Four candidates seeking election to the Eldorado Area Water and Sanitation District board met with some 50 residents last week at the Eldorado Community Center to present how they will improve the operations and management of the water utility and put "its financial health in place."

The event was moderated by former board member Don Dayton, who initiated the development of the Water and Sanitation District following a 1997 vote by Eldorado property owners.

At the forum, candidates John Hawkins, William Bodle, Jerry Bradley and Lucian Niemeyer quickly made their point: Without a vast financial overhaul, the district could be facing bankruptcy in the near term. Bradley said the existing board recently borrowed $150,000 from its general-bond coffer to cover its revenue debt repayment.

"That's on the cusp of bankruptcy," Bradley said. Borrowing money from Peter to pay Paul, he said, "makes bondholders especially nervous and understandably reluctant to lend more money."

Bradley's solution: Refinance the bonds at a lower interest rate to loosen cash flow.

William Bodle agreed. "We need to refinance quickly," he said.

Even though refinancing initially will cost taxpayers about $63,000 in fees and penalties, he said, the district would save money long term. In 2010, the savings would jump to nearly $158,000 annually, Bodle said.

Niemeyer agreed that refinancing debt to loosen cash flow is a better solution than borrowing more money, Niemeyer said. He also warned voters against approving an additional $3 million in capital improvements. "We have enough money," he said, "we have enough water; what we lack is management of the money we have, people and water; once we have those managed correctly we'll be in good shape."

Eldorado resident Richard Maynard saw these talking points as contradictory and questioned the candidates' ability to organize a clear-cut forum.

"You sit there and say on the one hand we're headed for bankruptcy if we don't do something fast," Maynard said, "but then on the other, you say we have plenty of money — that's contradictory."

"No, it's not," Niemeyer responded. "What we are saying is we need to refinance the bonds, put a general manager in place on day one, which we are prepared to do, and end the contract we have with a private operator. This will free lots if money that should've been there in the first place," he said.

The water district is financially drained and cannot upgrade the utility, the candidates said, because too much money is spent on the private utility operator, CH2Hill Operations Management International. The company has managed the utility for the past three years at an annual base cost of some $820,000. The candidates, if elected, will replace OMI with seven employees and save more than $600,000, according to Bodle.

The election is Jan. 13 and open to property owners within the district. Four board members will be elected; two positions are four-year-terms, and two positions for the two years remaining from premature vacancies. Jerry Cooper, district board vice president, is not up for re-election.

Those in the running so far include:

* Lucian Niemeyer. A graduate of Indiana University, University of Notre Dame and the Famous Photographers School in Westport, Conn.

From 1963 through 1982, he worked for Volkswagen, first rising to the position of national sales manager of Volkswagen of America, then purchasing a VW dealership in Philadelphia with his brother-in-law. In 1982 he closed the dealership and sold its assets. From 1982 to 1987, he was involved with several businesses in the photographic field, in which he had a long-standing interest, since his father had given him his first camera in 1955, a Leica.

* John Hawkins. Owner and operator of a full-service design and construction company, overseeing all day-to-day operations, fiscal management, environmental concerns and employee relations. Supervised company operations including budget, and equipment records for Prosthesis & Orthotics, in Eureka, Calif. Eldorado resident since 1987.

* Jerry A. Bradley. Designed geophysical prospecting equipment for federal government applications, including the U.S. Geological Survey, before retiring to Eldorado some nine years ago. Since then his life has been focused on water and its applications, including gray and black water-treatment systems. Previously, Bradley served for five years on a small Colorado community water utility, the last two as board president. His stated interest in standing for election is to ensure Eldorado's homeowners water utility remains solvent and able to meet its revenue bond payments.

* William Bodle. Moved to Eldorado in June 1998 from Vallejo, Calif., where he and his wife, Lillian, owned a carwash and gift shop for 14 years with 15 employees. Bodle ran payroll, maintenance and bookkeeping. Before that, he was a partner in a carwash equipment and supply firm for 10 years with 12 employees. Bodle said he believes the Eldorado Area Water and Sanitation District board "has too many experts on the board and it's time we have people with sound business experience."

The next candidate forum will be held at the Eldorado Community Center 7 p.m. Tuesday.

Contact Christina Boyle at cboyle@sfnewmexican.com