The San Diego County Water Authority filed a lawsuit Monday over the proposed departure of two North County water agencies, which the water authority alleges will raise water rates for other county residents.
The lawsuit challenges a decision from the San Diego Local Agency Formation Commission to allow the Rainbow Municipal Water District and Fallbrook Public Utility District to leave the water authority and join a water agency in Riverside County.
The water authority alleges the move, which will allow Rainbow and Fallbrook to purchase cheaper water elsewhere, will shift around $140 million in costs that would have been paid by the Rainbow and Fallbrook agencies to the rest of the county's service area.
Earlier this month, the water authority board voted 21-2 in favor of pursuing litigation over the issue.
"Litigation is a last resort, but LAFCO's deeply flawed decision leaves us with no choice but to stand up for residents, businesses and the environment," said San Diego County Water Authority Board Chair Mel Katz in a statement.
"Even though we were forced to file this lawsuit, we have had several good-faith discussions with Fallbrook and Rainbow, and we look forward to continued talks in hopes of finding a mutually agreeable resolution outside the court process."
According to the lawsuit, LAFCO did not follow proper procedures before permitting the agencies' exits from the water authority.
In the lawsuit, the Water Authority alleges there are several deficiencies in LAFCO’s decision on detachment, including not doing a California Environmental Quality Act (CEQA ) analysis on Rainbow and Fallbrook leaving.
Jack Bebee, general manager of Fallbrook PUD, said there’s nothing about his agency leaving that would trigger an analysis under CEQA.
“I'm not building any infrastructure," he said. "They're sort of redefining what a project is under CEQA, including not changing anything in the environment. It's an interesting thing for a public agency to try to lower the bar for CEQA.”
But Dan Denham, the Water Authority general manager, said by leaving, Fallbrook and Rainbow would be relying more on water from the Sacramento–San Joaquin River Delta area, where the delta smelt — a critically endangered fish — lives.
"By leaving the Water Authority, rainbow and Fallbrook will increase their demand on that sensitive area, which is of great concern to the state of California,” Denham said.
The suit also alleges Fallbrook and Rainbow are required to pay "their fair share of the water authority's indebtedness" before leaving, but instead LAFCO proposed an exit fee for the two districts that the water authority says "fell $140 million short of covering the two agency's costs over just the first decade of detachment even by LAFCO's own flawed methodology based on years-old data and questionable projections."
In a statement, LAFCO executive officer Keene Simonds said the suit is disappointing, but not surprising and the agency is ready to defend its decision.
"Fortunately, not liking an otherwise reasonable decision is not grounds in California to overturn the decision, and we are confident the courts will rule accordingly," he said.
Fallbrook and Rainbow's departures are not final, as they must receive final approval from voters before leaving the water authority.
