DATE: October 15, 2012
TO: CSA 79 Advisory Committee
FROM: Ken Ayers, Board President
Ryan Gross, General Manager
SUBJECT: RUNNING SPRINGS WATER DISTRICT INFORMATION FOR
CSA 79 REGULAR ADVISORY COMMITTEE MEETING
The following information has been compiled and considered by the
Running Springs Water District (District or RSWD) Board of Directors
and staff regarding the potential annexation of the Green Valley Lake
(GVL) CSA 79 sewer service area and San Bernardino County Green Valley
Lake fire service area into the RSWD service area and consolidation of
those services. This information is being provided to the CSA 79
Advisory Committee for their information.
CSA 79 SANITATION SYSTEM FACTS AND STATISTICS
1. 35 miles of sewer pipeline (40 year old truss pipe)
2. 4 sewer lift stations
3. 491 sewer manholes
4. 134 sewer clean outs
5. Current monthly sanitation user fee is $63.24 per equivalent
dwelling unit (EDU)
6. Current EDUs = 1,252
7. FY 2012/2013 CSA 79 revenue projected to be $952K
8. Currently $1.38 million in CSA 79 operating, CIP, replacement
and expansion reserves
9. Current projects include: $60,000 slip lining (1/2 mile), 50
manholes to be lined, Awanee Lift Station Improvements and pump
10. CSA 79 staff provided RSWD with an Operational Activity Report
for July 2012 at its August 29, 2012 Advisory Committee meeting.
11. Special District representatives have stated that there have
been no fines assessed against CSA 79 in the last 10 years and that
there have been very few sanitary sewer overflows (SSOs).
CURRENT STATUS OF RSWD STAFF REVIEW OF CSA 79 SEWER SYSTEM
As of August 2012 approximately 2 miles or 6% of the CSA 79 sewer
pipeline inspection video had been reviewed in 8 of the 14 systems by
RSWD staff. Of the 8 systems reviewed, 60 sections of pipe ranging
from 6 to 10 inches in diameter were reviewed from video taken between
2009 thru late 2011. Only 2 of the 60 sections reviewed appeared to
not be in need of repairs or replacement to reduce infiltration and
Based on this preliminary review it is the District staff’s opinion
that the system may require significant repair and/or replacement to
get closer to RSWD standards and reduce I&I to an acceptable level.
However, without a current comprehensive video inspection and cleaning
it would be difficult to accurately estimate the cost of the necessary
improvements to bring the system closer to RSWD standards but based on
the information available it would likely be more than 5 years and
greater than $10 million. This would likely require the formation of
an assessment district and issuance of improvement bonds to the
residents of the Green Valley Lake and Snow Valley service areas.
RSWD staff has prepared a flow comparison from April and October of
2010 to illustrate the wet weather flows received from CSA 79
indicating excessive I&I.
Video inspection records that District staff has reviewed identify
114 potential problem areas in only 6% of the system that may or may
not have been addressed since the video inspection was done. To date
no maintenance or repair records have been acquired in order to
determine if any of these areas have been addressed.
RSWD STAFF AND COMMITTEE MEMBER COMMENTS, CONCERNS AND OUTSTANDING
. Consolidation of the three districts would reduce duplication of
such as audit reports, legal, mandated studies, management, etc.
. The GVL sewer system was in need of repair and upgrades but those
could be accomplished with the existing sewer rate in GVL due to the
. The County Supervisor would support whatever the communities
. The costs associated with developing the new consolidated
district would be reimbursed by the GVL service fees.
. Since RSWD provides first responder fire and paramedic service to
the entire area, consolidation would incorporate the fees and taxes
for the area currently served.
. Consolidation would rectify RSWD being a "donor service" for
Green Valley Lake and Snow Valley.
. Arrowbear decided to withdraw from the consolidation process.
. In GVL, the portion of the pipes that the staff have been able to
evaluate appear to
be in much worse condition than was anticipated.
. The possible cost of upgrading the GVL system could reach $15
. The current County Supervisor has not been willing to either
support or oppose the consolidation and continues to request
. The costs to prepare budgets, evaluate the GVL system and attend
meetings is being borne by the RSWD.
. Since the initial evaluation of the GVL system revealed that it
is probably in need of extensive and expensive repairs, it no longer
seems reasonable to continue the consolidation effort unless a
thorough video of the system is completed along with an engineer’s
report of the necessary upgrades the system would need, including cost
. There is no funding source for any additional studies.
