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Urban Water Management Plan-2020-San Diego County Water Authority-San Vicente Dam

Water Authority Board Approves 2020 Urban Water Management Plan

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The San Diego County Water Authority Board of Directors May 27 approved the Water Authority’s 2020 Urban Water Management Plan for timely submission to the state. The plan highlights how regional investments in a “water portfolio approach” to supply management and a sustained emphasis on water-use efficiency mean that San Diego County will continue to have reliable water supplies through the 2045 planning horizon – even during multiple dry years.

The Board approved the final plan following a public hearing on March 25 and a 60-day public comment period which ended May 6. The final 2020 UWMP will be submitted to the California Department of Water Resources by the July 1, 2021, deadline.

“Successful efforts to create a reliable water supply coupled with the development of new local sources by the Water Authority and its 24 member agencies ensure that the region will weather dry times over the next two decades,” said Water Authority Board Chair Gary Croucher. “We continue to collaborate with our member agencies on investments in infrastructure and local supply sources to benefit the region’s ratepayers now and in future years.”

Collaboration with member agencies

The Water Authority started the current UWMP process in September 2018, coordinating closely with its 24 member agencies, most of which must submit their own plans to the state. Member agencies provided input into the final plan as part of the Water Authority’s ongoing effort to align local and regional projections as closely as possible while still following applicable guidelines and using regional models. The plan’s long-range demand forecast shows an increase in regional demands of less than 1% per year through 2045. This change in demand is consistent with the change forecasted by other large water suppliers in the state, including the City of San Diego and the Metropolitan Water District of Southern California.

Multiple supply and demand projections factor into Urban Water Management Plans, which are mandated by the state to ensure sufficient supplies over 25 years. The plans are not used to set water rates; rates are set annually based on multiple financial factors at the time, not long-term projections about water supplies.

Water supply availability

Urban Water Management Plans are dictated by statutory guidelines, Water Authority Board direction and an agreement with the San Diego Association of Governments to use its regional growth forecast. The plans also support state laws that link approval for large housing developments to water supply availability.

By law, the plans must be updated every five years. Per state guidelines, the Water Authority’s Urban Water Management Plan includes:

  • Projected water demands under normal weather and dry weather scenarios
  • Conservation savings information
  • A process to conduct an annual water supply and demand assessment
  • Supply reliability analysis

The demand forecast accounts for changes in socio-economic factors, such as the number of projected housing units, the mix of single-family and multi-family dwellings, and employment growth.

2020 Urban Water Management Plan-San Diego County Water Authority-desalination

The 2020 UWMP highlights the value of the Water Authority’s long-term strategy to invest in highly reliable and locally controlled supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant. Photo: San Diego County Water Authority

Investments in local water supply

Conservation projections account for continued adoption of water-use efficiency measures, compliance with landscape water-use ordinances for new residential construction, and continued installations of sustainable landscapes at existing homes. Since 1991, San Diego County ratepayers have conserved more than 1 million acre-feet of water, and per capita potable water use in the region decreased nearly 50% between fiscal years 1990 and 2020.

The 2020 UWMP also highlights the value of the Water Authority’s long-term strategy to invest in highly reliable and locally controlled supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant and the nation’s largest conservation-and-transfer agreement, which provides high-priority, low-cost water from the Colorado River.

In addition to the UWMP, the Water Authority also regularly updates its Regional Water Facilities Optimization and Master Plan, which focuses on the infrastructure necessary to meet projected long-term demands, and its Long-Range Financing Plan. Those documents work together to ensure the right mix of supplies and facilities to meet the region’s needs at an affordable cost.

Colorado River Aqueduct-Urban Water Management Plan-Water Authority

The nation’s largest conservation-and-transfer agreement, which provides high-priority, low-cost water from the Colorado River, is one of several investments that ensures a reliable, plentiful water supply for the San Diego County region. Photo: San Diego County Water Authority

Budget-Rates-San Diego County Water Authority-building

Water Authority Recommends 0% Change in Next Two-Year Budget

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The San Diego County Water Authority’s general manager today recommended to the Board of Directors a $1.7 billion budget for fiscal years 2022 and 2023 – a 0% change from the current two-year budget – due to the agency’s continuing commitment to cost control.

Water Authority staff also proposed increasing rates and charges for member agencies by 3.6% for treated water and 3.3% for untreated water in calendar year 2022, attributable to more rate increases by the Water Authority’s wholesaler, continued payments for past investments in supply reliability, and inflationary pressures on energy, chemicals, and construction materials.

Although the Water Authority’s budget spans two fiscal years, the agency sets rates annually to manage changing conditions more effectively. The Water Authority Board is expected to vote on rates for next year and the two-year budget at its regular meeting on June 24, following budget workshops on June 8 and 10.

