The water agencies in Fallbrook and Rainbow announced Thursday they will move forward with an effort to leave the San Diego County Water Authority and join the Eastern Municipal Water District in southwest Riverside County.
The Fallbrook Public Utility District approved a contract with SCADA Integrations to upgrade the conveyor system at FPUD’s Water Reclamation Plant with a programmable logic controller system.
A 5-0 FPUD board vote Monday, March 22, approved the request for proposals submission from SCADA Integrations. The upgrade will be constructed in two phases, and the contract has a total value of $128,470.
SRK Engineering received the Fallbrook Public Utility District contract to replace FPUD’s Gum Tree Pipeline.
The FPUD board voted 5-0 Monday, March 22, to award SRK a $428,500 contract, which matches the Escondido company’s bid. The work will replace approximately 1,400 feet of 20-inch diameter cement mortar lined and coated steel pipe along with associated appurtenances.
All three major rating agencies affirmed the San Diego County Water Authority’s strong credit ratings, which will help us minimize the cost of financing important water reliability projects.
It is particularly gratifying that the reports cited the Water Authority’s strategic management, our conservative approach to water sales projections, and the benefits of rate case litigation that recently resulted in $44.4 million being refunded to local retail water agencies, among many other factors. In affirming their credit ratings, the services also noted the Water Authority’s strong financial leadership (including prudent strategies to manage issues related to COVID-19), decades of success diversifying water supply sources, our commitment to infrastructure maintenance, and our financial reserves for managing contingencies.
Just one example: Fitch Ratings said that the Water Authority’s “operating costs are low” and that the Water Authority’s “significant investments in supply diversification (that) have allowed SDCWA to continue to meet water demands in its service area.” Fitch also accounted for the Water Authority’s current hiring freeze, spending cuts and deferral of $30 million in planned capital spending to proactively manage finances during the pandemic.
At the same time, 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 countywide. If the two North County agencies leave per their plans, Water Authority analysis shows that the other 22 member agencies – who serve about 3.2 million residents – 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 affirmed its AAA rating for the Water Authority. However, it issued a negative outlook for the agency and 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.”
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.
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.
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.
No matter whether their landscaping is just a few square feet alongside a front porch or estate acreage, thousands of San Diego County residents have learned to embrace sustainability as a central principle for creating and renovating their landscapes. The San Diego County Water Authority offers financial incentives and educational resources to customers in Fallbrook and Rainbow to improve their landscaping.
The Fallbrook Public Utility District board approved a change order to the contract with Filanc Alberici JV to construct the Santa Margarita Conjunctive Use Project. A 5-0 FPUD board vote Feb. 22 approved a change order which will add $3,389,801 to the price of the contract.
The Fallbrook Public Utility District will be acquiring a boom truck crane.
A 5-0 FPUD board vote Feb. 22 approved the purchase of a boom truck crane from Velocity Truck Centers for the amount of $314,627.03.
“The crane is critical to our work replacing valves throughout the district,” said FPUD General Manager Jack Bebee.
The Fallbrook Village Association will be receiving a Community Service Water Usage customer discount for Vince Ross Village Square water purchased from the Fallbrook Public Utility District.
