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Board authorizes $1.4 million county loan to keep Castlewood water service running after residents raise safety and transparency concerns
Summary
After public commenters described leaks, a power outage and what they called poor fiscal transparency, the Alameda County Board of Supervisors approved a $1,400,000 revolving fund loan to the Castlewood County Service Area so vendors can be paid while the Prop. 218 protest process proceeds.
The Alameda County Board of Supervisors voted Oct. 8 to establish a $1.4 million revolving fund to temporarily finance water and sewer services for the Castlewood County Service Area, responding to residents who said service failures and opaque finances put public health at risk.
Residents and community leaders urged the board to delay or reject the loan, arguing the Public Works Agency had not followed required procedures. "We reject, we object to this matter," said Alicia Guerra, representing the Castlewood Property Owners Association, citing a letter filed Oct. 4 and saying the county had not completed the Prop. 218 process required for service‑charge increases. Several speakers described multiple system failures and a recent power outage that left some households without water for hours.
Public Works Director Daniel Aldesenba told the board the action before them would establish the county mechanism under Government Code section 25214.5 and fund a revolving loan so critical water services could continue while the formal Prop. 218 process — including community meetings and a protest vote — proceeds. Aldesenba said staff will provide outreach to Castlewood residents, share amortization options (lump sum or multi‑year plans) and follow the Prop. 218 schedule for protest hearings. He also described recent vendor changes and documented emergency repairs, saying the county has already spent substantial sums on unplanned fixes and cannot allow vendor payments to lapse: "We can't shut off water because we can't pay the vendor," he said.
Residents pushed back on operational and fiscal management. "We have out‑of‑trend spending growth without invoices to justify that spending growth between 2021 and 2024," said Doug Ricketts after reviewing financial records. Richard Hamill, who said he is Castlewood POA president, described the June power outage and said a new contractor (named in testimony) had not been effectively communicating with residents.
County Counsel emphasized that the loan is a temporary financing mechanism, not a rate adoption: repayment still must be decided through the Prop. 218 service‑charge process and the charges would be subject to the statutory protest procedures. Aldesenba said the law permits up to 10 years for repayment schedules and stressed that staff will hold community meetings and mail information to every Castlewood resident ahead of the Prop. 218 hearing.
The item was included in the board’s consent motion and carried on the roll call. The board ordered staff to proceed with outreach and to return with details during the Prop. 218 process; public meetings were anticipated to occur within a few months.
What happens next: County staff will set community meetings, mail information to property owners about the shortfall and proposed repayment options, and bring the Prop. 218 protest hearing and any proposed assessment schedule to the board. The authorized revolving fund will allow the county to keep paying vendors while those steps proceed.
