Public Notification

A notice of the proposed sale and transfer was hand-delivered to the customers of B&W on November 6, 2003, notifying the customers that the trust is liquidating these assets and that Mr. Andreini is taking over day to day operations of the water system. No letters opposing the sale were received.

Water Division's Conclusions

The transfer of the B&W water system to Mr. Andreini is desired by both parties. The Trust desires to exit the water utility business because it is not in a position to provide water service. Mr. Andreini has been providing the water services since November 2003. The Water Division recommends:

(1) That the joint application, A.03-011-012, be accepted and approved with no further hearings, pleadings, or filings.

(2) That the cash sale agreement between the Trust and Mr. Andreini for a total purchase price of $1,000 be authorized.

(3) That Mr. Andreini be authorized to purchase all of the assets and assume the obligations at B&W Riverview Estates Water Company per the purchase agreement.

(4) That the Trust be granted authorization to withdraw from providing water utility service to customers of B&W Riverview Estates Water Company and Mr. Andreini be granted a Certificate of Public Convenience and Necessity to acquire ownership of B&W and provide water utility service to its customers.

Uncontested Matter

This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to PU Code § 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.

In Resolution ALJ 176-3124 dated December 4, 2003, the Commission preliminarily categorized this application as adopted, and preliminarily determined that hearings were not necessary. No protests have been received. Given this status public hearing is not necessary and it is not necessary to alter the preliminary determinations made in Resolution ALJ 176-312.

Assignment of Proceeding

Kevin Coughlan is the assigned Examiner in this proceeding.

Findings of Fact

1. The transfer of B&W water system from The Nelson E. and Winifred Bartoo Trust to Mr. Andreini is desired by both parties.

2. The previous owners have passed away leaving the company in a charitable trust and the trust cannot perform the functions of running a water company and wants to exit the water utility business.

3. Mr. Andreini has water distribution operator certification and the resources to operate B&W.

4. The Trust seeks authority to transfer ownership of the B&W Riverview Estates Water Company, which serves about ten customers.

5. The prospective new owner, Mr. Angelo Andreini, has been operating and managing the water company since November 2003.

6. Ratepayers will benefit from the transfer because the prospective new owner has the financial net worth and sufficient liquid assets to own and to operate the water system.

7. The purchase price of the system, $1,000, is the fair market value as required by PU Code § 2720.

Conclusions of Law

1. Transfer of ownership of the B&W Riverview Estates Water Company meets the test of ratepayer indifference, in that customers will be unaffected in terms of service, water quality, and continuity of service.

2. Pursuant to the California Health and Safety Code, a change in ownership of a public water system shall, and a change in regulatory jurisdiction may, require application for a new operating permit from the California Department of Health Services.

3. This is an uncontested matter in which the decision grants the relief requested.

ORDER

IT IS ORDERED that:

1. The joint application of The Nelson E. and Winifred Bartoo Trust (Trust), to sell and convey the B&W Riverview Estates Water Company (&W) and of Angelo L. Andreini, III, (Andreini) to acquire B&W, is granted.

2. B&W shall remit to the Commission's Fiscal Office all of the Commission's Users Fees collected to the date of transfer of ownership of the water system.

3. Andreini is authorized to acquire ownership of and provide the water utility service to the customers of B&W.

4. Applicants within 10 days of the transfer of ownership shall notify the Director of the Water Division in writing that the transfer has taken place, attaching copies of the transfer document.

5. Upon consummation of the transfer of ownership, the Trust shall be relieved of public utility responsibility for the operation of the B&W.

6. Andreini is directed to comply with § 116525(a) of the Health and Safety Code, which states: "No person shall operate a public water system unless he or she firsts submits an application to the department and receives a permit as provided in this chapter. A change in ownership of a public water system shall require the submission of a new application."

7. Application 03-11-012 is closed.

This order is effective today.

Dated February 10, 2005, at San Francisco, California.

MICHAEL R. PEEVEY

President

GEOFFREY F. BROWN

SUSAN P. KENNEDY

DIAN M. GRUENEICH

Commissioners