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Owner of small private water system urges new statewide standards for rates, insurance and oversight
Summary
Mary Wood, a member of a privately owned, unincorporated water system, told the State Water Resources Control Board that informal contracts and long-standing rate clauses are leaving small-system customers with high assessments and little oversight, and asked the board to establish standardized governance, rate and complaint-resolution rules.
Mary Wood, who said she owns property served by a privately owned, unincorporated public water system, told the State Water Resources Control Board on Sept. 16 that she and other customers face persistent governance and affordability problems because contracts signed at purchase can bind buyers to uneven cost-sharing arrangements.
Wood said she purchased her property in February 2010 and that the system’s contract requires a 50/50 rate structure between her commercial property and seven residential properties. She said the system has levied special assessments six of the last eight years and that an arbitrator ruled the contract stands “in perpetuity” unless she can find a legal remedy.
Wood described situations where major infrastructure repairs — she cited a $28,000 tank replacement and pipe work — were split so that she paid $4,000 and several residential customers paid smaller amounts. She told the board that many small associations lack insurance and that system failures could be financially devastating.
Board member Laurel Firestone responded during public forum that recent state law directs the State Water Resources Control Board to establish technical, managerial and financial (TMF) regulations for small systems and that the board is working to develop standards that could help address gaps in oversight. Chair Joaquin Esquivel also thanked Wood for elevating the issue and said staff are focusing on ways to support small systems.
Wood asked the board to “close the gaps in public policy by establishing standardized guidelines, sustainable rate structures, quality standards, regulatory provisions and complaint resolution methods” so all Californians can access safe, affordable water.
Ending: Board members acknowledged the gaps and described ongoing staff work to implement TMF standards; no regulatory change or vote occurred at the meeting.
