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"\ '- WATER: Deal Nears on Shift From Farms to Cities 'What this Is about Is economic independence for our two communities [San Diego and Imperial Valley] rather than being an appendage of Los Angeles and Metropolitan.' STATE SEN. STEVE PEACE (()'EICajofl) water, San Diego is the MWD's biggest customer. A unique convergence of state alid nalional iiolilics-and'the fact that the governor is a former San Diego mayor-has given that COUnty leverage to wrench a deal from the MWD to use its aqueducL Significantly, one of the county's negotiators with the MWD is San Diego building industry execuli ve Michael Madigan, a former Wilson staffer and still very much a Wil- son insider. An exultant San Diego Mayor Susan Golding caUed the deal with the Imperial Valley "the triple crown of the waler industry" because it will provide a dependable source of water for the slale's seamd-largest city, help speed the solution to the bay delta problems and ease pressure on the Colorado River. "What this is about is economic independence for our two commu- nities (San Diego County and Im- perial Valley I rather than being an appendage of Los Angeles and Metropolitan," said state Sen. Steve Peace (D-E1Cajonl. In a turn of phrase sure to resonale to local political ears, Peace railed at "those guys in Los Angeles," a reference to the MWD. He compared the agency to a man "too dwnb to know what is in his best interests." The MWD-water wholesaler to 16 million residents in six caun. lies-has insisted that San Diego is allempling to shirk its share of the overall MWD water delivery sys- lem to the detriment of other Southern California water users. For months, the MWD has in- sisted on a wheeling rate-a charge to deliver Imperial County waler to San Diego via the aque- duct-of about $262 per acre-foot (Thursday's deal is for up to 300.000 acre-feet). The MWD bas now softened its position and is willing to accept $70 to $120 per acre-fooL (An acre-foot is enough water for two families of four for a year.) San Diego County believes that the proper rate is $68. There are also differences between the two sides involving storage and use of the aqueduct during flood periods. Also, the loss in revenues from San Diego to the MWD could force water users in other counties to pay higher rates. Imperial County: with only 141,500 residents, has an annual entitlement of 3.3 million acre-feet of water from the Colorado River. IT put to nonagricultural uses. that amount would accommodate virtu~ ally all of Southern California. The San Diego-Imperial Valley deal would involve a graduated scale of sales over a period of years that eventually will reach at least 130,000 acre-feet a year and possibly as much as 300,000 acre-feet, de- pending on the needs of both parties. The pricing schedule is set so lhatl: the cost would always be lower than what San Diego would pay the MWD for an equal amount of water, The deal. which will require one more vote each by the governing boanIs of the San Diego and Im- perial Valley agencies, would last 45 years, with a possible extension for 30 years. San Diego County would buy the waler, but the water rights would remain with Imperial Valley. The money paid by the San Diego agency to the Imperial Valley would be used for conservation measures and equipment to allow fanners to reduce their use of water. Michael Clinton, general manager of the Imperial Irrigation District, said there would be no profit available for at leasltwo decades, until such measures are fully paid for. For 300,000 acre-feet, San Diego County would pay about $110 mil- lion to the Imperial districL, San Diego's historic gnpe with the MWD-restated at Thurs- day's announcement-is that it could face a 50% cutback during a drought because it was not an original MWD member, like Los Angeles. In the 1991 drought, San Diego County suffered a severe cutback, particularly to its billion- dollar agncultural economy. , At a hearing last month. the iOOge in a wheeling-rale case med by the MWD appeared to some observers 'to look, askance at. the MWD's , insistence that the cost of bringing water from Northern California n ,: through the Stale Waler Project can be included in a wheeling rate for transfers from the Colorado River. Of the proposed $262 wheeling rate, about hall would be to cover State Waler Project costs. Within days of that hearing, the MWD and San Diego returned to the bargaining table. A decision in the case could come next month. . David Kennedy, director of the stale Department of Waler Re- sources, said a San Diego-Imperial ' Valley deal is key to convincing Babbitt that California is learning to' be more conservative in ilS water use and thus should be spared a drastic cut from the Colorado River,