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CMWD Board Memorandum
Sept. 30, 2021
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Re:
Carlsbad Municipal Wate · tri t Board of Directors
Paz Gomez, Deputy City Mana , ublic Works
Vicki Quiram, General Manag
Scott Chadwick, Executive M a
Governor's Executive Order
Ccarlsbad
Municipal Water District
Memo ID #2021182
This memorandum provides an update to the Carlsbad Municipal Water District (CMWD) Board
Memorandum dated July 29, 2021, on the State of California Executive Order N-10-21 on
voluntary drought measures (Attachment A) and information on a letter to the San Diego County
Water Authority regarding the impact of declining water sales on the San Diego County Water
Authority (SDCWA) ratepayers.
Backg·round
On April 21, 2021, and May 10, 2021, Governor Newsom issued Proclamations that declared a
State of Emergency in a total of 41 Calif()rnia counties due to severe drought and directed
immediate action. The San Diego region was not placed in the state's drought emergency status,
largely due to sound planning and decades-long ratepayer investments in new water supplies,
storage and adoption of water conservation as a way of life.
On July 8, 2021, Governor Newsom signed a third drought emergency Proclamation that
expanded the state's drought declaration to 50 of the 58 counties and asked all residents of
California to voluntarily reduce water use by 15% from the 2020 levels. Even though San Diego
County is prepared for multi-year droughts, CMWD continues to promote water conservation
and is asking our customers to respond to the current epic drought situation in California.
The CMWD's water use has continued to decrease. Working with the SDCWA, the CMWD is
participating in the reduction of water use as described in Attachment A. Staff is also working on
new and additional strategies for water conservation, resiliency and local water supply
development. These efforts are similar to the actions that would be required in the Drought
Contingency Plan Phase One response and are the CMWD's operating procedures at all times.
On Sept. 23, 2021, Governor Newsom signed 24 bills focused on climate and clean energy efforts,
drought and wildfire preparedness and immediate response. The largest portion of the package,
$5.2 billion, will go to funding for emergency drought relief projects and to expand the state's
water supplies amid a historic drought that led the Governor to ask residents to cut back on their
water consumption by 15% in July.
Carlsbad Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 760-438-2722 t
Board Memo -Governor's Executive Order on Voluntary Drought Measures (Districts -All)
Sept. 30, 2021
Page 2
Information on the current drought situation in California is available in the following State of
California website: https://www.drought.gov/states/california
Discussion
The state continues to experience record-breaking and critically dry conditions. Drought
conditions continue to worsen and change daily. The State Department of Water Resources and
State Water Resources Control Board are taking serious actions and preparing for a third year of
drought in 2022, and the worst-case scenario is that there could be extremely low to no water
deliveries from the State Water Project.
The CMWD purchases approximately 66% of its water supply from the SDCWA. Approximately
15% of the SDCWA supplies come from the Bay-Delta through its purchases of Metropolitan
Water District supply. The SDCWA has executed a long-term strategy to invest in projects that
diversify its supply. Their members have invested in desalination, groundwater and water
recycling and water purification. Local supplies account for about 30% of the water used across
the region. Approximately 50% comes from the Colorado River. The CMWD has the reliable local
supply of potable water from the Claude "Bud" Lewis Carlsbad Desalination Plant and recycled
water supply from the Carlsbad Water Recycling Facility.
Staff are focused on com batting the impacts of this latest drought. CMWD customers have
helped conserve water by significantly reducing their per capita potable water consumption. In ·
fact, since the last drought period when urban water suppliers were mandated by the Water
Conservation Act of 2009 to reduce the per capita potable water demands by 20% by the year
2020, CMWD's customers exceeded the target and reduced their per capita use by
approximately 48%.
The entire San Diego region together has reduced their per capita use by almost 50%. Comparing
July 2020 to July 2021, the CMWD's water use went down 8%. Additionally, the CMWD is actively
participating with other regional water agencies and the Encina Wastewater Authority in a
feasibility study and demonstration project for a potable reuse project, referred to as North
County One Water. A resilient, reliable water supply is extremely important to the CMWD's
water customers and the city's economy, as it is the lifeline of our residents, visitors and many of
our businesses.
Considering Statewide Water Use Cutbacks
There are challenges ahead. The SDCWA reports that the Legislature is now considering
statewide water use cutbacks, as early as October 2021. If so, it could create a future disincentive
to continue developing resilient supplies, since the local supply projects may not be able to be
used when they are needed most. For example, if the Legislature mandate.s cutbacks on recycled
water production or local supply projects, such as the City of San Diego's Pure Water Project,
future investments in drought-free local supplies would be questioned.
Board Memo -Governor's Executive Order on Voluntary Drought Measures (Districts -All)
Sept. 30, 2021
Page 3
Although San Diego County uses very little water that could be diverted to drought-stricken areas
of Central and Northern California, the SDCWA has offered to assist other agencies. The SDCWA
has groundwater stored in the Central Valley that is available to transfer to other agencies that
are experiencing devastating shortages. The state may be able to facilitate transfers to get the
water to where it is needed most. The SDCWA could also store more water in Lake Mead via
partnerships with the Metropolitan Water District and others to mitigate drought impacts.
Since it appears that California officials are leahing toward statewide mandatory water-use .
reductions, the member agencies of the SDCWA, including the CMWD, are requesting that
reductions be done in combination with an approach that would account for actual water
supplies and shortages in each region. With the diversified supply portfolio that the SDCWA and
its member agencies have developed, and with the public's continued conservation, the data
should show how prepared the region is for multiple-year droughts. While staff is hopeful that a
data-driven approach will be taken, the CMWD is already taking steps to meet the Governor's
request for a voluntary 15% cutback and is prepared to take any steps that are required in the
event of a state-wide mandated water reduction.
