HomeMy WebLinkAbout5/14/2008 - STAFF REPORTS - 00 (2) i
May 14, 2008
Palm Springs Mayor Steve Pougnet
Honorable Palm Spring City Councilpersons
3200 E. Tahquitz Canyon Way
Palen Springs, CA 92262
Dear Mr. Mayor and Honorable Councilpersons:
On behalf of the 17 Palm Springs Neighborhoods that comprise the Palm Springs
Neighborhood Involvement Committee, I ask the City Council to call upon the Desert
Water Agency to continue its water assessment adjustment hearing set for June 3, 2008 to
a later date so that the DWA can provide public information about the need for its water
rate increases. We would also ask the Council to encourage citizens to attend the DWA
hearing at 8 AM,June 3, 2008 at the DWA headquarters.
The PSNIC neighborhoods encompass more than 6000 homes in Palm Springs, all of
which are rate payers to the DWA. Our neighborhood group leaders unanimously
requested that the Officers write this letter to seek the support of the City Council in this
matter.
As the Council knows, the DWA is conducting a mail ballot as required by Proposition
218 before it may raise our water rates. Although the DWA sent out ballots, it has
provided virtually no information about the issues on that ballot. The only information
about the need for a rate increase is included on the April 11, 2008 Proposition 218
Notification.
That Notification states,
"After implementing nominal rate adjustments in past years . . . the Agency
must adjust rates in order to pay increased costs. The significant financial
issues experienced by the Agency are: the purchase of supplemental water
supplies to make our water resources more reliable; significant increases in
expenses such as steel, concrete, fuel, electrical power for pumping, prevailing
wages, and insurance; increased federal, state and local regulatory requirements
and permits; and increased maintenance and delivery costs. Existing rates are
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Palm Springs Office of Neighborhood Involvement Committee, �pHFr C//7r
C/O Bob Mahlowitz, 246 N.Sybil Road, Palm Springs, CA 92262 /'9a94Jd'
PSNIC
May 14,2008
Page 2 of 2
inadequate to meet these financial obligations. Rate adjustments in the past
have not kept pace with the increased costs of providing services. We have had
to use money set aside in our reserves to meet our obligations-"
In essence,the public has been told, `bur costs now outstrip revenue." That's it.
The State Constitution requires the DWA to do much more. Proposition 218, the "Right
to Vote on Taxes Act," was adopted by California voters in November 1996 and became a
part of the State Constitution. Proposition 218 protects taxpayers by requiring local
governments to obtain the consent of its ratepayers.
Because the public has no information,the vote being taken by the DWA is meaningless.
Voters cannot make an informed decision absent information about DWA's costs, the
reasonableness of those costs or the rate and reasonableness of expenditures.
The DWA offers no information on its website. When I went to the DWA in person, I
was initially told there is no public information about the proposed rate increases.
Later, the DWA contacted me and arranged a meeting with their Director of Finance but
only provided information after demanding I complete a Public Records Act Request—
and that is the DWA's policy for sharing any information with the public. Nothing is
made easy at the DWA
Not surprisingly, at the end of the day, the DWA does have clear information it could be
providing about its proposed rates. But it refuses to send out that information. It appears
the DWA thinks it would be reasonable for every rate payer to make a personal
appointment with their Director of Finance.
The City of Palm Springs created the Office of Neighborhoods and the PSNIC to foster
communications between the City and its residents. On behalf of our neighbors, I request
the Council take up this issue and ask the DWA to continue its June 3, 2008 hearing and
provide information to enable us to cast an informed vote.
Sincerely,
Bob Mahlowitz
Palm Springs Neighborhood Invo en Committee
Vice Chair