HomeMy WebLinkAbout1999-07-06; Municipal Water District; 448; CWA Update - Wheeling Legislation & New RatesCARLSBd MUNiClPAL WATER DISTFaCT -AGENDA BILL
AB# W8
MTG. 07/06/99
DEPT. CMWD
TITLE-
-CWA UPDATE: PROPOSED WHEELING
LEGISLATION
AND EVALUATION OF NEW RATE STRUCTURES
RECOMMENDED ACTION:
There is no staff recommendation for this item. This is an informational item only.
In an effort to meet the water supply reliability needs and unique service requirements of its
member agencies and their customers, the County Water Authority has been pursuing the
diversification of its water resources through water transfers. As water transfers have
continued to evolve, the Authority has become engaged in two important issues. These
relate to state-wide wheeling legislation to facilitate water transfers, and an examination of
the Authority’s revenue and rate structure to ensure continued financial stability and
equitable apportionment of costs to member agencies.
The Water Authority has proposed legislative language, through the SB 506 process, that
would amend the current wheeling law.
These amendments have a three-fold purpose. First, they are intended to protect the
wholesale agencies by ensuring that there are fixed revenues to pay for fixed costs.
Second, the amendments are intended to enhance water marketing opportunities by
providing increased flexibility for agency water managers who would be in a position to
enter into water transfer arrangements on terms more flexible than the current “as-
available” criteria would allow. Third, the amendments are intended to resolve issues
raised in the wheeling litigation initiated by Metropolitan Water District by redefining fair
compensation.
As this process continues to evolve, the ongoing examination of the Authority’s revenue
and rate structure has continued. A set of proposed criteria has been developed and
reviewed with member agencies to guide the design of potential rate alternatives for
consideration by the Authority Board. Over the course of the next several months, the
Authority staff will continue to process of developing the data and cost of service analysis
necessary to conduct a detailed evaluation of potential new rate structures.
County Water Authority staff will be making an oral presentation on these issues at
tonight’s Board meeting.
FISCAL IMPACT
This is an informational item only and there is no fiscal impact.
A:\AB - CWA Update on Transfers & Rate Structure.doc