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The debate between Alameda County and Castlewood Property Owners Association over a $1.4 million charge assessed to the association continues unresolved.
Supervisor David Haubert, who represents Castlewood, agreed that it’s a “stalemate” after the board took a series of actions on June 30 in response to proposals from county public works director Daniel Woldesenbet. The Alameda County Public Works Agency manages the county service area that serves the association’s homeowners and The Club at Castlewood. At Haubert’s request, the seven recommendations were divided into two motions.
Five passed with three supervisors voting affirmatively, Supervisor Nate Miley abstaining and Haubert voting no. Miley represents most of Pleasanton and previously represented Castlewood for 10 years.
The two measures to allocate the funds, which took a four-fifths vote, both failed 3-1-1. That left unresolved repayment of the $1.4 million that the association disputes and was run up from fiscal years 2021-24. Supervisors earlier approved loaning the money from county funds, which includes a modest interest rate. Public works revised proposal would have made it an intra-fund loan within the county service area carrying no interest and would be repaid with surplus money in any of the dedicated service area funds.
The approved measures also direct public works to initiate annexation discussions with both the city of Pleasanton and the Local Agency Formation Commission that must approve any arrangements. The service area provides water and sewer services to about 190 homes in Castlewood, adjoining developments and along Foothill Road. A road fund also is included in the accounts.
The $1.4 million charge has been contested since the supervisors approved public works making the loan in the prior fiscal year. Property owner representatives have said publicly they have received insufficient information supporting the charges, an assertion public works disputes. The association filed legal action to force a property owners vote under Proposition 218 requirements and the settlement agreement included the ballot. It failed, with more than 90% opposed to the charge.
That left the charge unresolved and resulted in the action that took place on the last day of the county’s fiscal year.
Annexation to Pleasanton may be the best solution for the association because the county has declared it wants to be out of the service area business. Given the city’s budget challenges, it must be a cash-positive arrangement for Pleasanton.
One pressing issue that both the association and supervisors have identified is electrical generators to back up the pumps that fill the two 150,000-gallon water tanks on the hillside above the country club. With PG&E regularly cutting electrical power during high fire danger, there’s a need for backup power to keep water moving into the tanks.
The current bandage approach is portable generators that are rented for $80,000 annually but require an employee of Bracewell Engineering to respond to outages and literally plug in and start the generators. The firm is based in Morgan Hill. A prior arrangement had a Castlewood employee responsible, but that person retired and no agreement between the county and the country club has been set to replace that function.
The association’s board also wants the county to install a system to modulate pressure on the pipes when the pumps start and stop. Discussions about this were proceeding earlier in the year, but have stalled.
There are other issues under discussion, but the loan and fire protection are the biggest ones.
Property owners already were smarting from the 172% increase in water rates that took effect July 2025 making the rates the highest of any utility in the surrounding area.
Editor’s note: Tim Hunt’s family home is within the Castlewood county service area.
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