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San Diego County Water Authority

A Public Agency
3211 Fifth Avenue 0 Son Diego, California 92103-5718
[519} 632-4100 FA): (619) 297-0511

February 8. 1999

Mr. Phillip J. Pace

Chairman of the Board
Metropolitan Water District of Southern California

P.O. Box 54153
Los Angeles. CA 90054?0153

Dear Phil:

The San Diego County water Authority Board of Directors has adopted policy principles
regarding Motropolltan's strategic plan. The policy principles suggest that the Board focus ?rst
on the role Metropolitan should play in the future to meet member agency needs and than on
specific steps Metropolitan should take to assume this role effectively.

The principles we have adopted state that Metropolitan in the future should:

Offer a menu of unbundled products and services from which its member agencies
may pick and choose.

Be one of several suppliers of imported water to its member agencies.

operate major Southern California regional pipelines. other facilities and storage
capacity. (more: The Authority does not believe that all existing Metropolitan
pipelines would or should necessarily ?t in this category.)

Advocate regional positions. in conjunction with its member agencies. on such issues

as the State Water Project and CALFED.
Provide leadership in scienti?c and technical research related to water quality.

To accomplish the above. Metropolitan should:

Ouantl?fy and allocate, by source. its water supply and related costs according to

member agency needs and mm to pay. (Note: The Authority believes that
the related costs of the water supply are inextricably linked to the facilities necessary

to convey them to the MWD service area.)

Quantity and allocate the costs and capacity of Metropolitan facilities necessary to
convey. store and treat water within its service area. according to member agency
hoods and commitment 10 RBI.

Provide through contracts additional water supplies. storage, pipeline operations.
treatment. ccnsenralion programs or other services through contracts with member
agencies or others, so that those who desire the products or services from

Metropolitan pay for: mom.

MEMBER AGENCIES
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As recently pointed out by Director Freeman. the Metropolitan Board has not yet
had a discussion of the key policy issues surroundan the strategic planning process.
Among these issues is. mt critically and ?indamentelly. Who will pay for Mamml?an's
capital facilities. sapplies and outer expenses. Until this :1th takes place, the
Board should not approve the $175300 Increase in the oomltent?s budget
recommanded by staff. nor should the consultants create new or hybrid 'visiona' from

those already under mlderalion.
Please contact me If you have any questions about our comments.



cc: RoyWquDe?di?Im