El Toro Water District Revenue and Competitors

The El Toro Water District (District) was formed in 1960 by the land owner in the District, under the laws applicable to California Water Districts. The area included in the District was 4,750 acres. The total population was 125 people. Approximately 750 acres was irrigated agricultural land, mainly citrus groves. Water for agricultural and domestic use was pumped from wells. The local ground water supply was not abundant, and it had become evident that it would not supply the needs of an increased population or of an expanded agricultural area. To secure imported water, the District joined with neighboring Los Alisos Water District to form the Santiago Aqueduct Commission. This commission obtained permission from Metropolitan Water District of Southern California (MET) to tap one of MET\'s pipelines adjacent to Irvine Park, about thirteen miles from El Toro. In 1961 the District authorized a bond issue of $1.9 million to finance its portion of the cost of constructing the Santiago Aqueduct from Irvine Park to El Toro, plus the construction of a water filtration plant, and a small water distribution system within the District. The first raw Colorado River water was delivered to the District in September 1962. The first use of the imported water was for agricultural purposes. Before the water could be used for domestic purposes, it had to be filtered and chlorinated. The District filtration and treatment plant are located on a hill near Trabuco and Aliso Creek, at an elevation of 550 feet above sea level. Due to the elevation of the plant, the treated water flows by gravity to the lower areas of the district. Higher areas require pumping by pump station, located throughout the District. When residential development was started in the District in 1963-64, primarily in the Rossmoor Leisure World area, the District elected to remain a wholesale water agency. By mutual agreement, retail water delivery and sales, and sewage collection and treatment within the District\'s boundary were undertaken by the Rossmoor Water Company and Rossmoor Sanitation, Inc. About 1970 the need or a regional system to dispose of treated sewage effluent to the ocean was becoming increasingly evident. Early in the 1970\'s the California Clean Water Program was enacted which allowed certain public agencies to be eligible for joint Federal-State construction grants. Laguna Hills Sanitation, Inc.(formerly Rossmoor Sanitation, Inc.) which had been disposing of its treated sewage effluent by irrigating the Leisure World golf course and by spraying on vacant land in the area, was finding this latter option disappearing as the amount of vacant land decreased. Laguna Hills Sanitation, Inc., a private corporation, was not eligible for Federal-State grants to provide for other methods of sewage effluent disposal. The District, believing that it would be in the best interests of the residents and property owners of the District, joined with five other public Water Districts and the City of Laguna Beach in 1972 to form the South Orange County Wastewater Authority (SOCWA). In 1975 the District sold $6.14 million of Waste Water Bonds to finance the Districts share of the AWMA Regional Plant and the ocean outfall system. The bond proceeds helped to finance the construction of sewage sludge treatment and disposal facilities. The AWMA Regional Plant is located near Niguel Park. The construction of the plant was essentially completed by 1982. As the population of the District Increased, the need for water also increased. The combination of the expanding population, and the knowledge that Southern California\'s share of the Colorado River water would be drastically decreased in 1985, led the District to consider the possibility of importing a larger volume of filtered and treated blend of Northern California and Colorado River water. To accomplish this objective, the District in 1978 joined with other Water Districts and municipalities in Orange County to participate in the construction of the larger Diemer Intertie-Santiago Aqueduct Parallel Pipeline (AMP). The district began receiving treated water through the new pipeline in July 1981. When the water flows into the District, some portion is diverted directly into distribution lines for customer use, and the remainder goes into the reservoir, to be withdrawn during periods of peak demand. The Laguna Hills Utility Company, the parent company of the operating utilities, Laguna Hills Water Company (LHWC) and Laguna Hills Sanitation, Inc. (LHSI), approached the District\'s Board of Directors in August 1982 with a proposal that the District acquire the utility operations of LHWC and LHSI. The Board of Directors considered the proposal very carefully and concluded that the District operation would benefit the residents of the District, provided that the assets of the utilities could be acquired at a fair price. The Public Utilities Commission (PUC) established a rate base of $3.6 million for the Laguna Hills Sanitation, Inc. and allowed a 12.02%return on that value for the rate making purpose. The PUC staff, in March 1983, stated that their calculations indicated a rate base of $7.1 million (excluding Reservoir R-4) for the Laguna Hills Water Company, and a 12.34% rate of return. Combining the PUC figures for the two utilities gives a total rate base of $10.7 million and an allowable rate of return more than 12%. The District acquired both Laguna Hills Water Company and Laguna Hills Sanitation Inc. for a sum of $10.5 million, with interest, to be paid in installments over a 30 year period. The agreements for the purchase of the operating utilities were signed on September 12, 1983 and the El Toro Water District, after about 24 years, became a fully integrated water and sewer operation. Problems with the website?