East San Gabriel Final Water MSR (June 2005)

FINAL MUNICIPAL SERVICE REVIEW Water Service – East San Gabriel Valley Prepared for: Local Agency Formation Commission of Los Angeles County 700 North Central Avenue, Suite 350 Glendale, CA 91203 Prepared by: Dudek and Associates, Inc. 605 Third Street Encinitas, CA 92024 June 29, 2005 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley TABLE OF CONTENTS Section 1.0 EXECUTIVE SUMMARY..................................................................................................................1 2.0 AGENCY PROFILES.......................................................................................................................8 3.0 ANALYSIS.....................................................................................................................................29 3.1 Growth and Population.................................................................................................................29 3.1.1 Growth/Population Projections..........................................................................................29 3.2 Infrastructure Needs and Deficiencies........................................................................................33 3.2.1 Water Supply/Demand......................................................................................................34 3.2.2 Water System Infrastructure.............................................................................................39 3.3 Financing Constraints and Opportunities...................................................................................46 3.3.1 Revenue Source and Funding..........................................................................................46 3.3.2 Revenues and Expenses Comparison..............................................................................46 3.4 Cost Avoidance and Shared Facilities Opportunities................................................................50 3.5 Management Efficiencies..............................................................................................................53 3.6 Rate Restructuring........................................................................................................................55 3.7 Government Structure Options....................................................................................................58 3.8 Local Accountability and Governance........................................................................................60 4.0 DETERMINATIONS.......................................................................................................................64 Azusa Light & Water........................................................................................................................64 City of Covina..................................................................................................................................66 City of Glendora..............................................................................................................................68 City of Industry................................................................................................................................70 City of La Verne...............................................................................................................................71 City of Pomona................................................................................................................................72 La Puente Valley County Water District..........................................................................................74 Rowland Water District....................................................................................................................76 Three Valleys Municipal Water District............................................................................................78 Valley County Water District............................................................................................................80 Walnut Valley Water District............................................................................................................81 June 29, 2005 – Final Report TOC-2 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 1.0 EXECUTIVE SUMMARY The East San Gabriel Valley MSR study area includes the East San Gabriel Valley, Pomona Valley and Walnut Valley. The area is characterized by urban development with residential being the predominant land use. Some areas along the major transportation corridors have more concentrated commercial industrial use such as in the City of Industry. The area is served by eleven public water agencies and several private water companies. Historically groundwater has been the primary source of water supply for this region as the area overlies four adjudicated groundwater basins. However years of heavy industrial use has led to severe groundwater contamination. Today imported water is used more extensively and recycled water systems have been developed to offset potable demand for industrial and irrigation use. SUMMARY OF DETERMINATIONS 1. Growth and Population The region has approximately 580,000 people. Growth is expected to be slow to moderate with an average annual growth rate of around 1%. This would yield 20% growth over the next twenty years, which is in keeping with the overall expected growth rate for Los Angeles County. Most agencies stated that their service areas were at or near build-out and growth would come from infill and redevelopment. Several agencies noted a trend towards converting single family residences to multi- family units but did not expect this will have a major impact on future water demand. There are areas of potential development; in particular the southern portion of the Rowland Water District which is currently undeveloped. A major new community with 3,000 to 3,600 homes is being planned for that area. 2. Infrastructure Needs and Deficiencies The water supply for the region is provided by groundwater from the Main San Gabriel, Chino, Spadra and Six Basins groundwater basins, imported water, a small increment of surface water, and recycled water. The Puente Basin is contaminated and the two agencies with water rights (Rowland Water District and Walnut Valley Water District) are using imported water rather than treating groundwater. The Main San Gabriel, Chino, Six Basins and Puente Basins are all adjudicated, and the Watermasters are responsible for managing the condition of the basins and setting the Safe Operating Yield and pumping entitlements. The Main San Gabriel Basin is recharged by the San Gabriel Valley Municipal Water District, Three Valleys Municipal Water District, and the Upper San Gabriel Valley Municipal Water District, as well as by local surface water, stormwater runoff, and infiltration from overlying uses. The Three Valleys Municipal Water District is evaluating the recharge opportunities and benefits for Six Basins, Chino and Puente. June 29, 2005 – Final Report 1 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Agencies within the Main San Gabriel Basin which regularly extract more than their entitlement are required to purchase replacement water that is recharged back into the basin, on a gallon per gallon basis. The Watermaster oversees this process to ensure that overdrafting is remediated. Groundwater quality is a critical concern for the region. The US EPA has identified five sites within the San Gabriel Valley that have been included on the Superfund list. The treatment processes and facilities are expensive; however the agencies within the Baldwin Park Operable Unit have reached a settlement agreement with the responsible parties. The costs related to the construction of extraction, treatment and distribution facilities have been reimbursed and the La Puente Valley Water District will receive annual reimbursement for the operations and maintenance costs of the District’s water treatment facility. The San Gabriel Basin Water Quality Authority provides regional planning and leadership in groundwater cleanup. The Authority has championed the effort and been instrumental in bringing over $100 million into the region for clean up projects. Recycled water is produced at three plants operated by the Sanitation Districts of Los Angeles County. Recycled water is sold by the City of Industry, City of Pomona, Rowland Water District and Walnut Valley Water District. Some agencies are also using untreated groundwater to augment recycled supply for industrial/irrigation use. Overall, water supply is adequate to meet the future needs of the region provided imported water remains available and recycled water systems continue to expand. The reliability of State Water Project water is fairly certain, although the delivery amount varies. The Three Valleys Municipal Water District works closely with the Metropolitan Water District of Southern California to manage this resource and plan for future demand. In turn, Three Valleys and the local agencies in the East San Gabriel Valley collaborate on water resource planning and development of local resources. 3. Financing Constraints and Opportunities The primary sources of revenue for the agencies in the East San Gabriel Valley are water sales and service charges and interest income. Five of the special districts (Three Valleys, La Puente Valley, Rowland, Walnut Valley and Valley County) receive property tax revenue as well. The ERAF III reduction included in the State Budget Act of 2004 will result in a total decrease of approximately $1,638,000 for these agencies in FY 2004-2005. The agencies have adequate reserves, and some have adopted policies designating reserves for specific purposes such as capital replacement and debt service. Some of the agencies are using a “pay as you go” approach and others have used long-term debt to finance infrastructure improvements. June 29, 2005 – Final Report 2 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 4 and 5. Cost-Avoidance Opportunities and Opportunities for Shared Facilities Most agencies are avoiding future costs through proactive management of their water supply, conservation programs, and developing recycled water systems where it is cost-effective. Pomona, the Walnut Valley Water District and the Rowland Water District share the Joint Water Line which delivers imported water to the three agencies. The Miramar Water Treatment Facility is jointly owned by the Three Valleys Municipal Water District, the City of La Verne, and the Southern California Water Company. The agencies are participating in the management of the groundwater basins and in developing local resources to reduce dependency on imported supply. 6. Management Efficiencies The agencies are using a number of methods to achieve management efficiencies including performance measurements and workload tracking. The Three Valleys Municipal Water District has developed several studies to guide the District’s future operations, such as an Action Plan and a Strategic Plan. The Industry Public Works Commission has contracted with the La Puente Valley County Water District to manage and operate the City’s water system. This is expected to be cost-effective and improve efficiency. All of the agencies that are required to do so have current Urban Water Management Plans, with the exception of the City of La Verne. The Plans are required to be updated in 2005 and will include important data and projections which LAFCO may use to evaluate future proposals; the agencies should be encouraged to comply with the regulations. Four municipal water districts – Foothill, San Gabriel Valley, Upper San Gabriel Valley, and Three Valleys – have completed a study that explored opportunities for increased efficiency and improved service. A list of goals has been developed and the agencies have begun work on implementation. These goals should be shared with the other water agencies in the West San Gabriel Valley as a point of information as well as a potential model for other agencies to follow. 7. Opportunities for Rate Restructuring Rate structures range from flat or two-tiered to multi-tiered depending on usage and service zones. All of the agencies have increased rates within the past few years. The City of Covina’s rate structure is based on water supply conditions with rates automatically increasing when the water supply diminishes. June 29, 2005 – Final Report 3 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley A comparison of monthly rates based on a 5/8”meter and 20 CCF of water indicate that majority of the districts are within a common range of $29.82 to $39.11. The Valley County Water District has the lowest rate at $18.18. 8. Government Structure Options Some government structure options were noted: • The City of Azusa is a member agency of the San Gabriel Valley Municipal Water District; however there are currently areas of Azusa that are not within the sphere of the District. • Azusa Light & Water is providing out of agency service to part of the Cities of Covina, Glendora, Irwindale, West Covina and unincorporated areas. • The City of Pomona provides out-of-agency service to the Scenic Ridge area of Chino Hills. • The City of Pomona and the Rowland Water District provide service to portions of the Walnut Valley Water District service area. One of the areas Pomona serves is within its city boundaries. LAFCO should consider revising the boundaries of the Walnut Valley Water District to exclude areas being served by other agencies. • The Valley County Water District’s service area map differs from LAFCO’s map in some areas; this should be reconciled in the sphere review. • The Three Valleys Municipal Water District supplies imported water to retail agencies outside of its boundaries. These areas should be identified for LAFCO’s information when conducting sphere reviews. Per Government Code §56133 (e), out of agency agreements that were in place prior to January 1, 2001 do not require LAFCO approval. The cities and special districts should identify out-of-agency service areas for LAFCO’s use during sphere of influence updates. 9. Local Accountability and Governance The agencies are locally accountable and demonstrating good governance practices. All of the cities have websites and most of the special districts do as well. Azusa Light & Water is governed by the Azusa Utility Board. The City of Industry Public Utilities Commission has management control and authority over the City of Industry Waterworks System. Both are comprised of City Council members from their respective cities. The Glendora Water Commission oversees the Water Division’s funds and makes recommendations to the City Council on water rates and policy. Commissioners are appointed by the City Council to serve four-year terms. The Boards of Directors are all filled with the exception of one vacancy on the Valley County Water District Board. Following is a map of the East San Gabriel Valley region and a schematic depicting the water supply for the study area. June 29, 2005 – Final Report 4 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley INSERT MSR STUDY AREA MAP June 29, 2005 – Final Report 5 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley June 29, 2005 – Final Report 6 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley NOTE In the following service review report, the abbreviations NP (Not Provided) and NA (Not Applicable) have been used in some charts and figures. During the service review process all agencies were contacted and all agencies were sent a Request for Information (RFI). In instances where complete data was not supplied in response to the RFI, agencies were called. A diligent effort was made to obtain adequate information on each agency, whether directly or through public information sources. The lack of data in these instances does not materially detract from the cumulative conclusions of the report. In instances where NA has been used, the specific information was not applicable to the agency due to size, service area or services provided. June 29, 2005 – Final Report 7 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 2.0 AGENCY PROFILES Water service within the East San Gabriel Valley MSR study area is provided by eleven public agencies as shown below in Table 2.1 – East San Gabriel Valley Water Agencies. Private water purveyors include the Southern California Water Company, the San Gabriel Valley Water Company, the Covina Irrigating Company, Valencia Heights Water Company and South West Suburban Water System; these companies are not under LAFCO purview. Summaries, profiles and service area maps of the individual agencies follow. Table 2.1 – East San Gabriel Valley Water Agencies Los Angeles LAFCO Water District Service Review Agencies June 29, 2005 – Final Report 8 retaW elbatoP citsemoD liateR retaW elaselohW tnemtaerT retaW retaW delcyceR tnemeganaM retawdnuorG EAST SAN GABRIEL VALLEY REGION City of Azusa (Azusa Light & Water) ● ● City of Covina ● City of Glendora ● ● ● City of Industry ● ● City of La Verne ● ● City of Pomona ● ● ● ● ● La Puente Valley County Water District ● ● Rowland Water District ● ● Three Valleys Municipal Water District ● ● ● Valley County Water District ● ● Walnut Valley Water District ● ● ● – CITIES – Azusa Light & Water Azusa Light & Water is the largest municipal-owned utility in the San Gabriel Valley, with an 18 square mile service area that extends beyond the City’s boundaries. In 1993 the City acquired the Azusa Valley Water Company with a service area that included parts of Covina, Glendora, Irwindale, West Covina, and other unincorporated areas. The two primary water sources are groundwater from the Main San Gabriel Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Basin and surface water from the San Gabriel River. The City is a member of the San Gabriel Valley Municipal Water District which provides required replacement water for the City; and the service area of Azusa Valley Water Company outside of the City’s boundary receives replacement water from the Upper San Gabriel Valley Municipal Water District. City of Covina The City of Covina provides water service to 5.16 square miles, a portion of the City’s incorporated area. Other water purveyors include Azusa Light & Water, Southern California Water Company, Suburban Water System, and Valencia Heights Water Company. The City obtains all of its supply from the Covina Irrigating Company, in which it is a stockholder. The Covina Irrigating Company water supply includes surface water from the San Gabriel River and imported water provided by the Three Valleys Municipal Water District. City of Glendora The City of Glendora’s water service area encompasses 10.2 square miles and includes the area within the