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HomeMy WebLinkAbout1994-09-06; Municipal Water District; 254; Interim Agricultural Water Program & Water RateCARLSBAD - UNICIPAL WATER DISTRICT- AGENDA BILL dv, ./ti-f AB # $.?j (-/ TITLE: Approval of Interim Agricultural Water DEPT. HD. ’ -- MTG. 916194 Program and Establishment of DEPT. = MWD Agricultural Water Rate & CITY ATTY CITY MGR. k RECOMMENDED ACTION: Hold a public hearing and approve Resolution No. a$?& establishing the Interim Agricultural Water Program and agricultural water rate. ITEM EXPLANATION: Program Description In May 1994, the Metropolitan Water District Board of Directors adopted the Interim Agricultural Water Program (Program). The program provides a discount for agricultural water users that replaces the interruptible water discount, which was eliminated on April 1, 1991. The program provides a discount of $137 per acre foot for treated agricultural water supplies. In exchange for this discount, agricultural customers participating in the program could have their water deliveries reduced by up to 30 percent prior to the imposition of mandatory restrictions on all other customers. Additionally, if water shortages increase and mandatory restrictions become necessary, customers in the program will experience greater reductions than all other customers, depending on the severity of the shortage. Metropolitan is using a four-year average to determine each member agency’s allocation of agricultural water, beginning with fiscal year 1989-90. Carlsbad’s maximum annual allotment is 1,830 acre feet of water. Metropolitan has not yet decided what action will be taken if an agency exceeds its limit. As such, the San Diego County Water Authority is waiting to announce potential penalties that it will assess its member agencies who exceed allocations, although a penalty rate or surcharge is currently being considered. The program will be in effect for a period of three years with a detailed evaluation after two years to determine whether to reaffirm, discontinue or modify the program. Agricultural customers wishing to participate in this program must quality under Metropolitan’s Administrative Code definition of agricultural. This means that a customer must have a minimum parcel size of one acre, and it must be utilized exclusively for agricultural purposes. Funding for the Interim Agricultural Water Program will come from Metropolitan’s rate stabilization fund for fiscal year 1994-95. For the following two years, it is expected that Metropolitan will raise its rates on firm delivery water to subsidize the agricultural discount. Program Implementation Carlsbad has approximately 80 agricultural customers who are eligible to participate in the program. Staff has compiled a mailing list of these customers and will mail a letter .- Page 2 of Agenda Bill # 1 to each, explaining the discount and the terms and conditions of the program. Included with this letter will be an application form, asking the customer to provide some basic account information. The letter and application will be written in Spanish as well as English. The discount of $137 per acre foot equates to 31 c per unit, so program customers will be billed at a rate of $1.39 per unit. Since the program is retroactive to May 1, 1994, staff has consulted with the Information Systems Department which can provide us with a listing of the customers and their consumption for the billing periods since May of 1994. Staff will credit customers for 31$ per unit for these periods. The actual discount rate will not go into effect until the July/August billing period. The credits will appear on that billing as well. The approximately eighty customers who are eligible consume about 65,000 units per month during the hot summer months. This equates to just over $20,000 in rebates. Customers participating in the program must continue to do so throughout the duration of the program and may not change their classification status if a drought should occur. During a drought, agricultural customers in the program will be expected to reduce their water consumption by the percentage deemed necessary by Metropolitan and the San Diego County Water Authority. Due to the fact that neither agency has determined yet what the consequences of not meeting the reduction targets will be, staff is recommending that we wait to determine what action the District will take if an agricultural customer exceeds his individual limit until after those two agencies have arrived at a decision. A mechanism is currently in place for an inclining block rate that can be implemented if necessary. ENVIRONMENTAL REVIEW: Section 15273 of the State CEQA Guidelines statutorily exempts the setting of rates, tolls, fares, and charges from environmental review if the increases are not for expansion of the system, which this is not. FISCAL IMPACT: The Interim Agricultural Water Program is a rebate-style program that will not affect District revenues. We will receive the rebate from the San Diego County Water Authority that will then be passed on to the participating agricultural customers. After fiscal year 1994-95, however, the water rate from Metropolitan is expected to increase in order to support this program. This increase will result in a pass-through to Carlsbad customers. EXHIBITS: 1. Resolution No. 882 establishing the Interim Agricultural Water Program and the agricultural water rate. 