Candidate for
Board Member; Marin Municipal Water District; District 2

ISSUES

John will engage positively with all sectors to build consensus, not only on desalination and future water needs, but also on avoiding the looming financial crisis of crippling unfunded pension and benefit liabilities. Numerous related issues remain unresolved:

-The Board has inadequately informed its residents regarding desalination issues, and made crucial, long-range decisions without voter approval.

-Even if desalination is rejected by the voters, massive unfunded liabilities remain, liabilities not reflected on MMWD balance sheets, in amounts that may exceed $250 million.

-The Board has paid only ineffectual lip service to green concerns, establishing a mixed record of environmental stewardship.

-In just three years, the Board has raised residential rates by 29%, while the CPI rose 1.47%.

-MMWD charges the highest average rates in the Bay Area among water districts.

-Even though water delivery volumes have declined over the past six years, expenses and rates have risen dramatically. Most claimed cost reductions have been illusory, relying on gimmicks rather than real solutions.

-Ratepayers guarantee employee pensions, most of which will start at over a hundred thousand dollars per year per employee, thereafter escalating with inflation, and including full medical benefits for life.

-In just one year (FY 2008-2009), the Board paid over $7.9 million to fund pension and benefit liabilities, an amount that does not include Social Security, Medicare or huge unfunded pension and benefit liabilities.

-The Board has irresponsibly gambled on the hope of consistently above-average investment returns, a risky bet guaranteed by the ratepayers. Using reasonable return rates, the future unfunded liabilities should have a present discounted value of $250 million, or over $6,000 per household served.

-District employment has risen by 13% over the last decade, during a time when there have been no appreciable population increases. In three years, personnel costs have risen 23%.

-Having bungled the desalination project, the Board has yet to outline effectively for its rate-payers clear alternatives for Marin's future water needs.

-Because the Board has not insured a reliable water supply, conservation programs costing several million dollars per year have become necessary.