City’s corporate boundaries, three areas of unincorporated area in Los Angeles County, and small portions of the Cities of San Dimas and Azusa. The City is bounded by the Cities of Azusa, Covina and San Dimas with the Angeles National Forest to the north. The City has pumping rights to the Main San Gabriel Basin and also imports water through the Three Valleys Municipal Water District. City of Industry The City of Industry Waterworks System provides water to a portion of the City’s incorporated area. Other purveyors include the Walnut Valley Water District, the San Gabriel Valley Water Company, Rowland Water District, South West Suburban Water System, and La Puente Valley County Water District. The City relies on potable water purchased from the San Gabriel Valley Water Company and recycled water for its supply. The system is managed by the La Puente Valley County Water District. City of La Verne The City of La Verne provides water service to a 9.6 square mile area. The City’s water supply is drawn from the Six Basins groundwater basin and imported through the Three Valleys Municipal Water District. The City is part owner of the Miramar Water Treatment Plant, along with Three Valleys and South West Suburban Water System. City of Pomona The City of Pomona provides water service to a 22.85 square mile area which includes the majority of the City’s incorporated area; a small portion of the City is served by the Southern California Water Company and the Walnut Valley Water District serves a 300-acre area north of Valley Boulevard and west of Temple Avenue. The City’s water supply comes from groundwater in the Chino Basin, Spadra Basin and June 29, 2005 – Final Report 9 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Six Basins, surface water from the San Antonio Canyon Watershed, and imported water provided by the Three Valleys Municipal Water District. The City delivers recycled water provided by the Los Angeles County Sanitation Department’s Pomona Treatment Plant. – SPECIAL DISTRICTS – La Puente Valley County Water District The La Puente Valley County Water District serves a 2.5 square mile area that includes the City of La Puente, portions of the City of Industry, and adjacent unincorporated areas of Los Angeles County. The District obtains its supply from groundwater extracted from the Main San Gabriel Basin. Rowland Water District The Rowland Water District has a 17.2 square mile service area that encompasses portions of Rowland Heights, La Puente, Hacienda Heights, the City of Industry and the City of West Covina. Potable supply is provided by the Three Valleys Municipal Water District. The District has rights to the Puente Groundwater Basin but contaminant levels are too high for potable use. The District has developed a recycled water program using groundwater for industrial and irrigation use. Three Valleys Municipal Water District The Three Valleys Municipal Water District service area encompasses a 133.3 square mile area that includes the East San Gabriel, Pomona and Walnut Valleys. The District is a member agency of the Metropolitan Water District of Southern California (Metropolitan) and wholesales imported water to the following purveyors within its service area: Cities of Azusa, Covina, Glendora, La Verne and Pomona, the Rowland Water District, the Walnut Valley Water District and other private water companies. The District provides wholesale water to the Cities of Claremont and San Dimas via the Southern California Water Company. The District administers the Six Basins Watermaster and provides groundwater recharge to the Main San Gabriel Basin. The District’s role in the region has changed over the past several years as water supply conditions have changed. The District now facilitates inter-agency water planning, local exchanges and transfers, water conservation, and other projects to help the region’s agencies manage all available water supplies as efficiently and economically as possible. Valley County Water District The Valley County Water District provides retail water to approximately 58,040 people within a 10 square mile area. Its service area includes portions of Irwindale, West Covina, and Azusa. Its main source of supply is groundwater drawn from the Main San Gabriel Basin; it has the ability to obtain imported supply through the Upper San Gabriel Valley Municipal Water District if needed. June 29, 2005 – Final Report 10 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Walnut Valley Water District The Walnut Valley Water District boundaries encompass 29.6 acres, including all of the City of Diamond Bar; portions of the Cities of Walnut, Industry, West Covina and Pomona; and the eastern portion of the unincorporated Rowland Heights area. The District overlies the Puente Basin and extracts some groundwater for recycled water use but relies on imported water provided by the Three Valleys Municipal Water District for potable supply. The District wholesales recycled water to the Rowland Water District and potable water to South West Suburban Water System, a private purveyor. June 29, 2005 – Final Report 11 INSERT MAP WITH ALL CITIES June 29, 2005 – Final Report 12 Azusa Light & Water Agency Information Service Area Information Address: 729 W. Azusa Ave. Service Area 18 sq miles Azusa, CA 91702 Population Served: 115,000 Contact: Chet Anderson, Asst. Director of Projected Population: Utilities- Water Operations 2010 120,000 Phone: (626) 812-5209 2015 120,000 Email/Website: canderson@ci.azusa.ca.us 2020 120,000 www.azusalw.com 2025 120,000 Type: Retail Water System Information No. of Employees 22 No. of Connections per Employee 1,000 Average Daily Demand (MGD) 22 Maximum Day Demand (MGD) 30 No. of filed Complaints in 2002-2003 NP Miles of Pipe 300 No. of Pump Stations 7 No. of Pressure Zones 5 Storage Capacity 29 MG Financial Information (FY 2003-2004 budget – Water Operations/Water Capital Funds) Revenues: $15.6 M Expenses: $10 M Reserves: $19 M CIP: $6 M Typical Monthly Residential Water Bill (5/8” meter, 20 CCF) Meter Charge $11.22 Water Charge: <17 $.798 / $1.26 Monthly Bill: $ 31.09 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 24,600 0 0 24,600 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 2,540 0 0 2,540 Total 27,140 0 0 27,140 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 0 0 0 0 0 Groundwater* 19,500 23,800 24,000 24,000 24,000 Surface 2,100 2,300 4,000 4,000 4,000 Recycled 0 0 0 0 0 Total 21,600 26,100 28,000 28,000 28,000 *Groundwater Source: Main San Gabriel Basin Average Annual Demand Information (AF/Yr)* Existing 2005 2010 2015 2020 Residential 11,500 12,000 13,000 13,000 13,000 Comm/Ind. 7,360 7,500 8,000 8,000 8,000 Recycled 0 0 0 0 0 0ther 4,140 4,200 4,400 4,400 4,400 Total 23,000 23,700 25,400 25,400 25,400 June 29, 2005 – Final Report 13 City of Covina Agency Information Service Area Information Address: 125 E. College Street Service Area 5.16 sq miles Covina, CA 91723 Population Served: 50,298 Contact: Paul Philips, City Manager Projected Population: Phone: (626)858-7212; (626) 858-7208 fax 2010 52,862 Email/Website: mecatani@ci.covina.ca.us 2015 56,013 www.ci.covina.ca.us 2020 59,122 Type: Retail Water 2025 62,099 System Information No. of Employees 11.25 No. of Connections per Employee 669 Average Daily Demand (MGD) NP Maximum Day Demand (MGD) NP No. of filed Complaints in 2002-2003 42 – water quality, taste, odor Miles of Pipe 100 No. of Pump Stations NP No. of Pressure Zones 5 Storage Capacity 17.3 MG Financial Information (FY 2003-2004 budget – Water Utility/Water Capital Funds) Revenues: $4,622,850 Expenses: $4,582,750 Reserves: $1,770,190 CIP: $715,000 Typical Monthly Residential Water Bill (5/8” meter, 20 ccf) Meter Charge $10.82 Water Charge: $18.60 Monthly Bill: $34.04 (inc. CIP chg) Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 7,500 872 0 8,372 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other (Fire Line) 28 9 0 37 Total 7,528 881 0 8,409 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 21 500 500 500 500 Groundwater 0 0 0 0 0 Surface* 7,324 7,010 7,142 7,295 7,451 Recycled 0 0 0 0 0 Total 7,345 7,510 7,642 7,795 7,951 *Covina Irrigating Company: San Gabriel River Average Annual Demand Information (AF/Yr)* Existing 2005 2010 2015 2020 Residential 4,934 4,957 4,977 4,997 5,017 Comm/Ind. 1,842 1,856 1,870 1,884 1,900 Landscape/Irr 236 238 240 241 243 Other 329 450 450 450 450 Total 7,344 7,501 7,537 7,572 7,610 Demand projections based on population of 35,175 (2005) to 42,112 (2020) June 29, 2005 – Final Report 14 City of Glendora Agency Information Service Area Information Address: 116 E. Foothill Blvd. Service Area 10.2 sq miles Glendora, CA 91741 Population Served: 53,978 Contact: Dianne Walter, Senior Planner Projected Population: Phone: (626)914-8218; (626) 914-9053 fax 2010 58,055 Email/Website: dwalter@ci.glendora.ca.us 2015 58,930 www.ci.glendora.ca.us 2020 59,789 Type: Retail Water 2025 61,403 System Information No. of Employees NP No. of Connections per Employee NP Average Daily Demand (MGD) NP Maximum Day Demand (MGD) 22.3 MGD No. of filed Complaints in 2002 175 (2002 – low pressure and water quality) Miles of Pipe 196 No. of Pump Stations 23 No. of Pressure Zones 3 Storage Capacity 33.97 MG Financial Information (FY 2003-2004 budget) Revenues: $8,609,316 Expenses: $8,100,059 Reserves: $6,556,053 CIP: $8,184,664 Typical Monthly Residential Water Bill (5/8” meter, 20 ccf) Meter Charge $11.22 Water Charge: $22.40 Monthly Bill: $33.62 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 13,500 0 0 13,500 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 13,500 0 0 13,500 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 2,580 NP NP NP NP Groundwater* 11,172 NP NP NP NP Surface 0 NP NP NP NP Recycled 0 NP NP NP NP Total 13,752 NP NP NP NP *Groundwater Source: Main San Gabriel Basin Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential NP NP NP NP Comm/Ind. NP NP NP NP Landscape/Irr NP NP NP NP Other NP NP NP NP Total 13,944 NP NP NP NP June 29, 2005 – Final Report 15 City of Industry Agency Information Service Area Information Address: 112 N. First Street Service Area 12 sq miles La Puente, CA 91744 Population Served: 796 Contact: Michael J. Berlien, General Manager Projected Population: (La Puente Valley County WD) 2010 5,400 Phone: (626)330-2126; (626) 330-2679 fax 2015 5,508 Email/Website: mberlien@lapuentewater.com 2020 5,618 www.cityofindustry.org 2025 5,703 Type: Retail Water System Information No. of Employees Operated and managed by La Puente Valley CWD No. of Connections per Employee NA Average Daily Demand (MGD) 1.39 MGD Maximum Day Demand (MGD) 2.1 MGD No. of filed Complaints in 2002 4 (turbidity) Miles of Pipe 3.2 No. of Pump Stations 4 No. of Pressure Zones 3 Storage Capacity 6.8 MG Financial Information (FY 2005-2006 budget) Revenues: $1,920,055 Expenses: $1,626,833 Reserves: NA CIP: $175,000 Typical Monthly Residential Water Bill (5/8” meter, 20 ccf) Meter Charge $9.50 Water Charge: $26.00 Monthly Bill: $35.50 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 1,800 0 0 1,800 Agriculture 0 0 0 0 Recycled 1 0 0 1 Other 0 0 0 0 Total 1,801 0 0 1,801 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 1,563 NP NP NP NP Groundwater* 0 NP NP NP NP Surface 0 NP NP NP NP Recycled 950 NP NP NP NP Total 2,750 NP NP NP NP *Groundwater Source: Main San Gabriel Basin Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 1,600 NP NP NP NP Comm/Ind. 0 NP NP NP NP Landscape/Irr 950 NP NP NP NP Other 0 NP NP NP NP Total 2,750 NP NP NP NP June 29, 2005 – Final Report 16 City of La Verne Agency Information Service Area Information Address: 3660 “D” Street Service Area 9.6 sq miles La Verne, CA 91750 Population Served: 34,854 Contact: Alex Ramirez, Principal Planner Projected Population: Phone: (909)596-8706; (909) 596-8737 fax 2010 37,430 Email/Website: aramirez@ci.la-verne.ca.us 2015 37,430 www.ci.la-verne.ca.us 2020 37,430 Type: Retail Water 2025 37,430 System Information No. of Employees 35 No. of Connections per Employee 246 Average Daily Demand (MGD) 7.60 Maximum Day Demand (MGD) 13.47 No. of filed Complaints in 2002 0 Miles of Pipe 140 No. of Pump Stations 11 No. of Pressure Zones 5 Storage Capacity 27 MG Financial Information (FY 2002-2003 budget – Water Utility/Water Capital Improvement) Revenues: $6,774,880 Expenses: $6,407,518 Reserves: $6,140,300 CIP: $2,259,000 Typical Monthly Residential Water Bill (5/8” meter, 20 ccf) Meter Charge $8.00 Water Charge: $31.11 Monthly Bill: $39.11 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic NP NP NP NP Agriculture NP NP NP NP Recycled NP NP NP NP Other NP NP NP NP Total NP NP NP NP Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 7,000 7,000 7,000 7,000 NP Groundwater* 1,800 3,000 3,000 3,000 NP Surface 0 0 0 0 NP Recycled 0 0 0 0 NP Total 8,800 9,000 9,000 9,000 NP *Groundwater Source: Six Basins Average Annual Demand Information (AF/Yr) 2002 data Existing 2005 2010 2015 2020 Residential 6,548 6,700 6,700 6,700 6,700 Comm/Ind. 792 800 800 800 800 Landscape/Irr 288 300 300 300 300 Other 1,173 1,200 1,200 1,200 1,200 Total 8,801 9,000 9,000 9,000 9,000 June 29, 2005 – Final Report 17 City of Pomona Agency Information Service Area Information Address: 505 S. Garey Ave. Service Area 22.85 sq miles Pomona, CA 91769 Population Served: 146,447 Contact: Estella Valderrama, Engineering Projected Population: Phone: (909) 620-2212; (909) 622-1570 fax 2010 156,484 Email/Website: Estella_valderrama@ci.pomona.ca.us 2015 165,691 www.ci.pomona.ca.us 2020 177,591 Type: Retail Water 2025 189,687 System Information No. of Employees NP No. of Connections per Employee NP Average Daily Demand (MGD) 25 MGD – potable, 7 MGD – recycled Maximum Day Demand (MGD) 43 MGD – potable, 10 MGD – recycled No. of filed Complaints in 2002-2003 NP Miles of Pipe 421 No. of Pump Stations 15 No. of Pressure Zones 11 Storage Capacity 87.7 MG – potable, 3.7 MG – recycled Financial Information (FY 2003-2004 budget – Water Operations/Water Capital Funds) Revenues: $24,534,113 Expenses: $28,714,158 Reserves: $8,185,674 CIP: $5,078,366 Typical Monthly Residential Water Bill (5/8” meter, 20 ccf) Meter Charge $16.31 Water Charge: $17.76 Monthly Bill: $34.07 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 28,809 257 0 29,066 Agriculture 0 0 0 0 Recycled 6 0 0 6 Other (Fire Line) 1,509 20 0 1,529 Total 30,324 277 0 30,601 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 7,659 7,763 8,094 8,387 8,733 Groundwater* 19,304 19,566 20,400 21,139 22,011 Surface 991 1,004 1,047 1,085 1,130 Recycled 6,000 6,081 6,341 6,571 6,841 Total 33,954 34,414 35,882 37,181 38,715 *Groundwater Source: Six Basins, Chino Basin and Spadra Basin Average Annual Demand Information (AF/Yr)* Existing 2005 2010 2015 2020 Residential 17,462 18,708 19,506 20,212 21,046 Comm/Ind. 5,663 6,067 6,326 6,555 6,825 Recycled 6,000 6,428 6,702 6,945 7,231 Other 2,997 3,211 3,348 3,469 3,612 Total 32,122 34,414 35,882 37,181 38,715 June 29, 2005 – Final Report 18 La Puente Valley County Water District Agency Information Service Area Information Address: 112 No. 1st Street Service Area 2.5 sq miles La Puente, CA 91744 Population Served: 9,000 est. Contact: Michael Berlien, General Manager Projected Population: Phone: (626) 330-2126; (626) 330-2679 fax 2010 9,000 Email/Website: Mberlien.lpvcwd@verizon.net 2015 9,000 www.lapuentewater.com 2020 9,000 Type: Retail Water 2025 9,000 System Information No. of Employees 13 No. of Connections per Employee 193 Average Daily Demand (MGD) 2.4 MGD Maximum Day Demand (MGD) 4.0 MGD No. of filed Complaints in 2002-2003 0 Miles of Pipe 32.16 No. of Pump Stations 6 No. of Pressure Zones 4 Storage Capacity 3.65 MG Financial Information (CY 2003 budget) Revenues: $2,961,538 Expenses: $2,758,160 Reserves: $1,579,403 CIP: $954,000 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $10.50 Water Charge: $19.20 Monthly Bill: $29.70 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 2,510 0 0 2,510 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 2,510 0 0 2,510 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 0 0 0 0 0 Groundwater* 2,767 3,629 3,629 3,629 3,629 Surface 0 0 0 0 0 Recycled 0 0 0 0 0 Total 2,767 3,629 3,629 3,629 3,629 *Groundwater Source: Main San Gabriel Basin; groundwater supply information is based on maximum treatment capacity. Excess capacity from the treatment plant is sold to adjoining water systems. Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 2,007 2,200 2,200 2,200 2,200 Comm/Ind. 0 0 0 0 0 Recycled 0 0 0 0 0 Other 0 0 0 0 0 Total 2,007 2,200 2,200 2,200 2,200 June 29, 2005 – Final Report 19 Insert Map: La Puente Valley County Water District June 29, 2005 – Final Report 20 Rowland Water District Agency Information Service Area Information Address: 3021 S. Fullerton Rd. Service Area 17.2 sq miles Rowland Heights, CA 91748 Population Served: 58,580 Contact: Ken Deck, General Manager Projected Population: Phone: (562) 697-1726; (562) 697-6149 2010 64,584 Email/Website: kdeck@rowlandwater.com 2015 67,813 www.rowlandwater.com 2020 71,203 Type: Retail Water 2025 NP System Information No. of Employees NP No. of Connections per Employee NP Average Daily Demand (MGD) NP Maximum Day Demand (MGD) 20.12 MGD No. of filed Complaints in 2002-2003 1 Miles of Pipe 150 No. of Pump Stations 8 No. of Pressure Zones NP Storage Capacity 53 MG Financial Information (FY 2003 -2004 budget) Revenues: $11,400,000 Expenses: $10,128,000 Reserves: $16,766,444 CIP: $6,790,000 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $8.18 Water Charge: $29.20 Monthly Bill: $37.38 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 13,500 0 0 13,500 Agriculture 0 0 0 0 Recycled 8 0 0 8 Other 0 0 0 0 Total 13,508 0 0 13,508 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 13,867 41,800 43,800 45,800 47,800 Groundwater* 0 0 0 0 0 Surface 0 0 0 0 0 Recycled 335 NP NP NP NP Total 14,202 *Groundwater Source: Puente Basin Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 8,303 8,717 9,153 9,611 Comm/Ind. 4,777 5,016 5,266 5,529 Recycled 347 364 385 401 Other 1,095 1,150 1,208 1,268 Total 14,202 14,522 15,247 16,009 16,809 June 29, 2005 – Final Report 21 Insert Map: Rowland Water District June 29, 2005 – Final Report 22 Three Valleys Municipal Water District Agency Information Service Area Information Address: 1021 E. Miramar Ave. Service Area 133.3 sq miles Claremont, CA 91711-2052 Population Served: 563,143 Contact: Richard Hansen, General Manager Projected Population: Phone: (909) 621-5568; (909) 625-5470 fax 2010 621,755 Email/Website: rhansen@tvmwd.com 2015 669,807 www.threevalleys.com 2020 718,018 Type: Wholesale Water 2025 754,644 System Information No. of Employees 20 FTE No. of Connections per Employee NA Average Daily Demand (MGD) 80 MGD (FY 2003-2004) Maximum Day Demand (MGD) 136 MGD No. of filed Complaints in 2002-2003 None Miles of Pipe 10 miles No. of Pump Stations 3 No. of Pressure Zones 3 Storage Capacity 16 MG Financial Information (FY 2003 -2004 actual) Revenues: $48,891,734 Expenses: $43,992,186 Reserves: $17,319,382 CIP: $590,397 Wholesale Water Rates per acre-foot Treated $481 District / $478 Miramar Untreated Interruptible Seasonal Long Term $265 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 36 2 0 38 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 36 2 0 38 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 80,400 88,600 94,100 102,300 NP Groundwater 0 0 3,000 4,000 NP Surface 0 4,500 5,000 5,000 NP Recycled 0 0 0 0 0 Total 80,400 93,100 102,900 111,300 117,500 Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Other* 80,400 93,100 102,900 111,300 117,500 Total 80,400 93,100 102,900 111,300 117,500 * Sales to Cites of Covina, Glendora, La Verne, and Pomona; Rowland Water District and Walnut Valley Water District; Southern California Water Company, Cal Poly Pomona, Mt. San Antonio College and Boy Scouts of America June 29, 2005 – Final Report 23 Insert Map: Three Valleys Municipal Water District June 29, 2005 – Final Report 24 Valley County Water District Agency Information Service Area Information Address: 14521 Ramona Blvd. Service Area 10 sq miles Baldwin Park, CA 91706 Population Served: 58,040 Contact: Mark Grajeda, General Manager Projected Population: Phone: (626) 338-7301; (626) 814-2973 fax 2010 60,750 Email/Website: mgrajeda@vcwd.net 2015 65,450 www.vcwd.net 2020 69,550 Type: Retail Water 2025 74,450 System Information No. of Employees 20 No. of Connections per Employee 650 Average Daily Demand (MGD) 5.6 MGD Maximum Day Demand (MGD) 8.1 MGD No. of filed Complaints in 2002-2003 446 – water quality, 266 – billing/service Miles of Pipe 100 No. of Pump Stations 10 No. of Pressure Zones NP Storage Capacity 10.0 MG Financial Information (FY 2003-2004 budget) Revenues: $6,368,971 Expenses: $4,307,720 Reserves: $9,921,785 CIP: $1,421,700 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $6.60 Water Charge: $11.58 Monthly Bill: $18.18 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 13,000 0 0 13,000 Agriculture 0 0 0 0 Recycled 0 0 0 0 Other 0 0 0 0 Total 13,000 0 0 13,000 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 0 0 0 0 NP Groundwater* 8,706 11,100 11,100 11,400 NP Surface 894 110 110 110 NP Recycled 0 0 0 0 NP Total 9,600 11,210 11,210 11,510 NP *Groundwater Source: Main San Gabriel Basin Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 7,480 7,660 7,866 NP Comm/Ind. 2,385 2,443 2,508 NP Recycled 0 0 0 NP Other 975 997 1,026 NP Total 9,600 10,840 11,100 11,400 NP June 29, 2005 – Final Report 25 Insert Map: Valley County Water District June 29, 2005 – Final Report 26 Walnut Valley Water District Agency Information Service Area Information Address: 271 S. Brea Canyon Road Service Area 29.6 sq miles Walnut, CA 91789 Population Served: 98,100 Contact: Karen Powers, General Manager Projected Population: Phone: (909) 595-1268; (909) 444-5521 2010 100,300 Email/Website: kpowers@wvwd.com 2015 101,600 www.wvwd.com 2020 102,900 Type: Retail Water 2025 NP System Information No. of Employees 57 FT / 3 Part time No. of Connections per Employee 467 Average Daily Demand (MGD) 20.7 MGD Maximum Day Demand (MGD) 33.93 MGD No. of filed Complaints in 2002-2003 132 Miles of Pipe 360 – potable 30 – recycled No. of Pump Stations 16 – potable 2 – recycled No. of Pressure Zones 14 – potable 2 – recycled Storage Capacity 86 MG – potable 4MG – recycled Financial Information (FY 2002 -2003 budget) Revenues: $22,837,500 Expenses: $22,787,653 Reserves: $58,892,457 CIP: $1,451,382 Typical Monthly Residential Water Bill (3/4” meter, 20 ccf) Meter Charge $11.01 Water Charge: $33.60 Monthly Bill: $44.61 Service Within Outside Outside Connections Boundary Boundary/Within Sphere Total Sphere Domestic 26,386 0 0 26,386 Agriculture 0 0 0 0 Recycled 239 0 0 239 Other 0 1 0 1 Total 26,625 1 0 26,626 Supply Information (AF/Yr) Existing 2005 2010 2015 2020 Imported 24,879 24,160 24,023 24,511 25,013 Groundwater* 309 867 1,184 1,184 1,184 Surface 0 0 0 0 0 Recycled 1,179 2,550 3,366 3,366 3,366 Total 26,367 27,577 28,573 29,061 29,563 *Groundwater Source: Puente Basin Average Annual Demand Information (AF/Yr) Existing 2005 2010 2015 2020 Residential 18,915 19,207 19,353 19,502 Comm/Ind. 2,625 2,655 2,754 2,853 Recycled 3,417 4,550 4,550 4,550 Other 2,620 2,161 2,404 2,658 Total 26,367 27,577 28,573 29,061 29,563 June 29, 2005 – Final Report 27 Insert Map: Walnut Valley Water District June 29, 2005 – Final Report 28 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.0 ANALYSIS 3.1 GROWTH AND POPULATION 3.1.1 Growth/Population Projections The East San Gabriel Valley is primarily developed with urban land uses and significant growth is not projected. Growth over the next twenty years will primarily come from infill and redevelopment. Some agencies did note areas where new development may occur, particularly the southern portion of the Rowland Water District where a new community of 3,000 to 3,600 homes is being planned. Overall Los Angeles County experienced a 12% population increase from 1990 to 2000, with the Southern California Association of Governments (SCAG) projecting an overall 19% increase through 2020. The East San Gabriel Valley is predicting annual growth rates around 1% which is in keeping with the overall county growth projection. The growth projections shown below in Table 3-1 Growth and Population Projections are derived from two sources: data submitted by the agencies and data based on SCAG 2005 forecasts, where available. To establish district-level projections, the population in 2000 was estimated based on geographic analysis conducted by the County of Los Angeles Urban Research Division (URD) and represents the sum of population in each Census block within the district's boundaries. The projected population is based on SCAG's growth forecasts for each Census tract and represents the SCAG projection of growth in the Census tracts within the District's boundaries. Appropriate adjustment was made for Census tracts that are partially within a district's boundaries. Typically population projections are provided by regional agencies for cities only. Los Angeles LAFCO is one of the few LAFCOs in California to provide population and growth projections for special districts. This may help smaller special districts to coordinate the demand for future water service with other agencies. June 29, 2005 – Final Report 29 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Table 3-1: Growth and Population Projections Agency Data 2005 2010 2015 2020 2025 Annual Source Population Population Population Population Population Growth Estimates* Estimates* Estimates* Estimates* Estimates* Rate Wholesale Three Valleys Agency 563,143 621,755 669,807 718,018 754,644 1.7% MWD SCAG 526,667 546,455 564,858 590,100 614,709 0.8% Cities Azusa SCAG 48,783 51,412 53,231 55,025 56,741 0.8% Azusa Water Agency 115,000 120,000 120,000 120,000 120,000 0.0% Svc Area Covina SCAG 50,298 52,862 56,013 59,122 62,099 1.2% Glendora SCAG 53,978 58,055 58,930 59,789 61,403 0.7% Industry Water Agency NP 5,400 5,508 5,618 5,703 0.4% Svc Area SCAG 796 799 799 799 799 0.0% SCAG 34,854 37,995 41,367 44,693 47,883 1.9% La Verne Agency 34,854 37,430 37,430 37,430 37,430 0.0% Pomona SCAG 163,943 176,040 185,513 194,856 203,813 1.2% Special Districts La Puente Agency 9,000 NP NP NP NP 0.0% Valley CWD Rowland WD Agency 61,509 64,584 67,813 71,203 NP 1.1% Walnut Valley Agency 99,100 100,300 101,600 102,900 NP 0.3% WD Valley CWD Agency 58,040 60,750 65,450 69,550 74,450 1.4% (*) Data sources include data reported in the LAFCO Request for Information, Parts I, II and III. Additional information was obtained from Urban Water Management Plans provided by the agencies and the estimates for the San Gabriel Valley Association of Cities. NP – data not provided; NA – not available – CITIES – Azusa Light & Water The service area for Azusa Light & Water is primarily residential with some commercial, industrial, school, hospital and park use. The area is generally built-out with the majority of future development expected to be residential. The projected annual growth rate for the City of Azusa is 0.8% per SCAG 2005 estimates. Azusa Light & Water is projecting no growth from 2010 through 2025. City of Covina The City of Covina’s water utility serves approximately 66% of the City’s population. The predominant land use is residential and limited growth is expected. The average annual growth rate through 2025 is 1.2% per SCAG 2005 projections. The City notes that redevelopment for higher land use intensities may result in some increase in water demand. The City is estimating build-out at year 2010. June 29, 2005 – Final Report 30 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley City of Glendora The City of Glendora’s water service area is predominantly residential with some commercial and light industrial use. Per SCAG 2005 projections, population within Glendora is expected to reach 61,403 by 2025 with an average annual growth rate of 0.7%. The City is preparing a Route 66 Specific Plan to encourage mixed use housing with higher densities and commercial development along the Route 66 commercial corridor. The City notes that growth will not affect water demand. City of Industry The City of Industry has a small resident population with the majority of land use in the City serving industrial and commercial uses. The City is considered built-out and no growth is projected. City of La Verne The City of La Verne is primarily residential. The City’s population is projected to reach 47,883 by 2025 with an average annual growth rate of 1.9% per SCAG 2005 projections. The City has the highest growth projected growth rate in the East San Gabriel Valley study area. The City notes that areas of growth are limited and well-defined and it has planned for water service accordingly. City of Pomona Land use within the City of Pomona includes residential, mixed use, commercial, industrial and institutional. The City estimates that build-out will occur by year 2015. There is a trend to replace single family residential units with multi-family units; however the City is unsure how this may affect water demand over the long term. Per SCAG 2005 projections, Pomona has the third highest annual growth rate in the study area at 1.2%, along with Covina. The City’s water service area population is approximately 1,000 less than the City’s population. Pomona is currently updating its General Plan which will include revised growth projections. As part of the process the City will be evaluating the areas where it is providing water service outside of Pomona’s current city boundary and sphere of influence. – SPECIAL DISTRICTS – La Puente Valley County Water District The La Puente Valley County Water District’s service area includes mixed land uses. The service area is considered built-out with only 0.02% annual growth projected per the 1996 City of La Puente Master Plan. Rowland Water District The Rowland Water District serves a mixture of land uses, including commercial/industrial along the Pomona Freeway (SR-60) and residential further south. The southern portion of the District is bounded June 29, 2005 – Final Report 31 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley by the northern edge of Orange County and the Orange Freeway (SR-57) to the east. The area is currently undeveloped; the District is projecting that a major new community will be developed within the next five to ten years which will include 3,000 to 3,600 homes and related retail establishments. Three Valleys Municipal Water District The Three Valleys Municipal Water District serves the East San Gabriel, Pomona and Walnut Valleys. Land use is mixed; the District’s Urban Water Management Plan notes the following water use by sector: Residential (73%), Commercial/Industrial (19%), Recycled (7%), and Agriculture (1%). Annual growth within the area is expected to be 0.9% per SCAG 2005 projections. The largest potential growth area is in the southern portion of the Rowland Water District where a community with 3,000 to 3,600 homes is being planned. The Boy Scout Firestone Reservation area was recently purchased by the City of Industry and may also potentially be developed. Valley County Water District Land use within the Valley County Water District service area is generally residential and commercial. Service within the City of Baldwin Park is mostly residential and commercial while the City of Irwindale is primarily commercial. Service within the Cities of West Covina and Azusa is minimal and comprised of residential and commercial accounts. The District is projecting build-out for its service area in 2015. Annual growth is expected to be 0.6% per SCAG 2005 projections, generally resulting from increased density as single family dwellings are replaced with multi-family units. Walnut Valley Water District The Walnut Valley Water District’s service area is primarily suburban with industrial/commercial land use in the City of Industry. There are currently 2,650 acres of undeveloped land within the District’s boundary and 4,231 undeveloped acres within the District’s sphere of influence. The District considers the 550-acre Walnut Hills project as the most likely to seek annexation within the next twenty years. The District has projected the increase in water demand due to development as follows: Proposed Estimated Estimated Proposed Estimated Total Development Potable Water Recycled Water Planning Period Development Demand Demand Demand Demand Completed (MGD) (MGD) (MGD) (MGD) 2000 0% 0.00 22.41 20.66 1.76 2005 25% 0.99 23.40 20.10 3.30 2010 50% 1.98 24.39 20.33 4.06 2020* 75% 2.97 25.38 21.32 4.06 *2020 Demand is 23,892 acre feet potable and 4,550 acre-feet recycled June 29, 2005 – Final Report 32 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2005 2010 2015 2020 June 29, 2005 – Final Report 33 raey/teef-erca 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 noitalupop 3.2 INFRASTRUCTURE NEEDS AND DEFICIENCIES The evaluation of infrastructure needs and deficiencies includes an analysis of both water supply and water system capacity. The following figure, Figure 3.1 Supply/Demand Forecast - Based on Population Projections, shows the estimated supply and demand based on data reported by the water agencies in the East San Gabriel Valley MSR study area as well as SCAG population projections. The questionnaire submitted to the agencies by LA LAFCO did not request projections for supply and demand; therefore the data has been obtained from the agencies’ 2000 Urban Water Management Plans and other supporting documentation. It is recommended that the agency profiles in Section 2.0 be updated annually in order to maintain accurate agency projections on future supply and demand. Figure 3.1 – East San Gabriel Valley Supply/Demand Forecast Based on Population Projections 2005 Demand Population Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.2.1 Water Supply/Demand The East San Gabriel Valley water supply includes groundwater, imported water delivered through the Three Valleys Municipal Water District, surface water and recycled water. Surface water supply is minimal; only a few agencies identified it as a source. Groundwater and imported water are considered the primary sources; however, with the groundwater contamination that now pervades the basins, imported and recycled water have become increasingly important as a replacement. Imported water serves to balance supply and demand through both groundwater replenishment and direct use. Recycled water offsets potable demand for industrial and irrigation uses. Overall, the regional water supply is being actively managed through the collaboration of numerous public agencies. With the region’s projected growth rate, the water supply is expected to be adequate to meet future demand provided that imported water continues to be available in adequate volume and recycled water systems continue to expand. Groundwater quality, the infrastructure needs for costly water treatment systems and improvements to aging distribution systems are critical issues for this region. Groundwater Supply There are four adjudicated groundwater basins within the East San Gabriel Valley: the Main San Gabriel Basin, Chino Basin, Six Basins and the Puente Basin. The Watermaster for each basin is responsible for establishing the Safe Operating Yield of the basin and for setting the pumping limits for each agency with groundwater rights. Through this management, the basins are maintained to ensure a reliable, consistent water supply as well as the cost-effective use of local sources for recharge. Pomona also overlies the Spadra Basin which is not adjudicated. The Main San Gabriel Basin is the largest basin, covering most of the valley floor of the San Gabriel Valley. The Main Basin is recharged by stream flow from the San Gabriel Mountains and surrounding hills, rainfall, imported water discharged into spreading basins, subsurface inflow from the Raymond and Puente Basins, and by return water from overlying uses. Conjunctive use has been considered as the Main San Gabriel Basin has been determined to have excess storage capacity. The boundary of the adjudicated basin extends over most of the westerly portion of the Three Valley’s service area. The majority of the basin lies to the west of the East San Gabriel Valley service review study area. Three Valleys is a Responsible Agency within the court judgment and is involved in the operation and management of the basin through delivery of replenishment water. Producers who extract more than their entitlement are required to purchase replacement water from the Upper San Gabriel Valley Municipal Water District, the San Gabriel Valley Municipal Water District or the Three Valleys Municipal Water District, to be recharged into the groundwater basin. Agencies that June 29, 2005 – Final Report 34 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley exceed their allotted amount are assessed an amount by the Watermaster that will allow the purchase of replacement water at the ratio of one acre-foot of supplemental water for each acre-foot of excess production. The cost of replacement water is significantly higher than the cost of water produced under entitlement, which serves to curtail excess demand. The Puente Basin Water Agency was organized in 1971 for the protection and utilization of the local, imported and recycled water supply within the Puente Basin. The Agency is governed by an appointed Board of Commissioners consisting of three members. The Puente Basin is adjudicated between the Rowland Water District, Walnut Valley Water District, the City of Industry and the