WATER DEAL FLOUNDERING, CRITIC SAYS; STORAGE, TRANSPORTATION REMAIN ISSUES.

Byline: Teresa Jimenez Daily News Staff Writer

The Castaic Lake Water Agency is preparing to bring an additional $41 million in water to Santa Clarita for planned developments, but has yet to negotiate a means of transporting and storing it.

Ed Dunn, a frequent agency critic and newly elected board member, said a staff report shows that existing facilities do not have the capacity to handle the 41,000 acre-feet of water that the agency is trying to gain.

``They have no authorization to transport the water. They have no place to store it,'' said Dunn, who will take his seat on the board in January. ``I think residents are under the impression that we have this huge aqueduct at Castaic Lake. But it's not ours. It's the Metropolitan Water District's.''

A call to agency General Manager Robert Sagehorn was referred to board member Don Froelich, who said Dunn is misinterpreting facts.

Froelich agreed the agency does not have the capacity to pipe the new water to Santa Clarita and store it, but negotiations are under way to secure space, he said.

``There is capacity. There's no problem,'' Froelich said. ``We're just working out the details to get the capacity. We must work with the MWD and all the other water project contractors to get it.''

Dunn countered that the agency is having trouble dealing with the MWD on increasing capacity. Sagehorn told the board last week that negotiations have been difficult and unsuccessful, Dunn said.

``He was saying that they were all falling flat on their face,'' Dunn said.

The Castaic Lake Water Agency provides state water to four regional retailers - the Santa Clarita Water Co., the Newhall County Water District, Los Angeles County Water Works and the Valencia Water Co.

Water agency officials have proposed buying 41,000 acre-feet from a Kern County agency for $41 million. They have said the purchase will provide for the future water needs of communities already planned around the valley.

While agency officials say the water is not intended for the 23,000-home Newhall Ranch project being considered, it does allocate money for agricultural operations that the project will replace. Newhall Ranch will be considered next week by the Los Angeles County Board of Supervisors.

One problem pointed out in the environmental impact report for Newhall Ranch is the lack of a water supply for the estimated 60,000 residents.

The county board has said, however, the project may be approved without an identified water source as long as the company can provide the resource when tract maps are brought for approval.

Still, members of the Santa Clarita Organization for Planning the Environment and critics such as Dunn have argued that until those approvals are obtained, the water agency should not spend the $41 million. The money would come, in large part, from the agency's emergency reserve fund, leaving it vulnerable in the case of an earthquake or other disaster, critics have said.

Dunn said the lack of capacity in the pipelines that would bring the water and in storage areas make the proposal even more questionable.

``If you're going to go broke purchasing water, how are you going to build facilities to handle it?'' Dunn asked. ``I think they should not be rushing anything, but should work with the legislators. Maybe that way we could get a better piece of the action.''