“Major accomplishment”

“Proposing a flat budget is a major accomplishment made possible by strategic guidance from the Board of Directors, input from our member agencies, and the dedication of agency staff who are committed to resilient operations, forward-thinking plans, and regional collaboration,” said Water Authority General Manager Sandra L. Kerl. “The pandemic and economic recession, combined with a second consecutive dry year, created unprecedented challenges, yet we have contained costs while continuing to deliver enough water to sustain our region’s $253 billion economy and quality of life.”

As usual, more than 90% of the Water Authority’s recommended budget is for buying and treating water or building and financing infrastructure. This reflects the Water Authority’s long-term strategy to invest in supply reliability to meet current and future needs of the San Diego region – a strategy that is paying significant dividends during the current drought hitting most of California.

Seven percent of the budget funds the Water Authority’s operating departments. The recommended budget proposes increasing spending by those departments by 1%, or $1.1 million, compared to the current two-year budget.

Key initiatives the Water Authority plans to pursue during the next two-year budget cycle include:

  • Long-term planning – The Water Authority’s Long-Range Financing Plan and the Water Facilities Master Plan will be prioritized. Both are critical documents for projecting the Water Authority’s financial future and providing the Board with flexibility. Phase B of the Regional Conveyance System Study will conclude, and the Board will determine whether to proceed. Another focus is developing water storage capacity in Lake Mead to provide additional drought resilience for San Diego County and other parts of the Colorado River Basin.
  • Controlling costs – The recommended budget includes the elimination of eight staff positions, along with a reduction in outside services and minimizing travel. In addition, equipment replacement was evaluated for deferrals, minimizing the budget impact of day-to-day operations. As always, the budget is partly the function of water sales and water rates, which are both trending upward.
  • Capital improvements – The Water Authority’s Capital Improvement Program is the cornerstone of the agency’s efforts to ensure that regional water delivery and treatment systems continue to meet a variety of ever-changing demands. The agency will move forward on the highest-priority asset management projects, along with detailed seismic, hydraulic and cavitation analysis. Staff also will continue to enhance security systems for physical and cyber assets – a responsibility that grows as potential threats continue to expand.
  • Collaborating with member agencies – Water Authority staff in every department work closely with member agencies to support local efforts, from outreach and advocacy to budget and rate development – and those efforts will continue to be a priority. There are opportunities for collaboration both in joint projects and joint policy issues, such as advocating for local decision-making about drought investments and responses.
  • Communicating with stakeholders – Whether it be in the state Capitol or local chambers of commerce, the Water Authority will continue to share the region’s water story through a full range of engagement tools and creative tactics.

To support the recommended budget, the Water Authority developed its 2022 rate proposal in conjunction with an independent cost-of-service study to ensure rates and charges comply with state law, legal requirements, cost-of-service standards, and Board policies. The Water Authority also worked closely with its member agencies to keep the proposed rates and charges at the low end of earlier projections.

In 2022, the Water Authority proposes charging its 24 member agencies an all-in rate of $1,523 per acre-foot for untreated water, or $49 more per acre-foot than they currently pay. Charges would be $1,833 per acre-foot for treated water, or $64 more per acre-foot than in 2021. (Note: An acre-foot is about 325,900 gallons, enough to serve the annual needs of 2.5 typical four-person households in San Diego County.)

Actual figures will vary by member agency, and each member agency will incorporate costs from the Water Authority into the retail rates it charges to residents, businesses, and institutions.

Prudent financial planning

The Water Authority’s overall rate increase is driven by multiple factors, including rising costs from its wholesale water provider, the Metropolitan Water District of Southern California (up 3.9%), which increased its rates and charges, including the amount it charges to transport the Water Authority’s independent Colorado River supplies.

“Thanks to prudent financial planning and debt management, we are able to keep the proposed rates at the low end of our projections,” said Water Authority Finance Director Lisa Marie Harris. “We’ve worked hard to control rates while maintaining a complex water production, treatment and delivery system that will continue to support the region for generations.”

The rate proposal for Calendar Year 2022 includes strategic withdrawals from the Rate Stabilization Fund. To reduce 2022 rate increases by approximately $65 per acre-foot, the Water Authority plans to draw $25 million from the agency’s Rate Stabilization Fund. The fund was created in 1990 to help avoid rate spikes, especially those driven by reduced water sales. The rate proposal also includes strategic management of the Water Authority debt portfolio resulting in $130 million in net present value savings from several refundings.

The 2022 rate proposal ensures debt-coverage ratios that maintain the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects, an approach that saves ratepayers money over the long run. The Water Authority has senior lien credit ratings of AAA from Standard & Poor’s, AA+ from Fitch ratings and Aa2 from Moody’s.