City of Industry Urban Development Agency. The groundwater is contaminated with volatile organic compounds, high contents of total dissolved solids, and high nitrate concentrations. The water is not used for potable supply but it is used for recycled supply. The Rowland Water District has rights to pump 298.6 acre-feet per year; the District constructed a well in 2003 to provide water supply for its expanded recycled water system. The Six Basins Watermaster became effective In January 1999 and is the court-appointed entity that oversees groundwater management of six interconnected basins underlying portions of the Cities of Upland, Claremont, La Verne and Pomona. The Watermaster consists of the following members: Cities of La Verne, Pomona, Claremont and Upland; San Antonio Water Company, Southern California Water Company; Pomona Valley Protective Association; Pomona College; and the Three Valleys Municipal Water District. Three Valleys is the administrative entity for the Watermaster and is a party to the court judgment for Six Basins. Members are assessed annually. The District is currently developing a capital project to provide the ability to deliver replenishment water to the Basin. The Operating Safe Yield for CY 2004 was set at 17,000 acre-feet; with carryover from the prior year and storage adjustments, the allowable extraction was 25,308 acre-feet with only 19,100 projected actual use. As the contract administrator for Six Basins, Three Valleys is coordinating the installation and construction of three new monitoring wells within the District’s boundaries. The wells will be used to monitor groundwater levels within the Three Valleys area of Six Basins. Most of the Chino Basin lies within San Bernardino County with a portion in the Three Valleys service area to the southeast. Three Valleys is involved in the management decisions over the Basin and maintains a seat on the nine-member Watermaster Board. Groundwater contamination is a critical issue for the East San Gabriel Valley. The contamination is due to a long history of ground disposal of synthetic organic compounds used as solvents in industrial and June 29, 2005 – Final Report 35 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley commercial activities; there is also widespread contamination of perchlorate, an inorganic chemical. The first discovery was in 1979 in Azusa. Over the following four years, further investigation revealed that contamination was widespread throughout the basins. The U.S. EPA placed four portions of the basin in the Superfund program. In 1997, newly detected contaminants (perchlorate and NDMA) were observed in the water supply. The areas of contamination are identified as “Operable Units” and include Alhambra, El Monte, South El Monte, Baldwin Park and Puente Valley. Treatment technology has progressed rapidly, however new treatment processes to address increased contaminant levels have raised the capital costs of treatment four to five times the original cost.1 Recognizing that this serious issue required a regional approach, the San Gabriel Basin Water Quality Authority was established by the State Legislature (SB1679) on February 11, 1993 to develop, finance and implement groundwater treatment programs in the San Gabriel Basin. The WQA is empowered by the State to address the problem of the migration of contaminated groundwater within the San Gabriel Basin and, in particular, the migration of contaminated water through the Whittier Narrows into the Central Basin. The WQA is under the direction and leadership of a 7-member board, comprised of one member from each of the overlying municipal water districts, one from a city with prescriptive water pumping rights and one from a city without prescriptive water pumping rights, and two members representing water producers in the San Gabriel Basin. The three municipal water districts are the San Gabriel Valley Municipal Water District, Three Valleys Municipal Water District; and Upper San Gabriel Valley Municipal Water District. The Authority has been instrumental in obtaining almost $100 million to advance groundwater basin remediation efforts. The current Groundwater Quality Management and Remediation Plan was adopted in February 2004. Surface Water Surface water used as supply in the East San Gabriel Valley is minimal; only four agencies reported it as a source. The City of Azusa and the Covina Irrigating Company have rights to water from the San Gabriel River. The City of Pomona has surface water rights for the San Antonio Canyon Watershed. The Valley County Water District also uses some surface water. State Water Project Supply Imported water from the State Water Project (SWP) and the Colorado River is provided through the Metropolitan Water District of Southern California, a State Water Project Contractor. Metropolitan distributes the water through its member agency, the Three Valleys Municipal Water District. Although SWP Contractors have an agreed upon allotment each year, the actual amount that will be delivered varies depending on water availability in the Bay-Delta and other northern California sources. For 2004, the southern California contractors received 65% of their prescribed allotment. The southern California SWP 1 San Gabriel Basin Water Quality Authority, §406 Plan, February 3, 2004 June 29, 2005 – Final Report 36 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley contractors actively manage the procurement process to ensure reliability and cost control. Opportunities to use water transfers, banking and off-season deliveries are exercised if they are beneficial to the region and member agencies. Three Valleys works closely with Metropolitan in planning for future water supply in the East San Gabriel region. Three Valleys has entered into a ten year purchase order agreement with Metropolitan which provides not less than 469,331.4 acre-feet over the ten years. This amount is equal to 60% of the District’s base demand. Additional supply is available. The District’s annual maximum allotment at Tier 1 pricing is 70,399.7 acre-feet. Water supplied over this amount is at Tier 2 rates. The District purchases both raw and treated water from Metropolitan. Recycled Water Supply Recycled water is becoming increasing more important as it serves to offset demand for potable use in the landscape and some industrial processes. Some agencies are pumping contaminated groundwater for use in their recycled water systems. There are three water reclamation plants that serve the East San Gabriel Valley: two in the Main San Gabriel Basin (Whittier Narrows and San Jose Creek) and one in Pomona. All are operated by the County of Los Angeles Sanitation Districts. Whittier Narrows water is used as groundwater recharge and for irrigation. The San Jose Creek Plant is larger and serves a regional area with an estimated population of 1,000,000. The Plant produces approximately 35 million gallons per day of recycled water. The City of Industry, the Walnut Valley Water District and South West Suburban Water System are working to develop a regional recycled water system that would utilize recycled water from the San Jose Creek Water Reclamation Plant as an additional source. This source was identified as necessary to support the total build-out of the recycled system due to supply limitations from the Pomona WRP. The project includes the construction of a backbone delivery system and corresponding distribution system improvements and additions by each of the participating entities. The total projected cost is $50 million. Balancing Supply and Demand The districts have been able to meet demand through the use of demand management measures as well as using more imported supply and increasing the use of recycled water. Conservation plays a critical role for each of the agencies. Imported water is required for adequate groundwater basin recharge in the Main San Gabriel Basin; however the cost differential between production water and replacement water is substantial. Individually and through the wholesaling agencies, the retailers are engaged in conservation programs and activities including public outreach, rebates, education and incentives. June 29, 2005 – Final Report 37 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley The California Water Code Division 6, Sections 10610 et seq., Urban Water Management Planning Act, as amended January 1, 2002 requires all Urban Water Management Plans to be updated in 2005. This will provide an opportunity for the agencies to re-evaluate projected population, water supply and demand within the East San Gabriel Valley. The use of the groundwater basins and compensation for unusable supply due to contamination is being managed by the Watermasters of each basin. The Safe Operating Yield is established annually through data collected from key wells, and alternative solutions are being used to limit groundwater extraction in areas that do not benefit from recharge. The districts will continue to need technologically advanced treatment systems to address contaminants; as detection technology advances so does the requirement to meet more stringent standards for water quality. Water supply and demand for each of the public water districts in the East San Gabriel Valley MSR study area is summarized below in Table 3.3 – Supply and Demand Summary. Table 3.3 – Supply and Demand Summary (Acre Feet/Year unless otherwise noted) Projected Projected Existing Existing Agency Difference Supply Demand Difference Supply Demand 2020 2020 WHOLESALE Three Valleys 80,400 80,400 0 117,500 117,500 0 MWD RETAIL - CITIES Azusa 21,600 23,000 (1,400) 28,000 25,400 2,600 Covina 7,345 7,344 1 7,951 7,610 341 Glendora 13,752 13,944 (192) NP NP Industry 2,750 2,750 0 NP NP La Verne 8,800 8,801 (1) NP 9,000 Pomona 33,954 32,122 1,832 38,715 38,715 0 RETAIL - SPECIAL DISTRICTS La Puente Valley 2,067 2,007 60 3,629 2,200 1,429 CWD Rowland WD 14,202 14,202 0 47,800 16,809 30,991 Valley CWD 9,600 9,600 0 NP NP Walnut Valley WD 26,367 26,367 0 29,563 29,563 0 TOTAL 300 35,361 NP – data not provided by agency June 29, 2005 – Final Report 38 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.2.2 Water System Infrastructure In addition to supply and demand, the review of infrastructure includes an evaluation of capacity to serve. Infrastructure for each of the public water agencies in the East San Gabriel Valley MSR study area is summarized below in Table 3.4 – Infrastructure Summary below. Table 3.4 - Infrastructure Summary Total Treatment # of Service Miles of Pump # of Agency Tanks/Reservoirs Storage Plant Connections Pipe Stations Interties Capacity Capacity WHOLESALE Three Valleys 38 10 3 2 16 MG 25 MGD NP MWD RETAIL - CITIES Azusa 27,140 300 7 10 29 MG 7.5 MGD 2 Covina 8,409 100 NP 6 17.3 MG NA 4 Glendora 13,500 196 23 24 33.97 MG NA 3 Industry 1,801 3.2 4 3 6.8 MG NA NP La Verne NP 140 12 14 27 MG 5 MGD NP Pomona 30,601 421 15 24 87.7 MG 4 MGD NP RETAIL - SPECIAL DISTRICTS La Puente Valley 2,510 32 6 2 3.65 MG 3.6 MGD NP CWD Rowland WD 13,508 150 8 18 53 MG NA 2 Valley CWD 13,000 100 10 6 10 MG NA 4 Walnut Valley WD 26,626 360 16 28 86 MG NA 10 NP – data not provided by agency; NA – not applicable – CITIES – Azusa Light & Water Azusa Light & Water obtains its water supply from groundwater in the Main San Gabriel Basin and surface water from the San Gabriel River. In the past the City has taken delivery of some imported water through the Upper San Gabriel Valley Municipal Water District. The San Gabriel Valley Municipal Water District recharges the Main San Gabriel Basin on behalf of the City of Azusa. The Agency has emergency interties with the City of Glendora and the Valley County Water District. Azusa is currently updating its Water Master Plan and expects that it will be completed in August 2005. The City is also in the process of updating its Urban Water Management Plan. In FY 2002-2003 the City completed approximately $2 million in water main replacements with an additional $2 million in mains installed from the spreading basin to the southwest part of the system. The Work Plan for FY 2003-2004 includes improving system efficiencies by identifying and mitigating the causes of system losses, June 29, 2005 – Final Report 39 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley conducting a pilot study for a new water filtration plant, replacing water mains, installing a treatment facility for perchlorate on one of the City’s wells, and reservoir rehabilitation. City of Covina The City of Covina’s water supply is purchased from the Covina Irrigating Company. The City is the largest shareholder in the Company with 4,194 shares. This provides the City with an entitlement to 5,490.09 acre-feet per year of the Company’s water supply. The City also leases stock from other stockholders on a year-by-year basis to augment the entitlement supply. The Company gets water from the San Gabriel River at the Morris and San Gabriel dams. The Company also has groundwater wells and is a member agency of the Three Valleys Municipal Water District. Covina’s pipeline system is aging and financial constraints limit the number of replacements that can be accomplished each year. Capital projects included in the FY 2004-2005 budget include water meter replacement and seismic retrofit of the Forestdale Reservoir, including a pressure valve. City of Glendora The City of Glendora obtains its water supply from the Main San Gabriel Basin and supplements it with imported water purchased from the Three Valleys Municipal Water District. Glendora has rights to a percentage of the safe operating yield of the Basin and leases rights for additional water. In FY 2003- 2004 the City leased 2,500 acre feet from Suburban Water System, a private purveyor. The City is providing water service throughout its incorporated area and notes that approximately 27 acres are currently not served. The City has eight wells; two are in poor condition and two have nitrate contamination issues. A new well was brought on line in 2004 with an expected capacity of 1,300 gallons per minute. The City has 24 reservoirs with a combined storage capacity of 33.97 million gallons; five reservoirs which comprise 12% of the capacity are rated in poor condition. The City has begun the design of a 4.0 million gallon replacement reservoir that will provide a net storage increase of 2.0 million gallons. In March 2003 the Glendora Water System Study Committee Report was finalized. The City Council authorized the formation of the Committee in 2002 to review and report on the state and financial health of the City’s water system. The Committee found that the municipal water system is in “a serious state of deterioration and decline.” Parts of the system are more than 100 years old, and the City incurs substantial costs for pipeline failures and unaccounted water loss. It was recommended that an aggressive Capital Improvement Program be implemented to rehabilitate the system over the next 30 years. As recommended in the study, the approved Capital Improvement Program for FY 2004-2005 includes $9,655,000 for major water system upgrades. Projects include the design of the San Gabriel Plant June 29, 2005 – Final Report 40 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Reservoir and Booster Replacement, small water main replacement, Sierra Madre transmission line replacement, design of the Hicrest distribution system and reservoir replacement, well rehabilitation program, construction of the Azusa Pacific Reservoir replacement, design of a new reservoir for Zone 2, booster pump replacement, construction of a 4 million gallon reservoir, and demolition and construction of the Azusa Pacific University reservoir. City of Industry The City of Industry overlies the Main San Gabriel Basin; however due to contamination issues the City purchases water from the San Gabriel Valley Water Company for potable use and has developed a recycled water system for irrigation use. In 2002 three of the City’s wells were placed on emergency standby; two other wells are out of service and have been sealed. Recycled water is provided by the Los Angeles County Sanitation District’s San Jose Water Reclamation Plant. The City’s three reservoirs are in good condition; however the City notes that another 2.5 million gallon reservoir will be needed in 5 to 10 years to accommodate future demand. The water utility is managed by the La Puente Valley County Water District under a 10-year agreement. For FY 2002-2003 the City approved $605,000 in funding for water system capital improvements including water main replacement, telemetry system upgrade for the recycled water system, pump replacement and repairs for recycled water pump station. The budget also includes funding for the planning and design of the new reservoir. City of La Verne The City of La Verne obtains its water supply from the Six Basins groundwater basin and supplements it with imported water provided by the Three Valleys Municipal Water District. The City is constructing new nitrate treatment facilities. Recommended projects in the City’s FY 2004-2005 Capital Improvement Program include implementation of the Water Master Plan, construction of the Plateau outlet line, and water line replacement on Emerald. The budget for the Water Master Plan implementation is $4.8 million with $3.3 million funded by Metropolitan. City of Pomona The City of Pomona’s water supply comes from groundwater, surface water, imported water, and recycled water. Groundwater is drawn from two adjudicated basins (Chino Basin and Six Basins) and one non-adjudicated basin (Spadra). Surface water is from the San Antonio Canyon Watershed. Imported water is provided by the Three Valleys Municipal Water District and delivered via the Pomona- Walnut-Rowland Joint Water Line. June 29, 2005 – Final Report 41 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley The Pomona-Walnut-Rowland Joint Water Line Commission was formed under the Joint Powers Agreement of 1956 between the City of Pomona, Rowland Water District and Walnut Valley Water District to acquire, construct and maintain the transmission pipeline. The Joint Water Line is 7.6 miles long, 42 to 54 inches in diameter, and transports potable water from Metropolitan’s Weymouth Treatment Plant in La Verne to the three agencies. The member agencies share the cost of maintenance, operation and repair. Pomona updated its Water Master Plan in 2002, using both land use-based and population-based methods for water demand projections. The City estimates that water demand will increase 1% annually and notes that this could be reduced by increasing the use of recycling water or augmenting water conservation efforts. The City uses a five year planning horizon for its Capital Improvement Program. Projects proposed for FY 2003-2004 include