The San Diego County Water Authority (“Water Authority”) asked Stratecon Inc to review the DLM Engineering/Gillingham Review of SDCWA Regional Conveyance System Feasibility (hereinafter cited as “DLM&G Review”). Based on Stratecon’s experience and expertise, while I identify many deficiencies in the analytic methods, assumptions and lack of data in the DLM&G Review, the review identifies relevant issues (especially in
Appendix A, Comments from Member Agency Chief Financial Officers) that Stratecon recommends be part of ongoing comprehensive review of the Regional Conveyance System(“RCS”).
The DLM&G Review includes many deficiencies in economic analysis, analytic methods and lack of publicly available substantive data that provide a context for the economic analysis and risk assessment for the Regional Conveyance System (“RCS”).
- Long-Term Projects Require A Long-Term Perspective
- Future Rate Predictions Should be Grounded by History and Economic Analysis
- Relying on Negotiations of the Exchange Agreement is not Prudent