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Home My WebLink About2009-03-18; City Council; MinutesCITY OF CARLSBAD CITY COUNCIL WORKSHOP SPECIAL MEETING Faraday Administration Offices 1635 Faraday Avenue Room173A Carlsbad, CA 92008 Wednesday, March 18, 2009 11 a.m. to conclusion of business at approximately 1 p.m. MINUTES CALL TO ORDER: 11:03 a.m. ROLL CALL: Lewis, Kulchin, Packard, Blackburn. Council Member Hall was absent. 1. Council discussion on Council Member reports on regional roles and assignments, as necessary, including: There was no discussion on item number one. Blackburn Buena Vista Lagoon JPC Chamber of Commerce Liaison City/School Committee Encina Joint Powers (JAC) Encina Wastewater Authority North County Dispatch Joint Powers Authority (alternate) Packard Buena Vista Lagoon JPC City/School Committee North County Transit District Board of Directors *North County Transit District Planning Committee League of California Cities - SD Division North County Dispatch Joint Powers Authority Hall Chamber of Commerce Liaison SANDAG Board of Directors SANDAG Executive Committee SANDAG Transportation Committee Kulchin CalCoast Board of Directors Carlsbad ConVis (alternate) Encina Joint Powers (JAC) Encina Wastewater Authority (EWA) North County Transit District (alternate) *San Diego Authority for Freeway Emergencies (SAFE) City of Carlsbad Workshop, March 18, 2009 SANDAG Board of Directors (2nd alternate) *SANDAG Shoreline Preservation Committee Lewis LAFCO Cities Advisory Committee North County Mayors and Managers SANDAG (1st alternate) San Diego County Water Authority Board of Directors Requests to Speak on a listed item: A total of 15 minutes is provided. Please submit a speaker card indicating the item you wish to address. Comments/speakers are limited to three (3) minutes each. Ann Hallock, Carlsbad, spoke to the Council regarding the preservation of open space. She noted that now is the time to purchase/acquire open space. Ms. Hallock noted that affordable housing could be designed for infill or industrial areas leaving open space free. In addition, Ms. Hallock stated that the more density in housing would conserve water used on lawns. Mayor Lewis asked that the City Manager place open space on the agenda of a future Regular Meeting. He also wanted Village H and its constraints explained. Mayor Pro Tern Kulchin added that staff should increase public awareness of the open space that has been purchased/acquired. 2. Discuss, review and provide direction to staff on the City's Drought Response Plan and Water Conservation Program and update on the state, regional and local water supply conditions. This item was trailed pending the arrival of Council Member Hall. The Mayor called a recess at 11:15 a.m. and all Council Members, including Council Member Hall reconvened at 11:20 a.m. Deputy Public Works Director Mark Stone and Consultant Rob Grantham discussed the Water Reduction Strategy in the City of Carlsbad. Mr. Stone gave the overview of drought conditions in the state and the resource constraints in Southern California. He noted that he has held Water Reduction Workshops throughout Carlsbad and has developed a plan that aligns with the public outreach. He stated that the best alternative for meeting drought/source constraints is through "tiered rates". Mr. Grantham noted that most households use between 1 to 36 units of water. He stated that the users between 37 to 80 units would be strongly affected by tiered rates. Mr. Stone further described the rates affecting agriculture such as the flower fields and strawberry fields. The handout, "Carlsbad Water Reduction Workshop", March 18, 2009, is on file in the Office of the City Clerk. 