Board sitting on the fence about how to report Well #7 and Well #8 in the FY2021 financial report.

On June 6, Crestview plans to mail to every shareholder FY2021 financial statements that clearly do not comply with state law. For the legally-required annual report reviewed by the CPA firm and containing all necessary adjustments and disclosures, shareholders are referred to a website, where that report does not exist—at … Read more

Mandatory conservation measures threatened by suppliers of imported water provide more justification for not selling the company, for getting out of the Well #8 contract, and for a new backup well.

On April 26 the Metropolitan Water District may limit landscape watering to once per week.  That would cut Crestview consumption 57%, and our rates would go up.  A recent letter from Crestview announced the draconian MWD rules would not apply to us if we reduce our consumption by just 20% … Read more

The disastrous contract with Calleguas for Well #8 should be renegotiated in major ways or terminated (Part 2). 

We posted Part 1 on April 10 and forwarded it to Crestview for comment.  No comment has been received, but we can quote from a March 17 email from a shareholder to all directors and the general manager reporting on a meeting with the president of Calleguas.

[We] recently met

Read more

The disastrous contract with Calleguas for Well #8 should be renegotiated in major ways or terminated–Part 1.

The funding for Well #8 comes from Calleguas.  Under that contract, Crestview must deliver 3 cubic feet per second (“cfs”) for six months if Calleguas suffers an “outage of imported water.”  That would be 1,086 acre-feet, which exceeds the 717 acre-feet Crestview is allowed to pump in a whole … Read more

The March 24 board meeting was rescheduled to March 31. 

The general manager’s report for the March 31 board meeting says a supplier backlog has delayed the Well #4 project.  Testing has been rescheduled to May 23.  That may not be soon enough to avoid the need to switch to expensive Calleguas water.

Crestview has received a report on preliminary … Read more

The annual meeting must be held by May 13, and shareholders will elect directors that will make two big-dollar decisions.

Will Crestview continue spending money on Well #8, or renegotiate or terminate it to cut our losses?  The purpose of Well #8 is to supply emergency water to Calleguas and the City of Oxnard.  Crestview shareholders cannot get even one additional quart.  The current board entered into the contract with … Read more

Crestview reopens the money tap on Well #8, even though all the problems remain. 

Crestview has recommenced spending on Well #8.  The architect took drone images of the current site in January, and on January 27 the Board approved a contract for a new noise study.  Spending had been paused in October to consider options.

If there was consideration of moving Well #8 back … Read more

Crestview’s budget for Well #8 is delusional, and the contract with Calleguas is much more onerous than Crestview admits.

We discover Crestview’s revised budget for Well #8 is delusional and that the website description of the Calleguas contract for Well #8 is materially false.

Crestview’s revised budget for Well #8 omits major cost items. 

Crestview has presented this grossly inadequate budget to the Department of Water Resources in a … Read more

The board’s failure to budget for eminent domain costs is financial mismanagement that continues to risk Crestview’s solvency.

Crestview threatened several times to big-foot Well #7 into being by using its power of “eminent domain” or “condemnation.”  However, it never acknowledged that when a water utility takes private land for a public purpose it has to pay fair value.  Those compensation costs would have made the company insolvent … Read more

Crestview still faces millions of dollars of cost overruns for Well #8, even after amending the Calleguas contract.

The contract between Crestview and Calleguas provides that all capital costs above $2.1 million must be borne by Crestview.  At the November 29 board meeting, Crestview approved an amendment that raises the cap to $3.3 million, but a realistic cost estimate is $5-6 million.

As previously explained, Well #8 … Read more