D. The Respondents have disregarded Commission directions to improve infrastructure; employed experienced, trained, and licensed water operators; and appear to have attempted selling Yermo without prior Commission approval.
According to Mr. Kazemzadeh's July 2006 field visit, Yermo has inadequate storage capacity; has a faulty distribution system with frequent leakages; is relying on old equipment; and half or more of its 25 fire hydrants are inoperable, placing much of the Yermo community in immediate peril. As a result of Mr. Kazemzadeh's investigation, WD concluded that for the short-term, Yermo needs to repair pipes and valves at four well sites; install chlorinators at two wells; and coordinate with CDPH to avoid water outages and lift boil-water orders. For the long-term, WD recommended that Yermo file a GRC; build additional storage facilities; repair the leaks; and replace its obsolescent distribution system.
On July 27, 2006, WD Staff was scheduled to meet with Marvin Hardy, the manager and operator of Yermo at the time, but Mr. Hardy missed this appointment. Instead, Mr. Kazemzadeh met with Sheryl Johnson, Yermo's meter reader, while she was performing her rounds. Ms. Johnson volunteered to give Mr. Kazemzadeh a tour of the facilities.
When Mr. Kazemzadeh asked Ms. Johnson for Yermo's books and records, Ms. Johnson stated that a certain Jeff Bentow had signed an agreement to purchase Yermo two years ago and had removed the computer containing the Yermo records, as well as other files. The custodian of the customer records and billings, a certain "Diane," was unavailable during this office inspection. Commission records show that Yermo never applied under Sections 851 and 854 for prior Commission approval of the sale of Yermo to Jeff Bentow.
According to Ms. Johnson, Mr. Bentow fired Marvin Hardy and put Ms. Johnson in charge of operating the water system. However, she had no technical or operational knowledge, training, experience, or California state certification in running a water utility. She had to hire a "handyman named `Mike'," who also had no technical knowledge, training, experience, or state certification in operating a water utility.
Mr. Kazemzadeh further learned that during the first week of July 2006, the largest pump at Well No. 1 and an electrical panel malfunctioned causing water outages for a week or more. None of Yermo's employees could repair the breakdown. Mr. Walker, who was living in Florida at the time, had to intercede and reinstate Marvin Hardy and hired a contractor to replace the damaged pump and electrical panel at Well No. 1.
According to Mr. Kazemzadeh's field inspection of all four Yermo wells, Well No. 4 was out of service; no meters were installed on the pumps for Well Nos. 2 and 3; and no chlorinators were installed at Well Nos. 3 and 4. Water pressure at Well Nos. 1, 2, and 3 ranged from 30 to 40 PSI, and several customers complained of low water pressure and poor water quality.
Mr. Kazemzadeh discovered that Yermo has not had a State certified water operator for some time. Marvin Hardy, Yermo's water operator for the past several years, does not have the requisite Water Operator D-1 California certification. As mentioned above, Sheryl Johnson and "Mike," the handyman, do not have the requisite State certification, or any prior knowledge, training, or experience in running a water system. WD also found that Yermo was not maintaining records of customer complaints, system maps, and tariff schedules or making them available to the public in compliance with General Orders ("G.O.") 96-B and 103.
