Here is an update of the initial survey; from this small sample size of 47 responses. The actual vote of 300+ rate payers, could go either way. What this does show; is that people are pretty decided on either Bakman or Calwater; no responses in favor of American water or the County.
I sent out a survey last night. This is a very small unofficial sample of approximately 10% of the rate payers (34 responses) So remember the results, which all the rate payers mail in, could be totally different. Remember the county ultimately makes the decision; but this will give an indication of how the people who respond to this survey feel. There is no disputing that; whether we like it or not.
In my opinion, the only thing worse than a bad decision is no decision. I will update the results later this weekend when more responses come in.
Rolling Hills Water Discussion
Thursday, February 8, 2018
Friday, January 19, 2018
Update
Update 1/15/18
Supervisor Frazier tells me:
“The
RFP deadline has ended (January 5th) and we ended up with a third
company, California American Water, submitting a proposal. Staff is reviewing
and scoring the proposals and we should have a recommendation and hearing in
February”.
This means the county will review & discuss the three companies who submitted proposals to the county. (Bakman, Calwater, & American Water) The county
will score and possibly conduct a hearing in February. The county board of supervisors will
ultimately decide if and to who, they may sell the system to, and who they feel is the best candidate.
Monday, December 4, 2017
A Letter about RH Water from David Frisby
Contents
Intro
It’s been a while since I have posted an update. Besides the fact, that I have been extremely busy
managing my business and employees, I have been waiting to find the time to
write this. As Eric stated in his letter, we are writing these updates as
personal opinions, after being closely involved with the developments related
to the sale and condition of the Rolling Hills Water System. As most of you know, I started reporting on
my blog, about Rolling Hills Water, long before I joined as a board member. This will probably be my last post for quite
a while.
For those who don’t know, I am fully invested in Rolling Hills,
and I believe in RH; as I just built a 6200 sf home on an undeveloped lot on
Sierra View St, and I still have a prior home on Fig Grove Rd, built in 1976. I’ve lived in the central valley all my life,
raised by a single mother, and I have always worked for everything I’ve
received. As a youth, I started working
as a janitor’s aid. Then at 15, I began door to door sales. Every day after
school and every Saturday I knocked doors selling newspaper subscriptions. I’ve
walked just about every street in Fresno and knocked on thousands of doors. At
18, I knocked doors for Fresno Cable for 9 years, until starting my own vending
machine company at 27. After 3 years and
over 100 locations, decided to open a restaurant, on Cedar and Shepherd called
Burrito Loco. What a challenging
business! This is where I truly learned how to hire and manage people. After 6 years and while working on my secondary
mathematics teaching credential, I decided to get into the public sector. I sold the restaurant, and began teaching high
school and middle school mathematics for 6 years; I quickly realized teaching
is one of the lowest paid, hard work careers found; my hat is off to
teachers! Luckily the charter school I
was at, had a complete turnover of staff and everyone was let go. This is when I found my best suited career to
date, and strangely enough all the ventures leading up to this, is what
prepared me to be the best at what I do. I help people manage their everyday risk. Today I have 10 employees and over 3000
clients, as an Allstate Agent, and 6 time honor ring champion.
Why does all this matter?
Because I started from the ground up, like many of you. No money given as a head start, and no father
figure to learn from. These hard
lessons, figuring it out on your own, are the best lessons one can learn. It makes you stronger; the more challenges you
face in life and overcome, the wiser you become. None of this comes without risk, starting a
business is like building a well. There are no guarantees, but if you do your
homework, put your time in, and have the right intuition you can achieve a
successful return.
What are the Possibilities?
I believe in Rolling Hills; If we can establish a strong
redundant water system, homes our little community could hold far greater
property values than homes in Riverstone.
There are so many possibilities for Rolling Hills. However, like a business, to make Rolling
Hills great, it takes investment and leadership. Just think what this community could be, if it
were gated, we had new roads, and we had a maintenance program. We are in such
a desirable location, just look around to see, this is where everyone wants to
be! In addition, our large lots are a
thing of the past, and believe it, most people do prefer more land; it’s just
not feasible for todays developers.
What is the status on the water situation?
