The NEWS index
Reform
Water Board scorecard
$73,187: cost continues to mountThe "Reform Board", created by Rio Linda/Elverta Community Water District (RLECWD) Board Member Mary Harris, continues to show its stuff. The reform board originally included Directors Harris, James Strutton, Darrell Nelson and Hal Morris.
As we reported in April, RLECWD had received attorney bills of over $63,000 from the health and benefits attorneys picked by RLECWD Directors Harris and Strutton. The new amount is $73,187.48. This represents $42,060.83 for attorney Richard Chiurazzi through May 31, 2006, and $31,126.65 for attorney Peter Stubbs through May 5, 2006.
Chiurazzi and Stubbs, selected by Harris and now resigned Board member Strutton, were supposed to reduce health and benefits costs for RLECWD. Harris and Strutton, when these attorneys were hired, set a cost limit of $6000. Harris said, "I think six thousand would be an appropriate amount." Strutton said, "I would say no more than six thousand, I would say that that should be more than sufficient."
Chiurazzi and Stubbs have been paid over 12 times what Harris and Strutton stated would be appropriate, and the amount is still counting. They have been paid $73,187.48, a cost of over $17 to each RLECWD customer. This does not include the costs of the court decisions rendered against RLECWD as a result of their actions, or the costs of the ongoing legal battles.
Strutton resigned from his elected Board position, citing "illness", his "wife's retirement", and "extensive travel" plans as his reasons for resignation. Harris, however, continues as a Board member.
What else has happened as a result of Harris' "Reform Board"?
Following ex-employees Bob Ames and Todd Artrip, General Manager Dave Andres has resigned, effective June 19th. The NEWS isn't surprised about Andres bailing, as every time The NEWS received a copy of a court document filed by Chiurazzi and Stubbs on behalf of the District, Andres wasn't given a copy of the court documents! In our opinion, the Board can't expect a General Manager to run the district if he is not informed of Board and Attorney actions. It just isn't right for him to learn the District's attorneys' actions from the press!
Andres' personal involvement in the Elverta Specific Plan (ESP) project has brought many benefits to RLECWD as the ESP will nearly double the number of customers in the District. His firm hand on the ESP project will be difficult to replace.
The costs to recruit a new General Manager, replacing Andres, may be $25,000 to $30,000. The cost to the District to pay Andres for his accrued leave time will be about $20,000, and the cost to hire a temporary General Manager while recruitment proceeds could be as much as $94 per hour, or $16,000/month, if a temporary employee service is used to pay the temporary manager.
The employee's lawsuit continues, and related additional legal costs may reach $25,000 to $30,000.
Board Member Doug Cater has resigned. Cater, not part of the "Reform Board", was the Board member with extensive water experience; he is the Superintendent - Field Services for Sacramento Suburban Water District. Cater's extensive knowledge of Water issues brought a valuable perspective to the Board during his tenure.
RLECWD's long-time General Counsel has fired the District, perhaps partially as a result of Board President Darrell Nelson referring to the "bad advice" he claimed was provided by Counsel. The "bad advice" from the previous General Counsel included an admonition that RLECWD would lose in court if it tried to eliminate the retirees' health benefits. RLECWD lost, exactly as predicted; RLECWD will continue to provide health benefits to the retirees.
Will what's left of the "Reform Board" find a qualified replacement for Andres? How many more RLECWD employees will leave for greener pastures? How many more Board members will resign?
It appears to The NEWS that newly appointed Board Members Fred Jones and Zack Arbios, along with Hal Morris, have recognized the problems Mary Harris' Reform Board has caused for the ratepayers and for the RLECWD employees. Hopefully they will turn the District around.
jump to top of page