Loading...
HomeMy WebLinkAbout1996-01-24; Water Commission Ad Hoc; MinutesMINUTES MEETING OF DATE OF MEETING: January 24,1996 TIME OF MEETING: 2:OO p.m. PLACE OF MEETING: WATER COMMISSION (Regular Meetlng) 5950 El Camlno Real CALL TO ORDER: Chairperson Melideo called the Meeting to order at 2:00 p.m. ROLL CALL: Present Commissioners Melideo, Henley, Kubota, Louis and Maerkle Absent: None. PLEDGE OF ALLEGIANCE was led by Commissioner Maerkle. COMMENTS FROM THE AUDIENCE: There were no requests to address the Commission. OLD BUSINESS: 1. 0124-01 - REPORT FOR WATER AND WASTEWATER RATE STUDY AND FINANCIAL PLAN. Bob Greaney introduced Sudhir D. Paridwala, Consultant from Montgomery Watson, who presented transparencies covering the report, including the goals, issues and system background. (A copy of this is on file at the Water District Office.) Mr. Paridwala stated that, at the present time, there is a need for some change to correct inequities in the water and sewer rate structure. He stated that the Citizens Review Committee that worked with the Consultant on this project felt that there should be a discount for reclaimed water. He stated that two of the new charges by Metropolitan Water District; new demand charge and the readiness to serve charge will also affect customers. The rates recommended will apply to all customers and not just to single family residences. Mr. Paridwala referred to a chart showing the recommended water connection fees, stating that the fees include the New Demand Charge plus the System Fee. For a 5/8" meter, this would be $2,815, and for an 8" meter, this would be $148,400. Bob Greaney explained that Metropolitan Water District will charge $1,000 per acre foot for each acre foot the City exceeds its base water sales, and that amount will increase over the years. He said the additional revenues recommended will provide the funds to pay for that charge. He said if Carlsbad proceeds with development of well fields or reclamation, they may not exceed that base rate and, therefore, could use that money to pay for local water deliveries such as reclaimed water or ground water. Mr. Greaney also reminded the Commission that these fees shown do not include any charges by the County Water Authority. January 24, 1996 WATER COMMISSION Page 2 OLD BUSINESS: (Continued) In response to Commission query, Mr. Plummer explained that the District connection charge now is based on the EDU's, and there is no connection charge. Commissioner Kubota commented that there needs to be a way to assess the service charge for a sprinkler system in a building that would only be used in case of a fire. Mr. Paridwala stated that during 1994-95, water consumption has gone down in Carlsbad, due to the loss of some commercial users. He said the LEGO Park would help take up the current loss in commercial use, but it was not considered specifically in this report. This report and the recommended revenues are for the current year only, and at the time LEGO would be built, the report could be updated. Mr. Paridwala stated the connection fees are not for present customers, but apply only to new customers. Commissioner Louis stated that perhaps this would be a detriment to new business locating in the City, and agreed that sprinkler systems for fire should have a different rate, as the proposed fee would be high for something that may not occur. Bill Plummer stated that there is usually a fire indicator for the water consumed for a sprinkler system, and is not a meter. Mr. Paridwala stated that the agriculture users would see a significant change, and in discussion about meter sizes, staff indicated the only 8" meter is for SDG&E. Mr. Plummer stated that the usual meter size for commercial or industrial is 2". Commissioner Kubota stated he would like to see the entire revenue stream--to have the total revenue picture. Chairperson Melideo stated her concern with a discount for reclaimed water users. She said there is a constant comparison between potable and reclaimed water, and she felt the main issue is trying to save the potable water. She felt the users should be grateful they can use reclaimed water and save the potable water; but certainly not receive a discount for doing that. Bob Greaney stated that the 5% discount recommended was the result of discussions with the Citizens Advisory Committee. The Committee Members felt that a discount for using reclaimed water might encourage more reclaimed water use. Mr. Greaney stated that this would be a policy decision by the Board, and the Commission could either recommend that or not. Commissioner Louis stated that the use of reclaimed water will be required to be used by developers in Carlsbad, so he saw no reason to give a discount for something that is required. Commissioners Henley and Kubota left the Meeting at 3:OO p.m. Bob Greaney stated that the agriculture customers are having a problem. The cost of water is too expensive, and they may need to have some savings to help keep them in business. Bob Ladwig, Ladwig Design Group, private consultants, inquired whether there would be public hearings on this report. January 24, 1996 WATER COMMISSION Page 3 OLD BUSINESS: (Continued) Mr. Greaney stated that this report will be presented to the Board of Directors some time in late February or early March; the Board will ask questions and set a date for a public hearing. Russ Haley, Shea Homes, Evans Point project, stated he was happy to hear there was an Advisory Committee to give input on this. He said he favored the pay-as-you-go method. Jack Monger, Building Industry Association, inquired whether he was correct in thinking that the increase in the actual capacity charge is reflective of the Metropolitan Water District charge, and Mr. Greaney stated he was. Mr. Parker stated he felt the connection fee was really exorbitant and would affect the ability to get commercial people into Carlsbad as well as residential. Mr. Greaney explained this is a one-time fee. He said if the commercial building required a 2" meter, they would have to pay the fee for that meter size, and it does include the New Demand Charge. He added that it does not include any fee charged by the County Water Authority. Bob Ladwig stated that an additional fee is to be charged for granny flats, and since the City is required to have 15% of new development as affordable housing, one way to comply is to build granny flats; either onsite or offsite. He said the recommendation was for between 40 and 75% additional fee. Mr. Ladwig stated granny flats are 640 square feet and are essentially one additional bedroom, and he felt this recommended fee was high. Mr. Paridwala said that the average single family consists of 2.5 persons, and there is only one additional person usually in a granny flat, and this would only be a monthly charge. He said as long as there was only one meter, it would be a 40% charge of a single family charge. Chairperson Melideo stated this item would be tabled and continued at the next meeting. t WATER COMMISSION: Presidents and Managers Meetinq Commissioner Maerkle gave a brief report on a recent meeting. GENERAL MANAGER REPORTS: Emeraencv Storaae Proiect Bob Greaney reported this project is in the EIR phase now, with the impact statement finished and the report out for review throughout the County. This item is scheduled to be before the Water Board sometime in March. January 24, 1996 WATER COMMISSION Page 4 GENERAL MANAGER REPORTS: (Continued) WARAC Bob Greaney stated that Commissioner Kubota and he attended a WARAC meeting Monday morning and the WARAC Committee approved three applications for funding assistance for the City of Carlsbad; the Water Resource Plan Study; the Desalting Pilot Plant with Aero-Gel and the 10% design report for phase two of the Water Reclamation Program. He said the Water Reclamation Program was funded for the full amount of $50,000; the Water Resource Plan partially funded and to the limits they address water supplies ($30,000), and the balance of the monies in that fund for the fiscal year was allowed for the Desalting Pilot Plant, approximately $32,900. He said this will be before the Board at the Water Authority in February. APPROVAL OF MINUTES: On motion by Commissioner Maerkle, the Minutes of the Regular Meeting held December 13, 1995, were approved as presented. AYES: Melideo, Louis and Maerkle Set Next Meetina Date. Mr. Greaney stated the next meeting would be February 14, 1996. ADJOURNMENT: By proper motion, the Regular Meeting of January 24, 1996, was adjourned at 3:24 p.m. Minutes Clerk