HomeMy WebLinkAboutOrange County Water District (2) ^.IRFCTORS C h OFFICERS
VALERIE AMEZCUA 2- V� President
DENIS R.BILODEAU,PE. O i CATHY GREEN
CATHY GREEN
NATALIE MEEKS it V First Vice President
DINA L.NGUYEN,ESQ. rFR p IS
DENIS BILODEAU,P.E.
KELLY ROWE,C.E.G.,C.H.
SINCE 1 93 3 Second Vice President
STEPHEN R.SHELDON
VAN IRAN,ESQ.
VAN TRAN,ESQ.
BRUCE WHITAKER ORANGE COUNTY WATER DISTRICT General Manager
ROGER C.YOH,P.E. ORANGE COUNTY'S GROUNDWATER AUTHORITY MICHAEL R.MARKUS,P.E.,D.WRE
March 13, 2023
Megan Yoo Schneider
Board President
Municipal Water District of Orange County
18700 Ward Street
Fountain Valley CA 92708
SUBJECT: JUNE 2022 ORANGE COUNTY GRAND JURY REPORT
RECOMMENDING THE CONSOLIDATION OF THE ORANGE COUNTY
WATER DISTRICT AND THE MUNICIPAL WATER DISTRIC OF ORANGE
COUNTY (MWDOC)
Dear President Yoo Schneider:
Thank you for participating in the Orange County Water District (OCWD; District)
consolidation workshop on March 11, 2023, and for your letter dated March 10, 2023,
indicating your Board's desire to meet with the OCWD Board to discuss consolidation.
In January 2023, the OCWD Board directed its staff to schedule such a meeting, we are
pleased your Board concurs. The District requests the scheduling of this joint board
meeting be prioritized and that both agencies attempt to schedule it by the end of this
month.
As you are aware, the June 2022 Orange County Grand Jury Report recommended
consolidating our two agencies after meeting with numerous retail water agencies and
evaluating the issue. However, there was a criticism the report insufficiently analyzed
the financial, legislative, and institutional aspects of consolidating. As a result, and to
perform our due diligence as a public agency, OCWD requested the Local Agency
Formation Commission of Orange County (LAFCO) to further study the consolidation of
OCWD and MWDOC, as a part of OCWD's scheduled Municipal Service Review
(MSR).
This is an issue that has been debated in the Orange County water community for
decades, it's time for consolidation to be comprehensively analyzed. LAFCO will review
this issue and prepare a detailed and objective independent study of the benefits and
cost of consolidation that may then be used by both Boards to determine future action.
PO Box 8300 18700 Ward Street (714)378-3200 www.ocwd.corn
Fountain Valley,CA 92728-8300 Fountain Valley,CA 92708 (714)378-3373 fax
Megan Yoo Schneider
March 13, 2023
Page 2 of 2
As government agencies we are accountable to our ratepayers to fully explore all
options that may lead to greater efficiencies, better services, and more economical
costs.
To continue to move forward on this critically important issue, at its March 11 workshop,
the OCWD Board unanimously voted to invite MWDOC to participate in the LAFCO
study as a co-applicant. This would allow MWDOC to assist in developing the study's
scope and directly participate in future meetings with LAFCO, ensuring its concerns and
issues are fully addressed.
Although the cost of this work has yet to be determined, an estimate of$250,000 has
been provided. OCWD recommends allowing for and budgeting for an additional 20% of
costs which brings the total to $300,000, a cost that would be shared 50/50 by both
agencies.
OCWD hopes your board supports this collaborative and transparent process and joins
us as a co-applicant on the LAFCO study. We request that you advise us of your
board's decision within the next 30 days. The District looks forward to working with you
to better meet Orange County's water needs.
Sincerely
4Y'
Cathy Green
OCWD Board President
Cc: MWDOC Board of Directors
MWDOC Member Agencies
Harvey De La Torre, Interim General Manager, MWDOC
Bcc: OCWD Board of Directors