At the State Water Resources Control Board meeting on Sept. 21, 2021, the Board indicated that
they were analyzing data that would help them make decisions on the next steps that would be
taken and emphasized early communication over the next four months. They are working closely
with the resource agencies and the Department of Water Resources on plans for dealing with the
worst scenarios. Because of the many variables, plans can change quickly. The SDCWA and the
CMWD would like to be a part of the solution. As the SDCWA indicated in their communication to
the member agencies, the SDCWA is entering uncharted waters and needs everyone's support.
Long-Range Financing Plan
Another challenge to further decreasing water usage is its impact on the affordability of water.
As the water demand on the SDCWA decreases, the cost per unit of water to its member
agencies increases. During the recent preparation of the SDCWA's Long-Range Financing Plan
(LRFP), the member agencies have been expressing their concern that the LRFP does not discuss
the financial impact of the cutbacks since cutbacks will further decrease the reliance of each
member agency on the SDCWA water supply. Member agencies have been insisting that the
SDCWA needs to plan now for decreases in its water demand due to water conservation, local
supplies coming on-line, like the City of San Diego's Pure Water Project, and voluntary and
mandatory cutbacks due to the recent record-breaking drought.
The City of San Diego is the largest member agency of the SDCWA and recently wrote a letter
voicing its concerns on the LRFP and its impacts to their ratepayers (Attachment B). The City of
San Diego's concerns are similar to the CMWD's, with the exception of the "Maintain Existing
Policies with Respect to its Debt Service Coverage Ratio" section. At the SDCWA Board meeting
on Sept. 23, 2021, the Board voted to approve the LRFP, with the understanding that the SDCWA
would take six specific actions requested in the San Diego letter (Attachment C).
Board Memo -Governor's Executive Order on Voluntary Drought Measures (Districts -All)
Sept. 30, 2021
Page 4
Next Steps
Moving forward, it is likely that the SDCWA will be working with its member agencies and
providing more information on this challenge. Staff will provide the CMWD Board with follow-up
information in eight months, or sooner, if significant progress develops in this area:
Attachments: A. Board Memorandum dated July 29, 2021
B. City of San Diego letter to the SDCWA dated Sept. 15, 2021
C. Sept. 23, 2021, SDCWA Board Summary
cc: Geoff Patnoe, Assistant Executive Manager
Celia Brewer, General Counsel
Gary Barberio, Deputy City Manager, Community Services
Laura Rocha, Deputy City Manager, Administrative Services
Kristina Ray, Community & Engagement Director
Robby Contreras, Assistant General Counsel
· To the members pf the:
CITY COUNCIL
Date , I :2..'\ /.21 CA .:f._ cc _t_
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July 29, 2021
CMWD Board Memorandum
To: Carlsbad Municipal Water District Boa of Directors
From: Paz Gomez, Deputy City Manager, b ic Works ·
Vicki Quiram, General Manager
Via: Scott Chadwick, Executive Manag r
ATTACHMENT A
Ccarlsbad
Municipal Water District
Memo ID #2021147
Re: Governor's Executive Order on Vo untary Drought Measures (Districts -All)
This memorandum provides information on the State of California Executive Order N-10-21 on
voluntary drought measures.
Background
On April 21, 2021, and May 10, 2021, Governor Newsom issued Proclamations that declared a
State of Emergency in a total of 41 California counties due to severe drought and directed
immediate action. This summer, the state continues experiencing extremely dry conditions.
On July 8, 2021, Governor Newsom signed a third drought Emergency Proclamation (Attachment
A) and Executive Order N-10-21 (https://www.gov.ca.gov/wp-content/uploads/2021/06/6.ll.21-
EO-N-08-21-signed.pdf). The Executive Order expanded the state's drought declaration to 50 of
the 58 counties in Northern and Central California. In the Executive Order, Governor Newsom
also asked all Californians to voluntarily reduce water use by 15% from the 2020 levels.
Discussion
The San Diego region has not been placed in the state's drought emergency status. This region is
drought-safe this summer due to sound planning and decades-long ratepayer investments in new
water supplies, storage and adoption of water conservation as a way of life. However, the
Carlsbad Municipal Water District (CMWD) and the San Diego region want to continue to be a
part of the statewide effort to address water challenges in the state created by drought and
climate change.
For years, the CMWD has strongly supported water conservation in order to _allow local, regional
and state water agencies to maximize the availability of water supplies in years to come. The
CMWD has made significant strides to reduce water demands by promoting water conservation
programs (Attachment B). Staff is currently working with the San Diego County Water Authority
and its member agencies to implement new and additional strategies for water.conservation,
resiliency and local water supply development.
The CMWD has a reliable local supply of potable water from the Claude "Bud" Lewis Carlsbad
Desalination Plant and a recycled water supply from the Carlsbad Water Recycling Facility.
CMWD customers have helped conserve water by significantly reducing their per capita potable
Carlsbad Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 760-438-2722 t
Board Memo -Governor's Executive Order on Voluntary Drought Measures (Districts -All)
July 29, 2021
Page 2
water consumption. In fact, since the last drought period when urban water suppliers were
mandated by the Water Conservation Act of 2009 to reduce the per capita potable water
demands by 20% by the year 2020, CMWD's customers exceeded the target and reduced their
per capita use by approximately 48%. The CMWD is actively participating with other regional
water agencies and the Encina Wastewater Authority in a feasibility study and demonstration
project for a potable reuse project, referred to as North County One Water.
