Merrie Schaller, a resident of the mountain community of Lompico north of Felton, says she lives in a “split household” when it comes to a proposed rate increase for the turbulent Lompico County Water District. Schaller doesn’t plan to write a letter to the water department opposing the hike, but her wife does. The water district’s bi-monthly bills are already the highest in the county—about $125 every two months. But department officials say they are trying to fix a leaking infrastructure and overcome a history of mismanagement and fraud. “I hate it,” Schaller says, “but I understand it’s necessary. It’s a complicated issue.”
That rate hike of about 20 percent per customer will go into effect Nov. 1 unless more than 50 percent of households write letters opposing the hike or speak up at a Sept. 29 hearing. As of late last week, the department had received 11 letters. It would take about 256 more—or a very long comment period this Thursday—to block the increase.
The state of the water department, which is also discussing a possible merger with the San Lorenzo Valley Water District, has rarely seemed so uncertain. The controversial move would dissolve the Lompico board. The idea is contentious within Lompico Canyon, with a passionate opposition spearheaded by board member Sherwin Gott—even though the move could save Lompico residents on their water bills by bringing rates down to SLVWD’s price, which are currently about $45 per month. That’s 30 percent less than Lompico’s current rate and 40 percent less than the rate if the hike goes through.
But, as Lompico resident and skeptic on the merger John Cunliffe says, “It isn’t always about the money.”
Into the Office
With bickering, flying insults and passive aggressive comments, the Lompico water board’s monthly meetings are some of Santa Cruz County’s best live theater. At last week’s meeting, board members could be heard sneering, “Silly!” “Shut up!” and “I get ignored over here.”
The controversial merger and fee proposals aren’t even the latest developments to raise eyebrows in the district. Those came last week. First, it came to the board’s attention that people might be dodging their required “ready to serve” fees—a flat rate for all customers—because revenues have been fluctuating each month. The board agreed to look into why those numbers weren’t staying constant. Later, it came to light that the Lompico Community Center has received discounted rates and service, perhaps in violation of state law, according to the department’s lawyer. The board also spent 20 minutes discussing whether or not to fire a district consultant who has not shown up to work or answered his phone in 60 days. (The board eventually decided to keep him as an on-call employee at an hourly rate).
The big issue for the moment, though, continues to be the rate increase. Money from the proposed $80,000-per-year boost would go a few different places. It would begin to pay for a $60,000, 14-item grocery list of needed tank liners, piping and filters to a system that routinely breaks. The district suffers about one lateral connection failure per week, sometimes more, due to old pipes and high pressure. The hike would also begin to build up a financial reserve for future projects and pay a $100,000 settlement to a former manager over the next five years.
“A lot of the problems have to be blamed on past boards,” says Rick Harrington, the current board president. “Now, I’m not going to point out individual names because that’s just unnecessary. But certainly I think most of the present board has been very urgent in their efforts to make things right.”
In regards to previous management, Harrington is referring in large part to Mike Eggleston, the former district manager to whom residents constantly refer no matter how hard they try to avoid it. His legacy lingers despite the agency’s attempts to put it behind them. Currently facing five felony and four misdemeanor counts for his actions as manager, Eggleston’s leadership, which ended in 2010, was tainted by a grand jury report that found “district management has had too much control, which has led to questionable hiring practices and accounting of district funds.” It is in part Eggleston’s $20,000-a-year settlement for lost vacation time that the district is working to pay off.
Around the Bend
Skeptics have raised questions about the hike, which is large enough to frustrate already burdened water customers but too small to fix all the district’s problems. Some accuse the board of trying to put the merger on a fast track, while others accuse the board of delaying it. Regardless, after listening to a recitation of the district’s required repairs, the rate increase looks a little like putting a Band-Aid on a cracking dam.
“The rate increase was approved arbitrarily,” says boardmember and merger opponent Sherwin Gott. “The rate increase wasn’t approved with a long-term plan of what we’re going to do.” He did not offer specifics for any alternative.
Debra Loewen, a resident of Lompico, has written the water department in opposition of the hike, which she sees as a “stop-gap” measure to delay the merger, which she does support. “We are in dire straits, and I don’t think this does anything,” says Loewen, who sits on the Citizens Advisory Committee for the merger. Loewen cites an assessment report from 2010 saying the district will need to replace two redwood water storage tanks in the next seven years to the tune of $200,000 or more. She guesses the department would need to double its rates in order to fully cover all its repairs.
“One could argue that. But at the same time, what can the community bear?” asks Harrington. Harrington and Loewen both say the department will likely need a bond assessment—posing an additional unknown monthly cost—to fund the new storage tanks.
It’s a steep price to pay, especially for an agency that, according to Harrington, will see its rates continue to rise if it fails to merge with San Lorenzo. Staff says if the department continues operating independently, it will need to hire a new manager, something it hasn’t done since firing Eggleston.
Lompico resident Steve Stipes hopes they get the merger over with to ensure this is the last rate hike. “I like living up there. As long as the water keeps flowing, everybody’s happy,” says Stipes, who also serves as chief of the Zayante Fire Protection District. “But at some point when you get that bill, you realize that it’s not liquid gold coming out of the faucet. It is actually H20. You gotta say to yourself, ‘What the heck am I paying for here?’”
The Lompico Water District rate increase hearing is Thursday, Sept. 29 at 7pm at the Zayante Firehouse, 7700 E. Zayante Rd., Felton.
