KampaCS President Peter Kampa will be informing CSDA Conference attendees on October 11, 2016 on the does and don’ts of special district reorganization (such as consolidation) based on his experience in dealing with dozens acquisitions of small, failing water systems. If you are attending the conference and want to visit with Pete outside of his session and on any special district management matter, email him at pkampa@kampaCs.com or call/text at (209) 591-7100.
The California State Legislature has been pressuring special districts to consolidate for many years. With a general lack of understanding of the purpose and function of special districts, it is easy for the state to assume that consolidation of a small water district into a larger water system will result in decreased cost, efficiency, better management and safe drinking water for all. State legislation was passed in 2014 requiring districts receiving certain state grant assistance to consider consolidation with a larger system before receiving funds directly. The legislation allows the state to even force certain consolidations when a water system cannot meet its public water service mandate. Scary, but true.
So what lucky district will receive these defunct water systems? What if their water rates are too low and that is the problem? What if connection to your system will drive the small system’s rates over $100 per month in this poor community? Does the large system subsidize the smaller system? Are they required to? All good questions to be answered by Mr. Kampa next week!! See you there