HomeMy WebLinkAbout1991-04-23; Municipal Water District; 104; Monthly Allocations for Single-Family Residences‘../‘LtL FL , CARLSBAD MI’-UICIPAL WATER DISTRICT - -\GENDA BILL’, CD q@
AB#L TITLE:
MTG. 4-23-91
DEPT. CWD Update on method of setting monthly allocationsC'TYATTY
for single-family residences
RECOMMENDED ACTION:
Update the Board on changing the method of setting monthly allocations for single-family
residences. Informational Only
ITEM EXPLANATION
In mid February, the Board adopted Resolution No. 718 which created an inclining block water
rate system. This action was in response to Metropolitan Water District’s (MWD) Incremental
Interruption and Conservation Plan (IICP). The IICP program sets monthly water allocations for
each agency based on actual demands incurred during the base year that is defined as starting in
July 1989, and ending in June 1990, (fiscal year 1989-90). These monthly allocations are adjusted
for the number of service connections added since 1989-90 and any mandatory conservation
measures that were in place during the base year.
For each agency that exceeds its monthly allocations, a $394 per acre foot surcharge will be
assessed on every acre foot purchased over the allocation. Likewise, a $99 rebate will be given
for every acre foot under the monthly allocation. When applied to our current billing quantity of
one unit (748 gallons) the penalty equals $.90. Our current retail rate is $1.01.
The District’s initial reaction was the adoption of its inclining block rate system that applies
MWD’s program to the retail customers. The way it works is identical to the MWD’s program
previously discussed. Beginning March 15th each service connection in Carlsbad will have its
own monthly allocation based on actual demands incurred during 1989-90. The actual demands
will be reduced by the MWD conservation target, currently 30%. For every unit of water that is
purchased over the resident’s individual target, an excess user rate of twice the current water rate
($2.02) will be assessed.
The Board has directed staff to reevaluate the existing rate structure as it applies to single family
residential customers. The method currently in place, where targets are based on actual water
demands, is the preferred method for all other users in the District. It would be virtually
impossible to develop equitable allocations for commercial and industrial users when the wide
diversity of the nature of these businesses is considered.
Staff will give an oral report on the various alternatives considered. In addition, a public hearing
for the May 7th Board meeting is also being advertised.