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LWV League of Women Voters of California Education Fund
Smart Voter
San Joaquin County, CA November 7, 2006 Election
Measure H
Low-Income Water Rate Reduction
City of Lodi

Proposed Ordinance relating to wate rate reduction - Simple Majority Approval Required

Fail: 5647 / 36.1% Yes votes ...... 9988 / 63.9% No votes

See Also: Index of all Measures

Results as of Dec 5 10:30am, 100.0% of Precincts Reporting (50/50)
Information shown below: Impartial Analysis | Arguments | Full Text

Shall the ordinance rescinding Resolution No. 2005-203 entitled, "A Resolution of the Lodi City Council establishing water rates" be passed?

Impartial Analysis from Lodi City Attorney
On September 21, 2005, the Lodi City Council adopted Resolution No. 2005-203 entitled "A Resolution of the Lodi City Council establishing water rates," raising water rates to pay for the cleanup of perchloroethylene (PCE) and trichloroethylene (TCE) in Lodi's groundwater. State and federal health regulators have found both chemicals to be hazardous to human health.

Measure H would repeal Resolution No. 2005-203, repeal the water rates established by that resolution, and require the City to refund all money collected under that resolution. The Initiative states that it can only be repealed by a majority vote of Lodi's voters.

Measure H will not eliminate the City's legal duty under a State order to pay for the cleanup of the chemicals. Although the chemicals are not yet in the area where Lodi's operating wells draw water, if they are not cleaned up they will eventually contaminate Lodi's wells. As such, if Measure H is approved, the City will have to find a different way to pay for cleanup.

The measure would take effect 10 days after the results of the election are certified under the Elections Code.

 
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Arguments For Measure H Arguments Against Measure H
ARGUMENT IN FAVOR OF MEASURE H

City officials have contended that chlorinated solvents perchloroethylene (PCE) and trichloroethylene (TCE) were discovered in its groundwater in 1989, both of which are identified as hazardous to human health by state and federal regulators. This issue is still unresolved and is a controversy to the Citizens of Lodi. While City officials claim that the total cost of remediation is not precisely known, it has been insisted by staff to be at $45.7 million.

City officials instituted a failed and costly "program" of litigation against "responsible parties" to fund remediation. It was eventually established that the City itself was in turn equally responsible for the contamination. This resulted in failure to secure funds for remediation and also incited a costly legal backlash against the City by outside entities.

The City, against popular public opinion and numerous citizens complaints, ultimately entered into a number of inequitable and highly questionable settlements which were (A) unreasonably favorable to the Third parties responsible and (B) by nature in opposition to the general financial welfare of the citizens of Lodi. City officials also accepted an unreasonable recommendation to increase current water rates to pay for the estimated $45.7 million cost. The City Council then directed a hearing for this matter but excluded water rate paying non-property owners from the political process by only allowing a small portion of the citizenry the right to protest.

It is the People's position that excluding non-property owner rate payers from this process is unconscionable and unethical.

Submitted by:

/s/ Jane Lea /s/ Dawn C. Squires

Rebuttal to Arguments For
REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE H

The proponents of Measure H acknowledge that the contamination in the water must be cleaned up by the City. They acknowledge that the contamination is hazardous and that when it reaches Lodi's supply wells it will be harmful. However, they assert that the "City" should pay for it.

But just who is the City? The City is all of us. The City is seniors at Hutchins Street Square. The City is children at the library and playing in parks. The City is people who need police and fire services. The City is every child and adult who needs safe clean drinking water to sustain life.

We are the City and future generations are counting on us. The question is how will we pay for the cleanup . . . by reducing our city services, or acknowledging the need for clean water and its associated costs. State Water Board Chairman Robert Schneider said, "This is a legacy issue for Lodi. Lodi will be able to say that it takes care of the environment."

The City Council, who the public elected, has been extremely thorough and careful to ensure that all legal requirements associated with a water rate increase have been met. Strong public opinion was expressed at public hearings that the City should stop spending money on litigation, stop pointing fingers and making excuses, and clean up Lodi's water now!

Vote to keep Lodi's services and vote to clean up Lodi's water. Vote NO on Measure H, the Water Rate Reduction Initiative.

Submitted by:

/s/ Larry D. Hansen, Council Member /s/ Richard J. Jones, CEO, non-profit /s/ William Meehleis, Business Owner /s/ Sara Heberle, Retired Senior Citizen

ARGUMENT AGAINST MEASURE H

Lodi has historically provided quality services to its citizens: vibrant senior and children's recreation programs, green parks, visual and performing arts venues, outstanding police and fire departments with quick response times and good-tasting safe drinking water. These services make Lodi livable and lovable. The "Water Rate Reduction Initiative" threatens these services.

