RMWD to explore exit from Pardee agreement

The pre-annexation agreement between Rainbow Municipal Water District (RMWD) and Pardee Homes may possibly disintegrate in the near future. A motion was made at the district’s regular April meeting to “commence discussions with Pardee to explore a mutually satisfactory exit from the Pre-Annexation agreement... <and> unwind the agreement in a manner that produces no additional expenses or obligations for the district.”

The motion was passed with three votes; Directors Bill Bopf and Bob Glick abstained from the vote. A second public workshop will be held on the issue on April 27. After reviewing the feedback from the workshops and hearing a report on the Pardee discussions on May 11, the board will likely take action to continue or end the agreement with Pardee.

RMWD ratepayers also learned that Joint Powers Insurance Authority (JPIA), the current insurance provider for the district, had planned on dropping RMWD on April 13 unless the district canceled the insurance first. By RMWD canceling the insurance, it allows them to be more attractive to future insurance companies.

The board agreed to cancel JPIA prior to the deadline and to pursue a new provider who will allot similar coverage. The main difference is the new provider requires a $100,000 deductible on all claims.

An effort was made by Bopf to save more money for the district by eliminating the fee directors of the board receive for attending meetings, which was “$150 per meeting up to six meetings per month,” according to the agenda. Four of the directors, excluding Director Jack Griffiths, passed a motion to compensate $150 for regular meetings, which occur once a month, attendance for an official at LAFCO, mileage, food and lodging. The directors will not receive a payment for special meetings.