This feature highlights water utility employees in the San Diego region working during the coronavirus pandemic to ensure a safe, reliable and plentiful water supply. The water industry is among the sectors that are classified as essential. Ron Lutge, City of Oceanside Chief Plant Operator, is the Water Utility Hero of the Week.
The San Diego County Water Authority board has trimmed a proposed 2021 rate increase by 30% because of concerns about the pandemic’s impact on the regional economy.
The board also directed staff to look for further opportunities to reduce the 2021 rate increase and provide recommendations by October before the new rates take effect Jan. 1.
Following a public hearing, the San Diego County Water Authority’s Board of Directors today adopted rate increases for 2021 that are 30% lower than proposed last month following a series of refinements by staff. In addition, the Board directed staff to return in September or October with any further opportunities to reduce the 2021 rate increases, such as a decrease in rates set by the Metropolitan Water District of Southern California or the acquisition of federal or state economic stimulus funds.
Editor’s Note: This feature highlights water utility employees in the San Diego region working during the coronavirus pandemic to ensure a safe, reliable and plentiful water supply. The water industry is among the sectors that are classified as essential. Ron Lutge, City of Oceanside Chief Plant Operator, is the Water Utility Hero of the Week.
I became interested in the water industry in a round-about way. After leaving the military, I found it difficult to find work that was both mentally stimulating and challenging. I was looking for something that would allow me to work at an operational tempo I was used to. I definitely wasn’t looking for anything easy or slowed paced. At the time I was working at the General Electric aircraft engine overhaul facility in Ontario. Unfortunately, that industry proved to be unstable and did not offer a promising career. While searching for something new, I found Oceanside had a couple of openings for office workers. Since I had some experience working with spreadsheets and databases, I was offered a position in the water department. I figured this would keep me employed while I looked for something different. I soon discovered there were many disciplines within the water industry. I soon began researching career options in the water industry. Inspiration came from the supervisor I was working for at the time. I sat down with him and asked what were the requirements necessary to become an operator. I also received encouragement from the operators I came in contact with on a daily basis. That’s all it took. After that, I hit the ground running and have never looked back. The water profession is honorable, rewarding, and has offered me everything I have been looking for in a career – just like the military – another opportunity to continue being of service to others. And isn’t that what we as water professionals are here for – to be of service?
My personal day-to-day routine hasn’t really changed; I’m always busy. However, given the current health crisis we are all in, it has made me keenly aware of just how important it is to ensure our team is being taken care of, staying safe and healthy, and doing everything we can to ensure our facility stays operational to provide water to the residents of Oceanside without interruption. Because we operate our facility 24 hours a day, coupled with having a very small staff, we cannot work from home or implement rotating or staggered shifts. Everyone has to be ready, prepared, and available to work.
By following the guidance recommended by health officials to limit exposure in public, at work and home: social distancing, face coverings, sanitizing, washing hands, etc. By practicing these simple protocols we keep each other safe and minimize ourselves or others getting sick.
A return to some semblance of normalcy – whatever that may be.
Following a public hearing, the San Diego County Water Authority’s Board of Directors today adopted rate increases for 2021 that are 30% lower than proposed last month following a series of refinements by staff. In addition, the Board directed staff to return in September or October with any further opportunities to reduce the 2021 rate increases, such as a decrease in rates set by the Metropolitan Water District of Southern California or the acquisition of federal or state economic stimulus funds.
As adopted June 25, the all-in rates charged to the Water Authority’s 24 member agencies will increase by 4.8% for untreated water and 4.9% for treated water in calendar year 2021. The new rates take effect January 1, 2021.
Rate increases are driven by reduced water sales, higher rates and charges from MWD and continued regional investments in supply reliability.
Since the staff’s rate proposal was released in May, the Water Authority re-evaluated several assumptions driven by COVID-19 recessionary pressures based on new economic data and forecasts. The Water Authority also funded some costs related to the Carlsbad Desalination Plant this year instead of in 2021. The 2021 rates and charges may be further reduced if MWD makes material changes when revisiting its budget and rates this fall.
