Resolution Approving the Amended Water Rights Agreement between the City of San Diego & the City of Poway
April 21, 2026 – Staff Report
Carlos Cortes, Utilities Administrator
Present Day
Overview & Purpose of Proposed Resolution
• Resolve a 20-year lapse in San Diego’s
administration of the 1968 Water Rights
Agreement (1968 Agreement)
• 1968 Agreement addresses downstream
water right impacts to San Diego due to
surface water diversions at Poway Dam
• Approve the 2026 Amended Agreement:
• Updates measurement methodologies
• Recognizes current operational factors
• Resolves a billing lapse dating back to 1992
• Provides a mutual waiver of prior claims
Historical Context
Permitting Poway Dam (1960’s
–
1980’s)
• Initial Need: Poway Municipal Water District (PMWD)
needed a reservoir for seasonal equalization & emergency storage
• Poway Dam Permit: PMWD applied April 1965
• San Diego Protest: May 1965, San Diego filed a protest citing senior water rights downstream of the proposed
Poway Dam
• Waiver of Protest: Consensus on 1968 Agreement terms
• Preliminary Diversion Permit: State authorized construction of Poway Dam in 1969
• Diversion License No. 12155: Issued to Poway in 1986, superseding initial permit
Historical Context
Construction of Poway Dam (1971)
Historical Context
1968 Agreement & Implementation Challenges
• Replacement Water: Poway to provide San Diego water
at San Vicente based on inflows to Lake Poway
• Measurement: Inflow weir in the streambed
• Succession: City of Poway became successor in interest to PMWD in 1980, inheriting 1968 Agreement
• Informal Shifts & Discrepancies: Over decades, the
agencies moved toward hydrologic calculations and
"payment in lieu" of physical water delivery
• Billing Lapse: San Diego ceased issuing invoices after 1992
• Ongoing Data Administration: Poway continued
reporting data through present day
Recent Events
Reconciliation and Negotiation
(2018
–
Present)
• Discovery: In 2018, Poway staff identified the 26-year invoicing lapse and notified San Diego
• Baseline Establishment: Early in negotiations, staff & legal counsel in each party agreed to 2017 as the baseline year for retroactive obligations based on the statute of limitations • Good Faith Negotiations: Parties agreed to maintain 2017 baseline throughout the multi-year negotiation process
• Consensus: Final terms for the 2026 Agreement were
reached in January 2026
2026 Water Rights Agreement
Key Updates
• Updated Methodology: Inflows estimated as
1% of Lake Hodges inflows based on relative
drainage areas
• Meter Installation Requirement: Poway must
install a metering device within 5 years
• Retroactive Settlement: A lump-sum payment
of $534,266 for 531 AF of water covering
2017–2025
• Poway budgeted $92,400 in FY 2026 funds
• Requesting $441,866 FY2026 appropriation
• Credit Mechanism: Poway receives credit for
Hodges Dam releases for 10 years or until
repairs are complete
• Future Billing: Reestablishes standardized
billing cycles with payment due every March 15
2026 Water Rights Agreement
1% of Lake Hodges Alternative Method
Lake Poway
Watershed
It is recommended the City Council approve the resolution adopting the Amended Water Rights Agreement (2026
Agreement) with the City of San Diego and authorizing an appropriation for retroactive replacement water charges for calendar years 2017 to 2025 from the Water Fund Balance in the amount of $441,866 and authorizing the City Manager to approve non-substantive changes and execute the agreement.
Recommended Action
Questions?