HomeMy WebLinkAbout1991-06-04; Municipal Water District; 109; Inclining Block Water Rate Structurei “, 1 CARLSBAD iVYd1CIPAL WATER DISTRICT - “YGENDA BILL .? “’ ” ‘0 3 %
w MATER RATE STRUCTURE -
REVISION OF THE INCLINING BLOCK
DEPT. HD.
CITY ATTY
CITY MGR.s
3ECOMMENDED ACTION:
Adopt Resolution No. 731 revising the inclining block water rate structure
ITEM EXPLANATION
At the public hearing conducted on May 14th, the Board directed staff to develop the resolution
that would incorporate the revised inclining block water rate structure. Specific changes from the
current system that have been included in the proposed Resolution are as follows:
1. A system that bases monthly single-family residential allocations on a district-wide average
2. Adjust the monthly allocations for seasonal variations (19 in dry season and 13 in wet season
less the conservation level in effect).
3. Make provisions for residential users that maintain agricultural production of the property
4. Increase the penalty rates
5. All customers must reduce actual demands in 89-90 by 20% to avoid the installation of the
flow restrictor
The attached Resolution incorporates these revisions.
FISCAL IMPACT
One of the components of the new inclining block rate system is to increase the penalty rates
charged to those larger users. This is bound to create some additional revenue. The additional
revenues are pledged for water conservation programs, plans to develop additional water sources
or for reserves to be used as the Board sees fit. We will keep the Board updated on the financial
impacts of the new system.
Exhibits
1. Resolution No. 731 Revising the Inclining Block Water Rate Structure
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RESOLUTION NO. 731
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE CARLSBAD MUNICIPAL WATER DISTRICT
REVISING ITS INCLINING BLOCK WATER RATE STRUCTURE
WHEREAS, the supplier of water to Carlsbad, the San Diego County Water Authority
(Authority), has adopted a new water rate structure that penalizes agencies for exceeding their
monthly allocations; and
WHEREAS, the Authority’s penalties for exceeding the monthly allocations would nearly
double the current wholesale cost of water; and
WHEREAS, the Carlsbad Municipal Water District (District) adopted an inclining block
water rate structure on February 19, 1991; and
WHEREAS, the District desires to revise the existing system as it pertains to charging
excess user rates for all customers amd setting monthly allocations for single-family dwellings.
NOW, THEREFORE, BE IT RESOLVED that the Carlsbad Municipal Water District
Board of Directors amends the existing rate system as described in Resolution No. 716 to read
as follows:
1. Monthly allocations for all existing water user classifications, except single-family
dwellings, will be established by the General Manager using actual consumption during the base
year of 1989-90 (July 1989 through June 1990) and reducing that amount by the conservation
target for the Incremental Interruption and Conservation Plan (IICP) phase in effect. An inclining
block water rate system will be in effect for all customers that exceed their monthly allocations.
2. Monthly water allocations for existing single-family dwellings and all new residential
customers will be based on average semi annual usage in the District’s service area, less the IICP
phase currently in effect. The average semi annual usage is defined as 13 units during the wet
season months beginning with the December-January billing cycle and 19 units during the dry
season beginning with the May-June billing cycle. Monthly allocations will be calculated by
reducing the appropriate semi annual single-family allocation less the current conservation target.
3. Monthly allocations for new commercial and industrial users will be based on an
average monthly usage for comparable existing developments. If adequate comparable uses do
not exist, the allocation will be determined on a case-by-case basis by the District’s General
Manager.
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4. Water consumed by all customers up to their monthly allocation shall be billed at the
Block 1 rate (current retail). For those customers that exceed their monthly allocation,
increasingly higher block rates will be charged. Based on the percentage by which the customer
exceeded his/her monthly allocation, the additional block rates will be as follows:
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II 4 II A. BLOCK % OVER ALLOCATION RATE
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Block 1 Up to Allocation
Block 2 1% to 10% Over
Block 3 11% to,20% Over
Block 4 >20% Over
Current Retail*
1.5 X Retail
2.0 X Retail
2.5 X Retail
($1.01)
The additional blocks shall be charged cumulatively. For example, if a customer exceeds his/her
allocation by 30%, the water bill will include charges in all four blocks, not just the Block 4 rate.
