HomeMy WebLinkAboutItem 08 - OC Grand Jury’s Investigative Report, Findings and Recommendations Regarding “Water in Orange County Needs One Voice” Public Works Agency
www.santa-ana.org/pw
Item # 8
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 20, 2022
TOPIC: Orange County Grand Jury’s Investigative Report, Findings and
Recommendations Regarding “Water in Orange County Needs One Voice”
AGENDA TITLE
Orange County Grand Jury’s Investigative Report, Findings and Recommendations
Regarding “Water in Orange County Needs One Voice”
RECOMMENDED ACTION
Receive and file the Orange County Grand Jury’s report, findings and recommendations
regarding wholesale water policy and operations in Orange County needing “One Voice”
and authorize the City Manager to deliver the City’s response to the findings and
recommendations to the Presiding Judge of the Superior Court.
DISCUSSION
On June 22, 2022, the Orange County Grand Jury (OCGJ) issued a report with findings
and recommendations regarding the establishment of a singular wholesale water supply
agency in Orange County. The OCGJ report aims to, among other things, address the
merits related to the formation of “One Voice” in the Orange County wholesale water
structure.
Most of Orange County relies heavily on imported water for its ongoing supply, as well as
some of its groundwater storage replenishment needs. Metropolitan Water District of
Southern California (MET) supplies imported water to Southern California. While the cities
of Santa Ana, Anaheim and Fullerton purchase imported water directly from MET, other
water suppliers in Orange County purchase imported water from Municipal Water District
of Orange County (MWDOC), who buys it from MET. Orange County Water District
(OCWD) supplies groundwater to the retail water agencies and cities geographically
situated in the Orange County Groundwater Basin, which includes the City of Santa Ana.
Exhibit 1 is the OCGJ’s complete report. As a result of the investigation, OCGJ issued six
findings and two recommendations. The OCGJ is requesting that the City of Santa Ana
respond to five findings and both of the recommendations. Exhibit 2 outlines the OCGJ
findings, recommendations and the City’s responses. Upon authorization by the City
Council, the responses in Exhibit 2 will be submitted to the Presiding Judge of the
Superior Court.
Orange County Grand Jury Response Regarding Water
September 20, 2022
Page 2
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ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. County of Orange Grand Jury Report, Water in Orange County Needs “One Voice”
2. City’s Response to County of Orange Grand Jury Report, Water in Orange County
Needs “One Voice”
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency
Approved By: Kristine Ridge, City Manager
Water in Orange County Needs “One Voice”
GRAND JURY 2021-2022
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 2
Table of Contents
SUMMARY ................................................................................................................................... 3
BACKGROUND ........................................................................................................................... 4
REASON FOR THE STUDY ...................................................................................................... 4
METHOD OF STUDY ................................................................................................................. 4
INVESTIGATION AND ANALYSIS ......................................................................................... 5
Status Quo ............................................................................................................................... 5
Differences in Supply Sources ............................................................................................. 10
History, Governance and Authorizing Legislation.............................................................. 11
Services Provided by Wholesalers & Retailers .................................................................... 12
Where Do We Go from Here? .............................................................................................. 13
FINDINGS ................................................................................................................................... 16
RECOMMENDATIONS ............................................................................................................ 16
COMMENDATIONS ................................................................................................................. 17
RESPONSES ............................................................................................................................... 17
Responses Required .............................................................................................................. 18
Responses Requested ............................................................................................................ 19
GLOSSARY................................................................................................................................. 22
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 3
SUMMARY
The future of a reliable water supply for California, as well as Orange County (OC), is at risk.
The intense dry spell in the West, the worst in 1,200 years, is being labeled a “Mega Drought.”0F
1
Multiple years of drought and inconsistent availability of imported surface water from Northern
California and the Colorado River should inspire OC leaders responsible for a reliable water
supply to consider new ways to offset the likely depletion of aquifers and reservoirs.
Ronald Reagan once said: “No government ever voluntarily reduced itself in size.” However, it
is important that Orange County water providers consolidate their resources and establish a
unified voice to lead the County more efficiently in its water policies and planning. Multiple
water experts agree it is time to coordinate strategies in water conservation, development of new
supply and infrastructure, and preparation for the possibility of continued drought, disaster, and
State-mandated water cutbacks.
Providing water to Orange County residents is a complicated process and requires the work of
water wholesalers and retailers. Retail water agencies (districts and cities) are the direct link to
residential and commercial customers. It is they who set the retail price for the water that is
delivered. Providers of drinkable water to these retail entities are the wholesalers (suppliers) of
imported and local groundwater from the aquifer.
The current structure of wholesale water supply and operations in Orange County, although
fragmented between Orange County Water District (OCWD), Metropolitan Water District of
Southern California (MET), and Municipal Water District of Orange County (MWDOC), has
been successful in providing reliable, high-quality drinking water. While differences in geology
and geography dictate different water supplies, no single governmental body is solely
responsible for wholesale water policy and operations in Orange County, even though providing
future reliable water supply is becoming more challenging.
While the processes of supplying wholesale groundwater and imported water are arguably
dramatically different, complex, and should remain separated in OC, the Orange County Grand
Jury (OCGJ) has determined that all sources of water are interconnected and would be best
administered by one governmental entity. All the water flowing to OC taps looks the same,
whether imported or groundwater, so why do we need two wholesale agencies?
