Excessive Burden on Taxpayers

[Below is another op-ed piece by Charlie Wakeem which appeared in yesterday's El Paso Times. elpasonaturally reprinted the same piece with additions under the title of Political Influence Costs Taxpayers Millions.]

Ray Adauto, who represents the El Paso Association of Builders, wrote a response April 17 to a guest column I had previously submitted to the Times. His response contains so much misinformation that I must respond to it.

Before I do, please remember that I served on the Capital Improvements Advisory Committee with Adauto for five years and we’ve always treated each other cordially and with respect.  Nonetheless, Adauto serves his industry.  I serve no one (except El Paso) when I serve on boards and committees.

I am not now nor have I ever been against development.  Development is vigorous business activity and healthy for any community.  The question is not whether there should be development, but how and where it should take place.
Adauto states that “there are dozens of reasons people live in El Paso.”  He’s right, but one reason should be “quality of place.”

Land development is the industry that is most responsible for our city’s appearance together with good but fair city codes which promote complete neighborhoods, multi-modal transportation and walkability.

Adauto states, “One thing that makes our community special is the ability to find affordable housing…”

Providing affordable housing is important, but it should not place an excessive burden on taxpayers who subsidize it and eventually pay for the infrastructure that the developers leave out.

Adauto states:  “Proponents of impact fees, like Charlie Wakeem, keep espousing the notion that if you raise fees then you can keep growth out.”
That is not true at all!  Impact fees are not designed to punish developers or stifle growth.  They are designed to make sure new growth is financially fair to all stakeholders.  (Why should residents of older neighborhoods subsidize the development of new neighborhoods?)

This concept is set forth in Chapter 395 of the Texas Local Government Code.
Adauto states:  “Surprisingly, it is conveniently never explained that a large portion of the monthly water/sewer rate a new home buyer pays goes toward subsidizing replacement of older, outdated infrastructure.”

He should know better.  Chapter 395 strictly forbids the use of impact fees for replacement of old infrastructure.  The fees can only be used for infrastructure necessary to serve new growth.  All taxpayers and/or ratepayers are obligated to pay for repairing and replacing old infrastructure.

Adauto states:  “That’s why the PSB purchased thousands of acres of desert back then (early 1950’s) to have land to sell to try to keep the cost of water and sewer service down.”

Just the opposite is true.  The Public Service Board purchased the land so that El Paso wouldn’t run out of water (as it almost did in 1952).  The PSB determines whether the land is “inexpedient to the system” and can be sold.

When it established the PSB in 1952, City Council wisely assigned it the responsibility for “management and control” of the city’s water and land resources.  The more we sell the PSB land, the scarcer our water resources become.

The PSB Selection Committee met in late 2014 to recommend—to City Council—someone to fill the “engineer” position on the PSB.  David Nemir was the incumbent and was eligible for another four-year term.

A policy states that land-development engineers don’t qualify to serve on the PSB due to a possible conflict of interest.  One of the applicants was such a person.  I pointed this out.

The committee was told that the applicant had recently sold his firm and retired. If he did so, then why is he still representing land developers at the City?
The committee recommended Nemir by a wide margin. However, Council inexplicably appointed the land-development engineer.

Charlie Wakeem

Political Influence Costs Taxpayers Millions

[Below is an op-ed piece written by Charlie Wakeem and published by the El Paso Times in yesterday's Sunday paper. It was published under the title of Wakeem: City backslides on development issues. N.B.: Charlie is a gentleman. He won't name names but I will. Brad Roe replaced David Nemir who was a stellar member of the PSB. The attorney for the PSB/EPWU at the time was Bob Andron. Fortunately he retired and was replaced by Lupe Cuellar.]

In light of the recent revelations about the dysfunction and mismanagement in City Hall, I feel it’s time for me to speak about other issues I’m aware of.
One only needs to look at the difference in city government since the 2013 municipal election and decisions City Council has made since then.  Most of the problems are already well-documented, including but not limited to issues with the city manager and Rep. Larry Romero and City Council’s lack of vision and transparency.

I have served on several city boards and committees during the past decade, the latest being the Open Space Advisory Board.  Among others, I also served on the Subdivision Ordinance Rewrite Committee, the Comprehensive Plan Advisory Committee, the PSB Selection Committee and the Capital Improvements Advisory Committee, which makes recommendations to City Council regarding impact fees.

I was formerly chairman of the Open Space Advisory Board, which advises City Council on the Open Space Master Plan.  I was term-limited from the board last summer.

