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Water Authority Responds to LAFCO Commission Vote on Detachment

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July 10, 2023 – Mel Katz, chair of the San Diego County Water Authority’s Board of Directors, issued the following statement in response to today’s decision by the San Diego County Local Area Formation Commission (LAFCO) regarding the proposed detachment of two water agencies from the Water Authority.

“Today’s unprecedented decision by San Diego LAFCO is very disappointing because it will raise water rates for disadvantaged communities, working families, 70% of agriculture in the county, small businesses, and everyone else across our region. We’re deeply concerned that LAFCO decided that water ratepayers across San Diego County don’t get a say in whether Fallbrook and Rainbow can walk away from their bills and shift their costs to the rest of the county.

“It’s also clear that LAFCO failed to study the environmental impacts of its decision, as required by state law – a serious breach of public confidence in a system that’s supposed to protect us all.”

— Mel Katz, Board Chair, San Diego County Water Authority

 

 

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WaterSmart Landscape Contest Winner Saves Water, Adds Beauty to National City Home

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Chula Vista, Calif. – At its meeting on June 28, Sweetwater Authority named Catalina Schultz of National City this year’s winner of the WaterSmart Landscape Contest. Schultz’s landscape demonstrates how homeowners can create a beautiful, California friendly landscape using less water.

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San Diego County Water Authority And its 24 Member Agencies

LAFCO Decision Could Raise Region’s Water Bills by Nearly $200 Million

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Updated figures released today show that disadvantaged communities, working families, farmers, and others across San Diego County will be forced to pay nearly $200 million more over the next decade for water service unless agencies seeking to leave the Water Authority are required to fully cover their costs.

On July 10, the San Diego Local Agency Formation Commission’s board is expected to vote on a plan for the Fallbrook and Rainbow water agencies to leave the San Diego County Water Authority, possibly with the inclusion of an “exit fee.” However, LAFCO’s figures are based on years-old data and flawed projections that understate the annual costs of detachment by at least 50%. Like everything else, costs related to water supplies have inflated significantly over the past three years.

LAFCO’s data don’t reflect the inflationary realities or the fact that the financial impacts of detachment will continue far beyond LAFCO’s five-year horizon, which does not reflect the actual lifespan of water infrastructure or the debt used to finance it. The LAFCO staff report acknowledges impacts will continue far longer than five years, suggesting that the rest of the county should pay for benefits to Rainbow and Fallbrook.

“From the start of this process, one of our top priorities was making sure that residents across the region aren’t harmed financially. It’s critical that ratepayers who are struggling to make ends meet, independent farmers, and small businesses aren’t forced to subsidize Fallbrook and Rainbow for years to come,” said Water Authority Board Chair Mel Katz. “We encourage the LAFCO Commissioners to require Fallbrook and Rainbow to fully cover their costs.”

LAFCO’s staff recommendation to approve the detachment proposals by the Fallbrook and Rainbow water agencies does not include substantive analysis of impacts to disadvantaged communities, or to agriculture in the Water Authority service area. Nor does it include environmental analysis required by law.

The LAFCO staff recommendation includes an exit fee of about $4.8 million a year for five years, which isn’t close to covering the actual costs that will be shifted to residents elsewhere in the county.

Here’s how much retail water agencies in the region may have to pay each year to cover the projected $18.9 million bill from Fallbrook and Rainbow leaving:

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Sweetwater Authority Approves $66.9M Budget for Fiscal Year 2023-24, Prioritizing Process Improvements and Water Supply Development

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Chula Vista, Calif. – At its meeting on June 28, the Sweetwater Authority Governing Board approved a $66.9 million budget for fiscal year 2023-24. The budget allocation highlights the Authority’s commitment to maintaining a reliable and efficient water system, while responding to inflationary pressures, including significant increases in electricity, chemical, and San Diego County Water Authority imported water costs.

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San Diego County Water Authority And its 24 Member Agencies

Water Authority General Manager Sandra L. Kerl Retires

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San Diego County Water Authority General Manager Sandra L. Kerl retires today after more than 40 years of public service, with Deputy General Manager Dan Denham taking over as acting GM until the Board of Directors permanently fills the position.

