Here’s a CLPOA vs EVMWD status update

In an effort to update readers on the latest communication with regard to CLPOA vs EVMWD Lake Lease litigation, here are June communications by both entities.

Elsinore Valley Municipal Water District Board President Phil Williams sent a letter in the mail “To EVMWD Customers.” The CLPOA posted a notice “Privileged for Members Only” at www.canyonlakepoa.com.

In a press release to The Friday Flyer dated June 21, 2016, (containing the same information that is on the website) the Canyon Lake Property Owners Association wrote:

Privileged for Members Only

CLPOA v. EVMWD Status Update

“Prior to the EVMWD June 2016 mailer, CLPOA sent EVMWD’s attorney a letter attempting to reopen lake lease negotiations. CLPOA’s letter came in response to an EVMWD indication that they were willing to negotiate. To demonstrate CLPOA’s commitment to a collaborative solution, we offered to fund a professional mediator to ensure an equitable and timely solution, and we even included the names of four highly-respected independent mediators in Southern California. We also offered to consider a mediator named by EVMWD, if they would like to recommend someone.

“EVMWD has declined our offer, saying that direct communications to date between the lawyers has been productive and they would prefer to continue those discussions without a third party. The CLPOA remains committed to protecting our members and to achieving a solution that is positive for all parties, now and in the future.”

Following is the letter received in the mail by Canyon Lake residents:

From: Phil Williams, Elsinore Valley Municipal Water District

To: EVMWD Customers

RE: Canyon Lake Reservoir

“As you are no doubt aware, Elsinore Valley Municipal Water District (EVMWD) has been defending itself against a lawsuit from the Canyon Lake Property Owners Association. However, the CLPOA continues to distribute misinformation and misstates their position and that of EVMWD.

“The CLPOA negotiated the current lease and in recent court rulings, that lease was upheld as valid. The CLPOA Board incurred a staggering $668,095 in legal fees and costs associated with this dispute. The main complaint of the CLPOA about the lease is the amount EVMWD charges for exclusive use of the lake by Canyon Lake residents.

“Those charges are based on water rates set by Metropolitan Water District (MWD), our wholesaler, which is raising its lowest cost water to EVMWD by 12.1 percent beginning in January 2017 and an additional 4.4 percent in 2018.

“Prior to filing their lawsuit, the CLPOA had asked for and then rejected, EVMWD’s offer of an annual cost increase based on the Consumer Price Index, (CPI) that is currently about 2.1 percent. This option, called the 5th amendment to the original lake lease agreement, could have offered protection against such unpredictable price increases from Metropolitan Water District. However, since the CLPOA refused that price protection, the estimated increase to the lease payment by 2024, could now cost the CLPOA $1.9 million more than if it had accepted the Consumer Price Index option.

“After leaving the negotiating table, the CLPOA has continued on a course of frivolous lawsuits. The CLPOA Board rejected the 5th Amendment which their General Manager and legal counsel helped draft, along with EVMWD. This decision could ultimately cost Canyon Lake residents millions more in lake lease fees.

“Central to this legal battle is a fact often overlooked by the CLPOA. The Canyon Lake Reservoir is a drinking water supply for ALL EVMWD customers. The lease they negotiated allows that community exclusive recreation rights to a lake that belongs to all of EVMWD’s customers.

“EVMWD sincerely hopes common sense will eventually prevail with the CLPOA Board and provide a path forward that honors the lease agreement and allows the CLPOA and its members to continue using the lake for recreation.”