This single leadership structure, whether through consolidation of existing dual entities (OCWD
and MWDOC) or creation of a new water authority, is achievable through a combination of
governance and local and State legislative changes that authorizes the single organization to lead
all aspects of Orange County wholesale water. Although any consolidation or formation of a new
water agency would pose political, administrative, and operational challenges, the OCGJ
concluded that, at long last, it is time for Orange County to operate with “one water voice.”
1 February 14, 2022, Peer reviewed study published in the journal Nature Climate Change
https://doi.org/10.1038/s41558-022-01290-z
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 4
BACKGROUND
Multiple prior Grand Jury Reports have addressed water issues, including water challenges and
opportunities jointly being faced by all of Orange County. One report pointed out disparities
between the North/Central and South County’s water sources, the fragmented governance, and
the significant differences in topography.1F
2 Another report informed the public about
sustainability of the local water supply and future needs, along with evaluating the efforts of the
two major wholesale water agencies in the County.2F
3
Orange County relies heavily on imported water for its ongoing supply, as well as some of its
groundwater storage replenishment needs. Metropolitan Water District of Southern California
(MET) supplies imported water to Southern California. Municipal Water District of Orange
County (MWDOC) buys imported water from MET and sells it to Orange County’s retail water
agencies (cities and special districts). Orange County Water District (OCWD) supplies ground
water to the retail water agencies and cities geographically served by the aquifer and wells.
REASON FOR THE STUDY
The consolidation of OCWD and MWDOC has been explored in the past, debated by wholesale
and retail water agencies, but ultimately never accomplished. The formation of a new Joint
Powers Authority is one option. But no matter how a consolidation would be accomplished, the
OCGJ concluded that now is the time to have a single wholesale water supply agency in Orange
County. Based on statements made during numerous OCGJ interviews, multiple water
professionals support moving from two to one wholesale entity for Orange County.
The OCGJ is concerned that opportunities to operate, innovate, lobby, capitalize and coordinate
communication are not being optimized with Orange County’s current wholesale water structure,
which is split between two key, but very different, agencies. This report will, among other things,
address the merits related to the formation of “One Voice” in the Orange County wholesale
water structure. It will highlight ways in which Orange County can better address water supply,
operations, and infrastructure. The report will not recommend specifically how a single structure
comes to fruition legislatively.
METHOD OF STUDY
The Grand Jury evaluated the efforts of the existing primary water entities in Orange County—
MWDOC and OCWD—to determine what is working well, and the challenges and opportunities
currently existing. In its investigation, the OCGJ used the following sources.
2 2009-2009 Grand Jury report titled Paper Water
3 2012-2013 Grand Jury report titled Orange County Water Sustainability: Who Cares?
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2021-2022 Orange County Grand Jury Page 5
• In-person and virtual interviews. Specifically, interviews of current and former Water
District Managers, City and Regional Water Managers and other involved State entities
and individuals.
• Water District website meeting minutes and document review.
• Independent research (articles, websites, reports, minutes, documents, etc.).
• Research of applicable State and local water-related statutes and ordinances.
• Site tours of water and sanitation districts’ operations.
• Past Grand Jury reports.
• 2021 Orange County Water Summit.
The interviews included personnel from water agencies that represented a cross section of
regional and local wholesalers and retailers to obtain a diversity of perspectives based on
geography, demographics, and practices. The investigation took into consideration the variety of
characteristics that exist in the County, including:
• North compared to South County sources of water supply (reliance on imported water).
• Variety of projects to provide water supplies during normal and emergency times.
• Diversity of projects and plans to increase reliable sources of water supply including.
categories related to conservation, recycling for irrigation and potable use, storage,
desalination options, etc.
• Multi-agency collaboration.
INVESTIGATION AND ANALYSIS
Overall, California water sources come from imported supplies (State Water Project in Northern
California and the Colorado River), groundwater, stormwater, water transfers, desalination, and
water recycling. Orange County, like the rest of California, relies on a variety of sources, with
the exception of desalination which is currently in the planning stage.
Status Quo
To best understand the background of wholesale water in California, and specifically Orange
County, one must examine the three major governmental agencies involved: Metropolitan Water
District of Southern California (MET), Municipal Water District of Orange County (MWDOC),
and Orange County Water District (OCWD). These agencies have similar names but very
different responsibilities. The role of retail water districts will also be explained.
Metropolitan Water District of Southern California
MET provides water from the Colorado River and the State Water Project from Northern
California to Southern California. It wholesales this imported water to its Orange County
member agencies, MWDOC and the independent cities of Anaheim, Fullerton, and Santa Ana.
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 6
MET provides most of the water imported into Orange County. MET currently delivers an
average of 1.7 billion gallons of water per day to a 5,200 square mile service area. MET is a
group of 26 cities and water districts providing drinking water to over 19 million people in Los
Angeles, Orange, San Diego, Riverside, San Bernardino, and Ventura counties.
Municipal Water District of Orange County
MWDOC acts as a pass-through agency for MET’s imported water. This imported water is sold
to MWDOC’s 27 member agencies which, except for Fullerton, Anaheim and Santa Ana, covers
the entire County. MWDOC also sell untreated water to OCWD for ground water discharge.
MWDOC does not own or operate any water infrastructure.
