Members of the public attending the meeting were surprised that the AWA Board would ask for rate increases with their accounting in a state of disarray. As the Grand Jury noted, AWA’s auditor found that “the Agency's bank accounts have not been truly reconciled." Bill Condrashoff questioned, “Why would ratepayers give AWA more of their hard-earned dollars if AWA cannot account for what they are collecting now?” Under Proposition 218, ratepayers have the right to protest the rate increase. If more than 50% object, the increase will not go into effect. At the meeting, consultant Robert Reed gave a presentation on the still incomplete System-Wide Water Rate Study.
The rate study recommends raising rates five times over a 4-year span. In the first year, AWA’s 7,000 water customers will pay an additional $1,195,700 for water (an 18.5% increase). Four years of “automatic” Consumer Price Index (CPI) increases will then follow, giving a total customer water rate increase of 31% (assuming inflation is 2.5% per year). Over the first five years, the increase will generate an additional $7,900,000 ($1,100 per customer). In the rate study, Reed noted that the “automatic” rate increases may not be enough and that “additional water rate increases might need to be considered within the next five years…” The proposed rate increase is a further subsidy of the 16 specially favored landowners participating in the Amador Water System Community Facilities District.
Reed’s presentation showed that the CFD will generate only $120,000 to help with the debt service on the Amador Transmission Line. However, Reed’s March 2012 rate study assumed the CFD would generate $300,000. The $180,000 shortfall required an additional 4 to 5% increase to AWS customers. The Grand Jury found that the AWS CFD “appears only to be beneficial to a select number of developers and may not make any substantial decrease in the ATL loan debt.” The AWA Board asked to review the rate increase notice before it is mailed to ratepayers. AWA attorney Steve Kronick said that the Board may need to hold a special meeting before the next regularly scheduled meeting on August 9th to approve the notice. Once the AWA Board approves the rate notices, they will be mailed to all water customers and landowners with water connections. Ratepayers will have 45 days to protest the increase. If more than 50% object, the increase will not go into effect.
- $137,004 salary
- $500/month car allowance
- $60/month cell phone allowance
- Health insurance for Mancebo and his dependants
- Dental Care
- Vision Care
- Life Insurance $300,000
- Personal Disability Insurance
- Worker Compensation Insurance
- Retirement Benefits
- 25 Days Paid Vacation Leave
- 12 Days Paid Sick Leave
- 15 Days Paid Administrative Leave
- Paid Holiday Leave
- Other Discretionary Benefits