Pictured: October 4th, 2011 Regular Meeting of the Rowland Water District, Rowland Heights, CA

Water Trafficking Deal Could Lead to Bidding War!

October 5,2011

Story by: George Edwardz

Rowland Heights, CA - Water customers of the La Habra Heights County Water District descended upon Rowland Water District’s Headquarters to learn more about a proposed water trafficking agreement, and whether it could lead to an in water bills. Approximately 19 ratepayers, members of the press and LHHCWD General Manager Mike Gualtieri attended the October 4th regular meeting of the RWD Board. At issue was an item on the Board’s agenda titled “Update on Proposed Water Production and Delivery Agreement between La Habra Heights County Water District and Rowland Water District.”

Controversy has surrounded the undisclosed agreement mainly due to the water district’s refusal to release the agreement. They claimed it was a draft and not subject to release under the California Public Records Act, despite being presented to the Board as an agendized open session item at a regular meeting. The agreement would have LHHCWD “wheeling” (trafficking) water for neighboring RWD in exchange for $100,000 annually and seven new fire hydrants along Fullerton Road. The hydrants would be placed on the City’s eastside. The agreement also allows for 10 service connections to existing customers.

Late Tuesday afternoon prior to the 6pm start of the Roland Water Board’s meeting, the LHHCWD released an early draft version of the agreement dated May 31, 2011 to Stephen Blagden, Editor of LaHabraHeights.net. The “DRAFT” agreement would facilitate RWD to move one acre-foot of water, which they purchased in October 2010. At that time, RWD was in negotiations and subsequently purchased water rights from CMPC Transition LLC for $5,000, effectively buying into what is know as ‘The Central Basin Judgment”. This gave the district a foot in the door to purchase or lease more water from the same source that LHHCWD utilizes. As a point of reference, an acre-foot of water equals 435 units or approximately the amount that two La Habra Height’s households use in a year.

Mr. Gualtieri, General Manage with LHHCWD, whose water district leases between 200-300 acre feet of water said he would have “loved” the opportunity to buy one acre foot of water for $5,000. However, he was not aware of the rare offer to sell water rights within the Central Basin. Mr. Gualtieri reportedly seeks and explores every opportunity to obtain additional water rights, of which the district owns 2596 acre-feet. This is in order to avoid buying higher priced Metropolitan Water District water, estimated to be about $859 an acre-foot. LHHCWD, which on average utilizes 2800 acre feet, makes up for the shortfall in water rights by leasing water from various "pumpers" for between $60-$160 an acre-foot.

Rowland water, which only owns one acre-foot, will have to seek additional water rights or leased water in order to make the necessary infrastructure improvements financially viable. Robert Lewis a Director with RWD stated his district identified and has been assured the availability of up 2,000 acre-feet of water on the open market. Mr. Lewis, whose district is 100 percent dependent on imported water, estimated the cost of MWD water will skyrocket to $1,000 an acre foot. That is why his district is seeking other sources of water. But in doing so both water districts will be competing for the same water rights and leased water purveyors.

Ratepayers in attendance at last night’s meeting fear that a bidding war for water could drive up water rates for La Habra Heights and force the water district to become dependent on imported water supplied from MWD. “Why is our water board allowing this to happen when we don't have enough water for ourselves” said one ratepayer. A Rowland official who wished to remain anonymous said the district uses up to 16,000 acre-feet a year and stated simply “ we just want to take sip”. Yet some believe it’s more like a gulp.

Click here to view Rowland Water District meeting (La Habra Heights Agreement)

Click here to view the September 27th meeting of the La Habra Heights Water Board.

EOM

         

 

       

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