ALJ/BRS/hkr DRAFT CA-4

1/4/2001

Decision DRAFT DECISION OF ALJ STALDER (Mailed 11/30/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Investigation on the Commission's own motion of whether Camp Meeker Water System, Inc. has complied with Ordering Paragraphs No. 5 and 6 of D.89-10-033, relating to the filing of a notice of intent to preserve easements.

Investigation 92-07-031 (Filed July 22, 1992)

OPINION

Background

We opened this investigation on July 22, 1992 to investigate whether respondent Camp Meeker Water System, Inc. (CMWSI) had complied with Decision (D.) 89-10-033. That decision ordered CMWSI "to enforce its easement rights as necessary to meet its public utility obligations" and to "record a notice of intent to preserve its easements, pursuant to Civil Code § 887.060, in order to preclude any efforts to claim CMWSI has abandoned its easement rights." (See Ordering Paragraphs No. 5 and 6, 33Cal. P.U.C. 2d 253, 298.) The OII further stated that CMWSI had acted unlawfully in violation of Pub. Util. Code § 702, which requires public utilities to comply with all orders of the Commission.

This proceeding was consolidated with Application (A.) 91-01-018, the application of CMWSI for recovery of extraordinary expenses to offset the costs of importation of water during drought months from August 1990 through December 1992.

Prehearing conferences (PHCs) in this investigation were held on December 18, 1992 and August 6, 1993.

By letter dated August 31, 1993, CMWSI notified the Department of Health Services that it would be unable to continue to serve customers beyond that date.

On September 7, 1993, in Case No.(C.) 205852, the California Department of Health Services petitioned the Superior Court of the County of Sonoma (court) to appoint a receiver to assume possession of CMWSI and operate its system. On the same date, the court appointed the Russian River Utility Company (RRUC) as receiver to operate the CMWSI system and serve its customers.

An evidentiary hearing was held on October 14, 1993, followed by a third PHC on June 14, 1994.

Subsequently, in D.95-03-012 dated March 16, 1995, we concluded that CMWSI had abandoned service, and in doing so the stockholders of CMWSI had abandoned the company and all its assets. In that decision we also concluded that A.91-01-018 was moot and dismissed it.

The Camp Meeker Recreation and Park District (CMR&PD) filed A.95-07-012 on July 3, 1995, seeking authority to acquire and operate the CMWSI facilities and serve the former CMWSI customers. The Commission by D.96-05-068 dated May 22, 1996 granted that authority to CMR&PD, and required it to keep the Commission informed of its efforts to obtain court effected transfer of CMWSI to its ownership and control.

The Camp Meeker Water System Overall Settlement Agreement and Release (Agreement) dated April 27, 1998 settled two lawsuits that were pending in court, Chenoweth v. Camp Meeker Water System, Inc., et al. in C.205402, sometimes referred to as the "easement lawsuit," and In re Camp Meeker Water System, Inc., et al. in C.205852, sometimes referred to as the "receivership action." Under the Agreement the franchise to operate the Camp Meeker water system, along with certain lands, easements and other rights and assets and liabilities are dedicated, transferred and turned over to CMR&PD.

Also on April 27, 1998, in C.205852, RRUC petitioned the court to be relieved of its duties as receiver of CMWSI.

The court on February 18, 1999, in C.205852, approved the transfer of CMWSI, through RRUC, to CMR&PD of the rights and interest in the franchise to operate the water system within the boundaries of the district.

On December 22, 1999, the court ordered a Final Judgement in C.205852 relieving RRUC as receiver, approving its accounting, and authorizing it to transfer certain assets, inventory, and property to CMR&PD.