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Another Agency Wrestles With a Weighted Voting Structure

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

How should power over water decisions in San Diego be divided?

Should the city of San Diego, which represents almost 40 percent of the region’s water consumers, have the most sway?

Or should smaller cities be on equal footing when the outcome of a decision could harm towns with less people and money?

That is the question facing San Diego County Water Authority once again, after the latest vote over a $5 billion duplicate pipeline to the Colorado River. Directors voted down spending $1.7 million more to study the project further, in raw numbers. Twenty of the agency’s 36 directors said no to the pipeline, and 14 said yes.

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Environment Report: Pipeline Plan Takes a Small Step Forward (With Some Drama)

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

Things got a little wild at the San Diego County Water Authority meeting last week when its 36 directors argued over whether they should spend more money studying a controversial $5 billion pipeline to the Colorado River.

Outrage after leaders apparently skipped over female directors waiting to add comments during a discussion period sparked some to change their vote on the matter.

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Regional Conveyance System Study-Phase B-November 2020

Board Approves Next Phase of Regional Water Conveyance System Study

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The San Diego County Water Authority’s Board of Directors today authorized staff to launch the next phase of a study assessing options for long-term water deliveries to sustain the region’s economy and quality of life.

The decision follows months of community dialogue about Phase A of the Regional Conveyance System Study, which was released in August. The study demonstrated the technical viability and economic competitiveness of two routes for an aqueduct to transport the Water Authority’s independent, high-priority Colorado River water to San Diego County.

Over the next 15 to 18 months, Water Authority staff will undertake Phase B, focusing on economic analysis of the two conveyance route alternatives and exploring partnerships that could provide significant benefits to an array of stakeholders and potentially reduce the cost of project development. At the end of Phase B, the 36-member Board will again decide whether to continue with regional conveyance project planning – and if so, how to proceed.

Long-term planning

“These issues are complex and the decisions never easy, but the Board chose today to keep all water supply and delivery options on the table in light of future uncertainties,” said Gary Croucher, chair of the Water Authority’s Board of Directors. “I look forward to learning from Phase B and working with the Board to decide on next steps when that study phase is done. We also look forward to working with MWD in coming months to explore long-term options for continued use of its Colorado River Aqueduct.”

The Water Authority is the long-term water planning agency for metropolitan San Diego County and the region’s wholesale water provider, serving 3.3 million people and a $245 billion economy in partnership with its 24 retail member agencies.

Half of the Water Authority’s supplies are from two landmark 2003 water conservation agreements – one that boosted water-use efficiency in collaboration with the Imperial Irrigation District and another to line sections of the All-American and Coachella canals with concrete to reduce seepage. Both agreements are part of the 2003 Quantification Settlement Agreement, the largest ag-to-urban water transfer in U.S. history.

Water supply reliability

Conserved water from the QSA is transferred to San Diego County through an Exchange Agreement with the Los Angeles-based Metropolitan Water District of Southern California. MWD owns the only facilities available to transport Colorado River water to San Diego County. The cost of using MWD facilities to deliver the Water Authority’s QSA water has increased 30% over the past five years alone.

The Water Authority’s Exchange Agreement with MWD ends in 2047, and the Water Authority is working to develop conveyance alternatives in order to manage future cost and risks.

“While 2047 may seem distant, major water infrastructure projects take decades to develop, plan and build,” said Croucher. “By advancing to Phase B of the conveyance study, the Water Authority is taking prudent steps to ensure long-term water supply reliability for the region.”

In order to address the cost and risk uncertainties associated with the use of MWD facilities, the Water Authority’s Board in June 2019 approved a study of the viability of a new regional conveyance system that would deliver water from the Colorado River to San Diego County and also might provide multiple benefits across the Southwest. Three potential pipeline routes were studied in Phase A, which concluded in August 2020 that two alternatives (3A and 5A) are cost-competitive with other options, such as continued use of MWD facilities.

Water Authority staff and consultants began in August an extensive series of briefings and outreach on Phase A results and consultant reports. The Board’s goal was to ensure a full exchange of information and viewpoints in a transparent process. Outreach across numerous platforms engaged member agencies, other local stakeholders, the Imperial Valley, and Borrego Springs.

Partnership opportunities

With today’s Board vote to approve Phase B, Water Authority staff will focus for the next several months on economics, partnerships, legal analysis, and stakeholder outreach. Phase B will help address questions about mitigating short-term rate impacts of a project, the benefits of  potential partnerships and funding opportunities, developing a plan of finance and the requirements of existing agreements, as well as explore with MWD options for long-term water deliveries to the San Diego region using MWD facilities.

