HomeMy WebLinkAbout1996-08-13; Municipal Water District; 341; Elimination of "New Demand Charge".C
CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL
9B# 3j-i 1 KITLE:
MTG. 08/13/98 ELIMINATION OF “NEW DEMAND CHARGE” AS
PART OF THE WATER AND RECLAIMED WATER ‘lTY ATTYm
DEPT. CMWD CONNECTION FEE CITY MGR. s
RECOMMENDED ACTION:
Adopt Resolution No. 01s q eliminating the New Demand Charge as part of the Water and
Reclaimed Water G,nnection Fee.
ITEM EXPLANATKM:
As part of the Rate Study Recommendations, the Board adopted a new water and reclaimed
water connection fee structure for new water customers. That structure now relies on meter
size rather than equivalent dwelling units (EDU’s) to calculate the connection fee. As part of
that new fee a New Demand Charge (NDC) was to be included. This NDC was a charge
required by the Metropolitan Water District and was a pass through to our new customers.
The Metropolitan Water District recently approved a Rate Refinement Study that was
conducted by a committee made up of various staff of member agencies of Metropolitan and
included staff of Metropolitan and the County Water Authority. A summary of the study’s
recommendations is as follows:
Provide rate structure certainty for the next five years.
Limit treated water rate increases to 1.2% in 1997; 1.5% in 1998 and 1999; and 2% in 2000
and 2001.
Limit the increase of Met’s annual Ready-To-Serve Charge (RTS) to $8 million over the next
five years.
Suspend the New Demand Charge (NDC) and identify an alternate means of
assessing growth, such as a connection fee.
Maintain the current agricultural discount.
Reduce season4 storage discount over a five year period.
Undertake a co~llprehensive cost-containment effort.
Set a specific timetable for resolving other outstanding issues such as a wheeling policy,
analysis of the CWA’s water transfer proposal and development of a long term drought
management plan.
These recommendations were recently adopted by the Metropolitan Board of Directors
including the suspension of the NDC. Because of this Metropolitan action, the Carlsbad
Municipal Water District can now reduce its water connection fees by excluding the NDC from
the calculation of those fees.
Page 2 of Agenda Bi No. 3 Y 1
FISCAL IMPACT:
Because the New Demand Charge (NDC) was to be forwarded to Metropolitan when collected
by Carlsbad Municipal Water District, the elimination of this fee will have no fiscal impact on
the District. Any fee collected in the interim will be refunded to the customer.
EXHIBITS:
1. Resolution No. 9 5 Y eliminating the New Demand Charge from the Water and
Reclaimed Water Connection Fees.
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RESOLUTION NO. 954
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD MUNICIPAL WATER DISTRICT, CALIFORNIA
ELIMINATING THE NEW DEMAND CHARGE FROM THE
WATER AND RECLAIMED WATER CONNECTION FEES
WHEREAS, on June 4, 1996, as part of the Rate Study Recommendations, the
Board adopted a new water and reclaimed water connection fee structure for new water
customers; and
WHEREAS, the new fee structure included a New Demand Charge (NDC)
required by the Metropolitan Water District to be passed through to new Carlsbad
Municipal Water District (CMWD) customers; and
WHEREAS, the Metropolitan Water District recently approved a Rate
Refinement Study that was conducted by various staff of member agencies including
the Metropolitan Water District and the San Diago County Water Authority; and
WHEREAS, the Rate Refinement Study included a recommendation to suspend
the New Demand Charge and identify an alternative means of assessing growth, such
as a connection fee; and
WHEREAS, the recommendations of the Rate Refinement Study were adopted
by the Metropolitan Board of Directors including the suspension of the New Demand
Charge; and
WHEREAS, because of the action of the Metropolitan Board of Directors, the
Carlsbad Municipal Water District can now reduce its water and reclaimed water
connection fees by eliminating the New Demand Charge from the calculation of those
fees.
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NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the
Carlsbad Municipal Water District, California as follows:
1. That the above recitations are true and correct.
2. That the Board hereby approves and adopts revisions to the water
and reclaimed water connection fees in accordance with attached Exhibit A (“Water
and Reclaimed Water Connection Fees”).
PASSED, APPROVED AND ADOPTED at the regular meeting of the Carlsbad
Municipal Water District held on the 13th day of August 1996 , by the following
vote to wit:
AyES: Board Members Lewis, Nygaard, Kulchin, Hall and Finnila
NOES: None
ABSENT: None
ATTEST:
&L k: 6g.t ft&&A
ALETHA L. RAUTENKRANZ, Set
(SEAL)
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