We didn’t plant like-minded folks on the grand jury, we swear!
But on Wednesday, entirely without prompting, the Orange County grand jury called on the two water giants in our compact little county to get over themselves, relinquish their pricey fiefdoms and form a single, unified, regional, county-level water authority to finally speak with — and this is the grand jury’s flourish — “One Voice.”
“Ronald Reagan once said: ‘No government ever voluntarily reduced itself in size,’ ” the report said. “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….
“(I)t 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.”
The GJ focused not on Orange County’s 29 water retailers — that is, the water districts and cities that sell the water to you, the customer — but rather on its two water wholesalers, who supply the wet stuff that those cities and water districts then sell to you, the customer.
The Orange County Water District — which manages the vast groundwater basin beneath north and central O.C.— and the Municipal Water District of Orange County — which imports water from the mammoth and legendary Metropolitan Water District in Los Angeles — already share an office (18700 Ward St., Fountain Valley), a general mission (get water to the thirsty people of Orange County!) and even, you know, a receptionist.
But they are two different agencies, with two different boards of directors, two different general managers, two separate staffs, and two different modes of fulfilling the same need.
‘One voice’
OCWD owns a vast infrastructure that sucks water out of the ground — not to mention the high-tech stuff that cleans up wastewater and injects it back into that ground to refresh the supply — while Municipal owns, well, not much, really.
Municipal is essentially a middle-man and has been embattled for years, fighting off secession from South County districts that felt it was amassing too much money and wasting too much of same; and casting the stink-eye at the numerous attempts to combine the two agencies over the years.
“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 has determined that all sources of water are interconnected and would be best administered by one governmental entity,” the report said. “All the water flowing to OC taps looks the same, whether imported or groundwater, so why do we need two wholesale agencies?”
The future of a reliable water supply is at risk as we find ourselves in the midst of the worst drought in some 1,200 years, it continued. A single leadership structure — either via consolidation of the two agencies or the formation of a new water authority — is needed.
“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.’ “
OCWD is all in.
“It’s been studied, and it’s a concept whose time has come,” said Steve Sheldon, president of OCWD’s board of directors. “With the drought and dwindling water supply, the grand jury report accentuates that Orange County needs to speak with one voice to regional, state and federal lawmakers on critical water supply issues and regulations.”
But it appears that Municipal’s thinking hasn’t changed much.
‘Idealistic’
“The ‘One Voice’ perspective is very idealistic and sounds great,” said Megan Yoo Schneider, president of Municipal’s board of directors. “But both agencies have many different members. Some rely on almost 100% groundwater, while some rely almost 100% on imported water. It’s hard to find one voice among them right now.
“What would consolidation achieve? You’re still going to have to have different people focus on the different missions. There’s not necessarily cost savings associated with it when you look at benefits, retirement, logistics. Those are not small hurdles. You’re not getting rid of any problems getting rid of two agencies.”
What’s needed, she said, is more and better collaboration between agencies.
Damon Micalizzi, Municipal’s spokesman, said that the water importer will review the grand jury’s findings “and again investigate if there is any merit in engaging in a consolidation process. However, I do not see how things have changed since the last time we explored this.”
At first glance, it appears like a simple and easy thing to do, but it has been looked at multiple times and not implemented not because of difficulties or complexity, but simply because it does not work, he said. Bigger does not mean better; costs could actually increase for ratepayers; and Orange County could lose a seat on the Metropolitan board (which is the biggest sandbox for Water World types to play in).
Forward
This grand jury, and many before it, have heard the same arguments, and anticipated them.
“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,” the report said.
But the current structure is dysfunctional, provides redundant services with redundant costs, and results in missed opportunities, it said. Desalination is a good example: Even though desal projects can impact water supply for the entire county, the two agencies weigh them, and their impacts, independently.
Benefits of a single water lord include centralized planning for emergency supplies; increased coordination between north and south county; cost savings by eliminating duplication of administrative, professional, consultant, lobbying and other expenses; and singular leadership on conservation strategies, public outreach and education, the grand jury said.
Innocent bystander Peer Swan, a director for the Irvine Ranch Water District (which has successfully absorbed several smaller water districts), sees a way forward.
“Their responsibilities and scope are fairly different and a full-on consolidation up front will be a bumpy road,” he said by email. “Maybe a better approach initially would be to form a JPA (joint powers authority) of the two districts with each keeping exclusive control of their primary functions with a consolidated management structure and joint meetings. Over time, the number of directors could be reduced and in the longer term the two could be fully merged.”
However it’s accomplished, the county will be better served by “one voice” speaking to its water supply, the grand jury said.