While no water shortages or conservation mandates are in the forecast for our region at this
time, there are simple steps customers can take to voluntarily cut back on water use. Attachment
B lists the many water conservation programs that are already in place to assist our customers
and businesses to save water. Customers can also visit watersmartsd.org for free residential and
commercial resources for landscape makeovers, turf replacement rebates, large landscape
efficiency incentives, WaterSmart tips and more.
Next steps
In addition to current conservation efforts, staff plan to implement the following:
• Participate in statewide efforts to determine unintended consequences if water use
becomes extremely low, including the effects on the operation of our sewer systems
• Promote the California Water Efficiency Partnership Program that offers steep discounts
to residents on Rachio R3 controllers that incentivize outdoor water use efficiency
I
• Promoting current and future water campaigns, the new one being, "We've Got This"
• The CMWD will partner with the Environmental Management team to host a
homeowners association high water usage webinar to explain the consequences of water
waste and provide tips on how to use water more efficiently
• The CMWD will host outreach "pop-up" events at different locations throughout the city
to educate the public on water use efficiency and its importance
• In May 2021, Governor Newsom proposed $5.1 billion in water resiliency investments
over four years to bolster the state's emergency drought response, build regional capacity
to endure drought and safeguard water supplies for communities, the economy arid the
environment. Staff will closely watch for funding opportunities. It is unclear at this time
how the funding will be distributed.
Attachments: A. Executive Order N-10-21 Emergency Proclamation
B. CMWD Water Conservation Programs Summary
cc: Geoff Patnoe, Assistant Executive Manager
Celia Brewer, General Counsel
Gary Barberio, Deputy City Manager, Community Services
Laura Rocha, Deputy City Manager, Administrative Services
James Wood, Environmental Management Director
Robby Contreras, Assistant General Counsel_
Eric Sanders, Utilities Manager
Mario Remillard, Meter Services Supervisor
Shoshana Aguilar, Senior Management Analyst
EXECUTIVE DEPARTMENT
STATE OF CALIFORNIA
EXECUTIVE ORDER N-10-21
ATTACHMENT A
WHEREAS communities across California are experiencing more frequent,
prolonged, and severe impacts of climate change including catastrophic
wildfires, extreme heat and unprecedentedly dry conditions that threaten the
health of our people, habitat for species and our economy; and
WHEREAS severe drought afflicts the American West and increasingly
warming temperatures driven by climate change exacerbate harmful drought
effects including disruption of drinking water and irrigation supplies, degradation
of fish and wildlife habitat, and heightened flammability of wildland vegetation;
and
WHEREAS on April 21 and May 10, 2021, I issued proclamations that a state
of emergency exists in a total of 41 counties due to severe drought conditions
and directed state agencies to take immediate action to preserve critical water
supplies dnd mitigate the effects of drought and ensure the protection of
health, safety, and the environment; and
WHEREAS today, I issued a further proclamation of a state of emergency
due to drought conditions in nine additional counties (Inyo, Marin, Mono,
Monterey, San Luis Obispo, San Mateo, Santa Barbara, Sa.nta Clara, and Santa
Cruz), and directed state agencies to take further actions to bolster drought
resilience and prepare for impacts on communities, businesses, and ecosystems;
and
WHEREAS drought conditions present urgent challenges, including the risk
of drinking water shortages in communities, greatly increased wildfire activity,
diminished water for agricultural production, adverse impacts on fisheries, and
additional water scarcity if drought conditions continue into next year; and
WHEREAS agriculture is an important economic driver in California that has
made significant investments in irrigation efficiencies such that nearly 70 percent
of the nation's farmland using drip and micro-irrigation is located in California,
and despite that investment, many agricultural producers are experiencing
severe reductions in water supplies and are fallowing land in response to current
dry conditions; and
WHEREAS action by Californians now to conserve water and to extend
local groundwater and surface water supplies will provide greater resilience if
the drought continues in future years; and
WHEREAS during the 2012-2016 drought, Californians did their part to
conserve water, with many taking permanent actions that continue to yield
benefits; per capita residential water use statewide declined 21 percent
between the years 2013 and 2016, and has remained on average 16 percent
below 2013 levels as of 2020; and ·
WHEREAS local water suppliers and communities have made strategic
and forward-looking investments in water recycling, stormwater capture and
reuse, groundwater storage and other strategies to improve drought resilience;
and
WHEREAS there is now a need to augment ongoing water conservation
and drought resilience investments with additional action to extend available
supplies, protect water reserves in case drought conditions extend to a third
year and maintain critical flows for fish and wildlife.
NOW THEREFORE, I. GAVIN NEWSOM, Governor of the State of California, in
accordance with the authority vested in me by the State Constitution and
statutes, do hereby issue the following order to become effective immediately.
IT IS HEREBY ORDERED THAT:
l) To preserve the State's surfac~ and groundwater supplies and better
prepare for the potential for continued dry conditions next year, and to
join existing efforts by agricultural water users, public water systems, and
governmental agencies to respond to water shortages, I call on all
Californians to voluntarily reduce their water use by 15 percent from their
2020 levels. Commonsense measures Californians can undertake to save
water and money include:
a. Irrigating landscapes more efficiently. As much as 50 percent of
residential water use goes to outdoor irrigation, and much of that is
wasted due to evaporation, wind, or runoff caused by inefficient
irrigation methods and systems. Watering one day less per week,
not watering during or immediately after rainfall, watering during
the cooler parts of the day and using a weather-based irrigation
controller can reduce irrigation water use, saving nearly 8,800
gallons of water per year.
b. Running dishwashers and washing machines only when full. Full
· laundry loads can save 15-45 gallons per load. Full dishwasher
cycles can save 5-15 gallons per load .