Since the last big association meeting, where we voted in
favor of Cal Water 120 to 43, Supervisor Frazier decided to wait for Bakman
Water to submit a proposal; with the strong encouragement from two of our RH
Board members. Bakman’s plea was they didn’t have enough time to develop a
proper proposal, and “30 days would not make a big difference” in the grand
scheme of things. However when the 30
days was awarded, then begun the continuation of weeks thereafter to have
meetings and explain the proposal to the county, our board, and have a public
meeting to inform the ratepayers. At
that meeting there were approximately 50 attendees, to hear about Bakman’s
proposal compared to the 180 ratepayers who turned out for the original vote at
Valley Childrens. This is understandable
because many of the people who voted, have already made up their mind and voted
it; thus why show up for another meeting?
The original plan given by Supervisor Frazier, at the
meeting between the County, Bakman, and our Board, was that the County B.O.S.
would present this to the County Board for a vote this December. I made sure to ask him, before the meeting
adjourned, if he would take it to the board this year.
I have made multiple calls to Supervisor Frazier’s Office,
and I have been told that we were not scheduled on the calendar yet, because
the situation is with county council.
Now, as of last week, my sources are now informing me they will not vote
on it this year. This week I spoke with
Supervisor Frazier, he stated they have submitted a request for documentation
to both Bakman and Calwater. They will
use this document and its answers to aid in their decision making, and to form
the contract outlining the responsibilities of the company taking over. He also stated, they plan to mail out ballots,
by mail, to each ratepayer, and he will use the results of that vote to aid him
in his vote.
Did our vote matter?
I feel that it had an impact, showing the voice of our
community. However with all the stalling
and behind the scenes political juggling, who knows what direction we will wind
up in. I feel the stalling in waiting
for the Bakman proposal, and now explaining it, has now created doubt amongst
the county. In contrast to feeling that everyone at the county was “on board
for Calwater” at the July meeting when they presented the county rate study
findings to our RH Board.
Details about the Bakman Proposal
In October Bakman Water revealed their proposal to us, below
is a summary of that proposal:
Shallow Water Wells
Their plan is primarily based upon using shallow water wells
and adding a new well into the system. Their shallow water well theory is based
on the premise that wells around the 400 to 500 foot range will have less problems
with water quality. Their claim is that
deep water wells, like the newest one we have (around 900 ft), supply water
with more contaminants; specifically the arsenic, which is our main culprit at
well 3.
Concerns with the shallow water well theory
A concern from a resident of 42 years
At the Bakman presentation, a resident of 42 years in
Rolling Hills, stood up to ask why they thought shallow water wells would be
the solution? He informed us that 30 years ago, Rolling Hills residents were
informed their wells were not deep enough and that shallow water wells were
causing problems back then. (If the gentleman who spoke, reads this, please
contact me. Or anyone who has experience with shallow water well issues in the
past)
Bakman’s response was “their geologist Ken Schmidt who is
the authority on water wells in this area, informed them, this was our solution
to water quality”. Bakman is basing
their plan on the opinion of this geologist; which we have not seen his opinion
in writing yet. I have concerns with
this response for two reasons: 1. Where does the buck stop? If its decided that
our next service provider is going to use shallow wells, and there is a problem,
where will the finger point? Is Bakman
going to point there finger toward the geologist? Most likely, yes, because of the way they
answered. They didn’t say they think
this would solve our problems; they said their geologist thinks this
would. 2. Just about every well driller,
I’ve spoken to, uses Ken Schmidt. In fact, he works with the county, in
developing most of their wells. Most
likely, he was the geologist involved in the development of our last well;
which we are having problems with. I say
this because county employees have told me they use Ken Schmidt when developing
a new well.
What happens if shallow wells run dry?
Let’s face it, with all the development going on around us,
and the history of droughts we’ve experienced, there is a good chance we may
need to go deeper. There are tens of
thousands of homes slated to go in around us; in addition to a new Community Hospital
on 12 and 41. They plan to make this
area into a little city. If we are
sitting here with shallow water wells and the drought hits, who is going to run
out of water first?
Riving Old Wells or Using that Land
Another strategy of Bakman Water is to try to revive old wells
or use the land where the old well was located.
