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Home My WebLink About1993-03-24; Municipal Water District; 0324-04; Report on Proposed Water Rates for FY 1993-94z 0 + 0 a d 0 z 3 8 AB # 013.4-4 DEPT. w7 MTG, 03/24/93 CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL TITLE: REPORT ON PROPOSED WATER RATES FOR FISCAL CITY ATTY YEAR 1993 - 1994 CITY MGR. RECOMMENDED ACTION: There is no staff recommendation at this time. ITEM EXPLANATION: Staff will be making an oral presentation on recent action taken by MET and CWA to increase water rates beginning on July 1, 1993. Staff will also review status of rates for reclaimed water and wastewater services. JAY MALINOWSKI BO6 GOMPERZ BOB MUlR ROBHUCHS ..- OFFICE (213) 250-6460 OFFICE (213) 250-6866 OFFICE (213) 250-6935 OFFICE 1213) 250-6450 Release: on receipt March 9, 1993 METROPOLITAN BOARD APPROVES WHOLESALE WATER RATE INCREASE Metropolitan Water District's board of directors today voted $49- to the wholesale price of an acre-foot July 1. This increase, p! ** ,816 .u, *-..La! Lr+w?? x-6% .u1 " **ry '*by" " e" - - - trFa-*+ent surcharge, will add about $1.30 per month to the typical household water bill, provided that the increases are passed through by retail agencies. to restore reliable water supplies and upgrade water quality for Southern California,If said Metropolitan General Manager Carl Boronkay. The district now sells untreated water to its member agencies for $269 an acre-foot and treated water for $322. An acre-foot is nearly 326,000 gallons, about the amount normally used by two typical families in and around their homes in one year. "The increase in the rate will pay for projects and programs "Six years of drought demonstrated the need for improved water distribution systems serving Metropolitan's 5,200-square-mile service area," Boronkay said. "Our water reliability plan will include new storage and supply facilities, agricultural water purchases and a comprehensive program of conservation and reclamation projects "The board also adopted the objective that new development in the Southland pay a greater share of facility costs,t8 he said. expect this to be effective in a year after extensive public input.I1 the Domenigoni Valley reservoir project in southwestern Riverside County. Once completed, the 800,000-acre-foot facility will nearly double Southern California's surface water storage capacity. F. Wiley Horne, MWD assistant general manager, stated that "We Among the new facilities to be funded by the rate increase is more . . . . -2- the rate increase proposal was developed after the district took an intensive look at the time and need for various projects. million in capital construction projects are being deferred and more than $186 million in budget cuts are planned as part of Metropolitan's three-year financial package through October 1994. "Metropolitan is sensitive toward the impact the nation's current economic climate is having on Southern California's economy. However, the negative side of not improving our water supply reliability is too great to ignore any longer," Nome said. "Thousands of Southland jobs would be lost if supplies to water-sensitive industries such as computer, electronic components and aerospace firms, were significantly cut back on a continuing basis," he added. untreated water will be $318 an acre-foot. About $600 When the rate increase goes into effect in July, the price of Drinking water treated at MWD's five water treatment facilities will cost $385 an acre-foot. The $14 per acre-foot treatment surcharge will be used to improve existing treatment facilities and processes to provide even better water quality so Metropolitan can meet new, more stringent federal drinking water regulations. Through its 27 member public agencies, Metropolitan provides nearly 60 percent of the water used by more than 15 million Southern Californians in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. its Colorado River Aqueduct, and from northern California as a contracting agency for State Water project supplies. ##t The district imports water from the Colorade River, through 'SEST BY:SDCWA : 3-11-33 : 7:lOPY : San Dtego County Wafer Authority A Public My 431 1601;# 21 4 3211 fifth Avenue Son Ore&, California 92103-Sn8 (619) 297-3238 FAX (6'19) 197-0511 Contact8 Janice Collins 297-3399 Ext. 222 541-1163, home Mark Stadhr 297-3399 Ext, 220 272-4424, honw or March 11, 1993 ., The San Diego County Water Authority Baard Thursday acted to raise water rates to help pay for improvements needed to provide the area with a relia water. Development &f the Authority's Capital Improvement ~ Capital Iwrovement Program is f~~ded ky standby charge and plans for funding it -- began in 1987. The $72 developed and Und8VelOped propaftiest connect ion fee8 on development; and revenue bond80 repaid through the Authority's sale of water to mar agencies. 'The Authority recognizes the immct of rate increases on the comunity, said Lester A. Snow, the Authority's general manager. We try to keep expenses -- and rate increaser -- at the lowest level that w5ll still allow us to make the improvements necessary in the water-supply system. (more) mmmmms . % * .82!!2?.mJ#ul* ?e!wZ!E! -.=- - ---.tr :Z?w:* -om-dm-rcl.r9bbp *QmLL - whcI..r *hdmbr .ryr -=- noluLyrncl *-vIrvrLrm cwnn - Y$!! -?*9 'Irhm W'YTED ON @(:*Clef PrW? The Authority's board of directors increased the price of tho untreated water it $ell8 to its member agenciea from $SS per acre- foot to $70 per acre-foot. monthly household water bill. This would add 43 cents to the typical The increase takes effect July 1. In addition, the bard of director8 of the Metropolitan Water Biatrict -0 which suppliaa imported water to ita member aqeneies, rate from $53 to $67 per acre-foot to offset the costs of mting highel: water Quality standards. But the &d.fncteas+ tho rate it charges member agench for: untreated water by $10 les8 than .* ..: originally pr-sed. $269 to $318, instead of the $328 originally being considerad. Ewb'8 untreated water rate Will dm9 from 'The Authority's six representatives on MWD's Board of . Directors played a big part in getting the amount of the propaad rate increase reduced, Snow said. 'bur representatives knew WD's proposed increase would bo a burden on many 8an Diego County residenta. The Authority's rclpresentativea Sought' to keep the increases at the lowest level that would still make WDr8 capital _- projects possible. e .- 1 -a-, MWD' 8 iacre6e~ dll add betwekn 81 .So &d $2 to t& &pica1 L ~ I- monthly household water bill in San Diego'County. Additional rate increases projected by MWD and the Authority in coming years could raise the average monthly Shn Diego County residential water bill by a total OC about $10 by the year 2000. b €- I. ' (mora} .. .. . .. * SlN BY:SDCRA ENG I hER I hY3-Q 431 160M 41 4 The typical household in this 8emi-8tid county ia billed approximately $20 a month for water -- an ambunt below the national average. MWb's rates account for 45 percent of the typical water bill; retail water agencies, 43 percent; and the Authority, 12 percent. The Authority's rate increase will help pay for many different Capital Imprbvemnt Program projects. Pipeline projects are a key part of the Capital Improvement Program. New pipelines are planned that will bring more water into the county. Pipelines are being built to convey water to area8 that now depend on a single pipeline. These projects will mke the water-delivery system capable of carrying more water countywide, and will allow zepairs to be rnade on existing pipes without disrupting watet deliveries. Another important part of the CIP are projects to prevent pipe corrosion or damage and replace pipes when necessary. Finally, the Authority is exploring several other projects. These include building2 a water-treatment plant, a desalination plant that could turn seawater into drinking water, and one or mre emergency water storage facilities that could help meet tho arta8s water needs in case of a severe drought or earthmake. mOs capital program includes several projects that will directly benefit San Diego County by supplying the area with more, higher-quality water and . making more water available during droughts and emergencies. The San Diego County Water Authority, a public agency, works through its member agencies to provide imported water to 2.5 million San Diego County residents.