Without Dana Reserve, Nipomo’s water bills will balloon. LAFCO should OK annexation | Opinion
I’ve had the pleasure of living in Nipomo for the past 13 years. I’ve been deeply involved, serving as the President of the Olde Towne Nipomo Association, the President of the Nipomo Chamber of Commerce, Commander of VFW Post 10978 and the President of the Nipomo Community Services District (NCSD) Board of Directors. Through these roles, I’ve had the opportunity to participate in the many seasons of change that our town has gone through.
In August, the NCSD Board of Directors voted unanimously to apply to the Local Agency Formation Commission (LAFCO) to annex the Dana Reserve property. I believe this was the right decision, and I’d like to explain why it’s not only beneficial for the district, but also for all of us who are current NCSD ratepayers.
The biggest financial issue facing NCSD ratepayers is the increase in water bills that will occur in the coming years. This is due to a legally binding commitment the district made to bring in more imported water from Santa Maria. While this agreement helps secure a second water source and adds another layer of protection for our groundwater basin, the downside is that the additional water comes at a significant cost. Without more customers to share that burden, the financial responsibility for this excess water supply will fall squarely on the shoulders of current ratepayers.
Annexation of the Dana Reserve offers a solution. Bringing in new customers who will rely solely on imported water will spread the costs associated with this increased water supply. These new customers are crucial to helping offset the future costs that would otherwise be borne by all of us who already live here. Quite frankly, we need them.
Beyond the benefit of new customers, the project will also bring a much-needed infusion of funds for the district, which can be used to address key infrastructure projects. Every service district has improvement projects in the pipeline, and NCSD is no different. For example, the Branch Street waterline replacement is estimated at $650,000; the Eureka Well replacement is a $1 million project; the Nipomo Supplemental Water Project will require $1.45 million; and the Woodgreen Lift Station comes with a $600,000 price tag. These projects would be funded by current ratepayers without new revenue streams. However, the Dana Reserve project will contribute approximately $23 million to pay for a variety of replacements and upgrades, including adding redundancy and increasing fire flow for all customers.
It’s no secret that there has been opposition to this project, some of which I believe is fueled by misinformation. However, the facts speak for themselves. This annexation not only provides a solution to the financial challenges looming on the horizon, it also ensures there will be enough water to support future development. Independent reports confirm that even with the full build-out of the Dana Reserve and all other zoned lots within the district, there will be a surplus of over 400 acre-feet of water (that’s more than 130 million gallons).
Moreover, the financial benefits to the district are clear. The Tuckfield & Associates study, for instance, projects that current ratepayers will see sewer bills decrease by about 30% once the project is fully built out.
In conclusion, I believe the NCSD Board made the right decision in voting unanimously to pursue this annexation. The district has the water and the ability to service this area, it’s within NCSD’s sphere of influence, and it represents a financially sound deal for all of us. As the project moves forward to LAFCO, I hope for a similarly unanimous decision so we can get this project underway as soon as possible.
Richard Malvarose lives in Nipomo. He is a former director of the Niipomo Community Services District.