Posts

San Diego County Water Authority Board of Directors Chair Jim Madaffer-primary-View from the Chair

Jim Madaffer: Strategic Steps to Address Emerging Fiscal Realities

/in , /by by Jim Madaffer, Board Chair

Across the country, public agencies are scrambling to fill holes created by the pandemic – financial holes and, worse yet, holes in the workforce. It is safe to assume, until a vaccine is developed or an antibody treatment is found, we are living the new normal.

As we hope and pray that the worst days of the coronavirus are behind us, I am so thankful that the Water Authority took aggressive early action to protect employees and that we have had no COVID-related illnesses. I’m also grateful to report that our region’s water treatment and delivery systems are in good shape, and that they continue to provide clean, safe drinking water 24/7 due to the efforts of a few thousand employees of the Water Authority and its 24 member agencies. These dedicated public servants are doing their jobs day and night, despite numerous personal and logistical challenges.

That said, our region’s water agencies are collectively facing serious declines in revenues; businesses are not using water as expected, which means water sales have plummeted. Unlike some other industries, most of our costs are fixed. In fact, the Water Authority’s operating departments only account for about 6 percent of the budget.

This means that even when water sales drop, we still must pay the “mortgage” on the system – from pumps to pipes to filtration and whatever other costs we cannot control, such as increases from our water suppliers or higher costs for energy and treatment chemicals. For instance, we expect the Los Angeles-based Metropolitan Water District of Southern California to raise rates in San Diego County by more than 7 percent in 2021 despite our pleas for relief on your behalf.

Details about the financial impact of coronavirus will take weeks or months to emerge, but the Water Authority is already taking proactive steps to address anticipated challenges, from instituting a hiring freeze to assessing which non-essential projects and expenses can be deferred. I assure you that we are working every day to sustain our core mission to maintain the many values that we provide our region and make smart choices to ensure our long-term viability.

It is not an easy task, but we have 75 years of history that say we can do this together – and I know we will.

On a hopeful note, the region’s water agencies have joined forces to raise thousands of dollars for the Jacobs & Cushman San Diego Food Bank through voluntary donations by board members and employees. We’re always looking for opportunities to raise more money given the ongoing significance of the need. Click here to donate – and do not forget to share the link with family, friends and others who may want to participate. Every dollar helps feed those in need.

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

It’s Official: Two North County Districts Want Out of County Water Authority

/in , , /by /San Diego Union-Tribuneby J. Harry Jones Quoted: San Diego County Water Authority

The water agencies that serve the Fallbrook and Rainbow areas of North County have officially filed applications to detach from the San Diego County Water Authority, an unprecedented move with potential financial implications for almost all water customers in the county.

The Fallbrook Public Utility District and the Rainbow Municipal Water District filed “reorganization” applications with the Local Agency Formation Commission (LAFCO) on Wednesday. The filing has been expected for months and will likely trigger a lengthy process that could culminate, should the Water Authority have its way, with a vote of all customers served by any of the 24 water districts that belong to the umbrella water agency.

Full Story

West’s Biggest Reservoir Is Back on the Rise, Thanks to Conservation, Snow

/in , , /by /The Wall Street Journalby Jim Carlton

LAS VEGAS—The largest reservoir in the Western U.S., Lake Mead, is rising again after more than a decade of decline, and at least some credit goes to the local National Hockey League team.

“Reality check!” Ryan Reaves, right wing for the Vegas Golden Knights, yells as he body-slams a man through a plate-glass window for excessive lawn watering in a television commercial. “Vegas is enforcing water waste big time.”

Ads like this began airing last year as part of a campaign by the Southern Nevada Water Authority to persuade the more than two million residents of this sprawling desert metropolis to use less water. Using a carrot-and-stick approach, including paying landowners to remove grass and fining for overuse, the agency said it has cut total Colorado River water consumption by 25% over the past two decades, even as the population it serves has grown around 50%.

Full Story

Guest Column: Taking Steps to Resolve Water Lawsuits

/in , , /by /Pomerado Newsby Jim Madaffer Mentioned: San Diego County Water Authority

After securing more than $350 million for water supply projects in the San Diego region – along with other benefits – the San Diego County Water Authority’s Board of Directors on Feb. 27 voted to dismiss related claims against its Los Angeles-based supplier, the Metropolitan Water District of Southern California.

Full Story

Vallecitos Water District Employee Leads By Example With WaterSmart Landscaping Makeover

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

Vallecitos Water District Development Services Coordinator Eileen Koonce transformed the front yard at her new home into a beautiful water-efficient design with help from the San Diego County Water Authority’s Landscape Makeover Program.

As a new homeowner, when Koonce received her first water bill, she decided to figure out a way to reduce her water bill and her water usage. She realized the thirsty lawn covering the front yard had to go.

“As an employee of the District, we are always talking to customers about how they can reduce water use in their landscape, and what better time to put that theme to use than in my own yard,” said Koonce.

Full Story

San Diego Water Authority Dismisses Some Claims in Suit Against Metropolitan Water

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

The Metropolitan Water District of Southern California Friday applauded the dismissal of several legal claims stemming from lawsuits filed by the San Diego County Water Authority over water rates and charges, which could end a decade-long legal battle between the agencies.

The Water Authority voted Thursday to dismiss some claims in its lawsuits, which the Water Authority said would allow the parties to avoid a trial scheduled for June. The water authority filed several lawsuits regarding water rates and charges set by MWD and paid by water authority customers spanning from 2010 to 2018.

The resolution was at least partially brought on by the MWD Board of Directors’ approval of more than $350 million in “Water Stewardship Rate” benefits for the San Diego region late last year.

