Guest Column: Lompico, SLV water merger is in residents’ best interests

The troubled Lompico Water District, plagued by failing wells and finances, is one step closer to a merger with San Lorenzo Valley District.
The large step was taken when the Board of Supervisors last week voted unanimously to form a Community Facilities District and call a bond election to finance $2.75 million in bonds to repair and upgrade the deteriorated Lompico water system infrastructure.
The next step and most important step will be for Lompico voters to approve the deal. That decision will be made through an all-mail ballot.
The mail ballots will be sent out in January and they would be due approximately 30 days later in February.
It will take a two-thirds affirmative vote of those voting to pass the bond. If the bond passes and the other conditions are met, then the merger will take place. If the bond fails, the whole proposal is dead.
The small, 500-customer district has struggled for years with declining wells, inconsistent creek levels, mismanagement and water quality problems. The cost of operating a small water district has also been steadily rising.
Since January, when Lompico was deemed by the state public health department as being in danger of running out of water within four months, an emergency pipeline, paid for by state funds, was constructed for minimum fire safety and health requirements.
When Lompico’s strongest well temporarily failed in July, the district bought water from San Lorenzo Valley via the pipeline, averting a crisis.
However, the emergency pipeline does not solve Lompico’s long-term water supply and financial problems.
The district does not have financial reserves for unplanned repairs and capital improvements. The system has not been maintained as it should, and the community is looking at major expenses ahead in replacements and repairs, such as replacement of water storage tanks.
I join with the many customers who understand that the most economical and practical answer for a long-term solution is to consolidate with neighboring San Lorenzo Valley Water District.
When I was elected two years ago, helping Lompico Water District was at the top of my agenda.
At my request, the County committed resources and expertise to explore the options to bring stability to the water company.
This working group consisted of representatives of the San Lorenzo Valley and Lompico water districts, the County Administrative Officer, LAFCO executive director, County Water Resources staff, my staff and others.
The proposal they crafted would dissolve Lompico water and annex it to San Lorenzo Valley Water District, with certain conditions.
Those conditions are important. Representatives from both Lompico and San Lorenzo Valley water districts agreed that Lompico’s facilities would need to be upgraded, paid for by Lompico customers.
Formation of the Community Facilities District allows $2.75 million of bonds to be sold to pay for the improvements, which include replacing six redwood storage tanks, installing a treatment system at Mill Creek, replacing about 333 existing service lines, and completing the interconnection between Lompico and San Lorenzo Valley systems.
Another condition of the merger is that, upon distribution of the bond proceeds, San Lorenzo Valley Water District establishes a citizens’ bond oversight committee consisting of five Lompico water customers to review expenditure of the bond proceeds on projects that directly benefit Lompico.
Lompico residents have already indicated that they favor the merge with the election of two pro-merger candidates to the Lompico Water District board.
The picture of what could happen if the merger doesn’t take place, and Lompico remains as an independent water district, is not pretty.
The district would need to rebuild the infrastructure, hire a general manager, and establish a reserve fund for emergencies.
The current water rates, already among the highest in the county, would have to be increased by more than 60 percent.
Without such a rate increase, it is likely that the water company would either go into bankruptcy or court receivership.
Both would involve significant additional legal and administrative costs, with Lompico customers eventually paying for infrastructure improvements.
I trust that Lompico voters will vote in their best interest and approve the merger.
– Supervisor Bruce McPherson represents the 5^th District, which includes the San Lorenzo Valley and most of Scotts Valley, on the Santa Cruz County Board of Supervisors.