Southern San Diego County Sewer and Water Municipal Service Review
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S OUTHERN S AN D IEGO C OUNTY W ATER AND S EWER S ERVICE M UNICIPAL S ERVICE R EVIEW Adopted: F EBRUARY 2, 2004 SAN DIEGO LOCAL AGENCY FORMATION COMMISSION 1600 PACIFIC HIGHWAY • ROOM 452 SAN DIEGO, CA 92101 619 531-5400 • www.sdlafco.org T ABLE OF C ONTENTS I ii S OUTHERN S AN D IEGO C OUNTY W ATER AND S EWER M UNICIPAL S ERVICE R EVIEW S OUTHERN S AN D IEGO C OUNTY W ATER AND S EWER S ERVICE M UNICIPAL S ERVICE R EVIEW R EPORT OF THE SAN DIEGO LOCAL AGENCY FORMATION COMMISSION Patty Davis, Chairwoman Bud Pocklington, Vice-Chairman Donna Frye Dianne Jacob Jill D. Greer Bill Horn Andrew L. Vanderlaan Ronald W. Wootton Alternate Members: Greg Cox Harry Mathis Andrew J. Menshek Betty Rexford Michael D. Ott, Executive Officer Shirley Anderson, Chief, Policy Research T ABLE OF C ONTENTS III T ABLE OF C ONTENTS EXECUTIVE SUMMARY..................................................................................................................... vii STAFF RECOMMENDATIONS..........................................................................................................xi THE MUNICIPAL SERVICE REVIEW....................................................................................... xiii MUNICIPAL SERVICE REVIEW DETERMINATIONS........................................................................... xiv CHAPTER ONE: INFRASTRUCTURE, FACILITIES, AND SERVICES 1.0 PLANNING FOR FUTURE SERVICES .......................................................................................1 1.1 PAYING FOR INFRASTRUCTURE ............................................................................................3 1.2 INFRASTRUCTURE DEFICIENCIES ..........................................................................................4 1.3 USE OF EXCESS CAPACITY ..................................................................................................5 1.4 PLANNING AND POPULATION PROJECTIONS...........................................................................6 1.5 INFILL POLICY......................................................................................................................9 1.6 EQUITABLE SERVICE PROVISION.........................................................................................10 1.7 EMERGENCY PLANNING .....................................................................................................12 1.8 APPROPRIATE BOUNDARIES ...............................................................................................14 1.9 EXTENDING SERVICES .......................................................................................................16 1.10 CONSOLIDATING SERVICES.............................................................................................18 CHAPTER TWO: FISCAL ISSUES 2.0 REVENUE SOURCES...........................................................................................................21 2.1 RATES AMD FEES ..............................................................................................................25 2.2 POLICY FOR RESERVES.....................................................................................................30 2.3 LEGAL COSTS....................................................................................................................36 CHAPTER THREE: ADMINISTRATION, MANAGEMENT, AND OPERATIONS 3.0 ORGANIZATIONAL STRUCTURE ...........................................................................................39 3.1 MANAGING HUMAN CAPITAL ...............................................................................................42 3.2 PUBLIC INPUT....................................................................................................................45 iv SOUTHERN S AN D IEGO C OUNTY W ATER AND S EWER M UNICIPAL S ERVICE R EVIEW T ABLE OF C ONTENTS CHAPTER FOUR: GOVERNANCE 4.0 AUTHORITY FOR GOVERNANCE AND SCOPE OF LOCAL AGENCY POWERS .............................49 4.1 PRINCIPLES OF GOVERNANCE.............................................................................................57 4.2 REORGANIZATION..............................................................................................................61 CHAPTER FIVE: MSR DETERMINATIONS DETERMINATION 1: INFRASTRUCTURE NEEDS OR DEFICIENCIES....................................................65 DETERMINATION 2: GROWTH AND POPULATION PROJECTIONS......................................................68 DETERMINATION 3: FINANCING CONSTRAINTS AND OPPORTUNITIES .............................................69 DETERMINATION 4: COST AVOIDANCE OPPORTUNITIES.................................................................72 DETERMINATION 5: OPPORTUNITIES FOR RATE