Kerl’s tenure at the Water Authority included 10 years as deputy general manager and four years as the agency’s top staff member during a period of unprecedented uncertainty regionally and nationally. Following her retirement announcement in April, Kerl was praised by state and local leaders for her steady hand and tireless efforts on behalf of San Diego County and the water industry.

‘Can-do spirit’

“Sandy’s vision and management skills have been crucial in successfully navigating the challenges of an extreme drought while ensuring stability through the COVID-19 pandemic,” said Mel Katz, chair of the Water Authority Board. “Her deep experience with water issues, collaborative management style, and can-do spirit guided the agency through an unprecedented period of change. Sandy’s dedication and work ethic on behalf of San Diego region will be missed. We are grateful for her service and wish her nothing but the best in retirement.”

During a June ceremony at the Water Authority’s Kearny Mesa headquarters, California Senate President pro Tempore Toni G. Atkins presented Kerl with a framed resolution recognizing her contributions to the region on behalf of the entire San Diego County delegation in the state Legislature. San Diego County Congressmen Scott Peters and Darrell Issa also provided proclamations celebrating Kerl’s service.

As general manager, Kerl launched an era of increased engagement with the Water Authority’s 24 member agencies and the Metropolitan Water District of Southern California. She took a similar approach with staff, issuing the first agency-wide employee engagement survey and using the results to focus on areas of improvement. The Water Authority was named a Top Workplace in 2021 and 2022 by The San Diego Union-Tribune based on employee surveys by an independent organization.

Sandra L. Kerl retires after decades of public service

Career highlights for Kerl also include playing pivotal role in securing financing for the nation’s largest seawater desalination plant, which started commercial operations in Carlsbad in 2015 and produces approximately 50 million gallons of water a day for the San Diego region. Before joining the Water Authority, Kerl served as the city manager of La Mesa, Calif. Throughout Kerl’s career, she has been active in the International County Management Association and has served as chair of the San Diego City/County Managers Association and San Diego Regional Training Center.

Kerl served as Chair of California Urban Water Agencies (CUWA) for the last year, an organization that has shaped the conversation about drought with state leaders during her tenure. She also served on the Executive Board of the Southern California Water Coalition, chairing the Colorado River Task Force and Southern California Leadership Council Executive Committee.

“It has been my privilege to work with so many talented and dedicated people during my 14 years at the Water Authority,” said Kerl. “Enhancing our workplace culture, breaking down barriers to collaboration, and ensuring safe and reliable water supplies despite intense challenges would not have been possible without the dedication of staff, member agencies, and the Board of Directors. I have complete confidence that they will carry on our mission without skipping a beat.”

The Water Authority Board formed a work group to lead the general manager selection process. During the interim, Denham will work closely with staff and the Board to ensure continued execution of Water Authority priorities. The transition team also includes Assistant General Manager Tish Berge, who will serve as acting deputy general manager, and Water Resources Director Kelley Gage, who was appointed acting assistant general manager.

Denham has served in several leadership capacities with the Water Authority over the past 17 years, including deputy general manager. In that role, he oversaw the MWD and Colorado River programs, along with the Engineering, Water Resources, and Operations & Maintenance departments. Denham also oversees the implementation of long-term agricultural-to-urban conserved water transfers that are among the largest in the United States. As a commissioner on the Quantification Settlement Agreement Joint Powers Authority, he leads the Water Authority’s fulfillment of environmental mitigation obligations and legislative advocacy efforts at the Salton Sea.

Before joining the Water Authority in 2006, Denham served in various capacities at the City of San Diego’s Metropolitan Wastewater Department, Financial Management Department and Mayor’s Office. Denham holds undergraduate degrees in public administration and economics, and a graduate degree in public administration – all from San Diego State University.

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OMWD Board Recognizes Winner of 2023 WaterSmart Landscape Contest

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Encinitas, Calif. — At its June 21 meeting, Olivenhain Municipal Water District’s Board of Directors honored Brad Lefkowits as winner of its annual contest designed to inspire attractive landscape transformations that reduce outdoor water use.

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Seven Local Photographers Honored for Their Images of Elfin Forest Recreational Reserve

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Encinitas, Calif. — At its June 21 meeting, Olivenhain Municipal Water District’s Board of Directors recognized seven photographers for their winning images in the sixteenth annual Elfin Forest Recreational Reserve photo contest.