2| Page City of Carlsbad Workshop, March 18, 2009 Council concurred that staff should implement a tiered rate structure in response to water demand reductions. At 12:15 p.m. the Mayor called a recess for lunch. The Mayor and all Council Members reconvened the Workshop at 12:25 p.m. 3. Discussion of Council efficiency and effectiveness including impact of regional assignments with regard to contact with other Council members, decision and policymaking, serving the community and effective methods of feedback. There was no discussion on this item. 4. City Manager review of goal and major project tracking report and update discussion of Council goal setting process and discussion of capacity and effectiveness in the delivery of City processes and services. City Manager Lisa Hildabrand distributed the Athena Top Priority List of March 17, 2009 (this document is on file in the Office of the City Clerk. Council inquired about the planning strategy for the Special Events review. Ms. Hildabrand stated that the timeline is being developed. Council Member Packard asked how often Web Pages are updated. Communications Manager Kristina Ray noted that the new Internet design will allow frequent updates. Planning for the Business Roundtable was discussed by Economic Development Manager Cynthia Haas. She distributed an outline for the meeting (this handout is on file in the Office of the City Clerk). Ms. Haas received feedback from the Council regarding the meeting. She stated that she would return with an updated outline. 5. Discussion of feedback, communications or correspondence on issues for the good of the community, including directions to the City Manager or City Attorney, as appropriate, for the scheduling of items for future agendas, workshops or study sessions. There was no discussion on this item. Requests to Speak: Continuation of Requests to Speak (if necessary) ADJOURNMENT Mayor Lewis adjourned the meeting at 12:59 p.m. M. Wood, Certified Municipal Clerk 3 | Page BUSINESS ROUNDTABLE Recommendations & Options Event Sponsor(s): Carlsbad Mayor and City Council Purpose of Event: To begin a conversation with the business community, where areas that need to be addressed (by businesses, associations, government & education) during the next 12- 18 months are identified, in order to better position Carlsbad businesses to thrive when the economy begins to improve. Desired Outcomes: The business community identifies specific areas of focus or new programs and initiatives for itself, its associations, government. The most appropriate groups to address the issues are identified and can incorporate the ideas/programs/initiatives into their future planning efforts. Event Recommendations: 1. Event to be sponsored by the City Council with personal invitations sent from either: a. Mayor b. Mayor & City Council c. City Manager 2. Event to be held at the Canyons Restaurant at the Crossings Golf Course (might be a draw for Corporate CEOs, who have not been to there). 3. Invitees include all sectors of Carlsbad businesses, local business associations, education (CSUSM, Mira Costa, CUSD). 4. Breakfast Buffet for guests 5. Event to be held on Tues/Wed/Thursday from: a. 7:30-9:00 b. 7:30-9:30 6. Event(s) to be held in late April or early May 2009 (minimum 1 month to reserve/plan event and speakers/send out invitations. 7. 8 Guests per table/Roundtables _v ' -^ 8. A City Council member or staff at each table to listen and help facilitate the conversation. Program Options: • Option #1: o Hold one event that is open to invitees from across business sectors (Retail, Hospitality, Services, Major Employers, Businesss Organizations, etc... o Invite a guest speaker to discuss (for about 20 minutes) the current and next 12- 18 month outlook for San Diego's economic environment (Marney Cox - Sandag Economist or Kelly Cunningham - Senior Fellow and Economist for the National University System Institute for Policy Research, previously SD Chamber of Commerce, or other) o The Mayor or someone else then explains that this is a critical time for the business community in Carlsbad and that it is important for the business community to plan for the next 12-18 months how to better position itself for when the economy begins its recovery etc...) " Each table has 3 questions on note cards at their table and are invited to pick one or more questions to