Other Major Issues of Concern
1. Cost incurred by RSWD for the last 2 years to study the
consolidation project is approximately $15,000 as of August 2012.
Additional cost if this process moves forward would be approximately
$7,000 to $10,000 for LAFCO application process plus an additional
$10,000 to $15,000 for additional studies such as a formal Plan for
Service and Feasibility Study.
2. County Fire Chief believes LAFCO study does not address
consolidating fire services therefore he will apparently oppose
expanding RSFD service area to include the Green Valley Lake area.
3. Estimated cost to provide repairs to significantly reduce I&I
into the collection system could exceed $10 million and require 5
years plus (refer to current status above).
4. Current monthly sanitation user fee is $63.24 per dwelling unit.
To adequately address I&I these costs will likely escalate possibly
beyond affordable but to adequately address this issue a more
comprehensive and current video inspection would need to be performed.
5. See CSA 79 Sanitation System Facts and Statistics above.
6. RSWD financial consultant projection of net revenues for the
first year of consolidation is $11,000 for sanitation and $130,000 for
fire for a total of $141,000.
7. CSA 79 provides service to 1,252 EDUs. Delinquent accounts and
vacant property would need to be considered.
8. According to audit report, CSA 79 does not pursue uncollectable
fees and instead uses the property tax roll as the method to collect
fees for services. The percent of customer accounts that are
delinquent would need to be determined.
9. Current RSWD contract with CSA 79 will expire on May 9, 2017.
The terms of this contract will need to be re-negotiated to address
current conditions and regulatory environment.
10. What costs would CSA 79 customers support for their sanitation
system improvements? Would RSWD be the target of constant anger
associated with system upgrades and maintenance?
11. CSA 79 has not provided any significant repair records so their
systems integrity will always be the subject of major concern.
12. If consolidation does not occur with the added CSA 79 fire tax
RSFD will be at risk in the future since County Fire already provides
service to the mountain area. The question is the consolidation with
CSA 79 collection system worth the funds the consolidation of the fire
services would receive? $680,000 for equipment replacement would
require 5 years using the projected revenues of $130,000 from the fire
13. The five year plan formulated to address consolidation and the
estimated monthly service charge of $63.24 and reduce to RSWD current
monthly service fee was figured prior to documentation of the
collection system provided by County Special Districts and evaluated
by RSWD staff.
14. County Supervisor has been reluctant to take a position on the
consolidation and continues to ask for additional meetings and studies
which are driving up the cost to RSWD.
15. CSA 79 system would require a complete video inspection to
identify all maintenance issues which is estimated to cost $400,000.
16. If CSA 79 system is in fact discovered to be in need of
significant repair/replacement it would require a large sum to finance
the work whose responsibility would it be to sell the bonds and the
responsibility associated with the bonds throughout their life? (i.e.
failure to pay/default).
17. Regulatory reporting documentation such as the CSA 79 Sewer
Management Plan (SSMP), maintenance records or any spill reporting
have not been able to be reviewed by RSWD staff. There is a concern
with staff that this may be an extra burden that is unable to be
defined at this time.
18. There have been improvements/benefits since the consolidation
talks have begun that directly affect the GVL residents which are:
a. CSA 79 Advisory Committee has been revived and the appointment
of Lewis Murray as the commission secretary will give the community a
direct contact with their supervisor’s office, hopefully addressing
the communities concerns in a timelier manner.
b. The County Fire Chief has promised to improve the services they
provide to the GVL community.
c. The problems identified with the sewer collection system have
come to the surface and the community is now becoming aware of the
Expansion of the RSFD fire service area to include Green Valley
Lake is the most beneficial to both districts and appears feasible at
this time. Annexation of CSA 79 Sanitation service area into RSWD
service area could be considered in the future if and when the system
is improved to the point of financial viability for both districts.
Proposed consolidation of CSA 79 (Green Valley Lake) and Running
Springs Water District for Sewer and Fire Services to be phased in
over a tentative five year period.
After the initial five year period has elapsed, or when the Board
has determined that Green Valley Lake's Sewer infrastructure and
equipment are adequate, we anticipate sewer fees will
change to the rate charged to Running Springs residents at that time