KHTS Radio Santa Clarita Radio – Santa Clarita News
A potential new public water district for the Santa Clarita Valley would save approximately $1.6 million annually and nearly $14 million in its first 10 years, according to a new study released by the Newhall County Water District and Castaic Lake Water Agency this week.
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The study also identified opportunities for enhanced government representation and opportunities for better regional water management. The exhaustive report follows a months-long exploration of a new district that began as part of legal settlement discussions between the two districts.
The report can be found here.
“This has been an methodical, painstaking look at what new water district can mean for our residents and businesses,” said Steve Cole, General Manager for NCWD. “The study makes it clear that there are compelling economic, efficiency and enhanced water management opportunities for our region. It’s exciting to be a part of something so significant for our community.”
Economic Benefits
The majority of the savings come from optimized staffing, which is expected to generate $1.3 million in savings each year. Staffing changes would be phased in through attrition (the rate at which employees naturally retire, relocate or seek other career paths), combining similar positions and reassigning of duties. The report also ensured that services would remain the same or improved for local residents.
Outside services, including legal, information technology and accounting, will be reduced by approximately $250,000 annually – or roughly one-third over current costs. Costs for the boards of directors would be $70,000 less each year. A new district could also have one-time savings of up to $4 million in excess real estate. The one-time cost of creating a new agency would be about $500,000.
“This is real money – it’s significant savings for the entire Santa Clarita Valley and it shows we can be better when working together,” said Matt Stone, General Manager of CLWA. “We believed there were potential savings, particularly in combining retail operations and boards, but we now have a much clearer picture. The numbers are significant and the exploration process has been worthwhile.”
The estimates from the report are conservative and have been calculated to ensure current services are retained or enhanced.
“Working together with our management teams has been very beneficial,” said Stone. “We also see the potential to further improve customer service, as we integrate our staffs and operations and continue to leverage new emerging technology.”
Greater Accessibility and Accountability
A new governance structure would also provide transparency, greater accessibility and strong accountability. The report recommends a board that would be elected “by-division”— an approach that creates three evenly populated divisions, each with up to four directly elected directors. This would provide all corners of the Valley an equal voice and direct access to their elected water representatives.
“It’s important to have neighbors electing neighbors,” continued Cole. “A potential new board would retain the same community-level accountability and access, but with the economic advantages of a regional agency that better matches the scale of the Santa Clarita Valley. It’s good government at work.”
The divisions were drawn by expert demographers to ensure they upheld the California Voting Rights Act and accounted for unique boundaries, like Interstate 5.
Enhanced Regional Water Resource Management
The Study also evaluated opportunities for stronger, more integrated regional water management. It determined that significant opportunities will be created from a new district, including:
- Increase recycled water use from 450 acre-feet per year to 10,000 acre-feet per year by 2035
- Ensure greater coordination and consensus for regional groundwater management
- Strengthen of local reliability by blending imported water with groundwater supplies
- Improve service and increase reliability through stronger system integration
Additionally, the report analyzed how a new district could increase its clout with state and federal agencies that are more prone to offer grants and funding for regionally integrated projects. This could increase the flow of funding into the Santa Clarita Valley by significant margins and help advance much-needed regional projects.
Enterprise Accounting – The Public’s Priority
The NCWD and CLWA boards heard from members of the public as well as the Ad Hoc Committee that has explored these issues, that any new district should not lead to shifting of debt or other legacy liabilities between retail service areas. The report recommends an Enterprise Accounting system that would achieve this priority. It would ensure that prior debt or liabilities for past local projects would not be shifted to other retail ratepayers. All areas would share in the savings gained through efficiency of operations.
“The Enterprise Accounting system is really the public’s idea put into practice,” continued Stone. “We heard a strong desire to keep legacy debts and liabilities with their respective former districts, but also the need to build more regional projects and share in savings of the new entity. The Enterprise Accounting system is the right approach to both priorities.”
Next Steps
The report was made available to the public on November 16. The districts are holding a joint public workshop on November 16th and will receive comments through December 13th. If the NCWD and CLWA boards vote to continue progress towards forming a new district, legislation would be necessary to complete.
The above information was provided to KHTS AM-1220 by the CLWA and the Newhall County Water District.
This is based on employees leaving, which may not happen and getting rid of consultants which probably ain’t gonna happen either. Even the general manager admitted that they may need employees for other jobs. CLWA raised rates twice on Valencia after it was bought by them.
And by the way, this “merger” no longer includes Valencia Water, my agency, so it is really just a takeover of Newhall County Water District, who rate payers will lose representation.
BTW – a lot of the public just said no to this, but where never acknowledged. Instead surveys by public relation firms that didn’t even have a place to just say no were touted as proof of support. Give me a break.The “public” isn’t attending these dog and pony shows anymore. Last night there were over forty consultants in the audience making good knows how much per hour and seven members of the public. Please 15 board members present. That was a very expensive meeting.
If they are saving 1.6 million a year then why aren’t they saving 16 million in ten years instead of 14 million. It sounds like they are not very good at simple arithmetic. Can you trust them?
Saving of $1.3 million/year will reduce our current water bills (October 2016) by how much?
Saving of $1.3 million/year will reduce our current water bills (October 2016) by how much? I’m retired and living on a fixed income….
Recycled water? Don’t you mean “Toilet to faucet”? So we are now going to be drinking water like they do in The San Fernando Valley? Let’s not and say we did. The SFV does use reclaimed water to water Woodley Lakes Golf Course, Woodley Park and Lake Balboa. But there are some who want that reclaimed water added and mixed with potable water. Let’s not bow down to some “big wig” in our water agency saving money by having us drink water “cleansed” with cancer causing chemicals.
Valencia Water ratepayers have no representation on this board. They consider Valencia Water as their investment. How arrogant!
Valencia Water ratepayers have had their rates increased twice only they call it revenue enhancement.
Since CLWA purchased the stock of the Valencia Water the ratepayers must pay a dividend of $199,745 four time a year. Almost $80,000. CLWA boardmembers don’t care if the rates have to be raised to pay them they just want their money.
This is about greed not need. Who did you vote for in the last election?.