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Thursday, October 15, 2015

In the new utilty notice, Milpitas is issuing a $25.54 Millon bond and $42 Million in capital improvment expenses.

Another increase in utility fees coming in January and July 2016. Milpitas council already approved a utility fee increase on August 4, raising the water fee from $2.62 to $3.62 even though council members were aware that the city was going to hire a consultant to evaluate the water fees. On Oct 6 Milpitas approved a new utility notice. In August I asked why you’re approving a fee increase when you’re going to reevaluate the fees with the consultant. I got no answer as usual. The new notice will not disclose the city new bond purchase.   

Bartle Wells Associates was hired at a cost of $60,000 because of the San Jan Capistrano court case. The Capistrano residents were overcharged for water and sued the city and won the case.  The consultant advised city of Milpitas to increase the water fees even more by doubling the Capital Improve budget from $22 million to $42 million and take out a $25.54 million dollar bond for financing more projects. The city council members liked the idea so we are going to get a new notice for utility fees in November. The council members never want to miss an opportunity to raise your fees/ taxes. The city just wasted $10,000 for mailing out the last notice. The cost for the $25.54 million dollar bond at 4.25% interest is $1,522,139 every year for next 30 years, which is $45,664,170 to repay the bond with interest. This is not disclosed in your new water utility notice.  Starting in January your water fee will be $4.75 for all parcels, except Ed Leven Park at $3.75, followed in July with $5.13 but that still not enough to pay for bond and capital improvements projects (CIP) so additional charge of $1.30 called “portable capital surcharge” will be added to your July utility water bill, for a total of $6.43 an increase of 145.42% or 2.45 times the current fee.  Your water bill will increase by 8% every following year.  Bond and CIP charges make Milpitas the highest paying water utility bill in Santa Clara County.  Milpitas already has the highest sewer charges in Santa Clara County.  The city  CIP includes supply augmentation (digging for wells) cost $10 million at Dempsey RW $4.5 M, Yosemite RW 3.3 M and Landess RW 2.2 Million and Curiis well 3.3 Million in additional to the $1.3 million already spent for this well. The city thinks it can drill it way out of the water crises. Apparently the city never head about subsidence, which is when you pump water out of the ground and the ground sinks. Annually the city take out $2.61 million out of the water fund to put in the general fund for administration costs reimbursement and will  increasing that amount at 4% every year and of course there are additional personal services that costs of $2.7 million.  I looks like the city has add an new source of revenue for he general fund. These fund are supposed to be separate.  Is the city is pilfering the water fund?  The planning commission approved another 1,069 on Oct 28. The city has already approved over 2,000 this year but that not enough for the city. We have a water shortage but The city wants more more revenue by increasing the number of parcels. It your job to conserve water not the city's job. Anyone want to drink recycled tolite water? Sorry that comming soon.

Next year vote out of office the council members like Carmon Montana that rubber stamp any fee increase to the public and be thankful that Jose Estevez and Giordano are termed out of office. If you have any questions talk to your city council members or email me marini4mayor@yahoo.com .  For more detailed information on new water charges check out the web address at http://www.ci.milpitas.ca.gov/_pdfs/council/2015/100615/item_01.pdf
Next year vote for new council members such as myself to prevent you from being overcharged for services. Your new notice will be coming in your mail so please send in your protest letter and let the council member know you’re not happy with the new charges by indicating the following in your letter:

 Date  _____________________
I protest the proposed fee increase for utilities.
Name             _____________________________
Address or parcel id   _____________________________
                                        ____________________________

Signature           _____________________________

 

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