RESTRUCTURING.................................................73 DETERMINATION 6: OPPORTUNITIES FOR RATE RESTRUCTURING ..................................................75 DETERMINATION 7: GOVERNMENT STRUCTURE OPTIONS, INCLUDING ADVANTAGES AND DISADVANTAGES OF CONSOLIDATION OR REORGAZATION OF SERVICE PROVIDERS..................................................................................................77 DETERMINATION 8: EVALUATION OF MANAGEMENT EFFICIENCIES..................................................81 DETERMINATION 9: LOCAL ACCOUNTABILITY AND GOVERNANCE ..................................................86 APPENDIX: SOUTHERN SAN DIEGO COUNTY WATER AND SEWER SERVICE MSR DATA SUMMARY.................... A SAN DIEGO LAFCO MUNICIPAL SERVICE REVIEW GUIDELINES...................................................... B SAN DIEGO LAFCO LEGISLATIVE POLICY L-106........................................................................... C SAN DIEGO LAFCO REQUEST FOR INFORMATION ......................................................................... D SAN DIEGO COUNTY WATER AUTHORITY 2001 RATE SURVEY....................................................... E CONSUMER WATER RATES: ESTIMATE OF AVERAGE MONTHLY COST................................................F REGIONAL MAPS: MAP 1: WATER SERVICES ...............................................................................................G MAP 2: SEWER SERVICES .............................................................................................. H T ABLE OF C ONTENTS V EXECUTIVE SUMMARY PURPOSE OF THE SOUTHERN SAN DIEGO COUNTY WATER AND SEWER MSR The Southern San Diego County Water and Sewer Service Municipal Service Review (MSR) represents a comprehensive evaluation of sub- regional water and sewer services. Within the MSR region, seven local agencies are principally responsible for providing water and sewer services to just under one million residents. SANDAG forecasts indicate that within the next 10 to 15 years, 50,000 acres of vacant land within the region may be converted to uses that will require additional water and sewer services; unquestionably, the region must be positioned to respond to the demand. The purpose of this MSR is to evaluate the status of the region’s current water and sewer service systems and to assess the region’s potential to efficiently meet future demands. Organization of water and sewer service networks Water and sewer services are provided to the MSR region through a network of seven agencies (Appendix: Maps F, G). The Helix Water District (WD), Otay Water District (WD), Padre Dam Municipal Water SOUTHERN SAN DIEGO COUNTY WATER AND SEWER MSR SERVICE PROVIDERS Water Sewer City of Chula Vista (sewer only) D Helix Water District D Lemon Grove Sanitation District D Otay Water District D D Padre Dam Municipal Water District D D Spring Valley Sanitation District D Sweetwater Authority D District (MWD), and the Sweetwater Authority provide water services; the City of Chula Vista, Lemon Grove Sanitation District (SD), and Spring Valley Sanitation District (SD) provide sewer services; and the Otay WD and Padre Dam MWD provide both water and sewer services. E XECUTIVE S UMMARY vii Other service providers that were consulted during the Southern San Diego Water and Sewer Service MSR were the San Diego County Water Authority (SDCWA) and the water and sewer departments of the City of San Diego. The importance of the SDCWA and the City of San Diego’s Metropolitan Wastewater Facility (METRO) to the region’s ability to provide efficient water and sewer services cannot be overstated; however, the MSR’s focus was the Southern San Diego County sub- regional water and sewer service network—not the standing of these larger regional agencies. Agencies within the MSR region can be broadly categorized as either a general-purpose or limited-purpose agency. This is relevant because general-purpose agencies typically have a wider range of powers, including land use authority, and more funding sources than do limited purpose agencies. Regardless of scope of powers and funding, however, all agencies are fiscally autonomous. Within the limits of State law, each local government has the ability to craft unique fiscal policy and practices and each agency is empowered to make independent fiscal decisions. Interdependencies that exist between the region’s agencies are primarily voluntary as no agency has authority over another. ABSTRACT OF MSR DETERMINATIONS The MSR includes 95 determinations in nine areas as required by State Law. Determinations indicate that the region’s current water and sewer service systems are generally adequate and provide efficient services. Revenues to support services, which are overwhelmingly received from enterprise fees, are adequate to support the current system of service delivery and contribute to