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City updates council on Golden State rate case, possible JPA and lawsuits with Highlands Water
Summary
City Manager Flora briefed the council on the Golden State rate‑making case that could freeze Clear Lake customer rates if approved, described exploration of a joint powers authority to access state funding, and reported on ongoing litigation seeking shareholder records from Highlands Water Company.
City Manager Flora updated the Clear Lake City Council Aug. 1 on several water issues under active consideration: a Golden State rate case, outreach on consolidation through a joint powers authority (JPA), and pending litigation with Highlands Water Company.
Flora said Golden State proposed combining the Clear Lake service area with a larger Arden‑Cordova service area for rate‑making. "If this whole case is approved this way, it would freeze the customer's rates in Clear Lake for the next 3 years," Flora said, while noting the proposal shifts capital‑expenditure cost burdens to a larger customer base and that the city will request the utility's master‑plan documentation for review.
Flora also described exploratory talks with nearby districts and repeated an invitation for Sean White, Ukiah's director of water and sewer, to speak to council about a successful JPA model that opened access to state grant programs such as the SAFER fund. The city has approached Kanaka County Water District and others to discuss potential consolidation or a JPA that could improve access to funding for infrastructure improvements.
On litigation, Flora reported the city has filed suit against Highlands Water Company seeking shareholder lists and to contest the validity of a board election; a hearing on those matters was scheduled for Aug. 13. Brian Hughes, counsel for Highlands, submitted a Zoom comment asking the city to stop characterizing Highlands or its staff as "potentially incompetent," quoting a city manager email as "at best misleading and at worst deceptive."
Members of the public urged the city to focus on raw water quality and lake remediation; Frank Costner asked the council to prioritize stormwater and erosion control and noted Kanaka County Water District recently secured roughly $17 million in grant funding. Council directed staff to return with comparative Golden State rate data and continue outreach on consolidation options.