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Orange County Water District
OCWD manages the groundwater basin in the north and central part of the County. OCWD does
not directly provide water to any residents or businesses, except treated wastewater for irrigation
in the Green Acres Project. The Green Acres Project is a water reuse effort that provides
recycled water for landscape irrigation at parks, schools and golf courses and some industrial
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 8
uses.3F
4 OCWD’s primary role is to manage the basin and provide local water retailers with a
reliable, adequate, and high-quality supply of water.4F
5 In addition, OCWD operates the
Groundwater Replenishment System (GWRS) in partnership with the Orange County Sanitation
District (OCSAN). This state-of-the-art water purification project can produce over 100 million
gallons of high-quality potable water per day for aquifer recharge. OCWD provides groundwater
to 19 municipal and special water districts and supplies approximately 77 percent of the water
supply for North and Central Orange County. OCWD is the only wholesale groundwater agency
for Orange County and is a customer of MWDOC for imported needs to supplement the aquifer
recharge serving North/Central County. OCWD currently has $1.5 billion in capital
infrastructure assets.
4 www.ocwd.com/about/
5 Ibid.
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Additional Supply for OCWD
The Santa Ana River is the largest coastal stream in Southern California. Flowing west from the
San Bernardino Mountains, the river winds through San Bernardino and Riverside Counties
before reaching Orange County at Prado Dam, then traveling through the OCWD aquifer to
supplement recharge, before terminating at the Pacific Ocean. The river is joined by Santiago
Creek and flows to the ocean between Huntington Beach and Newport Beach.5F
6
Retail Water Districts
Retail water organizations are the direct connection of supplying water to residential and
commercial consumers. There are 29 retail water providers throughout Orange County. These
water providers include cities, special water districts/agencies and one private water company.
6 www.ocwd.com/what-we-do/
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Differences in Supply Sources
South Orange County’s approximate 600,000 residents rely primarily on imported water (70-100
percent of needed supply depending on location) from hundreds of miles away. The imported
water is purchased through the Municipal Water District of Orange County (MWDOC).6F
7
North and Central County’s roughly 2.8 million residents rely primarily (19-99 percent
depending on location) on groundwater supplied OCWD, which refills the Orange County
Groundwater Basin with many different water supplies: water from the Santa Ana River; local
rainfall; treated and purified wastewater through the Groundwater Replenishment System
(GWRS); and imported water from the Colorado River and Northern California.7F
8
7 www.ocwd.com/about & www.mwdoc.com/wp-content/uploads/2017/05/Water-Supply.pdf
8 www.mwdoc.com/wp-content/uploads/2017/05/Water-Supply.pdf
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History, Governance and Authorizing Legislation
MET
In 1928, the Metropolitan Water District Act was established by the California Legislature. The
original purpose was to construct and operate the 242-mile Colorado River Aqueduct, which runs
from an intake at Lake Havasu on the California-Arizona border to an endpoint at Lake Mathews
reservoir in Riverside County. MET has a 38-member board of directors representing the
district’s 26 agencies. Orange County is represented on the MET Board by seven Board
members. MET has imported water from the Colorado River since 1941 and from Northern
California since the early 1970s.8F
9
MWDOC
MWDOC is a wholesale water supplier and resource planning agency that was established in
1951. Governed by a seven-member Board of Directors,9F
10 MWDOC is MET’s third largest
member agency and appoints four representatives to advocate the interests of Orange County on
the Metropolitan Water District Board.10F
11
OCWD
The Orange County Water District was formed in 1933 by a special act of the California
Legislature to protect Orange County’s rights to water in the Santa Ana River. OCWD is
governed by a 10-member Board of Directors, seven of whom are elected, and three are
appointed by the city councils of Anaheim, Fullerton, and Santa Ana.11F
12
Retail Water Districts
Each retail water district was established throughout Orange County’s history and provides water
directly to consumers. They are each governed by an elected board of directors, respective city
councils, or private investors.
Local Agency Formation Commission (LAFCO)
As part of California’s water governance, LAFCO oversees geographic boundaries, evaluates
cost-effective and efficient public service delivery, and explores potential alternatives to meet the
service demands of the existing and future County population. Orange County LAFCO was
founded in 1963 and strives to ensure the delivery of effective and efficient public services,
including water, by local governments to the County’s residents.12F
13 Orange County water
9 www.mwdoc.com/about-mwdoc; www.mwdh2o.com/who-we-are/our-story/
10 www.mwdoc/about-us/about-mwdoc
11 www.mwdoc.com com/wp-content/uploads/2017/06/So-Cal-Water-Wholesale-Retailers.pdf
12 www.ocwd.com/about/
13 www.oclafco.org/about-us/agency/
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professionals believe the process of creating one wholesale water agency would first go through
LAFCO formation before moving on to State legislation and approval.
Services Provided by Wholesalers & Retailers
The following water services are currently in operation for Orange County.
MET
• Delivering wholesale water supplies from the Colorado River and State Water Project.
• Managing water resources including water storage programs (groundwater banking and
reservoir), transfers and exchanges, groundwater recovery, recycling, stormwater capture,
and potential seawater desalination.
• Operating water system including treatment, quality monitoring, conveyance,
distribution, and support.
• Engineering, safety, and regulatory services such as infrastructure protection,
maintenance, and improvement programs.
