Public Notification

A notice of the proposed sale of SSWC to Mr. MacElhenny was mailed to the customers of SSWC on April 13, 2004. No letters opposing the sale were received.

Water Division's Conclusions

The transfer of the SSWC water system from Ms. Rohner to Mr. MacElhenny is desired by both parties. Ms. Rohner wants to exit the water utility business because she has sold the real property containing the Resort to Mr. MacElhenny and as a result she no longer has staff to assist her in operating SSWC. Mr. MacElhenny has the staff and the resources to operate SSWC, both in his office in Santa Barbara and in connection with operating the Resort, and by retaining professional consultants. Mr. MacElhenny and his staff have been managing SSWC for Ms. Rohner on an interim basis since July 2003. The Water Division recommends:

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.

Assignment of Proceeding

Findings of Fact

1. The transfer of SSWC water system from Ms. Rohnert to Mr. MacElhenny is desired by both parties.

2. Ms. Rohner wants to exit the water utility business because she has sold the real property containing the Resort to Mr. MacElhenny and as a result she no longer has staff to assist her in operating SSWC.

3. Mr. MacElhenny has the staff and the resources to operate SSWC.

4. Ms. Vanya Rohner seeks authority to transfer ownership of the Sonoma Springs Water Company, which serves 23 customers.

5. The prospective new owner, Mr. Bernard J. MacElhenny, Jr., has been managing Sonoma Springs Water Company since July 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 continue operating the water system and has been doing so successfully since July 2003.

7. The purchase price of the system, $25,000, is the fair market value as required by PU Code § 2720.

Conclusions of Law

1. Transfer of ownership of the Sonoma Springs Water Company meets the test of ratepayer indifference, in that customers will be unaffected or better off in terms of service, water quality, and continuity of service.

2. Pursuant to 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.

IT IS ORDERED that:

1. The application of Ms. Vanya Rohner, to sell and convey the Sonoma Springs Water Company to Mr. Bernard J. MacElhenny, Jr. is granted.

2. SSWC 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. Mr. Bernard J. MacElhenny, Jr. is authorized to acquire ownership of and assume water utility service to the customers of Sonoma Springs Water Company.

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, Ms. Vanya Rohner shall be relieved of public utility responsibility for the operation of the Sonoma Springs Water Company water system.

6. Mr. Bernard J. MacElhenny, Jr. 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 04-03-031 is closed.

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