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ECEIBIT 1 RESOLUTION NO. 362 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF CARLSBAD, CALIFORNIA, ESTABLISHING THE INTERIM AGRICULTURAL WATER PROGRAM AND THE AGRICULTURAL WATER RATE WHEREAS, the Metropolitan Water District of Southern California has adopted an Interim Agricultural Water Program; and WHEREAS, the San Diego County Water Authority Board of Directors has established an Interim Agricultural Water Rate; and WHEREAS, this program allows Metropolitan’s member agencies to certify certain agricultural water deliveries for a discounted water rate, subject to specified conditions; and WHEREAS, the program provides that deliveries of agricultural water certified for the discounted rate are subject to reduced deliveries of up to 30 percent prior to imposing mandatory reduction targets for firm deliveries, and subject to greater reductions to agricultural water deliveries once mandatory reduction targets are imposed for firm deliveries; and WHEREAS, the San Oiego County Water Authority has determined to adopt procedures to provide the opportunity for Authority’s member agencies to participate in the program by certifying certain agricultural deliveries to Metropolitan through the Authority and to establish the terms, conditions and rates to govern the delivery of water under the Program; and WHEREAS, the Carlsbad Municipal Water District has determined to adopt procedures to provide the opportunity for its agrfcultural customers to participate in the program according to the terms and conditions established by the Authority; and NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. That the above recitations are true and correct. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2? That the agricultural water rate for Program participants will be at a discount-of 31 cents per unit less than the potable water rate. 3. That the discount will be effective retroactive to the May 15 - June 15, 1994, billing period. 4. That agricultural customers who choose to participate in the Program must do so for the duration of the Program. 5. That agricultural customers who do not meet their target reductions during water cutbacks, should mandatory reductions be established by Metropolitan and the Authority, will be subject to penalties passed through from the Authority to the Carlsbad Municipal Water District. PASSED, APPROVED AN0 ADOPTED at a special meeting of the Carlsbad Municipal Water District held on the 6th day of SEPTEMBER J 1994, by the following vote to it: AYES: Board Members Lewis, Stanton, Kulchin, Nygaard, Fknila NOES; None ABSENT: None ATTEST: CLAUOE‘A. LEWIS, President (SEW PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALlFORNlA County of San Oiego I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. t am the principal clerk of the printer of Blade-Citizen a newspaper of general circulation, printed and published daily in the City of Oceanside and qualified for the City of Oceanside and the North County Judicial district with substantial circulation in Bonsall, Fallbrook, Leucadia, Encinitas, Cardiff, Vista and Car&bad, County of San Oiego, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of San Diego, State of California, under the date of June 30,1989, case number 171349; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: August 26, 1994 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Oceanside,Califomia, this 2 6 of August, 1994 day / ! _c// i /&&.&) k4J. ----we ,;,,,,,,,,,,,,,,,,,,,, 7 3 -w----se------e- Signat BLADE-CITIZEN Legal Advertising 1722 South Hill Street P.0. Box 90 Oceanside, CA 92054 (619) 433-7333 This space is for the County Clerk’s Filing Stamp Proof of Publication of Notice of Public Hearing ---------a NOTICE OF PUBLIC HEARING APPROVAL OF INTERIM AGRICULTURAL PROGRAM AND ESTABLISHMENT OF AGRICULTURAL WATER RATE NOTICE IS HEREBY GIVEN that the Board of Directors of the Carlsbad Municipal Water District will hold a public hearing at the City Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m., on Tuesday, September 6, 1994, to consider establishing the Interim Agricultural Water Program and Agricultural Water Rate. The discount is part of the Interim Agricultural Water Program adopted by the Metropolitan Water District and is retroactive to May 1, 1994. If you have any questions regarding this matter, please call the Water District office at 438-2722. If you challenge the establishment of the Interim Agricultural Water Program and/or Agricultural Water Rate in court, you may be limited to raising only those