Stanislaus County resort hopes negotiations with Kern can resolve water crisis
The Western Hills Water District is asking Diablo Grande residents for patience as it works toward an agreement with Kern County Water Agency.
Earlier this year, the Kern agency threatened to terminate water transfers to the 600-home foothills community in western Stanislaus County if the Western Hills district did not start making payments for the water.
Mark Kovich, president of Western Hills, said at Thursday’s board meeting that the district is making payments to Kern and is engaged in active negotiations. A new agreement for water must be in accordance with law and will take time to hammer out.
“There is a lot happening,” Kovich said.
Diablo Grande homeowners are paying around $700 a month for water service as the community fights for survival. The Western Hills board approved the steep water service rates, effective July 1. About 200 customers have not kept up with monthly bills, which are almost 10 times the average residential water rate in California, according to World Population Review.
Kovich gave an update on the delinquent water service accounts. As of October, 203 customers owed an average of $1,350, for a total of $274,000. The district can exercise 60-day shutoff notices for nonpayment of water bills.
As of this month, about 100 customers were in arrears, owing a total of $191,000. Of the 20 customers receiving a shutoff warning, seven paid their balances and nine signed agreements to spread payments over a time not to exceed 12 months, Kovich said. Service was shut off to four homes.
Kovich warned that tampering with water meters or shutoff valves is a violation of law and could result in jail time.
The board president said the district may be able to lower the water rate if all customers are current on bills.
Western Hills has indicated it’s using the revenue for payments to Kern, test drills for water, daily operations and other costs. The revenue is not currently used to pay down the $13.5 million in debt to Kern incurred when a previous developer stopped making payments.
In discussing the district’s budget, Kovich said Western Hills needs to build a reserve account to cover needs such as building and facility repairs, wastewater tank cleaning, new vehicles, loan repayment and rising employee health care costs.
The results of test drilling for water
Board Member Michael Oliver said test drilling for groundwater was completed at what was thought a promising site at the Frog Pond. The district had hoped to find water to supply current homes and the clubhouse, requiring 375 acre-feet per year.
Drilling to a 650-foot depth discovered a water source capable of producing 9.65 acre-feet, and nothing more was found in probing to 900 feet, Oliver said. It would take 350 acre-feet of water per year to restore each of the two defunct golf courses.
The test drilling cost was $50,700. Oliver did not recommend additional drilling.
Kovich also said the community is urging Stanislaus County not to include 90-plus parcels at Diablo Grande in a county sale of tax-delinquent properties.
Western Hills foreclosed on 91 of the parcels in 2023 for nonpayment of Mello-Roos assessments, but the financially troubled district hasn’t been able to pay the annual property tax bills. The parcels include undeveloped land, portions of two former golf courses, the clubhouse and bare residential lots.
County supervisors heard comments from Diablo Grande leaders and residents on Nov. 4 and postponed a decision on the Feb. 23 tax sale until next month.
Support from state assemblyman
Kovich noted that state Assemblyman Juan Alanis supported Diablo Grande’s request in a letter to the county. “It is important to remember the residents themselves did not bring about the financial challenges facing their community,” Alanis wrote in the Oct. 29 letter. “Much of the burden stems from past development schemes and outside investors who walked away, leaving families to cope with the aftermath.”
Alanis wrote that the people of Diablo Grande were working in good faith to stabilize their community.
Western Hills officials have said that development of 1,600 more homes at Diablo Grande would allow for a self-sustaining water service at reasonable monthly rates, but that will require a new agreement with Kern County Water Agency. Water transfers from Kern County are drawn from the California Aqueduct and are piped to the foothills resort.
