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Quality of Life Dashboard-Water Use

Quality of Life Dashboard for San Diego County Highlights Water Use

Water use in the San Diego region was one of the positive trends in the 2020 Quality of Life Dashboard report released today by the Equinox Project.

The Quality of Life Dashboard measures and benchmarks environmental and economic trends throughout the region. Half of the 16 indicators used to measure San Diego County’s quality of life were either positive or neutral in 2019. The Dashboard tracks the county’s progress on critical quality-of-life issues and provides examples of what is working well and how the region can improve.

Six of the 16 indicators received a “thumbs-up” in the report, including water use, air quality, electricity use and renewable energy & storage. Five indicators, including traffic congestion, received a “thumbs-down.” Two indicators were neutral and three new indicators were added this year: Climate Change & Planning, Civic Engagement, and Regional Leadership in a Time of Crisis.

“The pandemic has shown the inequities that exist in our region as well as how they’re often interrelated,” said Dr. Emily Young, Executive Director of The Nonprofit Institute at the University of San Diego, where the Equinox Project is based. “The pandemic is in some ways instructive of some ways in which climate change will play out in our region in the future as well as ways that may exacerbate equality. It’s also instructive in how our community is coming together to respond to the challenges at hand with strength, innovation and resilience.”

Quality of Life Dashboard-Dr. Emily Young-The Nonprofit Institute-Water Use

“The pandemic is in some ways instructive of some ways in which climate change will play out in our region in the future as well as ways that may exacerbate equality,” said Dr. Emily Young, executive director of The Nonprofit Institute at the University of San Diego.

Residential water consumption decreased after dry 2018

As part of a long-term trend toward water efficiency and conservation, residential water use in San Diego County decreased from 2018 to 2019.

“Fluctuations in weather, including current La Niña conditions that typically mean a dry winter for California, highlight the importance of diversifying our regional water supply sources and continued investments in the infrastructure to deliver a safe, reliable supply to the region,” said Goldy Herbon, San Diego County Water Authority senior water resources specialist.

Residential Water Use-Quality of Life Dashboard

Residential water use per capita in 2019 decreased as compared to 2018, and remained lower than historical rates. Graphic: The Nonprofit Institute/University of San Diego

“Water use received a thumbs-up because daily residential water consumption in San Diego County decreased by 8.8% from 91 gallons per capita in 2018 to 83 gallons in 2019,” according to the report. “Residential water use still remains below the 2011 pre-drought levels, which at its peak in 2007 reached 119 gallons per capita. The 2018 year was an extremely dry year but the 2019 year saw rainfall return to the level experienced in 2017, which likely contributed to water use returning to its 2017 level.”

Diversification and water management strategies

“San Diego County’s water supply has diversified significantly over the last couple of decades,” according to the report. “While the San Diego County Water Authority has decreased the region’s reliance on water from the Metropolitan Water District which serves parts of Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura counties, the region still remains heavily reliant on water from the Colorado River (through water supply purchases from MWD and through water conserved and purchased through the Imperial Irrigation District and through water conserved by lining the All-American and Coachella canals).”

Diversified water-Quality of Life Dashboard-Water Use

San Diego County’s water supply has diversified significantly over the last couple of decades. Graphic: The Nonprofit Institute/University of San Diego

The report also credited the San Diego region’s development of integrated regional water management strategies, which is a collaborative effort aimed at developing long-term water supply reliability, improving water quality, and protecting natural resources.

“The San Diego County Water Authority, along with the City of San Diego and the County of San Diego, has developed an Integrated Regional Water Management Plan (IRWMP), and the IRWMP builds on local water and regional management plans within the San Diego Region,” the report noted. “The IRWMP was developed with input from a diverse group of stakeholders that make up the Regional Advisory Committee, representation includes water management agencies, resource conservation agencies, tribes and nonprofits. The IRWMP was updated in 2019 and includes information on climate change science as well as a stormwater capture feasibility study.”

Diversified supply supports region’s economy

The report says a diversified water supply supports the region’s high quality of life, its thriving economy and a healthy environment.

“Over the past two decades, diversification efforts have helped the San Diego region significantly reduce its reliance on the Metropolitan Water District from 95% in 1991 to 40% in 2018, and a projected 11% in 2020 and 2% by 2035,” according to the report. “Research has shown that a reliable water supply and the infrastructure necessary to store, move, treat, and deliver are essential to the development of an advanced economy. These factors are indispensable for supporting the diversity of industries within the regional economy. Interruptions of the region’s water supply would have severe impacts on all local industries.”

