Agenda

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ARF- 65

Public Hearing 3- A

Regular BOS Meeting

Meeting Date:	09/21/2010
Submitted By:	Marian Sheppard, Clerk of the Board
Department:	Clerk of the Board of Supervisors

Information

Request/Subject

Water Franchise Transfer Application-from Bonita Creek Land & Homeowner's Association to Bonita Creek Property and Preservation Association.

Background Information

On February 3, 1992, the Board of Supervisors adopted Resolution No. 92-2-1, transferring a water franchise from Rancho Bonita Water Company to the Bonita Creek Land & Homeowner's Association (BCLHA), which allowed BCLHA to operate the Bonita Creek Water Company in order to provide water to the Water Company's customers within the Bonita Creek franchised area. Also related to that transfer, the Arizona Corporation Commission (ACC) on May 22, 1991, approved the sale of utility assets and transfer of the Certificate of Convenience and Necessity (CC&N) from Putnam-Graham Properties dba Bonita Water Company to BCLHA.

On July 27, 2010, the Board of Supervisors accepted an application submitted by William Glaunsinger to transfer a water franchise from BCLHA to Bonita Creek Property and Preservation Association at which time an internal process of the application commenced with a public hearing set for this date. Obtaining a franchise from the local governing body is an ACC requirement for the process to apply for the sale of utility assets and transfer of the CC&N.

Evaluation

William Glaunsinger has met all Gila County requirements with regard to the application he submitted to the Chief Deputy Clerk for the transfer of a water franchise license. The Chief Deputy Clerk has also received correspondence from John and Vickie Goulette and Jesus and Lindo Soto, Bonita Creek property owners, who are formally opposing said water franchise transfer. Numerous supporting documents were also submitted with their letter to include a list with the signatures of 11 other property owners who are in opposition to this transfer.

All opposing parties believe that Mr. Glaunsinger acted on his own to change the name of the BCLHA even though he stated that the members of the BCLHA approved the name change. The opposing parties' letter states, "Mr. Glaunsinger decided to change the name of our homeowners association and did so without membership approval as clearly stated was necessary in our by-laws. The membership in the Bonita Creek Land & Homeowners Association was illegally taken, along with their bank accounts, and then efforts were then taken by Mr. Glaunsinger to cover up this little mistake by falsifying documents and lying."

At the time this item was submitted for the 9/7/10 Board meeting, the Chief Deputy Clerk is awaiting the documents Mr. Glaunsinger wants to provide which he believes shows that the name change was approved by the membership and was legal.

Conclusion

The opposing parties, represented by John Goulette, have submitted documentation which they believe supports their statement. They have also filed an official complaint to the ACC in opposition to a transfer of assets and CC&N to Bonita Creek Property and Preservation Association. Since this has become a legal issue, the Chief Deputy Clerk will defer to Bryan Chambers, Chief Deputy County Attorney, for a recommendation of approval or disapproval by the Board of Supervisors.

Recommendation

Until Mr. Glaunsinger has an opportunity to present his information and the opposing parties also have that same opportunity along with an opinion presented by Mr. Chambers, the Chief Deputy Clerk will not offer a recommendation of aproval/disapproval to the Board of Supervisors at this time.

Note: If the Board of Supervisors takes an action to grant the transfer of this water franchise, the Chief Deputy Clerk intends to follow up at the next regular Board meeting with a request of the Board of Supervisors to adopt a Resolution which transfers the water franchise effective of the date of the Board's official action (9/21/10), or will proceed in a manner as directed by Mr. Chambers.

Suggested Motion

Public Hearing - Information/Discussion/Action to consider granting the transfer of a non-exclusive 15-year water franchise license from Bonita Creek Land and Homeowner's Association to William Glaunsinger d/b/a Bonita Creek Property and Preservation Association. (Marian Sheppard/Bryan Chambers)

Attachments
Bonita Creek Water Franchise Transfer Application by Wm. Glaunsinger
Bonita Creek Public Hearing Notice
Bonita Creek Opposing Parties' Submittal (1)
Bonita Creek Opposing Parties-Addtl. Info. (2)
Bonita Creek Opposing Parties-Addtl. Info. (3)
Bonita Creek 9-13-10 Wm. Glaunsinger Email
Bonita Creek 9-15-10 Wm. Glaunsinger Email
Bonita Creek 9-15-10 Wm. Glaunsinger Email
Bonita Creek 9-20-10 John Goulette Emails