Encinitas, Calif. — Olivenhain Municipal Water District’s Board of Directors accepted at its March 17 meeting the Government Finance Officers Association’s Distinguished Budget Presentation Award. The award was presented in recognition of OMWD’s budget for Fiscal Years 2021 and 2022. This is the nineteenth consecutive year OMWD has received this recognition.
All three major rating agencies – S&P, Moody’s, and Fitch – have affirmed the San Diego County Water Authority’s strong credit ratings, which will help the Water Authority optimize its debt portfolio and minimize the cost of financing important water reliability projects.
The reports cited the Water Authority’s strategic management, its conservative approach to water sales projections, and the benefits of the Water Authority’s rate case litigation that recently resulted in $44.4 million being refunded to local retail water agencies – among many other factors.
However, rating agencies also noted significant challenges ahead, including efforts by Fallbrook Public Utility District and the Rainbow Municipal Water District to “detach” from the Water Authority – a move that could negatively impact ratepayers across San Diego County. If the two North County agencies leave per their plans, Water Authority analysis shows that the other 22 member agencies will have to pay $16 million to $46 million more per year to cover the cost of the departing agencies.
Moody’s said detachment could lead to a credit downgrade, which would increase borrowing costs for critical water reliability projects. S&P Global called detachment uncertainty “an additional credit stressor” – “especially if an approved detachment sets a precedent if members can easily detach from the authority.” S&P added that, “this would be further exacerbated if the two members are not required to pay for their portion of the associated debt and infrastructure costs that the authority has undertaken to provide reliable water sources.”
Water Authority General Manager Sandra L. Kerl said, “The Water Authority maintains a solid financial position even in these difficult times, and the credit ratings reflect that. But the challenges are real as well, and they should unify the region to ensure that we continue to benefit from the safe, reliable water supplies we’ve invested in together for the past 30 years.”
In affirming their credit ratings, the 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.
All three agencies addressed risks, such as additional local supplies that reduce Water Authority sales and member agency detachment. As proposed by Fallbrook and Rainbow, the detachments would allow those agencies to avoid paying for water supplies and infrastructure that have been developed in collaboration with those agencies and are currently being used by those agencies to meet their customers’ needs. Abandoning those cost obligations would force other ratepayers countywide to cover their portion of the bills already incurred for decades of investments in supply reliability.
In May 2020, the Water Authority’s Board of Directors voted to oppose detachment unless four conditions can be met related to protecting Fallbrook and Rainbow ratepayers, avoiding negative impacts for other member agencies, protecting the Sacramento-San Joaquin Bay-Delta, and maintaining the Water Authority’s voting rights at MWD.
The issue is under review by the San Diego Local Agency Formation Commission, known as LAFCO. The LAFCO process, which is designed to provide for an impartial analysis of these issues, will allow the Water Authority and all other affected parties to determine if these conditions are satisfied. If not, the Water Authority will oppose detachment.
For more information about the Water Authority’s finances go to: www.sdcwa.org/finance-investor-relations. Information about detachment is at https://www.sdcwa.org/member-agencies/lafco-reorganization/.
March 17, 2021 – All three major rating agencies – S&P, Moody’s, and Fitch – have affirmed the San Diego County Water Authority’s strong credit ratings, which will help the Water Authority optimize its debt portfolio and minimize the cost of financing important water reliability projects. The reports cited the Water Authority’s strategic management, its conservative approach to water sales projections, and the benefits of the Water Authority’s rate case litigation that recently resulted in $44.4 million being refunded to local retail water agencies – among many other factors.
Encinitas, Calif. — Olivenhain Municipal Water District invites residents with water-efficient gardens to enter the 2021 WaterSmart Landscape Contest. The winning landscape will receive $250. The deadline to apply is May 14, and applications are available at www.landscapecontest.com.
Encinitas, Calif. — To encourage water conservation and reduce runoff that can carry pollutants into local waterways and beaches, Olivenhain Municipal Water District has partnered with neighboring water districts—San Dieguito Water District, Santa Fe Irrigation District, and Carlsbad Municipal Water District—to offer discounted rain barrels to area residents.
For decades, it was a source of drinking water for the San Marcos area. Today, the South Lake Reservoir has new life as a local wildlife habitat.
South Lake was built with an earthen dam and provided drinking water to the Lake San Marcos area, most of downtown San Marcos, and the Coronado Hills area. Updates to potable water treatment had detrimental effects on the lake ecology, so the Vallecitos Water District stopped using the lake as a drinking water source in 1984, although it remained an emergency water supply for another decade.
South Lake Reservoir is home to freshwater fish and abundant aquatic plant life, waterfowl, quail, doves, deer, rabbits, raccoons, skunks, squirrels, bobcats, and coyotes. Photo: Vallecitos Water District
Now, South Lake provides a thriving ecosystem within and around the facility. The lake is home to freshwater fish and abundant aquatic plant life. Waterfowl such as coots, gallinules, grebes, various species of ducks, and cormorants frequent the lake throughout the year. The property is filled with quail, doves, deer, rabbits, raccoons, skunks, squirrels, bobcats, and coyotes.
