Large crowd learns about detachment plans

BONSALL – A town hall meeting on July 7 about an effort by the Fallbrook Public Utility District and Rainbow Municipal Water District to change water suppliers and save ratepayers money drew an overflow crowd of more than 150 people.

The event, held at the Bonsall Community Center, featured FPUD Board President Jennifer DeMeo, Rainbow Board President Hayden Hamilton and included presentations by FPUD General Manager Jack Bebee, Rainbow General Manager Tom Kennedy, Jonathan Rivas of London Moeder Advisors, and Keene Simonds, executive officer of the San Diego Local Agency Formation Commission, who was invited to brief attendees about the LAFCO review process.

"It was great to see so many of our customers turn out to learn about this important issue," said FPUD's Bebee. "Water costs are a significant expense for our customers, so it certainly wasn't a surprise to see such a large number of people come out for this."

"The San Diego County Water Authority has been raising their rates on us every year for the past decade and it has unfairly burdened our customers, especially those with limited incomes, as well as our agricultural community, which is critically important to our economy here," said Rainbow's Kennedy. "Our goal is to stem these rate increases by changing our wholesaler."

Instead of continuing to purchase their water from the San Diego County Water Authority – which has raised water costs on the districts by an average of 8% each year over the past decade – FPUD and Rainbow have submitted applications to LAFCO to become wholesale water customers of the Eastern Municipal Water District in southern Riverside County.

If approved by LAFCO and the voters of Fallbrook and Rainbow, the districts would be able to purchase their water from Eastern at a savings of $7-10 million each year compared to what they are currently paying to the Authority.

The two districts say that the water provided by Eastern would be just as reliable as the water provided by the Authority because the water would come from the same sources and delivered through the same pipelines as those used currently by the Authority.

The districts' claim was recently backed up by an independent consultant hired by LAFCO who concluded that Eastern has the wherewithal to meet the water needs of FPUD and Rainbow well into the future.

At the town hall, Rivas from London Moeder Advisors discussed a study that was conducted last year by his firm, which concluded that FPUD and Rainbow have overpaid nearly $50 million to the Authority over the past 10 years when compared to the benefits they have received. The study also concluded that if FPUD and Rainbow were to change water suppliers, the financial impact on the remaining county ratepayers would be minimal – about 50 cents per month per water meter.

Whether or not FPUD and Rainbow can switch water providers will be up to LAFCO, which is governed by appointed local and elected officials, and is responsible for overseeing the establishment, expansion and boundary changes of cities and special districts, including water districts. LAFCO is currently analyzing the applications for detachment that FPUD and Rainbow submitted last year.

LAFCO is expected to vote on the matter later this year or in early 2022. If approved, FPUD and Rainbow voters would have the final say in an election held in each of the two districts' service areas.

Eastern, which was established in 1950, provides water to more than 850,000 people living and working in Riverside County. It serves the cities of Temecula, Murrieta, Perris, Menifee and several other cities and unincorporated communities.

Submitted by the Fallbrook Public Utility District.