DPMWD / SSWD Combination
The Del Paso Manor Water District (DPMWD and Sacramento Suburban Water District (SSWD) Boards of Directors affirmed their interest in combining the organizations at a July 30, 2024, joint board meeting with the DPMWD Board voting 3-1 and the SSWD Board voting 5-0 to move the combination process forward.
The Boards also approved the Board makeup should the two agencies combine. As approved, the Board makeup would consist of five Board members elected from five different divisions.
The vote took place with an understanding that there are off-ramps available should either organization later decide to stop the combination process, as well as planned analysis, public outreach, and specific procedures, including approval by LAFCO, that must occur before a combination could move forward.
PUBLIC MEETING ON POTENTIAL COMBINATION
On Tuesday, September 24, 2024, SSWD and DPMWD jointly hosted a public meeting at Mission Avenue Elementary School located in SSWD’s service area. The meeting aimed to discuss the possible combination of the two water districts and included a Q&A segment where attendees could ask questions and seek clarifications.
Learn More:
- Access the PowerPoint slides, presented by the SSWD and DPMWD General Managers
- Detailed notes on the audience Q&A
Presentation Highlights
- Introduction to SSWD and DPMWD, including service areas
- Financial overview
- Water supplies and rates
- SSWD's asset management, maintenance, and improvement programs
- DPMWD's current challenges and infrastructure deficiencies
- Independent analysis and financial stability concerns
- Background on the combination discussions
- Financial protections for the districts
- Potential alternatives
- Vision for DPMWD's future, focusing on grants, operational stability, and local leadership
- FAQs covering various aspects such as water quality, rates, and infrastructure
- Timeline, process, and next steps
GENERAL TIMELINE:
- Phase 1 – Public Outreach and Initial Decision to Proceed with or Terminate Combination Proposal
- Phase 2 – District Form and Governance Decisions
- Phase 3 – Operational and Financial Decisions — CURRENT PHASE
- Phase 4 – Final decision to submit application to LAFCo
- Phase 5 – LAFCo Application and Approval Process
- Phase 6 – Post-Consolidation Actions to Implement New Agency
More information is available here:
- Memo to SSWD and DPMWD Boards Regarding Combination Decisions and Timeline
- List of Frequently Asked Questions is available to learn about the potential combination, challenges for DPMWD, potential grants and funding for infrastructure upgrades, impact on water rates, governance and representation, water quality, LAFCo's role, and more.
- Learn about the Operational Services Agreement in place between SSWD and DPMWD here
BACKGROUND
Since 2019, Del Paso Manor Water District (DPMWD) and Sacramento Suburban Water District (SSWD) have been in various discussions to combine the two districts, as well as SSWD operating DPMWD’s water system by way of a Mutual Aid Agreement and an Operational Services Agreement. These two agreements were triggered due to three of DPMWD’s four staff members retiring/resigning on May 31, 2019, as well as the 2021 Grand Jury Report.
Between 2020 and 2023, DPMWD and SSWD conducted an analysis on the following areas:
- Condition Assessment of DPMWD’s Infrastructure, production and distribution
- Groundwater/Surface Water Supplies
- Municipal Services Review Updates
- Financial Analysis
- Water Rate Comparison
- Combination Benefits – Rates, Costs, Operations
- Combination Benefits, Advantages, and Disadvantages
The above items were presented to the SSWD - DPMWD 2X2 Committee, with report backs to the full Board of each agency. However, at the May 22, 2023, Joint Board meeting, the DPMWD Board of Directors made the decision to move forward with their Proposition 218 process.
On April 10, 2024, the Sacramento Local Agency Formation Commission (LAFCo), provided a Public Notice informing the public that LAFCo scheduled a Public Hearing on May 1, 2024, for the purpose of adopting an addendum to DPMWD’s Municipal Services Review and adopt a Resolution of Intent to Initiate Dissolution of DPMWD.
On April 16, 2024, DPMWD held a Special Board meeting to discuss LAFCo’s intent mentioned above. One of the options stated was to re-initiate discussions with SSWD. Per the minutes of DPMWD’s Special Board meeting, the DPMWD Board of Directors voted to initiate discussions with SSWD. The vote was 3-1.
On May 1, 2024, LAFCo approved the adoption of an addendum to DPMWD’s Municipal Services Review and adopt a Resolution of Intent to Initiate Dissolution of DPMWD. The vote was 7-0 on both items.
IMPORTANT LINKS
- Sacramento Local Agency Formation Commission (LAFCo) / DPMWD Updates
- Sacramento Local Agency Formation Commission (LAFCo) Resolution of Intent to Initiate Dissolution of DPMWD
- SSWD/DPMWD Joint Meetings
- SSWD Website Home Page
- SSWD Finance Department Web Page
- SSWD Consumer Confidence Reports
UPCOMING MEETINGS/EVENTS