. c . Finding and fixing leaks. A leaky faucet that drips at the rate of one
drip per second can waste nearly 3,200 gallons per year.
d. Installing water-efficient showerheads and taking shorter showers.
Keeping showers under five minutes can save 12.5 gallons per
shower when using a water-efficient showerhead .
. e. Using a shut-off nozzle on hoses and taking cars to commercial car
washes that use recycled water.
The State Water Resources Control Board (Water Board) shall track and
report monthly on the State's progress toward achieving a 15-percent
reduction in statewide urban water use as compared to 2020 use.
2) State agencies, led by the Department of Water Resources and in
coordination with local agencies, shall encourage actions by all
Californians, whether in their residential, industrial, commercial,
agricultural, or institutional use, to reduce water usage, including through
the statewide Save Our Water conservation campaign at
SaveOurWater.com, which provides simple ways for Californians to
reduce water use in their everyday lives.
3) The Department of Water Resources shall monitor hydrologic conditions
such as cumulative precipitation, reservoir storage levels, soil moisture and
other metrics, and the Water Board shall monitor progress on voluntary
conservation as ongoing indicators of water supply risk that may inform
future drought response actions.
This Order is not intended to, and does not, create any rights or benefits,
substantive or procedural, enforceable at law or in equity, against the State of
California, its agencies, departments, entities, officers, employees, or any other
person.
IT IS FURTHER ORDERED that as soon as hereafter possible, this Order be
filed in the Office of the Secretary of State and that widespread publicity and
notice be given of this Order. -
IN WITNESS WHEREOF I have hereunto set
my hand and caused the Great Seal of the
State of California to be affixed this 8th day
of July 2 1.
ATTEST:
ATTACHMENT B
CMWD WATER CONSERVATION PROGRAMS SUMMARY
CMWD, a subsidiary district of the City of Carlsbad, serves about 85% of the city. The south and
southeastern portions of the city are served by the Olivenhain Municipal Water District
(Olivenhain) and Vallecitos Water District (Vallecitos). CMWD, along with Olivenhain and
Vallecitos, in partnership with the San Diego County Water Authority (Water Authority) and the
Metropolitan Water District of Southern California (MWD), offer programs to the residents of
our city to encourage the reduction of water use. All these programs can be accessed through
the Water Authority's WaterSmart website (www.watersmartsd.org//).
CMWD is also active in other various water conservation organizations that share information
and partner on programs as described below:
• Joint Public Information Council (JPIC) is a county-wide organization, which meets once
a month to discuss local water conservation issues and legislation. This organization is
sponsored by the Water Authority.
• California Water Efficiency Partnership is an organization made of water agencies
throughout California, which meets quarterly to discuss state conservation issues,
current and new water legislation.
• Alliance for Water Efficiency is a nationwide organization, which assists water agencies
with current and new water conservation issues on the federal level.
Incentive and Rebate Programs .
• High-Efficiency Clothes Washer Rebates -Residents may qualify for rebates through
WaterSmart and/or San Diego Gas & Electric (SDG&E), which can save over 3,000
gallons of water per year.
o https://socalwatersmart.com/en/residential/rebates/available-rebates/clothes-
washers/
o https:ljwww.sdge .com/residential/savings-center/rebates/rebates-your-home
• Premium High Efficiency Toilet Replacement Rebates -Residents may qualify for
rebates and can save over $800 on their annual water bill.
o https:ljsocalwatersmart.com/en/commercial/rebates/available-
rebates/commercial-devices/premium-high-efficiency-toilets/
• Rain Barrel Rebates and Discounts -The SoCal WaterSmart program provides financial
incentives to encourage customers to collect and re-use rainwater by purchasing rain
barrels or a cistern homeowners can get partial rebates on residential rain barrels (up to
two per home) or a cistern. The Solana Center for Environmental Innovation offers
discounted rain barrels that are also eligible for rebates.
o https://socalwatersmart.com/en/residential/rebates/available-rebates/rain-
ba rrels-cisterns/
o https://www.solanacenter.org/purchase-rain-barrel
• Water Smart Irrigation Checkup -A certified landscape irrigation auditor will survey and
provide written site-specific water-saving recommendations for qualifying non-
residential properties within the Water Authority's service area at no cost. Eligible
landscapes include commercial and industrial sites, homeowner association common
areas and institutional sites such as schools, parks and government facilities.
o https:ljwww.watersmartchecku p.org/
• Home Water Use Evaluations -A certified landscape irrigation auditor will survey and
provide written site-specific water-saving recommendations for qualifying residential
properties. The auditor will evaluate how the homeowner uses water both indoors and
outdoors. The auditor will also adjust the customers irrigation controller if needed.
o https ://www.watersmartsd.org/residential/incentives/
• Smart Irrigation Devices Rebates-A soil moisture sensor measures soil moisture
content in the active root zone on private properties. SoCal WaterSmart eligible soil
moisture sensor systems can receive significant rebates for large residential sites.