meter replacement in Phillips Ranch, a new reservoir, seismic and security upgrades at existing reservoirs, expansion of the nitrate removal facility, drill and equipment for a new well, and destruction of inactive and abandoned wells. Funding was pending for a new recycled water reservoir. – SPECIAL DISTRICTS – La Puente Valley County Water District The La Puente Valley County Water District obtains its water supply from the Main San Gabriel Basin. The District wholesales water to Suburban Water System, which provides service to small areas in the eastern portion of the District. The District’s groundwater treatment system currently has excess capacity of 1,200 acre-feet per year, which is provided to Suburban Water System and others who are affected by the groundwater contamination. The La Puente Valley County Water District has been recognized for the new perchlorate treatment plant that was brought on line. The District was also recognized for its wellhead treatment plant project. In 2000 the District was received the Southern California Edison Company award for Excellence in Environmental Technology. In 2003 Edison awarded the District $158,739 for its ultraviolet light treatment system. The District’s 2002 Water Master Plan noted some system deficiencies which the District is addressing through its capital improvements budget. The CY 2003 budget includes pipeline replacement, refurbishing two wells and metering pressure zones. The Master Plan notes that the two reservoirs need to be upgraded (the smaller one replaced and the larger relined). The largest pressure zone needs elevated storage and a new 8-inch pipeline to connect the eastern and western portions for greater reliability. June 29, 2005 – Final Report 42 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Rowland Water District The Rowland Water District overlies the Puente Basin; however the groundwater is contaminated with volatile organic compounds, high contents of total dissolved solids, and high nitrate concentrations. Therefore the District obtains treated water from Three Valleys Municipal Water District. Water is delivered to Rowland through three transmission connections. As mentioned above, Rowland shares the Joint Water Line with the City of Pomona and the Walnut Valley Water District; Rowland has capacity rights in the line of 24.3%. Rowland has emergency intertie connections with La Puente Valley County Water District, Walnut Valley Water District, and the South West Suburban Water System. Rowland has developed a recycled water system within its service area and currently serves eight accounts with large landscapes (county parks, schools and a cemetery). In the past recycled water was only available through the Walnut Valley Water District from the Los Angeles County Sanitation District’s Pomona Reclamation Plant. Over the past few years Rowland has significantly expanded the system, including drilling a new well for recycled water use. The District’s FY 2003-2004 budgets for capital improvements and construction include $90,000 to increase the recycled water customer base and provide financial assistance for recycled connections, $300,000 to purchase land for a recycled water reservoir site, $3 million to expand the recycled system, and $300,000 to construct a 3 million-gallon recycled water reservoir. The District expects that increases in demand for potable water due to growth will be offset by recycled water. The District also has budgeted for large meter replacement and expanding the automatic meter reading program, constructing booster stations at two reservoirs, and relocating pipelines for the Alameda Corridor East project. Three Valleys Municipal Water District The Three Valleys Municipal Water District wholesales water treated at Metropolitan’s Weymouth Treatment Plant in La Verne. The District also purchases raw water from Metropolitan and treats it at the Miramar Treatment Plant, which is jointly owned by Three Valleys, the City of La Verne and the Southern California Water Company. The Miramar Facility produces 25 million gallons of treated water per day. The water quality is tested six times per day and has not been in violation of any DHS water quality standard for any constituent. The treatment process has achieved better removal of constituents than most of the minimum standards set. The Miramar Facility is situated at a high elevation so that the District is able to use gravity to deliver water. The Facility also has three hydroelectric generators; part of the energy produced is used to power the water treatment facility and the rest is sold. The facilities produce over 1,000 kWh. June 29, 2005 – Final Report 43 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley The District has entitlement to 40,000 acre-feet in cyclic storage in the Main San Gabriel Basin and 1,000 acre-feet in Six Basins. The District is planning to drill a new 1,000 gallon-per-minute well on District property. Three Valleys is studying a new one million gallon reservoir at the Fulton Plant, which would also include a pipeline replacement from the Fulton Plant to Williams Avenue. The District has identified $69.9 million in projects for its 10-year capital investment program that are related to conjunctive use, groundwater recharge and interconnections. The District recently updated its asset database to account for repair and replacement needs and to comply with provisions of GASB 34. Along with the updated listing, the District is developing a more detailed capital projects program for physical facilities associated with the Miramar Treatment Plant, Miramar Transmission Pipeline, and hydroelectric facilities. The District also maintains a Capital Investment Program to provide regional project support for its retail member agencies. Valley County Water District The Valley County Water District service area overlies a portion of the Main San Gabriel Basin; The District has a total Pumper’s Share of 3.01517% of the annual Operating Safe Yield as determined by the Watermaster. In addition, the District is a shareholder in the Covina Irrigating Company and is entitled to 1.11% of the Company’s water supply. To augment supply the District leases water rights from individuals with property rights in the Basin. The District notes that retail water demand is projected to increase 3% to 5% annually; this rate is higher than expected given the projected population growth. The District can receive imported water through the Upper San Gabriel Valley Municipal Water District and Metropolitan’s Middle Feeder; however this is reserved for emergency use only. In 2003 the District had to use 100% imported water, but since February 2004 the District’s wells have been operational and the District is reducing its imported water deliveries. The District has emergency interties with three adjoining water purveyors: Azusa Light & Water, the Covina Irrigating Company and the San Gabriel Valley Water Company. The District does not use recycled water due to the lack of potential customers and infrastructure within its service area. The District notes that more storage is needed, as well as larger diameter mains and increased booster pump capacity. The Capital Improvement Program is projected through 2007 and includes efficiency testing and rehabilitation on six booster pumps that are used the most. The other pumps are scheduled for future years. The District is also conducting similar testing on its East Well to restore it to original June 29, 2005 – Final Report 44 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley pumping capacity; the water table has dropped and capacity has been reduced by 700 gallons per minute. The District is also planning to upgrade water mains for improved pressure and fire flow. Walnut Valley Water District The Walnut Valley Water District receives potable supply from the Three Valleys Water District. Approximately 95% of the supply is delivered from Metropolitan’s Weymouth Treatment Plant in La Verne with the balance from the Miramar Treatment Plant. The District wholesales potable water to Suburban Water System to supplement their supply for a portion of their West Covina service area. The District shares the Joint Water Line described above with Pomona and the Rowland Water District. In 1993 the District constructed the 5.5 mile Badillo/Grand Transmission Main to double the import capacity and provide an alternative supply route. The District shares capacity in the Badillo/Grand line with the Valencia Heights Mutual Water Company. The District owns and operates a 150 kWh hydroelectric plant at its connection to the Joint Water Line, and sells the power that is generated to the Edison Company. The District operates a recycled water system to reduce potable water demand. Recycled water is obtained from the Los Angeles County Sanitation District’s Pomona Water Reclamation Plant with a small increment of groundwater from the Puente Basin to augment the supply. The original system within the Walnut Valley service area was constructed in 1986. Since then the District has continued to expand the infrastructure, including constructing two wells for recycled water supply. The District supplies recycled water to 239 connections and wholesales recycled water to the Rowland Water District. The District has both potable and recycled water system master plans, prepared in 2002 and 1999 respectively. The new 2 million gallon Ridgecrest Reservoir which will serve Diamond Bar is under construction; it is expected to be completed in June 2005. The District is also in the process of upgrading its service laterals to improve reliability; the program is expected to be complete in 2010. Other capital projects budgeted for FY 2002-2003 include a vulnerability assessment, continued development of the District’s GIS system, upgrades to pump plant facilities, and continued funding for a seventh phase of the radio-read remote meter replacement program. June 29, 2005 – Final Report 45 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.3 FINANCING CONSTRAINTS AND OPPORTUNITIES 3.3.1 Revenue Source and Funding The agencies are primarily funded through water sales and service charges. A few of the agencies receive property tax. With the State budget act of 2004, this will be significantly reduced in FY 2004-2005 and 2005-2006. 3.3.2 Revenues and Expenses Comparison The following, Figure 3.2 –2003-2004 Financial Information, compares the revenues, expenses, reserves and capital improvement program costs of each public water agency reviewed. In cases where FY 2203- 2004 was not provided, FY 2002-2003 was used. This does not create a material discrepancy for data evaluation as it provides some measure of past financial condition. Figure 3.2 – 2003-2004 Financial Information (in thousands) Azusa Light & Water City of Covina City of Glendora City of Industry City of La Verne City of Pomona La Puente Valley CWD Rowland Area CWD Three Valleys MWD Valley CWD Walnut Valley WD $- $ 5,0 00,0 0 0 $ 1 0, 00 0,0 00 $ 1 5, 00 0,0 00 $ 2 0, 00 0,0 00 $ 2 5, 00 0,0 00 $ 3 0, 00 0,0 00 $ 3 5, 00 0,0 00 $ 4 0, 00 0,0 00 $ 4 5, 00 0,0 00 $ 5 0, 00 0,0 00 CIP Reserves Expenses Revenue June 29, 2005 – Final Report 46 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley – CITIES – Azusa Light & Water Azusa Light & Water is funded through water sales and service charges. The Agency has reserves for future capital projects. In 1993 the Azusa Public Financing Authority issued $24,075,000 in Water Revenue Bonds, which matures in 2023. Per the terms of the agreement, the City is required to produce net water revenues that are at least equal to 125% of the annual debt service. At June 30, 2002 the outstanding balance was $20,645,000 and the reserve requirement of $1,715,271 was fully funded. City of Covina The City of Covina accounts for its water utility as an enterprise activity. The two primary sources of revenue are water revenue and investment earnings; a portion of the water revenue is designated for capital projects only. The City uses a Water Utility Fund and Water Capital Fund and has reserves in both funds. In 1999 the City issued $2,925,000 in Certificates of Participation with interest rates ranging from 3.6% to 5.45%. The certificates mature in 2016. The agreement stipulates that the City will generate net water revenues equal to 1.25 times the annual debt service. As of June 30, 2004 the outstanding balance was approximately $2.5 million; the FY 2004-2005 water utility budget includes $264,410 for debt service. City of Glendora The City of Glendora accounts for its water utility as an enterprise activity. The major sources of revenue are water sales and service charges, investment interest earnings, and sales to other water companies. In addition to infrastructure deficiencies noted earlier, the Glendora Water System Study Committee Report found that annual water system revenues were insufficient to cover ongoing operations and maintenance costs and continue to provide adequate contingency reserves to cover a major system failure. Based on the recommendation in the report, the City Council passed a resolution in 2003 establishing two new funds to separately account for reserves for depreciation of current assets and 125% of annual debt service expenses associated with Capital Improvement Fund debt issues. (The City had already established a Capital Improvement Fund.) The recommended reserve levels are 125% of annual debt service, 100% of annual capital expenses and 25% of annual operations and maintenance expenses. Three financing alternatives were considered; due to urgent capital improvement needs long-term bond financing was the recommended approach which the City Council approved. The proposed plan is to issue three $10 million low interest debt instruments. June 29, 2005 – Final Report 47 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley City of Industry The City of Industry Waterworks System is operated through the Industry Public Utilities Commission. Water sales and service charges provide the operating revenue; the City also transfers in revenue from the General Fund. The City has reserves for operational and capital needs. City of La Verne The City of La Verne accounts for its water utility as an enterprise activity with the primary source of revenue being water sales and service charges. The City has reserves for future capital needs and uses a pay-as-you-go approach. The City shares in the ownership of the Miramar Treatment facility. In 1993 new Certificates of Participation were issued to refund the original 1984 issue at a reduced interest rate. The City’s share of the issue is 43.2529% of $12,885,039. Interest rates range from 2.3% to 5.55%. The certificates mature in 2014. The outstanding balance at June 30, 2002 was $8,916,585. City of Pomona The City of Pomona accounts for its water utility as an enterprise activity. The primary sources of revenue are water sales and service charges. In 1999 the City issued two long-term debt instruments. In May 1999, $26,555,000 of Refunding Revenue Bonds was issued to retire an earlier issue and provide funding for water system infrastructure improvements. The interest rate ranges from 3.3% to 5%. The second issue consisted of $27,615,000 in Revenue Bonds with an interest rate ranging from 4% to 5.25%. Both issues are insured through a municipal bond insurance policy that guarantees the payment of principal and interest when due. The policy requires a combined reserve of $3,635,368. As of June 30, 2002 the designated reserves were $3,685,045. – SPECIAL DISTRICTS – La Puente Valley County Water District The La Puente Valley County Water District is funded through water sales and service charges and property tax revenue. The District’s property tax revenue will be reduced by an estimated $115,814 in FY 2004-2005 due to the ERAF III requirement. As part of the settlement with the Potentially Responsible Parties for the groundwater contamination in the Baldwin Park Operable Unit, the District now receives annual reimbursement for the operations and maintenance expenses for the treatment plant as well as a contamination reimbursement. The District was reimbursed for the costs related to the construction of extraction, treatment, and distribution facilities. The District has established a policy to set aside retained earnings for future capital improvements. The reserve set aside as of December 31, 2002 was nearly $2 million. The District had no long-term debt at that time. June 29, 2005 – Final Report 48 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Rowland Water District The Rowland Water District is funded through water sales and service charges as well as property tax revenue. The District’s property tax revenue will be reduced by an estimated $137,500 in FY 2004-2005 due to the ERAF III requirement. The District has reserves of approximately $19 million at June 30, 2002 so this revenue reduction should not affect operations. The District uses a “pay as you go” approach and had no long term debt at June 30, 2002. Three Valleys Municipal Water District The Three Valleys Municipal Water District is funded through water sales, property taxes, service charges, interest, hydroelectric revenue and other revenue sources. The District’s property tax revenue will be reduced by $820,000 in FY 2004-2005 due to the ERAF III adjustment. The District has reserve funding for asset repair/replacement and capital projects. Grant funding received for FY 2004-2005 is expected to exceed $1.2 million to expand and enhance local resource projects. The District has two outstanding long-term debts associated with infrastructure. Certificates of Participation were issued in 1986 and 2003; the outstanding balance (par amount) at June 30, 2004 was $16,125,000. In 2003 the Board of Directors established a reserve policy such that the District will maintain reserves for both restricted and unrestricted purposes. The Restricted Reserve Fund goals are at $11.38 million and include board elections, insurance, employee benefits, standby charge, debt service, and asset repair and replacement. Unrestricted reserves are set at $7.5 million and include operating costs, the capital investment program, emergency reserves and rate stabilization. Walnut Valley Water District The Walnut Valley Water District is funded through water sales, service charges and property tax revenue. The District’s property tax revenue will be reduced by an estimated $436,500 in FY 2004-2005 due to the ERAF III requirement. The District has two long-term debts associated with infrastructure. In 1995 the District issued $3,475,000 in Certificates of Participation with interest varying from 4.0% to 5.3%. In 1998, the District issued $21,705,000 in Certificates of Participation with interest rates