From the documentation they showed us; they revealed:
1.
They may be able to use old well sites to drill
a new well next to it. However when asked if the sites would meet they current
well site requirements of 100ft by 100ft, they didn’t know. Back when the old wells were developed there
were less restrictions; these days, the county code requires 1/3 of a football
field for a well site; along with a lot of other expenses that were not in the
Bakman budget for the development of a new well site.
2.
They revealed, the only well site they may be
able to revive, would be the S&J well that we used to lease. There are two problems with this: 1. It’s an
ag well 2. We don’t have permission, from the land owner, to use it any longer.
Funding
Bakman’s proposal is fundamentally circled around. Rehabbing
the 2 wells we have, and digging a new well. This is the exact same proposal
the county presented; there are only 2 differences:
1. The cost to build the new well.
2. Bakman’s plan to use shallow water wells.
2. Bakman’s plan to use shallow water wells.
This leads me to the financing of the new water well. Bakman admitted that his company would have
to secure long term financing, in order to fund the capital improvements
(installing the new well). Because his company
is unable to show the cash reserves, without borrowing, needed to fund the
proposed new well. His team brought a letter of credit from Tri-County bank,
stating he has the ability to qualify for a $800k line of credit. This concerns me, because I don’t see how we
could even consider handing over our water system to a company, for free, who
has to go get a loan in order to make the improvements they admit are required.
In addition their numbers are very concerning. The Bakman
proposal is to secure a new water supply within 6 to 12mo. However their presentation projected the
costs estimated to drill and install a new shallow water well only; at an
estimated $800,000. Bakman proposes to
fund $800,000 by using low interest rate loans, however the $800,000 costs
projected in their power point presentation, shown at the firehouse in October,
left out the costs needed to secure a new well site, the costs to fence
and connect the site to utilities, and any other water treatment which may be
needed. These additional cost could be hundreds
of thousands.
Calwater’s Proposal
In Calwaters proposal:
1.
They have pledged to put in $1.7 million in
capital improvements, which they already have in cash, and do not need to apply
or wait for a loan.
2.
They have a commitment from Richard Gunner to
use the Gunner Well on Lanes Bridge and 10; which is already in, and is a
commercial grade well, not an ag well.
Yes they will have to treat the water for contaminants; however they are
using the pledged funding improve treatment, and process the water to meet Ca
Water Board Standards.
3.
Their plans are to manage the water and waste
systems for many new developments in this area and they have an agreement with
Richard Gunner for his future development.
4.
With Calwater we have our best chance to get
interconnected with new development in this area, creating a redundant supply
of water capacity (meaning if a well goes down, there will be many other
sources to carry on our water delivery needs.
5.
With their plan, they plan to get our water
system improvements integrated with other rate payers, to prevent only 335 rate
payers from carrying all the costs of capital improvements.
6.
Their plan to get us off restrictions as quickly
as possible; it’s all dependent on when or if they get the approval from the
county, and how many months it would take for the PUC to approve the sale. This process is the same for any company who
takes over.
Summary
In reality we all have the same goal, unfortunately we just
can’t agree on the best horse to get us there. I think we can all agree; we all
want the most reliable, highest quality water system, at the lowest possible cost. However it is an oxymoron to ask for the
highest quality and the most reliable, while having the lowest cost. Because
the first two needs take away from the third.
One of the 3 have to give. You have
to think about value, while prioritizing the order of the 3. It would seem logical that reliability would be
#1, while quality is #2, and while price is always a concern, it is cannot be
at the expense of the first two.
It appears we have two viewpoints (I'll call them Side B & C): Side B (Bakman), is opposed to any large corporation
and their corporate profits, intermingling into their life. They would prefer to do business with a small
business owner, in order to save money; even if that means sacrificing reliability,
quality, and financial strength. Side B’s primary fear is that Calwater
will double, triple, or further increase our water rates, once they get the
chance, and they fear that one day they may be paying $200 or $300 or maybe
even more for the water they could have received from a local company for
approximately $100/mo. Side B’s ultimate
concern is the price of their monthly water bill.