"Smart" or weather-based irrigation controllers can reduce water use outdoors. Unlike
standard timers that turn on sprinklers at set intervals, smart controllers use weather
data and site information such as plant type and sprinkler system output to adjust
watering times. Incentives start for residential sites with less than one acre of
landscaping and with landscapes of one acre or larger.
o https:ljsocalwatersmart.co m/en/residential/rebates/avai lable-
rebates/irrigation-controllers/
• Turf Replacement Program -This program rewards landscape designs that incorporate
water-saving plants, technology, irrigation systems and hardware. The result is a
beautiful bee-butterfly-and-bird attracting landscape that is sustainable and can save a
significant amount of wateL Turf replacement rebates of $3 per square foot are
available for residents in the Water Authority service area. The rebates include $2 per
square foot from the MWD, with an additional $1 per square foot from the Water
Authority, for up to 5,000 square feet of lawn converted in front or back yard.
o https://socalwatersmart.com/en/residential/rebates/available-rebates/t urf-
repl acement-program/
• Contractor Program
The WaterSmart Contractor Incentive Program offers several incentivized water-
efficient devices that when installed in combination, are among the irrigation industry's
best management practices. This program may be available for a limited time. Program
requirements, qualifying irrigation devices and rebate amounts are available.
o ·https://www.sdwatersmartcip.co m/
Landscape Education
• WaterSmart Landscaping in San Diego County is an on line plant finder. This interactive
gardening tool has thousands of pictures of plants and garden designs that are well-
suit ed to the southern California climate. You can take visual tours of beautiful, water-
efficient landscapes through photographs with links to plant information screens.
o http://www.watersmartsdlandscaping.org/
Educational Programs
• Splash Science Mobile Lab is a mobile lab that goes to schools to educate students in
grades four through eight. The students investigate through hands-on science
experiments how water pollution affects the environment and wildlife, while learning
why it is important to use water wisely.
o https://www.sdcwa.org/in-the-community/school s-students/?q=/assemblies-
mobile-splash-lab
• Virtual Assemblies are for grammar school students. The assemblies are designed to
teach students about how water is imported and how to use it wisely.
o https://www.sdcwa.org/in-the-community/schools-students/?q=/assemblies-
mobile-splash-lab
• Annual Calenda r Art Contest. Fourth graders from schools within the water district's
territory get an opportunity to win prizes by drawing water conservation themed picture
which may be on a yearly calendar provided by north county water agencies.
• Water Use Calculator-Calculate water use/water footprint tool is available. Home
water conservation is easy once you understand how and where you can use less. This
handy calculator takes individualized input by homeowners and shows which of their
water uses are efficient and which are not. It also offers tips that save water and
energy. The calculator quickly estimates how much water homes use indoors and
outdoors, then compares consumption to average and highly efficient homes in the
same area with same number of residents. It also suggests where to begin water-use
efficiency improvements.
o https://www.watercalculator.org/
• WaterSmart Landscape Makeover Program Workshops are free classes and coaching
from professionals that teach the basics on how to do a landscape makeover. Topics
include soil, design, turf removal, plant selection, planning, irrigation, rainwater
catchment and implementation, which are all the elements needed to convert high-
water-use turf to a beautiful, water-efficient landscape.
o https:ljland scapemakeover. watersmartsd.org/
• Quality Water Efficient Landscaper (QWEL)-On the WaterSmart website, people can
register for free local training courses that will result in Quality Water Efficient
Landscaper (QWEL) certification. Providing landscape professionals with 20 hours of
education on principles of proper plant selection for the local climate, irrigation system
design and maintenance, and irrigation system programming and operation.
o https://qwel.watersma rtsd.org/
o https://www.qwel.net/
• City of Carlsbad's Website -The City of Carlsbad's website (www.carlsbadca .gov)
provides information and education about water and conservation. "How To" articles
and videos provide information on subjects like how to read your water meter, how to
detect leaks in your home. Recycled water use is covered on the site, particularly how it
is produced and that it is a reliable source of water even in drought times. The site
encourages users of this water to use as much recycled water as they like, but conserve
as much potable water as they can. The site also gives information about current water
conservation rules and news about water issues and projects. Links to and from other
web sites make it easy to access other agencies programs.
Recycled Water Program
CMWD began its recycled water program in 1990 and is now a leader in the region with over
977 recycled water connections, more than any other water district in San Diego County. In
2020, 27% of CMWD's water supply was recycled water, which was wastewater treated at tlie
Carlsbad Water Recycling Facility or Meadowlark Water Reclamation Facility.
Each drop of recycled water used for irrigation and industrial uses saves the use of potable
water in the community. The city also buys 13% of the district's water supply as desalinated
water produced at the Claude "Bud" Lewis Carlsbad Desalination Plant, which is considered
local supply.
Agua Hedionda Lagoon Foundation (AHLF) Demonstration Garden
In the City of Carlsbad, the AHLF hosts the premiere native plant garden in North San Diego
County. Visitors can browse through the extensive California Native Plant Garden and
accompanying colorful and informative interpretive signage. The landscaping includes 800
native plants featuring over 60 different species. Visitors are welcome to roam through the
grounds and learn about California's beautiful low water use native flora.
Use of Technology for Customer Service
CMWD takes specific actions to assure that the distribution system is free of leaks and water
waste and utilizes new technology combined with excellent customer service to assist our
customers with conserving water. In addition, staff also maintains active memberships with
other groups that assist in water conservation efforts across the state and nation. Below is a
synopsis of CMWD's use of technology for conservation efforts.
• Supervisory Control and Data Acquisition (SCADA) -Among many other advantages of
using the SCADA system, it also allows staff to monitor the tanks and distribution system
and optimize the functioning of the system to ensure that no water is wasted and
CMWD purchases as little water as possible to meet the needs of the customers.
