Central Basin MWD support for troubled Discovery Center project could cost customers millions

If officials at Central Basin Municipal Water District have their way, cities, water retailers and ratepayers who get their water from the district could end up paying millions of dollars over the coming years to prop up a financially troubled water museum project that a district official concedes customers do not want.

At the most conservative estimate, projected over the time Central Basin and Upper San Gabriel Valley MWDs would be expected to support the project, the additional costs would reach into the millions of dollars for each district and its customers.

At a June meeting of the San Gabriel River Discovery Center Authority, board President and Central Basin Director Robert Apodaca said that customer cities and agencies were concerned about the district’s support for the project — a $22 million taxpayer/ratepayer-funded water museum and meeting hall — and that “they don’t feel [the project] is a priority for them.”

Central Basin's Robert Apodaca dismissed opposition to the Discovery Center from the district's own customer cities and water agencies as "excuses to criticize" the project.

But Apodaca dismissed the opposition as “excuses to criticize” the project. He then offered additional district resources, saying, “We have a large staff. We have the resources. And we’re willing to share those,” adding later, “We have money to do things.”

At the same meeting, authority Executive Director Belinda V. Faustinos conceded that long-term funding for the controversial project is an “issue” and said that the authority would likely turn to Central Basin and a second district, Upper San Gabriel Valley MWD, to cover the project’s additional costs. “If we need to look at some ongoing operations costs down the road, it could potentially come from the water agency partners,” she said.

Faustinos said that long-term costs for the proposed facility — which would replace an existing Los Angeles County-owned-and-operated nature center already used by Central Basin to deliver education programs — will be a minimum of $200,000 annually beyond what the county and the two district’s pay for the nature center and for education programs, respectively.

Even at the most conservative estimate, projected over the time the districts would be expected to support the project, the additional costs would reach into the millions of dollars for each district and its customers. Such support, and statements that Central Basin has “money to do things,” stand in stark contrast to recent district actions, decisions and statements that seem to indicate a water district where finances are extremely tight — and getting tighter.

Those decisions and actions include: (1) more than doubling a surcharge on water, (2) borrowing tens of millions of dollars, (3) claiming to have made $1 million in budget cuts, and (4) passing on to customers the Metropolitan Water District’s most recent rate increase because, said Central Basin’s general manager, “We don't really have outside income to absorb this.”

If Central Basin officials have their way, their customers — some of whom pay among the county's highest property taxes or sales taxes — also will be absorbing the multimillion-dollar costs of a water museum they do not want.

Community turns up heat on Central Basin MWD

A recent story in the Eastern Group Publications family of newspapers shows that Central Basin Municipal Water District is taking growing criticism for its decision to more than double a surcharge on water to its customers.

The water district is one of four agencies and water districts that is spending millions in taxpayer and ratepayer money on the controversial San Gabriel River Discovery Center project.

The story was originally reported in the Whittier Daily News, which seemed to pooh-pooh the expressions of anger of officials whose cities and agencies buy water from Central Basin.

But then the story was reported by the Los Angeles Times--which also mentioned the district's spending on the Discovery Center in 2008.

From there, the story seemed to grow some legs and traveled out into the blogosphere. And then it appeared in Eastern Group's newspapers and on its website.

Central Basin's rate increase now is attracting the attention not only of ratepayers, city officials and officials at water agencies that buy from Central Basin, but also of the state legislature.

EGP reported that cities that are part of the Southeast Water Coalition have asked for an audit of the water district's recycled water line project and "the district’s justifications for its rate increase."

What I'd like to know is how Central Basin's justifies its financial support of the Discovery Center.

According to EGP, the water district's executive director, Art Aguilar, issued a statement "explaining the rate increase is the result of budgetary difficulties and infrastructure project needs: 'This action reflects our best effort to balance the budget by reducing our agency’s spending coupled with a necessary rate increase to ensure essential services and needed infrastructure projects will continue.'"

Funny how Central Basin tries to defend its rate increase as coming on top of budget cuts and being necessary to provide essential services and to build needed infrastructure projects even as it throws its customers' money at the Discovery Center.

How much has Central Basin spent on the project rejected by the community during hearings on its draft environmental impact report?

Nearly a million dollars--and counting.

Central Basin MWD raises price of water, cuts $1M internally -- continues support for Discovery Center

Why is Central Basin Municipal Water District (service area pictured at right) continuing its financial support for the proposed $30 million San Gabriel River Discovery Center at the same time that it's raising rates on its customers and making internal budget cuts?

The revenue report from the Discovery Center Authority's June 18 board report shows that Central Basin contributed $80,000 for fiscal year 2008/2009. And a table on the Discovery Center website shows that Central Basin has contributed at least $750,000 in total to the project.

This year's $80,000 from Central Basin is troubling in light of the water district board of director's approval last month of "a more than 100-percent increase in its surcharge that will be phased in over the next year," which was reported by the Whittier Daily News.

"This is on top of an already approved 21-percent increase . . . from Metropolitan Water District that goes into effect Sept. 1, " writes journalist Mike Sprague.

"We can't understand the justification. The rates are excessive, unsubstantiated and inappropriate." -- Joe Serrano, Santa Fe Springs City Council

Central Basin is one of the four member agencies in the San Gabriel River Discovery Center Authority, which is trying to build a controversial 18,230-square-foot watershed education and meeting center on the Whittier Narrows Natural Area.

But the rate hikes aren't the end of the story. Apparently, money is so tight at the water district, "officials said they've made $1 million in internal budget cuts."

News of Central Basin's fee increase went over like the proverbial lead balloon with local officials.

The news story quotes Santa Fe Springs Councilman Joe Serrano, among others: "We will have no choice but to raise our rates. We can't understand the justification. The rates are excessive, unsubstantiated and inappropriate."

Unpopular rate hikes, internal budget cuts--but Central Basin continues to throw money at the expensive, unnecessary and environmentally destructive Discovery Center.

Interesting priorities at Central Basin right now.