while operating it, but that it would be too complicated to have to negotiate with several landowners.  As though negotiating with the Auslands, helping them and their multiple dependent businesses relocate, and paying for all that is simple or cheap?  We have been negotiating for well over a year, and now we will have to go to trial of the need to build a new plant, with full discovery, to justify taking their property.

Staff also said that they were looking at the possibility of eventually expanding the new plant to use all of our 45-million-gallon-a-day water right.  That can also be done by expansion of the old site and plant as needed.

Staff said that, of the three water-cleaning technology options for a new plant, the conventional system that we already use is the most expensive to build but is cheapest to operate.  We already have it; we don’t need to build much more of it right now. 

Operations go on forever.  Ratepayers would thank you to keep the technology that will cost us less in the long run, in that historic building that only needs to be expanded, fixed, seismically retrofitted, and maintained to last into the next century and beyond.

 Speech to the Grants Pass City Council, 1-6-2021

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