answer/brainstorm around, then time permitting each table will report out to the larger group. Questions could be in the following categories Business Attraction: How can the business community, business associations, government and education better position Carlsbad to encourage new business development and investment from outside the San Diego area? Business Retention: How can the business community, business associations, government and education help to retain the businesses that are already located in Carlsbad? Business Expansion: What resources can the business community, business associations, government and education provide to Carlsbad businesses in order to help them grow and flourish in Carlsbad? • Option #2: o Same as Option #1 except, no guest speaker and: • Participants are invited to discuss certain specific topics (TBD) at their tables and report out to the group. • Tables can be designated for specific topic areas (e.g. Marketing, Business Investment, Workforce Development, etc...), and guests can self-select the area they are interested in and join that table. • Questions provided on note cards at each table to prompt the discussion. • Tables report out their top ideas. Things to Consider: o Keeping on schedule is important since business people may have no more than 1-2 hours to participate. o Businesses may be more interested in discussing issues/concerns specific to their industry. o Having 2 hours or less may yield a limited number of ideas. o It may be a challenge to get CEOs of major Carlsbad companies to attend, if they are not clear how the event can benefit their companies (i.e. are the important economic issues for ViaSat or Callaway the the same as a small retailer, or hotel). It will be important that the invitation be clear about the purpose, outcome and benefits of participating. o This event may be a way for local business associations to introduce their ideas and see if they have wide or limited support. o If the group is very large it could be difficult to get through breakfast, the agenda and report out, so it may be a good idea to not to try do too much in a single meeting. Significant Projects for the City of Carlsbad - TOP PRIORITY LIST ATHENA TOP PRIORITY - BY STRATEGIC GOAL CEC Rsview Pre Construction @ ~chedule change I When we an today Construction X Completed Otheriongoing I Begin New Fiscal Year * QTR's align wlfiscal year Team 2007-0 200849 2009-1 0 44 Q Ql Q2 43 44 A M IASONDJI IAMJ JASONDJfMAMJ Balanced Community Development Power Plant Housing Element Revise & Circulate CEQA Public Heari~slRecommendations (Housing Comm & Plan-Comm) CC Public Hearing-Adopt HE & Submit to HCD for Certifiation HCD finding rec'd, draft in wmpliance Village Redevelopment Agency Expiration Options Options Report & Resolution of Intention to CC Process Ordinance Revisions, Public Hearings wlPlanning Comm 8 CC 9078 Land Use Economic Enhancement Identify potential economic opportunities & needed services Draft list of revenue-enhancing implementing land use actions Finalize list, prepare & distribute final report Redevelopment Project State & Grand RFQ & Selection of Developer Report to CM Negotiation wlDeveloper, ENA & discussion with NCTO Exclusive Negotiating Agreement with Developer to CClHousing and Redevelopment Comm. Agreement 901 1 Development Services Information System Present project work plan for approval & funding Conduct workflow analyses & documentation of Dev. Svcs. Dept. Report on other citylcounty agencies implemented similar systems de Cordova sH F Fountain " F --I= Holder Barberio SH von Schlieder sH €# Significant Projects for the City of Carlsbad -TOP PRIORITY LIST ATHENA TOP PRIORITY -BY STRATEGIC GOAL *QTR' I Pre Construction I~i ::::r~~~::~ng lian wlfiscal ~Schedule Change I Where we are today X Completed I Begin New Fiscal Year 9087 Regulatory Relief for Legal Non-conforming Uses &Buildings Survey other jursidictions &analyze ordinance alternatives Complete prepartation of draft ordinance amendment Public Outreach .:. Citizen