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Environment Report: Water Authority Asks County Registrar to Stall Water Divorce Vote

I got some pushback recently on the idea that legislation which could stall the breakup of the San Diego County Water Authority may have trouble getting through. But it’s hardly a guaranteed success for the city of San Diego and its sponsor, Democrat Tasha Boerner from Encinitas. It needs a two-thirds vote from the state Legislature and there’s evidence that – despite strong support from labor unions – Democrats may not have all the votes they need.

Water Authority Defectors Survive Second Round of Legal Threats

Tensions seem to be cooling slightly between the San Diego County Water Authority and those that want to leave it.

Two small North County farming communities survived a second round of attempts by the Water Authority to wage a legal war against their divorce from the regional water supplier.

Rainbow, Fallbrook Voters to Choose Whether to Leave San Diego County Water Authority

The San Diego County Local Area Formation Commission took a major step Monday toward allowing two rural water districts to leave the jurisdiction of the county Water Authority — by leaving the matter in the hands of the voters.

North County Communities Permitted to Cut Ties with County Water Authority

A local governing board voted to approve the separation of two North County water districts from the San Diego County Water Authority, moving forward their efforts to cut ties with the supplier in pursuit of cheaper water rates. The county’s Local Agency Formation Commission voted 5-3 in favor of allowing the Fallbrook Public Utility District and the Rainbow Municipal Water District to leave the central water agency and switch to Eastern Municipal Water District in Riverside County.

Two Water Districts Leaving San Diego County Water Authority

The San Diego County Local Area Formation Commission took a major step Monday toward allowing two rural water districts to leave the jurisdiction of the county Water Authority — by leaving the matter in the hands of the voters.

LAFCO Votes to Approve FPUD and RMWD Detachment from San Diego Water Authority

In a 5 to 3 vote today, July 10, 2023, LAFCO voted to allow Fallbrook and Rainbow to detach from San Diego Water Authority (SDWA). Directors Desmond, Willis, Drake, Vanderlaan and White voted in favor of allowing the detachment, while Directors Anderson, Whitburn and Becker voted against allowing Fallbrook and Bonsall to detach.

Boundary Refs on Water Divorce: It’s OK to See Other Water Districts

Two North County farming communities can divorce the San Diego County Water Authority and buy cheaper water elsewhere. That’s what San Diego’s boundary referees, the Local Agency Formation Commission or LAFCO, decided Monday. It was the eight-member board’s third try voting on this controversial breakup that powerful politicians from San Diego, Los Angeles and even the state Legislature tried to defeat.

San DIego Mayor Todd Gloria led a coalition of regional leaders urging a no vote on detachment by LAFCO at its Monday, July 10 meeting. Photo: San DIego County Water Authority protect ratepayers

Regional Leaders Seek to Protect Ratepayers from $200M Water Bill

San Diego Mayor Todd Gloria joined with regional agriculture, business, water, and elected leaders on Friday to oppose a potential $200 million water bill increase for ratepayers across San Diego County.

“The proposed action will have significant, long-term economic impacts to most households in San Diego County. Nearly every family and business will see an increase in their water rates,” Mayor Gloria said. “The cost of living is a continuous struggle for many San Diegans and these proposed rate increases are unacceptable.”

Chair Nora Vargas of the San Diego County Board of Supervisors commented on the proposal’s impact on low-income residents and the lack of a countywide vote. “An unnecessary increase in water bills means taking money away each month from hardworking families who can least afford it,” she said. “Not only will this detachment proposal lead to higher water bills, we also won’t have a say in the matter.”

Jerry Sanders, President and CEO of the San Diego Regional Chamber of Commerce, said it’s counterproductive to saddle businesses with additional bills. “This proposal would shift millions in added costs onto local businesses, many of which operate on thin margins,” Sanders said. “Our businesses face so many threats to success. Let’s not add to these challenges with an unnecessary water rate hike.”

A new study indicates original LAFCO cost estimates of detachment are as much as 50% below the true price tag, as much as $200 million. Photo: San Diego County Water Authority protect ratepayers

A new study indicates original LAFCO cost estimates of detachment are as much as 50% below the true price tag, as much as $200 million. Photo: San Diego County Water Authority

Cost Analysis of Detachment Called Flawed

Two water agencies in Fallbrook and Rainbow seek to leave the San Diego County Water Authority without paying the full cost of investments made on their behalf over the past several decades. On July 10, the San Diego Local Agency Formation Commission’s (LAFCO) board is expected to vote on the “detachment” proposal, possibly with the inclusion of a limited “exit fee” for Fallbrook and Rainbow. However, LAFCO’s figures are based on years-old data and flawed projections that understate the annual costs of detachment by at least 50%.