• Meter Replacement Program -CMWD has an asset management program to ensure
that meters are changed out when they have problems or are close to reaching their
useful life, which is approximately 20 years. When they are replaced, the new meters
use updated technology to ensure accuracy and recording of very low water flows. This
works in conjunction with our advanced meter technology and notification system,
which is described below.
Advanced Metering Infrastructure (AMI) and WaterSmartTechnology-In 2012, CMWD
began replacing traditional water meters with "smart meters" that enabled collection of
water usage information to be automated. Prior to that, CMWD staff needed to
manually read all 29,000 water meters each month to record usage for billing
purposes. CMWD has now completed the final stage of an AMI project. CMWD has also
installed a data analytics system c.alled WaterSmart which provides an early warning of
potential water leaks at homes and businesses.
CMWD is the first water district in the region to fully deploy this AMI and WaterSmart
technology and received the 2019 Project of the Year Award from the American Public
Works Association. The initial phase of the project allowed CMWD staff to collect water
use information by simply driving by each meter instead of manually inspecting and
reading each device. With installation of collectors and repeaters at strategic locations
throughout the city, water usage data can now be sent back to the CMWD office
wirelessly. The City of Carlsbad's hilly terrain sometimes limits the distance that the data
can travel so it is necessary to still read some meters with the drive-by meter reading
system.
WaterSmart works with the AMI system in that it extracts the read and water usage
data, then through the use of algorithms, presents leak and burst alarm data. The
system will also break down customer water usage between irrigation, clothes washing,
faucets, toilets and showers. Staff analyze the data daily and send emails to customers
that are shown to have high water usage, leaks or bursts so that they can be fixed
before any significant loss of water occurs.
Oftentimes, customers realize there could be a leak problem many days, weeks or
months after a leak has started, which usually occurs when they notice an increase in
their water bills. The new system gives real-time information to CMWD staff so they can
get in touch with the customer by email or phone and provide tips to help identify a
potential leak. Staff usually visit the property to make sure it is not a leak on CMWD's
side, contact the customer and assist them to find the leak if they are interested.
Staff does not fix leaks on private property but can lead them in the right direction
before water is lost. By notifying customers early, water loss is prevented and the
customer could save money by not paying for water loss. In addition to streamlining the
collection of water usage data, the new system automates the analysis of usage trends
and other information, calling out unusual patterns that could be signs of a leak.
Ordinances
Ordinance nos. 43, 44 and 45 each cover CMWD policies on providing potable water, recycled
water and water conservation rules. Some of.the ongoing water conservation prohibitions
include:
o Irrigate only between 6 p.m. and 10 a.m.
o Runoff from irrigation is prohibited
o No watering during or within 48 hours after a rain event
o Watering is permitted any time with a hand-held hose with a shut-off valve
o Repair all leaks within 5 days
Leak Verification Program
Matchpoint Leak Surveying is a program that ensures that distribution pipes are not leaking. In
2018, the initial survey of the potable water distribution system was completed. Industry
protocols call for a follow-up survey every two years after the initial survey. The reason is that
when the initial identifiable leaks are repaired, the increased pressure on leaks that are not
detectable will worsen. This ongoing monitoring also ensures that CMWD is within the
allowable leak parameters set by the State of California's Department of Water Resources
(DWR) for new long-term water conservation use legislation.
New Water Conservation Legislation/Regulations
·cMWD is involved in working with DWR and the State Water Res~urces Control Board (SWRCB)
on implementation of Governor Brown's Executive Order, Making Water Conservation a Way of
Life. The order calls for a Water Action Plan and a requirement that the state's water agencies
meet new water use targets that result from using water more wisely, eliminating water waste,
and improving agricultural water use efficiency. The DWR and SWRCB are working with
stakeholder agencies to develop the water efficiency use targets and regulations for
implementation of the order. Implementation may limit the amount of water that districts can
supply to their customers in the future.
Conceptual North County One Water Program
CMWD is also involved in preliminary discussions with the Encina Wastewater Authority (EWA)
Joint Powers Authority members on a potable water reuse project. The wastewater flows and
facilities from two coastal treatment facilities in North San Diego County (Encina Water
Pollution Control Facility (EWPCF) and the San Elijo Water Reclamation Facility (SEWRF))
represent a unique opportunity for large-scale production of purified water.
The EWPCF located in the City of Carlsbad could accommodate an advanced water purification
facility as it has key assets available for production of purified water such as an ocean outfall,
available land for advanced treatment, treated secondary effluent and technically capable staff.
The EWA and San Elijo Joint Powers Authority (SEJPA) have been working with multiple local
water agencies to develop the North County One Water Program, building on over a decade of
collaborative efforts in the region by the North San Diego Water Reuse Coalition.
