He said certainly if a project benefits existing rate payers then thy will pay for a portion of that project. Kathy Allen of Amador Citizens of Smart Growth asked if Cost of Participation or COP bonds, sold by the water agency to fund capital improvement projects are driving the proposed rate increases. She asked “What benefit did the citizens of Amador County get from improvements made with those COP funds.” Abercrombie said a majority of that debt is for the Amador Transmission Pipeline, he again emphasized that the construction costs of that project soared from 13 million to 19 million dollars in a period of 7 years due to ongoing litigation over the certification of the EIR. Other uses of the COP debt included land acquisition for a future treatment plant site, as well as interim improvements to Tanner and Ione Water Treatment plants.  Abercrombie explained that by doing these projects it increased capacity and reduced water evaporation and loss from the system. Also gained he said was reliability.“People that are on flat rates, which are low volume users, are switching to meter rates because it is less expensive.

To determine flat rate customers costs the agency determines what the volume is on the average for all flat rate customers and then establishes a cost allocation so that those rate payers are paying a fair share.” In other words, if there is a flat rate user that is a low volume mixed in with a group of high volume users they are basically being charges as if they were a high volume users, and that, stated Abercrombie, is why so many are switching to meters. Agency staff then added that flat rate users are becoming a thing of the past- as new users are required to have a meter and flat rates users are slowly switching over. Frances Farmer approached the board and addressed some comments that had been made. She said, “I am feeling offended by your comments about us not attending meetings.” She was referring to comments that were made by staff about items or situations that were discussed in detail at a previous agency meeting.

Farmer went on to say she just recently retired and that is the only reason she was able to come. She suggested that the meetings be held at a different time other than a workday morning. Farmer also suggested that instead of the agency staff saying that 7 years of litigation caused the increase on the Transmission pipeline that they instead explain that they were caused by inflated construction costs over a period of 7 years, when the agency was in stalemate on the certification of the EIR. Jackson resident and former council person Marie Louise Solaja got up to speak and said, “It boggles my mind that we get water from Mokelumne River for nothing and the rates we pay are higher than the cities of Alameda and Oakland which East Bay MUD services. It boggles my mind that a small water agency has a budget for 2.5 million for salaries and benefits too.”  

The most heated discussions occurred when the board took periodical breaks, as at one point a conversation got so loud that it could have been heard outside of the meeting room with the doors closed. Two local citizens had cornered the agency’s Financial Manger Mike Lee and were asking questions about the agency’s capital improvement budget. Lee took the confrontation in stride and never raised his voice, but General Manger Abercrombie intervened, and at one point said that he would like it if the two citizens would allow the agency staff to finish their sentences before they were so rudely interrupted by other statements or questions. Lee told the two during the course of the discussion, that he would be willing to sit down and discuss it in further detail.   Ultimately, the Board of directors voted to approve the 3 year financial plan and proposed rate increase, but with the condition that they revisit it every year for the next three years to see if the 12% raise is still needed, or if it could be reduced and the agency still able to meet their debt service obligations. It passed on a vote of 4-1 with Heinz Hamann voting against the rate increase. (end)am Jim Edmonds asked why his bill as a flat rate user is suddenly jumping 47%. Abercrombie explained,