CSD Releases Statement Regarding Ongoing Lease Negotiations With the BVSA
For Immediate Release
Bear Valley Springs Community Services District
28999 Lower Valley Rd
(661) 821-4428
November 5,2025
There have been recent posts on social media that the Bear Valley CSD is terminating the lease agreement with the Bear Valley Springs Association. The posts have also referenced a new lease agreement requirement for the BVSA to pay rent for the amenities. The posts include much discussion as to the underlying reason for these actions, some which are accurate and many which are not.
The facts are as follows.
1. All the amenities are owned by the CSD and are leased to the BVSA to maintain and operate per the lease agreement.
2. The current lease agreement was approved in 2007 and includes six addenda. Rather than continuing to add amendments to the current lease, the CSD has proposed a new lease that is similar in purpose and content, but with some additions for clarity on legally necessary terms and conditions.
3. All the amenities and related property are to be maintained according to the owner’s requirements and in compliance with local, state, and federal regulations and codes. The District believes that the BVSA has violated certain sections of the lease agreement, principally including the following:
• Inspection and Maintenance – failed to keep all the amenities (trails, drainage, roads) in “good repair”.
• Insurance – failed to provide detailed verification of required coverage for all the amenities.
• Nuisance or Unlawful Uses – allowed public nuisances or unlawful uses of amenities.
• Fixtures Improvements and Additions – failed to obtain prior approval from the CSD for alterations of the amenities as required nor has it complied with applicable regulations, environmental permits, CEQA, and contracting requirements for public works projects.
• Refused to provide necessary and critical documents and information when requested.
4. As the owner of the property, the District must comply with public contracting and labor code sections related to prevailing wages, registered contractors, etc. By leasing the property to the BVSA, the BVSA is also required to comply with the Government Code related to contract services and operations.
5. The California Constitution, Article XVI, section 6, prohibits the giving or lending of public funds to any person or entity, public or private, and includes anything of value. Waiving rental revenue or offering it at below market rates is considered a gift of public funds unless a similar value is received in return. This statement of value must be articulated in some form.
6. Governmental Accounting Standards Board Statement No. 87 requires that public agencies “recognize a lease receivable and deferred inflow of resources” as part of its financial statements. This means that the District must reflect the value of the lease agreement with a monetary value.
The CSD met with the BVSA manager and two board members to explain its concerns and assured the BVSA that it would negotiate a new lease agreement that would comply with the requirements needed to protect the CSD and its taxpayers and rate payers as well as to reflect the benefit provided through this partnership. The rental amount was an initial starting point for the discussion and further discussions would take place to quantify the value provided by the partnership and, therefore, justify the less than market value.
The CSD is sensitive to the fact that any increase in fees affects residents and their household budgets. Negotiations are necessary for compliance with the requirements for governmental agencies and are legal and fiduciary responsibilities of the CSD as property owner, which includes liability to its residents.
The CSD desires to negotiate with the BVSA in a responsible and honest manner and hopes that the BVSA does the same. Once both parties agree to terms and conditions, a final lease agreement will be subject to approval by Boards of both organizations. For the CSD, this would occur at a publicly noticed meeting in accordance with the Brown Act.
For transparency, the CSD is scheduling a special Board meeting to discuss the draft lease agreement in open session.