Voice of the People: Dear Editor by Gary W. Laesser - City News Group, Inc.

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Voice of the People: Dear Editor

By Gary W. Laesser, 30 Year Grand Terrace Home Owner
October 8, 2014 at 10:03am. Views: 29

Dear Editor Read Tom Schwab's letter to the editor in the City News today. I would like to comment on a few items. 1. With all the cuts that were instituted by the mayor and council, who voted unanimously, and I repeat, unanimously, our budget is in balanced into 2015. After that it is dicey at best. 2. Glad Mr. Schwab supported Measure "C.” 3. The sewer agreement with the city of Colton. First we need a little background to figure out why the city came to that agreement. The city of Colton had threatened the city of Grand Terrace with a lawsuit for $4 million plus legal fees. Why the lawsuit? Colton had instituted three prior rate increases on the city of Grand terrace.The very first was implemented and not the other two. All three rate increases came during Tom Schwab's tenure. There are no records in City Hall anywhere why the two additional increases were not implemented. Colton wanted that back money paid. It looks like we would probably lose the lawsuit and incurred substantial lawyers’ fees. Time to negotiate. If we had lost that suit we could owe $4 million plus legal costs and our sewer bills would increase to what they are now with the agreement. That was a lose, lose, lose. Tom was wrong; we did not receive a one-time cash payment from Colton. We paid Colton $1.2 million. They, in turn, kicked back $400,000. The city of Grand Terrace receives $300,000 annually for the lease of our sewer lines. If there are any future rate increases they will be offset by increases in our lease payments. Grand Terrace has already received $400,000 from Colton and invoiced them $300,000 for the first years lease. Colton also picks up any repair costs for the sewer lines. Given the circumstances I believe we got the better of the deal. I repeat, all this was done with the unanimous consent of the council and mayor.

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