City Resists Koll Deadline on Water Supply Decision

Responding to a letter from the Koll Co. that was described as insulting and tantamount to blackmail, the City Council said this week that it needs more time and information before it can decide whether to provide services to a proposed Bolsa Chica housing project.

But with the two sides at least communicating, they are closer than ever to reaching an agreement on water service for the planned 2,400-home development next to Huntington Beach, City Administrator Michael T. Uberuaga said.

The developer has been negotiating with the city for two years over library, fire, police and water services, and has been close to agreement on all but water and police.

On April 8, Koll Vice President Ed Mountford sent a letter to the city with a proposal, but said the deal had to be done within 30 days and the services couldn’t be agreed on separately.

At the time, Councilman Dave Sullivan said the all-or-none deal was “flat-out blackmail,” and Mayor Ralph H. Bauer said, “Koll seems to have a magic way of offending people.”

Koll officials said the company would pay up to $8.75 million for a reservoir, well, pump and other facilities. But because the development will be in unincorporated Orange County, Huntington Beach officials want to make sure the city profits from the sale of water to Koll, and that city residents don’t end up paying extra.

Environmental groups hoping to block the development have asked the city to withhold water altogether.

The city’s response to Mountford, sent Tuesday, includes a list of queries council members said they need answered.

Koll spokeswoman Lucy Dunn said the company will ease the 30-day deadline, “but at this point it’s going to be on a day-by-day basis.”