Result of Claim For Breach of Contract and Breach of Fiduciary Duties

UKIAH, Calif., Sept. 12, 2017 (GLOBE NEWSWIRE) -- Ukiah Valley Sanitation District (District) today announced that it has received $8,916,296 thus far from the City of Ukiah (City) as the result of the District being forced to file a claim on September 6, 2013 for breach of contract and breach of fiduciary duties.

Background:
Within the Ukiah Valley, the City of Ukiah and the Ukiah Valley Sanitation District handle most of the wastewater treatment services. The District is responsible for the surrounding areas outside the Ukiah city limits and owns the collection system within its jurisdictional boundaries. The City owns the collection system within most of its jurisdictional boundaries, a part of which is within the District’s boundaries (known as the overlap area).   

The City owns a three million gallon-per-day wastewater treatment plant (WWTP) that handles the inflow and treatment from both systems. The District contracts with the City for treatment of wastewater from the District’s collection system and the City is responsible for all operation, maintenance and regulatory compliance of its WWTP and collection system.

“The City has been responsible for collecting money for sewer services from all of our customers as well as for what it considers to be our share of the cost of maintaining and operating the joint sewer system and the City-owned WWTP for over 50 years now,” said Jim Ronco, Chairman of the Board for the District. “Once we discovered our customers were being overcharged and after countless requests for data and information regarding financial and operational management of the wastewater system, with no response from the City, we were left with no choice but to file suit to protect the interests of our ratepayers and have all monies misappropriated by the City returned to the District.”

What does the District want from the lawsuit?
First and foremost, the District wants to settle the lawsuit through mediation, on terms that will benefit both the District and City ratepayers. To this end, the District has recently been working through a mediation and settlement process with the City. As stated, the District Board of Directors want monies returned to its ratepayers that were withheld from the District, as well as a refund of millions of dollars that the City overcharged the District. The District also wants a clear and formal separation from the City so the District can ethically and transparently handle its own ratepayer’s money, monthly billing, and system operations to ensure that the District customers receive consistent and factual information directly from the District.

How does the money received from the claim benefit the ratepayers?
“We know that by taking over these tasks from the City, we can streamline a new business system at a significant cost savings to our ratepayers,” continued Mr. Ronco. “Our objective for the future is to substantially reduce the initial connection fees and stabilize rates while at the same time merge areas not presently served by the sewer system into the District.”

In the upcoming weeks, District ratepayers can expect more information on the following:

• Return of Value: The District intends to provide the ratepayers with rebates and system and operating improvements.
• Monthly Charges: The District will be addressing the rate structure with the goal of reducing the monthly charges to all its ratepayers.
• Organizational Strategy: The District intends to assess the value and benefits of operating under a valley-wide cooperative with other water and wastewater agencies to fully maximize cost-saving opportunities.
• Infrastructure Upgrades: The District has identified the need for additional treatment facilities to serve those who currently have no access to an effective wastewater treatment system. This is one major strategy the District will be employing after assessing all cost-effective treatment options to return maximum returns on ratepayer investments.
• Production of Drinking Water: Any new proposed system enhancements will be based on proven technology currently utilized to produce drinking water in areas where there is no water. Partnering with other agencies in the valley will maximize cost sharing and ensure beneficial use of natural resources. 
• Help solve Russian River Pollution Problem: There is currently a pollution problem in the Russian River. The objective of these system enhancements will help the pollution problem by taking some load off of the City’s wastewater treatment plant.

About Ukiah Valley Sanitation District
Ukiah Valley Sanitation District was founded in 1955 to provide wastewater treatment services to ratepayers in and around the City of Ukiah. In 2008, the District's Board of Directors changed from being comprised of two Mendocino County Supervisors and one City Council person to a five-person independent board elected by the District’s ratepayers. The agency is located at 151 Laws Avenue, Ukiah CA, 95482. For more information, go to www.uvsd.org or visit our Facebook page for current updates regarding pending litigation and District activities.

Press Contact Information:
Bonnie Harris 
B3 Communications, Inc.
Phone: (415) 332-5816
pr@b3communications.com 

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.