• Managing energy operations.
• Planning for emergency water supply interruption due to earthquake, fire, power failure,
public health, and other unexpected crises.
• Planning for capital investment.
MWDOC
• Purchases wholesale water from MET, approximately 70.2 billion gallons of water
annually, and delivers to its 27 member agencies.
• Provides studies, analysis and programs related to water supply development, including
desalination, and system reliability and use efficiency.
• Offers planning assistance and local resource development in areas of water recycling,
groundwater recharge, and conservation.
• Offers residential and commercial rebate programs.
• Offers leak detection services to its members.
• Develops and administrates disaster preparedness, response, and recovery strategies
through the Water Emergency Response Organization of Orange County (WEROC). This
organization involves both water and wastewater agencies.
• Provides public education and community outreach.
OCWD
• Manages Orange County’s wholesale groundwater supplies: the basin consisting of a
large underground aquifer to ensure a reliable supply, the Santa Ana River watershed,
and the Groundwater Replenishment System (GWRS).
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2021-2022 Orange County Grand Jury Page 13
• Replaces groundwater that is pumped out of the basin every year with Santa Ana River
watershed, recycled, imported, storm and natural incidental water recharge.
• Ensures groundwater supply safety and quality through monitoring and testing.
• Recycles water primarily through the GWRS which takes treated wastewater that
otherwise would be sent to the Pacific Ocean and purifies it for aquifer recharge.
• Participates in legislative and community engagement and education.
• Develops additional innovative programs such as Forecast Informed Reservoir
Operations (FIRO) at Prado Dam, capturing and recharging stormwater in the Santa Ana
River, and anticipating and optimizing stormwater runoff.
• Coordinates contaminant treatment, financial resource needs, and policy such as for Per-
and polyfluoroalkyl substances (PFAS) which enter the aquifer and wells primarily
through the Santa Ana River flows. Additionally, organizes litigation and accountability
for the contaminant sources.
Retail Water Districts
In addition to being the direct link to consumers, retail agencies provide several additional
services beyond those provided by wholesalers. Those services include maintaining water quality
and testing throughout their distribution systems, repair and replacement of critical
infrastructure, regulatory compliance, customer service, water use conservation, recycled water
for irrigation or other non-potable uses, and public outreach and health-related services.
Where Do We Go from Here?
Assessment of Current State
Reliable sources shared opinions with the OCGJ that the current OC wholesale structure is
“dysfunctional”, “prevents speaking with one voice for all of Orange County water interests”
involving the aquifer and imported water sources, and “currently provides redundant services
with redundant costs.” Also, multiple member agencies of MWDOC have expressed
dissatisfaction with MWDOC’s operating effectiveness related to MET board and legislative
representation, member charges for provided services, and the scope of emergency
preparedness.13F
14
In addition, this dual structure of MWDOC and OCWD has resulted in missed opportunities for
the County in the form of more extensive multiple agency collaboration, increased operating
efficiency, decreased reliance on imported water, and the creation of a more reliable water
14 Information based on multiple interviews, past agreements between MWDOC and MWDOC member agencies,
and LAFCO Municipal Service Reviews.
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 14
supply.14F
15 Currently, many projects are undertaken by individual or small groups of retail
agencies that could be more expansive if guided by a single wholesale water supplier providing
diverse water sources.
Another missed opportunity is a lack of coordinated County analysis about the benefits and
drawbacks related to potential desalination projects. Even though desalination projects
potentially impact the water supply for all of Orange County, OCWD and MWDOC
independently consider these desalination projects and their impact.
Furthermore, many water experts believe that this fragmentation results in less than optimum
legislative lobbying effectiveness. This affects programs such as water conservation, related
water consumption standards such as State storage projects to capture more water supply during
wet years, contamination treatment standards, and the Delta Conveyance System, which is a
proposed more efficient and effective system to move water from Northern California to the
central and southern part of the State.
Benefits of a Single County Agency - “One Voice”
The Orange County Grand Jury found that creation of a single County wholesale water agency to
serve as a conduit for both imported and groundwater would be most effective in coordinating
water supply diversification, major infrastructure investments, and developing forward-thinking
policies and practices. This single agency would also help facilitate fiscal and environmental
responsibility.
Orange County water agencies have earned a tremendous reputation for innovative projects and
strategies related to increasing a reliable water supply, even in drought conditions. How do we
leverage what already is exemplary and collaborative in Orange Counter water operations?
• Groundwater Replenishment System (GWRS)
• Santa Ana River Conservation and Conjunctive Use program (SARCCUP)15F
16
• Inter-county perspective with neighboring jurisdictions of the Inland Empire, San Diego,
and Los Angeles Counties.
• Purple water recycling for irrigation coming from treated waste and stormwater capture.
• Burris Basin conversion to Anaheim Coves Trail (OCWD / City partnership).16F
17
Water experts believe “One Voice” would result in increased influence on the MET Board. The
OCJG concluded that having all types (groundwater and imported water) of wholesale water
15 Information based on multiple water professional interviews.
16 www.ieua.org/read-our-reports/santa-ana-river-conservation-and-conjunctive-use-program/
17 http://www.santa-ana-river-trail.com/trail/burris_basin.asp
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providers occupy “seats at the table” would be beneficial to Orange County as a whole and for
MET. Additional benefits of a one wholesale water entity include:
• Increased coordination of financial support and capital resources from local, State, and
federal sources. An example is in the funding for well contamination remediation
utilizing an ionization process.
