In a decisive move that aims to resolve a years-long water feud, the San Diego County Water Authority (SDCWA) has settled with two North County water districts for $25 million. After extensive litigation, the Rainbow Municipal Water District and Fallbrook Public Utility District are cutting ties with the SDCWA, parting ways without further legal battles ahead.
The settlement, which allows the two rural agencies to follow through with their detachment plan finally strictly, comes after the overwhelming approval from their respective voters. The decision was supported by a staggering 95 percent of voters in each district, a move that originally had the county water authority bracing for a $140 million hit to cover costs for infrastructure projects. However, SDCWA chair Mel Katz stated after the settlement, "there will be no immediate rate impacts for ratepayers," as the San Diego Union-Tribune reported.
The detachment reflects the end of an exhaustive debate between the regional wholesaler and the two small districts. The Fallbrook and Rainbow agencies will now pursue their intended aim to secure water through the Eastern Municipal Water District, based in Riverside County, under the belief that it can provide a less costly supply than what it received from the SDCWA. The agreement ends all related litigation, as confirmed through an X post from the San Diego County Water Authority.
The San Diego County Water Authority has agreed to a settlement with the Rainbow Municipal Water District and Fallbrook Public Utility District, allowing both to detach from the Water Authority while dropping all litigation. https://t.co/XAJSHevl6i #cawater
— San Diego County Water Authority (@sdcwa) December 31, 2023
The saga included a legislative wrinkle when Assemblymember Tasha Boerner Horvath, D-Encinitas, carried a bill that passed and got signed into law, adjusting the conditions for future detachments by requiring regional voter approval. Still, due to its non-urgency status, the new law will not retroactively affect the recently agreed departure. The SDCWA, originally worried about substantially losing out financially, finds itself absorbing a significantly smaller sum than initially projected. Despite the discrepancy, "While we continue to believe the detachment award should have been higher, RMWD and FPUD are required to pay all costs, above the amount ordered by the Local Agency Formation Commission in addition to its entire exit fee up front," Katz expressed to the San Diego Union-Tribune.