5. All water used from a fire h$lrant through a temporary meter will be charged at the
Block 4 water rate.
6. If the District changes its retail water rates, the Block 1 rate will automatically adjust
to the current retail rate, and the additional blocks will be adjusted proportionately.
7. If the Authority imposes another phase of its IICP, the District will respond by
requiring that its customers save the corresponding percentage of water for that phase, which will
then be the basis for the block rate system, The water conservation target required by each phase
is as follows:
PHASE CONSERVATION TARGET
Phase I (voluntary) 5%
Phase II 10%
Phase III 15%
Phase IV 20%
Phase V 30%
Phase VI 40%
Emergency 50%
/ If a conservation percentage is declared that does not match any of the phases, the District’s
Board of Directors will set a conservation target as the basis for the inclining block rate system.
8. The General Manager, upon receipt of a completed application form demonstrating a
clear need, may approve an additional water allowance for special circumstances including but
not limited to the following circumstances:
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A.
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F.
Occupancy of a residence by more than four persons. Additional allocations of
three units per month will be granted for every permanent resident in dwellings
with more than four occupants.
Water demands for medical equipment in the home or to accommodate a medical
condition.
Active agricultural production for commercial purposes exists on the property and
the occupant possesses a valid business license issued by the City of Carlsbad.
Unusual needs or special hardships
The use of reclaimed water
Licensed home businesses with special water needs
Installation of ornamental fountains or swimming pools, and the maintenance of new landscaping
does not qualify for exemptions. .
9. All customers, except residential users whose consumption is below the semi annual
allocation, must reduce their current monthly water demands at a level equivalent to monthly
usage during fiscal year 1989-90 less the current conservation target as defined in section 7. All
residential customers whose consumption is below the semi annual residential allocation of 19
units in the dry season and 13 units in the wet season (as defined in section 2) shall be exempt
from the following procedures.
If usage exceeds the aforementioned parameter, a written notification shall be sent. If
repeated in the second consecutive month, an excess user charge equivalent to $50.00 or 100%
of the water usage for that month will be assessed, whichever is greater. For the third consecutive
violation, a flow restricting device may be installed in the customer’s water meter. This action
shall be taken to assure compliance with this Resolution regarding the conservation of water.
Such action shall be taken only after a hearing held by the General Manager or designee,
where the customer has an opportunity to respond to the District’s information or evidence that
the customer has repeatedly violated provisions of this resolution regarding the conservation of
water and that such action is reasonably necessary to assure compliance with this Resolution. The
targets and for all structures constructed since 1989-90 will be set as described in sections 2 and
3.
As determined by the General Manager, any such restricted service may be restored upon
application of the customer made not less than 48 hours after the implementation of the action
restricting service and only upon showing by the customer that the customer is ready, willing and
able to comply with the provisions of this Resolution. Prior to any restoration of service, the
customer shall pay all District or City of Carlsbad (City) charges for any restriction of service
and restoration as provided for in the rules governing water service for the District and City.
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Any willful tampering with or removal of any flow restriction device shall result in
termination of service for a period to be determined by the General Manager.
10. Any customer against whom a penalty is levied pursuant to this section shall have a
right to an appeal, in the first instance to the District’s General Manager or designee with the
right of appeal to the District’s Water Commission, on the merits of the alleged violation, upon
written request of the customer to the District within fifteen days of the date of notification of
violation.
11. Any additional revenue generated by the inclining block rate structure or the
zonservation rebates after deducting the penalty charges imposed by the Authority, shah be
restricted for future water conservation programs, programs to develop additional water sources,
water reclamation or for reserves as the Board deems appropriate.
12. The effective date of this Resolution shall be the beginning of the meter reading cycle
n July (July 15, 1991).
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad Municipal
Nater District held on the 4th day of June, 1991, by the following vote, to wit:
AYES: Board Members Lewis, Ktilchin, Larson and Nygaard
NOES: None
ABSENT: Board Member Stanton
iTTEST:
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iLETHA L. RAUTENKRANZ, Seer tat-y