• More influence at the local, State, and federal levels. Examples include the Delta
Conveyance17F
18 system, additional storage capacity, and preservation of imported supplies
from the State Water Project.
• Increased collaboration leading to additional infrastructure shared by wholesale and
retail, both for emergency and longer-term everyday use, to move water around as
needed.
• Centralized planning for emergency water supply interruptions rather than independent
efforts of wholesale and retail water organizations.
• Increased coordination between North and South County for matters such as water
banking in Central County for use in South County.
• Cost savings by eliminating duplication of administrative, professional, consultant,
lobbying and other expenses currently existing at OCWD and MWDOC.
• Singular County leadership in forming conservation strategies, public outreach, and
education.
Concerns related to creating “One Voice”
The Orange County Grand Jury recognizes that with any governance or business model change
obstacles will exist to forming a consolidated or new wholesale water agency. Overall,
proponents of this change are concerned that there is a lack of political will and that “protecting
my own turf” philosophies will get in the way of doing the right thing for reliable water supply in
the future. Some additional hesitation exists from some Orange County water board and
management professionals that believe:
• Imported versus groundwater requires specialized knowledge and a unique operational
approach and should not be combined.
• Staff reductions will occur.
• Merging of retirement pension and benefit liabilities will be complicated and expensive.
• Development of a new Board of Directors structure may cause a loss of representation of
the unique water needs of different parts of the County.
18 www.mwdoc.com/wp-content/uploads/2020/06/Delta-Conveyance-Project-and-EcoRestore.pdf
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• Consolidation of the existing two wholesale water districts, OCWD and MWDOC, or the
forming of a new agency would be complicated. The process would likely begin through
Orange County LAFCO before moving to State legislative level, both of which would be
divisive and risk political influence and interference when revising local and State water
acts.
Despite these complications and challenges, the OCGJ concluded that the County will be better
served by creating a “one voice” agency to lead and represent all aspects of wholesale water
operations in Orange County.
FINDINGS
F1 A singular water authority for Orange County’s wholesale water supply likely would
result in further opportunities at the local, State, and federal levels in legislation, policy
making and receiving subsidies and grants.
F2 The current fragmented water system structure and operations provides challenges as it
relates to development of new interconnected infrastructure as well as maintenance of
existing systems.
F3 There is a great disparity between the North/Central and South Orange County water
sources, management, and operations carried out by OCWD and MWDOC.
F4 South Orange County has many smaller retail water districts that lack a formal
centralized leadership. Notwithstanding this lack of structure, South Orange County retail
water districts have displayed effective collaboration when dealing with one another.
F5 Orange County Water District is a recognized worldwide leader in groundwater resource
management and reclamation. Its leadership, innovation, and expertise can be further
utilized to serve all of Orange County in developing additional innovative and beneficial
programs.
F6 Orange County currently does not have a countywide coordinated policy regarding water
conservation, which results in difficulty when complying with any new State-mandated
conservation regulations.
RECOMMENDATIONS
R1 By January 2023, Orange County wholesale water agencies should formally begin
analysis and collaboration towards forming a single wholesale water authority or
comparable agency to operate and represent wholesale water operations and interests of
all imported and ground water supplies. (F1, F2, F3, F4, F6)
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R2 Any future “One Voice” consolidated Orange County wholesale water authority should
have Directors that examine and vote on issues considering the unique needs of all water
districts. (F1, F2, F3, F4, F6)
COMMENDATIONS
• Orange County Water District (OCWD) commitment to sound planning and state-of-the-
art technology to provide water to the people of Orange County. Highly recognized,
OCWD, along with Orange County Sanitation District, has the world’s largest
Groundwater Replenishment System (GWRS).
• Municipal Water District of Orange County (MWDOC) for many provided services
related to emergency planning, public education, water reliability and delivery reports,
leak detection service, rebate and conservation programs and many other “choice”
services.
• All the current wholesale and retail water districts in Orange County for their efforts to
collaborate and strategize to better serve Orange County Citizens despite the lack of a
centralized administration.
RESPONSES
The following excerpts from the California Penal Code provide the requirements for public agencies
to respond to the Findings and Recommendations of this Grand Jury report:
California Penal Code Section 933 requires the governing body of any public agency which the
Grand Jury has reviewed, and about which it has issued a final report, to comment to the
Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters
under the control of the governing body. Such comment shall be made no later than 90 days after
the Grand Jury publishes its report (filed with the Clerk of the Court). Additionally, in the case of
a report containing findings and recommendations pertaining to a department or agency headed
by an elected County official (e.g. District Attorney, Sheriff, etc.), such elected County official
shall comment on the findings and recommendations pertaining to the matters under that elected
official’s control within 60 days to the Presiding Judge with an information copy sent to the
Board of Supervisors.
Furthermore, California Penal Code Section 933.05 specifies the manner in which such
comment(s) are to be made as follows:
(a) As to each Grand Jury finding, the responding person or entity shall indicate one of the
following:
(1) The respondent agrees with the finding.
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(2) The respondent disagrees wholly or partially with the finding, in which case the
response shall specify the portion of the finding that is disputed and shall include an
explanation of the reasons therefor.
