Board rejects proposed sewer rate hikes
NILAND — The future of the Niland Sanitary District remains uncertain, following a 3-2 vote by the district board on Thursday to reject a proposed rate hike that would have allowed the district to remain solvent and in compliance with water quality regulations.
The failure of the board to approve the proposed rate hike is expected to prevent the district from being awarded a $5.8 million federal grant as well as a $934,753 county loan that were both aimed at helping the struggling district remain operational.
In the absence of the previously approved grant and loan, the sanitary district will likely be declared out of compliance with state water quality laws, and incur substantive fines as a result, said John Van den Bergh, an environmental consultant who recently conducted a rate study on behalf of the district.
“The fines were suspended under the position that the proposed rate would be approved,” said Van den Bergh with Rural Communities Assistance Corporation. “But now the problem will not be resolved because there is no money.”
Despite the uncertainty that lies ahead for the district, community members who attended the district’s regular meeting Thursday applauded the board’s decision to reject the proposed rate hike, which would’ve increased a residential unit’s current flat rate of $37.74 to $58.
As part of the proposed rate hike, an additional $5 charge would have then increased the sewer rate to $63 by July 1, 2019.
Prior to the board’s vote, many community members spoke against the proposed rate hike, and chided the board for its inability to properly assess sewer fees despite years of having brought complaints of being overcharged to the board’s attention.
Board President Debbie Salas-Rico, who voted for the proposed rate hike, said that much remains to be determined regarding what happens next for the district.
The county as well as the state Regional Water Quality Control Board will have to be notified of the board’s rejection of the proposed rate hike, she said.
Van den Bergh told those present that the state will likely move to place the district in receivership, and possibly sell the district to a private party.
“You’re going to see more state people take over the sewer system and they’re going to tell you how much you’re going to pay,” he said.
As part of the provisions of Proposition 218, Niland residents were also given the opportunity to formally submit letters protesting the proposed rate hike.
A simple majority vote by the town’s 538 parcel owners was needed to prevent the proposed rate hike from being approved, as well as being considered by the board for possible approval.
Yet, an official count of the submitted protest letters prior to the board’s vote failed to meet the simple majority needed to prevent the rate hike from taking effect.
“But now the problem will not be resolved because there is no money.” John Van den Bergh with Rural Communities Assistance Corporation