Tag Archive for: Metropolitan Water District of Southern California

SDCWA Twilight building-primary 845x450

Final Judgment Entered in Favor of Water Authority in 2010-2012 Rate Litigation

/in , /by

A Superior Court judge has awarded the San Diego County Water Authority $44,373,872.29 in a final judgment for two cases covering rates paid by San Diego County ratepayers during calendar years 2011-2014. The award included $28,678,190.90 in damages for the Metropolitan Water District of Southern California’s breach of contract for the four years at issue, plus pre-and post-judgment interest.

The Water Authority has worked for more than a decade to resolve disputes with MWD in cases filed from 2010-2018. In February, the Water Authority’s Board of Directors voted to dismiss certain issues from the litigation after securing more than $350 million in local project subsidy benefits for the San Diego region, beginning late last year. In doing so, the Water Authority also acknowledged the MWD Board action to stop imposing the district’s Water Stewardship Rate as a charge for transporting the Water Authority’s independent water supplies through MWD facilities, thus resolving for now that issue in future rate years. Consistent with the Water Authority Board’s direction, its attorneys are taking the steps necessary to narrow the litigation and have recently dismissed one case in its entirety.

“Entry of final judgment caps a 10-year effort by the Water Authority Board of Directors on behalf of San Diego County ratepayers, proving once again our region is stronger together in charting our water future,” said Jim Madaffer, chair of the Water Authority’s Board of Directors. “While the damages and interest award is important, the entry of judgment will also help avoid future overcharges and thereby minimize future disputes based on rulings by the Court of Appeal.”

As the lawsuits continue to wind down, the Water Authority is working collaboratively with MWD member agencies across the district’s six-county service area to update MWD’s long-term water resource and financial planning. MWD’s Integrated Resources Plan, or IRP, will be its roadmap for the future, factoring in updated data and plans by many MWD member agencies to develop local water supplies such as the Water Authority and its member agencies have done over the past two decades and will continue to do in the future.

In its judgment, the San Francisco Superior Court:

  • Determined that MWD breached the Exchange Agreement by including its Water Stewardship Rate in the transportation rates it charged to the Water Authority. Damages for the four years at issue are awarded in the amount of $28,678,190.90, plus pre- and post-judgment interest, bringing the grand total for these four years to almost $45 million. Such improper charges on the Exchange Agreement, if they had continued from MWD, would have cost San Diego County residents more than $500 million over the life of the Water Authority’s water delivery contract with MWD.
  • Acknowledged the required increase in the Water Authority’s preferential rights to MWD water by approximately 100,000 acre-feet a year, equivalent to about twice the annual production of the $1 billion Carlsbad Desalination Project. MWD had earlier complied with the appellate court ruling to this effect and corrected its records accordingly.
  • Confirmed that MWD had illegally barred the Water Authority from MWD’s demand management programs by the inclusion of an unlawful contract provision. MWD lifted the ban in response to the Court of Appeal ruling and has since that time approved nearly $500 million for water supply projects in San Diego County. The initial approvals of $350 million beginning late last year increased with the MWD Board’s approval in June of two more projects totaling an additional more than $115 million.
  • Granted declaratory relief that 1) the inclusion of the Water Stewardship Rate in MWD’s published wheeling rate and under the Exchange Agreement is unlawful and invalid; and 2) MWD’s “Rate Structure Integrity” clause barring the Water Authority from receiving demand management program benefits is invalid and unenforceable as an unconstitutional condition.
  • Ordered that a preemptory writ of mandate would issue, commanding MWD to enact only legal wheeling and transportation rates in the future.

The Court will retain continuing jurisdiction over the cases. A hearing will be held later this year to determine the prevailing party’s right to recover attorneys’ fees and costs.

With a judgment issued in the first two cases, the Water Authority is also working to narrow the scope of the remaining 2014, 2016 and 2018 cases (a 2017 case has already been dismissed).

“Like most court proceedings, it will take a little time to work through all the details,” said Water Authority Board Secretary Christy Guerin, who led the most recent litigation settlement efforts for the agency. “We recognize that MWD is at an important crossroads, and we look forward to working with the other MWD member agencies on charting a future course to ensure both a reliable Southern California water supply and MWD’s fiscal sustainability.”

Click here for more information about the rate case litigation, including the final judgment in the 2010 and 2012 cases.

Opinion: The LA Sequel to Owens Valley: The Tunnel to destroy Northern SJ Valley

/in , , /by /Manteca/Ripon Bulletinby Dennis Wyatt

It wasn’t my finest moment.