Connection &Partnership 9079 Envision Carlsbad Initial Reconaissance Preliminary Opp's &Constraints/Formationof Citizens Committee Issues &Visioning Citizen Response/Interaction (Citywide Service Connection) Define &Develop Needs Implement System Special Events Process Review Initial Review Implement Changes Communication Web Infrastructure/Oevelopmentllmplementation Web Infrastructure &Security Infrastructure upgrade 50% complete;security policy in progress App development begun,web site host contracted9002WebDevelopment&Implementation 9125 Content Update &Migration Content,recast &visual design complete;Migration 3/09 9077 E-Zoning/GIS Implementation to parallel new city website 3/17/2009 OeCerbo SH I 1"1"~I I I I Holder Curtis JE Elliott/Zoll Peterson JE Ray LH I -"I-.'I ,~,Ii I "I I I I I L~~~j=:IJ.~,,I I I I I I I I EB I I I I I I b.J EILJ-"I'-.~I I I I -r-_N'_-C:::O---,I I I I van S;;liede;I I c::::IJ -.-J I I Jof9 I Council I I Team 2007-08 2008-09 2009-10 Focus Goal IGoal/Project Title I Comments leader/l T Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A M J J A S 0 N D J FlM A M J J A S 0 N D J F M A M J Significant Projects for the City of Carls bad -TOP PRIORITYLIST ATHENA TOP PRIORITY -BY STRATEGIC GOAL Environmental Management Total Maximum Daily Load Study Data Analysis &Modeling work w/RWQCB thru 2010 Lukey GP 9115 Implementation of Waste Discharge Requirements Dale GP *QTR' -Other/Ongoing lian wIfiscal '~',;tt~"''f~'''!1 I I I II~"..."'.'~"'<"''*'''''''''M 9110 CityProjectsEnergyGeneration&Conservation Hydro Solar Solid Waste Study Extensionof Transfer Station Agreements Waste Management Contract Kermott GPStaffanalyzingoptionsfor comprehensive SW program Conduct audit &rpt findings 06/09. Tree Policy (Sewer Lateral)Is tree policy consistent w/City Ordinance Pruim 9094 Sewer Master Plan Smith GP Cahill GP8125AguaHediondaChannelDredging&Improvement Environmental,Permits,&Studies Design Advertise and Award Construction EIR certified 8-15-08; mitigation options being developed Financial Health 9044Revenue Opportunities Library I I I IJIE[]I I I I I I r I III ~II Pizzuto JE I I I CIJ==.JI I I I I 3/17/2009 30f9 -- Council I I Team 2007-08 2008-09 2009-10 Focus Goal IGoal/Project Title I Comments Leader/L T Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A M J J A S 0 N D J FIM A M J J A S 0 N D J F M A M J Pre Construction Schedule Change I Wherewe aretoday Construction X Completed I Begin New Fiscal Year Significant Projects for the City of Carlsbad -TOP PRIORITY LIST ATHENA TOP PRIORITY -BY STRATEGIC GOAL I Pre Construction .'~~~~::::~~::ng lian w/fiscal ~Schedule Change I Where we are today X Completed I Begin New Fiscal Year QTn. 9000 Economic Development Strategic Plan Selection of Consultant Final Report to LT &CC Haasllrvine SH/JE I I ~83"1,,j I I I 9088 Asset Maximization Evaluatingand Ranking of Property Present report to LT Haas SH II ~I I I II"~if"0\:,"\''!!',,i~~~,",\~~;1~~~'~' .:..:..:.Management of Recession Impacts Budget Reductions Selective Hiring Freeze Increase Revenue/Cost ReductionTeam Structural Realignment Hildabrand Business Roundtable &Follow up Haas I c=rJ ~,"~'>rl'"I I I III", 9046 Recreation Cost Recovery Analysis Albright JE I I,/'I c:::o -I I I I I 9009 Fleet Master Plan &Policies 9099 Plan &policies 70% complete;Draft Rpt under review Schuck GP I t.,,~,.,L.-",.I:]J ',I I I I I Guidelines for Managed Service Delivery (Competition)Providedbriefingto CC;AS ElliottlPruim to CC Jan 2009 JI "I ",,',,' Clark'"~~I I I I JE 9001 Evaluation of HRIS System 3/17/2009 40f9 -------,#__n Council I I Team 2007-08 2008-09 2009-10 Focus Goal IGoal/Project Title I Comments leader/l T Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A M J J A S 0 N D J FIM A M J J A S 0 N D J F M A M J Significant Projects for the City of Carlsbad -TOP PRIORITY LIST ATHENA TOP PRIORITY -BY STRATEGIC GOAL *QTR' I Pre Construction Construction Other/Ongoing lian w/fiscal ~Schedule Change I Where we are today X Completed I Begin New Fiscal Year Update Purchasing