Vallecitos Water District staff recently surveyed the area to look for animal tracks and other signs of wildlife, and to catalog plant and animal species.
Certified California naturalists Paige DeCino and Karen Merrill from Preserve Calavera assisted Vallecitos public information representative Alicia Yerman, who is also a certified naturalist. The team spent three days exploring the lake and the 1.4-mile trail. Merrill and DeCino host the volunteer UC Naturalist certification program. The program is currently on hold due to the coronavirus pandemic.
Wildlife cameras at South Lake Reservoir captured this visiting bobcat at night. Photo: Vallecitos Water District
Two wildlife cameras were set up at South Lake to capture wildlife activity over a two-week period. Lisa Urabe, a University of California trained Master Gardener and Vallecitos public information representative, asked the Buena Vista Audubon Society to conduct a bird survey. The BVAS volunteers identified 36 species in mid-February and created a YouTube video showcasing some of the species.
BVAS volunteers were enthusiastic about surveying the birds in an area set aside as wildlife habitat. With increased habitat fragmentation, BVAS hopes the area will remain primarily an area for wildlife.
Buena Vista Audubon Society volunteers including Karen Merrill andd Paige DeCino identified 36 species in mid-February and created a YouTube video showing some of species. Photo: Vallecitos Water District
“What you have at South Lake is a gem of the healthy functioning habitat— flora, fauna, and it is just a complete picture of what we hope our open spaces and natural lands to be,” said Karen Merrill. “It is something we should treasure now and into the future. It is one of a kind here on coastal San Diego County.”
Vallecitos employees take pride in the lake and its surrounding ecosystem and strive to keep the habitat intact for generations to come.
Vallecitos Water District staff, including water distribution operator Marcelino Sanchez, help maintain the lake and habitat. Photo: Vallecitos Water District
In addition to its value as local wildlife habitat, South Lake is available for fire suppression. Firefighting helicopters can pull water from the lake during wildfire events. The lake may be used as part of the City of San Marcos’ park system in the future.
Water quality within South Lake is monitored daily by water distribution operators, and the condition of the dam’s integrity is recorded weekly. Recently, an environmentally-sound ultrasonic technology made by LG Sonic was placed on the lake to reduce algae blooms and to improve water quality.
The San Diego County Water Authority’s draft 2020 Urban Water Management Plan was released for public review today. 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 sufficient water supplies through the 2045 planning horizon — even during multiple dry years.
A 60-day public comment period on the draft plan ends May 6 and will include a public hearing on March 25. The Board of Directors is expected to consider adoption of the final plan during its regular meeting on May 27. The 2020 UWMP is due to the state by July 1, 2021. To read the draft 2020 Urban Water Management Plan, or to submit comments, go to http://bit.ly/Water-Authority-UWMP.
“Thanks to decades of regional investments, the draft plan shows that we don’t need to secure more regional supply sources for the foreseeable future,” said Water Authority General Manager Sandra L. Kerl. “Instead, we are focused on helping our member agencies develop local supplies and looking for other ways we can continue to ensure supply reliability at a reasonable cost.”
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 draft plan as part of the Water Authority’s ongoing effort to align local and regional projections as closely as possible. 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, 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.
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:
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.
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 60% between fiscal years 1990 and 2019.
The draft 2020 Urban Water Management Plan shows how regional investments by the San Diego County Water Authority in a “water portfolio approach” mean that San Diego County will continue to have sufficient supplies, including locally-controlled drinking water from the Claude “Bud” Lewis Carlsbad Desalination Plant, the largest, most technologically-advanced and energy efficient desalination plant in the nation. Photo: San Diego County Water Authority
The draft 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.
The draft 2020 Urban Water Management Plan highlights the value of the Water Authority’s long-term strategy to invest in highly reliable supplies, including the nation’s largest conservation-and-transfer agreement, which provides high-priority, low-cost water from the Colorado River. Photo: San Diego County Water Authority
March 8, 2021 – The San Diego County Water Authority’s draft 2020 Urban Water Management Plan was released for public review today. 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 sufficient water supplies through the 2045 planning horizon — even during multiple dry years.
Encinitas, Calif. — Fourth-grade students living or attending school in Olivenhain Municipal Water District’s service area are invited to enter its 28th annual poster contest. The contest is held in participation with other North County water agencies, and will accept entries until April 5. This year’s theme is “Love Water, Save Water.”
As part of his efforts to create a more sustainable future for all of us, Mayor Todd Gloria today publicly released a new analysis of San Diego’s future water needs that indicates that the City will develop more than 50% of its water locally by 2045, in large part due to the Pure Water recycling program. This will be a dramatic increase in local water supply, which currently requires the City to purchase 85% to 90% of its water from imported sources.