ranging from 3.75% to 4.8%. The proceeds of both issues were used to retire existing debt that was incurring a higher interest rate. The annual debt service is approximately $2,060,000 through 2006, decreasing to $1,656,840 in 2007. The outstanding balance at June 30, 2002 was $18,642,283. Valley County Water District The Valley County Water District is funded through water sales, service charges, property tax revenue and interest earnings. The District’s property tax revenue will be reduced by an estimated $128,007 in FY 2004-2005 due to the ERAF III requirement. The District was party to the settlement agreement for groundwater contamination and has received reimbursement for some of its environmental costs. As of August 31, 2003 the District had no long-term debt. June 29, 2005 – Final Report 49 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.4 COST AVOIDANCE AND SHARED FACILITIES OPPORTUNITIES – CITIES – Azusa Light & Water Azusa Light & Water collaborates with the other water agencies in the Main San Gabriel Basin on groundwater management. The City carries out its recharge requirement through the San Gabriel Valley Municipal Water District which imports water directly from the State Water Project and provides it at a lower cost than Metropolitan. City of Covina The City of Covina is controlling the costs of water supply by purchasing water from the Covina Irrigating Company as it has lower rates than the Three Valleys Municipal Water District. City of Glendora Glendora participates in the Main San Gabriel Basin Water Authority. City of Industry The Main San Gabriel Basin Watermaster provides and funds most contaminant testing at the City’s San Fidel well site. The City will be taking delivery from the new San Gabriel Valley Water Company treatment plant when it comes on line in the near future. The City is working with the Rowland Water District, Walnut Valley Water District and South West Suburban Water System to develop a regional recycled water system. City of La Verne The City of La Verne shares ownership of the Miramar Treatment Facility with the Three Valleys Municipal Water District and the Southern California Water Company. City of Pomona The City of Pomona participates in the Pomona-Walnut-Rowland Joint Water Line, which provides a cost-effective means to bring imported water into the service areas of the three agencies. – SPECIAL DISTRICTS – La Puente Valley County Water District The La Puente Valley County Water District is controlling costs associated with its water treatment operations by using excess capacity to produce water for a private purveyor. In addition, the District updated its Water System Master Plan in 2002 to provide guidance for future capital projects. June 29, 2005 – Final Report 50 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Rowland Water District The District is a member of the Pomona-Walnut-Rowland Joint Water Line Commission. The District performs the financial duties required for operation of the line. The District is avoiding the cost of acquiring additional imported water supply by developing recycled water to offset potable demand for industrial and irrigation uses. The District is also working with the City of Industry, Walnut Valley Water District and South West Suburban Water System to develop a regional recycled water system. Three Valleys Municipal Water District Miramar Operations, the water treatment facility, is jointly owned by three entities as follows: Three Valleys (41.56%), City of La Verne (33.63%) and the Southern California Water Company (24.81%). The facility is managed by certified staff 24 hours per day and has the capacity to produce 25 million gallons per day of treated water. Three Valleys is a part of various regional boards such as the Main San Gabriel Basin Watermaster, Chino Basin Watermaster, Six Basins Watermaster, Metropolitan Water District of Southern California, and the San Gabriel Basin Water Quality Authority. The District administers the Six Basins Watermaster. Three Valleys, the City of La Verne, the San Gabriel Valley Municipal Water District, Metropolitan, and the Los Angeles County Department of Public Works have initiated the design of a wellhead treatment project in conjunction with the spreading connection at the Live Oaks Spreading Grounds. Three Valleys received grant funding ($400,000) for construction. One goal of the project is to determine the long-term recharge rate within the Live Oak Spreading Basins and ascertain water quality improvements with the conjunctive use of the Basin. Imported water will be used for recharge. The District is also planning additional spreading grounds improvements at Big Dalton, San Dimas, Forbes and San Antonio Spreading Grounds. Three Valleys has an agreement with the Pomona-Walnut-Rowland Joint Water Line Commission to utilize a pump-back system that reverses the flow in the Miramar pipeline and “pushes” water uphill using the pumps at Fulton and Plant No. 2 with water from MWD’s Weymouth Treatment Plant via the Pomona-Walnut-Rowland Joint Water Line. The agreement provides for when and how to use the system in the event that the Miramar Treatment Plant becomes non-operational. Three Valleys sought cooperation with the Water Facilities Authority, a treatment facility adjacent to the Miramar plant at the Los Angeles/San Bernardino County boundary, to use excess water moving through the treatment facility to supplement the imported Metropolitan water to the Miramar plant. Infrastructure June 29, 2005 – Final Report 51 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley investments were completed. However, due to Metropolitan’s new pricing structure, the Authority has less excess water to deliver through the new infrastructure. The investment has been made and the cooperative venture has begun, but it will likely not be used until Metropolitan adopts a new pricing structure. Four municipal water districts – Foothill, San Gabriel Valley, Three Valleys and Upper San Gabriel Valley – are collaborating on a study to identify opportunities for activities, programs, and projects that could be undertaken cooperatively by all or some combination of the agencies. It is intended to enhance the agencies’ abilities to advance common goals and provide value to the agencies while not creating any adverse impacts. The categories analyzed include Administrative/Management and other Related Areas, Public Relations/Outreach, Water Supply, and Groundwater Management. Valley County Water District The Valley County Water District does not currently share any facilities with other agencies and did not note any opportunities. Walnut Valley Water District As noted above, the District is a member of the Pomona-Walnut-Rowland Joint Water Line Commission. The District is responsible for administration and operations duties related to the pipeline. The District is also working with the City of Industry, Rowland Water District and South West Suburban Water System to develop a regional recycled water system. June 29, 2005 – Final Report 52 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.5 MANAGEMENT EFFICIENCIES – CITIES – Azusa Light & Water Azusa Light & Water is achieving management efficiencies through its management plans and staffing, and sharing operating costs with electric and solid waste utilities services the Agency provides. City of Covina The City of Covina is achieving management efficiency for its water utility by establishing goals and objectives for each component or activity and using performance workload measurements. City of Glendora Each department evaluates services on a regular basis. As part of the annual budget planning process, each Department and Division submits goals for the new fiscal year and a performance and workload indicators report evaluating success in meeting the previous year’s goals. City of Industry The City has entered into a 10-year agreement with the La Puente Valley County Water District to manage and operate the City’s water system, including meter reading and billing. In 2005 the City initiated a project to convert water system data and maps to a GIS database. City of La Verne The City of La Verne routinely evaluates operations and tracks workload. The City Council and department heads participate in a strategic plan workshop. Staff performance evaluations are completed annually. Operating reviews are also performed. In 2005 the City began the process of developing a GIS database of water maps and other system information. The City updated its Strategic Plan in FY 2001-2002. An operational strategy for the Public Works Department was included as well as long-term goals. At the time the information for this review was submitted, the City had not updated its 1995 Urban Water Management Plan. City of Pomona The City of Pomona Water Department monitors productivity and evaluates performance during the annual budgeting process. The City is in the process of changing to Performance Based Budgeting. June 29, 2005 – Final Report 53 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley – SPECIAL DISTRICTS – La Puente Valley County Water District The La Puente Valley County Water District conducts customer surveys as a means of evaluating performance. In addition, staffing and workload are monitored each year as part of the budget process. Rowland Water District The Rowland Water District tracks work duties daily. The General Manager prepares a monthly Operations Activity Report that summarizes operational activities and updates the progress of Capital Improvement Projects. The District was the first agency in California to implement automated meter reading; as a result staff can read 1,400 meters per day compared to 400 manual reads. Operations staff is encouraged to pursue education and certification in water treatment and distribution. Three Valleys Municipal Water District The Three Valleys Municipal Water District has developed a number of strategic, organizational and financial planning studies to improve District operations and management. In 2001 the Board developed an Action Plan to guide future District activities. In 2002 the District conducted a complete organizational assessment, from the top down. In 2003 the Board updated the District’s Strategic Plan. Future work includes an Asset Management study and continued refinement of the Strategic Plan. In conjunction with these efforts, the General Manager prepares an annual work plan that is Board reviewed and approved. This document is also reviewed quarterly by the Board. The Three Valleys Municipal Water District evaluates the administration of the District through reviews of the General Manager and accomplishments throughout the year. Each employee is evaluated twice a year by their immediate supervisor with a final approval by the General Manager. The Board has established three standing committees: Finance/Personnel, Internal/External Affairs and Project/Planning and Development. The committees meet monthly and report on specific items at the monthly Board meetings. Valley County Water District The Valley County Water District routinely evaluates performance and reports on progress at Board meetings as well as in the end of year audit report. A system is in place to monitor productivity. Walnut Valley Water District The Walnut Valley Water District prepares monthly reports for the Board of Directors of ongoing activities and project status. The District conducted a customer service survey and receives feedback from the community through District involvement in community activities. The District is systematically changing meters to radio-read technology to improve efficiency. June 29, 2005 – Final Report 54 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.6 RATE RESTRUCTURING The following figure, Figure 3.3 – Typical Monthly Residential Water Bill, compares reported rates from agencies in the East San Gabriel Valley MSR study area for a 5/8 – 3/4” residential meter and water usage of 20 hundred cubic feet. Figure 3.3 – Typical Monthly Residential Water Bill (5/8” meter and 20 cuff usage) Valley CWD La Puente Valley CWD Azusa Light & Water City of Glendora City of Covina City of Pomona City of Industry Rowland Area CWD City of La Verne Walnut Valley WD $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 Typical Monthly Charge – CITIES – Azusa Light & Water Azusa Light & Water uses a two-tiered rate structure. The Agency expects that rates will increase in the next year another 3% to 4% to recover investments in capital projects, as well as increased cost in operations and maintenance. City of Covina The City of Covina’s usage rate structure is a flat rate based on current hydrologic and water supply conditions: Non-Drought, Moderate Drought and Severe Drought. The rate change from normal to moderate occurs when the safe yield factor as set by the Watermaster is between 0.80 and 0.71 or when June 29, 2005 – Final Report 55 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley the utility is 100% dependent on an alternate water source for 30 consecutive days; the rate change remains in effect for 30 days after the alternate water source is replaced. The rate change from moderate to severe occurs when the safe yield factor as set by the Watermaster is 0.70 or below or when the utility is 100% dependent on an alternate water source for four consecutive months; the rate remains in place for four months after the alternate water source is replaced. The City also charges a CIP surcharge on each account based on meter size. Customers outside city limits pay rates that are 35% higher. Water rates will increase 2% annually through FY 2007-2008. City of Glendora The City of Glendora has a two-tiered rate structure; rates are determined by zone and include a pumping adjustment charge to cover the energy costs of delivering water to each zone. Rates are reviewed annually by the Glendora Water Commission. The Commission recommended increasing the Readiness to Serve (meter) charge 32% for FY 2004-2005 with no change to usage charges. Prior rate increases occurred in 1997 (5%) and 2003 (17%). The recent rate increases are based on a rate study plan that was undertaken to determine the appropriate rate structure in order to provide adequate funding for essential capital improvements. City of Industry The City of Industry uses a flat rate structure. The last rate increase occurred in 2002 when the City was required to purchase supply at retail costs. A rate adjustment may be considered after the new San Gabriel Valley Water Company treatment plant is operational and the associated cost efficiencies have been realized. City of La Verne The City of La Verne’s water rate structure is based on zones with the difference due to pumping costs. The City uses flat rates within each zone. Rates were increased 5% in November 2003. Each residential account pays a monthly surcharge for the Miramar Treatment Facility. With the rate change in May 2004 the surcharge was reduced 60% from $8.00 to $3.20 per month. City of Pomona The City of Pomona uses a two-tiered rate structure. Connections outside the City pay a slightly higher meter charge. Rates are increased annually; previous increases were 7% (FY 2001-2002), 4% (FY 2002- 2003) and 4% (FY 2003-2004). The current rates became effective January 2005. The City charges a flat rate for recycled water based on delivery zone with the price differential due to pumping costs. June 29, 2005 – Final Report 56 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley – SPECIAL DISTRICTS – La Puente Valley County Water District The La Puente Valley County Water District uses a two-tiered rate structure to promote conservation. The current rate structure was adopted in 2002. Rowland Water District The Rowland Water District charges a flat rate within each elevation zone. The District has six zones, and the price differential is due to pumping costs. Recycled water has the same rate structure, with slightly lower rates. Rates were increased 8% in July 2004. The prior rate increase occurred in 1995. The District charges an “acreage supply charge” for new connections. The fee covers capital facilities in place or to be constructed, based on the benefit to the property. The charge is based on the acreage of the land developed. Three Valleys Municipal Water District For FY 2004-2005 the District charges a rate of $478 per acre foot for water from the Miramar facility and $481 from Metropolitan’s treatment plant. Untreated interruptible seasonal long term storage water used for groundwater replenishment is sold at $265 acre foot. Rates are reviewed annually based on increases in Metropolitan’s rates. The District has elected to charge one rate that includes Metropolitan’s tiered structure. The District’s connection fees are considered “fixed charges” and are cross-referenced to three services: 1) management and administration of the Metropolitan water supply deliveries to member agencies, 2) operation and delivery of the Three Valley’s Miramar water treatment plant, and 3) regional services for water resource planning and public information services. Costs are allocated in proportion to demands made on the system. A cost of service formula is used such that unit costs of service are allocated among the member agencies to determine each agency’s cost-share of District activities. Walnut Valley Water District The Walnut Valley Water District charges a flat usage rate for all residential accounts. Both the base rate, or meter charge, and usage rate were increased 1.8% in July 2004. Recycled water rates are 85% of potable usage rates. The District does not charge a connection fee but instead uses an “acreage supply charge” and “reservoir capacity charge” based on the gross size of the property to be served. Valley County Water District The Valley County Water District uses a three-tiered rate structure; rates were increased in August 2003. June 29, 2005 – Final Report 57 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.7 GOVERNMENT STRUCTURE OPTIONS Several of the agencies are providing service outside their boundaries. Per Government Code §56133 (e), out of agency agreements that were in place prior to January 1, 2001 do not require LAFCO approval. – CITIES – The cities within the East San Gabriel Valley are working cooperatively on regional issues and participate in the San Gabriel Valley Council of Governments. No alternative government structure options were noted, except as discussed below. 1) As noted in the West San Gabriel Valley MSR, the City of Azusa is a member agency of the San Gabriel Valley Municipal Water District. However the City’s boundaries have increased since the original formation of the San Gabriel Valley district; there are currently incorporated areas of Azusa that are not within the sphere of influence of the San Gabriel Valley Municipal Water District. The service area of the agency formerly served by Azusa Valley Water Company lies within the Upper San Gabriel Valley Municipal Water District, and a very small portion lies within the Three Valleys Municipal Water District. 