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Olivenhain Municipal Water District Continues to Expand Recycled Water Use 

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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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San Diego Local Water Supply Projects Get Big Funding Boost

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Two major water projects in San Diego County this week received a major financial boost to enhance the region’s water supply. The East County Advanced Water Purification Project was approved for up to $91.8 million and a project in the City of Escondido was approved for up to $23.4 million.

The San Diego County Water Authority has helped secure nearly $470 million for local supply projects in the past several months in collaboration with member agencies, including the total of $115 million for the East County and City of Escondido projects. Both projects will increase local water supply reliability and reduce future demands on imported water supplies.

Collaboration on water supply projects

On Tuesday, the Metropolitan Water District of Southern California’s Board of Directors approved entering into funding agreements from its Local Resources Program for both projects. The Water Authority and its member agencies are able to participate in the Local Resources Program after a final court ruling found MWD had illegally barred the Water Authority from receiving money from MWD’s local water supply program, even though the Water Authority was forced to pay for it.

“Kudos to our member agencies for their strong applications and to MWD’s Board of Directors for approving them,” said Water Authority Board Chair Jim Madaffer. “It is an affirmation of our ongoing efforts to collaborate with MWD and to address shared challenges.”

Potable reuse project in East San Diego County

The East County AWP will be one of the first potable reuse projects in California to use new reservoir augmentation regulations. The program will meet up to 30% of East County’s drinking water demands, almost 13,000 acre-feet of water per year, and eliminate the discharge of 15 million gallons of partially treated wastewater into the Pacific Ocean.

The AWP uses four advanced water purification steps to produce water that is near-distilled in quality. After treatment, purified water will be blended with water in Lake Jennings and treated again at the R.M. Levy Water Treatment Plant before being distributed as drinking water.

This program is a collaborative partnership between Padre Dam Municipal Water District, the County of San Diego, the City of El Cajon and Helix Water District.

Advanced water recycling in Escondido

The Membrane Filtration Reverse Osmosis Facility in Escondido would provide up to 3,280 acre-feet per year of advanced treated recycled water to irrigate farms.

The project includes the construction of an advanced recycled water treatment facility with microfiltration and reverse osmosis, new pipelines, and a storage and blending tank to convey water for agricultural irrigation. Source water for the project is treated recycled water from the Hale Avenue Resource Recovery Facility. Escondido will own and operate the project and plans to deliver water by 2023.

Regional water supply projects reduce reliance on imported water

In the past several months, the Water Authority has helped member agencies secure three other Local Resources Program agreements to fund water supply projects that increase local supply and reduce reliance on imported water. Those projects are:

  • $23.6 million for the Fallbrook Public Utilities District’s Fallbrook Groundwater Desalter Project
  • $42.7 million for the City of Oceanside Pure Water & Recycled Water Expansion Phase I Project
  • $285.6 million for the City of San Diego’s Pure Water North City Project
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Helix Water District’s Demonstration Landscape is Complete

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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

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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

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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.

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Pipelines Assessed in Record Time with Latest Technology

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The San Diego County Water Authority’s asset management team recently celebrated the completion of a comprehensive condition assessment of more than 27 miles of the agency’s oldest pipelines. The assessment was performed in record time over just 16 months.

The work was part of a package of rehabilitative efforts on a portion of the First Aqueduct, which includes Pipelines 1 and 2 in North San Diego County. Built in 1947 and 1952, the two pipelines deliver treated water to the region and were constructed using various materials, including reinforced concrete and steel.

Proactive asset management team makes critical repairs

As the pipelines were inspected, areas that required immediate attention were identified and repaired, thereby minimizing future disruptions to water service and impacts to the surrounding environment. Sections of the pipelines requiring future repairs were added to a list of upcoming projects prioritized by the risks and associated costs.

“The asset management team took advantage of scheduled pipeline shutdowns, and with careful coordination, assessment work was performed concurrently with other major rehabilitation efforts in the region,” said Martin Coghill, operations and maintenance manager at the Water Authority. “This innovative approach saved time and avoided unnecessary disruptions in service to our member agencies.”

Throughout the condition assessment process, Water Authority staff worked closely with staff from member agencies to coordinate work being performed in their service areas and any potential impacts. Proactive repairs are crucial to ensuring the reliability of the regional water supply.

Collaboration with multiple contractors to perform complex work

In 2016, a search was conducted to find the best technologies to perform critical assessments to maintain the reliability of the pipelines. It resulted in a multi-technology, multi-contract approach.

