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San Diego County Water Authority Board Chair Jim Madaffer today sent a letter to the Metropolitan Water District of Southern California’s Board of Directors, settiing the stage for an equitable resolution of long-running rate cases. Photo: FourSquare/Creative Commons Madaffer's letter

Water Authority Board Chair Outlines Compromise Terms to Potentially End MWD Litigation

/in /by by WNN staff

San Diego County Water Authority Board Chair Jim Madaffer today sent a letter to the Metropolitan Water District of Southern California’s Board of Directors that lays out a potential compromise approach by both parties designed to end nearly a decade of litigation over MWD’s rates.

The letter includes specific, practical terms that respect both the Water Authority’s and MWD’s perspectives towards an equitable conclusion in coming weeks.

“Concluding all pending court cases is in the best interest of everyone involved, and it would allow us to begin a new era of collaboration on other important regional and state issues,” said Madaffer, who started his tenure as chair on Oct. 1. “I hope MWD will embrace this gesture of good faith to seek settlement, and that we can do so in an expeditious and fair manner.”

Madaffer’s letter builds on the commitment of his predecessor, prior Water Authority Board Chair Mark Muir, to seek an end to lawsuits that started in 2010 and involve billions of dollars of contested rates and charges.

The Water Authority won several significant items in two cases covering MWD’s rates for 2011-2014, including additional rights to approximately 100,000 acre-feet a year of MWD water, invalidation of an illegal contract clause that MWD used to deny support for local supply development projects, and damages and interest on tens of millions of dollars of unlawful Water Stewardship Rate charges by MWD. The courts allowed MWD to continue charging historic State Water Project costs in water transportation rates charged to the Water Authority.

Key terms outlined in Madaffer’s letter include:

  • Neither party should be expected to give up anything it won in court.
  • MWD would change the way it charges for delivering the Water Authority’s independent supplies from the Colorado River by adopting a fixed price and tying future price increases to an inflation index each January 1.
  • The Water Authority would drop pending claims challenging the legality of MWD’s Water Stewardship Rates that MWD charges on the purchase of MWD water supplies.
  • The Water Authority would accept $5 million in attorneys’ fees and costs, a substantial reduction from the $8.9 million the trial court awarded to the Water Authority.
  • MWD’s Board would approve a pending agreement to provide through its Local Resource Program funding for the Carlsbad Desalination Project, the City of San Diego’s Pure Water Project, the Padre Dam-East County Advanced Water Purification Project and other pending local supply project agreements.
  • The Water Authority would be granted a sub-account in MWD’s Colorado River Lake Mead Storage Project to store 200,000 acre-feet of eligible Water Authority supplies in Lake Mead, which would benefit both MWD and the Colorado Basin states.

The complete letter is posted here.

Background

 More than 20 years ago, the Water Authority and its member agencies began improving the San Diego region’s water supply reliability by lessening reliance on MWD, which at the time supplied about 95 percent of all the water used in San Diego County.

The cornerstone of that diversification strategy is a set of agreements known collectively as the Colorado River Quantification Settlement Agreement, which was signed in 2003 to secure independent water supplies for the Water Authority from the Colorado River. To deliver these supplies to San Diego County, the Water Authority must use pipelines operated by MWD because MWD owns the only large-scale conveyance facilities in Southern California for transporting water.

The Water Authority filed suit in 2010 seeking to invalidate MWD’s rates, and then filed additional suits in 2012, 2014, 2016 and 2018 because MWD kept adopting rates using the same methodology and flawed cost allocations. A series of court decisions have been issued in the 2010 and 2012 cases. The other cases have been stayed in Superior Court during the appellate process on the initial two lawsuits.

Additional information is available on the Water Authority website.