Updated figures released this week show that disadvantaged communities, working families, farmers, and others across San Diego County will be forced to pay nearly $200 million more over the next decade for water service unless the agencies seeking to leave the Water Authority are required to fully cover their costs. LAFCO’s data don’t reflect the inflationary realities or the fact that the financial impacts of detachment will continue far beyond LAFCO’s five-year horizon.

“I am deeply concerned that LAFCO could make this momentous decision without ensuring the accuracy of the costs of detaching from the Water Authority or allowing residents countywide to vote on this scheme,” said Water Authority Board Chair Mel Katz.

LAFCO’s staff recommendation to approve the detachment plan does not include a substantive analysis of impacts to disadvantaged communities or to agriculture in the Water Authority service area. Nor does it include the environmental analysis required by law.

Agriculture Deeply Affected By Proposal

“We all care about the cost of water because it’s a major factor for most farms,” said Frank Hilliker,” Board Chair of the Lakeside Water District and a long-time egg farmer in East County. “If Fallbrook and Rainbow water agencies don’t pay their costs, it hurts farmers like me who will be forced to pay more. I urge LAFCO to make sure that they require full cost coverage by Fallbrook and Rainbow to protect our region’s agriculture industry.”

A coalition of government, community, business, labor, agriculture, and water leaders joined together today to collectively urge San Diego LAFCO to vote no on detachment at its meeting on Monday, July 10. These leaders include:

  • Mayor Todd Gloria, City of San Diego
  • Chair Nora Vargas, San Diego County Board of Supervisors
  • Councilmember Stephen Whitburn, City of San Diego
  • Vice Mayor Colin Parent, City of La Mesa
  • District Director Janet Chin, Office of Assemblymember Tasha Boerner, District 77
  • Chair Mel Katz, San Diego County Water Authority
  • Vice Chair Nick Serrano, San Diego County Water Authority
  • Board Chair Frank Hilliker, Lakeside Water District & East County Farmer
  • President & CEO Jerry Sanders, San Diego Regional Chamber of Commerce
  • Vice President Carol Kim, San Diego & Imperial Counties Labor Council
  • Vice Chair Gail Goldberg, Metropolitan Water District of Southern California
Water ratepayers-LAFCO decision-detachment-San Diego County Water Authority-water rates

LAFCO Decision Could Raise Region’s Water Bills by Nearly $200 Million

Updated figures released July 3 show that disadvantaged communities, working families, farmers, and others across San Diego County will be forced to pay nearly $200 million more over the next decade for water service unless agencies seeking to leave the San Diego County Water Authority are required to fully cover their costs.

On July 10, the San Diego Local Agency Formation Commission’s board is expected to vote on a plan for the Fallbrook and Rainbow water agencies to leave the Water Authority, possibly with the inclusion of an “exit fee.” However, LAFCO’s figures are based on years-old data and flawed projections that understate the annual costs of detachment by at least 50%. Like everything else, costs related to water supplies have inflated significantly over the past three years.

LAFCO decision and data

LAFCO’s data don’t reflect the inflationary realities or the fact that the financial impacts of detachment will continue far beyond LAFCO’s five-year horizon, which does not reflect the actual lifespan of water infrastructure or the debt used to finance it. The LAFCO staff report acknowledges impacts will continue far longer than five years, suggesting that the rest of the county should pay for benefits to Rainbow and Fallbrook.

“From the start of this process, one of our top priorities was making sure that residents across the region aren’t harmed financially. It’s critical that ratepayers who are struggling to make ends meet, independent farmers, and small businesses aren’t forced to subsidize Fallbrook and Rainbow for years to come,” said Water Authority Board Chair Mel Katz. “We encourage the LAFCO Commissioners to require Fallbrook and Rainbow to fully cover their costs.”

LAFCO’s staff recommendation to approve the detachment proposals by the Fallbrook and Rainbow water agencies does not include substantive analysis of impacts to disadvantaged communities, or to agriculture in the Water Authority service area. Nor does it include environmental analysis required by law.

The LAFCO staff recommendation includes an exit fee of about $4.8 million a year for five years, which isn’t close to covering the actual costs that will be shifted to residents elsewhere in the county.

Here’s how much retail water agencies in the region may have to pay each year to cover the projected $18.9 million bill from Fallbrook and Rainbow leaving:

(Editor’s Note: The San Diego County Water Authority response to the proposals by the Fallbrook and Rainbow water districts to leave the Water Authority and annex into the Eastern Municipal Water District in Riverside County addressed the wholesale water agency’s concerns in September 2020. San Diego LAFCO’s website provides addtional details on the detachment process.)

Everyone Is Racing to Decide a San Diego Water Divorce

San Diego’s boundary referees are rushing to push up a vote on a controversial water divorce before the state Legislature can step in.

The Local Agency Formation Commission is holding an emergency meeting Wednesday to push up a vote on whether two small farming communities can break up with the San Diego County Water Authority in search of cheaper water in Riverside County.