Thursday, October 20, 2016

10/20/16 Update

***Update 10/20/16


Hello!

Interesting meeting last Thursday, and congratulations to our 3 new board members, Eric, Chester, and Roseann!  

I have some additional information regarding the Water.  I spoke with Kassy today. She thinks if we did form a Mutual Water Company, we could be eligible for a low interest rate loan of under 2% from State Revolving Water Fund.  In addition, she seems to think we are at a low risk for future legislation affecting our water system; in regards to water balancing (Water Sustainability Act)
She says systems approximately under 1000 connections are in the "White Area", and not required to meet as stringent water balancing requirements.  However some of the main concerns for any permit approval issued to operate a "private" Mutual Water Company" would be that our source capacity meet guidelines, our operations management be in order, sustainability: rates reflect operations and infrastructure needs, plan to meet the meter mandates, and conservation plan.   

Brett responded today that he will get us outstanding debt amount of CSA19

___________________________________________________________________________
Below are some links from the state water board and info on mutual water companies.  



Here is the link to the information on the available funding.

It will take me a little more time to gather the Sustainable Groundwater Management Act information.  I will forward the information once I am able to determine answers to your questions.

Thanks,


Kassy D. Chauhan, P.E.
Senior Sanitary Engineer – Merced District

From: Ramsden, Bruce@Waterboards
Sent: Thursday, October 20, 2016 10:35 AM
To: instructordavid@gmail.com
Subject: SWRCB DDW Links

David, nice talking with you this morning, and I hope I have answered most of your questions. 

IN the meantime, here are the links to pages we discussed today.

Below, is what I consider our “home” page, and it provides links to various topics we discussed (California Waterworks Standards Regulations) and most likely a lot we did not.


Here is a link to the specific page you were asking me about regarding, “what should a water system prepare for in the future that may impact water quality, monitoring, treatment and NEW regulated contaminates that systems are required to monitor for.”  It is a page about upcoming regulations (from home page to the quick link for Regulations and Statutes, then the link at the bottom, “Upcoming Regulations for Drinking Water and Recycled Water.”






https://privatewaterlaw.com/2011/02/18/california-mutual-water-company-basics/
http://calmutuals.org/about-mutuals/
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=corp&group=14001-15000&file=14300-14307




Thursday, October 13, 2016

10/13/16 Update

10/13/16 Update

I received some information from Brett and the County Attorney.  It is possible for us to privatize the water system; and Brett believes they would transfer ownership to us for a the $1; after approval by the BOS.  One condition, is that any outstanding debt of CSA 19 would have to be paid off before the transfer.  The annual water revenues ($241,000 currently) would go to our new water district, and we would need to appoint a board to manage that.  There are many issues that need to be considered before we could even attempt to move forward on this, however at least we know there is an option.

Regarding the well negotiations Brett mentioned before.  It is a well Gunner has on 10 and Lanes bridge, its a municipal well, and has never been used.  It is still and few months away before we know if this can be a reality, and we still don't know what the cost would be for this well either.

Please keep in mind tonight's meeting is not primarily about water, its focus will be to figure out the direction and leadership of our citizens association.  Therefore if you want to be involved with board membership, let that be known.

PS
If I am nominated, I will have to respectfully decline under the current structure of the organization.  I would be happy to serve on a water committee and continue helping out to the best of my abilities.

If we were to hold a vote tonight authorizing the use of the Association funds to create a corporation / non profit, and purchase directors and officers insurance (Approx $1500 to form and $650 for annual insurance); I would accept.







Monday, October 10, 2016

Update 10/10/16

Update 10/10/16

I contacted Mr Frazier today, he stated he hasn't heard back from the county attorney yet; regarding the steps to privatization.  He expects to have some information by this Thursday.

Attached are the Rolling Hills Citizens Association's by-laws.  (Click Here)  The articles and amendments appear to look official.  This is a similar type of document one would submit to the SOS to become a registered non-profit.  The association's bylaws makes RHCA appear official; whether actually registered with the State or not.  If it has not been reviewed by an attorney specializing in this area, we should get that done; in addition to legal advice on forming a registered non-profit.

