What about Liberty’s water rights? (May 27, 2017)
The Town is being coy about what is intends to seize from Liberty Utilities. It implies it wants to seize the entire operation (within the Town’s sphere of influence), but it seems never to account for the water rights held by Liberty Utilities.
In 2014, those water rights were estimated to be valued at around $68 million. My understanding is that currently, those water rights are worth around $81 million. If you watch what the Town says Liberty Utilities is worth, however, you can see that it never includes this amount in its valuations.
Yet, consultants to the Town have pointed out the existence of these water rights, so either the Town has some hope that it will be able to acquire Liberty’s water rights for free, or it is being disingenuous about what the projected total price will actually be.
The Town’s view of Liberty’s assets, omitting water rights
April 22, 2014
“Facilities: 465 miles of water mains; 24 wells; emergency generators; storage tanks; booster stations; and pressure zones”
(“Presentation regarding the application of Apple Valley Ranchos Water Company to increase water rates”, to the Town Council and community)
April 28, 2015
“465 miles of water mains; 24 wells; emergency generators; storage tanks; booster stations; and pressure zones
(“Town Hall presentation to the Town Council and community regarding the Apple Valley water system,” BB&K/Town Council/Town staff)
Webmaster note: At this meeting, I asked specifically if the $45 million valuation included the water rights. Town attorney John Brown of BB&K replied that it did. Unfortunately, I was not allowed a follow-up question.
April 11, 2017
“465 miles of water mains; 24 wells; emergency generators; storage tanks; booster stations; and pressure zones”
(“Financing the purchase of the water company — within existing rates,” presentation to the Town Council by Marc Puckett)
April 25, 2017
“465 miles of water mains; 24 wells; emergency generators; storage tanks; booster stations; and pressure zones”
(“Financing the purchase of the water company — within existing rates,” presentation to the Town Council by Marc Puckett)
The Town’s consultants’ view of Liberty’s assets, including water rights
February 11, 2014
“Also, this report assumes that water rights currently held by AVR will be transferred to the Town as part of the acquisition. It also assumes that water rights currently leased or purchased by AVR from other parties could be leased or purchased by the Town under the same terms and conditions after the acquisition.”
(“Financial Feasibility Analysis for the Acquisition of the Apple Valley Ranchos Water System,” Urban Futures)
June 24, 2015
“The Town’s acquisition of AVR’s water rights would entitle the Town to the currently established allocations assigned to AVR, and would require the Town to meet the same standards in terms of replenishment if it were to exceed established limits on withdrawals. In addition to water rights, the AVR System includes infrastructure that allows for the production, distribution, and delivery of water supplies within its service area. As reported, the AVR System provides domestic water from its system of 23 wells, which has a total pumping capacity of approximately 37 million gallons per day; these wells were drilled throughout the 55-year period from 1953, when the first well was drilled, to 2008 when the newest wells were completed. The AVR System also includes approximately 469 miles of pipeline and 22,431 active service connections, providing service to approximately 62,602 customers; there is also 11.7 million gallons of storage provided in tanks. AVR also owns property that generally supports system infrastructure (e.g., groundwater wells and water storage tanks) and public utility right-of-ways, including 42 assessor parcels with a total area of approximately 34.52 acres (Apple Valley Ranchos Water Company, 2015).”
(“Apple Valley Ranchos Water System Acquisition Project: Initial study,” Rincon Associates)
July 16, 2015
“The Town’s acquisition of AVR’s water rights would entitle the Town to the currently established allocations assigned to AVR, and would require the Town to meet the same standards in terms of replenishment if it were to exceed established limits on withdrawals. In addition to water rights, the AVR System includes infrastructure that allows for the production, distribution, and delivery of water supplies within its service area. As reported, the AVR System provides domestic water from its system of 23 wells, which has a total pumping capacity of approximately 37 million gallons per day; these wells were drilled throughout the 55-year period from 1953, when the first well was drilled, to 2008 when the newest wells were completed. The AVR System also includes approximately 469 miles of pipeline and 22,431 active service connections, providing service to approximately 62,602 customers; there is also 11.7 million gallons of storage provided in tanks. AVR also owns property that generally supports system infrastructure (e.g., groundwater wells and water storage tanks) and public utility right-of-ways, including 42 assessor parcels with a total area of approximately 34.52 acres (Apple Valley Ranchos Water Company, 2015).”
(“Apple Valley Ranchos Water System Acquisition Project: Amended initial study,” Rincon Associates)
July 16, 2015
“The Town’s acquisition of AVR’s water rights would entitle the Town to the currently established allocations assigned to AVR, and would require the Town meet the same standards in terms of replenishment if it were to exceed established limits on withdrawals.
“In addition to water rights, the AVR System includes infrastructure that allows for the production, distribution, and delivery of water supplies within its service area. As reported, the AVR System provides domestic water from its system of groundwater wells, which has a total pumping capacity of approximately 37 million gallons per day; these wells were drilled throughout the 55-year period from 1953, when the first well was drilled, to 2008 when the newest wells were completed. The AVR System also includes approximately 469 miles of pipeline and 22,431 active service connections, providing service to approximately 62,602 customers; there is also 11.7 million gallons of storage provided in tanks. AVR also owns property that generally supports system infrastructure (e.g., groundwater wells and water storage tanks) and public utility right-of-ways, including 42 assessor parcels with a total area of approximately 34.52 acres.”
(“Amended Notice of Preparation of an Environmental Impact Report for the Proposed Apple Valley Ranchos Water System Acquisition Project EIR Comment Period Time Extension and Additional Scoping Meeting Date,” Town of Apple Valley)
September 17, 2015
“As part of the proposed Project, the Town would purchase all rights and interests in the AVR System from Park Water Company. The Town’s proposed acquisition of the AVR System would include all associated assets, (i.e., real, intangible, and personal property), including, but not limited to:
(“Draft Environmental Impact Report (DEIR) for the Apple Valley Ranchos Water System Acquisition Project,” Rincon Associates)
- Water systems and production wells, as defined in Section 240 of the California Public Utilities Code;
- Utility plants;
- Water rights;
- Water supply contracts; and
- Records, books, and accounts.”
November 9, 2015
“As part of the proposed Project, the Town would purchase all rights and interests in the AVR System from Park Water Company. The Town’s proposed acquisition of the AVR System would include all associated assets, (i.e., real, intangible, and personal property), including, but not limited to:
(“Final Environmental Impact Report (FEIR) for the Apple Valley Ranchos Water System Acquisition Project,” Rincon Associates)
- Water systems and production wells, as defined in Section 240 of the California Public Utilities Code;
- Utility plants;
- Water rights;
- Water supply contracts; and
- Records, books, and accounts.”