Current Fair Oaks Water District News

Fall 2009

The state of the economy continues to dominate conversations across the country and here at home. While many businesses and public entities are experiencing unprecedented hardships, the Fair Oaks Water District (FOWD) is in strong financial shape.

The Fair Oaks Water District entered 2009 with approximately $6M in reserves and no projected rate increase for the fourth consecutive year. During this four year period, the District completed two new groundwater supply wells, installed thousands of feet of new water main, completed the first Master Plan in twenty years, and increased the District’s presence in the community of Fair Oaks. Also accomplished during this four year period was the installation of over 1,000 meters per year; with the District installing more meters in 2008 than in any other year in its history. This was all completed while the District planned and designed the new administration building that was approved for construction in 2000.

Reading the proceeding paragraph leads to the question, “How could the District accomplish so much without raising rates or borrowing money?” The answer to the question is in the following bullet points:

1. In the years prior to 2004, the District collected revenue from the ratepayers for projects that were never completed. The excess revenue was placed in reserve accounts that totaled nearly $12M in 2004. From 2004 to 2008 the District actually completed the projects that the rates were collected for in prior years.
   
   
2. During the last four years the District collected approximately $1.4M in grant money by completing the water supply projects promised in 2002.
   
   
3. During the last four years the District secured approximately $1.2M for replacement water supply from others.
   
   
4. During the last four years the District significantly reduced annual Board expenses.
   
   
5. During the last four years the District significantly reduced the costs for outside consultant services.
   
   
6. During the last four years the District controlled labor costs without reducing employee benefits.

Looking forward we are expecting our next few years to be both exciting and challenging. Construction is continuing on our new Customer Service and Administration Center located across the street from our current office; with doors scheduled to open to the public by the end of this year. Throughout 2010 we will continue the installation of water meters at an annual cost of approximately $2.5 million dollars. In 2011, FOWD is scheduled to transition all customers to metered rates following an extensive education outreach program.

Your next issue of this newsletter will arrive in spring of 2010. In the meantime, we look forward to continuing to provide you with exceptional service now and in the future.

Current Water Conservation Rules
Need Continues for Water Efficiency  

Despite the normal allocation of water for FOWD, it is still imperative to eliminate water waste and improve efficiency. Most customers will find, perhaps to their surprise, that they can save considerable water without inconvenience, much less any hardship. A list of water efficiency tips and a complete copy of the District’s Water Conservation Policy can be viewed on the District website: www.fowd.com under Programs and Resources.

Water Conservation Enforcement Provisions

FOWD shall terminate water service to the property of any user who receives two violations for non-compliance with the conditions set forth in the District’s Water Conservation Policy and the user shall be subject to a minimum reconnect charge as follows:

To report any concerns of water waste or if you have any water conservation questions, please contact FOWD at 967-5723 or e-mail customerservice@fowd.com.  

Opening Soon: New ‘Green’ Customer Service and Administration Center

Construction is underway on the new FOWD Customer Service and Administration Center. The new building is located across the street from the District’s current office and is scheduled to open by the end of this year. The FOWD Board of Directors chose to purchase the property across the street (formerly “Racy’s Garden Décor and Furniture Center, at 10330 Fair Oaks Boulevard) when the FOWD management and the new building architects determined that doing this would be most cost efficient and least disruptive for FOWD’s customers and employees d be most cost efficient and least disruptive for FOWD’s customers and employees.
  
The final design of the building is based on input and suggestions from Fair Oaks residents who attended a series of public meetings in 2007.  The architectural firm ANOVA designed the building that residents felt best represented the Fair Oaks community and complimented the Fair Oaks Village. The building will be certified by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System that provides standards for environmentally sustainable construction.                                                                                

Upon completion at the end of this year, the new Customer Service and Administration Center will allow the FOWD to provide rate payers with upgraded services, improved traffic flow and better parking. This project, including the purchase of the property, will be completed and funded without raising rates or borrowing money.

