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.



You can respond, by clicking the "Add a Comment" at the bottom of this page.

Residents are watching,  (click above picture) and just starting to chime in.  With over 391 page views in the last 2 days.  Please contribute your thoughts an feelings, even if you think, you don't understand, or happen to make mistakes on your spelling or grammar; it only important that you participate!


16 comments:

Anonymous said...

Thank you for all your hard work & information. My question is Dale Drozen was told by that state we can use the easement on our existing lots to place a meter, so called smart meters. Did in your research check that out, it would be cheaper for the residents. On the subject of roads, you may not know this fact, a portion of our property taxes is paid into road maintenance, we are perhaps the only subdivision that this applies to, to my knowledge. The county does not want that fact made public so they can gouge the residents. Years ago Rolling Hills & Lanes Bridge paid our own way for the streets, curbs & gutters. You either paid up front around $5K or it was placed on your tax bill as an assessment/bond. Unfortunately the rest of the residents at that time did not vote to have their streets redone. Of course the county, we had to do it to their specs & they made money you bet, just like they do now, fees & fees!
County has stated for years "they own our water system & community/firehouse building", I proved in October 1999, they do not contrary to Frazier's statement (last meeting) "Own our system & would sell it for $1.00"
I think that the survey they supposedly did on residents income was a intent to force the residents to agree to the counties garbage. The state agencies have communication between them, like Franchise Tax Board. I feel positive not that many residents, retired etc. make $100,000K a year, so therefore they made up figures, did not verify the incomes, so we would not qualify for the low cost bond/loan. If the county gets their way, the property values in Rolling Hills will tank & residents will lose their homes.
I attended the meeting in Rancho's last week & they are trying to do the same to that area & would hope you would share your findings with them. If we all stand together maybe it might be better for us all.
Yes, Ken Schmidt is the expert in water in our area, he told us all when the county made us drill the firehouse well, they were doing it incorrectly & it would fail in 12 years & it did.
I think the answer, which the county, will not like it, have our own water committee & yes, get this association LEGAL again, I remember it was legal when I was on the board, 40 years ago, someone dropped the ball, therefore did what the county wanted, no legal representation, a few so called board members doing exactly what the county wanted, without noticing/notifying the residents!
I understand one of the residents of Rolling Hills filed a complaint with the Grand Jury over the water, with more complaints to come on other related matters.
I do not have a email mailing list to forward my comments to the residents, if you have one, please feel free to share my comments.
Thanks again, I know we all appreciate your due diligence regarding our water in Rolling Hills.
Jan Dewoody

Anonymous said...

Thanks again, by the way the neighbor who filed the complaint thinks maybe a Million Gallon storage tank on Dawn well may help also.
I am not mechanically inclined, so I don't know, that was my husbands specialty, especially engines. Hopefully everyone will gather/listen & post their ideas & comments. I hope that will help the residents of Rolling Hills & Rancho's with a much better solution to our water problems & affordable for all the residents. It scares me to think some residents may lose their homes if Madera County forces their ideas & costs on us.
I pray that will not happen.
Please voice your opinions, ideas & questions, no matter if you think they are not worth mentioning.
Please attend the October 13th meeting at Children's & ask/remind those Rolling Hills residents to pass the word to those residents in the Rancho's, we are all in the same boat, don't let it sink with all of us on board!
Jan Dewoody

David Frisby said...

Regarding the easements, two water company's and meter installers inform me, there is no issue installing wireless meters at the back of the property. Which leaves the county's reason for replacing the mains: they are old. Dale was researching the tests available that show the condition of the pipes, he said some are designed to last 100 years.

Todd Braner said...

First of all i would like to thank you for doing the leg work and gathering this information!  I agree 100% that we should privatize our water system!  Im in full support and would gladly pay for this as well as maintaining our roads.  Joanne is stepping down and i would love to see you take over (if you have the time and energy) and further develop our area?  Our own HOA.  

David Frisby said...

It is scary, but fortunately we have the power to vote at the 218 election (double edge sword) and elect to not pass their proposed water plan. However its important to remember everyone must vote, because, as I understand it, those measures can be written on on the ballot, so that a non vote can be a yes vote. As I mentioned in the post, as of now we can block any proposed rate increase. However, plan to stay on water restrictions and pray that we dont have another breakdown, because the county will not continue to pick up the tab, if we do not pass any rate increases. As I mentioned, we will get the minimum needed, even if that means, potentially NO Outdoor Watering.

David Frisby said...