The Water Authority partnered with multiple contractors to perform the complex work:

  • Diakont, based in Carlsbad, Calif., used its robotically-mounted technologies to inspect steel pipe sections. High-resolution LASER Profilometry and Electromagnetic Acoustic Transfer technology located internal and external corrosion defects that were then repaired by welding steel patches on the inside of the pipe. This method avoided costly excavations and environmental impacts.
  • Pipeline Inspection and Condition Analysis Corp., based in Edmonton, Alberta, brought its sophisticated Remote Field Technology to San Diego County to scan most of the reinforced concrete pipe using an innovative tool that moved through the pipe at a controlled speed. The technology had been previously used by the Water Authority and consistently demonstrated a high level of accuracy.
PICA, remote field technology, pipeline inspection

PICA uses cutting-edge Remote Field Technology to scan pipelines at a controlled speed with high accuracy. Photo: San Diego County Water Authority

  • Pure Technologies, a Xylem company with an office in San Diego, deployed its Near Field and Remote Field electromagnetic inspection tools to assess portions of the reinforced concrete pipe. With a focus on lightweight components, both tools were successfully conveyed through the pipelines using personnel with rope and pulley support.
technology, pipeline inspection, Pure Technologies

Pure Technologies’ innovative tool uses electromagnetic technology to assess reinforced concrete pipelines using personnel with rope and pulley support. Photo: San Diego County Water Authority

The focus on the Water Authority’s First Aqueduct is the latest chapter in the agency’s long-running strategy to assess critical pipelines and ensure the maximum lifespan is achieved with the most cost-effective methods. Proactive asset management efforts first began in the 1990s and were consolidated into the Asset Management Program in 2009. To date, more than 150 miles of the Water Authority’s total 310 miles of large-diameter pipelines have been assessed using cutting-edge technologies.

The asset management team collaborates with local, national and international organizations in the asset management and water infrastructure fields, focusing on knowledge sharing and asset life optimization.

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Strong Water Authority Credit Saves $67.4 Million for Ratepayers

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Strong credit ratings for the San Diego County Water Authority will save water ratepayers across the region $67.4 million on bond sales executed Wednesday in New York — $27 million more than staff forecasted in May. All three major rating agencies – S&P, Moody’s and Fitch – recently affirmed the Water Authority’s positive ratings and stable outlook, creating the opportunity for ratepayers to benefit from lower financing costs for critical water infrastructure.

The savings resulted from the Water Authority’s refinancing of $283.5 million in Series 2020A Bonds (Green Bonds) and $117.7 million in Series 2021A (Green Bonds) senior-lien water revenue refunding bonds. Technical factors in the market provided favorable conditions – including more demand for bonds than supply – that the Water Authority team moved quickly to capture.

Most significant savings in bond refundings in the past decade

The Water Authority bonds were priced July 8 – a week ahead of schedule – and the strong credit ratings, strong bond policies, and swift action by the Board of Directors in June, helped lower the interest rates compared to what the Water Authority would have had to pay with downgraded credit. Since 2010, the Water Authority has saved a total of $235 million through 10 bond refundings, including the latest transactions.

“Thanks to strategic, courageous action by the Water Authority Board of Directors in June to set rates for 2021, the agency has secured the most significant savings from bond refundings in the past decade,” said Water Authority Board Chair Jim Madaffer. “The Water Authority maintains a strong financial position even in these difficult times, and that ultimately benefits everyone who calls San Diego County home.”

Credit ratings: Strong financial leadership, prudent strategies

In affirming their credit ratings over the past few weeks, the three rating services cited the Water Authority’s strong financial leadership, including prudent strategies to manage issues related to COVID-19, its success diversifying water supply sources, its commitment to infrastructure maintenance, and its financial reserves for managing contingencies, among other factors.

‘Investments in water supply diversification, conservative financial practices’

  • S&P affirmed its highest rating – AAA– June 25. “The authority has been successful in their efforts to increase control over their supply and diversify the source of their supply. Management has also demonstrated an ability to navigate volatile hydrological cycles through adopting rate increases as needed and building prudent financial reserves and storage to mitigate variability.”
  • Fitch Ratings affirmed its AA+ rating July 2. The Water Authority’s “significant investments in supply diversification, have allowed the Authority to continue to meet water demands in its service area.” Fitch also said “the SDCWA benefits from very strong purchaser credit quality.”
  • Moody’s Investor Service affirmed its Aa2 rating June 29. Moody’s praised the Water Authority “for increasingly diverse sources for water supply purchases; and conservative financial practices with adopted reserve and debt policies.” Moody’s also said that “liquidity, including a rate stabilization fund, remains satisfactory and serves to insulate the San Diego County Water Authority from risks associated with variable water supplies, including California’s current drought conditions, as well as unanticipated events such as the coronavirus crisis. The stable outlook reflects our expectation that the Authority’s favorable operating performance will continue.”

“In the midst of a global pandemic and a challenging economy, the Water Authority continues proactively managing its finances and lowering the cost of debt,” said Lisa Marie Harris, finance director for the Water Authority. “We have strong debt coverage, healthy reserves and an experienced management team to sustain our fiscal health.”

