The Sacramento Suburban Water District (SSWD) and Del Paso Manor Water District (DPMWD) Boards of Directors on December 11, 2024, 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 DPMWD’s service area to SSWD. 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:

• 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: Ratepayers 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 ratepayers 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 established to review proposals and make recommendations to the SSWD Board. This committee will be comprised of DPMWD Directors.
• Employee Transition: Existing non-contract DPMWD staff will transition to SSWD during the reorganization period.

Next Steps

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 SSWD will operate the DPMWD Service Area so that existing service levels are maintained without requiring subsidies from SSWD ratepayers. The current LAFCo Application Timeline identifies March 5, 2025, for a LAFCo Hearing.

Background About Combination Discussions

Since 2019, SSWD and DPMWD have engaged in various discussions about potentially combining the two districts. Both are neighboring water providers with the majority of the DPMWD service area surrounded by SSWD'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 DPMWD. LAFCo has identified that DPMWD'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 DPMWD customers, potentially up to four times the rates of neighboring districts. LAFCo’s focus is to ensure that DPMWD customers are provided a long-term safe and reliable water supply, at a reasonable rate.

By merging, DPMWD 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, SSWD is well-positioned to integrate DPMWD customers and staff without exposing existing SSWD customers to financial risk.

For more information, visit https://www.delpasomanorwd.org/dpmwd-sswd-combination