Ordinance for Charter Status Design/Build Learning,Culture &Arts 9037SculptureGardenPhaseII Installation of new works/signage/informational handouts 9041 Library Strategic Initiatives Work Plan Develop work plan Initiative based goals Outreach Sister City Program Administration Writtenrecommendationfor Administrationof SisterCityProgram .:..:..:. Parks/Open Space/Trails 9020Alga Norte Community Park Swim Complex Update Cost Estimate Operational models analysis .:..:.Open Space Acquisition Oversight City Lagoons in Partnership w/Foundations/State 3/17/2009 Removal of prevailing wage requirement in std ctc lang. 03/09 On hold need Council direction 10 yr Batiquitos Lagoon Monitoring Rpt rec'd 3/09 under review Wengenroth JE Kemp Pizzuto!-_.Cc I IGordon'I ~I IIIL..JE .ZN Pizzuto JE I I ",or ~I I I I...""_c.-....- Pi~~uto I I I ~I I I I Hammann LH I I I rn~.r:]I I I -I Haas SH Cahill GP r.d~..;1 .I c:::IJ,....I I I I I I I I OJ --"'1""'--r'''~-~'I I I 5of9 -. Council I I Team 2007-08 2008-09 2009-10 Focus Goal IGoal/Project Title I CommentS Leader/L T Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A M J J A S 0 N D J FIM A M J J A S 0 N D J F M A M J Significant Projects for the City of Carlsbad -TOP PRIORITY LIST ATHENA TOP PRIORITY -BY STRATEGIC GOAL Construction Pre Construction ~Schedule Change I Where we aretoday X Completed I Begin New Fiscal Year *QTR' -Other/Ongoing lian wlfiscal Lake Calavera Trails Master Plan Steyaert BA Swim Complex Renovation (CHS modernization)Spickard r::~:~~~,:--"";1:='=J::J7!I~"<"¥I I I I IBA.":""i,.~,~,.""",""',',*"')',":,('J;!J!}:" .:..:. Safe Community 9021Joint First Response Facility (Tom,Kevin,Skip) Business/Operations Plan Preliminary Design,CUP &CEQA Final Design &Permits Advertise and Award (Estimated 6 months) Construction (Estimated 12-18 months) Hammann LH By Q2 2009 9025 Standards of Coverage Crawford f I.,,"<~;I C:::IJ'c'',,;~,I I 1 1 1 Tra ns portation/C ircu lation Traffic Calming Program -Sierra Morena,Donna Dr.Meetings wI Residents underway Johnson GP I .1'1 c::L1 I I 1 I I 9089 Encinas Creek Bridge Under design.Field studies underway Cahill GP 9065 Village Public Parking Diagonal Parking Study with recommendations for Grand Ave Report to Traffic Commission &City Council Implementation of approved tasks Revise Ord.to CC Q4 Fountain SH I I I Xg}""'~~1 j §I 3/17/2009 6of9 Council I I Team 2007-08 2008-09 2009-10 Focus Goal IGoal/Project Title I Comments Leader/L T Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A M J J A S 0 N D J FIM A M J J A S 0 N D J F M A M J Significant Projects for the City of Carlsbad -TOP PRIORITY LIST ATHENA TOP PRIORITY -BY STRATEGIC GOAL *QTR' I Pre Construction Construction Other/Ongoing lian w/fiscal ~Schedule Change I Where we are today X Completed I Begin New FiscalYear Traffic Impact Fee (TIF)Follow up review .:..:..:.Traffic Management 9090 Traffic Management Strategic Plan 9091 Advanced Traffic Management System Goal in process Goal in process La Costa Road Diet Pending mtg from residents to discuss options .:. Water 9061 Desalination Permit Approval Construction 24-30 months Poseidon expects constuction start Summer 09 9122 Water Supply Planning &Conservation Oceanside Water Rights Drought Ordinance Water Allocation Tiered Water Rates Interim Agricultural Plan Requires add'i resources Pending determination from Cty Water Auth,Expected Apr,09 9122Water Master Plan 9107 Recycled Water Master Plan Water/Sewer Supervisory Control &Data Acquisition Req's funding FY09-10 Vista/Carls bad Sewer Forcemain 3/17/2009 Plantz I ~, *. ,, 1i , . , \; , .. , ~, . , ' , ' ,"'V '.'~"..,/"~tJ,,..I I I II'<"'''',''''",GP A... Johnson GP Johnson ~'r'~'1J:i""I:EE I I I I IGP"\~:i;'!c""~f".~",,"ij',';,"ji?fJ~."'e':'.,',..,"0"..'