The San Diego Regional Quality of Life Dashboard was launched in August 2010.  This year, eight University of San Diego researchers contributed to the Dashboard to highlight key trends in the region’s quality of life along with a critical focus on equity and how leaders are adapting in the face of the pandemic.

La Niña and California’s New Water Year

It’s that time of the year in California, when water managers, climatologists and meteorologists look at the factors that determine what the winter will bring during Water Year 2020-21 (October 1, 2020 – September 30, 2021).

The National Oceanic and Atmospheric Administration recently said that La Niña conditions are present in the tropical Pacific, “with an approximately 85% chance of La Niña lasting through the winter.” Forecasters currently think this La Niña will be on the stronger side. For California, those conditions typically mean a drier winter, with increasingly dry conditions heading into 2021.

San Diego County Water Authority Priced into a Market Eager for California Paper

The San Diego County Water Authority’s decision to do a forward delivery on one of two series for a $400 million refunding paid off with the water wholesaler realizing $67.4 million in savings.

The Water Authority decided to explore what has become a more frequent option used by issuers since tax-exempt advance refundings were eliminated by the 2017 federal tax bill with the aim of realizing greater savings for ratepayers, said Lisa Marie Harris, the water authority’s finance director.

Co-lead managers B of A Securities and Loop Capital Markets priced Wednesday a $283.5 million series and $117.7 million series of water revenue refunding bonds. Orrick Herrington & Sutcliffe LLP is bond counsel. Montague DeRose and Associates LLC and Acacia Financial Group are co-municipal advisors.

Strong Water Authority Credit Saves $67.4 Million for Ratepayers

Strong credit ratings for the San Diego County Water Authority will save water ratepayers across the region $67.4 million on bond sales executed Wednesday in New York — $27 million more than staff forecasted in May. All three major rating agencies – S&P, Moody’s and Fitch – recently affirmed the Water Authority’s positive ratings and stable outlook, creating the opportunity for ratepayers to benefit from lower financing costs for critical water infrastructure.

Bond Sales-Credit Ratings-Desalination Plant

Strong Water Authority Credit Saves $67.4 Million for Ratepayers

Strong credit ratings for the San Diego County Water Authority will save water ratepayers across the region $67.4 million on bond sales executed Wednesday in New York — $27 million more than staff forecasted in May. All three major rating agencies – S&P, Moody’s and Fitch – recently affirmed the Water Authority’s positive ratings and stable outlook, creating the opportunity for ratepayers to benefit from lower financing costs for critical water infrastructure.

The savings resulted from the Water Authority’s refinancing of $283.5 million in Series 2020A Bonds (Green Bonds) and $117.7 million in Series 2021A (Green Bonds) senior-lien water revenue refunding bonds. Technical factors in the market provided favorable conditions – including more demand for bonds than supply – that the Water Authority team moved quickly to capture.

Most significant savings in bond refundings in the past decade

The Water Authority bonds were priced July 8 – a week ahead of schedule – and the strong credit ratings, strong bond policies, and swift action by the Board of Directors in June, helped lower the interest rates compared to what the Water Authority would have had to pay with downgraded credit. Since 2010, the Water Authority has saved a total of $235 million through 10 bond refundings, including the latest transactions.

“Thanks to strategic, courageous action by the Water Authority Board of Directors in June to set rates for 2021, the agency has secured the most significant savings from bond refundings in the past decade,” said Water Authority Board Chair Jim Madaffer. “The Water Authority maintains a strong financial position even in these difficult times, and that ultimately benefits everyone who calls San Diego County home.”

Credit ratings: Strong financial leadership, prudent strategies

In affirming their credit ratings over the past few weeks, the three rating services cited the Water Authority’s strong financial leadership, including prudent strategies to manage issues related to COVID-19, its success diversifying water supply sources, its commitment to infrastructure maintenance, and its financial reserves for managing contingencies, among other factors.

‘Investments in water supply diversification, conservative financial practices’

  • S&P affirmed its highest rating – AAA– June 25. “The authority has been successful in their efforts to increase control over their supply and diversify the source of their supply. Management has also demonstrated an ability to navigate volatile hydrological cycles through adopting rate increases as needed and building prudent financial reserves and storage to mitigate variability.”
  • Fitch Ratings affirmed its AA+ rating July 2. The Water Authority’s “significant investments in supply diversification, have allowed the Authority to continue to meet water demands in its service area.” Fitch also said “the SDCWA benefits from very strong purchaser credit quality.”
  • Moody’s Investor Service affirmed its Aa2 rating June 29. Moody’s praised the Water Authority “for increasingly diverse sources for water supply purchases; and conservative financial practices with adopted reserve and debt policies.” Moody’s also said that “liquidity, including a rate stabilization fund, remains satisfactory and serves to insulate the San Diego County Water Authority from risks associated with variable water supplies, including California’s current drought conditions, as well as unanticipated events such as the coronavirus crisis. The stable outlook reflects our expectation that the Authority’s favorable operating performance will continue.”