Side C (Calwater) is all about getting the strongest company
possible, who has the most reliability and redundancy; to get a company here
who has the financial strength and millions of dollars in the bank to make
improvements needed; when they are needed; without having to borrow money, or stall,
to figure out where the money will come from.
Side C is willing to pay a little more for this insurance, peace of
mind, and reliability. Side C
understands that in order for Calwater to raise the rates, there is a process
in place with the PUC, in which Calwater must justify any increase in the
rates. However side C is willing to pay more, if needed, so that they do not
have hear about water problems any longer, and so they will enjoy increased
property values.
Ironically, the two proposals show the proposed rates are
about the same anyhow. However side B is
convinced, the large corporation will jack up the rates as soon as they can,
and they will get bamboozled. All the
while, side C is willing to pay more for the security and financial strength,
but most likely will not have to. How is
this possible? It’s because of having more
rate payers to absorb the costs of the improvements; it’s not just the 335
ratepayers!
Calwater is an A class water company, with 2 million
customers, with plenty of capital to invest; while Bakman is a B class water
company, with a few thousand customers, who has to borrow money to make our improvements.
In whose hands are you going to put your most valuable asset in?
Friday, November 24, 2017
Letter from Eric Olsen Regarding Bakman Water Co.
I agreed to post this letter on my blog, written by Eric Olsen, to give an alternate point of view:
Fellow Residents of Rolling Hills,
I am writing this not as a member of the board but rather as a resident who has had the opportunity to hear every presentation and attend every meeting with the County, CalWater and Bakman Water Company who also has the benefit of having run a water system with considerable more capacity than ours for a few years. I am by no means an expert in the water out here but my experience has given me just enough knowledge to have a good idea if a proposed course of action will work. It is my conclusion, after more than a year of research and work on our water system that Bakman Water Company is the best choice in the short and long term.
Bottom line up front. I believe that the County, through regulation and ineptitude, does not have the ability or funding (through their waste, not because we don’t send them enough) to adequately maintain our system. Remaining with the county will keep us in a state of perpetual debt, skyrocketing costs, and inadequate supply in perpetuity. CalWater and Bakman both have the funding and technical experience to maintain our system in a way that will ensure adequate water supply and will be, without a doubt, better than the County. Of the remaining two, it is my opinion that Bakman Water has: 1. A history of providing good water at a better price. 2. Specific solutions to our water problems that show a better grasp of our local geology with a more informed and technically sound solution. 3. A specific solution which incentivises them to get us off water restrictions considerably quicker than CalWater.
First, Bakman has a history of customers happy with his rates, supply and quantity. We have a Rolling Hills resident who has 41 years of history with either living in or having family members living in Bakman’s district. She says the water is better and less costly than anywhere she knows in town. Empirically, with the exception of a couple cost of living adjustments, we can see that the water costs haven’t increased in Bakman’s district since 2007.
In contrast, CalWater proposed a 30% increase to rates in Selma (the water system they say our rates will be tied to) in 2015. The resident in this article (http://abc30.com/news/private -water-company-seeks-steep- increase-in-selma-water-rates/ 874080/) was paying $145 in an area where the maximum lot size is one half acre before the rate increase.
Similarly, I was able to find that the Quail Lake neighborhood began exploring privatization in 2010, CalWater was approved to take over the system by the County Counsel in 2012 which was approved by LAFCo in 2013 (http://www.fresnolafco.org/do cuments/staff-reports/March%20 2013/11-DOD-13-1.pdf ). Of specific interest to me in this public documents is the following excerpt that sounded very familiar:
“Cal Water’s fees are regulated by the California Public Utilities Commission and approval by the PUC will be required before Cal Water can take over the operations. In order to keep costs down, the water portion of the operations will be included as part of the City of Selma service area so as to increase the base of customers and ultimately spread the costs of various maintenance and operational aspects out across a wider customer base. Sewer service is not offered in the City of Selma.