 MWD issues to be addressed will include analysis of:

  • Historic and projected future increases in MWD’s water rates and charges
  • MWD’s current planning assumptions
  • Costs and water yield of MWD’s current and planned projects
  • Future demand for MWD water
  • Other MWD rate drivers

Phase B will apply the same rigorous analysis to Water Authority rate and cost projections. Water Authority staff will also begin the process of engaging more formally with stakeholders on potential partnership projects identified in Phase A, including public-private-partnerships, bi-national projects, renewable energy projects, regional operational storage projects, Salton Sea-related projects, and partnerships with tribes, federal and state governments, and member agencies.

For more details, go to sdcwa.org/colorado-river-supplies-management.

Board Approves Next Phase of Regional Water Conveyance System Study

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November 19, 2020 – The San Diego County Water Authority’s Board of Directors today authorized staff to launch the next phase of a study assessing options for long-term water deliveries to sustain the region’s economy and quality of life.

The decision follows months of community dialogue about Phase A of the Regional Conveyance System Study, which was released in August. The study demonstrated the technical viability and economic competitiveness of two routes for an aqueduct to transport the Water Authority’s independent, high-priority Colorado River water to San Diego County.

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Otay Water’s Gary Croucher Succeeds Jim Madaffer at County Water Authority

/in , , /by /Times of San Diegoby Chris Jennewein Quoted: San Diego County Water Authority

The San Diego County Water Authority’s board of directors have elected the Otay Water District‘s Gary Croucher as chair for a two-year term, succeeding Jim Madaffer on Sept. 30. Christy Guerin, who represents the Olivenhain Municipal Water District, will serve as vice chair and Jerry Butkiewicz from the City of San Diego will be secretary.

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Croucher Elected Board Chair of San Diego County Water Authority

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

New officers for the San Diego County Water Authority’s Board of Directors were elected today, with Gary Croucher starting his two-year term as Board chair on Oct. 1. Croucher, vice chair of the Board for the past two years as a representative from the Otay Water District, will serve with incoming Vice Chair Christy Guerin, a Board representative from the Olivenhain Municipal Water District, and incoming Secretary Jerry Butkiewicz from the City of San Diego.

Jim Madaffer, who represents the City of San Diego on the Water Authority’s Board, served as chair the past two years. His term ends on Sept. 30.

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Gary Croucher Elected Board Chair of San Diego County Water Authority

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September 24, 2020 — New officers for the San Diego County Water Authority’s Board of Directors were elected today, with Gary Croucher starting his two-year term as Board chair on Oct. 1.

Croucher, vice chair of the Board for the past two years as a representative from the Otay Water District, will serve with incoming Vice Chair Christy Guerin, a Board representative from the Olivenhain Municipal Water District, and incoming Secretary Jerry Butkiewicz from the City of San Diego.

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Water Authority Trims Planned 2021 Rate Increase by 30% Because of Pandemic

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

The San Diego County Water Authority board has trimmed a proposed 2021 rate increase by 30% because of concerns about the pandemic’s impact on the regional economy.

The board also directed staff to look for further opportunities to reduce the 2021 rate increase and provide recommendations by October before the new rates take effect Jan. 1.

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SDCWA Twilight building-primary 845x450

Strategic Steps Minimize Water Rates for 2021

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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.

CWA Sets June 25 Rate Hearing

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

The San Diego County Water Authority hearing to approve calendar year 2021 rates and charges will be June 25.

The May 28 motion to set the rate hearing date along with the proposed rates and charges passed with 78.139% of the SDCWA weighted vote. Twenty-one CWA board members supported the motion. Fallbrook Public Utility District general manager Jack Bebee, who is also FPUD’s representative on the CWA board, cast one of the eight votes against the action. Tom Kennedy, who is the Rainbow Municipal Water District general manager and Rainbow’s CWA representative, abstained as did Lois Fong-Sakai, who is one of the city of San Diego’s representatives on the CWA board.

A non-voting presentation earlier in the day addressed proposed changes to the CWA’s two-year budget which covers fiscal year 2019-2020 and fiscal year 2020-2021; the June 25 CWA board meeting will also include consideration of the budget adjustments. If the rates and charges are approved June 25, the action will also allocate the pro-rata shares of total fixed charges to each CWA member agency.

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