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Mutiny ahoy! Southerners may secede from water union, which could cost northerners money

July 22nd, 2009, 6:00 am · 22 Comments · posted by Teri Sforza, Register staff writer

water-moneyJust what we need! ANOTHER Orange County water authority!

The southern confederacy - i.e., the cities of Laguna Beach, San Juan Capistrano, and San Clemente, as well as the El Toro, Irvine Ranch, Moulton Niguel, Santa Margarita, South Coast, and Trabuco Canyon water districts - may ditch its northern neighbors and form its own water-importing-authority, thank you very much.

Why? The needs of the south are no longer the same as the needs of the north, according to a draft plan floating around (which we’re not supposed to have yet, and which you can read here: south-oc-water-authoritypdf ).

Breaking away could save south county rate payers anywhere from $707,000 to $1.24 million a year, the report says (or 26 percent to 45 percent of what they’re paying now for the frustration of being a smaller part of the bigger water-import club).

How much would that cost their northern neighbors, who’d be left holding the bag (and the bills) for the county’s existing water-import authority? Could be some $2.7 million a year. When rates are going up anyway. Ouch.

This is all an outgrowth of how unhappy those six southern water districts are with the county’s present water-importer: The Municipal Water District of Orange County. MWDOC is the middle-man that buys water from giant water importer Metropolitan Water District of Southern California, and then resells it to the 28 cities and water districts in OC, who then sell it to you. (The more the merrier, right?)

Anyway, the southerners say that MWDOC spends way too much money, and has way too much money in reserve, and doesn’t represent them well. So they want to form a new South Orange County Water Authority instead.

MWDOC would then be the importer for northern cities, which don’t need much imported water because they dip into the underground aquifer; while the southerners, almost entirely dependent on imported water, would have their own newfound voice. The southerners would also get their own seats on the powerful Met’s board - something of a Holy Grail in Water World.

GROWING PAINS?

A little history can be enlightening.

MWDOC was formed in 1951. Currently, it has 28 member agencies - 14 cities, 12 water districts, one private water company, and one community services district from one end of OC to the other.

“Orange County today is significantly different than in 195 1 when both north and south County agencies tended to be minimally staffed and not fully capable of providing regional programs and representation,” the report says. “Today the north County is almost completely developed and relies primarily on groundwater to meet demands, whereas the south County continues and will continue to experience significant growth and rely primarily on imported water to meet current and future demands. Both north and south County agencies are modern, technologically sophisticated, and more fully staffed. The resources and capabilities of both north and south County water providers are vastly different today than in 1951, and, equally important, the needs and requirements of the north County and south County are no longer entirely consistent.

“In short, given the differences that have emerged over the almost 60 years since 1951 between north and south, MWDOC’s current governance structure and scope of service may not be the optimal service model for all of Orange County today, particularly for the developing districts and cities of the south County. These differences are heightened by the fact that the south County agencies, through water purchases and other payments, fund approximately 50% of MWDOC’s annual operating budget. However, the customers of these same agencies only
comprise 28% of the population in the MWDOC service area.”

COMPLAINTS

The list of problems the southerners have with MWDOC is rather encompassing. Here are a few:

  • Since … 2001, MWDOC has expanded its service functions into a variety of ancillary programs that many of the south Orange County member agencies have not requested, do not want to pay for, and are redundant to on-going member agency programs;
  • MWDOC’s operating budget has doubled in the last ten years with much of this increase attributable to the growth in the aforementioned anciIlary programs;
  • Over approximately the same period of time, MWDOC has increased the operating reserves supporting its operation to a level that many of its member agencies believe to be unjustifiabIe considering MWDOC owns no water storage and delivery infrastructure or facilities, neither produces nor treats any suppIies of water, and has never experienced a member agency billing default;
  • MWDOC’s rates and charges are disproportionate to the services provided and the population served by its member agencies. SpecificalIy, south County agencies, through water purchases and other payments, fund approximately 46% of MWDOC’s annual operating budget, but these same agencies only comprise 28% of the population in the MWDOC service area.
  • The MWDOC Board is elected by public vote by division (area), and as such, has no direct accountability to the member agencies that are in fact its “ratepayers” and directly fund MWDOC’s operations. MWDOC sends no water bills to the public and has no direct connection with customers. This lack of accountability to the public and its member agencies has enabled MWDOC to increase its scope, programmatic expenditures, and selfdirected projects with virtually no public scrutiny.

Anyway, the folks in charge of making sure local governments make sense (hold your jokes please) are examining MWDOC as we type. That report is due out soon, and then the secessionist fun will really begin.

We’ll get back to you in coming days with MWDOC’s thoughts on all this. (Water politics? Makes Wild Rivers look positively tame by comparison.)

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Posted in: Special districtsWater
 
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 22 Comments

  • OhBoy says:

    I support the break-away 100%

  • Makesnosense says:

    Disintermediation. Great!!

  • Dina says:

    secede NOW!

  • ocJay905 says:

    Did they dump the costly airplane for their personal gratification and travel? I don’t mind changing if they don’t!!