I was hiking the Owens River Gorge in mid-July. Usually that would be as smart as planting your hands on a stove burner turned to high.

Severe thunderstorms in the eastern Sierra above Bishop prompted a last minute change in plans. And given that the temperature in the Owens Valley that day was predicted to be 20 degrees cooler than the previous day’s high it was the perfect opportunity to take a hike in an area where the heat makes it a seriously insane proposition between June and September.

Before Los Angeles got is claws into Owens Valley to divert snowmelt and draw down the high desert water tables to essentially bleed Eastern California and stunt its economic growth all so the City of Angels could prosper beyond the means of its water basin, the gorge carried water tapped into by farmers and ranchers working the land.

Full Story

IID Files Opening Brief in Lawsuit Against MWD

/in , , /by /The Desert Reviewby Betty Miller

Following the Imperial Irrigation District’s recent win on a monumental water case in California’s appellate court against Michael Abatti, the water district is back in court filing the opening brief against the other large water district is Southern California, the Metropolitan Water District.

Last March, MWD took the unprecedented move to cut IID out of intrastate negotiations on the Drought Contingency Plan, promising to pay IID’s water bill to Lake Mead if water elevations shrank to 1,074 feet, triggering California’s response to the drought.

Full Story

Environment Report: Why Your Water Bill Might Spike

/in , , /by /Voice of San Diegoby MacKenzie Elmer Mentioned: San Diego County Water Authority
Quoted: San Diego County Water Authority

San Diego’s water utility is preparing to absorb a five percent spike in rates this year despite cries from elected officials to freeze costs during a global pandemic.

Why? The blame often gets passed up the proverbial pipeline.

About three-quarters of San Diego’s drinking water comes from the Colorado River via pipes and aqueducts controlled by the Metropolitan Water District, based in Los Angeles. Since it controls much of the lifeline, it’s often blamed for an increase in rates and that’s partially what happened this year.

Full Story
East County AWP-Water Supply Projects-Water Recycling

San Diego Local Water Supply Projects Get Big Funding Boost

/in , /by

Two major water projects in San Diego County this week received a major financial boost to enhance the region’s water supply. The East County Advanced Water Purification Project was approved for up to $91.8 million and a project in the City of Escondido was approved for up to $23.4 million.

The San Diego County Water Authority has helped secure nearly $470 million for local supply projects in the past several months in collaboration with member agencies, including the total of $115 million for the East County and City of Escondido projects. Both projects will increase local water supply reliability and reduce future demands on imported water supplies.

Collaboration on water supply projects

On Tuesday, the Metropolitan Water District of Southern California’s Board of Directors approved entering into funding agreements from its Local Resources Program for both projects. The Water Authority and its member agencies are able to participate in the Local Resources Program after a final court ruling found MWD had illegally barred the Water Authority from receiving money from MWD’s local water supply program, even though the Water Authority was forced to pay for it.

“Kudos to our member agencies for their strong applications and to MWD’s Board of Directors for approving them,” said Water Authority Board Chair Jim Madaffer. “It is an affirmation of our ongoing efforts to collaborate with MWD and to address shared challenges.”

Potable reuse project in East San Diego County

The East County AWP will be one of the first potable reuse projects in California to use new reservoir augmentation regulations. The program will meet up to 30% of East County’s drinking water demands, almost 13,000 acre-feet of water per year, and eliminate the discharge of 15 million gallons of partially treated wastewater into the Pacific Ocean.

The AWP uses four advanced water purification steps to produce water that is near-distilled in quality. After treatment, purified water will be blended with water in Lake Jennings and treated again at the R.M. Levy Water Treatment Plant before being distributed as drinking water.

This program is a collaborative partnership between Padre Dam Municipal Water District, the County of San Diego, the City of El Cajon and Helix Water District.

Advanced water recycling in Escondido

The Membrane Filtration Reverse Osmosis Facility in Escondido would provide up to 3,280 acre-feet per year of advanced treated recycled water to irrigate farms.

The project includes the construction of an advanced recycled water treatment facility with microfiltration and reverse osmosis, new pipelines, and a storage and blending tank to convey water for agricultural irrigation. Source water for the project is treated recycled water from the Hale Avenue Resource Recovery Facility. Escondido will own and operate the project and plans to deliver water by 2023.

