Resentment builds over water rate hike

By Daniel Wolowicz and Stephanie Bertholdo Acorn staff writers

Facing a recent 10 percent increase in water rates, residents in Triunfo Sanitation District have only one course of action—they must pay. But because ratepayers don’t have a fully elected board of directors representing them, critics have begun questioning the board’s accountability.

The Triunfo board voted 4-1 to increase drinking water rates as of May 1. Typical customers who use about 11,000 gallons per month will see a $3 increase in their bills. Officials blame the rate hike on a state-mandated shift in property tax revenues away from local agencies, such as Calleguas Municipal Water District, Triunfo’s provider.

Triunfo encompasses about 50 square miles in southeast Ventura County, including Oak Park and parts of T.O. and Westlake Village.

Ventura County Supervisor Linda Parks, who serves on the board, was alone is opposing the rate hike.

The increase exposes problems in fiscal management of Triunfo Sanitation District and a lack of public accountability, Parks said.

During the board’s March 28 meeting, Parks requested that all board members be elected. Currently, Oak Park residents elect only two board members. The other three are appointed, including Parks. Her motion failed.

To provide accountability, Parks wants all customers who live within Triunfo’s service area to vote for board members.

Parks is calling for elected officeholders because, she said, two appointed board members, Dennis Gillette and James Acosta, have conflicts of interest. The two are members of both the Triunfo and the Ventura Regional Sanitation District boards of directors. The VRSD provides administrative services to Triunfo. Parks believes that because Gillette and Acosta sit on both boards, other area water providers, such as California Water Service, can’t compete fairly for contracts. Gillette is also a Thousand Oaks City Council member.

Don Jensen, Westlake Village district manager for Cal Water Service, said his agency didn’t receive "full disclosure" when it made a bid in 2004 to manage the Oak Park Water Service, Triunfo’s potable water division.

Jensen also said that one of the primary reasons Cal Water didn’t get the Oak Park bid was VRSD’s promise to Triunfo to move two water tanks from Santa Barbara and reinstall them in Oak Park to save money. The plan never came to fruition. VRSD was awarded a 10-year contract.

"It didn’t feel like the process was handled as well as it could have been," Jensen said.

"I’m sorry he feels that way," said Gillette. "But we made that decision for the same reason we make all of our decisions––it gave the best service at the best price to the people in our district."

When the board voted to extend VSRD’s contract in 2004, Parks charged that the vote was tainted by conflict of interest. Ventura County attorneys convinced Triunfo to vote again and to publicly state that Bill Smith, Triunfo general manager; Mark Zirbel, lead counsel; and Triunfo board members Gillette and Acosta are all affiliated with VRSD.

Gillette said Parks has no reason to question the integrity of any of the board members.

"VRSD provides management services to Triunfo, which enables Triunfo to operate at the absolute lowest cost possible," Gillette said.

As for a conflict of interest, Gillette said VRSD only provides administrative and engineering service on a limited basis.

All water providers in the area obtain potable water from the same source—Calleguas Municipal Water District, whose rates are set by the Public Utilities Commission, but since private companies are purchasing the water, they can charge higher rates, officials said.

Can it be changed?

Parks said board members initially told her that the complicated water board structure couldn’t be changed.

"The composition of the (sanitation district) is unique in the county," Parks said. Only the two elected board members, Ron Stark and Norma Callero, are required to live within the Triunfo service area, according to Parks.

"I support letting residents vote for their representatives on this public board," Parks said. "I also believe the board members should have to live in the service area."

Allowing voters to elect their representatives, Parks said, would provide residents with "greater accountability and oversight."

Although Gillette admitted that Oak Park rates are among the highest in Ventura County, he said Parks’ proposal strays too far from existing procedures.

"To significantly alter the structure of Triunfo you’d have to arrive at a finding that the current system is somehow damaged or broken," Gillette said. "I don’t believe it is, and I don’t believe it needs fixing. I don’t think it’s even bruised."

Gillette fears additional bureaucratic problems if the board becomes fully elected.

Other officials say the system isn’t set in stone.

"Basically, the conclusion is that the Triunfo board itself can change its structure to one of several different forms pursuant to the procedures and requirements in the County Sanitation District law," said Everett Millais of the Ventura Local Agency Formation Committee.

Stark, an Oak Park resident, opposes restructuring of the board. He said the board is involved with too many critical issues. A push toward an all-elected board would be counterproductive, he said.

Bad investments?

In 2004, the Triunfo board voted to move $10 million of its $11 million from a Ventura County-managed cash pool into an account co-managed by Wells Fargo and Allegiance Capital, Inc.

That move cost Triunfo an estimated $160,000 in interest, Parks said. The lost interest would have covered much of the recent rate hike, she said. Gillette said the decision to transfer funds was made for long-term planning. He hopes to have representatives from both Wells Fargo and Allegiance attend the next board meeting to talk about Triunfo’s investments.

Projected interest income for Triunfo’s annual budget is $513,000. Budget figures show the investments have made only $108,150, about 40 percent less than what they should have.

"I think we have to investigate it," Stark said. "I’m very dissatisfied with the amount of money we’re getting in interest, but I want to hear both sides."

Triunfo’s budget has a $457,200 deficit, which may grow to more than $700,000 by the end of the year.

Parks said Triunfo recently spent $2 million to expand sewer capacity for Ahmanson Ranch––a project that’s been scrapped.

In addition, Parks said Triunfo recently spent $500,000 to end a longstanding lawsuit with Las Virgenes Municipal Water District, Triunfo’s joint venture partner in sewage management.