Reso 1388-01/2012RESOLUTION NO. 1388
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT SUPPORTING THE
SAN DIEGO COUNTY WATER AUTHORITY'S LAWSUIT AGAINST THE
METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
WHEREAS, San Diego County's $186 billion economy and 3.1 million people
depend upon the San Diego County Water Authority (SDCWA) for approximately 75
percent of all water used in the region; and
WHEREAS, the SDCWA purchases nearly 50 percent of the region's water
supply from the Metropolitan Water District of Southern California (MWD) and pays
MWD a transportation charge to transport another 25 percent of the region's water
supply the SDCWA obtained through water conservation achieved through a historic
water transfer agreement with the Imperial Irrigation District (IID) and by lining the All
American & Coachella canals; and
WHEREAS, MWD has approved water rate increases totaling 75% since 2006;
and
WHEREAS, MWD's water rate structure misallocates the vast majority of its own
water supply costs to the water transportation rates charged to the SDCWA to transport
the IID and canal lining supplies, resulting in an overcharge of $31 million to San Diego
County Ratepayers in 2011 and illegal subsidies to each of the 25 other member
agencies of MWD; and
WHEREAS, these overcharges are estimated to reach as much as $230 million
annually by the year 2021, and amount to as much as $2.1 billion over 45 years; and
WHEREAS, on June 11, 2010, the SDCWA filed a lawsuit against MWD,
challenging MWD's 2011 and 2012 water rates, which is currently pending in the San
Francisco Superior Court as Case No. CPF-10-510830; and
WHEREAS, on October 27, 2011, the SDCWA successfully amended its lawsuit
to assert additional claims against MWD alleging that MWD took additional unfair and
punitive actions that negatively impact the SDCWA and San Diego County ratepayers;
and
WHEREAS, the Vallecitos Water District and SDCWA require MWD Board
policies that make water available at an affordable cost, fairly and lawfully apportioned
among its rate categories and among the member agencies of MWD.
Resolution No. 1388 Page 2
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the
Vallecitos Water District supports the SDCWA lawsuit and the SDCWA's ongoing efforts
to secure a reliable water supply and transportation rates from MWD at affordable,
lawful and equitable prices.
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Vallecitos Water District at a regular meeting held on the 18th day of January, 2012, by
the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
FERGUSON, HERNANDEZ, POLTL, SHELL, GENTRY
196111APA C>: PR -6—V\
Darrell Gentry, President
Board of Directors
Vallecitos Water District
ATTEST:
Dennis O. Lamb, Secretary
Board of Directors
Vallecitos Water District