Hollister must either bite the bullet and pay for new sewer
system or suffer heavy fines
There are zero choices. People seem to understand that the city
of Hollister must charge increased sewer fees to build a new
wastewater system. The alternative is leaden with so many downsides
it becomes almost unthinkable to pursue any other course.
Hollister must either bite the bullet and pay for new sewer system or suffer heavy fines
There are zero choices. People seem to understand that the city of Hollister must charge increased sewer fees to build a new wastewater system. The alternative is leaden with so many downsides it becomes almost unthinkable to pursue any other course.
Still, there are some residents who don’t think this should be their problem. At a recent public forum sponsored by local merchants, one resident said it was like driving a Volkswagen, but wanting a Ferrari and wanting someone else to pay for that Ferrari.
“They shouldn’t force us to shoulder the short comings of the city officials. They got themselves into it, they should take pay cuts if they need to generate more funds,” said Hollister resident Peggy Ivy.
But it may not be that simple. A building moratorium was imposed in 2002 after Hollister’s Wastewater Treatment Plant dumped 15 million gallons of treated sewage into the San Benito River. At that point the Central Coast Regional Water Quality Control Board slapped a moratorium on new sewer hook-ups and gave Hollister until Oct. 15 of 2005 to build a new sewage treatment plant.
Last October, the city averted $200,000 in fines when, at the request of City Manager Clint Quilter, the RWQCB gave the city more time to construct a new sewage treatment plant. At the same time that it granted the extension, the RWQCB gave the city a series of revised deadlines.
The city met its first deadline in December when it submitted a long-term wastewater plan. The other revised deadlines include awarding a construction contract for a new treatment plant by late 2006 and drafting a disposal plan for treated wastewater by March 2007. Each deadline missed will result in more than $66,000 in fines being levied against the city.
The city has lost 2,500 long-term jobs since the moratorium was leveled in 2002, resulting in $100 million in income lost in wages and revenue in the county, according to Community Leaders for Economic and Recovery, a Hollister group advocating getting the sewer project completed.
Declining enrollment in county schools has cost the district $1.5 million per year, reducing teachers and increasing class sizes, CLEAR claims.
Hazel Hawkins Hospital has a bond to build desperately needed new facilities that cannot be constructed until the moratorium is lifted.
A proposed $120 million sewer system project will meet required higher treatment standards, which will protect the groundwater and allow for the reuse of treated wastewater. It will provide additional capacity, but will also provide renewed development. In addition, it will allow much needed expansion for health care, public safety and schools.
The $120 million for the project includes $73 million for the treatment facility; $25 million for a recycled water distribution system and $22 million for a seasonal storage pond system.
At the recent forum more than 60 people showed up to find out how the increases to monthly sewer rate fees would affect them, but nearly everyone in attendance understood the need for them.
“I’m certainly not doing cartwheels, but I guess we really don’t get a choice, do we?” asked Gina Milsapp.
In order to finance the new sewer system, the monthly sewer rates will need to be increased for all customers. Under the new rate schedule, a single-family residential water bill will increase 297 percent during the next five years; from $31.30 per month, to $124.40 per month, by 2009.
The increases will be introduced incrementally, starting with a 48 percent rate hike this year.
City officials seem confident in the hope that the plan won’t have to implement the full rate increase, anticipating that impact fees from new developments, once the moratorium is lifted, will cover roughly half of the plants construction costs.
If those assumptions hold, the rate increase would climb to $71.50 instead of $124.40.
The monthly sewer rates are not subject to a vote, according to city officials. The monthly sewer rates can be approved by the city council, if there is no majority protest by the 9,300 commercial and residential property owners within the city. In order for the protest to be valid, it must be submitted in writing to the city clerk.
“If we do nothing the rates still go up, we need to get behind the city council and city staff,” said Marilyn Ferreira, a Hollister real-estate agent.
One of the groups who will be affected are renters. Since property owners will face larger monthly sewer and water bills, they will pass those expenses on to renters. Since utilities are often included in rent, rent prices will increase.
“I’m a renter and I’m not prepared for my rent to increase, but what choice do I have, this is a done deal, isn’t it?” asked Hollister resident William White.
Seniors and low-income citizens would have subsidies available under plans being explored by the City Council. By state law, one class of customers cannot subsidize another using sewer enterprise funds – the money collected from sewer fees. However, funds from the city’s general fund or another fund can be used.
In September the Council will tentatively adopt the new rates and environmental documents, allowing for construction to begin in October. Construction on a seasonal storage system could begin in the spring of 2007, and the recycled water distribution system can begin construction in the fall of 2007.
If all goes well, all sewer system projects are scheduled to have construction completed in 2008.
