Consolidation Update:
Progress with Bracken Brae and Forest Springs
February 17, 2022
Mark Dolson
Highlights:
Progress toward consolidating Bracken Brae and Forest Springs.
Full Report:
Three small, independent water companies just north of Boulder Creek off of Highway 236 have successfully operated entirely on their own for many decades: Bracken Brae (24 connections) and Forest Springs (128 connections) are non-profit mutual water companies essentially adjacent to the San Lorenzo Valley Water District (SVLWD), and Big Basin Water Company is a somewhat larger for-profit company with roughly 500 connections further up the road. In contrast, SLVWD services roughly 8000 connections.
The State of California promotes the consolidation of smaller companies into larger districts, but these three companies were not motivated to pursue this until they sustained massive damage to their facilities in the CZU Fire. Consolidation discussions ramped up last Fall, and it now seems likely that the water delivery responsibilities for each of these three companies will eventually be assumed by SLVWD. However, the road ahead is still fairly long and potentially bumpy, and each company presents a separate set of issues.
Bracken Brae is currently furthest along the road to consolidation. The company operates with no paid staff as part of a Homeowners Association (HOA) with 25 members who constitute a remarkably resourceful and resilient community. Until August 2020, their water came mostly from surface flows, with a well for use in times of high turbidity. This all changed in a single day when the CZU Fire destroyed a 25,000-gallon redwood tank, three new 5000-gallon polyethylene tanks, a treatment plant, and all of their files. Melted PVC pipes introduced Volatile Organic Compounds (VOCs) into the main lines, and seven homes were lost.
The community mobilized and connected with Big Basin to restore the flow of water by December 2020. In parallel, they wisely applied for FEMA funding in October 2020 and were ultimately found to be eligible. In contrast, Forest Springs was deterred by initial claims that neither they nor Bracken Brae would be eligible, and is now trying to persuade FEMA to accept a belated claim well past the original deadline. Big Basin, on the other hand, is a for-profit company and is categorically ineligible for FEMA funds.
FEMA’s policy is to cover 75% of the cost of rebuilding, including some degree of improvement to address updated code requirements and fire-hardening needs. (FEMA also partly covered $84,000 in initial emergency response.) However, because Bracken Brae submitted their claim as an Alternative Procedures Project, they will have the option of using their FEMA funds to implement a revised approach in which their water is pumped up to them from SLVWD and no longer taken directly from local streams. Bracken Brae is still awaiting formal approval of FEMA funding and final determination of how much money will be provided. Meanwhile, their members have unanimously voted in favor of exploring consolidation with SLVWD.
In parallel, SLVWD has already received a $3.2 million grant from the State of California to construct an intertie pipeline between the two systems. This same intertie will likely also need to provide water to Forest Springs and Big Basin, so it will be important to size everything accordingly. (There are no other candidates for future consolidation in this direction.) As soon as the SLVWD Board is satisfied that there is minimal financial risk to the District, they will move ahead on developing detailed plans. District Manager Rick Rogers is currently hoping that construction bids can be awarded in Fall 2022. (In contrast, an eventual consolidation with Big Basin will need to go through a formal Local Agency Formation Commission (LAFCO) process and will also need to rely upon the current Big Basin water source.)
Rogers feels strongly that the District needs to help SLV neighbors in need, and all three of these water systems clearly meet this description. At the same time, given SLVWD’s own financial challenges, this response cannot be allowed to create new financial burdens for the District’s current ratepayers. Happily, this is a good time to seek State financial support for initiatives like these, but clear written agreements to protect all parties will be essential, and it will take many months to sort this out.