SR-106-022-02
EPWM:JA:CP:GB:strategic plan Santa Monica, California
Council Meeting: December 7, 1999
TO: Mayor and City Council
From: City Staff
Subject: Recommendation to Advocate during Metropolitan Water District of
Southern California's (MWD's) Strategic Planning Process
Introduction
This report recommends that the City Council, during the MWD's Strategic Planning
Process, endorse the proposed City position described below, advocate for the position
with State Legislators and Elected Officials of other Member Agencies; and authorize
Santa Monica's representative on the Board of Directors of MWD to advocate for the
City with other MWD member agencies. The proposed position is as follows:
1. MWD shall continue to be Southern California's regional wholesale water system
operator and planner in cooperation with its member agencies.
2. MWD shall be the agent for the member agencies to develop a high quality,
reliable supply of water for the region.
3. The governance shall maintain member agencies' status as cooperative
members of MWD, including continuing direct representation of the City of Santa
Monica on its Board of Directors.
Background
Recent state legislation mandates that MWD reduce the number of members on its
Board of Directors. Currently, there are 51 directors representing 27 member agencies
with the number of directors based on tax valuation of its member agencies. The City of
Santa Monica, an original founding member, has one representative on the board. The
new legislation would reduce the number of directors but each of the member agencies
would maintain full representation. The current legislation is in line with positions the
City Council has previously taken maintenance of representation in any future
governance structure of MWD. Other interests have proposed legislation which would
reduce the number of directors so significantly that Santa Monica would not have
representation on the board.
The mandated change in governance of MWD has prompted MWD to evaluate its
organizational structure, vision, goals, functions, and responsibilities. MWD has
developed eleven visions with each outlining the goals, functions, responsibilities, and
impacts under the different scenarios.
While several of the vision statements incorporate principles that the City has
endorsed, only one, vision statement #4, provides features that allow for flexibility to
deal with the future in the water utility industry. City staff's recommendation for the final
vision would entail the further development of Vision 4 with the incorporation of some
beneficial aspects from some of the other visions.
Under Vision 4, MWD remains the water wholesaler for the region; continues to be the
agent for securing high quality and reliable supplies of water for the region; and
member agencies maintain full representation on the Board of Directors. It also allows
flexibility to deal with future market influences. MWD's transmission infrastructure will
be available to other wholesalers, and costs for products and services will be distinctly
separated into cost centers and prices accordingly.
It is imperative that the City of Santa Monica advocates that the previously mentioned
principles be incorporated into MWD's new organizational structure. The City must
maintain full representation on MWD's Board of Directors in order to assure a high
quality, low cost, and reliable water supply to its customers.
Fiscal Impact
There is no current direct fiscal impact in the advocacy of Santa Monica's position.
Future fiscal impacts may occur as a result of MWD's organizational restructuring.
MWD's future visions and goals may affect Santa Monica's costs for purchase water,
which presently accounts for approximately 79% of the City's water supply. It should be
noted that this inordinately high allocation of imported water will be reduced once the
groundwater MTBE contamination issues have been remedied. Historically, MWD
water has accounted for approximately 20% of the city’s supply.
Recommendation
This report recommends that the City Council, during the MWD's Strategic Planning
Process, (i) endorse vision statement #4 as noted above with (a) State Legislators,
and (b) Elected Officials of other Member Agencies; and (ii) Authorize Santa Monica's
representative on the Board of Directors of MWD to advocate the City's position with
other MWD member agencies.
Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Gil Borboa, P.E., Utilities Manager
Attachments: MWD Vision Statements Summary