News and Notes from Tustin Councilwoman Deborah Gavello
November 2009
• WATER ISSUES IN TUSTIN
I plan to continue to bring my reusable water container to all council meetings. I have asked the staff to give us Tustin Water in a pitcher for all council meetings, and I am still waiting for that to occur. Why aren’t we using Tustin Water all the time? (The city of Irvine has banned plastic water bottles on the dais.)
I voted with the majority to not increase water rates for the ratepayers that use the Tustin Water services. I had an alternate proposal. My option was to request proposals in order to save the ratepayers money and have another provider take over the water system. My numbers proved the fact that the City of Tustin would have to pay exorbitant rates for bonds: our city doesn’t have the cash, on hand to secure an AAA rating for any bonds that it sells. (The city of Tustin most likely has such a low credit rating, such as an “A” or lower: hence the larger cost of borrowing money. Another provider, with a great deal of cash could borrow the money at a much lower cost, thus make the needed repairs, but save millions of dollars on lower fees and lower bond rates): My numbers are below:
WATER BOND FINANCING
FINANCING $45,000,000 AT 6% FOR 30 YEARSS IS $97,127,280
FINANCING $45,000,000 AT 6% FOR 20 YEARS IS $77,374,560
FINANCING $45,000,000 AT 3.25% FOR 30 YEARS IS $70,503,480
FINANCING $45,000,000 AT 3.25% FOR 20 YEARS IS $61,257,360
THE SAVINGS ON A 30 YEAR BOND IS 26 MILLION DOLLARS
THE SAVINGS ON A 20 YEAR BOND IS 16 MILLION DOLLARS
A provider such as Irvine Water District, or any other provider with the ability to borrow cheaply, would save approximately 20 million dollars in borrowing costs. We bought the water system 29 years ago, and I was told the council members at the time were hoping it would be a cash cow. Instead it has been a cost center, and currently eats away $1,000,000 per year from the general fund. In other words, the residents in Tustin Ranch are subsidizing the water for the other residents who use Tustin’s Water Service. In addition, portions of the city staff’s salaries are allocated and cross charged to the water department.
• AROUND TOWN
Having beautiful and active Parks for the residents of Tustin is one of my major priorities. Opening the Citrus Grove Park has been one of my priorities since I took office. It's finally happening!
The park opened for a dedication ceremony on November 5th, and will be shut until the grass and trees get a chance to grow. It will be open to the public in January. The best part of the park is the view from the top of the hill. I hope many families will enjoy this park for years to come. Prior to being elected to the City Council, I led a “grass roots” movement to get this park built. I will continue to fight for other parks to get built so my constituents can have a place for their children, and themselves to enjoy. Unfortunately, even after this park opens, we are currently ‘under-parked’ in the city of Tustin. (# of acres of parkland per # of residents)
• CROSSING GUARDS
I made a motion for two crossing guards, one at Tustin Ranch Road near Ladera Elementary, and one across from Peters Canyon Elementary be brought back if the parents could raise ½ the money, or the school district would chip in, and the city could then pay ½. It died for a lack of a second. I knew how to pay for one of them.
(We could save $400 a month, and pay for ½ a crossing guard if we didn’t have an expensive catered dinner before the council meetings. Savings would add up to about $4,500. I have asked the city manager to provide us with less expensive take out food, and save the taxpayers money. I have been bringing my own dinner in to our closed session meetings.)
• FDIC INSURANCE ON CDS
Certificate of Deposits (CDs) pay higher rates for 100% insured money than some of the other investments we currently have in our investments. One can pick banks that are well capitalized and financially sound. In addition, to better protect the city’s money, only keep FDIC insured amounts at any one institution. It is one of our choices in our investment policy, that isn’t being utilized. Our current treasurer told me, “It is too much work.”
I have read five other cities investment policies and how they handle their investments. Several cities have elected Treasurers, such as Brea. Some cities have Treasurers who are employees. Other cities have the Finance Director make the city’s investment decisions, with the oversight of the City Manager; and in some cities a council member is on the oversight Finance committee. We do have better choices on how to best handle our investments going forward.
• STATE WATER PROJECT TOUR
Assembly Member Jim Silva invited and joined us on a Metropolitan sponsored state water project tour. The bus was full of elected officials and other members of the public that had an interest in the Delta and solving our states water crisis. The tour started at Oroville Dam, which collects water from the snow capped mountains. We visited the Sacramento River, drove on the levees, and drove through several of the islands that are still farmed although the land is owned by the state, and leased back to the farmers. The over farming is killing the land around the Delta. We went to see where fish are actually dumped back down a tube back into the Sacramento River. They were trucked in from further down the river where they were screened out. I was amazed that the homes in Sacramento don’t have water meters, because they have so much water. The water issue has a lot to do with North vs. South, and all the farmers in between. The question is, whose water is it?
During the week of November 9th the state legislature passed an 11 billion dollar water project to fix our state water problems. It covers some of the following areas: Developing Ground Water reliability, water recycling, Storage, restoring Delta, handling drought in Southern California, education, etc.
The missing piece is who is going to build and pay for the peripheral canal, or the tunnel to bring the water around the Delta.
For 11 billion dollars, I wish that piece of the pie were in the package. I believe the issue is not a partisan one. It is an issue in which I had wished all the Southern California members could have voted together. Several Republican members and Jose Solorio our lone Democrat from the area voted for the bonds, but our two members in Tustin, Chuck Devore and Jeff Miller, both voted against it. The Governor signed the bill, SB 2 X7, on November 9th. (I will attach a summary of the bill on my web site)
When I read one of the bill drafts last week, I got through about 75 pages of reading. I don’t understand why there isn’t more time for the public to read and ask questions on huge bills, before they are pushed through a vote.
If you would like to go on a water tour, let me know and I will arrange it.
• CELL TOWERS IN TUSTIN RANCH
Several different carriers are looking at putting up a site for cell towers at Citrus Grove Park. I encouraged staff to have Verizon and AT&T look at the site as well, as those two carriers are the ones the residents have asked me about the most.
• ACTIVITIES
The Dino-Dash was a lot of fun. I volunteered at the finish line this year, and was so impressed by the numbers of people that compete at all levels. How lucky we are to have had wonderful weather in November. I challenge my fellow council members to run the 5K next year, the winner becomes mayor the following December.
Deborah Gavello