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Sweetwater Authority Wins Statewide Award for Hydro Station Education Experience

Chula Vista, Calif. – On Wednesday, July 22, the Sweetwater Authority (Authority) Governing Board was presented with the California Association of Public Information Officials (CAPIO) Award of Distinction for excellence in public information and communications. The Authority received the award earlier this month for its innovative communication for the Hydro Station Education Experience.

Water Agencies Warn of Threatening Calls by Scam Artists

Water agency customers in several San Diego County communities have received scam phone calls this week demanding immediate payment of water bills by credit card or their water will be turned off.

Don’t be fooled! Hang up.

Public water agencies in San Diego County do not make phone threats for immediate credit card payment. In fact, water agencies statewide are prohibited from disconnecting service to water customers during the coronavirus pandemic per an executive order issued by Governor Gavin Newsom on April 2. The order remains in effect indefinitely.

“Scammers will often ask you to pay in a way that makes it hard for you to get your money back – by wiring money, putting money on a gift card, prepaid card or cash reload card, or using a money transfer app,” according to the Federal Trade Commission. “Anyone who asks you to pay that way is a scammer.”

Utility scams pop up periodically across the region and take many forms. If in doubt about a contact made by someone claiming to work for a public water agency, call the number on your water bill and ask to talk to a customer service agent.

More information on phone scams: https://www.consumer.ftc.gov/articles/0208-phone-scams.

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Olivenhain Municipal Water District Continues to Expand Recycled Water Use 

Seagate Village Homeowner Association in Encinitas Now Irrigating with Recycled Water

Encinitas, Calif. — Olivenhain Municipal Water District began supplying locally produced recycled water to the Seagate Village Homeowner Association in Encinitas today. By converting to recycled water, the HOA will offset imported potable demand by about 9.5 acre-feet annually, or nearly 3.1 million gallons, as well as reduce their expenses due to the reduced cost of recycled water. Each acre-foot is enough water to offset the total water use of more than two average households for a year.

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Helix Water District’s Demonstration Landscape is Complete

Helix Water District’s new demonstration landscape, located at its administration office in La Mesa, is complete. The project beautifies the neighborhood and inspires others to install WaterSmart landscaping.

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Vista Irrigation District Announces WaterSmart Landscape Contest Winners

Vista, Calif. — The Vista Irrigation District board of directors recognized customers for their entries in the district’s WaterSmart Landscape Contest.
The annual contest recognizes outstanding water-wise residential landscapes based on the criteria of overall attractiveness, appropriate plant selection, design, appropriate maintenance, and efficient methods of irrigation.

Robin and Mike Zeigler received the “Best in District” award. It was important to Robin, Mike and their daughter, Kallie, to be water smart with their landscaping choices during a comprehensive landscape and irrigation upgrade. After taking a WaterSmart Landscape workshop last spring, the Zeiglers used their knowledge to transform their monotone front lawn to a colorful bloom filled garden reminiscent of their favorite European gardens.

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East County Advanced Water Purification Program Receives $86 Million in Funding from Metropolitan Water District’s Local Resources Program

July 15, 2020, Santee, Calif. – The Metropolitan Water District of Southern California’s Board of Directors recently approved the East County Advanced Water Purification Program for its Local Resources Program, providing approximately $86 million in funding for this important water supply project.

State Awards $15 Million for San Diego Regional Water Projects

July 8, 2020 – The California Department of Water Resources has awarded more than $15 million in grant funds to advance several regional water projects in San Diego County, ranging from water recycling and reuse to water conservation.

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North County Agencies Secure $2.8 Million for Recycled Water Projects

Encinitas, Calif. — The California Department of Water Resources approved a grant package that will provide $2.8 million in state grant funding to three North County water and wastewater agencies to expand and upgrade recycled water infrastructure.