READ MORE:

San Diego Union Tribune: County water authority proposes sweeping legal settlement with Metropolitan Water District

Times of San Diego: Water Authority Offers to End Decade-Old Rate Dispute with Los Angeles

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Otay Water District Executes Successful Bond Sale

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Spring Valley, Calif. – On Oct. 11, the Otay Water District executed a successful bond sale that is expected to close on or about Nov. 1. The water revenue bond will fund $28 million of District’s capital projects during the next three years and will refinance $6.9 million of the District’s 1996 Variable Rate Demand Certificates of Participation (COPs) to a fixed rate of interest. By refinancing its 1996 Variable Rate COPs to a fixed rate, the District has eliminated the risk of increasing costs for customers due to rising interest rates.

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L.H. Woods working on one of its first projects for the Water Authority in 1960. Photo: Courtesy L.H. Woods

L.H. Woods & Sons Honored for 60 Years of Enhancing Region’s Aqueducts

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After 60 years of work upgrading the San Diego regional aqueduct system, Vista-based L.H. Woods & Sons, Inc. was honored by the San Diego County Water Authority’s Board of Directors upon completion of the company’s final project under local ownership for the Water Authority.

The Board formally marked the successful conclusion of the $28.6 million Lake Murray to Sweetwater Reservoir pipeline relining project at its September 27 meeting. L.H. Woods reinforced 4.3 miles of large-diameter pipeline to extend its service life by decades. At the meeting, the Board adopted a resolution honoring Woods for decades of unequaled service to the region’s 3.3 million residents and its $220 billion economy.

L.H. Woods works on the 2nd Aqueduct in 1972. Photo: Courtesy L.H. Woods

L.H. Woods works on the 2nd Aqueduct in 1972. Photo: Courtesy L.H. Woods

Since Woods’ first Water Authority project in 1959 to excavate the Second Aqueduct, three generations of Woods have worked on approximately 40 projects  for the agency. Work includes construction of several pipeline segments in the 1960s, 70s and 80s; construction of the North County Distribution Pipeline in the 1990s; emergency pipeline repairs near the San Diego River in 2008; and several pipeline relining projects in recent decades.

“Nothing is more important to our region’s economy and quality of life than ensuring our pipelines continue to deliver water without interruption – and no company has played a bigger role in that effort than Woods,” said Jim Madaffer, chair of the Water Authority’s Board. “Woods brings to each project an innovative spirit and an unwavering commitment to excellence that benefits every person in our region every single day.”

L.H. Woods played key role in Water Authority relining project

L.H. Woods working on its final project within the Water Authority's relining program in 2017. Photo: Courtesy L.H. Woods

L.H. Woods working on its final project within the Water Authority’s relining program in 2017. Photo: Courtesy L.H. Woods

In September 2017, Woods started construction on the La Mesa to Sweetwater relining project. Crews conducted most of the work underground and used 17 portals to access the 66-inch and 69-inch diameter prestressed concrete cylinder pipe. Woods deployed specialized installation equipment built specifically for the Water Authority’s aqueduct system to install steel pipeline liners.

Much of the construction was in public rights-of-way in La Mesa on Baltimore Drive (south of the Laport Street-El Paso Street intersection), Nebo Drive (to University Avenue), and Spring Street. Work did not close any streets, through it temporarily reduced lanes for traffic. All construction equipment has been removed, and all streets have been restored.

L.H. Woods working on one of many projects within the Water Authority's relining program in 2000. Photo: Courtesy L.H. Woods

L.H. Woods working on one of many projects within the Water Authority’s relining program in 2000. Photo: Courtesy L.H. Woods

As a certified small business, Woods participated in the Water Authority’s Small Contractor Outreach and Opportunities Program, which is designed to maximize participation by small businesses in the agency’s procurements. In June, the company was purchased by J.F. Shea Co., Inc., one of the largest and oldest privately held construction companies in the nation. Shea’s storied history includes work on the Golden Gate Bridge, Hoover Dam and the pipeline connecting the Claude “Bud” Lewis Carlsbad Desalination Plant to the Water Authority’s regional water distribution system.

With the completion of the La Mesa to Sweetwater relining project, the Water Authority has relined 45 of the 82 miles of pre-stressed concrete cylinder pipe in its system.