Full Story

MWD Grants SDG&E Permanent Easement in Pala

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

The Metropolitan Water District of Southern California granted San Diego Gas and Electric an permanent easement on MWD property in Pala.

The MWD board vote Feb. 11 approves the granting of the easement including conditions. SDG&E will obtain a 12-foot wide easement along the northern edge of the MWD property in the 39000 block of Pala Temecula Road.

MWD’s Pipeline 6 currently conveys water from Lake Skinner to Anza Road at De Portola Road in Temecula. That 7-mile segment is considered the northern reach of Pipeline 6; the southern reach would extend from Anza Road at De Portola Road to the San Diego County Water Authority delivery point approximately 6 miles south of the Riverside County line.

Full Story

Water Authority Board Votes to Dismiss Certain Legal Claims Against MWD

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

After securing more than $350 million in “Water Stewardship Rate” benefits for the San Diego region, the San Diego County Water Authority’s Board of Directors today voted to dismiss certain related claims against the Los Angeles-based Metropolitan Water District of Southern California.

The Water Authority Board’s decision represents a major step toward resolving the litigation, which has been pending for more than 10 years. The suits challenged water rates and charges imposed by MWD on San Diego County agencies and their ratepayers from 2010-2018. The Water Authority’s Board action will allow the parties to avoid a trial scheduled for June 2020 and clear the way for judgment to be entered in the older cases.

Full Story

Generating Sodium Hypochlorite On-Site in South San Diego

/in , /by /WaterWorld Magazine

SAN DIEGO, CA — Located in southern San Diego County, the Otay Water Treatment Plant, with a capacity of 34 million gallons per day provides drinking water to an estimated 100,000 customers. The plant is operated by the City of San Diego and located less than two miles from the United States – Mexico border, north of Tijuana. Despite being 15 miles from the Pacific Ocean, the arid region is considered part of the Colorado Desert and receives an average of only ten inches of rain each year.

Full Story
San Diego County Water Authority Board of Directors February 27 -MWD-WNN-Primary

Water Authority Board Votes to Dismiss Certain Legal Claims Against MWD

/in , /by

After securing more than $350 million in “Water Stewardship Rate” benefits for the San Diego region, the San Diego County Water Authority’s Board of Directors today voted to dismiss certain related claims against the Los Angeles-based Metropolitan Water District of Southern California.

The Water Authority Board’s decision represents a major step toward resolving the litigation, which has been pending for more than 10 years. The suits challenged water rates and charges imposed by MWD on San Diego County agencies and their ratepayers from 2010-2018. The Water Authority’s Board action will allow the parties to avoid a trial scheduled for June 2020 and clear the way for judgment to be entered in the older cases.

Dismissing claims

“Late last year, the MWD Board of Directors approved more than $350 million for water supply projects in San Diego County,” said Jim Madaffer, chair of the Water Authority’s Board of Directors. “That was a major development, and today’s action by our Board recognizes that fact, along with other actions the MWD Board has taken recently in response to the Water Authority’s claims and prior court rulings.”

Water Authority Board settlement offer

The Water Authority Board has worked for more than three years to try to settle the litigation. In the past few months, those efforts gained momentum as the two wholesale water agencies traded settlement offers. When those proposals didn’t produce an agreement, the Water Authority Board decided to take unilateral action consistent with its settlement offer.

“Our Board carefully weighed the options before them, including whether more settlement negotiations would be productive at this time,” said Water Authority Board Secretary Christy Guerin, who is leading settlement efforts for the Board.

“While we had hoped for a comprehensive settlement, our Board ultimately decided that the most efficient path forward was to unilaterally implement major elements of our last settlement offer, including dismissal of our Water Stewardship Rate on supply claims,” Guerin said. “We wanted to acknowledge MWD’s recent board actions, both approving funding for San Diego County and stating it will no longer impose its Water Stewardship Rate on the Water Authority’s Exchange Agreement.”

Court rulings

Judgment in the 2010-2012 cases may now be entered promptly. In prior proceedings, the court ordered MWD to increase the Water Authority’s right 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 has already complied with this ruling and adjusted its records accordingly.

The court also determined that MWD must repay the Water Authority for illegal charges MWD imposed on delivery of the Water Authority’s water under the Exchange Agreement. This ruling is expected to ultimately result in recovery of about $80 million. In addition, San Diego ratepayers have avoided paying more than $80 million from 2018-2022 (when MWD suspended these charges), for a total recovery on this claim of more than $160 million. The improper charges on the Exchange Agreement would have cost local residents more than $500 million over the life of the Water Authority’s water delivery contract.

Water supply projects in San Diego County

In addition, the court ruled that 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. MWD lifted the ban in response to the court’s order, and ultimately approved funding for three water supply projects in San Diego County:

  • $285.6 million for the City of San Diego’s Pure Water Project
  • $23.6 million for the Fallbrook Groundwater Desalter Project
  • $42.7 million for the City of Oceanside Pure Water & Recycled Water Expansion Phase I

“While today’s Water Authority Board action does not resolve all of the issues, it is a major step forward toward that objective,” said Water Authority Board Vice Chair Gary Croucher. “This action positions us to resolve all cases as quickly as possible on terms that will continue to protect the long-term interests of San Diego County ratepayers.”

The Water Authority remains committed to work with MWD on important issues, including planned updates to MWD’s water resource and financing plans, as well as advancing other policies and programs to promote long-term water supply reliability for San Diego County and the rest of Southern California.

Click here for more information about the rate case litigation, including today’s letter from the Water Authority to MWD.