For more information about the Water Authority’s recommended 2022 and 2023 budget, and proposed 2022 rates, go to pages 72 and 73 of the May Board packet at https://www.sdcwa.org/wp-content/uploads/2020/11/2021_05_27FormalBoardPacketSEC.pdf.

Water Authority Recommends 0% Change in Next Two-Year Budget

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May 27, 2021 – The San Diego County Water Authority’s general manager today recommended to the Board of Directors a $1.7 billion budget for fiscal years 2022 and 2023 – a 0% change from the current two-year budget – due to the agency’s continuing commitment to cost control.

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Water Authority Wins Four Awards for Outstanding Projects

/in , , /by /Water News Network Quoted: San Diego County Water Authority

The American Public Works Association and American Society of Civil Engineers recently presented the San Diego County Water Authority with four awards for construction projects that exemplified outstanding skill, dedication and collaboration from staff in many departments. All of the projects were underway or completed during the COVID-19 pandemic, and project teams navigated shutdowns, adapted to health and safety restrictions, and overcame many other uncertainties – in addition to typical challenges encountered during construction projects.

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Water Infrastructure Program, Management Plan on Poway City Council Agenda

/in , , /by /Pomerado News Chieftainby Emily Sorensen Mentioned: San Diego County Water Authority

Two water-related items are on the Poway City Council agenda for its 7 p.m. meeting Tuesday.

The council will receive an update on its ongoing Water Infrastructure Improvement Program. It will also be asked to adopt the 2020 Urban Water Management Plan.

The Water Infrastructure Improvement Program update will include current planning and design level cost estimates, said Aaron Beanan, director of finance. The council will also be asked to adopt a resolution authorizing reimbursement of some water capital improvement expenditures.

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Federal Government Slashes Water Deliveries to Farms, Cities as California Drought Worsens

/in , , /by /The Sacramento Beeby Dale Kasler

California’s water supply got cut again Wednesday, with the federal government reducing allocations to cities and farms as the drought intensified.

The U.S. Bureau of Reclamation announced that municipal water agencies that rely on the Central Valley Project will have this year’s allocations slashed from 55% down to 25% — a level not seen since the drought of 2015.

That could put additional pressure on the municipalities around greater Sacramento that depend on supplies from Folsom Lake, whose water levels have sunk dramatically this spring. The reservoir is at 46% of its usual capacity for late May.

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Troubled Waters: Extended Interview with the Imperial Irrigation District

/in , , /by /KESQ-TVby Jesus Reyes

Tina Shields, the Water Department Manager of IID, speaks on the QSA, why it was implemented, and the contention between the state and IID as water was forced from agricultural communities to urban areas.

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Hoover Dam, Symbol of the Modern West, Faces a New Test With An Epic Water Shortage

/in , , /by /Arizona Republicby Ian James

Hoover Dam has helped store Colorado River water since 1935, but reservoir levels are nearing the lowest point since Lake Mead was filled.

Hoover Dam towers more than 700 feet above Black Canyon on the Arizona-Nevada state line, holding back the waters of the Colorado River. On top of the dam, where visitors peer down the graceful white arc of its face, one of its art deco-style towers is adorned with a work of art that memorializes the purposes of the dam.

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Oceanside Wins Mayor’s Challenge For Water Conservation

/in , , /by /The Coast News Group

The city of Oceanside placed first in the 2021 Wyland National Mayor’s Challenge for Water Conservation, it was announced today.

The annual competition was held during Earth Month to bring awareness to the importance of using water efficiently, especially as California moves into its second consecutive dry year.

Mayors nationwide participated in the competition by challenging their residents to pledge to conserve water, reduce carbon emissions, reduce waste, and take other sustainable actions on behalf of their communities.

“The Oceanside community has always been a leader when it comes to sustainability, and I am honored to be the mayor of the most water-wise city in the nation,” Mayor Esther Sanchez said. “Oceanside has proven that our residents know how to protect the environment, improve water efficiency, reduce waste, and continue to implement actions that will create a better future.”

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Drought Forces Drastic Water Cuts to Valley Towns, Farmers

/in , , /by /GV Wireby Bill McEwen

It’s not yet Memorial Day weekend, but the Bureau of Reclamation is taking drastic measures because of the California drought. On Wednesday, the Bureau announced that farmers north and south of the Sacramento-San Joaquin River Delta would receive no water from the Central Valley Project. Municipal, Industrial Water Deliveries Cut 30%. In addition, municipal and industrial water-service contractors north and south of the Delta will see their allocations cut from 55% of their historic use to 25%.

 

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