2008 State of the Fair Oaks Water District

The Fair Oaks Water District is entering 2009 with approximately $6M in reserves and no projected rate increase for the fourth consecutive year. During this four year period, the District completed two new groundwater supply wells, installed thousands of feet of new water main, completed the first Master Plan in twenty years, and increased the District’s presence in the community of Fair Oaks. Also accomplished during this four year period was the installation of over 1,000 meters per year; with the District installing more meters in 2008 than in any other year in its history. This was all completed while the District planned and designed the new administration building that was approved for construction in 2000.

Reading the proceeding paragraph leads to the question, “How could the District accomplish so much without raising rates or borrowing money?” The answer to the question is in the following bullet points:

• In the years prior to 2004, the District collected revenue from the ratepayers for projects that were never completed. The excess revenue was placed in reserve accounts that totaled nearly $12M in 2004. From 2004 to 2008 the District actually completed the projects that the rates were collected for in prior years.

• During the last four years the District collected approximately $1.4M in grant money by completing the water supply projects promised in 2002.

• During the last four years the District secured approximately $1.2M for replacement water supply from others.

• During the last four years the District significantly reduced annual Board expenses.

• During the last four years the District significantly reduced the costs for outside consultant services.

• During the last four years the District controlled labor costs without reducing employee benefits.

All of this was accomplished from 2004 through 2008 while the District expended significant resources on settled litigation with five former managers of the District.

Going into 2009 the District has a plan to navigate the extremely harsh economy that is projected. The District will complete the new administration building project and will install over 1000 new meters at a combined cost of approximately $6M. The District will continue to provide ratepayers positive customer service; expending approximately $6M on other District projects and operations in 2009. The District will accomplish all of this in 2009 without a rate increase, without borrowing money, and with a projected year-end reserve of approximately $2.2M.

FOWD Contacts Ratepayers – Cooperates with Sac Sheriff’s Investigation

The Fair Oaks Water District (FOWD) sent letters to over 14,000 FOWD ratepayers recently regarding the discovery, and subsequent investigation, of abnormal revenue deposit activity between January 1, 2007 and March 30, 2008.

Following routine quality control procedures for financial transactions, abnormal activity regarding revenue deposits on certain days was discovered. As soon as this abnormality was revealed, FOWD launched a thorough investigation, and subsequently discovered that some cash and checks received as payments for water bills were not deposited with the District’s bank pursuant to standard protocol.

FOWD immediately contacted – and is now cooperating fully with - the Sacramento County Sheriff’s Department (SCSD). SCSD is conducting a criminal investigation and has filed charges against a former FOWD employee. While the investigation is still underway, initial reports strongly suggest that this is an isolated incident involving only a single, former employee.

Because our ratepayers’ safety and security is our primary goal, FOWD is taking this newsletter opportunity to again alert you that a few water bill check payments have yet to be accounted for. At this point, if a check you wrote paying your water bill between January 2007 and March 2008 has not cleared your bank within a reasonable period of time, it is requested that you immediately contact your bank and stop payment on the check that has not yet cleared your account. FOWD will reimburse you for any bank fees you may incur for placing the stop payment on the original check. In addition, we request that you contact FOWD, so that we can work with the SCSD to investigate the situation immediately, and process an alternative payment towards your water account if it is required.

As a safety precaution, we also recommend that you carefully monitor your accounts over the next few months for any unusual or unauthorized activity. If you are concerned, we recommend that you place a fraud alert on your credit files. A fraud alert informs creditors to contact you before opening any new accounts. Just call any one of the three credit reporting agencies listed below, and a fraud alert will be posted by all three agencies. You will then receive letters with instructions regarding how-to receive a free copy of your credit report from each.

Experian: 888-397-3742 or check: www.experian.com Equifax: 800-525-6285 or check: www.equifax.com TransUnion: 800-680-7289 or check: www.transunion.com

If you would like more information regarding protecting yourself from identity theft, please visit the website of the California Office of Privacy Protection at: www.privacy.ca.gov; or you can call them toll free at: (866) 785-9663.

Your safety and security is our number one goal. Please contact FOWD or the SCSD if you have any concerns regarding this investigation, and any potential compromise of your identity: www.fowd.com or (916) 967-5723.