(b) As to each Grand Jury recommendation, the responding person or entity shall report one of
the following actions:
(1) The recommendation has been implemented, with a summary regarding the
implemented action.
(2) The recommendation has not yet been implemented, but will be implemented in the
future, with a time frame for implementation.
(3) The recommendation requires further analysis, with an explanation and the scope and
parameters of an analysis or study, and a time frame for the matter to be prepared for
discussion by the officer or head of the agency or department being investigated or
reviewed, including the governing body of the public agency when applicable. This
time frame shall not exceed six months from the date of publication of the Grand Jury
report.
(4) The recommendation will not be implemented because it is not warranted or is not
reasonable, with an explanation therefor.
(c) If a finding or recommendation of the Grand Jury addresses budgetary or personnel matters
of a county agency or department headed by an elected officer, both the agency or department
head and the Board of Supervisors shall respond if requested by the Grand Jury, but the response
of the Board of Supervisors shall address only those budgetary /or personnel matters over which
it has some decision making authority. The response of the elected agency or department head
shall address all aspects of the findings or recommendations affecting his or her agency or
department.
Responses Required
Comments to the Presiding Judge of the Superior Court in compliance with Penal Code §933.05 are
required from:
90 Day Response Required F1 F2 F3 F4 F5 F6
OCWD Board of Directors X X X X X
90 Day Response Required R1 R2
OCWD Board of Directors X X
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 19
90 Day Response Required F1 F2 F3 F4 F5 F6
MWDOC Board of Directors X X X X X X
90 Day Response Required R1 R2
MWDOC Board of Directors X X
Responses Requested
90 Day Response Requested F1 F2 F3 F4 F5 F6
East Orange County Water
District X X X X X
90 Day Response Requested R1 R2
East Orange County Water
District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
El Toro Water District X X X X X
90 Day Response Requested R1 R2
El Toro Water District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Emerald Bay Service District X X X X X
90 Day Response Requested R1 R2
Emerald Bay Service District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Golden State Water Co X X X X X
90 Day Response Requested R1 R2
Golden State Water Co X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Irvine Ranch Water District X X X X X X
90 Day Response Requested R1 R2
Irvine Ranch Water District X X
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 20
90 Day Response Requested F1 F2 F3 F4 F5 F6
Laguna Beach County Water
District X X X X X X
90 Day Response Requested R1 R2
Laguna Beach County Water
District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Mesa Water District X X X X X
90 Day Response Requested R1 R2
Mesa Water District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Moulton Niguel Water
District X X X X X X
90 Day Response Requested R1 R2
Moulton Niguel Water
District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Santa Margarita Water
District X X X X X X
90 Day Response Requested R1 R2
Santa Margarita Water
District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Serrano Water District X X X X X X
90 Day Response Requested R1 R2
Serrano Water District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
South Coast Water District X X X X X
90 Day Response Requested R1 R2
South Coast Water District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Trabuco Canyon Water
District X X X X X X
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 21
90 Day Response Requested R1 R2
Trabuco Canyon Water
District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Yorba Linda Water District X X X X X
90 Day Response Requested R1 R2
Yorba Linda Water District X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
City of Anaheim X X X X X
90 Day Response Requested R1 R2
City of Anaheim X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
City of Fullerton X X X X X
90 Day Response Requested R1 R2
City of Fullerton X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
City of Santa Ana X X X X X
90 Day Response Requested R1 R2
City of Santa Ana X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
City of Brea X X X X X
90 Day Response Requested R1 R2
City of Brea X X
90 Day Response Requested F1 F2 F3 F4 F5 F6
Metropolitan Water District X X X
90 Day Response Requested R1 R2
Metropolitan Water District X X
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 22
GLOSSARY
AQUEDUCT A structure for transporting water from one place to another by
means of a pipeline, canal, conduit, tunnel, or a combination of
these things.
AQUIFER A geologic formation of sand, rock and gravel through which
water can pass and which can store, transmit and yield significant
quantities of water to wells and springs.
Refers to State Water Project (SWP) infrastructure in the vast
network of waterways comprising the Sacramento-San Joaquin
Delta (Delta) that collects and moves fresh, clean, and affordable
water to homes, farms, and businesses throughout major regions of
the State from the Bay Area to Southern California.
FIRO Forecast Informed Reservoir Operations is a flexible water
management approach that uses data from watershed monitoring
and improved weather forecasting to help water managers
selectively retain or release water from reservoirs for increased
resilience to droughts and floods.
GWRS Groundwater Replenishment System. A process where water is
replaced in the aquifer.
GREEN ACRES PROJECT OCWD's Green Acres Project (GAP) is a water reuse effort that
provides recycled water for landscape irrigation at parks, schools,
and golf courses; industrial uses, such as carpet dying; toilet
flushing; and power generation cooling.
GROUNDWATER
BANKING A process of diverting surface water into an aquifer where it can be
stored until needed
JPA Joint Power Authority. two or more public agencies to join
together, under a joint powers authority (JPA), to provide more
effective or efficient government services or to solve a service
delivery problem.
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 23
LAFCO Local Agency Formation Commission. Governed by State law, the
Commission oversees proposed changes to local agency and
county unincorporated boundaries and prepares special studies to
encourage the orderly and efficient delivery of public services to
Orange County residential and business communities.
