SACRAMENTO, CA (MPG) - The Sacramento Suburban Water District (SSWD) and Del Paso Manor Water District (DPMWD) Boards of Directors on Dec. 11 took a significant step toward combination by unanimously approving similar resolutions of application to the Sacramento Local Agency Formation Commission (LAFCo). 

The resolutions mark the districts’ formal request for reorganization, including the annexation of Del Paso Manor’s Water District service area to Sacramento Suburban’s Water District. The approval sets the stage for a joint application to LAFCo, which will review the proposal, establish conditions, and make the final decision.

“Combining with SSWD represents a positive path forward for DPMWD,” said DPMWD President Carl Dolk. “It means delivering clean, safe water, addressing critical infrastructure needs, and keeping rates more affordable for customers. We look forward to continuing our partnership with SSWD.”

“Approval of this resolution reflects SSWD’s commitment to the broader community and our dedication to helping a neighboring district overcome long-standing challenges,” said SSWD Board President Kevin Thomas. “We’re ready to welcome DPMWD customers into our District and ensure a smooth transition with strong financial protections in place for SSWD customers.”

Highlights in the resolutions include. The reorganized district will retain the name Sacramento Suburban Water District with a five-member Board of Directors that includes incumbent Sacramento Suburban Water District Directors. Ratepayers within their respective service areas will continue to be responsible for any debts and liabilities. Certain assets will be used exclusively for the benefit of ratepayers within their respective service areas.

The Del Paso Manor service area will operate separately with its own rates, fees, and charges until sufficient rehabilitation and replacement of its water system have been completed. A Del Paso Manor Advisory Committee will be established to review proposals and make recommendations to the Sacramento Suburban Water District Board. This committee will be comprised of Del Paso Manor Water District Directors.

Next step in the process: Planwest Partners is under contract and working on a Plan for Services and additional materials required to support an application to LAFCo. A Plan for Services outlines how Sacramento Suburban Water district will operate the DPMWD Service Area so that existing service levels are maintained without requiring subsidies from Sacramento Suburban ratepayers. The current LAFCo Application Timeline identifies March 5, 2025, for a LAFCo Hearing.

Background About Combination Discussions: Since 2019, the two water districts have engaged in various discussions about potentially combining the two districts. Both are neighboring water providers with the majority of the Del Paso Manor service area surrounded by Sacramento Suburban’s service area. They also have previous experience collaborating through a Mutual Aid Agreement and an Operational Services Agreement.

Combination discussions were reinitiated in the spring of 2024 with renewed focus after the LAFCo adopted a Resolution of Intent to Dissolve Del Paso Manor Water District. LAFCo has identified that Del Paso Manor’s aging infrastructure requires extensive investment, estimated at over $50 million. System needs include repairs and upgrades at five district wells, replacement of undersized water mains (less than 4 inches), replacement of aging steel pipelines, relocation of backyard water mains, and installation of additional fire hydrants.

This would necessitate significant rate increases for Del Paso Manor’s customers, potentially up to four times the rates of neighboring districts. LAFCo’s focus is to ensure that Del Paso Manor’s customers are provided a long-term safe and reliable water supply, at a reasonable rate. 

By merging, Del Paso Manor Water District has the potential to achieve greater financial stability and access to grant funding for upgrading infrastructure that would not be available without a combination. At the same time, Sacramento Suburban Water District is well-positioned to integrate Del Paso Manor’s customers and staff without exposing existing Sacramento Suburban customers to financial risk.

For more information, visit sswd.org and delpasomanorwd.org.