With the combined flows, the North County One Water Program could supply an estimated
18,000 to 25,000 acre-feet or more of purified water overall for potable reuse by 2035. When
additional information becomes available, staff will provide more information to the City
Council and CMWD Board. It is included in the draft 2020 CMWD Urban Water Management
Plan {UWMP) as a conceptual project; however; the proposed amount of reductions will not be
included in the UMWP future demand forecast until the project is solidified. For the June 8,
2021 CMWD Board meeting, staff is planning to hold a public hearing to request CMWD Board
approval of the 2020 CMWD UWMP. ,
City Government Efforts
Carlsbad's city government serves as a good example in the region and implements water
conservation in the following ways:
• Uses recycled water at three golf courses and most of the city's community parks,
including the five largest parks, setting an example for the private sector and other
agencies including Legoland and schools
• Uses dozens of "smart controllers" and water efficient irrigation systems and is
continuing to upgrade its other irrigation controllers/systems
• Has seven artificial turf athletic fields and one artificial turf event area at its parks
• Installed low-flow toilets in about three-fourths of city facilities with plans to replace 44
more with low-flow models and 106 with dual-flush valves
• Installed waterless urinals in restrooms where increased maintenance is not an issue
with plans to replace 35 additional urinals with waterless models
• Installed water-saving models in most of the faucets in city facilities
• Has a water-efficient landscape ordinance that establishes requirements for planning,
design, installation and maintenance of water-efficient landscapes in new construction
• Uses drought-tolerant plants routinely in new landscaping
• Uses natural mulch routinely in landscaped planters to retain moisture in the soil
• Replaced hundreds of broadcast spray irrigation heads with more water-efficient stream
rotor spray irrigation heads
• Replaced designated decorative grass that is not irrigated with recycled water with
drought-tolerant landscaping
•· Stopped irrigating the property adjacent to the Cole Library which does not need it
September 15, 2021
General Manager Sandy Kerl
San Diego County Water Authority
4677 Overland Avenue
San Diego, CA 92123
Dear General Manager Kerl:
CITY OF SAN DIEGO
JAY G OLDSTONE
CHIEF OPERATING OFFICER
ATTACHMENT B
Thank you for the time you and your staff have spent with the City of San Diego (City) team
over the past few weeks. We've greatly appreciated further explanation of the information
contained in the 2021 Long-Range Financing Plan (LRFP).
The City serves 1.4 million ratepayers, making it the largest member agency of the San Diego
County Wate-r-Author.i.ty-(SDGWA), and-decisions-made-at-SDCWA-significantly-impact-our-
customers. Water purchased from SDCWA, like other member agencies, is the largest annual
non-personnel expense for the City.
Given the declining water sales environment facing SDCWA due to local supply development
and conservation by customers throughout the County, it is not only a worthwhile exercise,
but incredibly important to the City that each and every rate driver be thoroughly analyzed to
ensure rates are not escalating to a more unaffordable point on behalf of San Diegans. The
LRFP presents an opportunity for the SDCWA Board of Directors to determine key policies that
will govern financial decisions that ultimately impact our ratepayers. As such, I'm writing to
formally request the following amendments to the LRFP and associated actions to be taken by
SDCWA.
Incorporate Affordability in General Budgeting and Debt Policymaking
Southern California has some of the highest water rates in the country. What is outlined in the
high/low projections show that by 2031 1 SDCWA rates could increase by up to 66%. Given the
affordability challenges that exist throughout the County, the LRFP cannot be silent on its
impact to individual ratepayers and SDCWA must provide a plan for reviewing its expenditures
and resources with the goal of mitigating rate increases as much as possible. This will not
only ensure the fiscal sustainability of SDCWA, it will also ensure affordable access to clean
and safe drinking water for all San Diegans.
Maintain Existing Policies with Respect to its Debt Service Coverage Ratio ("DSCR")
In June 2021, SDCWA's Board approved a policy with a minimum DSCR of1.2x and target level
of 1.5x. However, the LRFP includes a proposal to treat the 1.5x target as the minimum target.
The City recommends the LRFP remain consistent with the recently approved Statement of
Debt Management and Disclosure Policy.
202 C STREET, 9TH FLOOR, MS 9A • SAN DIEGO, CALIFORNIA 92101
Increase Reporting to Determine Capital Funding Mix
The LRFP proposes an inversion of the debt/cash funding mix from the existing policy of 70%
debt/ 30% cash to 35% debt/ 65% cash for the next ten years. The last LRFP update was in
2015 and staff stated that SDCWA has not maintained the funding mix targets set forth; rather
SDCWA has been operating at a funding mix of approximately 20% debt/80% cash; vastly
different than the plan identified in the 2015 LRFP.
Instead of setting a target mix for the next ten years through the LRFP, the City recommends
that SDCWA prepare Five-Year Financial Projection Reports on a biannual basis that provide
more frequent monitoring and opportunities for transparent adjustment to the projected
debt/cash funding mix of the CIP program. Further supporting the need for increased
monitoring of the debt/cash mix, is the planned issuance of $170 million in new debt to fund
CIP program expenditures in the coming months that will result in a much higher percentage
of debt funding versus cash funding than the mix proposed in this LRFP; making the plan
already out of date for the next two to three fiscal years as the new debt proceeds are spent
down.
A clear and transparent understanding by the SDCWA Board on the funding mix is incredibly
important as cash funding of the CIP program would likely require more immediate cash
availability, posing concerns surrounding intergenerational equity, and could result in rate
spikes for member agencies, which are ultimately passed on to San Diegans.
Additionally, the City recommends preparation of the recommended Five-Year Financial
Projecfion Reports to-be proviaed-aurmg the m1d·-term budget cycle to serve as the framework
for the following year's budget development and rate setting processes. These new reports
would serve as a planning tool in assisting budget decisions by assessing impacts to revenues
and expenditures, and by exploring strategies to fund capital needs.
Third-Party Review and Timelines for Board Consideration
The City recommends that SDCWA retain as-needed, third-party consultant(s) to review cost
of service studies, rate designs, and the CIP planning and prioritization. The results of this
review will provide insight and additional information for the SDCWA Board of Directors,
member agencies, and the public. Additionally, the City recommends extending the period of
review for future financial planning documents, including the recommended Five-Year
Financial Projection Reports, budgets, and cost of service studies to allow for meaningful
engagement as was discussed during SDCWA's June Board meeting.