MET Metropolitan Water District, provides water from the Colorado
River and the State Water Project from northern California to
Southern California.
MWDOC Municipal Water District of Orange County represents all of
Orange County, excluding the three independent city members of
MET, and acts as a pass-through agency for MET water sold to its
constituent members and sells additional untreated water to
OCWD for groundwater recharge.
OCSAN Orange County Sanitation District treats and recycles sewer and
grey water.
OCWD Orange County Water District manages the groundwater basin of
the north and central part of the County.
ONE VOICE Orange County needs to have a central entity to speak for water
and legislative matters.
PAPER WATER Transfer water via paper, not physically.
PFAS Per and polyfluoroalkyl substances chemical by product of past
aerospace manufacturing in Orange County.
PURPLE WATER Recycled water that has been treated for reuse in landscaping,
agriculture, and commerce.
SAR Santa Ana River.
SARCCUP Santa Ana River Conservation and Conjunctive Use program.
Guides the use and conservation of the Santa Ana River basin.
SPECIAL DISTRICTS Special districts are public agencies created to provide one or more
specific services to a community, such as water service, sewer
service, and parks.
Water in Orange County Needs “One Voice”
2021-2022 Orange County Grand Jury Page 24
WATER TRANSFERS A water transfer is a voluntary sale of water proposed and initiated
by willing sellers who have legal rights to a supply of water to an
interested buyer.
WEROC Water Emergency Response Organization of Orange County,
administered through MWDOC, develops disaster preparedness,
response, and recovery strategies.
SANTA ANA CITY COUNCIL
Vicente Sarmiento
Mayor
vsarmiento@santa-ana.org
Phil Bacerra
Mayor Pro Tem, Ward 4
pbacerra@santa-ana.org
Thai Viet Phan
Ward 1
tphan@santa-ana.org
Nelida Mendoza
Ward 2
nmendoza@santa-ana.org
Jessie Lopez
Ward 3
jessielopez@santa-ana.org
Johnathan Ryan Hernandez
Ward 5
jryanhernandez@santa-ana.org
David Penaloza
Ward 6
dpenaloza@santa-ana.org
MAYOR
Vicente Sarmiento
MAYOR PRO TEM
Phil Bacerra
COUNCILMEMBERS
Johnathan Ryan Hernandez
Jessie Lopez
Nelida Mendoza
David Penaloza
Thai Viet Phan
CITY OF SANTA ANA
CITY MANAGER’S OFFICE
20 Civic Center Plaza ● P.O. Box 1988
Santa Ana, California 92702
www.santa-ana.org
CITY MANAGER
Kristine Ridge
CITY ATTORNEY
Sonia R. Carvalho
CLERK OF THE COUNCIL
September 20, 2022 Via E-mail and U.S. Mail
The Honorable Judge Erick L. Larsh
Presiding Judge of the Superior Court
700 Civic Center Drive West
Santa Ana, CA 92701
Dear Judge Larsh,
The City of Santa Ana hereby submits its requested response to the findings and recommendations in
the Orange County Grand Jury report, “Water in Orange County Needs ‘One Voice.’”
The City of Santa Ana (City) thanks the Orange County Grand Jury for the significant time and effort
that was invested to thoroughly understand water supply management in the County, including
engagement with the numerous water agencies about the complex water issues we face. We
appreciate the Grand Jury’s recommendations of possible solutions for increasing efficiency and we
look forward to being part of the solution.
The City of Santa Ana is the sole water purveyor for all of its 320,000-plus residents and the
businesses it serves. The City is unique in that it is one of the three Orange County founding member
agencies of Metropolitan Water District (MWD), a member of Orange County Water District
(OCWD), and contracts with Municipal Water District of Orange County (MWDOC) for various
conservation programs and regional services. Given our level of involvement with all three of these
agencies, we are committed to doing what it takes to protect the reliability of our water supply and
delivery system for the future.
FINDINGS
F1 - A singular water authority for Orange County’s wholesale water supply would likely result in
further opportunities at the local, state and federal levels in legislation, policy making, and receiving
subsidies and grants.
RESPONSE: Differ partially with this finding
It is true that a single water authority representing the entire County of Orange would likely have
greater influence in local, state, and federal legislative and policy making, which could result in more
September 20, 2022 Honorable Erick Larsh, Presiding Judge Page 2
SANTA ANA CITY COUNCIL
Vicente Sarmiento
Mayor
vsarmiento@santa-ana.org
Phil Bacerra
Mayor Pro Tem, Ward 4
pbacerra@santa-ana.org
Thai Viet Phan
Ward 1
tphan@santa-ana.org
Nelida Mendoza
Ward 2
nmendoza@santa-ana.org
Jessie Lopez
Ward 3
jessielopez@santa-ana.org
Johnathan Ryan Hernandez
Ward 5
jryanhernandez@santa-ana.org
David Penaloza
Ward 6
dpenaloza@santa-ana.org
line-item budget “earmarks” and favorable policies for our water agencies. However, it is difficult to
ascertain the level of increased effectiveness a single authority would have versus the current makeup
and how that would ultimately serve the needs of the individual water agencies. As it relates to
subsidies and grants, due to their competitive award processes, it is unclear if a consolidation of
wholesalers would have any discernable effect on results.
