There’s good news for residents of The Retreat, Montecito Ranch and Sycamore Creek. The assessment you pay on your taxes for a Lee Lake Water District Community Facility District (CFD), has been lowered.

The CFDs (Mello-Roos taxes), were created and bonds issued to finance construction of the water and sewer infrastructure when each of the communities was built. The costs of the bonds is paid for by homeowners through assessments on their annual property taxes.

At its Tuesday meeting, the water district’s board of directors voted to refinance the bonds at a lower interest rate with a savings of 3 percent to almost 10 percent depending on the community in which you reside. Because the bonds for each CFD differ, they had to be refinanced individually and that’s why the savings vary. The bond’s maturity date for each of the three CFDs will be unchanged. Here’s a breakdown of the savings:

• CFD-1 — Sycamore Creek: 3.4 percent, a savings of $150 a year.
• CFD-2 — Montecito Ranch: 9.91 percent, a savings of $200 a year.
• CFD-3 — The Retreat: 6.63 percent, a savings of between $120-$160 per year.

The savings will be reflected in October’s property tax statement. Questions: Contact Lee lake at 951-277-1414. The office is at 22646 Temescal Canyon Road.

Despite our request to postpone its decision on entering into a no-compete agreement with the city of Corona, the Lee Lake Water District Board of Directors voted unanimously at its Feb. 26 meeting to approve the covenant.

We felt the agreement might signal to LAFCO that our local water district favored the annexation. Because we only recently learned about the proposed covenant, we asked the district to postpone its decision, giving us additional time to review the document and research the implications, ramifications and impact it could have on Lee Lake customers and the anti-annexation effort.

The covenant was approved by the Corona City Council at its Feb. 20 meeting as a consent calendar item and with no public discussion by council members or city staff.

Three water districts service the Temescal Valley — Lee Lake, Corona Water and Elsinore Valley Municipal Water District — and while each has its own service area, the three are very competitive, don’t always agree and wish the other two would go away. And, if the city’s attempt to annex us is successful, Lee Lake could be in danger of being taken over by the city either through the annexation process or by eminent domain.

Here’s what we learned at the district’s board meeting this morning. Jeff Pape, Lee Lake’s general manager, said the district initiated the covenant after hearing city staff say in several of its presentations that Corona would not attempt to take over Lee Lake if the annexation occurred. The city apparently thought the non-compete agreement was a good idea — Lee Lake and Corona Water people negotiated, attorneys from both agencies had their input and the covenant was created.

The agreement is perpetual, meaning in perpetuity, meaning forever. But, at the end of 20 years, if one party wants to dissolve the agreement, it can do so with a year’s notice and a majority ruling decided by a committee comprised of two city council members, two Lee Lake board members and the executive director of LAFCO.

The city and district will determine which agency will serve the customers in areas that overlap, i.e. the Weirick Road neighborhood.

In answer to our question about how the LAFCO board will view the agreement, district board member Paul Rodriguez suggested that the district send a letter to LAFCO stating that in no way should the covenant be viewed as the district either favoring or opposing the annexation. The rest of the board agreed and the letter will be sent to LAFCO.

Other questions asked and the answers:

1.  If the city’s annexation attempt is unsuccessful, will the covenant still be in place? Yes, according to the district’s attorney.

2.  Will the district take a position on annexation? After the city files its annexation application, residents can request an annexation position be placed on the district’s agenda. A public hearing would be held and then the district board would vote on the position — whether to favor or oppose annexation.

3.  Why can’t you postpone your decision for one month? We must act on this agreement immediately.

Other questions asked but not answered:

1.  Why didn’t you at least let the Temescal Valley Municipal Advisory Council board know that you were working on this agreement with Corona?

2. Will this be viewed by the Elsinore Valley district as a possible hostile take over by Lee Lake and Corona, and could that district legally try to overturn the covenant?

3.  Why does the covenant state that it must be executed prior to the city filling its annexation application?

4.  As the district/city reviews boundaries to decide which entity will serve which areas, will customers have input? Will there be public hearings?

Other unanswered questions:

1.  If the city is successful in its annexation attempt, what is the impact of this agreement on Lee Lake Water Distinct customers?

2.  If water supplies to Lee Lake are reduced/limited or stopped due to an emergency situation, will the city take over and provide water services to Temescal Valley residents if it succeeds or doesn’t succeed in its annexation attempt?

3.  If annexation occurs what influence will the city have on Lee Lake Water District in matters such as: how business is conducted; water pricing; bond obligations; non-potable water projects; cost-saving water programs?

BOTTOM LINE: There’s no doubt that this no-compete agreement is a very good thing for Lee Lake Water District. We only hope that it will not be viewed as an endorsement in favor of annexation nor become a situation where “we’ve thrown the baby out with the bathwater.”

Surprise! At its Feb. 20 meeting, the Corona City Council voted on a “covenant” that amounts to an agreement not to compete with Lee Lake Water District. In essence the city is saying, “If we successfully annex the Temescal Valley, we won’t try to do away with Lee Lake Water District.” The covenant is good until 2033, sort of assuring the city will keep it hands off Lee Lake water for a good, long time.

We just learned about the covenant. It was approved by the City Council at its Feb. 20 meeting as a consent calendar item, with no public discussion by council members or city staff. So if you tuned in to watch the council meeting on TV without the benefit of an agenda, you would have never known this was approved.

Here’s what’s bothersome. It’s on the Lee Lake Water District’s agenda for the Tuesday, Feb. 26 board of directors meeting (Yep — this coming Tuesday! — 8:30 a.m.)

We’re asking the Lee Lake board to postpone a decision on the no-compete agreement until we can research the “who,” “whys” and “wherefores” of this egregious piece of legislation. Who instigated it?  Was it Lee Lake to protect itself and does the covenant mean Lee Lake favors annexation? Was it the city, who’s dangling the covenant as a carrot to keep Lee Lake from opposing the annexation? And, where does Elsinore Valley Municipal Water District play into the scheme? Stay tuned.

IMMEDIATE ACTION NEEDED:
ATTEND THE LEE LAKE BOARD MEETING
8:30 a.m. Tuesday, Feb. 26
22646 Temescal Canyon Road
GET DIRECTIONS HERE

EMAIL JEFF PAPE, district general manager at jeffp@llwd.org
Ask him to postpone the No Compete Covenant item on Tuesday’s agenda