San Diego’s top water managers have pleaded for months with state officials in Sacramento not to adopt mandatory drought restrictions similar to those imposed by then-Gov. Jerry Brown in 2015.
For now, it appears their concerns have been heeded. Gov. Gavin Newsom recently laid out a pathway for curtailing water use that gives local jurisdictions significant flexibility over how hard to push residents to conserve.
It rained almost two inches over Monday night in certain parts of the San Diego region, but the drought is not over. In fact, Jeff Stephenson, water resources manager at San Diego County Water Authority, said residents should consider turning off their sprinklers for the next seven days.
Of the six levels of emergency actions taken during a drought, Gov. Gavin Newsom on Monday moved California from the first to the second level. That means local water suppliers must act like supplies have dipped by at least 10 to 20 percent, as CalMatters explained.
But he isn’t requiring everybody to cut water use by the same amount across the board. This time he’s letting cities and jurisdictions trigger their local plans for action during drought prepared back in 2020.
March 29, 2022 – “Governor Newsom issued the fifth in a series of executive orders March 28 asking Californians to increase water conservation, while at the same time allowing every local water supplier to determine where additional water-use measures are needed and set rules accordingly. This strong but measured approach for locally appropriate actions will provide aid and assistance to areas of the state that are most suffering the impacts of drought, while maximizing flexibility where warranted by local conditions. The Governor’s approach is especially insightful because it acknowledges and rewards past investment in water conservation and local supply development, as Californians come together to address the real-world impacts of our changing climate.
San Diego County Water Authority Finance Director Lisa Marie Harris has been named CFO of the Year in the Public Sector category by the San Diego Business Journal.
Harris has served as director of finance and treasurer for the Water Authority since May 2014, capping 30 years of experience in both public and private finance. In her current role, she is responsible for overseeing the Water Authority’s $1.98 billion debt portfolio, a $503 million investment portfolio, the development of the biannual $1.7 billion operating budget, and setting annual rates and charges.
“The San Diego Business Journal could not have selected a better example of dedicated public service than Lisa Marie Harris,” said Water Authority General Manager Sandra L. Kerl. “Over the past seven years, Lisa Marie has led strategic initiatives that have improved the financial health of the Water Authority, benefitting our member agencies and the region’s ratepayers, while demonstrating leadership for employees who provide essential water services to San Diego County.”
Each year, the San Diego Business Journal honors the financial executives with its CFO of the Year Awards that recognize contributions to growth, leadership, and community involvement. A panel of independent judges, drawn from the region’s financial leaders, selected the 2022 candidates.
During the peak of the pandemic, she advocated for refinancing Water Authority debt and then timed the market to minimize costs for the agency. Harris’ financial savvy and keen sense of timing saved the region $48 million, which will be applied to future rate cycles. Photo: San Diego County Water Authority
Harris’ sustained excellence and financial acumen have been critical to minimizing wholesale water rate increases despite inflationary pressures on energy, chemicals, and other materials. In addition, she is helping to lead agency initiatives to ensure long-term fiscal sustainability, reliability, and affordability.
“I am honored to receive this recognition, which reflects the work of the entire Water Authority Finance Department team,” said Harris. “It’s also important to recognize our Board of Directors, which provides strategic direction and ultimately makes the difficult decisions to balance all of the complex factors necessary to sustain water supplies for San Diego County.”
Among her recent accomplishments, Harris led the Water Authority’s successful efforts to earn strong credit ratings from the three major U.S. rating agencies. High ratings allow the agency to optimize its debt portfolio and minimize the cost of financing vital water reliability projects, which reduces long-term costs.
During the peak of the pandemic, she advocated for refinancing Water Authority debt and then timed the market to minimize costs for the agency. Harris’ financial savvy and keen sense of timing saved the region $48 million, which will be applied to future rate cycles.
“I am honored to receive this recognition, which reflects the work of the entire Water Authority Finance Department team,” said Harris. “It’s also important to recognize our Board of Directors, which provides strategic direction and ultimately makes the difficult decisions to balance all of the complex factors necessary to sustain water supplies for San Diego County.” Photo: San Diego County Water Authority
Prior to joining the Water Authority, Harris served as chief deputy treasurer for the County of San Diego Treasurer-Tax Collector’s Office; executive director of California Debt and Investment Advisory Commission; assistant deputy airport director for the City and County of San Francisco – San Francisco International Airport; and senior vice president for Siebert Brandford Shank LLC.
Harris holds a bachelor’s degree in Economics from UC Berkeley and a master’s degree in Public Policy from the University of Michigan. Harris is a past executive board member of the Debt and Nominations Committees for the Government Finance Officers Association; past executive board member for Women in Public Finance; and founding member and vice president for the San Diego Chapter of Women in Public Finance.
San Diego Mayor Todd Gloria appointed Harris to the City of San Diego Employees Retirement board in May 2021, and she serves on the Investment Committee. Harris was recently appointed to the board of directors of San Diego-based Wakeland Housing Corporation, which develops affordable housing in California.
Every year at this time, water agencies launch the long and thoughtful process of setting rates for the next year. It’s always complex and challenging – and in 2022 we’re starting in an even tougher spot due to larger economic uncertainties that are compounded by inflation.
Thankfully, the Water Authority strategically invested in supply reliability in decades past when costs and inflation were lower – and we are reaping the benefits of those investments during the worst megadrought in 1,200 years. Further, the Water Authority’s locally controlled sources have cost-control measures built into the contracts to help guard against sudden price increases.