A survey of the Quail Lake residents was conducted on April 26, 2012, which resulted in 82.6% of the respondents being in favor of the transfer of the water and wastewater systems to Cal Water. A public meeting was also held on May 8, 2012, at the Quail Lake Clubhouse that was attended by the County, Cal Water, LAFCo, and approximately 75 residents.” (From “DOD-13-1” document)
Despite the vote noted in this document, rather than getting water in 2014, the county and CalWater were granted a one year extension to complete the transition (http://www.fresnolafco.org/do cuments/staff-reports/February %202015/CSA%2047%20Staff% 20Report.pdf). Strangely, I can’t find any information until an entry from 2016 stating that the county completed a “218 Election” to raise rates and had replaced a pump (http://www.co.fresno.ca.us/ho me/showdocument?id=9354). I don’t know what happened in that time except the statement:
“prior to finalization of the agreement, members of the community voiced their opposition to the transfer of water and sewer services.” (From “DOD-13-1” document)
CalWater may bear no responsibility for this deal falling through, I don’t know because I wasn’t there. But I am worried about what happened. Quail Lake was where we were in 2010, voted 82.6% for CalWater in 2012 and not until 2015 did the deal with CalWater somehow fall apart. And now the community has to pay more to the County and their system is still under County control. I can only surmise there is more to the story or something happened that was bad enough for the community to go from 82% in favor to enough apposed to stop the deal. Either way, we don’t want Rolling Hills to be in a situation even close.
In summary, while both companies have maintained good supply and quality throughout the years. The difference is that I have found nothing but good reports out of Bakman’s water district whereas CalWater seems to have a local history that concerns me.
Second, Bakman’s solutions are based on our system and local experience whereas I don’t believe CalWater’s are. I have personally watched Tim Bakman and his company leadership walk around our various well sites and brainstorm possible ideas. He has spent hours with the most respected people in this area on water.
For example, Mr. Bakman was inspecting our well #3 and asked the County Engineer why our Arsenic filter wasn’t working. He was told it was because of the very fine sand. The Engineer stated, in order to solve it, we would have to get either an entirely new type of filter or we would have to install another one to better filter enough water. Tim asked why we couldn’t just filter out the sand, which is much easier and cheaper and will then allow the existing filter to work correctly. The county engineer had obviously never thought of this but after thinking for a moment said he didn’t see any reason it wouldn’t work. I bring this up because installing another filter is exactly what CalWater and the County proposed.
As a matter of fact, there are very few differences between CalWater’s proposal and the County’s. And this makes sense because, if my memory serves, CalWater’s proposal was formulated using the same “expert” consulting company the County used for our Rate Study. This consulting company is based in the Bay Area and I was not impressed the time I met them. To a finer point, after one meeting, I would never consider hiring them for any business I was involved with.
In summary, Bakman Water knows the local geology, knows and works with all the local experts in the field, and wants to find innovative solutions. CalWater uses Bay Area consultants to come up with the same solutions we have been using for decades.
Third, Bakman Water knows how to create a win-win to solve our problems. He isn’t going to raise our rates until he gets us off restriction. He wants our system and we want water. This is how a business owner thinks. He will prove he can do it before he charges us for it.
It is undeniable from the numbers that Bakman will be less costly in the short term based on his proposed rate schedule. But we all know talking about water rates more than three years in the future is not very accurate. I think Bakman’s history of low rates shows that, whatever the rates go to, he will maintain our rates as low or lower than we will find anywhere else. This is made even more profound for me when compared to CalWater’s history of significant rate increases. It is noteworthy that CalWater will increase out rates on the first day (to approximately $115) and not get us off restrictions until the summer of 2019 “hopefully” at which time we would be going through our first rate study with them for a probable rate increase in 2020. With Bakman, we probably wouldn’t even see rates of $108 until 2019 or 2020 and we will be off restrictions by next summer (2018).
In summery, Bakman Water Company’s proposal incentives him to meet our immediate needs, immediately, and keeps our rates lower in the long run whereas CalWater doesn’t.
To address some concerns I have heard about Bakman.