“In the midst of a global pandemic and a challenging economy, the Water Authority continues proactively managing its finances and lowering the cost of debt,” said Lisa Marie Harris, finance director for the Water Authority. “We have strong debt coverage, healthy reserves and an experienced management team to sustain our fiscal health.”

For more information about the Water Authority’s finances go to: www.sdcwa.org/finance-investor-relations.

Series 2020A – Taxable Refunding

Issue Size: $283,470,000

Bond maturities: 2024-2034

Bond yields: .59% – 1.95%

Refunding savings: $38.7 million

Savings as % of refunded bond par: 15.3% (board min savings 2-5%)

Top Investors: Progressive, Morgan Stanley, Goldman Sachs, and State Farm

Series 2021A –Tax-Exempt Refunding (Forward Delivery)

Issue Size: $117,690,000

Bond maturities: 2022 – 2031

Bond yields: .45% – 1.13%

Refunding savings: $28.7 million

Savings as % of refunded bond par: 19.7% (Board Min savings 2-5%)

Top Investors: Vanguard, Alliance Bernstein, Seix Investors, and MIZUHO Bank

Pre-construction activities are currently underway as part of Phase 1 of the Pure Water San Diego Program. Photo: City of San Diego

Pure Water San Diego Projects Underway After Receiving Milestone Permit

Pre-construction activities at the North City Water Reclamation Plant and the future Pure Water Facility are underway as part of Phase 1 of the Pure Water San Diego program. More than 80,000 cubic yards of soil have been moved to date during initial site work, the equivalent of approximately 25 Olympic sized swimming pools.

Last month, the San Diego Regional Water Quality Control Board adopted an order granting a National Pollutant Discharge Elimination System, or NPDES permit, to the City of San Diego to add purified water to the Miramar Reservoir for Phase 1 of  Pure Water San Diego. The approval is a major milestone for the program.

NPDES permits contain discharge limits, monitoring and reporting requirements, and other provisions to ensure water quality and public health. The NPDES permit issued to the City is the first for a reservoir augmentation project in the state of California.

By implementing Phase 1, the City will be able to produce and store 30 million gallons per day of local water supplies and decrease its reliance on imported water.

Pure Water San Diego Phase 1 includes several projects

More than 80,000 cubic yards of soil have been moved to date during initial site work on the Pure Water San Diego project, which is equivalent of approximately 25 Olympic sized swimming pools. Photo: City of San Diego

More than 80,000 cubic yards of soil have been moved to date during initial site work on the Pure Water San Diego project, which is the equivalent of approximately 25 Olympic sized swimming pools. Photo: City of San Diego

Phase 1 includes a series of pipelines and facilities to convey purified water to Miramar Reservoir. Adding the purified water to Miramar Reservoir will increase the reservoir’s beneficial use and optimize protection of water quality. The purified water will blend with the City’s imported sources and be treated again at the Miramar Water Treatment Plant and distributed to the public.

The purified water distribution area will include the portion of the City of San Diego that receives potable water from the Miramar Water Treatment Plant in addition to the City of Del Mar.

Phase 1 of Pure Water San Diego includes several projects: the Morena Pump Station and Pipelines, the North City Water Reclamation Plant Expansion, the North City Pure Water Facility, and the North City Pure Water Pump Station and Pipeline.

Water Supply Diversification Overcomes Dry Winter

No ‘March Miracle’ for snow and rain in California, but the San Diego County Water Authority has diversified water supply sources to weather the boom-and-bust cycle of California winters.

March brought abundant precipitation throughout California, but not enough to offset a dry February. Most large urban water agencies in the state maintain a reliable water supply in wet and dry years.

Sierra Nevada Snowpack Feb 27 2020 California DWR-WNN

California’s Winter: Wet Times, Dry Times and Water Supplies

After a wet and snowy start, California’s winter has gone bust. The 2019-2020 water year started off with robust precipitation after a series of storms in November and early December 2019.

But the new year has not been as bountiful. Dry conditions in January and February added little to the Sierra Nevada snowpack.

