San Lorenzo Valley Water District to support a merger with the Lompico County Water District

At their August 20, Board Meeting, San Lorenzo Valley Water District presented Resolution 8 (15-16) to support a merger with Lompico County Water District. The terms of the resolution specify how the “capital financial considerations are (to be) enforced.”
The language of the resolution defined the process of replacing certain terms in the original merger approved by the Local Agency Formation Committee in 2014, and what outcomes were being negotiated in the current process. 
Randall Brown, SLVWD Director, said that in a discussion with Pat Mc Cormick of LAFCO about the 10-year capital replacement process, that the District was reassured that staff could prioritize the capital projects if they decided to support the resolution.  
SLVWD further specified in their resolution that after the Assessment District is formed, no changes to “costs can be made by Lompico or the District.” 
Brian Lee, District Manager of SLVWD has recognized that “the formation of a ten-year Assessment District by Lompico would constitute a similar financial instrument to original Community Facility District component of the merger approved by LAFCO in 2014.” He believes that the current schedule is less aggressive than the original five year plan and will be easier to execute within the 10-year program.  
SLVWD is also requiring that “all external administrative costs and loan costs be included in the Assessment District. Such costs would include the County costs required to collect and manage the Assessment District proceeds and that interest costs be no greater than the State Revolving Fund Interest Rates. 
Director Charles Baughman, SLVWD, said that “they came to understand that the resolution has come as close to being perfect as it could get and they were happy with it.” 
Former Director Jim Rapoza, Ben Lomond, said that he encouraged SLVWD to pass the resolution because “(a merger) would bring in 500 hook-ups and increase the rate base by $60,000 per year.” 
Lois Henry, LCWD Board President, described the work that she knew needed to be accomplished by Lompico. She thanked SLVWD for all the help given in the past. She said “you have come to our aid many times to answer questions and help our employees.” 
The resolution was passed with a unanimous vote by the SLVWD Board. It will probably just be a matter of time before the process of forming an Assessment District will conclude by a merger between Lompico and SLVWD.