Regional water supply projects reduce reliance on imported water

In the past several months, the Water Authority has helped member agencies secure three other Local Resources Program agreements to fund water supply projects that increase local supply and reduce reliance on imported water. Those projects are:

  • $23.6 million for the Fallbrook Public Utilities District’s Fallbrook Groundwater Desalter Project
  • $42.7 million for the City of Oceanside Pure Water & Recycled Water Expansion Phase I Project
  • $285.6 million for the City of San Diego’s Pure Water North City Project
San Diego County Water Authority Board of Directors Chair Jim Madaffer-primary-View from the Chair

Good News: Hundreds of Millions of Dollars Approved for Local Water Projects

/in , /by

I’m pleased to share some good news for our region. You will recall the Water Authority was recently awarded $15 million in state grants for several water supply projects throughout the county. Earlier this week, we also secured approval of more than $115 million for local water supply projects in San Diego County through the Metropolitan Water District of Southern California. That brings the total to nearly $500 million since we successfully challenged in court MWD’s imposition of an illegal contract clause barring our region’s participation in MWD’s funding program. Unlike state grants, MWD’s program is funded by its member agencies, including the Water Authority, in the water rates and charges we pay to MWD.

Kudos to our member agencies for their strong applications and to MWD’s Board of Directors for approving them. It is an affirmation of our ongoing efforts to collaborate with MWD and to address shared challenges.

Local water projects, along with the Water Authority regional supplies, are key components of our region’s long-term supply reliability strategy. A few months ago, we worked with Fallbrook Public Utility District, the City of San Diego and the City of Oceanside to secure MWD program funding for their projects.

The two most recent successes are:

  • Up to $91.8 million was awarded to the East County Advanced Water Treatment Plant. It will meet up to 30% of East County’s drinking water demands (approx. 13,000 acre-feet of water per year) and eliminate the discharge of 15 million gallons of partially treated wastewater into the Pacific Ocean.
  • Up to $23.4 million was awarded to the Membrane Filtration Reverse Osmosis Facility in the City of Escondido, which will provide up to 3,280 acre-feet per year of advanced treated recycled water to irrigate farmland.

Now that San Diego County agencies can compete for – and win – Local Resources Program funding, the Water Authority is taking actions in court to voluntarily dismiss certain related legal claims against MWD. We hope to soon have prompt resolution of our remaining litigation issues, and to work with the other MWD member agencies to create a strategic plan, a financing plan and a rate structure that are fair to ratepayers across Southern California.

View From The Chair represents the viewpoints of Jim Madaffer, Chair of the San Diego County Water Authority Board of Directors.

IID Files Opening Brief in Petition to Suspend DCP

/in , , /by /Imperial Valley Press (El Centro, Calif.)by Tom Bodus

Imperial Irrigation District made the first notable follow-up to its petition to hit the brakes on the Lower Basin Drought Contingency Plan for the Colorado River with an opening brief filed Wednesday.

IID originally filed the petition in Superior Court of Los Angeles County on April 18, 2019. The petition calls on the court to suspend approvals and actions related to the Lower Basin Drought Contingency Plan until such time an appropriate analysis of Metropolitan Water District of Southern California’s commitment to the plan has been completed in accordance with the California Environmental Quality Act.

Full Story

Strategic Steps Minimize Water Rates for 2021

/in , , /by /Water News Network Quoted: San Diego County Water Authority

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.

Full Story

Rainbow MWD Adopts Resolution of Necessity for Moody Creek Farms Land

/in , /by /Fallbrook Village Newsby Joe Naiman Mentioned: San Diego County Water Authority

The Rainbow Municipal Water District needs a 15,000-square-foot area which is part of Moody Creek Farms, so the Rainbow board approved a resolution of necessity for the property May 26.

The 4-0 board vote, with Helene Brazier unable to participate in the meeting, does not approve eminent domain but allows for that possibility if the district and Ernest Moody are unable to come to terms on a sale agreement.

“This is just the resolution of necessity. We’re not agreeing to the price of the land,” district engineer Steve Strapac said.

Full Story

SB-625 Fallout Continues: Metropolitan Water District Warns of Incompatible Office

/in , /by /Cerritos Community Newsby Brian Hews

Hews Media Group has obtained a letter from Metropolitan Water District of Southern California General Manager Jeffrey Kightlinger addressed to California State Senator Sam Bradford (D-Carson) outlining MWD’s position on Bradford’s SB-625, the bill he co-sponsored with Assemblywoman Cristina Garcia that would put Commerce-based Central Basin Municipal Water into receivership and dissolve the board of directors, five of which are elected.

Full Story