NASA-NWS-Sierra Snowpack Comparison - Water News Network Feb 2020

Left: 2019, Right: 2020. Sierra Nevada snowpack is below normal for this time of year, at about 58% statewide. Graphic: NASA/National Weather Service via NWS Sacramento

Drought-resilient water supplies through diversification

Due to California’s climatological variability, including periods of drought, the Water Authority and its 24 member agencies have diversified water supply sources. Those successful efforts ensure supply reliability for the region’s 3.3 million residents and its $245 billion regional economy.

“Based on current supply levels, the Water Authority and its 24 member agencies will meet anticipated demands through a combination of drought-resilient local and regional water resources,” said Goldy Herbon, Water Authority senior water resources specialist.

Water supplies will meet demand

Herbon said the Claude “Bud” Lewis Carlsbad Desalination Plant, conserved agricultural water transfers, savings from canal lining projects and continued water-use efficiency measures are among the reasons the region’s water supply will meet demand.

The multi-decade water supply diversification plan, along with major infrastructure improvements and forward-thinking policies, also promote fiscal and environmental responsibility.

“A comparison of the snowpack across the Sierra-Cascade range over the past 6 years shows the true variability of a California wet season. While numbers are similar to the 2017-2018 winter, snow did extend into somewhat lower elevations back then.” NWS Sacramento, February 26, 2020

Dry times in Northern California

While rainfall totals have been closer to average in most of Northern California, downtown Sacramento and downtown San Francisco did not receive any precipitation in February, according to the National Weather Service. The last time San Francisco saw a dry February was in 1864, according to the NWS.

NWS Sacramento Dry February 2020

Rainfall above historical average in San Diego

Southern California is faring better, with rainfall at 125% of the historical average at Lindbergh Field in San Diego.

Most major California reservoirs are at or above the historical averages for late-February.

The state’s largest six reservoirs currently hold between 92% (Oroville) and 132% (Melones) of their historical averages for February 26. Lake Shasta, California’s largest surface reservoir, is 107% of its historical average and sits at 78% of capacity, according to the California Department of Water Resources.

Water Supply-Major Reservoirs-DWR-WNN Feb 2020

California’s largest six reservoirs hold between 92% and 132% of their historical averages for Feb. 27. Lake Shasta, California’s largest surface reservoir, is at 107% of its historical average and is at 78% of capacity. Graphic: California Department of Water Resources

The Department of Water Resources February 27 conducted the third manual snow survey of 2020 at Phillips Station. The manual survey recorded 29 inches of snow depth and a snow water equivalent of 11.5 inches, which is 47% of the March average for this location, according to a DWR news release. The snow water equivalent measures the amount of water contained in the snowpack, which provides a more accurate forecast of spring runoff.

Spring storms could boost snowpack

“Right now, 2020 is on track to be a below-average year but we could still see large storms in March and April that will improve the current snowpack,” said Sean de Guzman, chief of DWR’s Snow Surveys and Water Supply Forecasting Section. “While periods of dry conditions are expected in California, climate change has made them more unpredictable and extreme which is why we must always use the water we have wisely.”

March April May precipitation 20-Feb-2020 NWS CPC

The seasonal outlook for March, April, and May sees below-normal chances for a wet period across California and the Southwest U.S. while most areas are favored to be warmer than usual. Graphic: National Weather Service Climate Prediction Center

Looking ahead, the National Weather Service Climate Prediction Center forecast favors above-normal temperatures and below-normal precipitation through May for most of California.

NWS CPC Spring 2020 temperature forecast-WNN

The National Weather Service Climate Prediction Center forecast favors above-normal temperatures and below normal precipitation through May for most of California. Graphic: National Weather Service Climate Prediction Center

One Idea, Two Cool Things: Desalinated Water and Renewable Energy

The contraption, reminiscent of Rube Goldberg, would produce two of Southern California’s most precious and essential resources: water and electricity.

The electricity would be renewable. And the drought-proof, desalinated ocean water could prove more environmentally friendly — and cheaper — than the water produced from three other desalters proposed for Southern California.

The idea, developed by Silicon Valley-based Neal Aronson and his Oceanus Power & Water venture, caught the attention of the Santa Margarita Water District. The agency quickly saw the project’s viability to fill a void.

San Diego’s Landmark Water Recycling Project May Face Longer Delays Than Expected

San Diego’s long-awaited Pure Water project, a sewage recycling system that would boost the city’s water independence, is facing legal challenges that could last longer and cost more than city officials previously anticipated.