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Water Authority Congratulates MWD on Selection of New General Manager

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June 9, 2021 – “It is with great pleasure that I congratulate Chairwoman Gloria Gray and the MWD Board of Directors on the selection of Adel Hagekhalil to serve as the district’s next General Manager. Adel is exactly the kind of person and visionary leader Southern California needs, especially as we experience another period of sustained drought, to help guide MWD as it faces important near- and long-term planning decisions impacting its water supply resources and water rates and charges.

“In addition to his demonstrated skills as an agency manager and water policy leader, Adel brings to the MWD table a highly collaborative style of leadership and commitment to meet the unique needs of each of the district’s 26 member agencies. He is also committed to continuing his advocacy to address equity and environmental and social justice issues impacting Southern California’s underserved communities.

“Adel’s selection sends an important signal that Southern California is planning to rely more on sustainable local water supplies in the future, while not abandoning our commitment to the Bay-Delta and Colorado River. These include Water Authority agency projects such as San Diego’s Pure Water Project, the East County Water Purification Project, and Oceanside’s Pure Water Project.

“Importantly, Adel received strong support from employees who have worked for him, as well as from Los Angeles Mayor Eric Garcetti, the Los Angeles City Council, and other officials for whom he worked and to whom he reported. He is known by all to be an inclusive leader, a bridge-builder, and an advocate for the environment, social justice, and underserved communities. Numerous San Diego County elected officials, labor, business, and community groups joined in writing letters of support for Adel’s appointment.

“In short, Adel brings exactly the kind of experience and leadership we believe MWD needs at this time, and we look forward to continued collaboration with him.”

— Gary Croucher, Board Chair, San Diego County Water Authority

 Note: Hagekhalil is scheduled to meet with the Water Authority’s Board of Directors at its June 24 board meeting.

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Helix Water District Planning Document Reveals Sufficient Water Supplies

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Helix Water District Board of Directors just adopted its 2020 Urban Water Management Plan following a public hearing. The 2020 Urban Water Management Plan supports the district’s long-term planning efforts to ensure that it has enough water supplies to meet existing and future water needs.

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OMWD’s 4S Ranch Water Reclamation Facility Earns Statewide Plant of the Year Honors

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Encinitas, Calif. — Olivenhain Municipal Water District’s 4S Ranch Water Reclamation Facility was honored today by California Water Environment Association as its 2021 Plant of the Year (Small).

Presented during CWEA’s Virtual Conference and Expo, the award recognizes accomplishments with regard to regulatory compliance, innovative practices, employee development, cost-effectiveness, and other evidence of superior plant operations.

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EPA Funding Secured for East County Drinking Water Project

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In a major milestone for water reliability, the East County Advanced Water Purification Program was awarded a $388 million federal loan from the U.S. Environmental Protection Agency to help advance the project’s completion.

Radhika Fox, U.S. EPA Principal Deputy Assistant Administrator for the Office of Water, joined Kyle Swanson, Director of the East County AWP, and Steve Goble, Joint Powers Authority Chair of the East County AWP, for the June 4 announcement at the demonstration facility for the project in Santee. Following the presentation, Fox joined local officials for a tour of the demonstration facility.

“EPA is proud to partner on this project, which uses proven technology to bolster drinking water supplies in this climate-stressed region,” said Fox. “Investing in water infrastructure is one of the best bets we can make to improve public health and the environment, create jobs and address pressing challenges that face our communities.”

Radhika Fox (left), EPA Principal Deputy Assistant Administrator for Water, and Kyle Swanson, East County AWP Director. Photo: East County AWP EPA Funding

Radhika Fox (right), EPA Principal Deputy Assistant Administrator for Water, and Kyle Swanson, East County AWP Director. Photo: East County AWP

The East County AWP is one of only 38 projects selected nationwide to receive a share of approximately $6 billion in federal water infrastructure investments. The Water Infrastructure Finance and Innovation Act (WIFIA) loan is the second-largest loan awarded to any San Diego County project.

