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Board OKs franchise agreement as California American Water takes over San Martin utility
Summary
The Board of Supervisors on April 8 approved an ordinance granting a franchise to California American Water to serve the unincorporated San Martin area after the company acquired San Martin Water Works and won state approval of that sale.
The Board of Supervisors voted unanimously April 8 to grant a franchise to California American Water Company so the private utility can provide water service in the unincorporated San Martin area.
The move follows California American’s February purchase of San Martin Water Works, a long-established local supplier, and a review and approval of that sale by the California Public Utilities Commission, Brian Darrow of the county executive’s office told the board during a public hearing.
Darrow said the franchise before the board would “replace the franchise that we previously had with San Martin Water Works” and that county staff and counsel had worked with the company on a draft ordinance. Vice President John Arenas said county and neighborhood leaders have worked with the company and that residents still had some questions that would be handled offline.
During the public hearing the San Martin Neighborhood Association asked that the company and the county confirm there are no plans for an unexpected expansion, and that residents be engaged about water infrastructure and service models. Sharon Luna, representing the neighborhood association, said residents want to know whether properties will remain on well or septic systems and asked to be included in planning for the downtown village core.
After the public comment period Supervisor Susan Ellenberg moved to approve the ordinance; the motion was seconded and passed on a 5-0 roll call. The board’s action grants the county-level franchise required for California American Water to operate in the unincorporated San Martin service area; staff said the franchise formalizes the change in operator following the CPUC review.
What the board did not decide was any change in rates or CPUC-regulated tariff items; those remain within the CPUC’s jurisdiction. The board’s action is procedural: to grant a county franchise that allows the company to operate in the public right-of-way and serve customers in the unincorporated area.
The board approved the ordinance by roll call vote: Supervisors Abe Koga, Otto Lee, Susan Ellenberg, Vice President Arenas and President Mike Lee all voting in favor.