2) Azusa Light & Water is providing service outside of the City’s boundaries, including parts of the Cities of Covina, Glendora, Irwindale, West Covina and unincorporated areas. 3) The City of Pomona currently provides water service to the Scenic Ridge area of Chino Hills, which lies outside the City boundaries and current sphere of influence. The City will be evaluating this service area during its General Plan Update. – SPECIAL DISTRICTS – The following issues related to government structure were noted for the special districts: 1) The City of Pomona and the Rowland Water District serve portions of the Walnut Valley Water District service area. When the areas were originally developed, Walnut Valley did not have facilities available to provide service. Pomona serves a small residential and commercial/industrial area within the City north of Temple Avenue. Rowland serves two commercial accounts on Colima Road west of Nogales Street. These areas should be noted as existing agreements. LAFCO should consider revising the boundaries of the Walnut Valley Water District to exclude areas being served by other agencies. 2) The Valley County Water District’s boundary map is different from LAFCO’s map in some areas. This should be reconciled during the District’s sphere of influence update. Also, the District is June 29, 2005 – Final Report 58 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley interested in serving the area to the northwest and west of its existing boundary. This would need to be evaluated with Azusa Light & Water which serves the majority of that area. 3) The Three Valleys Municipal Water District supplies imported water to retail agencies outside of its boundaries because of the proximity and resource needs of contiguous water agencies, particularly in response to groundwater contamination in the Main San Gabriel and Chino Basins. The infrastructure system makes these deliveries more practical and efficient for these neighboring agencies. The District should identify these agencies and service areas for LAFCO’s information in considering sphere of influence updates in the region. 5) Four municipal water districts in the San Gabriel Valley – Foothill MWD, San Gabriel Valley MWD, Three Valleys MWD and Upper San Gabriel Valley MWD – are currently collaborating on a study to identify cooperative functions that the agencies could use to reduce costs, increase opportunities for shared facilities and management efficiencies and reach greater economies of scale. LAFCO should work with the agencies to determine if a discussion of possible governmental structure options has been included in the study. June 29, 2005 – Final Report 59 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 3.8 LOCAL ACCOUNTABILITY AND GOVERNANCE – CITIES – The local accountability and governance of the cities is meeting the required standards for public agencies, with appropriate elections and public notice of council meetings and actions. Table 3.8 City Governance and Local Accountability # of City Council Council Meetings Website Members Azusa 5 4th Monday 6:30 pm www.azusalw.com Covina 5 1st & 3rd Tuesday 7:30 pm www.ci.covina.ca.us Glendora 5 2nd & 4th Monday 7 pm www.ci.glendora.ca.us Industry 5 2nd & 4th Thursday 9 am www.cityofindustry.org La Verne 5 1st & 3rd Monday 6:30 pm www.ci.la-verne.ca.us Pomona 6 1st & 3rd Monday 6:00 pm www.ci.pomona.ca.us Azusa Light & Water is governed by the Azusa Utility Board which is made up of members of the City Council. The City of Industry has established a Public Utilities Commission to provide reliable utility service and assist in the promotion and stability for business owners in the City. The Commission has management control and authority over the Industry Waterworks System. A Board that is comprised of the City Council of the City of Industry governs the Commission. The City of Glendora Water Commission oversees the Water Division’s funds and makes recommendations to the City Council on water rates and policy. The Commission has five members appointed to serve four year terms. The Commission meets on the fourth Thursday of January, April, July and October at 6:00 PM in the City Council Chambers. – SPECIAL DISTRICTS – The following summarizes the governance and local accountability of the special districts within the East San Gabriel Valley MSR study area. La Puente Valley Municipal Water District Date formed: August 1924 Statutory Authorization: Water Code § 30000 et seq. – County Water District Law Board Meetings: 1st and 3rd Tuesday of each month, 5:30 p.m. June 29, 2005 – Final Report 60 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Board of Directors: Title Term Expiration Compensation Charles Aguirre President 2005 $95 per mtg John P. Escalera Vice President 2005 $95 per mtg Joe Alderete Director 2005 $95 per mtg Yvonne Garcia Director 2007 $95 per mtg Vincent House Director 2007 $95 per mtg The Directors are elected at-large by resident voters. District newsletters are mailed to customers semi- annually to keep them apprised of District improvements, water conservation and other water related issues. The District does not have a website. Rowland Water District Date formed: March 13, 1953 Statutory Authorization: Water Code § 30000 et seq. – County Water District Law Board Meetings: 2nd Tuesday of each month, 6 p.m. Board of Directors: Title Term Expiration Compensation* John A. Rowland, V President (Div. 3) Dec. 2005 $110 per mtg Antonio Diliberti Vice President (Div. 5) Dec. 2005 $110 per mtg Rene Rios Director (Div. 1) Dec. 2007 $110 per mtg Anthony J. Lima Director (Div. 2) Dec. 2007 $110 per mtg Robert W. Lewis Director (Div. 4) Dec. 2005 $110 per mtg *Up to 6 meetings per month The District is divided into five divisions; directors are elected by the voters within each division. Meeting notices and the agenda are posted outside the District office and on the website (www.rowlandwater.com). The website contains information on the District’s services, conservation, meeting minutes and other public information. Three Valleys Municipal Water District Date formed: 1950 Statutory Authorization: Water Code § 71000 et seq. – Municipal Water District Act of 1911 Board Meetings: 3rd Wednesday of each month, 8 a.m. Board of Directors: Title Term Expiration Compensation* Luis Juarez Director Dec. 2006 $150 per mtg. David DeJesus Director Dec. 2008 $150 per mtg. Brian Bowcock Director Dec. 2006 $150 per mtg. Bob Kuhn Director Dec. 2008 $150 per mtg. Joe Ruzicka Director Dec. 2006 $150 per mtg. Fred Lantz Director Dec. 2008 $150 per mtg. Dan Horan Director Dec. 2008 $150 per mtg. June 29, 2005 – Final Report 61 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley The compensation policy for Three Valleys in accordance with state laws is as follows: each director receives compensation of $150 per meeting for up to 10 board-approved meetings per month. In addition, the MWD representative is allowed an additional ten meetings per month (at $150 per meeting) related to MWD business for a total of 20 meetings. Directors also receive paid health benefits from the District and contributions to a qualified retirement plan. The Three Valleys District is divided into seven divisions, and the Directors are elected by the voters within each district. The Board has established three standing committees: Finance/Personnel, Internal/External Affairs and Project/Planning and Development. The committees meet monthly and report on specific items at the monthly Board meetings. The Three Valleys Municipal Water District provides public notice of meetings via fax, mail and email. In addition, all agenda, staff reports, minutes and materials for each meeting are posted on the District’s website at www.threevalleys.com. Valley County Water District Date formed: January 1926 Statutory Authorization: Water Code § 30000 et seq. – County Water District Act Board Meetings: 2nd & 4th Monday, 5:30 pm Board of Directors: Title Term Expiration Compensation Vacant President Vice President (Acting Mariana Lake Nov. 2007 $134.01 per mtg. President) Joseph Armendariz Director Nov. 2007 $134.01 per mtg. Dolores M. Holguin Director Nov. 2007 $134.01 per mtg. B. Estela Rubio Director Nov. 2005 $134.01 per mtg. The Board of Directors currently has one vacant position. Meeting notices and agendas are posted on the District’s website and emailed to the local newspaper group. The District’s website includes information on the District, programs, water conservation and water quality (www.vcwdnet.com). June 29, 2005 – Final Report 62 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Walnut Valley Water District Date formed: July 10, 1952 Statutory Authorization: Water Code §34000 et seq. – California Water District Law Board Meetings: 3rd Tuesday of each month, 2 p.m. Board of Directors: Title Term Expiration Compensation Allen Wu Director 2007 $100 per diem/$600 mo max. Edwin Hilden Director 2005 $100 per diem/$600 mo max. Edward Layton Director 2005 $100 per diem/$600 mo max. Donald Nettles Director 2007 $100 per diem/$600 mo max. Keith Gunn Director 2007 $100 per diem/$600 mo max. The District posts meeting notices and agendas on its website and through local newspapers. The District publishes semi-annual newsletters that include District accomplishments and the adopted budget. In addition, information on the District, its services and programs is provided on the website (www.wvwd.com). Board meetings are held in mid-afternoon, which may limit public participation. As part of its public outreach efforts, the District sponsors an annual high school internship program at the District as well as poster and essay contests. June 29, 2005 – Final Report 63 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 4.0 DETERMINATIONS In approving a Municipal Service Review, LAFCO must adopt written determinations for nine factors specified in LAFCO’s governing statute. Determinations for each agency are provided below: Azusa Light & Water DETERMINATIONS 1) Population and Growth Azusa Light & Water serves the City of Azusa and portions of the Cities of West Covina, Covina, Irwindale, and Glendora and unincorporated area. The Agency projects little to no growth through 2025. 2) Infrastructure Needs and Azusa Light & Water relies on the Main San Gabriel Basin and water Deficiencies from the San Gabriel River for its supply. The Agency has installed a water treatment facility at one of the wells to treat for perchlorate. The Agency addresses infrastructure needs through the capital planning and budgeting process and is currently updating its Water System Master Plan. 3) Financing Constraints and The water service of Azusa Light & Water is funded through water sales Opportunities and service charges. The Agency has reserves for future capital needs. The City has issued Water Revenue Bonds and is required to have net water revenues equal to at least 125% of annual debt service. 4, 5) Cost Avoidance Azusa Light & Water carries out its groundwater recharge requirement Opportunities and Shared through the San Gabriel Valley Municipal Water District which imports Facilities water directly from the State Water Project at a lower cost than Metropolitan. 6) Management Efficiencies Azusa Light & Water is achieving management efficiencies through its management plans and staffing, and sharing operating costs with electric and solid waste utilities services the Agency provides. 7) Rate Restructuring Azusa Light & Water uses a two-tiered rate structure; future rate increases are expected to recover investments in capital projects as well as increased costs in operations and maintenance. 8) Government Structure Azusa Light & Water is providing water service throughout its service Options area and no unserved areas were identified. No government structure options were noted. June 29, 2005 – Final Report 64 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 9) Local Accountability and Azusa Light & Water is governed by the Azusa Utility Board which is Governance comprised of City Council members. The Agency has a process for ensuring public notice of meetings. Azusa Light & Water has its own website. June 29, 2005 – Final Report 65 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley City of Covina DETERMINATIONS 1) Population and Growth The City of Covina is projected to have an annual growth rate of 1.2% per SCAG 2005 projections. The area has mixed land uses but is primarily low-density residential. 2) Infrastructure Needs and The City of Covina purchases its water supply from the Covina Deficiencies Irrigating Company. The City is the largest shareholder in the company. The City is no longer able to use its groundwater resources in the Main San Gabriel Basin due to contamination. Covina’s pipeline system is aging. The City is addressing infrastructure needs as funding is available. 3) Financing Constraints and Covina accounts for its water utility as an enterprise activity. It has Opportunities reserves in the Water Utility and Water Capital Funds. In 1999 the City issued Certificates of Participation with an agreement that stipulates that the City will generate net water revenues equal to 1.25 times the installment payments in each fiscal year. The City is challenged to replace its aging pipeline system given current financial constraints. 4, 5) Cost Avoidance The City of Covina is controlling water supply costs by purchasing its Opportunities and Shared supply from the Covina Irrigating Company as the Company has lower Facilities rates than other wholesale providers. 6) Management Efficiencies The City of Covina has developed goals and objectives for each of the service components of the water utility. Performance measurements are tracked. 7) Rate Restructuring The City of Covina uses a flat rate structure; however the usage rate in effect is directly related to water supply conditions (normal, moderate drought and severe drought). The conditions requiring a rate change are detailed in Ordinance 03-1898 and Chapter 13.12 of the Covina Municipal Code. The City imposes a Capital Improvements Program surcharge on all water service accounts. 8) Government Structure The City of Covina is providing water service to a portion of its Options incorporated area. No other government structure options were noted. June 29, 2005 – Final Report 66 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 9) Local Accountability and Covina’s water utility is addressed by the City Council during regular Governance meetings. The City has a process to ensure public notice of meetings and Council actions. The water utility is included on the City’s website. June 29, 2005 – Final Report 67 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley City of Glendora DETERMINATIONS 1) Population and Growth The City of Glendora is providing water service to the city’s incorporated area, adjacent unincorporated area, and small portions of the Cities of Azusa and San Dimas. Glendora is projected to have an annual growth rate of 0.7% through 2025 per SCAG 2005 projections. The City expects that growth will have minimal affect on water demand. 2) Infrastructure Needs and The City of Glendora’s primary water supply is from the Main San Deficiencies Gabriel Basin; this is supplemented by imported water provided by the Three Valleys Municipal Water District. In 2002 the Glendora Water System Study Committee reviewed the condition of the City’s water system and found it to be in “a serious state of deterioration and decline”. An aggressive Capital Improvement Program to rehabilitate the system over the next 30 years was recommended. The City is implementing the recommendations of the Committee and has budgeted for major system improvements in FY 2004-2005. 3) Financing Constraints and The City of Glendora accounts for its water utility as an enterprise Opportunities activity; the primary sources of revenue are water sales and service charges. The City is issuing long-term debt to finance the necessary capital improvements to maintain service levels and reliability. The City has established dedicated reserve accounts for Capital Improvements, depreciation of capital assets, and 125% coverage of annual debt service. 4, 5) Cost Avoidance Glendora is avoiding costs associated with an aged infrastructure system Opportunities and Shared by implementing a capital improvements program that will rehabilitate Facilities system components. The City participates in the San Gabriel Basin Water Authority. June 29, 2005 – Final Report 68 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 6) Management Efficiencies The City of Glendora manages its water utility through the Public Works Department. Performance measurements are tracked and used during the annual budgeting process. The City undertook a Water System study in 2002 to determine the best approach to upgrade the City’s water system. 7) Rate Restructuring The City of Glendora has a two-tiered rate structure; rates are based on delivery zone and include a pumping adjustment charge to cover energy costs. The Glendora Water Commission reviews rates annually and makes recommendations on rate adjustments to the City Council. 8) Government Structure The City of Glendora is providing water service to the incorporated city, Options some adjacent unincorporated area, and small portions of the Cities of Azusa and West Covina. No government structure options were noted. 9) Local Accountability and The Glendora Water Commission oversees the Water Utility funds and Governance makes recommendations to the City Council on water rates and policy. The Water Utility is addressed by the City Council during regular meetings. The City provides public notice of meetings and information on the Water Utility is included on the City’s website. June 29, 2005 – Final Report 69 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley City of Industry DETERMINATIONS 1) Population and Growth The City of Industry is considered built-out and little to no growth is projected. The City of Industry Waterworks System serves only a portion of the City. 2) Infrastructure Needs and The City of Industry receives potable supply from the San Gabriel Deficiencies Valley Water Company and recycled water from the Los Angles County Sanitation District San Jose Treatment Plant. The City has pumping rights to the Main San Gabriel Basin but the water is contaminated; the City does not have treatment facilities. The City plans for the water system infrastructure needs in its Capital Improvement program and annual budgeting process. 