The contest offers amateur photographers an opportunity to connect viewers with wildlife and the outdoors. Submissions support EFRR efforts to protect wildlife and natural resources.

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San Diego County Water Authority And its 24 Member Agencies

Water Authority Board Approves 2024 Wholesale Rates After Public Hearing

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The San Diego County Water Authority Board of Directors today approved wholesale water rates for 2024 following a public hearing and approved the recommended budget for the next two fiscal years. The budget and rates support continued work on numerous agency priorities, including capital projects critical for maintaining safe and reliable water supplies.

“The Board and staff have worked tirelessly for months to minimize rate increases while supporting the reliability of our water supply,” said Water Authority Board Chair Mel Katz. “Despite cost increases created by extraordinary inflation and depressed water sales, we have a budget that allows the Water Authority to do what it does best – provide the water that sustains our economy and quality of life.”

The Board approved increasing wholesale water costs for its 24 retail member agencies by 9.5%. Actual rate impacts will vary by agency based on their use of the Water Authority’s system and actual water purchases. Water rates paid by residents and businesses will also vary based on factors unique to each retail agency.

Budget and rates

The budget and rates package was the most challenging in decades due to extreme inflation over the past year and depressed water sales due to cool and wet weather. Against that backdrop, the Board prioritized immediate ratepayer relief with a planned withdrawal of nearly $30 million from the Rate Stabilization Fund, which would bring the fund to its lowest level in more than a decade. The Rate Stabilization Fund was created in 1990 to help avoid rate spikes, especially those driven by reduced water sales following abnormally wet weather or mandatory cutbacks.

The Board also approved the staff recommended $1.85 billion budget for fiscal years 2024 and 2025, an increase of 5% from the current two-year budget due to higher costs for water, treatment and infrastructure maintenance. The budget prioritizes the following initiatives:

  • Long-term planning
  • Capital projects
  • Engaging stakeholders
  • System and asset management
  • Fiscal responsibility and cost control

Approximately 90% of the Water Authority’s recommended budget is for buying and treating and delivering water, combined with debt service and infrastructure projects to ensure water is available when and where it’s needed. As in past years, the Water Authority’s Operating Departments – including all agency staff and day-to-day work functions – account for about 7% of the budget. The approved budget for fiscal years 2024 and 2025 increases spending by those departments by 1%, or $1.5 million, compared to the current two-year budget.

Public water agencies do not make a profit; all revenues are invested in protecting and providing safe and reliable water.

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San Diego County Water Authority And its 24 Member Agencies

Water Authority Board Holds Public Hearing on 2024 Wholesale Water Rates

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June 15, 2023 – On June 22, the San Diego County Water Authority Board of Directors will hold a public hearing about proposed wholesale water rates for 2024, followed by votes on the rate proposal and the recommended budget for the next two fiscal years.

The Water Authority Board is seeking to manage cost increases created by extraordinary inflationary pressures and depressed water sales, while at the same time protecting ratepayers, ensuring water reliability, and maintaining the Water Authority’s strong credit ratings that reduce the life-cycle cost of infrastructure. Due to its long-term commitment to strategic financial management, the Water Authority has senior lien credit ratings of AAA from Standard & Poor’s, AA+ from Fitch ratings and Aa2 from Moody’s.

The public hearing is scheduled to start when the Administrative and Finance Committee meets at 9 a.m. June 22, at 4677 Overland Avenue in San Diego. The hearing will also be livestreamed at www.sdcwa.org/about-us/board-of-directors/meetings/. Public comments will be accepted in person; via Zoom at https://us06web.zoom.us/j/83333513511?pwd=SW9VU0NQaDd3aHlsMlN4ajluUkp4dz09#success with passcode 576222; or by phone at 669-444-9171 using meeting ID 833 3351 3511# and passcode *576222# as prompted.

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Helix Water District Awarded $10.3 Million Grant

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June 8, 2023 – California’s Department of Water Resources announced that it has awarded Helix Water District $10.3 million in grant funds for the district’s drought resilience and drinking water supply reliability project. Helix was one of 26 California agencies, and the only San Diego County agency, to receive a portion of the $217 million in grants awarded in this round of funding.

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