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Yucca Valley, Ca.- It was a packed room at the Yucca Valley Community Center as the Hi-Desert Water District provided a special presentation to the business owners hosted by our local Yucca Valley Chamber of Commerce. This was one of the series of outreach meetings to explain the assessment districts “How and Why” for the HDWD waste water treatment plant and sewers.
The news was not good news the business owners as they soon realized they would be facing a $100,000 assessment up to $200,000 for their contribution to the sewer project. Ron Hill, owner of the Rib Company, recently expanded the restaurant to open a gourmet Italian Restaurant here in Yucca Valley and that move may have cost him dearly. Not only did he invest in the improvements and upgrades for the expansion, it also increased his water usage which increased his tab to a $200,000 sewer assessment, according to his calculations.
Having attended many of the presentations, the information still seemed overwhelming to hear promises of grants and promises of debt forgiveness by the State of California Revolving Fund by the Hi-Desert Water District Staff. This presentation provided an additional slide which was specific to the business owners but it was too hard to read on the large screen and there were no fliers made available for the audience. HDWD CFO/ Mayor Pro-tem Frank Luckino used the term “365 days” in one statement to calculate annual water usage and then on two following statements accidentally said “365 years.”
A member of a family that recently invested millions of dollars in our community had this to say about this business presentation:
-The information presented is confusing at best. Assessor Parcel Numbers (APN’s) need to be listed with the phases on the website.
-The district needs a “Revenue Requirements and Rate Analysis” which will give hard facts of the cost.
httpv://www.youtube.com/watch?v=ab0aS76We-M
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Thought I would chime in since I am NOT HDWD staff… this past week I attended a discussion in Sacramento with representatives from the HDWD, the Assistant Deputy Director (Grant Funds Water Quality) for the State Water Resources Control Board. Gentleman’s name was Jim Maughan — and he and his staff are the ones who coordinate the disbursement of grant funding for projects such as the sewer system.
Without getting into all the details because I probably wouldn’t do them justice, the water board staff indicated that Yucca Valley would likely qualify as a small, disadvantaged, and high rates community. What’s this mean?? They have access to grant funding at low interest loans up to the ENTIRE cost of the project, they may increase the debt service to 30 year terms, they may receive even lower interest rates, and the board has funding available for “principle forgiveness” (ie grants). They even indicated that these same funds and terms are available to finance the improvements on the business/residential property as well.
So why am I posting this? It seems there are some in the community who are looking for every opportunity to discredit the HDWD, their information, this sewer project, and the individuals associated with this effort. Now these folks don’t need me to come to their defense. But I believe it’s my job to ensure that the debate over decisions in our community is conducted based upon facts. And from what I heard in Sacramento, there are definitely ample low interest capital funds available. The message we were given was “GET YOUR APPLICATION COMPLETED.”
Simply put, the community needs to get the sewer system designed, a funding strategy approved for local debt service, and then get the application to the state board. Clearly not a simple task. And the last thing this process needs is misinformation and turning the debate into a personal attack against staff at any agency. Yucca Valley has a challenge — and the community needs to do what it does best: come together and face the issue head on. You were able to rebuild after a devastating earthquake. You passed a local bond measure to ensure adequate water supply. This community has the means and the will to make it happen, regardless of the rhetoric that surrounds this issue.
Hi Mark:
I believe we should address our waste water issues all right but I was just wondering, and this may be a stupid question, – could the State make such a mandate if the Town were not incorporated? – I’m asking because it seems to me like putting the onus on 30,000 individuals would be incredibly problematic.
I’m not the expert when it comes to water quality but I believe that it has nothing to do with incorporation status. In fact, I believe the folks in Joshua Tree may be next as septic systems begin impacting their groundwater basin. Hence Joshua Basin’s requirements for package plants and their plans to construct a wastewater treatment plant there as well.
According to Ron Hill’s calculations, owner of the Rib Company in Old Town, his assessment over time would be a $200,000 contribution to the sewer project. He’d have to serve up 13,333 meals at $15.00 an entrée. Is his fair, reasonable and business friendly?
The information Mark Nuaimi provides is encouraging. Yet what assurances are they the grant money will still be there while the state is undergoing dramatic cuts and looking for alternative funding from existing state sources to siphon away.
Ron is one of many small businesses that will be negatively impacted. Rather than talk about discrediting HDWD, many people like Ron, Margo and others raise legitimate concerns. If people want to discredit anyone,we need not look further than the HDWD,
As far as the HDWD is concerned, the directors and its financial officer for a long while have sown distrust in the community. That seems to be their nature.
Not sure how HDWD can be “business friendly” without then being unfriendly to some other classification of customer. As I understand the “rate and method” process that their consultants completed, they took a “fair share” benefit analysis and spread the costs over the various customers to the future sewer system. So if a business calculates their assessment at $200,000, they are getting $200,000 / $125 million share of the benefit based upon their projected discharge from their business.
So if you want to provide them a break in costs, those costs then have to be spread against the other customers — like mobile home parks, hotels, single family residential, or other residential uses. From what the HDWD has heard through their outreach, nobody is happy to have this cost impact to their property. But what is the alternative? The Regional Water Quality Control Board is proposing the septic prohibition and if they follow prior actions, they will fine or impose elimination of septic usage… a far more damaging proposition that may eventually end with no residual property value.
What the district is attempting to do is identify as much grant funding and low/no interest bonds as possible. The Town has discussed potential revenue sources as well. Each of these efforts would drop the ultimate cost of the system to the property owners and deal with this issue once and for all. But time is of the essence. The rule has a 2016 deadline and the sooner a project can get to construction, the better the construction bids. Many agencies have recognized 25-35% savings due to the reduced construction costs during this recession. So while the estimate is $125 million, once they actually design and go to bid, hopefully that amount might be reduced, more than 30% of the costs might be grant funded, and the district might also be able to beat the 3.5% interest that they assumed in their debt model. Each of these would reduce the assessment against people’s properties and the community would be able to continue to grow as the economy returns.
What is the alternative? That depends on the the potential of speculative alternative revenue sources. Though should a local restaurant — one that has served and supported the community — be encumbered with $100,000 assessment up to $200,000 for their contribution to the sewer project, it is a bleak business future.It is so overpowering maybe the alternative would be to not do business. That is a business decision some could be faced with.
However, that is the great challenge ahead for Mr. Nuaimi, the community and the HDWD. Meantime the HDWB and its Chief Financial Officer could try and work toward more transparency.
I would not want the Mark Nuaimi’s challenges or his responsibilities. I think he is right for Yucca Valley. He has an important job ahead working to help Yucca Valley continue to be a viable community. His efforts to bring peace between the HDWD and its critics are noble. And the same noble efforts I would guess were taken to his boss, Town Councilman Frank Luckino, also Chief Financial Officer for the HDWD.