rialtonow

Let’s start with some awesome news we have the attention of more than just or city council we have senators and senators of the future, financial advisors and Dr. Imran Farooq.

Mr. Farooq is a partner at:

The Omnius Group – The Omnius Group specializes in comprehensive economic development to dynamically integrate public and private sectors. Our experience includes real estate development, commercial finance, green technologies, workforce development and extensive relationships across local, state and federal agencies. Our objective is to pursue projects that incorporate economic, social and environmental value in the local communities.

http://www.facebook.com/DrIFarooq

His preliminary advice is to look at:

Is it possible to propose exemptions to rate increases depending on household incomes? This might be a way to protect the most vulnerable in the community but still facilitate the deemed ‘necessary’ upgrades.

Now we were sent an interesting piece of news. The article below is about the failure of American Water to secure the contract with the City of Rialto. I find it interesting that in the press release they (RWS) claim they decided to sever ties with American Water, but here it looks like American Water was the one cutting the ties. Insiders have told me that the cities decision to ignore the residents desire to put the outsourcing issue to a vote in November gave American Water an uneasy feeling about moving forward. The city attorney’s bad advice to the council now looks like a failed political move.

You see they didn’t put the issue on the ballot for a ton of reasons:

• They don’t want to know what you think, at least the Eds and the city attorney. Call them sometime and try asking questions they will try everything in their power to shove you off they just want to make their money.
• They know it’s an election year with a presidential election which means more people at the polls.
• Putting the issue on the ballot would remove their ability to say that most of the people want this deal.
• The city wants to have a stock pile of money to dip into to bring us “Development”. What happens once the $30 Million is gone and spent? How then will you bring us the economic development we desire?
• The city tried to hide from their bad decision by saying it was a union issue not a community issue, let alone I saw hundreds of residents getting petitions signed the union got what they wanted and left, the residents are still here and a few of us refuse to stop fighting.
• Lastly, from the looks of the words of American Water’s CEO American Water walked away. So the city took what they thought would remain secret and tell us we (Council) have decided to remove American Water from the deal and not change the deal just the players right before an election. They didn’t hear us if they did they would have started from the ground up and better involve the community and find ways to protect residents that are elderly, poor and struggling.

Also if this deal is to bring Development to our city can someone explain the consequences of their miss-direction and lies as seen at the bottom of this article from the Public Works Newsletter:

The deal called for American Water to be paid $26.5 million a year to run the system and cover certain maintenance expenses – but not counting the automatic price escalator each year. Multiply that out 30 years – and that’s just for the O&M, which of course must be covered by sufficient revenues from the ratepayers, on top of covering the financing for the improvements, the $30 million “catch up lease payment” to the City, refinancing existing RUA debt (at much higher interest rates), etc.

When I asked Megan Madsen from Table Rock Financial about the built in profit guarantee that was there for American Water she said she had no idea what I was talking about. So when information I stumbled across leads one to believe there is more than they are telling us. Does anyone know that 27.4 million is going toward refinancing existing debt?

No one will tell us the rates they are financing at or why it nessicary to add such a massive amount of debt to something that’s tied to our WATER & WASTE WATER systems. On financial person told me that depending on how the loan is structured it may very well hurt more than help if the city ever found its self in the same situation as our neighbor San Bernardino. I have been told we will be in deficit spending this next fiscal year in the realm of $5 million dollars.

We need to be wiser to WHO is sitting on certain sub communities when it comes to dealings with contracting out services.