NEWS RELEASE

 Reorganization Approved for Sacramento Suburban Water District and Del Paso Manor Water District

SACRAMENTO, CA – Following a Public Hearing on March 5, 2025, the Sacramento Local Agency Formation Commission (LAFCo) unanimously approved the reorganization of the Sacramento Suburban Water District (SSWD) and Del Paso Manor Water District (DPMWD), effective after six conditions are met. The approval paves the way for integrating DPMWD's service area into SSWD’s structure, providing long-term financial stability and reliable water service for DPMWD’s ratepayers without burdening current SSWD customers with the costs associated with necessary improvements to the DPMWD facilities.

Conditions for the reorganization include:

• Financial Responsibility: Customers in the former DPMWD service area will continue to be responsible for the cost of operating and improving the DPMWD facilities, consistent with SSWD’s accounting practices.
• Transfer of Assets and Liabilities: SSWD will assume all of DPMWD’s assets, rights, liabilities, and infrastructure to provide uninterrupted service to customers.
• Legal and Documentation Requirements: The completion of legal mapping and documentation must be finalized by January 1, 2026, to facilitate final approval and recording.
• Payment of Fees: All fees associated with the reorganization, including those from LAFCo, the State Board of Equalization, and the County, must be paid by the existing DPMWD customers before the Certificate of Completion is issued.
• Service Area Designation: Within six months of approval, SSWD will establish a separate service area for the former DPMWD customers to provide ongoing representation and appropriate service delivery.
• Indemnification: The parties involved in the reorganization have agreed to indemnify LAFCo against any legal challenges related to the approval of this process.

"We are excited to take this important step toward integrating DPMWD into SSWD for the continued stability and sustainability of water service for our customers," said DPMWD Board President Carl Dolk. “This marks a new chapter for DPMWD, and we are looking forward to our continued work with SSWD to bring reliable water supplies to our community.”

“SSWD is committed to providing a high quality, reliable supply of water and superior customer service at the lowest responsible water rate. We look forward to welcoming DPMWD’s existing customers to our family,” said Robert Wichert, President of the SSWD Board. “This reorganization will allow us to enhance service for DPMWD while ensuring financial protection for both districts and their customers.  Existing SSWD customers will not bear the costs of initial required improvements to the DPMWD facilities.”

The goal of SSWD is to complete the conditions set forth by LAFCo by July 1, 2025. The Boards will receive regular updates shared during Board meetings, on the SSWD and DPMWD websites, in bill inserts, and across social media platforms.

With reorganization:

• Governance and Name: The reorganized district will retain the name Sacramento Suburban Water District with a five-member Board of Directors that includes incumbent SSWD Directors.
• Debt and Liabilities: Customers within their respective service areas will continue to be responsible for any debts and liabilities.
• Assets Transfer: Certain assets will be used exclusively for the benefit of customers within their respective service areas.
• Separate Water Systems: 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.
• Advisory Committee: A Del Paso Manor Advisory Committee will be created and responsible for reviewing proposals and making recommendations to the SSWD Board for Capital Improvement Projects within the Del Paso Manor Service Area and be responsible for overseeing outreach to customers. This Committee will be comprised of incumbent DPMWD Directors.
• Employee Transition: Existing non-contract DPMWD staff will transition to SSWD during the reorganization period.

How to Stay Informed: The public is invited to attend upcoming SSWD and DPMWD Joint Board Meetings. For more information, including a detailed list of Frequently Asked Questions, visit sswd.org or delpasomanorwd.org.