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Lindsay council authorizes RFQ to explore sale of water and wastewater systems
Summary
The Lindsay City Council voted to release a request for qualifications to solicit proposals from operators or buyers for the city’s water and wastewater systems, an exploratory step intended to assess whether a sale could resolve infrastructure needs and provide one-time revenue; any sale would require a public vote and state oversight.
The Lindsay City Council voted to release a request for qualifications (RFQ) asking companies to show interest in buying and operating the city’s water and wastewater systems, the mayor and staff said during the April council meeting.
City Manager (presenting) said the RFQ is intended to test the market and determine whether private or investor-owned utilities could offer the capital and technical capacity to upgrade aging infrastructure and address growing regulatory demands. The manager stressed that the RFQ is an exploratory step and that "any sale would require a vote by Lindsay residents," noting that state oversight would apply if an investor-owned utility ultimately operated the systems.
The RFQ summary presented to council listed key priorities for any potential buyer: demonstrable experience operating water and wastewater systems, a commitment to drinking-water quality and regulatory compliance, capital investment timelines, community engagement plans, and measures to protect lower-income customers. Staff said they would seek proposals that cover outstanding water and sewer debt and provide ongoing revenue to the general fund rather than leaving new obligations behind.
Opponents at public comment warned about loss of local control and long-term risks. Ashley Parker, a resident, urged the council to "research the dangers and benefits" before moving forward and called the possible sale a decision with consequences for 50–60 years. Other commenters described selling the system as akin to "selling the family farm," cautioning that reversals are effectively impossible once a utility is privatized.
Staff and some council members said the RFQ process can be structured to require guarantees: use of existing rate plans during an initial period, creation of a rate-stabilization fund, employee-hiring commitments, and required local hearings under the California Public Utilities Commission process if an investor-owned utility were involved. City staff noted existing constraints—outstanding enterprise debt (roughly $5.1 million in water/sewer debt mentioned in the presentation), large capital needs such as rehabilitation of long-idle wells, and projected capital projects that grant funding alone cannot fully cover.
The council approved releasing the RFQ by motion; staff said responses would be due on a short timeline (roughly three weeks in the staff presentation), the submittals would be evaluated, site visits conducted, and a recommendation would be returned to council in June. Any subsequent proposal that would convey assets to an operator would be subject to further legal steps and ultimately to a citywide vote.
Next steps: the city will release the RFQ, accept and evaluate proposals, and return to the council with recommended candidates; the council and residents would decide later whether to proceed to a ballot measure.
Quote: "This is an exploratory step," the City Manager said. "If the voters decline it, the city continues on its present course; if they approve it, any buyer will be held to commitments about water quality, capital investment and community protections."