~.,.:"'".'",-,M-"'"'b,..," Stone JE Stone GP Plajzer GP Ahles GP Dale GP Ahles GP I r-"::C;:,,;LC3]-l'I I IL,,,,_:J I I I...,"I..''t'L.CJ[]I I I I I --- Council I I.Team 2007-08 2008-09 2009-10 Focus Goal IGoal/Project Title I Comments Leader/LT Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A M J J A S 0 N D J FIM A M J J A S 0 N D J F M AM J (!.e w~ .3-;8>-01 Carlsbad Municipal Water District Carls bad Water Reduction Workshop March 18,2009 .::>FCS GROUP www.fcsgroup.com 1 Presentation Overview ---------------------------- ~Overview ~Current Situation ~Public Outreach ~Options to Manage Reductions ~Recommendation ~Discussion and Board Direction --------------------------------------------- Page 2 1 ------------_.-------Status of Our Water Supplies ~San Diego affected by historic drought ~Colorado River Basin ~Sacramento Delta ------------... .::>FCS GROUP Page 3 1 SDCW A Water Reduction Program----------------------------------------- Four drought response levels Currentlyin Level I (DroughtWatch) Anticipate moving to Level 2 (Drought Alert) SDCWA anticipates water reductions beginning July I Penalty charge for over usage ... .::>FCS GROUP --- Page 4 ~ 1 ~ g aBed dOO{i:)SJd <::+~------------------------------------------------ " ,h Apn~s aa:l ,. (\l~~:U~~>8 ~~~~"",-, -------------------- SPddN pUB S1-JdfO.Id ~U!1-JdS.Id1-UI Objectives of Our Water Reduction Program---------------------- ~Fair &equitable to all customers .,Achieves the goal of the cutback .,Flexible ~Develop a program that meets Board's policy objectives It.. .::)FCS GROUP ---------- Page6 1 Public Outreach Process Has Provided Consistent Themes--------------------------------------------------------------------------------------------- ~Communication ~Enforcement ~Automation ~Incentives ~Options for Reductions ~Tiered Rates ------------------------------------------------------------------- .. .::>FCS GROUP Page 7 1 Water Demand Reductions: Alternative Approaches----...---- ~Allocation &Water Budgets II'Based on defined 'usage'metrics Meter size,customer class,historic usage ~Based on 'non-usage'metrics or 'assumed'usage Ex:Lot size,number of bedrooms,people per household ~Water Rates ).Based on actual water usage Uses pricing signal to achieve demand reduction objectives .-------..------- Ii>. +::>FCS (JRO L P Page 8 1 Water Demand Reductions: Alternative Approaches------- I>.. +::>FCS GROUP Page9 1 Resource Requirements High Low Costs ed/High Low Data Needs High Low Equity Low High Customer Feedback Unfavorable Favored Recommendation:Implement Tiered Rate Structure------------------------------ .Meets objectives as well as info/input from workshops: ~Fair &Equitable ~Does not penalize existing customers already conserving ~Strong pricing signal to water wasters ~Other agencies have used this method to successfully achieve the reductions ~Is flexible enough to use in "normal"conditions and during water cutbacks ------------------------- I>. .::>FCSCRl)r Page 10 1 Critical Attributes to Tiered Rate Structure------------------------------------ ~Use pricing as the mechanism to encourage appropriate water usage ~Minimize "policing"users byWater Utility ~Rewards conservation and penalizes water wasters ~Recovers penalty charges imposed by SDCWAlMWD through rates .Pricing structure recognizes "essential"vs."discretionary"usage ~Targets summer peak/irrigation usage ~Protects residential indoor usage ~Protects commercial usage ~Drought rates use the same structure as proposed ongoing rates ~Administrative ease and cost efficiencies -----------------------II.. .::>FCSGROUP Page 11 1 Single Family Residential Usage----------------- :!1!10,000 iii ~8,000C0:ii 16,000 14,000 12,000 6,000 4,000 2,000 ----------------------- -AnnualAcct5 -Cumulative %of Accounts 0 0 2 4 6 8 10 1214 161820 22 24 2628 30 32 34 36 3840 42 44 46 4850 52 54 56 5860 6264 66 68 70 72 74 76 7880 ----------------------------------- Units (ccf) .t>FCS GROUP ,---,------- -1100.0%90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% --- Page 12 1 Current Water Rates-------------------------- ~The current water rate structure is comprised of fixed monthly charge and usage commodity charge: .Fixed Charge .A monthly delivery charge based on meter size .Commodity Charge .Consumption charge of $2.12 per hundred cubic feet (cd)of