Month: December 2019

From the company’s own financial records, it looks like the staff is enriching themselves while they drive the company to the brink of bankruptcy.

Over the past 3 years, payroll expenses have increased by 45%, and cash reserves have been reduced by more than 50%. If the trend continues, the company will be bankrupt within the year.

Why is this happening? The general manager and her mother are on the board. The rest of the board is her friends, and the staff consists of many family members. The board has no control of the staff, since the board and staff are pretty much the same.

*Source: 2016 & 2017 990s, 2018 & 2019 shareholder financial statements.

The water company’s own rules, and state law, allows the water company to put a lien on a property if the property is behind in its payments. Apparently the water company is now putting illegal liens on everyone’s properties, even if they pay on time. The following is from a property owner in the area.

Just wanted to raise something to your attention, in case it can help you and your case.

We’re refinancing our house and the title company called with a strange finding as they were about to fund the transaction / close title this morning.

They noticed the house title had a lien on it from the water company and advised that I may be delinquent on my bills, that’s the only time they see a utility company put a lien on a property. A bit of research confirmed this practice being dependent on unpaid / delinquent bills. I’ve always paid the water company on time.

I called the water company when they opened and quickly escalated the conversation when the first person I talked to didn’t have a good explanation. The next more senior person explained they have a lien on every single house, and charge 2 months of water payments in advance with any sale or refinance
I asked about the $60 fee they added, and they explained it’s for all the paperwork required (which is ridiculous, they just send the bill to the title company for the advance water payments and the fee!).

This feels sketchy to me, I’m not even sure if it’s legal. If it’s not legal – I would be inclined to pursue legal action.

Update

Sept. 2021. In testimony in our court case against the company, the general manager admitted that they do, in fact, put a lien on all properties in the water district.

In the latest financial statement release by the Palo Alto Park Mutual Water Company, payroll expenses, including benefits, was over $470,000! The company brought in only $725,000 last year. The office is only open about 16 hours per week. This is WAY too much to pay for staff.

We have heard that the water company is beginning to force people to pay for the installation of water meters in certain properties, and charging an outrageous amount of money for them. Here is a letter from one home owner:

Dear Shannon,

My husband and I are new residents of the City of East Palo Alto. In September, 2019, Palo Alto Park Mutual Water Company informed us that we have to replace the fireflow protection meter installed at my property. The cost would be $2,700. Since the previous owner told us that he replaced all water meters(we have 2) and complied with PAPMWC’s requirements in order to obtain all permits required to final construction/remodeling, I requested by phone and email a copy of the latest (2018) approval of the water meter replacement, to which the company never responded.

The Division of Financial Assistance offered Prop 1 assistance to help PAPMWC produce the planning documents for construction of equipment upgrades.  The DFA has set up the Prop 1 funding where they assign their own work team to complete the work.  In this case, it would have been Sacramento State University and other assorted private consulting firms rounding out the team.  However, PAPMWC turned down that particular assistance.  Depending upon the developed workplan, this could have entailed as much as  $400,000 in assistance provided without cost to the community.  Instead Niambi’s sent a letter to them indicating that PAPMWC wanted to continue on the path with CRWA assistance to complete the funding application while also using its own engineering firm.

There was several attempts to explain to Niambi the service that Prop 1 funding would provide, but to no avail.  Eventually, DFA determined to withdraw all help using third party assistance providers to PAPMWC.  PAPMWC is now on their own for planning or constructing any system infrastructure project.

Click here for the letter the state has sent to PAPMWC. https://neighborsfbw.org/wp-content/uploads/2019/12/Palo-Alto-Park-Mutual-Water-Company-Rescind-Letter.pdf