issues raised by your or someone else at the public hearing described in this notice, or in written correspondence delivered to the City of Carlsbad City Clerk’s Office at, or prior to, the public hearing. APPLICANT: Carlsbad Municipal Water District Carlsbad Municipal Water District Board of Directors Legal: 40276 August 26,1994 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of San Oiego I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am the principal clerk of the printer of Blade-Citizen a newspaper of general circulation, printed and pubiished daily in the City of Oceanside and qualified for the City of Oceanside and the North County Judicial district with substantial circulation in Bonsall, Fallbrook, Leucadia. Encinitas, Cardiff, Vista and Carlsbad, County of San Diego, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of San Diego, State of California. under the date of June 30.1989, case number 171349; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: August 26, I.994 I certify (or declare) under penalty of perjury that the foregoing is true and correct. ifated at O$@@&~aI&~@, this 2 6 day BLADE-CITIZEN Legal Advertising 1722 South Hill Street P.O. Box 90 Oceanside, CA 92054 (619) 433-7333 This space is for the County Clerk's Fifing Stamp Proof of Publication of Notice of .Public Hearing --------. iOWE OF PUBLIC HEARING APPROVAL OF INTERIM AGRICULTURAL PROGRAM AN0 ESTABlISHWENT OF AGRICULTURAL WATER RATE NOTICE IS HEREBY GIVEN that the Board of Directors of the Carlsbad Municipal Water District will hold a public hearing at the City Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m., on Tuesday, September 6, 1994, to consider establishing the Interim Agricultural Water Program and Agricultural Water Rate. The discount is part of the Interim Agricultural Water Program adopted by the Metropolitan Water District and is retroactive to May 1,1994. If you have any questions regarding this matter, please call the Water District office at 436-2722. If you challenge the establishment of the Interim Agricultural Water Program and/or Agricultural Water Rate in court, you may be limited to raising only those issues raised by your or someone else at the public hearing described in this notice, or in written correspondence delivered to the City of Carlsbad City Clerk’s Office at, or prior to, the public hearing. APPLICANT: Carlsbad Municipal Water District Carlsbad Municipal Water District Board of Directors Legal: 40276 August 26,1994 NOTICE OF PUBLIC HEARING APPROVAL OF INTERIM AGRICULTURAL PROGRAM AND ESTABLISHMENT OF AGRICULTURAL WATER RATE NOTICE IS HEREBY GIVEN that the Board of Directors of the Carlsbad Municipal Water District will hold a public hearing at the City Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m., on Tuesday, September 6, 1994, to consider establishing the Interim Agricultural Water Program and Agricultural Water Rate. The discount is part of the Interim Agricultural Water Program adopted by the Metropolitan Water District and is retroactive to May 1, 1994. If you have any questions regarding this matter, please call the Water District office at 438-2722. If you challenge the establishment of the Interim Agricultural Water Program and/or Agricultural Water Rate in court, you may be limited to raising only those issues raised by you or someone else at the public hearing described in this notice, or in written correspondence delivered to the City of Carlsbad City Clerk's Office at, or prior to, the public hearing. APPLICANT: Carlsbad Municipal Water District PUBLISH: August 26, 1994 CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS (FOR AGRICULTURAL WATER RATE) NOTICE OF PUBLIC HEARING ESTABLISHING AGRICULTURAL WATER RATE NOTICE IS HEREBY GIVEN that the Board of Directors of the Cansbad Municipal Water District (District) will be holding a public hearing at the Carlsbad City Council ,, , Chambers+290 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m. on Tuesday, Ii August 16, 199qto consider establishing an agricultural water rate. The discount is -part of the Interim Agricultural Water Program adopted by the Metropolitan Water District and is retroactive to May 1, 1994. If you have questions regarding this matter, please call the District office at 438-2722. If you challenge the proposed action mentioned above in court, you may be limited to raising only those issues raised by you or someone else at the public hearing described in this notice, or delivered to the City of Carlsbad’s City Clerk office at or prior to the public hearing. APPLICANT: Carlsbad Municipal Water District BOARD OF DIRECTORS, CARLSBAD MUNICIPAL WATER DISTRICT August 4,1994 TO: CITY CLERK’S OFFICE FROM: Administrative Manager, CMWD PUBLIC HEARING REQUEST Attached are the materials necessary for you to notice the establishment of an agricultural water rate for a public hearing before the Board of Directors. Please notice the item for the Board meeting of v. , sqe. c 1 w3q Thank you. Assistant City Manager Date