Dear Editor,
Stanley Williams, CEO of the Santa Clara Valley Water District
ended his letter to the editor by saying
”
We believe that the level of reliability and quality of the
water we provide is what the community deserves and expects
”
.
Dear Editor,
Stanley Williams, CEO of the Santa Clara Valley Water District ended his letter to the editor by saying “We believe that the level of reliability and quality of the water we provide is what the community deserves and expects”.
We expect more and deserve better. We don’t expect an increase of wholesale water rates of 877 percent in the 18-year period. We don’t expect this level of increase when compared with other utility bills or the cost of living. Apart from reliability and quality, we expect the district to be the low-cost supplier of wholesale water.
Not long ago, we talked to Fred Angelino, an amazing and vital individual, who’s 88 and past president of the Gavilan Water Conservation District.
He talked extensively about water in South County and the GWCD. The 35,000-acre GWCD extended south of Tennant in Morgan Hill to the San Benito County line. They built and controlled two dams, purchased and operated the Church Avenue percolation ponds, participated in financing the construction of the Gilroy reclamation facility, cleaned creek beds for percolation and maintained and managed the groundwater for 50 years. They were not involved with flood control.
Fred said there were five people on staff, a maintenance man, secretary, one part-time engineer, one part-time attorney and an office manager.
He had a box of records. Ending June 30, 1985, GWCD’s annual outside audit showed salaries and benefits were a whopping $139,304. The total budget: $505,286. This included amortizing capital projects. When voters dissolved GWCD in 1987, the land size of the Gavilan Water District was 61 percent of what is now Zone W5 in the SCVWD. Under the auspices of SCVWD, Zone W5 was created in 1987 and included the Llagas and Coyote subbassin extending south of Metcalf Road.
Today, SCVWD charges South County $10.9 million to run the water utility program. Of this, $7.9 million is for reservoir and groundwater basin management.
The $7.9 million doesn’t cover imported water costs or capital amortization. If SCVWD used the spending mindset employed by team Gavilan, the $7.9 million would not exceed $2 million. Using the Bureau of Labor Statistics CPI calculator, GWCD’s 1985 budget of $505,286 would be $920,000 in today’s dollars. That would leave $1,080,000 to hire engineers, technicians, accounts, etc to support South County reservoir and groundwater management.
SCVWD’s district labor cost in fiscal year 1985/1986 was under $15 million. In today’s dollars that’s a little under $27 million. The current SCVWD budget recently approved by the county Board of Supervisors shows district labor costs (salaries and benefits) to be slightly under $106 million. Ratepayers shoulder this largess. As a percentage of total district revenue sources, the $106 million represents 46 percent.
SCVWD appeared before county supervisors Aug. 9 for the purpose of adopting the budget. Included in the budget was another rate increase of $15 per acre feet for North and South County. Mr. Williams said district staff started with a plan for no rate increase. However it was requested on the part of the water retailers … the district had been over ridden by the retailers.
There are 13 water retailers served by SCVWD. Three are on record for supporting a rate increase – the San Jose Water Company, Santa Clara and Sunnyvale. Mr. Williams cited increased costs for buying imported water, chemicals and improvement to treatment plants. Of course, South County has no treatment plants or need for the chemicals required in those plants.
SCVWD has an overhead problem. In 1977, 300 employees provided services required for Santa Clara County. Now there’s 800. The organization needs to be right-sized. Do more outsourcing. Make a list of what’s realistically required versus what’s nice. Cut out nice. Fund capital improvement projects with voter approved revenue bonds or general obligation bonds. Voters will help trim nice. Adopt the Harvey Rose audit suggestions. Eliminate the word “cost-effective” from your mission statement. Replace it with “The district will be the low-cost water retailer.”
Bob Cerruti and Terry Mahurin, San Martin