3) Financing Constraints and The City of Industry Waterworks System is funded by water sales and Opportunities service charges as well as transfers from the City’s General Fund. The City has reserves for capital projects. 4, 5) Cost Avoidance The City of Industry contracts with the San Gabriel Valley Water Opportunities and Shared Company for water supply. The Main San Gabriel Basin Watermaster Facilities funds and provides all water testing on the City’s well. 6) Management Efficiencies The City of Industry has entered into an agreement with the La Puente Valley County Water District to manage and operate the City’s water system. 7) Rate Restructuring The City of Industry charges a flat rate. A rate adjustment will be considered when the San Gabriel Valley Water Company’s new water treatment facility is operational and the water costs are determined. 8) Government Structure The City of Industry is providing water service to a portion of its Options incorporated area. No government structure options were noted. 9) Local Accountability and The City of Industry Waterworks System is governed by the Industry Governance Public Utilities Commission. The Commission is comprised of the City of Industry City Council members. The City of Industry has a process for ensuring that public notice of meetings is provided as required. June 29, 2005 – Final Report 70 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley City of La Verne DETERMINATIONS 1) Population and Growth The City of La Verne is primarily residential and population is projected to reach 47,883 by 2025. The average annual growth rate will be 1.9% per SCAG 2005 projections. The City has the highest growth rate in the East San Gabriel Valley study area; the City notes that areas of growth are limited and well- defined. 2) Infrastructure Needs and The City of La Verne’s primary sources of water are groundwater from Deficiencies the adjudicated Six Basins and imported water delivered by the Three Valleys Municipal Water District. The City plans for its infrastructure needs during the Capital Improvement Program planning and budgeting process. 3) Financing Constraints and The City of La Verne operates its water utility as an enterprise activity. Opportunities The City charges a surcharge on residential accounts for the Miramar Treatment facility. 4, 5) Cost Avoidance The City of La Verne shares ownership of the Miramar Treatment Opportunities and Shared facility with the Three Valleys Municipal Water District and the Facilities Southern California Water Company. 6) Management Efficiencies The City of La Verne tracks workloads and regularly monitors staff and agency performance. The City has not updated its 1995 Urban Water Management Plan; the City should ensure that it meets the requirements for the 2005 updates. 7) Rate Restructuring The City of La Verne uses a flat rate structure with usage rate based on delivery zone. The price differential between zones is due to pumping costs. 8) Government Structure The City of La Verne is providing water service throughout the City’s Options corporate boundaries. No other government structure options were noted. 9) Local Accountability and The water utility is addressed during City Council meetings. The City of Governance La Verne has a process for ensuring public notice of meetings. Some information on water service is included on the City’s website. June 29, 2005 – Final Report 71 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley City of Pomona DETERMINATIONS 1) Population and Growth The City of Pomona water service area includes the majority of the City’s corporate boundaries as well as the Scenic Ridge area in Chino Hills. The annual rate of growth for Pomona is projected to be 1.2% per SCAG 2005 projections. 2) Infrastructure Needs and Pomona relies on groundwater, local surface water, imported water, and Deficiencies recycled water for its supply. Groundwater is drawn from the Chino Basin, Spadra Basin and Six Basins. The City is in the process of updating its Water Master Plan which will identify infrastructure needs and deficiencies. The City uses a five year planning horizon for its Capital Improvement Program; infrastructure needs and deficiencies are addressed during the annual budgeting process. 3) Financing Constraints and Pomona accounts for its water utility as an enterprise activity; water Opportunities sales and service charges are the largest source of revenue. The City has long-term debt associated with the water system infrastructure. 4, 5) Cost Avoidance Pomona is avoiding the costs of developing additional potable supply by Opportunities and Shared expanding its recycled water system. Facilities The City is a partner in the Pomona-Walnut-Rowland Joint Water Line. 6) Management Efficiencies Pomona monitors performance regularly and tracks workload. 7) Rate Restructuring Pomona uses a two-tiered rate structure. Rates have increased annually over the past five years. June 29, 2005 – Final Report 72 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 8) Government Structure Pomona is providing water service to the Scenic Ridge area of Chino Options Hills. The City will be reviewing this service area as part of its General Plan Update. The City is providing water service to a portion of the Walnut Valley Water District service area that lies within the City’s boundaries. LAFCO should review the water service area boundaries in this area when it is updating the sphere of the Walnut Valley Water District and consider detaching areas within the City of Pomona that are being served by the City. 9) Local Accountability and The City of Pomona’s water utility is addressed by the City Council Governance during regular meetings. The City has a process in place to ensure public notice of meetings. The City provides information on its water service on the City website. June 29, 2005 – Final Report 73 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley La Puente Valley County Water District DETERMINATIONS 1) Population and Growth The La Puente Valley County Water District serves portions of the City of Industry, the City of La Puente and adjacent unincorporated areas of Los Angeles County. The area is considered built-out. Growth will result from infill and increased density as single residential units are converted to multi-family. 2) Infrastructure Needs and The La Puente Valley County Water District receives its water supply Deficiencies from the Main San Gabriel Basin. The District must treat all water for contaminants. The District’s water treatment facility has excess capacity of 1,200 acre- feet per year. The District’s 2002 Master Plan Update noted several system deficiencies. The CY 2003 budget included funding for several of the recommended projects. Outstanding items include reservoir improvements and system upgrades in Pressure Zone 2. 3) Financing Constraints and The La Puente Valley County Water District is funded through water Opportunities sales, service charges and property tax revenue. The District has reached a settlement agreement regarding the groundwater contamination; the responsible parties have reimbursed the District for the costs related to extraction, treatment and distribution and will annually reimburse the operations and maintenance costs for the treatment facility. 4, 5) Cost Avoidance The La Puente Valley County Water District shares the excess treatment Opportunities and Shared capacity with other impacted water purveyors. Facilities 6) Management Efficiencies The La Puente Valley County Water District monitors staff workload and assignments as part of the annual budgeting process. 7) Rate Restructuring The La Puente Valley County Water District uses a two-tiered rate structure to promote water conservation. 8) Government Structure The La Puente Valley County Water District is operating in accordance Options with State Water Code §30000 et seq. No government structure options were noted. June 29, 2005 – Final Report 74 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 9) Local Accountability and The La Puente Valley County Water District provides semi-annual Governance district newsletters to inform customers of District activities, water conservation programs, and other water related issues. The District does not have a website. June 29, 2005 – Final Report 75 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Rowland Water District DETERMINATIONS 1) Population and Growth The Rowland Water District serves portions of unincorporated Rowland Heights, Hacienda Heights and La Puente, and portions of the City of Industry and the City of West Covina. The District projects an annual growth rate of 1.4%. The southern portion of the District is currently undeveloped; a major new community with 3,000-3,600 homes is being considered for that area. If developed, this will significantly increase potable water demand. 2) Infrastructure Needs and The Rowland Water District obtains its potable supply from the Three Deficiencies Valleys Water District. Rowland is expanding its recycled water system to offset potable demand for industrial and irrigation uses. The District plans for its infrastructure needs through its Capital Improvements Program and budgeting process. 3) Financing Constraints and The Rowland Water District is funded by water sales, service charges, Opportunities property tax revenue and interest on reserves. The District uses a “pay as you go approach” and had no long term debt at June 30, 2002. 4, 5) Cost Avoidance The Rowland Water District is avoiding the costs for acquiring Opportunities and Shared additional imported water supply through its recycled water system and Facilities conservation programs. The Rowland Water District shares an imported water pipeline with the City of Pomona and the Walnut Valley Water District. Rowland has capacity rights of 24.3%. Rowland is working with the City of Industry, the Walnut Valley Water District and the South West Suburban Water System to develop a regional recycled water system. 6) Management Efficiencies The Rowland Water District uses an automated meter reading system which significantly improves staff productivity. June 29, 2005 – Final Report 76 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 7) Rate Restructuring The Rowland Water District charges water usage rates based on zones of elevation to cover pumping costs. The District increased rates in July 2004. 8) Government Structure The Rowland Water District is operating in accordance with State Water Options Code §30000 et seq. No government structure options were noted. 9) Local Accountability and The Rowland Water District is governed by a five-member Board of Governance Directors, elected by voters within five geographic divisions. The District provides public notice of meetings and posts minutes on its website. June 29, 2005 – Final Report 77 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Three Valleys Municipal Water District DETERMINATIONS 1) Population and Growth The Three Valleys Municipal Water District serves the East San Gabriel, Pomona and Walnut Valleys. Population is expected to increase at an average annual rate of 0.8% per SCAG 2005 projections. A majority of the District’s service area is built-out; however there are areas of potential new development such as the southern portion of the Rowland Water District and Boy Scout Firestone area. 2) Infrastructure Needs and The Three Valleys Municipal Water District provides imported water to Deficiencies its service area through District-owned and Metropolitan facilities. The Miramar water treatment facility is jointly owned by Three Valleys, the City of La Verne and the Southern California Water Company. The District assists in developing local water resources and has invested in infrastructure to enhance this program. The District addresses its infrastructure needs through its strategic and capital planning processes. 3) Financing Constraints and The Three Valleys Municipal Water District is funded through water Opportunities sales and service charges. The District adopted a reserve policy in 2002 to establish restricted and unrestricted reserves. The District uses reserves, grant funding and long-term debt to finance capital improvements. 4, 5) Cost Avoidance The Three Valleys Municipal Water District is controlling costs Opportunities and Shared associated with imported supply by providing assistance in developing Facilities local resources and conjunctive use. The District participates in a number of boards including the Six Basins Watermaster, Main San Gabriel Basin Watermaster, Chino Basin Watermaster and the San Gabriel Basin Water Quality Authority. The District collaborates with local and regional agencies to effectively manage the water supply and groundwater use. June 29, 2005 – Final Report 78 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 6) Management Efficiencies The Three Valleys Municipal Water District has developed an Action Plan and Strategic Plan to guide District activities. In addition, the General Manager prepares an annual Work Plan that is Board reviewed and approved. This document is also reviewed quarterly by the Board. 7) Rate Restructuring The Three Valleys Municipal Water District reviews rates annually and makes adjustments as needed. The cost of water from the Miramar treatment plant is slightly lower than treated water delivered from Metropolitan’s treatment plant. 8) Government Structure The Three Valleys Municipal Water District is operating in accordance Options with State Water Code §71000 et seq. No other government structure options were noted. 9) Local Accountability and The Three Valleys Municipal Water District provides public notice of Governance meetings via fax, mail and email. In addition, all agenda, staff reports, minutes and materials for each meeting are posted on the District’s website at www.threevalleys.com. June 29, 2005 – Final Report 79 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Valley County Water District DETERMINATIONS 1) Population and Growth The Valley County Water District serves portions of Irwindale, West Covina, and Azusa. The District is projecting build-out in year 2015 with an annual growth rate of 0.6%. Growth will occur primarily due to increased density as single family dwellings are changed to multi-family units. 2) Infrastructure Needs and The Valley County Water District obtains its water supply from the Deficiencies Main San Gabriel Basin. The District has the infrastructure to import water through the Upper San Gabriel Valley Municipal Water District if needed. The District addresses infrastructure needs through its Capital Improvements Program and budgeting process. 3) Financing Constraints and The Valley County Water District is funded through water sales, service Opportunities charges, property tax revenue and interest on reserves. The District uses a pay-as-you-approach and had no long term debt as of August 31, 2003. 4, 5) Cost Avoidance The Valley County Water District does not currently share any facilities Opportunities and Shared with other agencies and did not note any opportunities. Facilities 6) Management Efficiencies The Valley County Water District regularly monitors and evaluates operational performance and productivity. 7) Rate Restructuring The Valley County Water District uses a three-tiered rate structure. The last rate increase occurred in August 2003. 8) Government Structure The Valley County Water District is operating in accordance with State Options Water Code §30000 et seq. No government structure options were noted. 9) Local Accountability and The Valley County Water District currently has one vacant Board Governance position. Public notice is provided through the District’s website and the media. The District’s website includes information on the District, water conservation and other programs. June 29, 2005 – Final Report 80 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley Walnut Valley Water District DETERMINATIONS 1) Population and Growth The Walnut Valley Water District serves all of the City of Diamond Bar; portions of the Cities of Walnut, Industry, West Covina and Pomona; and the eastern portion of the unincorporated Rowland Heights area. The District is projecting an annual growth rate of 0.3%. The District has planned for growth and future development in its potable and recycled water system master plans. 2) Infrastructure Needs and The Walnut Valley Water District relies primarily on imported water Deficiencies supplied by the Three Valleys Water District. The District has developed a recycled water system to offset potable demand. The District has addressed infrastructure needs in its Asset Refurbishment and Replacement Program and has budgeted $1,451,382 for capital projects. 3) Financing Constraints and The Walnut Valley Water District is funded through water sales, service Opportunities charges and property tax revenue. The District uses long-term debt to finance infrastructure improvements. The District has reserves for future capital needs. 4, 5) Cost Avoidance The Walnut Valley Water District is avoiding the cost of additional Opportunities and Shared imported supply through its recycled water and conservation programs. Facilities The District is a member of the Puente Basin Water Agency for the protection and utilization of local, imported and recycled water supply in the Puente Basin. The District is a member of the Pomona-Walnut-Rowland Joint Water Line used to bring imported supply to the three agencies. The District has a hydroelectric plant at the connection with the Joint Water Line and sells the power that is generated to the Edison Company to reduce overall energy costs. 6) Management Efficiencies The District uses its Water Master Plan and Capital Improvement Plan to maximize efficiencies. 7) Rate Restructuring The District adjusts rates annually and uses a flat rate structure. June 29, 2005 – Final Report 81 Los Angeles LAFCO Municipal Service Review Report Water Service – East San Gabriel Valley 8) Government Structure The Walnut Valley Water District is operating in accordance with State Options Water Code §34000 et seq. A portion of the Walnut Valley WD service area is being served by the City of Pomona. LAFCO should review the water service area boundaries in this area and consider detaching areas from the District that are within the City of Pomona and are being served by the City. 9) Local Accountability and The District is governed by a five-member Board of Directors elected by Governance the voters within each District. The District posts notices and other public information on its website. As a retail agency, the District should consider holding its Board meetings in the evening to allow for more public participation. June 29, 2005 – Final Report 82