LAKEPORT, Calif. – The Board of Supervisors agreed on Tuesday to allow staff to explore options for assisting the Lucerne community, which is facing a proposal for another large water rate hike.
One of those options to be explored with staff assistance is the cost to take over the water system serving Lucerne’s 1,200 households from California Water Service Co., which is proposing to raise rates 77 percent over three years, beginning in 2014.
However, a system takeover could be enormously expensive, and supervisors cautioned that it isn’t the likeliest option.
Supervisor Denise Rushing, whose Northshore district includes Lucerne, had asked the board to have the conversation about options.
“The situation out in Lucerne is dire,” with water bills virtually double other areas of the county, Rushing said.
Before asking county administrative staff to spend any time on research, Rushing wanted to have the board’s support.
Among the options she wanted to consider was the purchase or takeover, which some community members have supported but which Rushing also acknowledged would be both difficult and expensive. It likely would have to involve bonds, and would have to have as a goal lowering residents’ water bills.
Even so, she wanted to at least conduct cursory research of that path.
Board Chair Rob Brown said he saw a valid reason to look at that possibility, but cautioned that while for some there is an expectation that it might occur, it’s actually very unlikely. As a result, he wanted to set limits on how much staff time to devote to the research.
Rushing said taking over the system could cost twice the $16 million in property tax the county takes in annually. However, to even consider it, the county needs to know the costs.
Brown worried about potential staff time, adding that no one would disagree Lucerne has a problem.
County Administrative Officer Matt Perry said staff could report back to the board after some of the work has been done.
Brown said members of the public think the county can just take the system over.
Supervisor Jeff Smith said he hoped the public didn’t get the false expectation that the county ultimately will take over Lucerne’s water system.
In some cases Smith said the county hasn’t been good at keeping up some of its own water and sewer systems.
However, he acknowledged, “We need to look at it for sure.”
Lucerne resident John Parker welcomed the board’s consideration. “Perfect, this is the discussion we need.”
Another Lucerne resident, Craig Bach, told the board, “We’ve seen this movie before and it’s not going to get any better.”
He said his water used to cost $1.70 per cubic foot, with that same amount of water now costing well over $7.
Without the county’s help, he said Lucerne’s residents have no representation. “We are grateful for your consideration.”
Rushing said the board voted to represent Lucerne before the California Public Utilities Commission in the general rate case, and said the county will do its best.
Lenny Matthews thanked the board for the discussion. “We’re underwater, literally,” said Matthews, who explained her water bills have shown steady increases in usage she hasn’t had.
She said Lucerne needed to get rid of Cal Water.
The board agreed by consensus to move forward with studying a takeover. Brown added that the county will do everything in its power to help Lucerne.
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