Wednesday, September 10, 2014

OP-ED....Consolidating Water Systems

   The Problem with Consolidating Water Systems  by Dennis Dooley

   A lot has been said over the years about the need for consolidating water systems
for efficiency and convenience of water source availability.

   While I would normally share that opinion if it were easy, very few people have any idea what is involved, how much time it would take and how very expensive it would be.

   This is especially troubling considering that almost no government regulators understand the whole procedure.

   I will begin by pointing out the various different types of public water systems categories there are publicly owned, mutually owned and privately owned systems.

   The systems can be classified as either a community or a non-community system. All systems exist as a stand-alone entity that have all the legal rights under the law that any other legal entity would have.

   This precludes a water system being ordered to consolidate without due process of law.

   The three types of consolidations include existing systems adjacent to an existing system, an existing system that is separate from any existing system, and an existing community that has no water system, but needs one.

     The process begins with a proposal of boundaries for the consolidation, which will be known as the Improvement District (ID).

   All of the landowners (no renters allowed) are petitioned and money collected from the landowners to start the process.

   If there is less than 60% of landowners in support, then the process ends and all unused money is returned to the owners.

   Within 90 days this proposal needs to be presented to the water system being petitioned to review and adopt the ID.

   If accepted, some additional money may need to be collected, and the proposal submitted by the water district to the County Board of Supervisors.

   If the County Board of Supervisors approves the proposal, it will go to the next step.  If denied, the proposal ends and any unused money is returned to the owners.

   If the system requesting consolidation is a publicly owned system, the next step will require that more money may be needed and the proposal presented to the LAFCo for justification and approval.

   If the system requesting consolidation is a privately owned system, the next step will require that more money may be needed and the proposal presented to the PUC for justification and approval. 

    In either case, if denied, all unused money will be returned to the owners and the process ends.

   Within a reasonable time after this, the water district considering accepting the new ID will need to prepare a resolution to calculate the engineering and construction costs, and call for construction bids.

   This next step may require that more money will be needed. After the construction bids are received and opened, if they are all too high, the project will be terminated and any unused money returned to the owners.

   If the construction bids are within the preliminary budget, the water district will need to set the final engineering report amount including estimated reserves, bond council fees, financing fees, any other fees or costs, and set the final maximum assessment amount for each landowner.

   Then another hearing will be scheduled where all this information is presented and an official written vote called for.

     The water district will send out printed ballots for the ones who are allowed to vote (no renters) with a yes or no vote and a time deadline to return them.

   The votes will be held in a vault unopened until the scheduled hearing when they are opened and counted in a public hearing.

   If the vote fails, the process ends and any unused money will be returned.  If the vote succeeds the water district will sell the band, award the construction contract and begin assigning and collecting the assessments.

    Once the construction is completed and accepted, the system will be put into service and the district begins collecting monthly fees.

   As can be seen from this description, this is a very long and involved process that will require a lot of money and planning.

   Each step will require weeks or months to accomplish, and is not for the weak and impatient.

   Sometimes, certain steps can be eliminated because of mitigating situations.  Typically this process would take about two +/- years to accomplish.

   ( Dennis Dooley is a CCWD Director for District 4. You may contact him at dbdooley@sbcglobal.net. )


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