  • Carnivore says:

    I would support secession. I believe South OC has been the “redheaded stepchild” of Orange County for too long. More perks and benefits seem to be provided to Central and North OC (higher percentage of illegals, maybe?) than to South OC. South OC has a higher tax base but seems to receive fewer perks.

  • giskard says:

    this sounds like a power play by Schatz of Santa Margarita WD and whats-his-face at Irvine ranch. Since they would be the major players in any south county water authority, i am sure they are pushing hard for the opportunity to get in on the private plane action.

    Another level of bureaucracy isnt necessary- do you think that a new water authority in south county will magically get its own pipelines in the ground too? Any new middleman in the orange county water business will still be buying the same water, coming down the same pipes ( owned and operated by MWDOC and MET). simply put, this equals an increase in costs to residents.

    Instead, lets dissolve the tiny kingdoms of the south county water agencies and put them under one roof. we can even call it the south county water authority if that makes you happy. reducing the administrative overhead of many small water districts and their well paid management staffs by consolidating seems like a much more cost effective solution to the problem. Eliminating the current redundancies in water agencies would reduce costs dramatically and streamline water resource management.

  • Jean Bland says:

    So why is Laguna Hills not mentioned in the cities of So. OC that are considering breaking away from MWDOC? Where does the Laguna Hills Ciry Council stand on this issue? They are taking a summer break. They get discounts for using recycled water to water city landscapes but the citizens don’t get recycled water for their landscapes or the discounts that come with them, we just keep paying more and more. Thank you Terri Sforza you are doing a wonderful job for citizens.

  • Teri Sforza, Register staff writer says:

    Jean - Laguna Hills city doesn’t have much say in the matter - the city gets its water from the El Toro Water District, which has the power there. The city could, of course, weigh in with its thoughts, but it doesn’t have any true control.

    And thanks for the kind words!

    • SoCoDave says:

      Just an FYI, some parts of Laguna Hills are served by the Moulton Niguel Water District.

      I hadn’t given it much thought before, but this article has me thinking that it might be in the best interest of south Orange County to form a seperate county.

  • Let’s at least see Laguna Hills at the table on the water issue. Failure to even explore the options equals a failure in leadership.

  • americangirl1974 says:

    I’m 100% in support of water independence.

    We can not waste anymore taxpayer dollars depending on Sacramento and the Bay Delta Restoration Project to provide us with a reliable water resource. They have been working on this so-called “Project” since 2006, wasted millions of our dollars and produced absolutely nothing. In addition, we can not continue to trade or buy water with various outside sources like stocks on the exchange. It’s time for the SMWD to find a long term solution for our water supply.

    I suspect they may have done that with the consideration of desalination. While most consider it an expensive alternative due to the energy power needed to get the water, it is actually much more affordable than one would think. With an “All the above” approach to energy use, desalination can become an extremely viable solution considering our vast ocean resources and good weather conditions.

    I hope they will make the right decision.

  • bpsqwerty says:

    so, everyone else is supposed to pay for So. Co. expansion basically? WHY??

    mutiny you say? because you have to pay for your own aspirations? oh the nerve of MWD charging us the going rate! boo hoo.

  • Hamburger Nancy says:

    Teri
    I was just wondering, who did this study.

  • Hamburger Nancy says:

    or should I ask who got “paid” for this study

    • Lil Ali says:

      Good questions Nancy. Without an identified study author or substantiation for the study’s information, how are we to discern whether or not it has merit?

  • Americangirl1974 says:

    Regardless of the results, the South County water districts have the right to represent and purchase water however they and their represented customers choose.

    I’m not sure why anyone in these water districts would be opposed to saving money and having more of say on how and where their water is produced.

    What we seem to have to forgotten over the years, as everything from our population to businesses continue to grow in size, is that the best forms of government are those implemented on a local level. This seems to be a concept that is hard for some to grasp…or maybe it’s just their egos.

    • Lil Ali says:

      Good points American Girl. Sounds like you accepted the study’s information about cost savings. If true, it may make sense to secede. But if not true and carefully planned, many in north and south county could end up paying more.

  • Teri Sforza, Register staff writer says:

    Hi, Hamburger Nancy (love that by the way)-

    The report was prepared by a consultant working for the southern districts. I’ll be getting more detail on precisely who that is, and how much the report cost, as things move forward. You have a good news nose.

  • whitejasminetea says:

    I’m in Moulton Niguel district and I say go for it.

  • Hamburger Nancy says:

    Thanks Teri,
    I don’t think the Districts can go wrong cutting out the middle man. I’m just concerned with the corruption that exists on these Boards finding it’s way into this process. Moulton Niguel’s Water Board is already in hot water and if it turns out Board Member Brian Probolsky is funneling rate payer money to his brother (Adam “Lumpy” Probolsky) and Curt Pringle to do this survey, a red flag may go up. Adam is also his campaign manager. I wonder how many other Board Members Associates are going to get rich during this process.

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