CPUC ISSUES SCATHING RESPONSE TO LIVE OAK SPRINGS WATER REQUEST FOR REHEARING

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"In short, the parties  seeking rehearing have made one last ditch effort to obfuscate the facts of this case in the minds of the Commission’s decision makers by throwing spaghetti against the wall to see if they can get anything to stick. Instead, all they’ve managed to do is make a big mess,  which others are obligated to clean up.” -- Jonathan Knapp, CPUC attorney

By Miriam RAftery

September 12, 2013 (Live Oak Springs) – In May, we reported that the California Public Utilities Commission called for takeover of the Live Oak Springs Water Company and a million dollar fine for putting public health at risk. The CPUC  iin May, asked the Superior Court to appoint a receiver to operate the water company and  takeover the property, including the bankrupt Live Oak Springs Resort , where cabins and a restaurant remain closed. http://www.eastcountymagazine.org/node/13272

Live Oak Springs filed for a rehearing, claiming “wrongful and malicious” wrongdoing on the part of the CPUC and suggestion a conspiracy with the CPUC and county officials. Now CPUC attorney Jonathan Knapp with the Division of Water and Audits  has issued  a scathing response following the CPUC investigation:   http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M076/K841/76841425.PDF

Knapp called the rehearing request “an improper attempt by the parties seeking rehearing to relitigate contested issues that have already been resolved by the Commission, and another disingenuous ploy to divert attention from the issues in  controversy with a lot of noise regarding matters that are beyond the scope of the proceeding and which are entirely unsubstantiated by the evidence… In short, the parties  seeking rehearing have made one last ditch effort to obfuscate the facts of this case in the minds of the Commission’s decision makers by throwing spaghetti against the wall to see if they can get anything to stick. Instead, all they’ve managed to do is make a big mess,  which others are obligated to clean up.” 

He continued, “…the continuing, egregious misrepresentations and calculated efforts to mislead the Commission by Live Oak Holding, and, specifically, Nazar Najor, have, to  date, resulted in an incredible waste of limited government resources and underscore the need for the appointment of a receiver. “ He then asked the Commission expedite ssuance of an interim order denying the request for rehearing to stay the appointment of a receiver over the public water utility. 

“The Nazar B. Najor familiy and/or related entities  that owned the water company apparently failed to repay about  $1.5 M in loans against the resort that included land needed for their Live Oak Springs Water Company that is supposed to serve  Live Oak Springs residents,” said Donna Tisdale, chair of the Boulevard Planning Group.

In March, the CPUC ordered unauthorized water sales to SDG&E for its ECO Substation halted.  Live Oak Springs Water was previously fined $67,000 in 2007 for making illegal water sales for a Border Patrol facility construction site.  In addition, the company has operated without required licensing and been caught selling contaminated water.  The record further reveals that in 2007, Najor pled guilty to a felony for falsifying a lab report, though it was later reduced to a misdemeanor.

View documents in this case:

http://delaps1.cpuc.ca.gov/CPUCProceedingLookup/f?p=401:57:290279086706301::NO