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Strategic Steps Minimize Water Rates for 2021

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.

Secure water supply is foundation of economic recovery

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.

Rising costs from MWD affect rates

The fiscal pressures faced by the Water Authority include:

  • Reduced water sales, which are 14% below the current budget and expected to remain low in 2021 due to coronavirus-related business closures and other factors. Decreased water sales put upward pressure on rates because costs must be spread across fewer units sold.
  • Rising costs from MWD that reflect continued increases to its base supply rates and charges and the amount MWD charges to transport the Water Authority’s independent Colorado River supplies. For the Water Authority, MWD’s adopted 2021 rates increase supply costs by more than 9%, or $15.4 million.

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:

  • Providing more than $80 million in rate relief from the Rate Stabilization Fund over the next 24 months.
  • Capitalizing on historically low interest rates and strong credit ratings by lowering annual debt expenditures by optimizing cash to restructure outstanding debt to provide significant savings.
  • Planning to withdraw stored water to reduce water purchases while maintaining water reserves for future years – the result of careful planning and investments over more than two decades.
  • Reducing budget expenditures with a hiring freeze reduced professional services contracts and reprioritizing more than $30 million in capital projects.

Fallbrook PUD Board Members Tour Construction Project

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.
The Fallbrook PUD Board tour group initially drove from the FPUD administration building to the Alturas Road plant and then traveled along the pipeline alignment before arriving at the Gheen Pump Station. Photo: Fallbrook Public Utilities District

Fallbrook PUD Board Members Tour Construction Project

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.

Fallbrook PUD board members view construction project

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 Utilities District Fallbrook PUD Board

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.

Water Utility Hero of the Week: Keith Swiatkowski, Otay Water District

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. Keith Swiatkowski, Otay Water District Water Systems Operator III, is the Water Utility Hero of the Week.

Keith Swiatkowski-Otay Water District-

Water Utility Hero of the Week: Keith Swiatkowski, Otay Water District

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. Keith Swiatkowski, Otay Water District Water Systems Operator III, is the Water Utility Hero of the Week.

Water Utility Hero of the Week: Keith Swiatkowski

Job/Agency: Otay Water District Water Systems Operator III

How did you become interested in working in the water industry?

I was working in the Aerospace manufacturing industry at Solar Turbines for 12 years, but felt I wanted to work in a field that served my local community or region. My mother worked for the SDCWA and really enjoyed working in the water industry. She encouraged me to look for a career in this field. A friend of mine knew someone that worked for the City of Escondido, so I was able to contact him and learn what it would take to get into this field. I took a test at Escondido City Hall with about 400 other people, did well enough to get an interview, and eventually got hired by them. I spent 4.5 years learning everything I could working from the ground level, literally, working in excavations making repairs to water mains. I then took classes at Palomar College and State Certification tests to advance my career. I came a long way from my humble beginnings and truly enjoy serving the community as a Water Systems Operator III for the Otay Water District where I’ve worked now for 7.5 years.

How has your job changed during the pandemic?

My job function hasn’t changed much. What has changed is how we’re getting it done. We are currently operating with minimal staff reporting for duty in the field so that we limit potential exposure. We are still able to accomplish all of our tasks by spreading more of the field work around and adjusting schedules. This ensures that we continue to provide our customers with same level of service so they don’t notice any difference. The other staff work from home and we do this on a rotating basis. Those working from home have the opportunity to monitor our distribution system via SCADA, stay in touch via e-mail or text, study our mapping program to learn more about pipe sizes/material, pressure zones, and review district policies.

How are you keeping safe?

The District has done a great job providing the latest online training regarding how to stay safe. We have implemented temperature check kiosks at the district to ensure employees are safe to work. Personally I’m wearing my mask in the office, when in public or speaking with customers in person, washing my hands more or using hand sanitizer, wiping down surfaces more often, social distancing in the office or in public, and limiting going to stores during my time at home. Fortunately most of my work day is driving alone in my truck to different sites to test for water quality, so that limits my exposure as well.

What are you most looking forward to after the crisis ends?

I’m looking forward to being able to have in-person meetings. We do get the same things accomplished through video meetings or being far enough apart in the crew room. But there’s nothing like being able to have a crew all come together as a team or have an all-hands meeting and feel that sense of community. I’m also looking forward to my ultra-running trail races being held again soon, working out in the gym, going to concerts, having people over for BBQ’s, going to the movies, and taking my wife out for a romantic dinner on the coast.

The Water Utility Hero of the Week highlights essential work performed during the COVID-19 pandemic by employees of the San Diego County Water Authority’s 24 member agencies.

San Diego County Water Authority Member Agency Map

IID, County Transitioning Workforces Back in House

Although COVID-19 cases continue to skyrocket locally, both Imperial County and the Imperial Irrigation District have started transitioning from telecommuting to having their employees return to their usual work sites.

Hit Hard by COVID-19, San Diego’s Economy Might Not Be as Bad Off as Other Spots

The economy might seem bad out there but San Diego may not have gotten the worst of California’s massive job losses. Roughly 67 percent of workers in San Diego County are considered essential and less likely to have suffered furloughs, shows a deep dive of unemployment data by Beacon Economics. That’s a higher percentage of the workforce than Silicon Valley, Los Angeles and San Francisco.