Explore Opportunities to Benefit from Take-or-Pay Contracts
Throughout the late 1990s and early 2000s, SDCWA was a pioneer in ensuring a reliable water
supply portfolio was developed for the County. These investments have greatly benefited the
region, but the future of our region's water demand looks very different today. Given that
water sales and water supply contracts account for 60% of SDCWA expenditures, the City
recommends SDCWA pursue opportunities to leverage the existing take-or-pay contracts.
Identifying transfer opportunities for these contracted supplies could result in rate-relief for
CWA member agencies, especially given the decline in both current and projected water sales
compared to the anticipated future water sales at the time the contracts were executed decades
ago.
I I
Provide Comprehensive Options for Addressing Expenditures
As SDCWA continues in its transition from an organization focused on constructing new
facilities to an organization focused on the operations and maintenance of existing facilities
(as noted in the LRFP) within an environment of declining sales, the City believes it is critical
to monitor both revenues and expenditures (operating and capital). Effective scrutiny of both
is a necessary exercise in ensuring the long-term financial sustainability of SDCWA, and in
ensuring the organization is meeting the needs of the member agencies it serves. The overall
intention of this recommendation to provide comprehensive options for addressing
expenditures is to ensure that public resources are planned, managed, and used as effectively
and efficiently as possible to preserve affordability for San Diegans.
Impacts of the LRFP by Rate Category
In addition to the recommended amendments to the LRFP outlined in this letter, the City
recommends that SDCWA provide an excel version of the rate model spreadsheet used in the
preparation of the LRFP that includes the projected impact to each rate category to all member
agencies and the Board of Directors.
Thank you for your time and attention to this important issue. Please reach out with any
questions you may have.
Sincerely,
Goldstone
Chief Operating Officer
City of San Diego
cc: Honorable Mayor Todd Gloria
San Diego County Water Authority Board of Directors & General Managers
Matthew Vespi, Chief Financial Officer
Alia Khouri, Deputy Chief Operating Officer
Lakshmi Kommi, Director, Debt Management Department
Shauna Lorance, Director, Public Utilities Department
Ally Berenter, Senior Manager, External Affairs & Water Policy
8.1
8.2
8.3
8.4
8.5
/JA. Our Region's Trusted Water Leader
~ San Diego County Water Authority
ATTACHMENT C
SU:Ml\1ARY OF FORMAL BOARD OF DIRECTORS' MEETING
SEPTEMBER 23, 2021
Monthly Treasmer's Repo1t on mvestments and Cash Flow.
The Board noted and filed the Treasurer's rep01t.
Agreement with Oracle USA, Inc. to renew the Enterprise Resource Planning System
software annual maintenance and suppo1t agreements.
The Board authorized the General Manager to renew the Enterp1ise Resource
Planning System software annual maintenance and suppo1t agreements with Oracle
USA, me. for two years at a total cost of$623,274.35.
Adopt the Water Authority's 2021 Long-Range Financing Plan.
The Board adopted the Water Autho1ity's 2021 Long-Range Financing Plan including the
following: 1) Include within the Long-Range Financing Plan (LRFP) document, the
following: a) A section regarding affordability and the impact SDCW A rates have upon
individual ratepayers, and that SDCW A will provide a plan for reviewing its expenditures
and resources with the goal of mitigating rate increases as much as possible; and, b) Keep
the cmTent legal Debt Se1vice Coverage Ratio at 1.2x and leave the target level at 1.5x; 2)
Dming the mid-te1m budget cycle, beginning in Fiscal Year 2023, SDCWA will prepare a
Five-Year Financial Projection to serve as a
framework for the following year's budget development and rate setting processes. As
part of this process SDCW A will info1m the Board_ as to the actual cash to debt mix and
will take into consideration not only the impact on CW A's ratings, but also the
intergenerational equity; 3) SDCWA will retain as-needed, third-paity consultant(s) to
review cost of se1vice studies, rate designs, and the CIP planning and prio1itization; 4)
SDCWA will provide an excel version of the rate model spreadsheet used in the
preparation of the LRFP that includes the projected impact to each rate category to all
member agencies and the Board of Directors; 5) SDCWA will work to identify transfer
opportunities for its contracted water supplies given the changing demand climate, and
provide an update to the Board of Directors; and 6) SDCW A to request the same from
MWD.
Reimbursement Agreement with City of Poway for design of the new treated water
connection and Poway 5 Flow Control Facility.
The Boai·d autho1ized the General Manager, or designee, to execute the design
reimbursement agreement with the City of Poway for suppo1ting the new treated water
connection and Poway 5 Flow Control Facility.
Contract with Southwest Valve & Equipment, mc. to purchase butterfly valves.
The Board auth01ized the General Manager, or designee, to awai·d a contract to Southwest
Valve & Equipment, me. to purchase two 72-inch butterfly valves in the amount of
$646,868.75 for the Pipeline 5 Relining from Twin Oaks Valley Road to Crossover
Pipeline Turnout project.
/JJ/;,,. Our Region's Trusted Water Leader (W San Diego County Water Authority
8.6 Closed Session.
The Board approved the General Manager or her designee agreeing to the following
condition: If there is federal money available to pay for the potential project, CVWD and
the Water Authority_ get first p1iority on that funding if it requires matching funds, but the
Indian Water Autho1ity gets first p1iority on any federal funding that does not require
matching funds (up to the amount of their obligation).
8.7 Approval of Minutes.
The Board approved the minutes of the Special Administrative and Finance Committee
meeting of August 12, 2021 and the Fo1mal Board of Directors' meeting of August 26,
2021.
2