OSAB accomplished a great deal in the first few years of its existence.  However, things started to change after the 2013 municipal election.  City staff began to keep board members from having a say in setting the agenda and posting items for ineffective and useless Information and Discussion only instead of Action, thereby limiting the collective voice of its citizen board members.

I can only surmise that it’s the people with political and financial influence that are behind the silencing, since OSAB is unpopular with many of those people.
The City spent several years at a cost of millions of dollars, in large part provided in grants by the federal government, for Plan El Paso, El Paso’s nationally-recognized, award-winning comprehensive plan.

It has since been shelved.  Proof of this is that it is no longer available on the city’s web site.  Once again, it seems apparent that some people with influence have convinced the City to ignore it, because Plan El Paso discourages urban sprawl.

Impact fees are strictly regulated by the state and are designed so that new growth pays for itself, instead of the taxpayers or ratepayers subsidizing the new growth.  El Paso has imposed impact fees on new growth for water and wastewater infrastructure since 2009.

Impact fees are calculated by anticipating how many new housing units will be built in new growth areas over a ten year period and the cost of infrastructure to extend water and wastewater service to those new units.  The calculation was originally roughly $2,000 per new water meter (unit) in the city’s three new growth areas when the impact fees were imposed in 2009.  City Council approved 75% of that amount in impact fees.  That left the rest of us still subsidizing new growth for about $500 per unit.

Every five years the state requires impact fees to be recalculated.  In 2014 the El Paso Water Utilities calculated about $35 million more for infrastructure to serve the East and Northeast new-growth areas with a slight increase in the West.

I had term-limited off the Capital Improvements Advisory Committee by then.  The East and Northeast new growth areas are now approximately as much as $4,000 per unit.  The Capital Improvements Advisory Committee, the majority of whose members belong to the El Paso Association of Builders, convinced City Council to withhold any increase.

You and I are now left with subsidizing new growth for water and wastewater costs at up to $2,500 per unit.

Also, in late 2014, the PSB Selection Committee, met to select the engineer position on the PSB.  The incumbent was the very highly qualified David Nemir, who had already served on the board for the previous four years and was eligible for another four year term.  One of the other applicants, who I will not name, was a land development engineer.

There is a policy that land development engineers do not qualify for membership on the PSB due to a possible conflict of interest.  I pointed this out at the meeting.  However, the attorney for the PSB/EPWU said the applicant had recently sold his engineering firm and retired.  If he sold his firm and retired, why is he still representing land development clients at the City?  I’ve personally seen him do so.

The mayor, who serves on the PSB and chairs the selection committee, was absent at this PSB selection meeting.  The selection committee proceeded to re-nominate Dr. Nemir by a wide margin. 

When the committee’s recommendation subsequently went to City Council, the land development engineer was inexplicably appointed in place of Dr. Nemir. City Council has the right to appoint anyone it wants, but we have to ask ourselves whether political influence was involved. 

The best way for citizens to make change is elections.  Let’s choose the candidates with integrity and a vision for our city, who work for us and not self-serving financial interests. 
   
Charlie Wakeem

The Monday Links: Rio bosque, PSB, City Planning and More

[Monday is "Links Day" with links gathered over the past week to online "stuff" to read and sites to surf that impact us directly or offer information about our regional issues. Please feel free to send me links to any conservation, environmental, simple living, city planning, energy and water, etc. stories that you have come across online.] 

The Rio Bosque Wetlands Park

Austin bird lover had great visit to El Paso, wetlands (A must read proving the point so many of us have made. Austinite writes: "The Rio Bosque wetlands were a real jewel that the whole city can be proud of. Please appreciate the intrinsic and economic value of your unique local wildlife, and preserve and restore habitat where they can continue to flourish."

New projects to save water, help bisque [sic] park,

EPWU, irrigation district working together on pipeline, drain, new lake Looks like the Rio Bosque will finally get a steady, permanent supply of water. Birds and birders will flock to El Paso now.

The Public Service Board (PSB)

David Nemir: City Council must leave El Paso PSB alone (online the Times now has it right)

Keystone Pipeline and Climate Change

Heinrich Speech In Opposition To Keystone Pipeline (It's not just the pipeline that's bad. What's worse is the vast ecosystem destruction caused by tar sands mining. We need to realize that we are part of these vast ecosystems that have evolved with us. Destroy them, and we undermine our survival.)

This chart of rising ocean temperatures is terrifying (Drives home more of what Sen. Heinrich was saying)

City Planning

System A and System B

When the research favors compact, mixed-use neighborhoods, why does government favor sprawl? 