“The East County Advanced Water Purification Program is the result of many years of strategic, long-term planning and this WIFIA loan marks a historic milestone in its development,” said Allen Carlisle, CEO and general manager of Padre Dam Municipal Water District. “By providing East County with local control and independence of both its wastewater and water, the program secures a long-term solution for increased stability in our communities and safeguards the vitality of our economy and quality of life. We are grateful to the U.S. EPA for partnering with us on this important program and investing in future generations.”

New, local, sustainable water supply 

Radhika Fox of the EPA tours the East County Advanced Water Project Demonstration Facility in Santee. Photo: East County AWP EPA Funding

Radhika Fox of the EPA tours the East County Advanced Water Project Demonstration Facility in Santee. Photo: East County AWP

The East County AWP is a collaborative partnership between the Padre Dam Municipal Water District, Helix Water District, County of San Diego, and City of El Cajon. It will create a new, local, and sustainable drinking water supply using sophisticated technology to provide 30% of current drinking water demands for East County residents when it is completed in 2025, as much as 11.5 million gallons per day.

The project will recycle East San Diego County’s wastewater locally and purify the recycled water at a new treatment facility using four advanced water purification steps. The purified water will then be pumped into Lake Jennings, treated again at the Helix Levy Treatment Plant, and then distributed into the drinking water supply.

Padre Dam Municipal Water District currently imports 100% of its drinking water supply. The agency treats two million gallons per day at its water recycling facility for irrigation and non-potable uses. Helix Water District imports approximately 85% of its drinking water supply with the remaining coming from local sources.

In addition to providing a new local water supply, the project will eliminate the need to send most of East County’s wastewater to the City of San Diego’s Point Loma Wastewater Treatment Plant, where it is currently treated and then discharged into the ocean. Keeping this water resource in east county provides water sustainability and it’s good for the environment.

(Editor’s note: The Padre Dam Municipal Water District, Helix Water District, and the City of El Cajon are three of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)

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San Marcos Interceptor Project Ready for Phase 2 Summer Start 

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The San Marcos Interceptor Replacement Project remains on schedule, with Phases 1 and 1A completed according to the Vallecitos Water District. The project replaces the District’s 1960s era 21-inch diameter sewer interceptor with more than 12,000-feet of 42-inch diameter sewer pipeline between Twin Oaks Valley Road and Pacific Street.

The Interceptor is a large trunk sewer pipeline receiving and conveying wastewater by gravity to the Encina Wastewater Authority. In Phases 1 and 1A of the project between 2002 and 2014, portions behind the Creekside Marketplace from State Route 78 to Grand Avenue, from Twin Oaks Valley Road to east of Johnston Lane, from Grand Avenue to Via Vera Cruz, and east of Johnson Lane to the south side of State Route 78 were completed.

Phase 2 will complete the remaining 3,400-feet of the westernmost project corridor extending from Via Vera Cruz to Pacific Street. The project budget is $8.5 million. The completion of Phase 2 of the Interceptor project has been in the works for more than 30 years, with the project exchanging numerous hands in planning, design, and construction.

“This is a milestone project for the District both in size and significance,” said Ryan Morgan, capital facilities senior engineer.

State of the art construction technology

Microtunneling made it possible for the Vallecitos Water District to successfully complete the project in under a week with no damage to the existing utilities while also minimizing traffic impacts at San Marcos Boulevard and Pacific Street. Photo: Vallecitos Water District San Marcos Interceptor

Microtunneling made it possible for the Vallecitos Water District to successfully complete the project in under a week with no damage to the existing utilities while also minimizing traffic impacts at San Marcos Boulevard and Pacific Street. Photo: Vallecitos Water District

The project used state-of-the-art trenchless technology to install a 115-ft long tunnel under an existing concrete culvert under the Pacific Street and San Marcos Boulevard intersection. The 42-inch diameter fiberglass reinforced plastic Interceptor sewer was installed inside a 60-inch diameter steel casing pipe.

Using a process known as “microtunneling,” contractor TC Construction and sub-consultant JW Fowler used a MicroTunnel Boring Machine (MTBM) inside an excavation in the eastbound lanes of San Marcos Boulevard and be received in a smaller excavation in the westbound lanes of San Marcos Boulevard at Pacific Street.

