HomeMy WebLinkAbout1995-09-07; Municipal Water District; 0907.01; Presentation of Water Rate Committee Final ReportCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL
AB #
MTG. 09/07/95 CMWD DEPT.
TITLE: PRESENTATION OF WATER RATE
COMMllTEE FINAL REPORT
DEPT. HD.
CITY ATTY
CITY MGR.
RECOMMENDED ACTION:
This is an informational item only. No action is to be taken.
ITEM EXPLANATION:
Staff will make a presentation on the Final Report of the Water Rates Committee with
their recommendations and summary.
WATER RATES WORKING COMMITTEE FINAL REPORT
Section I - Executive Summary
Revised and adopted July 26, 1995
1. Introduction
This Final Report by the Water Rates Working Committee (WRWC) represents the
culmination of the committee‘s efforts to provide community input to the process of
designing a new water rate structure for the Carlsbad Municipal Water District. The
committee was formed to ensure that District staff and consultants consider all relevant
community viewpoints before making a final recommendation to the District’s Board of
Directors.
The WRWC was comprised of 14 members, each representing an important constituency
or type of Carlsbad water user that could be affected by a revised water rate structure.
Representatives brought a variety of perspectives to the committee discussions including
business, agriculture, residential, industrial, government and environmental viewpoints.
The committee‘s first three meetings were devoted to a general education on water supply
and delivery, rates terminology, the District‘s finances and an indepth analysis of the current
water rate structure. The committee also participated in a site tour that included the District
offices and other important facilities used to supply water to the District’s service area.
During the last two meetings, the committee members worked to reach consensus on a set
of preferred options for a revised water rate structure. These options will be utilized by the
District’s rate study consultant and incorporated into his final recommendation to District
staff.
Members of the WRWC adopting this report have participated in the committee process by
completing a weighting exercise to select a set of preferred options for the new water rate
structure. The committee also provided additional input regarding rate structure issues to
the District staff and its consultants during committee discussions. The committee meetings
were facilitated by an outside facilitator whose role was to maintain neutrality and establish
an open, balanced committee process.
II. WRWC Results: Weights for Rate Structure Components
The WRWC used a confidential voting procedure to place weights on various options for
rate structure components including: fixed versus variable charges; the delivery charge for
different customer classes; alternative rate structures; the implementation, availability and
revenue structure of a conservation rate; the implementation of a lifeline user rate; financing
of capital projects; financing of the reclaimed water system; connection fees for the potable
water system; discounts for reclaimed water users; and revisions to the residential sewer rate
structure.
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The committee was given two opportunities to weight the rate structure options. The first
allowed them to weight according to what they found important based on the prior
education process. Before they completed the second weighting, the committee was given
an opportunity to discuss the options, provide commentary, and ask questions to share their
individual perspective with the whole committee. Since some committee members changed
their weightings, the results of the second exercise were deemed the official weighting to
be used in the rate structure study.
The results of the weighting exercise are included in the Final Report. They are to serve as
input on community values to the District’s consultant and are not intended to endorse a
particular water rate structure. Decisions regarding the selection of a final rate structure will
be made by the City of Carlsbad Councilmembers who also serve as the Carlsbad Municipal
Water District Board of Directors.
111. Committee Commentary and Recommendations
While outside the purview of the committee’s purpose, the committee also submitted
additional commentary on the subject of water conservation. A report was drafted by
subcommittee members and approved by the entire committee to provide thoughts and
recommendations for future consideration by District staff. This commentary is included in
the Final Report.
IV. Structure of the Report
The balance of this report includes six sections and Appendices. Section II lists the
organizations and individuals adopting the report in the form of a signatory page. Section
111 presents the WRWC’s Statement of Purpose and Section IV outlines the Groundrules of
Participation. Section V presents the results of the final weighting exercise. Section VI is
the commentary on water conservation.
This report also includes three appendices. Appendix i is a roster of participants and
observers. Appendix II is a roster of the District staff and consultants. Appendix 111 is a
compilation of all the meeting agendas and summaries.
V. Conclusion
Those who participated in the process have provided valuable input that will assist in
designing a revised water rate structure that adequately reflects the values and needs of the
Carlsbad community.
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