Why small will go big in 2015

Green Cities Provide Demonstrable Health Benefits (Note to City Manager Tommy Gonzalez: trees work.)

Brand new apartments planned near the Downtown El Paso ballpark?

Brand new apartments planned near the Downtown El Paso ballpark? (An infill project here in El Paso)

Online course and webinar

Water in the Western United States

WEBINAR: Green Infrastructure and Flood Resiliency – Land Use Management as an Adaptation Strategy in the Built Environment 

January 29, 2015 – 12:00 PM EST

This webinar addresses assessment, planning, and adaptation to not only better prepare for the next emergency, but to sustainably manage flooding, and stormwater to maintain human health and a vibrant local economy. Participants will leave this webinar with knowledge about the latest innovative approaches to understand the effects of inland flooding and apply low-impact development (LID), site design, and smart growth practices at different scales of implementation. There will be reference to pioneering hydrology-based, sub-watershed approaches that have shown mitigation potential not only for storm water and flooding, but to the loss and degradation in water quality. 

Learn more and register here.

City Council Must Leave the PSB Alone

[This is an op-ed piece written by David Nemir who just recently left the Public Service Board. It was published in this morning's El Paso Times. Their title: "City Council must not leave El Paso PSB alone" was a huge mistake. Read David's op-ed piece and you will understand why City Council must leave the PSB alone and not try to take over its management and trusteeship of land nor must it attempt to reduce the EPWU to a department of the City of El Paso. Leave the PSB alone. If you forward any link to an elpasonaturally post, this is the one to forward.]

As an outgoing member of the Public Service Board, I have had a front row seat in observing water management in El Paso, both present and past.   This history guides El Paso’s water future.

In 1951, El Paso was out of water.   Drought, depleting wells and dwindling river allocations compelled El Paso leaders to seek bond approval to acquire needed assets and infrastructure.   When voters said no, El Paso leaders formed an independent Public Service Board and made it custodian of El Paso Water Utilities, the revenue from which could be pledged to servicing debt.   With the combination of an independent management and an independent revenue source, the PSB could raise bond money without voter approval, using bond proceeds to expand water and sewer systems. 

The model has worked well.   For much of the past 63 years, the PSB has used bond funding to leverage its asset base, addressing water needs proactively.   Indeed, strategic planning has been fundamental since the PSB’s inception.    Capital projects are planned and budgeted years in advance and are almost always completed within 5% of budget.   

The result is a water utility that is among the best in the country --- winner of awards and provider of some of the lowest cost water services in the state.   And as part of its planning, the Public Service Board has acquired significant land assets, paid for by ratepayers, that will play an important role in funding El Paso’s water future.

However, water ratepayers are falling victim to this success.   Since its inception in 1952, the PSB returns 10% of all water revenue annually back to the city as a franchise fee.    But recent City Councils have sought to modify that arrangement in order to generate new revenue for the City.  

In 2012 Council formed a blue ribbon commission to analyze the revenue share model and to benchmark it against franchise fee and payment in lieu of tax models used for water utilities in other cities throughout Texas and the U.S.   This resulted in a July 2013 report to Council that concluded that El Paso’s revenue share model is in line with other communities and is fair to both ratepayer and taxpayer.   

Unfortunately, City Council chose to ignore this report and in August of 2014, increased the revenue transfer to the City by a whopping 30%  by imposing an annual  “street rental fee” on El Paso Water Utilities, advocating that this be raised by new fees on non-residential ratepayers (eg: churches, schools and business).  

When City Council imposes a dollar of pass-through fees to the ratepayers, zero cents of that dollar go to meet water needs.  Regardless of whether a new fee is called a franchise fee, a street rental fee or an easement use fee, it is still a cost to the water ratepayer without an offsetting benefit in water services.   And it sets a dangerous precedent.   

Through 63 years of strategic planning the PSB has acquired an inventory of land and water infrastructure which it holds in trust for El Paso’s water future.   Through those same 63 years, City Councils have often had a shorter term, less strategic focus.  The PSB, its asset base and its operations should be left alone until Council can articulate a good reason for change.  City budget challenges are not a good reason.   

David Nemir

The Friday Video: Thermoelectricity from Hand Heat

Okay - it's not Friday. I just didn't get around to posting a video last Friday. Sheesh!

Here's a great video about a technology that utilizes energy wasted in the form of heat. The company is TXL Group, Inc. which operates right here in El Paso. The company's web site states: "TXL Group, Inc. is a Texas corporation that manufactures small scale thermoelectric solutions (today) and is developing large scale solutions (tomorrow) for capturing waste heat energy and turning it into dollars." 

