Update: SLV water explores merger with Lompico

The San Lorenzo Valley Water District has formed an ad-hoc committee to look into working with or buying the smaller Lompico County Water District.
Lompico Water directors approached SLV to ask the larger district to look into possibilities.
“It would take action by Lompico’s board,” SLV general manager Jim Mueller said. “We’re not driving this.”
Mueller said the options have been discussed generally by his board and SLV district staffers have toured Lompico. The larger district is looking at the financial implications of merging or taking over operations in Lompico.
“Right now, we’re looking at all options,” Mueller said.
Those options include buying the 500-connection Lompico district or operating it on a contractual basis.
Lompico’s financial woes have been well-documented — the district raised rates last year to keep up with basic operating costs and employee expenses.
Lompico is working to pay its bills and is starting to build its reserves, board president Lois Henry said.
Correction
• A merger of the two districts would not technically involve a purchase. If both districts agreed to merge through a series of public meetings, the Lompico District would be dissolved by the Local Agency Formation Commission, and San Lorenzo Valley Water District would incorporate the Lompico system. Both agencies are publicly owned and operated — a different scenario from SLV Water’s purchase of the privately owned Felton system in 2008.
The Press-Banner regrets the error.