For more information about the Water Authority’s finances go to: www.sdcwa.org/finance-investor-relations.

Series 2020A – Taxable Refunding

Issue Size: $283,470,000

Bond maturities: 2024-2034

Bond yields: .59% – 1.95%

Refunding savings: $38.7 million

Savings as % of refunded bond par: 15.3% (board min savings 2-5%)

Top Investors: Progressive, Morgan Stanley, Goldman Sachs, and State Farm

Series 2021A –Tax-Exempt Refunding (Forward Delivery)

Issue Size: $117,690,000

Bond maturities: 2022 – 2031

Bond yields: .45% – 1.13%

Refunding savings: $28.7 million

Savings as % of refunded bond par: 19.7% (Board Min savings 2-5%)

Top Investors: Vanguard, Alliance Bernstein, Seix Investors, and MIZUHO Bank

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State Awards $15 Million for San Diego Regional Water Projects

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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.

The San Diego County Water Authority submitted the funding request on behalf of the San Diego Integrated Regional Water Management Program, or IRWM. The San Diego IRWM Program began in 2005 as an effort by water agencies, wastewater agencies, stormwater and flood managers, watershed groups, business leaders, disadvantaged communities, tribes, agriculture, and nonprofit stakeholders to improve water resources planning in the region.

The statewide IRWM Program is supported by bond funding from the California Department of Water Resources to fund competitive grants for projects that improve water resources management.

Collaboration with county agencies, nonprofits improves water supply and conservation

“These grants will provide much-needed funding for important local water supply projects and water-use efficiency measures, along with a disadvantaged community project in National City,” said Water Authority Board Chair Jim Madaffer. “Regional collaboration by the Water Authority and a host of partners makes these projects possible. Once again, this shows how San Diego County is stronger together.”

Madaffer praised the San Diego IRWM Regional Water Management Group and the Regional Advisory Committee for their work over the past year to secure the $15,336,336 grant. Since 2008, the San Diego region has secured more than $111 million in funds for 74 high-priority water management projects through the IRWM process. The projects help to achieve goals established in the San Diego IRWM Program and the Water Authority’s Urban Water Management Plan.

The following regional water projects will receive funding in the current round:

  • Paradise Valley Creek Water Quality and Community Enhancement, City of National City, Flood Damage Reduction, $3,681,056
  • Pure Water Oceanside, City of Oceanside, Water Supply–Groundwater, $3,115,000
  • North County Recycled Water Project, San Elijo Joint Powers Authority, Water Supply–Recycled Water, $2,820,000
  • North City Pure Water Facility Influent Pump Station and Conveyance Pipeline, City of San Diego, Water Supply–Recycled Water, $1,477,600
  • 2020 Regional Water-Use Efficiency Programs, San Diego County Water Authority, Water Conservation, $1,440,000
  • San Elijo Stormwater Capture & Reuse, San Elijo Joint Powers Authority, Water Supply–Recycled Water, $1,195,000
  • Lower Santa Margarita River Indirect Potable Reuse Pilot Project, Fallbrook Public Utility District, Water Supply–Recycled Water, $687,500

In addition, the grant allocates $920,180 to the Water Authority to administer the grant.

National City-IRWM Grants-Water Resilience

The Paradise Valley Creek Water Quality and Community Enhancement project in the City of National City is among water projects receiving state grant funds. Graphic: City of National City

Regional approach to create resilient and diverse water supply portfolio

“By working together for more than 12 years, the regional IRWM Program has created a legacy of collaboration by public agencies and nonprofit organizations in the region to increase the long-term reliability and resiliency of the San Diego region’s water supply and diversify our local supply,” said Mark Stadler, San Diego regional IRWM program administrator. “Investing in water reuse, water efficiency, and conservation projects are key parts of our success to ensure a regional approach to integrated watershed management.”

On November 4, 2014, California voters approved Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014. Proposition 1 authorized $510 million in IRWM funding. Funds are allocated to 12 hydrologic region-based funding areas.

The Proposition 1 IRWM Grant Program, administered by DWR, provides funding for projects that help meet the long-term water needs of the state, including:

  • Assisting water infrastructure systems adapt to climate change;
  • Providing incentives throughout each watershed to collaborate in managing the region’s water resources and setting regional priorities for water infrastructure; and
  • Improving regional water self-reliance, while reducing reliance on Sacramento-San Joaquin Delta.

“Water is such a vital resource, that it is critical we continue to take action to ensure communities have access to clean water supplies, reliable flood protection and healthy ecosystems.” said DWR Director Karla Nemeth when announcing the San Diego regional grant on July 3. “These grants will support agencies and projects to continue local momentum in creating a more diverse water supply portfolio, strengthening partnerships and addressing climate change.”

State Awards $15 Million for San Diego Regional Water Projects

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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

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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.

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