CLEARLAKE OAKS >> After uncovering errors in a policy that sets board member compensation rates, the Clearlake Oaks Water District board once again discussed the contentious issue of raising, capping or maintaining current compensation fees at its regular board meeting held Thursday.
The issue has become increasingly complex as the board discovered an error in its current policies while making its latest attempt to raise compensation rates; that is, its compensation rates were specified in a resolution adopted more than a decade ago, rather than an ordinance. Water code mandates an ordinance is required for laying out compensation fees.
Addressing the technicality has brought to the surface larger issues within the district. Residents who have attended the past three board meetings expressed their opposition to a raise in compensation as the district”s infrastructure crumbles and grants and loans from the state are sought. Two of the board directors, Richard Kuehn and Dena Barron, however, have argued the directors are due a higher compensation rate as their workloads increase to handle the district”s problems. Additionally, they contend, a higher compensation rate would attract more qualified people to run for board elections.
During Thursday”s meeting, the board voted unanimously to rescind Resolution 10-01, the policy that the board is currently operating under and sets compensation rates at $50 for regular meetings and $25 for special meetings with a six meeting per month cap, to clear the way for adoption of a compensation rate ordinance.
At the previous regular meeting held Sept. 18, the board had discussed raising compensation for qualifying meetings to $100 with at $600 per month cap or, alternatively, providing health insurance for board members. The board decided in a split vote to abandoned the insurance option while continuing the discussion of a $100 compensation fee with a cap of $200 per month on Sept. 18.
After rescinding Resolution 10-01 on Thursday, the board took up discussion on Ordinance 79, which would provide for the $200 cap. Discussion quickly proved the board remained divided on the issue of compensation though.
Kuehn and Barron argued the board holds more than two meetings a month and with the grants and loans coming in, that number would likely be on the rise.
“Compensation should be spread out so each event is accountable. This is not good accounting and it”s not good business,” Barron said.
“I think you”re making a huge mistake here,” Kuehn said. “This is not a volunteer position; it never has been and never should be.
“The responsibilities are getting more and more intense and the only option I see are: you don”t do your job, or you do your job to the best of your ability and get paid for it,” he added as residents in attendance quietly scoffed.
“I guess I”m confused because I”ve been volunteering on this board for years,” board President Iris Hudson said.
Residents argued that directors who sought higher pay were in the wrong job and working for the district with the wrong spirit.
Hudson asked for a motion to adopt Ordinance 79, but the other four board members sat quietly and the ordinance came up dead in the water.
Instead, the board agreed to create another ordinance with a $50 per regular meeting and $25 per special meeting allowance to be discussed at the next regular meeting. Additionally, the board will discuss assigning dollar amounts to each qualifying event, or an event where a board member is asked to serve in their official capacity, such as representing the board in a conference or signing a check.
Kuehn, in an interview following the meeting, described why he felt so strongly about the raise in compensation.
Kuehn spends roughly five hours a week on work authorized by the board, but nearly 20 to 30 per week doing research on district-related issues.
“I pick up my board packet in a timely manner, read it and go to talk with other people like Special Districts,” Kuehn said. “I”ve got to be knowledgeable to make decisions on the board and … I”m fortunate I”m self-employed and can dedicate that much time to the district. I really believe somebody has got to take the lead to get this water district headed in the right direction.”
Kuehn believes the district”s problems, and its deteriorating infrastructure in particular, have been the result of board members” lack of involvement. On top of that, Kuehn summarizes the board”s failure to raise water rates in order to make necessary infrastructure replacements is either due to board members” politics or unwillingness.
“If we have too many major problem, the state will take over our district and sell it off to a private company,” Kuehn said. “Rates will go up way more because they have a right to profits, whereas we”re a non-profit. Either the board hasn”t done what a board needs to do, which is raise rates in this case, or it didn”t understand the depreciation of its infrastructure or the general manager gave it bad information on the state of the infrastructure.”
It used to be, Kuehn explained, Clearlake Oaks had more jobs and more professional people who were active in the community. But as businesses have left town and with more retired folk moving in, more of the district”s board members lack management skills.
“The board isn”t a social event anymore,” he said. “Some of the people who are less active don”t read their stuff, or don”t have a clue as to what”s going on, and they look to management staff to ask what they should do. That”s not how it should be.”
However, Hudson disagrees, at least in part, with Kuehn.
“Richard has the notion that by raising director”s compensation we”ll get better educated and qualified people,” Hudson said. “But we”ve had some very highly educated and qualified people on the board. I think it”s fairly obvious from our meetings that our present directors are involved and I couldn”t account for the number of hours that I”ve devoted to this job, if you could call it that; I maintain it”s a volunteer position.”
Hudson”s been a director since 2008 and worked for the water district for another 26 years before that. She believes, plain and simple, that a lack of money is the primary issue and why the district”s infrastructure problems have gone unaddressed over the years. She also doesn”t feel that the burden of work for the directors is increasing.
“The responsibility has always been there. Our job as a board is to provide the best service that we can for our customers and at least two other board members agreed with me on that,” she said in reference to the discussion of a raise in compensation.
Other business
During Thursday”s meeting the board agreed to not give Dollar General a discount on its connection fees as the corporation has already paid the fees and begun construction on its Clearlake Oaks locations.
General Manager Matt Bassett also gave updates on his quest for state and federal loans and grants. The $3,831,044 U.S. Department of Agriculture (USDA) loan for wastewater treatment plant projects is currently in underwriting, and since the district applied at the beginning of the USDA”s fiscal funding season, Bassett said it has a greater chance of that loan getting turned over to a grant.
Bassett is also in discussion with three agencies that could provide grant money for a complete study of the leaks in the district”s 35 miles of mains.
