8. Assignment of Proceeding
Commissioner Geoffrey F. Brown is the Assigned Commissioner and Glen Walker is the assigned ALJ for this proceeding.
1. Ramona serves 125 connections in a service territory two miles east of Anza in Riverside County.
2. Ramona finds it difficult financially to maintain the system and provide service to its customers.
3. Great Western was formed in 2004 with the stated purpose of acquiring and managing community water systems.
4. Great Western seeks to acquire Ramona for a purchase price of $45,000.
5. Great Western has applied for a state revolving loan to rehabilitate the Ramona system.
6. Since only a transfer of ownership is proposed, it can be seen with certainty that the sale and transfer of this system will have no significant effect on the environment.
7. As a public utility, Ramona and its new owner are responsible to the Commission for remittance of the Public Utilities Commission User Fees.
8. A change in ownership of a public health system requires the new owner to satisfy DHS requirements to operate a public water system.
9. After consummation of the sale and transfer, the current owner of Ramona will no longer provide public utility water service in the service territory. The new owner will assume these duties and obligations.
1. Great Western has the legal capacity and experience to acquire and operate the water system of Ramona.
2. The acquisition of ownership and control of Ramona by Great Western is in the public interest and will provide tangible benefits to ratepayers.
3. Upon completion of the sale and transfer, the current owner of Ramona should be relieved of public utility water duties and obligations.
4. Ramona and Great Western should apply to DHS for re-issuance of the existing permit of Ramona.
5. This order should be made effective immediately so as to permit prompt consummation of the sale and transfer.
IT IS ORDERED that:
1. On or after the effective date of this order, Steven Fernandez is authorized to sell Ramona Water Company (Ramona) to Great Western Water District (Buyer) upon terms and conditions substantially consistent with those set forth in Application (A.) 04-01-024.
2. The Buyer shall provide the Director of the Water Division a copy of the State of California's Secretary of State Certificate of Status of Domestic Corporation and a copy of its Articles of Incorporation.
3. The Buyer shall provide the Director of the Water Division a copy of the permit to operate the water system granted to it by the Department of Health Services.
4. Sixty days after the transfer of the water system to the Buyer, the Buyer shall provide the Director of the Water Division with the 2004 Annual Report to the Commission covering operations from January 1, 2004 to December 31, 2004.
5. The Buyer shall, upon Commission staff request, make all books and records available for review and inspection. In the event such books and records are required for inspection by the Commission or its staff, the Buyer shall either produce such records at the Commission's offices or at another location in California, or reimburse the Commission for the reasonable costs incurred in having the Commission staff travel out of State to the offices where the books and records are maintained.
6. The Corporate Identification Number assigned to the Buyer remains unchanged.
7. The Buyer shall record the acquisition of Ramona at original cost in accordance with the Uniform System of Accounts for Water Companies.
8. The authority granted in Ordering Paragraph 1 shall expire if not exercised within 12 months after the effective date of this order.
9. Upon compliance with this order, the current owner of Ramona shall be relieved of the public utility obligation, and the Certificate of Public Convenience and Necessity will be transferred to Buyer.
10. The application is granted as set forth above.
11. A.04-03-012 is closed.
This order is effective today.
Dated _____________________, at San Francisco, California.