water .Conservation discount reducing commodity charge to $1.91 per cd ifthe user consumes under a given amount.A recycled water unit charge of $2.01 per cd --------------------------------10. .::>FCS GROUP 1 Current Water Rates --- Monthly Delivery Charge* Meter Size Delivery Charge *This charge is incurred even if no water is used. ---------------- Conservation Rate Table ** Meter Size Usage **Acustomer with consumption under the given usage amount willbe chargedat the discountedrate of $1.91 perccffor allwater used. ------------ ... +::>FCS G RO UP 1 5/8"$14.54 3/4"$17.87 1"$24.50 1.5"$42.26 2"$60.88 3"$108.89 4"$176.49 6"$341.99 8"$541.28 5/8"<7 ccflmonttl- 3/4"<10 cd/month 1"<16 cd/month 1.5"<30 cd/month 2"<45 cd/'!'°l!th 3"<79 cd/month 4"<123 cd/month 6"<228 cd/month 8"<336 cd/month ------------------Tiered Rate Structure--------------------- $3.00* $2.50* $1.95* Upper Tier l Middle Tier Current Rates Recommended Rate ~--S~ucfure----- +::>FCS GROUP ----- 20 ccf 12 ccf ---------- The remaining 27%of customers use 20 or more ccfs each month on average An additional 22%use 20 cet of less per month on average Approximately 51%of customers use currently use 12 ccf or less a month on average .Rates are for illustrative purposes only --------- Page 15 1 Proposed Rate Structure----------------------------- ~Residential -implement tiered rate structure ..Unit cost of water will become progressively more expensive as a customer users more water. ..Three tier block structure for its single family and multi-family residential users. ~Commercial -maintain flat usage charge per unit I>Single unit charge for water I>Customers are heterogeneous with various non-discretionary needs. -------------------- 10... .::>FCS GROUP 1 Issues to Consider When Developing Drought Rate Pricing ------ ';r Fiscal Health of the Water Utility ';r Targeted Water Usage Reductions ';rFixed vs.Variable Costs ';rPenalty Charges ';rImpact of Education and Enforcement ';rEssential vs.Discretionary Usage ';rPrice Elasticity of Water -short and long- term ------------ ... .::>FCS GROUP Page17 1 ----------------Proposed Drought Rate Structure ~Maintainthe non-drought rate structure ~Residential tiered rates ~Commercial flat charge per unit Increase rates to (I)encourage conservation and (2) recover lost revenues Additional Features: I.MaintainCurrent Base Usage Block Unit Rate 2.Surchargeon MonthlyService Charge 3.Recover Penalty Rate Through Peak Rate 4.Decrease tier sizes with Drought levels 3&4 ~ ~ ------------------------------------------------------------- ... .::)FCS GROCP Page 18 1 Single Family Residential Usage----..-------------------- 100.0%16,000 - 14,000 12,000 10,000~iii ~8,000-c0:i: 6,000 4,000 2,000 0 -Annual Accts 0 2 4 6 8 1012 1416 1820 22 24 2628 3032 34 36 3840 42 4446 48 50 52 5456 58 60 62 64 66 68 70 7274 76 78 80 Units (eet) ----------_u----------------------------------------- +~>FCS GROUP 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% --------- Page 19 1 ----Potential Drought Rate Structure Example------ $3.00{ Upper Tier $2.50* Middle Tier I I I ,,---------- I($4.00*) I '/ ,20 ccf I I 1/'"" ($3.25*) I '/ 12 ccf II I I I I I I $1.95*' I I I I I I ---..---- Upper Tier Middle Tier 20 ccf 12 ccf I I I I /, Ii'$5.50*" I "'/ I I :,',J r.~~~~:~J I I I I I I I $1.95*' I I I I I Upper Tier .. +::>FCS GROUP --..---_N.~'!--f:):OLlf!~~~!1!f!~----------------_Dr:>?_g_h_t_Lev.e!_2-----------------[Jr:>?!lh_tJ:_ev..e!~----..- Page 20*Rates are for illustrative purposes only 1 Other San Diego County Utilities------------------------------------------------------------------------------- ~Proposed water reduction methodologies ~Tiered Rates ~Escondido f Oceanside ~Del Mar ~Allocations ~San Diego ~Water Budgets ~Padre Dam ---------------------------------------------------------------------------------------------... .::>FCS GROUP.Page21 1 ~ zz aBed J;l.O{I~)S:)d:(::.....--------- UOr-1.JdJ!O ~UO!SsnJS!O ---------------------------------------------------------------------------------------------