First, the financial report showing he made a small profit last year. None of what I am about to write comes from Bakman Water. But I have consulted for a lot of business owners and this lack of profit shows he is a smart business owner, not that he doesn’t have enough money. He invests his money rather than paying taxes on it and therefore shows the smallest profit possible. These investments can then be used as collateral for loans, infrastructure improvement, and equipment upgrades of any number of other things. I have worked with companies approximately the same size as Bakman, based on external indicators, and I would guess he has a standing line of credit for well more than $5,000,000. Once again, I haven’t seen his books. But based on looking at the financials of many businesses, I have no doubt at all that Bakman Water has the ability to financially back our community in anything we could possibly have. I am also even more confident in my assessment of Bakman’s financial strength because the California Public Utilities Commission (PUC) has seen their plan and stated in writing that the Bakmen Water Company had the funds and technical expertise to run our system. And the PUC being the regulating agency for Bakman Water from the beginning, they have the access to his history and know what he is able to do.
Second, I have heard a couple of comments about fixing the system right instead of “bailing wire and bubble gum.” I assure you, the ideas I have heard from Bakman aren’t “patches,” and are, in fact, good fixes. Like the story above about the arsenic filter, they fix the root of the problem. Rather than getting a bigger, more expensive, Arsenic filter to filter out more of the sand, Bakman proposes to filter the sand with a simple sand filter so the existing Arsenic filter can do it’s job. This gets our system fully functional at a fraction of the cost.
Lastly, Tim Bakman’s performance at the Children’s Hospital meeting was not good and turned a lot of people off. Despite having considerably less time to prepare than CalWater, I hoped he would at least have more. I asked him about it afterward and he told me he would not give a number until he was 100% sure that number was the right number. He sees giving a proposal as his personal promise to us and he will not allow his company not to keep his promise. Once again, I compare this to the only other real proposal by CalWater. We know that, as of a few weeks ago, they hadn’t even notified the PUC that they were looking at our water system. Bakman has. CalWater based our proposed rates on Selma’s rates but they do not have PUC approval to do so, Selma has much smaller lots, and there is a real question as to whether the PUC would even approve our rates being combined with Selma – something they haven’t historically done. When going through these concerns, I realized that, while CalWater’s proposal was very good, they really have very little hard information behind the numbers.
In conclusion, I think Bakman Water Company will get us water sooner, gives us a better chance of bring happy with our service, and will be less expensive in the long run (without compromising service quality).
Thanks for taking the time to read this long post but I wanted to pass on all the information I have as I see it.
Eric
Tuesday, October 24, 2017
Community Meeting this Thursday Night at 6:30 at the Rolling Hills Fire Station
This Thursday there will be a presentation by Bakman Water Co to explain his proposal. I will be posting my personal thoughts, on my personal blog, regarding the proposal after the meeting.
Wednesday, October 11, 2017
Update on 10/11/17
I’ve been getting a lot of inquiries from residents
wondering what is going on with the water system; after our majority vote for
Calwater on 9/7/17.
After requests from Bakman Water for 30 more days to assess the water system. Supervisor Frazier agreed he would give Bakman Water 30 days, after our last meeting to submit a proposal. What I have heard is that Bakman has turned in a draft to Supervisor Frazier, but is still finalizing his numbers. He plans to meet with Frazier and discuss the plan.Cal Water 120
Bakman Water 43Madera County 9Delay the vote 8Any Private company! 2
Tuesday, September 5, 2017
Update on research...
With the big meeting on the horizon, residents have been doing
their due diligence through research, and forwarding it to me. There have been
a few discoveries I would like to share with you. First, I would like to share a concern
related to the Madera Ranchos Water Company Inc. Second,
I would like to share the two most recent financial reports for Calwater and
Bakman Water Company.
It has been brought to our attention that a privately owned
water company called Madera Ranchos Water Company Inc. was sold to Madera
County approximately 20 yrs ago. The Ranchos Independent, has an article
printed in 2014, explaining the history of the Ranchos water system (Link), and the article
states that in 1996 the county purchased the water system from the Madera
Ranchos Water Company Inc. for $350k.
On a document registered with the SOS, (link)
it shows Francis H. Ferraro as the CEO of the Madera Ranchos Water Company Inc.
A concern has been brought up regarding a connection with Francis S
Ferraro who retired as an officer of Cal Water in 2016. He is now a
Manger of Special Projects, and has represented Cal Water in meetings regarding
the Rolling Hills water system. This publication shows the current officers
and directors of Cal Water. (Link)
I contacted Francis S. Ferraro by email to inquire about the
connection. Mr. Ferraro expressed that he has never been involved in the
operations of Madera Ranchos Water Company Inc., however, his father was.