My reason for showing this video is not just the "green-ness" of TXL and thermoelectricity. It's the fact that the founder and president of the company is none other than David Nemir, P.E., a member of the PSB and currently the Secretary Treasurer of the PSB. We are in good hands.

Here's the video:

PSB Vote Practically Torpedoes UTEP Centennial Park Water Program

On Wednesday, the PSB didn't exactly say "no" to the Centennial Park Water Reclamation project at UTEP.  However, there was enough skepticism on the Board to hobble the program. 

PSB Forms Water Smart Home Advisory Committee

There’s important news at the bottom of this letter.

First – some congratulations are in order.  Mr. Henry Gallardo joins the PSB. He takes over the “General Business Management” seat previously held by Ms. Maria Teran. We certainly thank Ms. Teran for her many years of service. Mr. Gallardo’s online bio is brief but he has been quite involved in our community. He is the incoming Board Chairman for the Hispanic Chamber of Commerce; he’s an Executive Board Member on the Foundation for the Diocese of El Paso; Gallardo is a current member of the Paso del Norte Group and works with the Boys & Girls Club. This list is just the start. “I am a lifelong El Pasoan who is deeply committed to the long term success of our community,” Gallardo says.

Congratulations also to the new officers of the PSB: Richard T. Schoephoerster, Chairman; Katherine Brennand, Vice Chairwoman; and David Nemir, Secretary Treasurer. Again, many thanks to former chairman, Ed Escudero, who opened things up to the public –especially the conservation community. That brought about increased understanding on both sides. Dr. Schoephoerster voiced a desire to work with me – but, by that, I’m sure he meant those with more environmental/open space concerns. Dittos back to him.

The PSB is taking application to fill the Financial Management seat vacated by Mr. Escudero.

By the way, why is there no Environmental/Conservation seat on the PSB? Shouldn’t there be one? Hmmm?

Perhaps the most important action taken by the PSB was the appointment of a Water Smart Home Committee.  The work of this committee represents the ongoing conservation legacy of Ed Archuleta who proposed this idea at the last two PSB strategic planning meetings.  He  introduced the presentation given by Ms. Christina Montoya. Wednesday’s meeting was the last Mr. Archuleta will attend as President/CEO. John Balliew now officially leads the water utility. The Committee will identify water saving technologies, devices and appliances or methods for the home; identify implementation challenges with city codes and requirements; and prepare a final report for the PSB and City Council.

Here is the presentation with a list of members:

Water Smart Home Advisory Committee by jimhtolbert434

Katherine Brennand recommended adding Jennifer Barr. I also was surprised not to see Jennifer’s name on the original list. I was also looking for Katie Updike and Dr. John Walton, an engineer, hydrologist and UTEP professor who has personally made home and landscaping improvements for rainwater management at his residence. He wrote the local book on the subject shall we say.

Meetings are tentatively scheduled for Mondays, February 18, March 4 and 11 from 6 to 8 p.m. TecH2O will be the venue. The meetings will be opened to the public.

Bill Hoover, the President of the local El Paso chapter of Texas Master Naturalists, sent out word about a new rain garden smart phone app. Speaking of Master Naturalists, training to be one starts very soon. Find out how, why, when and where.

Do check out a new camp, home and garden store: Reliance Outdoor Supply. It has camp gear, survival gear, rainwater harvesting equipment, hydroponics (soon), and food storage solutions. It’s located at 1060 Doniphan Park Circle, Suite F at Doniphan and Sunland Park.  (Map)

Finally, in the next few days you will receive two or three more e-letters which will include updates about the Asarco stack and the entrance into the Tom Mays Unit of the FMSP.  I will be catching up with you this week. I apologize for the gaps between publications. As most of you have probably heard or read, I am running for the District 2 City Council seat. I will be sending out an official announcement before too long. I’m already discovering that I have less time for all my projects because of this new and exciting endeavor. I’ll do the best that I can though to keep you informed and updated with news you don’t usually get in the mass media.  The El Paso Hiker e-letter will get rolled into this one for a while. Please keep visiting elpasonaturally. I post new things there more frequently than I write this e-letter. Thank you for supporting and advocating sustainability and conservation here in the greater El Paso southwest region of our beautiful Chihuahuan Desert.  We may be into the third week of the year. Nevertheless, may each of you have a very happy, prosperous and healthy 2013.