The MTBM is larger than 60-inches in diameter to be large enough to bore through native soils, rock, and backfill along the Interceptor alignment. The new tunnel’s wall is pressurized internally using hydraulic fluids before the steel casing is permanently installed. The MTBM is remote-controlled by an operator on the surface and is laser-guided to ensure it stays within the designed horizontal and vertical alignment (line and grade).

The MTBM’s high level of accuracy makes it especially useful when a project needs to avoid conflicts with existing underground utility lines, including a 16-inch diameter high-pressure San Diego Gas & Electric gas line in this project. The microtunnel installation was a 24-hour, 7-day-a-week process.

The microtunnel allowed the District to “thread the needle,” and the tunnel was completed in under a week (plus setup). There was no damage to any of the existing utilities in San Marcos Boulevard, and traffic impacts were minimized.

Project completion nearing this summer

The San Marcos Interceptor project required special mitigating measures and biological monitoring for construction during bird nesting season between February 15 and September 15 along San Marcos Creek. Photo: Vallecitos Water District

The San Marcos Interceptor project required special mitigating measures and biological monitoring for construction during bird nesting season between February 15 and September 15 along San Marcos Creek. Photo: Vallecitos Water District

The Interceptor project required biological monitors and archeological monitors for work adjacent to San Marcos Creek or predetermined environmental sensitive areas. Special mitigation measures and biological monitoring were required for construction during bird nesting season between February 15 and September 15. Additionally, tribal paleological monitors from Native American tribes of significance in the area were represented during excavation work in the creek.

The final leg of the project will begin in the easements adjacent to the creek between Via Vera Cruz and McMahr. Construction completion is expected in June 2021.

This replacement project was originally identified in the District’s 1991 Master Plan and has been phased to be completed prior to City of San Marcos development of the Creek District.

(Editor’s note: The Vallecitos Water District is one of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)

Water Authority Board Approves 2020 Urban Water Management Plan

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May 27, 2021 – The San Diego County Water Authority Board of Directors today 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.

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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.

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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

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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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San Diego County Crops Supported by Water Rate Discount

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Alongside other cornerstone industries such as tourism and biotechnology, agriculture sustains the San Diego County’s economy with a farmgate value of nearly $2 billion a year, according to the most recent county assessment. Avocados – one of the county’s signature farm goods — account for $140 million of the farming total growth of 16% in 2019, county figures show.

And all the crops countywide are supported by reliable water supplied by the San Diego County Water Authority and its 24 member agencies, which have invested strategically over the past three decades to ensure water availability even during dry years. The Water Authority has also created a special ag water program that offers lower-cost water in return for lower reliability so that farmers can choose the level of service that works best for them.

“San Diego’s dynamic agricultural industry strengthens our region by employing thousands of people, contributing to the local economy, supporting the local food system and enhancing sustainability efforts,” said San Diego County Agricultural Commissioner Ha Dang. “All efforts to support our diverse agricultural economy are important, including water reliability and accessibility.”

San Diego County ag production is the combined result of more than 5,000 family farms – the most of any county in the United States. In fact, 69% of all San Diego County farms are smaller than nine acres. Innovative practices – including water-use efficiency measures – allow local farms to be productive by focusing on high-value crops such as ornamental trees and shrubs, bedding plants, cacti and succulents and indoor plants.

Agriculture directly employs 56,000 people in San Diego County, including the second-largest number of farms operated by women and the largest number of part-time farmers in the U.S. Along with avocados, San Diego County farmers rank first in the nation in production of nursery crops, and among the top five producers nationwide of lemons, limes, guavas, pomegranates, and macadamias.

Water Authority offers ag discount

In partnership with its member agencies, the Water Authority offers a Permanent Special Agricultural Water Rate Program to continue supporting commercial farms that are the economic engine of rural San Diego County.

In exchange for lower price water, participants in the ag water program agree to have lesser water service when the Metropolitan Water District of Southern California cuts supplies to San Diego County. It is similar to power companies offering lower rates to customers who agree to have their power service interrupted during peak demand periods. In turn, the Water Authority can reallocate those supplies as needed to commercial and residential customers who pay higher rates for full reliability benefits.

An important deadline for the ag water program is coming at the end of June, and farmers who want to take advantage of lower rates should contact their retail water agency for details.