Judge OKs Big Basin Water receivership
After a brief period of argument and deliberation, a Santa Cruz County Superior Court judge moved forward Friday with appointing a receiver at Big Basin Water Co. that will assume operational possession and responsibility of the water system.
“I don't take this appointment lightly,” said Judge Timothy Volkmann to a courthouse crowd of roughly 30, many of whom were Big Basin customers. “There's ample evidence to appoint a receiver.”
State authorities began the process of pursuing a receivership in March as a means for getting the privately owned water provider back into compliance with state standards and formally filed a lawsuit in July.
“The Court finds that an order appointing a receiver is required, as the System is unable or unwilling to adequately serve its users and it is unresponsive to the rules or orders of the Division (of drinking water),” wrote Volkmann in a tentative ruling released earlier this week, but formally adopted by him on Friday.
Frequent water outages, communication issues and noncompliance with water board standards have plagued Big Basin customers for years. State officials reported during a town hall this summer that it's regulatory agency had sent 11 enforcement actions to Big Basin since 2019, several of which remained unaddressed, including a lack of water source capacity and a backup tank.
“The ruling offers hope,” Andy Immel, a Big Basin Water customer of 45 years, told the Sentinel. “Receivership is going to be an overtop manager … in place and making things happen. That has been missing all this time.”
Prior to the ruling, Big Basin owners Jim and Shirley Moore, arguing on their own behalf, questioned the necessity of appointing a receiver when they believe they already found another entity that can step in. The Moores said they have entered into a purchase agreement with Central States Water Resources, a private utility company based in Missouri which has also been temporarily managing operations at Big Basin Water since early August through local subcontractor Cypress Water Services.
Shirley Moore said Central States Water had already spent more than $60,000 on the system at Big Basin since assuming responsibility of it.
“Central States has the money and the know-how to do it,” Shirley Moore told Volkmann.
Tiffany Yee, representing the California State Water Resources Control Board Division of Drinking Water, the plaintiffs in the case, said that recent investment total from Central States Water was misleading. She said most of the money was spent hauling water to Big Basin's tanks after a major outage drained them and was not actually used to bring the system back into compliance.