He shared that his father sold the system, but had to take it back after
it was sold when the new owner did not operate it correctly; he then proceeded
to sell it to the county. Additionally,
Mr. Ferraro stated he would be available at the meeting to answer any
questions.
My analysis is this, regardless to who was involved in the
Madera Ranchos Water Company 20 years ago.
Calwater is not one person, it is large corporation, with a strong
accountable history. (Link) In this financial report it shows there are
many directors and officers, and over 1000 employees, they provide water to
over 2 million customers and to over 100 communities. The company is profitable
and shows a profit of over $40 million per year. (Link to CPUC website 2015 Annual Report).
(Link to Financial Report) Bakman on the other hand, who
is a great guy, is only showing a profit of less than $9k for the year ending
2015, according to this financial report found on the CPUC website, and other years at a negative profit. (Link to Financial Report 2015 on CPUC website) (Link to 2010, 09, 08 report found on CPUC website)
Below is a Statement from an Association Member, who asked me to add this to the Pros and Cons.
"I believe Bakeman is going to be running Riverstone Development,
Riverstone is how I think his business is doubled in the past 12 month.
We can not tie together with Riverstone unless we pay many thousands in hookup fees per home.
This is because Riverstone would have to cut the number of homes in their subdivision to be able to give us water.
That leaves us where we are right now 335 connections paying for infrastructure wells and the whole mess.
CalWater I believe will be operating the water system for Gunner Ranch subdivision.
Gunner as part of a settlement in a legal action does not have to count any water they provide to either Rolling Hills or Children's Hospital against what they can pump.
Stability is one of the drivers in my decision.
If Bakeman dies where are we. Calwater could lose a dozen employees and another would step up.
Property values:
I refer to Calwater as the PG&E of water companies.
If I am selling my house and the buyer wants to know who provides my power and I say PG&E, end of discussion
If I am selling my house and I tell them I get my power from AAA power Company, I will be providing documents all week."
Below is an Interesting video of Calwater just in case your interested.
Saturday, September 2, 2017
Update on Meeting this Thursday Sept. 7th at 7:00pm
Basically all RH
residents have the same common goal:
We want a reliable, stable, and trouble free water system at
a fair price. We want these problems
related to water delivery, to be a thing of the past, and we do not want to
hear about the details of why our water system doesn’t work, or that we need to
raise more capital to repair or improve our water system.
We want to “Re-Green” our community and increase our
property values back to where they should be, if we had a reliable and trouble
free water system. Or we at least, want
a company that we can trust and hold accountable to keep our water system in
good order.
We want a company that knows what they are doing, has the
capital ready to fix the problems immediately, when they arise, and we don’t
want hear about the details. We want a
company that has their management in order with extensive experience, a good
reputation, reliable, and has the financial resources to keep us in water.
Below is a table showing what arguments have been vocalized
either for or against the proposed options.
These are arguments people have expressed, and may not be 100%
accurate. These are the arguments I have heard; which is hearsay... This is why it is important that you attend
the meeting on September 7th to hear from the presenters, and decide
for yourself what you think.
Again, please be warned, this comparison has different opinions and viewpoints. I tried to be fair to all sides, however I have a vested interest, and therefore a strong belief in what path is best for our community. It’s important you are at the meeting to get first-hand information from the companies themselves. Please remember the vote this Thursday is non-binding, it is only to give our supervisor an indication of what path the rate-payers want the B.O.S. to pursue. Basically the vote is between two options Calwater and Bakman; I have not met one person, who would consider "staying with the county" not even "The County Employees Recommend It"
Again, please be warned, this comparison has different opinions and viewpoints. I tried to be fair to all sides, however I have a vested interest, and therefore a strong belief in what path is best for our community. It’s important you are at the meeting to get first-hand information from the companies themselves. Please remember the vote this Thursday is non-binding, it is only to give our supervisor an indication of what path the rate-payers want the B.O.S. to pursue. Basically the vote is between two options Calwater and Bakman; I have not met one person, who would consider "staying with the county" not even "The County Employees Recommend It"
Options
|
Pro Arguments
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Con Arguments
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County Owned
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1. They can’t raise rates without a 218 election.
|
1. Proposed 7.7m additional bond needed, resulted
from the engineering study
2. Their track record with the RH Water System,
has multiple failures.
