Exorbitant Sewer Rates the Result of Mismanagement

By Al Vargas

Present and past EID Boards have neglected their basic functions to provide safe drinking water and sewer service and have consumed themselves with meeting the needs of the special interst. The result is virtually one of the highest sewer rates in the state.

• EID's sewer rates are THREE TIMES the state average (source Black and Veatch 1998, statewide rate survey).

• 90% of the sewer districts in the state charge less than $30 per month (compare with EID's $50.25)

• EID has increased sewer rates 115% in the last three years. These increases put EID sewer rates at virtually the highest in the state (98 percentile).

• EID has a water rate structure that provides subsidies for 'country clubs' and agricultural hobbyists. In fact, residential water users pay the highest rates and as much as SIX TIMES what the country clubs pay for the same water.

• EID marks up it water cost to residential water users by 2,500 to 25,000 percent. For example, the wholesale cost to EID for 0.3 acre-feet of water (approximate annual water usage for a small family) is between $1.05 to $10 depending on the source. EID retails this water to the residential water user for $262. Another words, we pay the most for the worst.

1)EID allowed the Deer Creek plant to deteriorate to the point that it could no longer meet it discharge permit. The deterioration of the plant was documented in a State Water resources Control Board report.

2)The deterioration of the plant resulted in 477 known violations of the discharge permit. The state concluded that there were probably additional violations that went undetected because EID monitoring program was inadequate. Additionally, there were allegations by EID employees that EID was falsifying data and not reporting spills as required.

3)The numerous violations had potential fines of $8.2 million, however the Regional Water Quality Control Board fined EID only $100,000. EID then claimed that the state was out to get them. There was also a settlement to a lawsuit by a sport-fishing group for $400,000.

4)The state ordered EID to restore the plant and meets its discharge requirements. EID claiming an "emergency situation" took out $70 million in revenues bonds without ratepayer approval. Most of this money was used to expand two sewer plants to accommodate growth. How much was spent to rehabilitate the Deer Creek plant is not clear. EID has never provided a complete accounting. Claims of between $6.5 to $10 million have been made.

5)Although they claimed at the time that existing ratepayers would not pay for the expansion, they failed to even assess how much was needed from new development to pay for plant expansions. The short of it is that EID failed to collect sufficiently from new development to pay for the expansion and they dwindled away an $11 million surplus and when the surplus was depleted EID began raising sewer rates. That is why rates have increased 115% in the past three years. Now EID will consider at its next meeting, November 1, to take an additional $15.5 million in bonds, without ratepayer approval, to complete the expansion and build a new headquarters. So expect your rates to increase further.

My 5-point program calls for taking any bond measure to the ratepayers for approval and to require development to pay 100% of its costs. My opponents stated in the League of Women Voters debate that they would not take bond measures to the voters.