This temporary bridge allowed Vallecitos Water District crews to repair a manhole without affected sensitive habitat. Photo: Vallecitos Water District rehab manhole

Vallecitos Water District Crews Rehab Manhole, Protecting Environment  

Vallecitos Water District crews sprang into action to repair and rehabilitate a manhole in danger of failing, successfully preventing a spill, which could have resulted in significant environmental damage.

Located just off Palomar Airport Road in a shared 30-foot easement with the Buena Sanitation District in Carlsbad, the manhole is part of a 30-inch outfall providing a main sewage drain for the City of San Marcos. The line feeds directly into the Encina Wastewater Treatment plant a half-mile from the project site.

Originally constructed in the 1980s, turbulence generated by a hard right-turn along the sewer easement creates hydrogen sulfide gases. These gases corrode concrete and weakened the manhole over the years. Flooding also occurs in the area and allows rainfall to infiltrate the manhole.

Preventing harm to sensitive habitat areas

Vallecitos Water District staff became concerned the structure could fail. The result would be a major sewage spill affecting the nearby Encinas Creek Habitat Conservation Area, ultimately spilling into the Pacific Ocean a mile downstream. The Habitat Conservation Area is owned by the Center for Natural Lands Management, which supports its management through an endowment.

The Encinas Creek HCA is also part of the City of Carlsbad’s habitat management preserve. It includes riparian habitat and is known to be home to state and federally protected species. The Center for Natural Lands Management works to protect the property from trespassing, nonnative invasive plant and animal species, and other issues.

The District determined emergency repairs were required. Although the Vallecitos Water District has proper easement rights to access, operate, and maintain the pipeline, the agency must avoid any impact to the existing habitat while repairing the manhole. This required some creativity by the work crews.

Creative thinking provides access for repairs

A look at the newly repaired manhole. Photo: Vallecitos Water District

A look at the newly repaired manhole. Photo: Vallecitos Water District

The District kept all construction activities within its existing easement to avoid any impacts to existing riparian vegetation. Crews constructed a temporary bridge over an existing stream obstructing access to the manhole. The bridge installation was designed to be temporary, and not affect the existing stream with footings or other supports. Constructing the bridge for access turned out to be the most complex part of the repair project.

District crews working with a contractor team took advantage of the lower sewage flow during the early morning hours, starting work at 3 a.m. to get as low into the waterline as possible. Repairs like this take advantage of the low flows to keep critically important sewer systems in operation.

Instead of replacing the manhole, the District used a polymer concrete replacement product to build a new manhole within the old manhole. As a result, no excavation was needed. Unlike regular concrete, the new material is corrosion-proof and should provide District customers in San Marcos with many years of reliable service while protecting the environment.

Water Utility Hero of the Week: Gary Briant, Olivenhain Municipal Water District

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. Gary Briant, Olivenhain Municipal Water District Purchasing/Warehouse Clerk, is the Water Utility Hero of the Week.

Water Utility Hero of the Week-Olivenhain MWD-COVID19

Water Utility Hero of the Week: Gary Briant, Olivenhain Municipal Water District

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. Gary Briant, Olivenhain Municipal Water District Purchasing/Warehouse Clerk, is the Water Utility Hero of the Week.

Water Utility Hero of the Week: Gary Briant

Job/Agency: Olivenhain Municipal Water District Purchasing/Warehouse Clerk

How did you become interested in working in the water industry?

I spent many years working in the private sector. I noticed that my friends and family that worked in the water industry showed a real sense of pride in what they did. I wanted to stop the “rat race” in the private sector and join a team in the water industry where I could grow, contribute my skills, and be a part of something important. Working at OMWD feels like I’m part of a family, and I am very happy in my new career.

How has your job changed during the pandemic?

One of my duties here is to procure materials and supplies for Olivenhain. We have only had a few challenges finding supplies during the COVID-19 pandemic. Our general manager had the insight to make sure we were prepared very early on, so I was able to secure many items before vendors ran out and/or items became backordered for months. When some supplies were not available, we thought “outside the box” to find solutions. For example, we used the recipe from World Health Organization to make our own hand sanitizer when it was sold out everywhere.

How are you keeping safe?

It’s really important to me that I keep myself safe so I don’t put another team member or family member in jeopardy of getting sick. I’ve been focusing on maintaining social distance, sanitizing, and staying healthy. Safety and education has been the main priority at OMWD since the pandemic began. I make sure all needed safety items are well stocked so everyone at OMWD stays well. We have also transitioned to accepting deliveries in a no-contact manner.

What are you most looking forward to after the crisis ends?

I look forward to seeing everything go back to as close to “normal” as possible. I understand we will have to modify many ways that we operate regarding socialization and maintaining a safe work environment. But I look forward to the challenge of helping my co-workers stay healthy so OMWD can continue being successful in its mission to deliver safe and reliable water service to the community.

The Water Utility Hero of the Week highlights essential work performed during the COVID-19 pandemic by employees of the San Diego County Water Authority’s 24 member agencies.

San Diego County Water Authority Member Agency Map