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"Jerry is spreading misinformation"

Recall Facilitator Darrell Nelson wrote on June 8: (click here for his full message)
"Jerry is spreading misinformation in the form of a sheet of paper that states: 'The board passed a conservation/lifeline rate that will directly benefit 78% of our customers'.  I have in my possession a 5 year analysis issued by the Water District or their consultant that shows that most of the money comes from the customers with 5/8" meters. I know from previous data that 22% of the customers are 1" and larger. The 5/8" meter users are socked as well as the big users just not at the 154% rate. You folks should know that of the $569,538 new revenue generated by this lifeline and conservation method that $339,788 comes from customers with 5/8" meters. You can do the math..."

Doing the math, exactly as suggested by Mr. Nelson....

Using Mr. Nelson's figures: $339,788 divided by  $569,538 says that 60% of the new revenue comes from the 78% of the customers having smaller than 1" meters. Thus, the remaining 40% of the new revenue reported by Mr. Nelson comes from 22% of the customers, the "larger users" (see below for Mr. Nelson's definition of the 22% being "larger users").

To simplify this, again only using Mr. Nelson's figures, for an example group of 100 customers, and a rate increase of $100, the 22 "larger users" pay $1.82 each, and the 78 others pay $0.77 each. Thus, the "larger users" pay an increase that is 2.4 times as much as paid by the others. Mr. Nelson's own figures confirm that the new rate benefits the 78% who have smaller meter sizes, exactly as stated in the "misinformation" Mr. Nelson quotes. Perhaps "new math" is required to prove Mr. Nelson's assertion? Or perhaps Mr. Nelson is "not the author" of his math statement? (See "I am not the author" in his June 8 statement)

But remember, Mr. Nelson asserts, "Jerry is spreading misinformation". However, Mr. Nelson does not provide an example of the misinformation he contends Jerry is spreading. Mr. Nelson, instead, confirms that Jerry is right. Who is spreading misinformation? It isn't Jerry.

Recall Facilitator Darrell Nelson wrote on June 8: (click here for his full message)
"You smaller customers should know that your free baseline has been lowered to 900 from 1800..."
RLECWD Ordinance No. 1.10, November 22, 1994, states the first 2000 cubic feet (baseline) is covered by the minimum bimonthly service charge. Mr. Nelson does not provide any facts that explain when and how this 2000 cubic feet was lowered to the 1800 as he alleges. That is because his statement is incorrect. Mr. Wickham's advertisement in the Rio Linda Elverta News (below) shows how the new alternative two benefits those who use 2000 cubic feet of water, as compared to Mr. Nelson's preferred alternative one.
Recall Facilitator Darrell Nelson, in a statement handed to RLECWD Board members at the Orchard School public meeting on January 22, 2001 confirmed the 78% / 22% spread between small and large users:
"... I have done some simple math using your supplied data and an increase of $9.00 every 2 months for 78% of your customers will cover your expenses minus the master planned capital projects. This new rate would be comparative to neighboring water districts and is a 50% increase. The other 22% of the larger users, such as myself, will pay considerably more but will still have lower costs than neighboring water districts..."

Jerry Wickham, in an advertisement commissioned in the Rio Linda News on May 3, 2001, provides even more detail on the rate structure that was approved:



This page authored by Jay O'Brien


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