An L.H. Woods crew works on emergency repairs for the Water Authority in 2008. Photo: Courtesy L.H. Woods

An L.H. Woods crew works on emergency repairs for the Water Authority in 2008. Photo: Courtesy L.H. Woods

Pre-stressed concrete cylinder pipes were commonly installed between the early 1960s and the late 1980s in water distribution systems throughout the world. This combination of concrete and steel initially appeared to provide unparalleled inner pipe strength and be highly resistant to corrosion. However, pre-stressed concrete cylinder pipes have not been as reliable as predicted, and the Water Authority is proactively relining sections of that pipe to extend their service life by at least 75 years.

The Water Authority’s relining program is an important part of its Asset Management Program, which helps avoid pipeline failures by identifying potential risks before they cause problems. To date, the Asset Management Program has saved water ratepayers more than $200 million by prioritizing repairs, avoiding unnecessary work and maximizing the service life of the region’s 310 miles of large-diameter pipelines.

 

 

 

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Otay Water District Board Approves Overall Average Sewer Rate Decrease of Seven Percent for 2019

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Spring Valley, Calif. – At its Oct. 3 meeting, the Otay Water District Board approved an overall average sewer rate decrease of seven percent for 2019. The rate decrease will take effect with sewer service billed on or after January 1, 2019, and may apply to sewer service used as early as the beginning of December 2018.

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Water Authority, NASSCO & EDC Celebrate Manufacturing Day

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General Dynamics NASSCO – one of the San Diego region’s largest employers – hosted Water Authority Board Chair Jim Madaffer and Jesse Gipe,  senior economic development manager for the San Diego Regional Economic Development Corp.,  for national Manufacturing Day on Oct. 5 as part of a partnership to promote the importance of a safe and reliable water supply to sustain the local economy.  The partnership was forged during the Water Authority’s Brought to You by Water outreach and education program, which includes stakeholders from key industry sectors such as tourism, manufacturing, brewing and agriculture.

See video of Madaffer’s onsite tour here.

 

Water Authority Board Chair Jim Madaffer provided the keynote address at the 2018 North County Water Symposium. Photo: Water Authority

North County Water Symposium Highlights Efforts to Ensure Reliability

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Escondido — The 2018 North County Water Symposium on Wednesday highlighted efforts by the San Diego County Water Authority to ensure regional water reliability for a crowd of about 100 North County business and industry leaders.

Keynote speaker Jim Madaffer, the Water Authority’s newly elected board Chair, reviewed the Water Authority’s historic achievements in water supply diversification. He also discussed continued regional development of water recycling capacity and investments in technology to maintain billions of dollars worth of water infrastructure.

“As the Water Authority approaches our 75th year,” said Madaffer, “we are doing everything we can …  to make sure that we have a resilient water supply for the region.”

The symposium was organized by the San Diego North Economic Development Council. It featured a panel discussion on water supply and reliability for San Diego North County, with a focus on agriculture and housing. Panelists were Greg Thomas, general manager of Rincon del Diablo Municipal Water District; Cari Dale, water utilities director for the City of Oceanside; Eric Larson, executive director of the San Diego County Farm Bureau; and Michael McSweeney, senior public policy advisor for the San Diego Building Industry Association.

Larson highlighted efforts by farmers to increase water-use efficiency and advance recycled water use to support their multi-billion dollar industry. McSweeney said the building industry improves water efficiency when it replaces decades-old homes with new homes that use less water and less energy thanks to modern technologies.

Larson and Thomas say their respective industries share a similar challenge. Larson said fewer young adults today choose farming careers. Thomas expressed the same concerns about the water industry. “There is so much emphasis among high school students on going to college, we aren’t training enough water technology employees” to replace a “silver tsunami” of retiring Baby Boomers, he said.

Madaffer and the panelists agreed that continued dialogue and coordinated efforts among the North County region’s leaders across all economic sectors can drive economic growth while ensuring water efficiency and reliability.