Although Lodi's water is currently safe, there are chemicals in the groundwater that will soon poison it if not cleaned up. The State mandated the City begin clean-up immediately at the City's expense. Ignoring the order would subject the City to fines and additional legal costs.

It is estimated clean-up of the groundwater contamination, which has now begun, will cost approximately $45 million. After numerous public hearings to receive input from the citizens of Lodi, the City determined the best funding source was phasing in three $3.50 a month water rate increases over a one and a half year period. Rates will revert back after clean-up.

Without the water rate increase, which the "Water Rate Reduction Initiative" seeks to eliminate, funding for clean-up will have to come from a reduction in City services. Services have already been reduced to minimum levels, including a reduction of 54 staff positions. Additional cuts would have to come from reduced levels of service in police, fire, public works, parks and recreation or the library.

Rate increases are never welcomed, but groundwater contamination clean-up is mandatory to protect our water supply for future generations. Safeguard Lodi's quality drinking water and quality of life. Vote "No" on the "Water Rate Reduction Initiative."

Submitted by:

/s/ Susan Hitchcock, Mayor, City of Lodi /s/ Pat Patrick, President & CEO

Lodi Chamber of Commerce
/s/ Kenneth Mullen MD, Board Member,
Lodi Unified School District
/s/ Joe Harrington, President & CEO
Lodi Memorial Hospital

Rebuttal to Arguments Against
REBUTTAL TO ARGUMENT AGAINST MEASURE H

YES on Measure "H" ensures that all citizens both renters and property owners in Lodi can exercise their democratic right to participate in the decision making process of their future and holding city officials accountable for their decision-making.

YES on Measure "H" does not threaten city services, such as: police, public works, parks and recreation, fire safety or the library. These services are solely at the discretion of city officials' abilities to make good financial decisions. City of Lodi Code of Ethics and Values, Resolution # 2004-115 states "I (Council member) will be service-oriented. . . and care about the needs and issues of citizens."

The Council against popular public opinion and numerous citizens complaints, ultimately entered into a number of inequitable ($30 million on failed litigation) and highly questionable settlements.

#1. A federal judge on June 4th, 2004 invited Lodi's attorneys to copy Modesto's strategy with their PCE/TCE ground water clean up litigation, but Lodi declined. Modesto used a winning strategy in court and was awarded $175 million by a San Francisco Superior Court jury.

#2. California State Central Valley Regional Water Quality Control Board issued a Clean Up Abatement Order on August 5, 2005 that stated . . ."The Board entered a separate settlement with Lodi News Sentinel . . .This agreement essentially makes Lodi News Sentinel . . .secondarily liable for compliance with the Clean Up and Abatement Order."

Voting YES on Measure "H" ensures that Lodi will remain "livable and lovable" with the input from its citizens.

Submitted by:

/s/ Jane Lea /s/ Dawn Squires

Full Text of Measure H
FULL TEXT OF MEASURE H

EXHIBIT A

WATER RATE REDUCTION INITIATIVE (Text of Proposed Ordinance)

AN ORDINANCE BROUGHT BY THE PEOPLE OF THE CITY OF LODI REPEALING RESOLUTION NO. 2005-203 OF THE LODI CITY COUNCIL "A RESOLUTION OF THE LODI CITY COUNCIL ESTABLISHING WATER RATES" IN RESPONSE TO THE WATER UTILITY TAXATION IMPOSED UPON THE PEOPLE

Whereas regarding purpose.

Whereas the City of Lodi has a legal responsibility to promote the public health, safety, and trust of the residents of the City of Lodi and

Whereas the City of Lodi has instituted significant increases in water rates without sufficient public input for the purpose of cleaning up water contamination, the residents of the City of Lodi request the following ordinance to be placed on the next General Election ballot.

SECTION 1: The Resolution No. 2005-203 of the Lodi City Council "A resolution of the Lodi City Council establishing water rates" shall be repealed.

SECTION 2: That the Levy of Charges imposed pursuant to section 13.08.010 of the Lodi Municipal Code shall be repealed.

SECTION 3: That after the date that this ordinance is approved by the voters, all funds collected under the authority of Resolution No. 2005-203 of the Lodi City Council shall be refunded to the rate payers of the City of Lodi in a reasonable and prompt time frame.

SECTION 4: This ordinance can only be repealed by a majority vote by the voters of the City of Lodi on a General Election ballot.

SECTION 5: This ordinance is effective the day approved by the voters of the City of Lodi.


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