However, water costs in San Diego County are heavily influenced by the Metropolitan Water District of Southern California. And now, MWD is proposing the largest increases in more than a decade – 17% over the next two years.
Under new management, MWD is undertaking several long-range financial and planning efforts while beginning an investment cycle to ensure its future water supply will be reliable. Over the next several years, MWD is starting a $3.7 billion recycled water plant in Carson followed by a multibillion-dollar tunneling project in the Bay-Delta. While these are important projects for MWD to shore up its supplies – especially for their member agencies that may have cutbacks due to their location in MWD’s system – they will drive up the cost of water from MWD far faster than the cost of Water Authority water. One result is that MWD’s water is expected to be more expensive than our supplies within the next decade (as shown in the chart).
On behalf of our member agencies, farmers, small businesses, and you, we are asking MWD to prioritize affordability and aggressively control costs before imposing significant rate increases. We have worked very hard to do that at the Water Authority and we are committed to advocating on our region’s behalf at MWD while supporting the very important work they do.
March 25, 2022 – Businessman and civic leader Mel Katz is the new vice chair of the San Diego County Water Authority Board, filling a vacancy created when Mona Rios stepped down from the post. The Board of Directors voted unanimously on Thursday to install Katz to fill the rest of Rios’ term, which ends in September.
California’s Department of Water Resources Friday announced that due to the ongoing statewide drought, it must reduce the State Water Project allocation to 5% of requested supplies for 2022, but San Diego County Water Authority officials said they remain confident in the region’s supply.
DWR previously set the allocation at 15% but a historically dry January and February, with no significant storms forecast for March, required a reduction in the allocation to conserve available water supply, a statement from the state agency read.
“Today’s announcement about reduced allocations from the State Water Project brings into focus the increasing challenges created by the megadrought,” said Sandra L. Kerl, general manager of the San Diego County Water Authority. “This is an emergency felt throughout the state and we strongly support continued conservation.”
“Reduced water deliveries from the State Water Project highlight how the San Diego region’s conservation ethic combined with investments in drought-resilient supplies are paying off,” Kerl said. “The region uses very little water from the Bay-Delta, and even with reduced allocations, the Water Authority has reliable water supplies for 2022 and beyond.”
In addition to the 5% allocation, DWR will also provide any unmet critical health and safety needs of the 29 water agencies that contract to receive State Water Project supplies.
The San Diego County Water Authority’s water-energy partnership with San Diego Gas & Electric is seeking $1.8 million in additional funding through 2026 to continue saving water and energy for thousands of income-qualified residents across the San Diego region. For more than 25 years, the Water Authority’s Water-Energy Nexus Program, or WEN, has maximized energy savings while supporting water efficiency in the San Diego region
A recent commentary by the board presidents of the Fallbrook and Rainbow water districts included incomplete and misleading information about increases in future water rates in San Diego County.
Contrary to their assertion of a 50% increase over five years, the San Diego County Water Authority’s board has not set rates for future years. At the wholesale level, rate setting is done one year at a time and the process is just starting for 2023.
As part of our financial due diligence that helps maintain strong credit ratings, we forecast a range of possible future rates while we work with our partners to maintain our infrastructure and minimize financial impacts on ratepayers.
The San Diego County Water Authority’s water-energy partnership with San Diego Gas & Electric is seeking $1.8 million in additional funding through 2026 to continue saving water and energy for thousands of income-qualified residents across the San Diego region.
For more than 25 years, the Water Authority’s Water-Energy Nexus Program, or WEN, has maximized energy savings while supporting water efficiency in the San Diego region. SDG&E and the Water Authority have worked together to trim water and energy use and costs in one of the longest-running partnerships of its kind in California. As part of its role, the Water Authority funds the installation of water efficiency devices for eligible customers and communities.
Adding water-efficient upgrades will help meet long-term regional conservation goals. Photo: San Diego County Water Authority
Toilets account for nearly 30% of a typical home’s indoor water use. The WEN Program increased water efficiency by replacing inefficient fixtures with state-of-the-art water-saving devices in disadvantaged communities.
“The Water Authority is committed to helping the San Diego region make the most of our water supplies through a variety of innovative programs,” said Kelley Gage, director of the Water Resources Department at the Water Authority. “Through our partnership with SDG&E, we extend help to families that might not be able to afford these environmentally friendly upgrades without support.”
SDG&E’s Energy Savings Assistance Program installs both water- and energy-saving measures in single-family, multifamily, and manufactured homes. The Water Authority reimburses SDG&E for water-saving devices installed by its contractor, Synergy Companies. This partnership has received funding to continue through 2025.
Installation of high-efficiency toilets and irrigation controllers is a collaboration with SDG&E’s Multifamily and Manufactured Housing Programs, which was recently approved for four more years of funding.
Removing upfront costs helps all residents benefit from water-efficient fixtures in the home. Photo: San Diego County Water Authority
Low-income residents are sometimes unable to participate in water and energy conservation programs due to the upfront costs. The Water Authority’s program invests in water-efficient upgrades upfront. Adding funding capacity for additional retrofitting will help meet long-term conservation goals.
For more water-use efficiency resources, go to WaterSmart.SD.org.
The Water News Network is San Diego County’s source for water news and information.