Water Districts Work Together to Save Ratepayers Money

Encinitas, Calif. — Olivenhain Municipal Water District and Vallecitos Water District have entered into an agreement that will allow for cooperative use of Vallecitos’ Double Peak Reservoir site in San Marcos. The arrangement is expected to save OMWD ratepayers over $100,000.

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Strategic Steps Minimize Water Rates for 2021

Following a public hearing, the San Diego County Water Authority’s Board of Directors today adopted rate increases for 2021 that are 30% lower than proposed last month following a series of refinements by staff. In addition, the Board directed staff to return in September or October with any further opportunities to reduce the 2021 rate increases, such as a decrease in rates set by the Metropolitan Water District of Southern California or the acquisition of federal or state economic stimulus funds.

As adopted June 25, the all-in rates charged to the Water Authority’s 24 member agencies will increase by 4.8% for untreated water and 4.9% for treated water in calendar year 2021. The new rates take effect January 1, 2021.

Rate increases are driven by reduced water sales, higher rates and charges from MWD and continued regional investments in supply reliability.

Secure water supply is foundation of economic recovery

Since the staff’s rate proposal was released in May, the Water Authority re-evaluated several assumptions driven by COVID-19 recessionary pressures based on new economic data and forecasts. The Water Authority also funded some costs related to the Carlsbad Desalination Plant this year instead of in 2021. The 2021 rates and charges may be further reduced if MWD makes material changes when revisiting its budget and rates this fall.

“We’ve taken a series of strategic steps to minimize rate impacts during this pandemic-induced recession, despite numerous factors putting upward pressure on rates,” said Water Authority Board Chair Jim Madaffer. “At the same time, the Water Authority is maintaining its long-term fiscal stability while ensuring a safe and reliable regional water supply for residents and businesses that will be the foundation of our economic recovery.”

In 2021, the Water Authority will charge its 24 member agencies an all-in municipal and industrial rate of $1,474 per acre-foot for untreated water, or $68 more per acre-foot than they currently pay. Charges would be $1,769 per acre-foot for treated water, or $83 more per acre-foot than in 2020.

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. (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.)

In addition, the rates package includes new Permanent Special Agriculture Water Rates, following the Board’s decision late last year to make the temporary program permanent. The program provides farmers with lower rates that correspond to a lower level of water supply reliability. In 2021, the untreated PSAWR will increase from its current level of $755 per acre-foot to $777 per acre-foot and the treated PSAWR will increase from $1,035 per acre-foot to $1,072 per acre-foot.

Rising costs from MWD affect rates

The fiscal pressures faced by the Water Authority include:

  • Reduced water sales, which are 14% below the current budget and expected to remain low in 2021 due to coronavirus-related business closures and other factors. Decreased water sales put upward pressure on rates because costs must be spread across fewer units sold.
  • Rising costs from MWD that reflect continued increases to its base supply rates and charges and the amount MWD charges to transport the Water Authority’s independent Colorado River supplies. For the Water Authority, MWD’s adopted 2021 rates increase supply costs by more than 9%, or $15.4 million.

The Water Authority’s 2021 rates were developed 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, and strategic tools such as the Long-Range Financing Plan.

In addition, the 2021 rates are designed to ensure Board-adopted debt coverage ratios that support the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects. The Water Authority has credit ratings of AAA with a stable outlook from S&P, AA+ from Fitch, and Aa2 with a stable outlook from Moody’s.

The rates adopted by the Board are the result of strategic measures that include:

  • Providing more than $80 million in rate relief from the Rate Stabilization Fund over the next 24 months.
  • Capitalizing on historically low interest rates and strong credit ratings by lowering annual debt expenditures by optimizing cash to restructure outstanding debt to provide significant savings.
  • Planning to withdraw stored water to reduce water purchases while maintaining water reserves for future years – the result of careful planning and investments over more than two decades.
  • Reducing budget expenditures with a hiring freeze reduced professional services contracts and reprioritizing more than $30 million in capital projects.