It is my opinion, if we wish to carry on this look-a-like association, we should make it legal.  We should provide Directors & Officers insurance for our board member's "Peace of Mind"; only costs about $600 per year (checking on this).  If we are going act like a board, we should be a real board, and obtain the proper insurance policies to protect it.   Here is a link to an insurance company who specializes in Directors and Officers insurance.   One of the few companies provide coverage for voluntary associations.  The policy is estimated to by around $600 year, however we would have to be at least in the application process of a 501c3 non profit.

In addition, we have the issue of annual dues being only $10 a year.  This is far too low, its just unrealistic.   I propose the dues should be at least $10 month, or $100 if paid early lump sum.  This would actually start to build a fund, in which the board could actually make some improvements to the neighborhood; keep the medians clean, pay for insurances, flyers, websites, initial law consultants etc.  What good is it to have an association with no budget?  The funds and its usage would be posted on the RHCA website and its use would be transparent.

Lastly, thank you to those who have contributed.  Your comments are being read!  In this past week there have been over 1536 page views on the blog.


Wednesday, October 5, 2016

UPDATE... Conversation with Mr. Frazier


*******UPDATE: 10/5/16********

I spoke with Brett Frazier this morning, and apparently between the calls Dale made and after meeting with Mr Frazier, the county is re-thinking the pipe replacement.  Mr Frazier met with Ahmad and Phil T. to re-examine the $5.1 million project.  If after testing, the pipes show to be in compliant condition, they will consider deferring the infrastructure improvement project, until much further down the road.  However, in the rate study (underway) they will budget for a reserve account; for capital improvement projects that we will eventually need someday.  In addition, they are considering installing the wireless meters in the back of the property; and its looking like a real possibility.  This is good news.  

Brett still plans to get us the information from the attorney on the privatization process; as he has confirmed if we do choose that route, they are fine with it.  At least, we can acquire all of this information and examine our options; even if we decide to remain with the county running our water district.

In addition, Brett is in negotiations attempting to work a contract for us to use or purchase a Municipal well already developed close to our community.  If successful, this would get us off water restrictions the quickest and give us the capacity we need at the lowest cost.  It may be a couple months before he knows if this can be a reality.

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Sunday, October 2, 2016

Research On Water Possibilities

Hello Rolling Hills Residents, 

These are my personal opinions after doing the research; I hope this will help inform some of you who have no clue about what the heck is going on. 

After researching and speaking to water professionals since our town hall meeting two weeks ago, I have prepared summary of that research, and included my personal opinions. This summary includes an investigation into solving the Rolling Hills water capacity issues, and initial research into the possibility of privatizing the Rolling Hills Water System.

Basically, to meet the capacity requirements the state requires, we need a third well.  At first glance, it may seem unnecessary for our community to spend on the cost of a new well; considering our current production does meet the demand needed.  However, the state’s requirement of meeting the highest month’s demand, even with the top producing well off-line, is a valid attempt in preventing situations, such as the one Rolling Hill’s Residents found themselves in this past spring. 

The way I see it, Rolling Hill’s residents have two choices.  We can either continue to take the easy way out; and rely on the county to manage our water and roads.  However, with that decision, we can expect more of the same issues returning for many years to come.  I say this because residents will not vote for the county’s rate increases; due to the county’s over inflated projected costs for each project we need, or might need.  Therefore the county will manage our system so that we do get the minimum needed to survive; any upgrades or improvements above the basics will be at a premium cost.  To repeat, this cost will be far more than what most resident will agree to pay, and therefore the county will be stuck with the bill; which in-turn means that we will get the minimum.  I expect this is the path most residents will choose; either due to inaction or fear of losing the county safety net.

The alternative is that we can band together and privatize, possibly vote to become a real association, and pay for our own improvements at a fraction of the cost; which we eventually pay for anyway. For example, would you rather pay $800,000 for a new well & land, or remain on water restrictions and pay $2,000,000 or more for the county to do it?  Would you rather pay $335,000 for new meters, or $5,100,000 for pipes and meters?  Whatever the county can do, we can do it cheaper and more efficiently.

