Transcript MWCD - CALAFCO

Consolidation of the
Murrieta California Water
District into the Western
Municipal Water District
November 2005
Outline
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Background on Western & MCWD
Why Consider a Merger?
The Process
The Merger Analysis
Lessons Learned
Western Municipal
Water District
Why Merge?
• Possible Reasons to Merge
– Larger District better able to solve complex
problems
• Water Supply & Wastewater Collection
– Rapid Growth, Aging Facilities
– Possibly Better Service for Those Customers
in Murrieta
– Allows MCWD & WMWD to lower overhead
costs to retail customers
Process
• Western Requested to Consider Merger
by Murrieta County Water District
• Formed Joint District Ad Hoc Committee
– 2 Directors & GM from Each Agency
– Formed a Public Blue Ribbon Committee
• Selected 6 Citizens from the Community
• Included to 2 Directors & GM’s
Process
• Developed an Agreement between
District’s
• Filed an Application with LAFCO
– Proposed methods to deal with:
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Operation/Overhead Costs
Employees
Service Agreements w/ Other Agencies
Existing MCWD Board
Proposed Merge Date – 12/1/05
Merger Analysis
• Hired Consultants in Different Disciplines
– Water Supply
– Operations
– Water & Sewer Masterplanning
– Water Quality
– Operations
– CFD Financing
– Finances
Financial Impacts
• Labor Resources
– 16 employees w/ 9 in Office
• Overhead Savings
– GM, AGM, Fin. Mgr., Attorney, Auditor, Office,
– Approximately $1,000,000 over 5 Years
• Invest Savings in Needed Capital Facilities
• Reduced Risk of Lack of Water Supply
• Reduced Costs to All Retail Customers
Lessons Learned
• Two Previous Merge Attempts Failed
• Differences:
– Motivation - Water Supply Peril
– Support - Elected Officials Solidly Behind
Merger
– Goal – Better Service, Reduce Costs
• Larger District able to Secure Water
Supplies