How are the increased wholesale costs specific to Lodi? How did the PVWC demonstrate that its “wholesale water costs” are in
excess of the inflation rate increase?
It is not Lodi’s responsibity to pay for other towns’
costs.
It is not Lodi’s responsibility to pay for higher employee salaries, pensions and benefits at the PVWC. These public authorities and commissions are full of waste, patronage, and excesses. Just ask Tony Luna.
Courts have already
decided that the PVWC violated their agreement.
Lodi has grounds to end their lease early. They should really consider it.
From today's news:
It is not Lodi’s responsibility to pay for higher employee salaries, pensions and benefits at the PVWC. These public authorities and commissions are full of waste, patronage, and excesses. Just ask Tony Luna.
From today's news:
From the Superior
Court where Lodi prevailed:
1. Borough of Lodi’s Argument
Lodi asserts that
the parties entered into the Lease with the intention that any requested
increase in wholesale water costs had to be specific to the Lodi water
system. Lodi states that during
negotiations of the Lease, Philip Toronto, the Mayor of Lodi at the time the
Lease was signed, had specific conversations with individuals from PVWC,
including Joseph Bella,
that any increase in wholesale water cost in excess of the inflation rate
increase had to be specific to the Lodi water system, particularly the cost of
chemicals to treat the water supplied to Lodi. Lodi contends that it was specified if
something unforeseen arose, PVWC was required to prove their costs. Furthermore, Lodi asserts that PVWC has not
produced nor proven any of their costs or increase in costs for the Lodi system
to justify the increase pursuant to paragraph 5.02(b).
Legal Analysis
2. “Wholesale Water Costs” under Section
5.02(b)
The courts finds
that PVWC’s increase of 25% and 29% for 2009 and 2010 respectively, were
improper and violate the terms of the Lease.
Section 5.02(b) states that the increase pursuant to Section 5.02(a)
shall be further increased by the amount necessary to recoup the increase in “wholesale
water costs” in excess of the Inflation Rate Increase. If PVWC attempts to charge a rate increase
above the Inflation Rate Increase, it must demonstrate that its “wholesale
water costs” are in excess of the Inflation Rate Increase, and can only do so
in the amount necessary to “recoup” its “wholesale waters costs”. It is undisputed that “wholesale water costs”
is not defined in the Lease. Based on the nature of the Lease
and the evidence presented at trial, the undefined term “wholesale water costs”
is properly interpreted to mean any extraordinary costs incurred by PVWC that
were specifically associated with supplying
water to Lodi customers, and does not include any costs associated with other
water supply systems.