“We’ve taken a series of strategic steps to minimize rate impacts during this pandemic-induced recession, despite numerous factors putting upward pressure on rates,” said Water Authority Board Chair Jim Madaffer. “At the same time, the Water Authority is maintaining its long-term fiscal stability while ensuring a safe and reliable regional water supply for residents and businesses that will be the foundation of our economic recovery.”
In 2021, the Water Authority will charge its 24 member agencies an all-in municipal and industrial rate of $1,474 per acre-foot for untreated water, or $68 more per acre-foot than they currently pay. Charges would be $1,769 per acre-foot for treated water, or $83 more per acre-foot than in 2020.
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. (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.)
In addition, the rates package includes new Permanent Special Agriculture Water Rates, following the Board’s decision late last year to make the temporary program permanent. The program provides farmers with lower rates that correspond to a lower level of water supply reliability. In 2021, the untreated PSAWR will increase from its current level of $755 per acre-foot to $777 per acre-foot and the treated PSAWR will increase from $1,035 per acre-foot to $1,072 per acre-foot.
The fiscal pressures faced by the Water Authority include:
The Water Authority’s 2021 rates were developed 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, and strategic tools such as the Long-Range Financing Plan.
In addition, the 2021 rates are designed to ensure Board-adopted debt coverage ratios that support the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects. The Water Authority has credit ratings of AAA with a stable outlook from S&P, AA+ from Fitch, and Aa2 with a stable outlook from Moody’s.
The rates adopted by the Board are the result of strategic measures that include:
The Sweetwater Authority Governing Board approved the budget for fiscal year 2020-21 at its June 24, 2020 meeting. The budget does not increase water rates for customers and reflects more than $13M in reductions over last fiscal year. To achieve these savings, the Board worked closely with Authority staff to produce a balanced budget that minimizes the financial impact to customers.
At a May meeting of the board of directors of the Brownsville, Texas, Board of Public Works, the utility’s director of finance Mike Perez made an announcement that was perhaps surprising in the middle of a pandemic.
“April was a good month,” Perez said. Revenue was up, in part due to customers staying home and using more electricity. Accounts receivable were “in line” with the same period a year ago, indicating that customers were mostly able to pay their bills. “We are not seeing anything alarming so far,” Perez said.
Local officials in Oregon, California, New York, Utah, Florida and many other places are collecting sewage samples to test for coronavirus, which experts say could allow for detection of hotspots for the disease before the diagnosis of clinical cases.
As a result of the coronavirus pandemic, public agencies have found creative solutions to holding meetings in compliance with the State of California’s meeting laws. Recently, Fallbrook Public Utility District board members stepped away from their video screens, using the opportunity to take a field trip to view a new project while conducting a traveling board meeting.
The Santa Margarita River Conjunctive Use Project is a joint project with Marine Corps Base Camp Pendleton, and will eventually supply about 30% of the District’s water, and virtually all of Camp Pendleton’s water.
Construction of the first section of pipeline on Merida Drive is part of the Santa Margarita River Conjunctive Use Project. This segment of pipeline between Alturas and Mission roads is about 4,500 linear feet and is 35% installed. Photo: Fallbrook Public Utility District
At the time of the tour, the project had been under construction for 250 days. Due to COVID-19 and social distancing restrictions, board members and others who attended the traveling meeting stayed in their cars. While behind the wheel, board members wove through parts of Fallbrook to follow the path of the new pipeline. With their smartphones turned on and hands-free, representatives followed each other in a single file parade while listening to a live conference call with the project contractor. Board members learned about construction progress, and saw where and how the pipe will be installed.
The tour and the project began at the treatment plant on Alturas Road, where bulldozers and heavy machinery are moving earth to build the pipeline and a water treatment plant. The pipeline will transport water from the plant through parts of central Fallbrook, ending at McDonald Road. The project also includes a new four million-gallon storage tank, where the tour ended. Participants discussed the possibility of a subsequent tour to view ongoing progress with construction of the facilities.
The entire construction process will take approximately two years to complete, with the pipeline becoming fully operational by 2022.
The Water News Network is San Diego County’s source for water news and information.
Sweetwater Authority Logo 2019