Thank you Todd, there are many other residents who are more active in the community than I, and we are lucky to have them. As witnessed at the last town hall meeting, Rolling Hills has a wealth of well spoken, intelligent professionals who could use their knowledge and experience to help our community. This is definitely a team undertaking and We need to organize and come together. Everybody has their strengths; some are great public speakers, some project managers, some laborers, some engineers, some document preparers, some cheerleaders. It takes a village all doing their part, at what they are best at. I hope the people who stood up at spoke at the meeting will get involved in the board. I think we should elect the water committee, as Dale recommended, at the meeting on the 13th. Or if not at that meeting, we can have a follow up meeting the a week after just for the people who are interested in serving on the water committee; then elect them at that meeting.

Steve Bricker said...

If we go private, I believe we will need to form a water district or at the least a formal HOA. All of this is not without cost which needs to be considered. If we could get the County to hand over the billing and maintenance to Bakman and work out some type of neighborhood over site committee that would be best. There is also the possibility of State funding or grants for public rather than private water systems.

David Frisby said...

Good point Steve, we do need to organize; which is not an easy task. The county's attorney is checking into the process needed; in case the residents choose that path. There are costs associated with privatization; however small in comparison to what we pay the county on prevailing wage. The government grants would be great, lets see if we qualify! However, we are already listed as non-disadvantaged on the states water study (check page 49 and 51, I believe) Just look for the 5.1 million project they have us slated for; with the residents repaying it on a 30 year loan. Here: http://www.waterboards.ca.gov/public_notices/comments/dwsrf_iup/draft_dwsrf_iup_report.pdf If you look at all the projects on the list, not created out of immediate need, but in preventative maintenance (in our case), Ours is the MOST EXPENSIVE project per resident.

A great idea having the county hand it off to Bakman while still being responsible for the district, However, I find it hard to believe the county would hand over billing and maintenance, while still ultimately being on the hook for the system.

All creative Ideas are welcome here! Please chime in weather you feel you are knowledgeable on the subject or not. This is a work in progress, we need to explore all options, create a water committee, and present all feasible options to the people.

Unknown said...

Thank you for this valuable information. I clearly see the benefits of taking responsibility for our own community water and street infrastructure. Why continue to rely on the county for more of what we have had. You can count me in favor of a new direction to gain control of our expenses while also improving the quality of our water system and roads.
I encourage everyone to let their voice be heard and speak up in order to inform those planning a mutually beneficial new course of action.

G Binkley said...

I am in favor of privatization of our water system, the less government involvement the better off we will be.
Gary Binkley

Earle Pearce said...

I am concerned about the term "Privatization". It could mean selling our water system to a private company - which I strongly appose; or hiring a private company to maintain our system, replacing the county function - which I approve.

Selling our system sells our water rights and we have no control over the future conditions or pricing. My sister-in-law's subdivision did that and now pay over $250 month. I researched her new owner and discovered they are part of 100's of sub-entities that are owned by a mega corporation with ties in several countries. That's not what I want to see here. Even if a proposed company currently is not affiliated, they can sell in the future.

Conversely, I briefly spoke with a contractor at a racus County Board Mtg that may be Tim Brakeman who told me he would be glad to work as a contractor for Rolling Hills without ownership. I was impressed with his current projects and thought he may be worth looking into.

Please always look into the future as water will always be a declining resource. Don't commit us to make up shortfalls in other areas.

Earle Pearce (39 years)

Unknown said...

We should be interviewing residents of the districts served by them? Maybe utilize the Nextdoor app to poll them? I'm always leery of companies that say they can reduce cost by that much, but know we can have it cheaper..

David Frisby said...

Excellent idea! I didn't know there was such an app. Since all this research including the board membership is strictly volunteer. Would you lead this part of the research project?

David Frisby said...

Excellent concern, I would not support selling our water system either. Once we have documented options; they will be submitted to the community for review and discussion.

anonymous said...

I missed the last town hall meeting so I am unsure about the discussion concerning water meters since state law does not mandate meters until 2025
Also is it possible to split our district between private and commercial use? The businesses along 41 are exempt from the water restrictions that apply to the residences. They use a lot of water everyday waking their used cars and boats and landscaping. We didn't agree to spend millions on our last water project so that the businesses could use all the water they want while our landscapes die

David Frisby said...

Regarding the meters, 2025 is the deadline. It may take that long to get the 218 election to pass :-) Great idea about private and commercial use; in addition with the meters commercial will pay for what they use; which will encourage conservation.