F2 – The current fragmented water system structure and operations provide challenges as they relate
to development of new interconnected infrastructure, as well as maintenance of existing systems.
RESPONSE: Concur with this Finding
While there are challenges to interconnection, it is not impossible. For the City of Santa Ana, the
current system continues to work, even if it is not perfect.
F3 – There is a great disparity between the North/Central and South Orange County water sources,
management, and operations carried out by OCWD and MWDOC.
RESPONSE: Concur with this Finding
There are significant differences in the way water is managed in North/Central and South Orange
County, which is largely due to the natural water resources available in each of these areas. As a
result, the regions have invested in and developed their unique water resources, management, and
operations in diverse, yet effective ways.
F5 – Orange County Water District is a recognized worldwide leader in groundwater resource
management and reclamation. Its leadership, innovation, and expertise can be further utilized to serve
all of Orange County in developing additional innovative and beneficial programs.
RESPONSE: Concur with this Finding
OCWD has a proven track record of managing and protecting the Orange County groundwater basin,
which has been instrumental in reducing our dependence on more expensive and less reliable
imported water. Additionally, OCWD is at the forefront of PFAS treatment technology and has fully
funded cleanup facilities. OCWD pays for critical infrastructure and has brokered water storage and
stewardship programs.
F6 – Orange County currently does not have a countywide-coordinated policy regarding water
conservation, which results in difficulty when complying with any new state-mandated conservation
regulations.
RESPONSE: Concur with this Finding
It is the purview of each water agency to develop water conservation policies that meet the needs of
their communities and comply with state-mandated regulations. Santa Ana has learned from past
September 20, 2022 Honorable Erick Larsh, Presiding Judge Page 3
SANTA ANA CITY COUNCIL
Vicente Sarmiento
Mayor
vsarmiento@santa-ana.org
Phil Bacerra
Mayor Pro Tem, Ward 4
pbacerra@santa-ana.org
Thai Viet Phan
Ward 1
tphan@santa-ana.org
Nelida Mendoza
Ward 2
nmendoza@santa-ana.org
Jessie Lopez
Ward 3
jessielopez@santa-ana.org
Johnathan Ryan Hernandez
Ward 5
jryanhernandez@santa-ana.org
David Penaloza
Ward 6
dpenaloza@santa-ana.org
drought emergencies that a cooperative, coordinated, and uniform regional approach to conservation
reduces confusion amongst the public and results in the best outcome.
RECOMMENDATIONS
R1 – By January 2023, Orange County wholesale water agencies should formally begin analysis and
collaboration towards forming a single wholesale water authority or comparable agency to operate
and represent wholesale water operations and interests of all imported and ground water supplies.
(F1, F2, F3, F4, F6)
RESPONSE: The recommendation has been implemented
Orange County Water District and Municipal Water District of Orange County have formed an ad-
hoc committee comprised of three board members from each agency to collaborate on options to be
more effective and comprehensive in their individual agency efforts. The City has no direct
involvement in these efforts, but we encourage productive and positive dialogue and outcomes.
R2 – Any future “One Voice” consolidated Orange County wholesale water authority should have
Directors that examine and vote on issues considering the unique needs of all water districts. (F1, F2,
F3, F4, F6)
RESPONSE: The recommendation requires further analysis
The City agrees in principle that if a consolidated Orange County wholesale water authority were to
exist, the voting body would have to be made up of members who vote on issues for the benefit of all
water agencies in the County and take their unique needs into consideration. It would be necessary to
recognize the investments that those communities have made to manage their water supplies, and act
to protect those investments. Creating this proposed authority would require a transparent,
collaborative process to ensure the community’s resources are adequately protected and its needs are
fairly represented.
The City of Santa Ana thanks you for the opportunity to weigh in on this important matter. We
believe it is a practice of good governance to periodically review, reflect on, and evaluate how we
conduct business and best serve our community. As such, we welcome additional studies that
evaluate the details of a proposed consolidation. We would like to see information and analysis on
how such a shift would affect representation on both the MWD and OCWD Boards. As it is now,
Santa Ana has one seat at the MWD Board and one seat on the OCWD Board. Additional clarity is
needed on the local and regional impacts, including policy making capabilities, of a single county
wholesaler. A One Water philosophy is always ideal, particularly with more frequent and severe
droughts, conservation mandates, and environmental limitations, but we wonder, how will these
challenges be addressed?
September 20, 2022 Honorable Erick Larsh, Presiding Judge Page 4
SANTA ANA CITY COUNCIL
Vicente Sarmiento
Mayor
vsarmiento@santa-ana.org
Phil Bacerra
Mayor Pro Tem, Ward 4
pbacerra@santa-ana.org
Thai Viet Phan
Ward 1
tphan@santa-ana.org
Nelida Mendoza
Ward 2
nmendoza@santa-ana.org
Jessie Lopez
Ward 3
jessielopez@santa-ana.org
Johnathan Ryan Hernandez
Ward 5
jryanhernandez@santa-ana.org
David Penaloza
Ward 6
dpenaloza@santa-ana.org
The City of Santa Ana looks forward to continued collaboration on this issue and discovering
answers that will be satisfactory to all.
Sincerely,
Kristine Ridge
City Manager
Attachments: Staff report dated September 20, 2022 and related exhibits