3. They cannot make major improvements without
raising more capital and holding a 218 election.
4. All the costs of any improvements must be
financed by the 335 RH rate payers only.
5. They can, and have before sued homeowners
who refused to vote in a rate increase. http://www.fresnobee.com/news/local/article19537395.html
|
CalWater
|
Some Proponents Claim:
1. Combining
our water system with 6,000 rate payers in the Selma water system, which
would disperse the cost of capital improvements among 6335 rate payers versus
the 335 in Rolling Hills Only
2. CalWater
is willing to make a substantial investment in our water infrastructure and
has committed to do so in writing.
3. CalWater
has pledged to investigate the lowest cost solutions applicable first,
however willing to spend the higher proposed amount; if necessary.
4. Low
income Program LIRA, as high as 50% deduction in the monthly rate.
5. CalWater
has the resources to invest in improvements when an emergency occurs.
CalWater has more than 509,000 customer connections, more than $400 million
in annual revenue, and more than $1.5 billion in gross utility plant assets.
6. CalWater
has teams of engineers, who work on water quality issues daily, they have
more experts who can find solutions to our water quality issues.
7. They
have the legal experts, on call and already on retainer, who can find
solutions to difficult legal problems; as they did with the existing county
bond debt.
8. They
have been working with county council to find a solution to the requirement of
retiring the current $3.7m bond. These
solutions required considerable time and investment by Calwater. It is highly unlikely this type of solution
would have ever been discovered without Calwater’s investment.
9. They
may acquire additional assets in the close vicinity, which could interconnect
our water system with others for redundancy
10. Calwater
states that Bakman Water is also regulated by the PUC, therefore follow the
same rate setting guidelines in relation to a percentage over investment.
11. The
proposed unmetered rate of $118 month is fair and with the low income program
it could be substantially less for those who qualify.
|
Some Opponents claim:
1. CalWater
is guaranteed a 9% profit by the state, therefore they are incentivized to
spend more money on improvements then necessary, in order to raise rates
& increase their profits.
2. Calwater
will not look for the most efficient solutions, because they make more by
spending more.
3. Calwater
is a big corporation with massive overhead, which will costs rate payers more
than a small company, with less management.
4. Some
residents don’t want to be tied to the Selma water district, whose rates are
based on smaller parcel sizes.
|
Bakman Water &
Investment Group
|
Some Proponents Claim:
1.
Bakman Water Company and his new investment
partners. Would find more efficient cost
effective solutions. Which would save
ratepayers money by spending less on improvements, therefore charging less in
water rates.
2.
They are not guaranteed a profit by the state
public utility commission, because they are a smaller company, which will
cause them to be more efficient in finding solutions. This would result in
them investing less in capital improvements, therefore saving us money in
lower rates.
3.
Bakman’s thinking outside the box, and thrifty
solutions will be more efficient, and take less money. They are faster
solutions, and these creative solutions could get us off water restrictions
faster than CalWater will.
4.
They are local and they are customers love
them
5. Bakman
Water Company has doubled in size during the past 12 months
|
Some Opponents claim:
1.
Bakman Water Company has substantially less financial
resources: According to this CPUC
2014 audit of financial year ending 2010 (The most recent financial report I could find). The company had 2500 customers
& less than 5 million in Assets, $1.7 m in revenue, ending in a total
operating loss for 2010 of $112k
2.
Bakman and his New Investment group may be
less stable, there is no track record showing this new proposed ownership structure
and their ability to effectively work together in the long-term.
3.
The Bakman Plan would leave us, under the same
structure as we are now, having 335 rate payers absorbing the capital
improvements versus 6335 rate payers under the Calwater plan.
4.
There is more capital, experts, redundancy, and
more stability with CalWater, and the proposed rate is fair; in addition
there is the low income assistance program.
5.
If they are growing that fast, there are
usually growing pains, with hiring many new employees, training them and
etc. Furthermore if they doubled in
size, they are still small, in comparison.
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