The numbers:  We can either pay $5,700  ($27 month) per house privately, or $21,417 per house ($102 month) with the county.  This would get us a new well, rehab well 2, meters, and create a $700,000 reserve.  With the county, the $21,417 would get a new well, rehab well 2, meters, and new mains.  In addition, those who have mains in the back, will have to pay separately to connect to the new main.  (See Attached Exhibit)  A side note: (for an additional $25 month we could get all the roads in Rolling Hills Re-paved)   We are one of the very few communities who do not pay a road assessment. The roads in Rolling Hills will remain in disrepair and will never get done without one.  Would you rather pay $50 month for water and new roads or $102 per month for the county’s water plan?  When you see the Rolling Hills Rate study, which will not pass the 218, I predict the projected monthly rate will be $150 month plus $1.80 per 1000 gallons/ mo (prepare for a projected water bill of $200 to $250 per month) (See MD95 Rate Study Info Below) (Attached) (Of course the monthly payments subject to ability to obtain financing)

Yes these are hard choices; the type of choices where most people, just do nothing.  It is easier to do nothing, and blame the county then to have the courage to take responsibility for ourselves.  When the developer of the community created Rolling Hills; he relied on the residents, not the county to take care of themselves.  Thus reflected in the price of the original lots.   Yes leaving the county takes away an expensive security blanket.  However if one does not have the courage to try something new voluntarily.  We will always be on the reactive, and paying dearly for it, and when it evolves at emergency prices.  So ask yourself, if you were convinced by experts with decades of experience, at a town hall meeting, they could do the job for our community better and cheaper, would you choose to leave the county?  Or, would you choose to do nothing, receive the minimum in services, and wind up paying more for it when it becomes and emergency?

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Now to the details of my research:    http://www.bakmanwater.com/water-meters

Over the past 2 weeks, I have met with Tim Bakman, Brett Frazier, Don Smith, Rod Bradley, Ferguson.  After meeting with Tim Bakman from Bakman water company. I learned they are the same company who is managing Root Creek Water (Riverstone).  They have been in business since 1940, and currently still own and manage their own system, which spans from Willow to Fowler and Olive to Kings Canyon.  They currently charge under $60 per month/ per connection for water services.  On meters they charge per 100 CF is $.97 roughly per 1000 gallons (less than City of Fresno) (Example of our water usage average high month 14,000,000 gallons divided equally would be $41 each plus any fixed costs).  Tim also feels that he could manage our water system for far less that the county, and his company could install the meters for less than $1000 each.  If his company is out here managing Riverstone, why not pay him to manage ours?  Why would we pay Riverstone to connect to their groundwater system, when Bakman could be doing the same thing for us?

Bakman’s company has 11 wells, in their own system, they perform all of the state required testing, since 1940.  They handle day to day management, and billing.  I spoke with Rod Bradley from Bradley and Sons Well Drilling, I was very impressed with their knowledge.  They both pointed to an Engineer named Ken Shmidt the guru of most wells in the Valley, who is involved with the majority of wells developed in this area.  There is also a general contractor by the name of Don Smith who manages projects such as a new well.  Roughly the cost of a new well is $500,000 to $700,0000  Rod said when we find a location, he drills a test hole, takes samples every 10 feet, sends them to Ken.  Ken (engineer) analyzes the soil and makes engineering instructions on the materials needed to best protect the well from sand and such; he designs the well to be constructed as needed in his plans.  We could have these experts come and speak to us at a town hall meeting.

I met with Supervisor Brett Frazier on Thursday 9/29 to inquire about the real possibility of privatizing our water system.  He agrees it is a real possibility. The county wouldn’t mind getting out of managing, because of the difficulties surrounding the 218 election process.  He shared with me the rate study for Water District 95 MD95; (our rate study is underway), their current rate is $83 per month non-metered, their projected rate is $141/mo plus $1.63 per approx. every 1000 gallons; with yearly increases until 2020 when it gets to $159 mo plus $2.12 per approx. every 1000 gallons; that’s about $250 month for water, on averaged use.  So it probably will not pass 218, but what does that mean?  Will the state eventually start mandating improvements?  Eventually some emergency will happen, and a vote will have to pass to get it done; until then minimum services…  

Will you rely on the county, sell out, or pave your own path?

David Frisby

PS Im waiting for Mr Frazier to get back to me on the steps we would need to take to privatize, as well as processes of financing, and legal entity information.  I will post again, when I have more details.  As for now, it would be good to know how many residents would consider privatizing, if the experts were to present a solid plan for us at a town hall meeting.  I understand we would need to analyze all aspects of this decision, before we could pull the trigger.



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