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River Valley Times

CSD Board tables barcode fee, considers new water plan

Jan 17, 2025 03:18PM ● By Gail Bullen, River Valley Times Reporter

CSD Board tables barcode sticker fee increase.


RANCHO MURIETA, CA (MPG) - Facing public pressure, the Rancho Murieta Community Services District Board voted 3-2 to postpone an ordinance that would increase barcode sticker fees to support the security department's implementation of 24/7/365 patrol coverage. The decision was made during the board's Jan. 15 meeting.

Although the board agreed to revisit the fee during the budget process, the split decision immediately created an $85,000 shortfall in the security budget for the remainder of the fiscal year.

In another development during the meeting, operations director Eric Houston advised against finalizing the draft Integrated Water Master Plan, citing its lack of a clear path forward. Instead, he proposed replacing it with an Urban Water Master Plan, which will be legally required once the district reaches a threshold of 3,000 customers, likely within the next year. It could cost as much as the Integrated Water Master Plan.

Another notable update was a delayed announcement from District Counsel Patrick Enright regarding a board action taken during a special meeting on Jan. 6. Enright said that the directors voted 4-0 in a closed session to place General Manager Mimi Morris on paid administrative leave and noted that Board President Stephen Booth was absent. For more details, see the related story: CSD General Manager Initiates Preliminary Step Toward Lawsuit

The board also addressed a range of other issues. For more details, refer to two Community Services District stories in the Jan. 24 printed edition of the River Valley Times.

Barcode sticker fees

The agenda item focused on the second reading and approval of an ordinance to update barcode sticker fees, which had remained unchanged for 30 years. The proposed changes included increasing the one-time fee for a new vehicle to $25 and introducing a $10 annual fee.

Director of Finance and Administration Mark Matulich proposed the fee increase to bolster the security budget, allowing for additional positions to ensure 24/7/365 coverage for the community. During the November board meeting, the board approved an $85,000 increase to the revised security budget based on expected income from the barcode sticker fees. The next step was the two-step adoption of an ordinance to authorize the fees.

After the district published a notice about a hearing for the ordinance, many residents expressed their frustration through angry comments on social media. In response, Board President Stephen Booth posted that he would request to table the ordinance at the December meeting, despite viewing the proposed fee as a creative solution to boost security funding.

Despite initial resistance, the board unanimously approved the ordinance when it was introduced on Dec. 18. Directors Linda Butler and John Merchant, who initially advocated tabling the measure, changed their stance after Booth suggested including a clear explanation in the next Pipeline newsletter. The communication would outline the new fee, its purpose and how the revenue would be allocated. Booth also noted that if the communication effort proved ineffective, the board could vote against the ordinance in January.

When the directors convened on Jan. 15, they found 11 letters opposing the fee and only one letter in favor inside their board meeting packets. Booth also told them that the Finance Committee had recommended tabling the ordinance and revisiting it during the budget process.

 “I think there is a desire within the community to have a clearer picture of how the money is spent,” Booth said.

When Booth asked Matulich how the decision would impact the security budget, Matulich explained that it would create an immediate $85,000 shortfall on funds needed to cover the additional staffing costs for the remainder of the year. When pressed for options to address the shortfall, Matulich stated that the only available solution would be to use property tax revenue.

In the end, Booth, Butler and Merchant voted to table the ordinance, while Randy Jenco and Tim Maybee opposed the motion.

The issue of how to address the shortfall was left unresolved. Both Jenco and Maybee voiced strong opposition to the idea of using property taxes to cover the gap.

“I think the adults in the room need to step up and do the right thing,” Jenco said. “It’s a great idea today. It’s going be a great idea four months from now, and nothing is going to change.”

Jenco stated that his top priority since joining the board has been funding the reserves. He emphasized that using tax revenue for security would divert funds away from the reserves.

Maybee noted that the grand jury report clearly stated the district shouldn’t use tax revenues for security. Maybee also pointed out that the board had directed the general manager to prepare a balanced budget for 2024/25, ensuring that every department would be self-sustaining, including security.

At another point, Booth informed the board about an upcoming meeting focused on security, which would include the general managers and board presidents of the district, the Rancho Murieta Association and Rancho Murieta Country Club. Booth added that he would also bring Matulich to the meeting.

Water plan

During his utilities report, Houston recommended against finalizing the draft Integrated Water Master Plan.

 “I believe it would behoove us to basically restart that process and get one that’s usable,” he said. “I think we can use most that data that has already been collected by Lisa Maddaus. But I definitely think we need a better plan and vision.”

To replace the IWMP, Houston proposed preparing an urban water supply plan, which the state Department of Water Resources will require once the district reaches 3,000 water connections—a milestone likely to occur within a year.

Houston also noted that Water Systems Consultants (WSC) is preparing a scope of work for the district. The engineering consultants previously developed a Water Vision Report and an urban water supply plan for the City of Folsom. While specific cost estimates were not yet available, Houston indicated that the project could range between $300,000 and $500,000. The district has already spent more than $350,000 on the Integrated Water Master Plan (IWMP).

Houston said the IWMP consultants had  not thoroughly explored options to augment the community’s water supply. “I think anytime you want to make an agreement to supply water, it should never be solely based on conservation,” he said.

The district needs a stronger, more defensible water plan to effectively engage with developers and the county and to make decisions internally, Houston said.

District Counsel Enright expressed his agreement with pursuing an urban water supply plan. “We are remarkably close to 3,000 right now. So it doesn’t make any sense to have a plan that we’re going to redo basically once we get there.”

Merchant praised WSC. He attended one of the Water Vision meetings that  the consultants organized in Folsom and was impressed.  Merchant said he had wanted WSC to bid on the IWMP, but it never got a shot.

Booth also criticized the draft IWMP, saying it  “doesn’t provide a plan moving forward, and that is a major deficiency.”  As an alternative, Booth expressed hopes for a hybrid approach that uses already existing data.

Jenco said  that while he did not oppose hiring someone to explore options for increasing water production or reducing demand, he could not understand redoing the IWMP after the significant amount of money already spent. He also expressed feeling blindsided by the proposal.

Booth asked Jenco what could help steer the conversation in a direction more favorable to him. Jenco responded that he would be ready to have that discussion once they received the scope and cost estimates from WSC.

Booth directed that the issue be referred to the Improvements Committee for further consideration. The committee includes board members Merchant and Jenco.

During the discussion, Booth noted that the board has acknowledged the inevitability of full development in the already approved Residences subdivision to the north and Riverview to the south. Merchant added that he anticipates Clementia Reservoir will be designated as an emergency water supply, though he acknowledged it would not be sufficient on its own.

Updating the Integrated Water Master Plan became a concern in 2022 when the Rancho North subdivision, proposing 697 lots, updated its application with Sacramento County planners. The issue was further highlighted by comments from the late John Sullivan, who represented the developers.

After the district issued a request for proposals to prepare both an Integrated Water Master Plan and an urban water supply plan, the only bid received was a joint proposal from Maddaus Water Management in California and Adkins Engineering in Oregon. This outcome occurred, despite operations manager Michael Fritschi advertising the request twice and reaching out to numerous qualified engineering firms, all of which indicated they were too busy to take on the project.

The Maddaus-Adkins bid for both plans was $340,000, exceeding the board's budget of $250,000. To reduce costs, Fritschi suggested removing the Urban Water Supply Plan, lowering the total to $291,000, with the understanding that much of the data could later be repurposed for the urban plan. In 2023, the board also approved a $72,000 change order.