NOAA's three month weather outlook predicting the amount of rainfall across the U.S. Map: NOAA.gov

Water Supplies Sufficient for 2019 Demands Despite Hot, Dry Weather

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At the start of the 2019 water year, the combination of diversified water supplies and water-use efficiency means the San Diego region has enough water for 2019 and the foreseeable future despite historically low rainfall over the past 12 months.

“It has been very hot and dry, but we have invested wisely in infrastructure and regional water-use remains well below where it was at the start of the last drought,” said Jeff Stephenson, a principal water resources specialist with the Water Authority. “In fact, potable water use over the past three-plus years was 17 percent below 2013, which shows that San Diego continues to live WaterSmart.”

Still, said Stephenson, “we are looking for a wet winter locally, and in the Sierra and Rocky Mountains, to help replenish reserves for future years.”

Water managers use “water years” that run from October 1 through September 30 to track rain and snow. Local rainfall during water year 2018 totaled just over 3 inches at Lindbergh Field – 67 percent below normal and the second-lowest in San Diego history dating back to 1850.

In addition, local temperatures have been significantly above normal for most of the past five years. In many of those months, the average daily maximum temperatures were more than 4 degrees above long-term averages.

Forecasts predict continued warm weather conditions through December

The National Weather Service’s Climate Prediction Center forecasts continued warm conditions for California through December, with a 33 percent probability of above-normal precipitation locally. The U.S. Drought Monitor’s classification of San Diego County as an area of “Severe Drought” is based on weather factors – but it does not reflect water supply conditions.

More than $3.5 billion in regional water investments by San Diego County ratepayers over the past three decades mean water supplies will meet demands regardless of the weather.

New supplies and infrastructure upgrades include the Claude “Bud” Lewis Carlsbad Desalination Plant, which delivers approximately 50 million gallons of potable water per day for regional use, along with a ramp-up of water delivered to San Diego County as part of a long-term water conservation and transfer deal signed in 2003.

Other regional assets include the storage of 100,000 acre-feet of water behind the raised San Vicente Dam due to conservation efforts during the last drought. In addition, many key reservoirs statewide, including Diamond Valley Lake in Riverside County, remain near average levels for this time of year. Significantly, no shortages are expected on the Colorado River system in 2019, though long-term drought conditions continue to be a concern across the Southwestern U.S.

The Water Authority offers several programs, including a Landscape Transformation program rebate, to promote water-use efficiency. Residents and business can also attend free sustainable landscaping classes, and access online videos and tips. To learn more about those resources and others, go to WaterSmartSD.org.

Selling the land to a conservancy ensures the popular Sandia Creek hiking trails will remain preserved and open to the public forever. Photo: FPUD Fallbrook Hiking Destination

Popular Fallbrook Hiking Destination Preserved by FPUD Deal

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Fallbrook, Calif. – The parking lot at the Sandia Creek trailhead was supposed to be 150 feet under water, if everything had gone as planned.

The land was supposed to be flooded and turned into a dam. That would have made for some beautiful lakefront property in Fallbrook.

But things didn’t quite turn out as planned back in the 1960s when Fallbrook Public Utility District purchased 1,384 acres of rural property there.

The intent was to dam the Santa Margarita River and share the water with Marine Corps Base Camp Pendleton.

But many things got in the way of that plan. War happened. Leadership faces changed. There was lack of urgency and funding. Legal issues over water rights ensued. And environmental interests began to grow with the Endangered Species Act and the Clean Water Act.

Since that time, the property has remained untouched and more than 18 miles of hiking trails have developed. Those trails have become a cornerstone in Fallbrook, attracting up to 80,000 hikers and horseback riders each year.

Earlier this year, FPUD agreed to sell the land to Wildlands Conservancy for $10 million. The two entities are currently in escrow.

Why sell to a conservancy, not a developer for more money?

Assemblymember Marie Waldron presented the district’s board of directors with a certificate of recognition for successfully preserving the land. She also presented the Wildlands Conservancy and the Fallbrook Trails council with certificates. Photo: FPUD

Assemblymember Marie Waldron presented the district’s board of directors with a certificate of recognition for successfully preserving the land. She also presented the Wildlands Conservancy and the Fallbrook Trails council with certificates. Photo: FPUD

Selling the land to a conservancy ensures the popular Fallbrook hiking destination will remain preserved and open to the public forever, something the FPUD board of directors insisted upon before agreeing to sell the land. Thanks to a carefully crafted sales and legal agreement, the land can never be turned into a housing development or anything other than the trails.

“We all worked so hard on this for so long and we are so happy and proud these trails will remain open indefinitely,” said Al Gebhart, FPUD board president.

This money, along with construction of the Santa Margarita River Conjunctive Use Project, will help mitigate long-term water costs. The Conjunctive Use Project is a local water project 66 years in the making. Once built, it will provide about a third of FPUD’s water.

Having local water will help stabilize the cost of water for customers. The local water will be less expensive than buying imported water, which travels over 400 miles to get to Fallbrook, and continues to rise in cost each year. Currently, FPUD buys 100 percent imported water. Over time, the project will provide rate relief to FPUD customers.

Staying in charge of the hiking trails

The all-volunteer Fallbrook Trails Council has been maintaining the hiking trails for the past 20 years and will continue to maintain and oversee them once escrow closes. FPUD and Wildlands expect escrow to close by the end of the year.

Wildlands will have a dedicated full-time staff person. Zach Kantor-Anaya will be the manager of the trails preserve. Wildlands Conservancy maintains California’s largest nonprofit preserve system, emphasizing education and recreational use of conservation land.

 

The Claude “Bud” Lewis Carlsbad Desalination Plant, the nation’s largest seawater desalination plant. Photo: Water Authority water issues

Progress on Critical Water Issues

/in /by by Mark Muir Mentioned: San Diego County Water Authority

When I started my term as board chair of the San Diego County Water Authority in October 2016, California was mired in drought but the San Diego region had sufficient supplies regardless of the weather.

Thankfully, just a few months later, epic rain and snow significantly improved water supply conditions statewide, but not before validating our long-term strategy to develop a drought-resilient portfolio of water resources that protect the region during dry times. In fact, we had enough water to store 100,000 acre-feet of water for the future – a testament to regional foresight, coordination, hard work and investments by ratepayers.

Being able to assure residents and businesses that we had sufficient supplies to sustain our economy and quality of life was the biggest accomplishment of my two-year term as chair, which came to an end on September 30.

Several other highlights come to mind:

  • We marked the first and second anniversaries of the Claude “Bud” Lewis Carlsbad Desalination Plant, the nation’s largest seawater desalination plant. During the most recent drought, the plant helped the San Diego region pass the state’s stringent water supply stress test, and in 2017 it was named the Membrane Facility of the Year by the American Membrane Technology Association and the American Water Works Association.
  • Also in 2017, the water authority was recognized by the nation’s largest statewide coalition of water agencies for innovation and excellence in water resources management with its addition of supplies from the Carlsbad Desalination Project. The 2017 Clair A. Hill Water Agency Award for Excellence was presented at the Association of California Water Agencies’ Spring Conference in Monterey.
  • Our $1.5 billion Emergency & Carryover Storage Project, built to protect the region from droughts and catastrophic disruptions to imported water supplies, was awarded the engineering industry’s most prestigious global honor in 2017 – the Outstanding Civil Engineering Achievement Award from the American Society of Civil Engineers.

Read more of the column as originally published by the Pomerado News here.

San Diego County Water Authority Logo Stacked Tagline

Water Authority Wins 2018 WaterSense Excellence Award

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The U.S. Environmental Protection Agency today recognized the San Diego County Water Authority with a 2018 WaterSense Excellence Award for advancing water efficiency through its Qualified Water Efficient Landscaper (QWEL) program. The Water Authority received one of 21 WaterSense awards presented at the WaterSmart Innovations Conference in Las Vegas.

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