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HomeMy WebLinkAbout2008-04-15; Municipal Water District; 654; Receive a presentation on Water supplies and rates^/ CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL f iiM AB# 654 MTG. 4/15/08 DEPT. PW-M&O RECEIVE A PRESENTATION UPDATE ON WATER SUPPLIES AND WATER RATES DEPT. HEAD }j$0 / o y*A CITYATTY. /f^fe -L_ I^L^"^ CITY MGR. (OCA— - RECOMMENDED ACTION: Receive a presentation on current water supplies and water rates. ITEM EXPLANATION: This informational report provides an update to current water supply conditions in the Colorado Basin, California and the San Diego region. The report will also discuss existing and potential water supply cutbacks, as well as future rate increases. ENVIRONMENTAL IMPACT: A growing list of species listed as threatened under the Endangered Species Act, have been impacted by State Water Project pumping. U.S. District Judge Wanger has ordered the reduction of pumping by the State Water Project and/or the release of more water upstream of the State Water Project pumps to establish temporary guidelines for the protection of the endangered species. These endangered species are found in the Sacramento-San Joaquin River Delta in Northern California and the actions related to the reduction in State Water Project pumping do not have a direct local impact for Carlsbad. FISCAL IMPACT: The current mandate by the Metropolitan Water District related to agriculture water cutback will have impacts on water revenues. In conjunction with winter rainfall, the full impact is being evaluated. Additionally, existing and pending rate increases from the Metropolitan Water District and the San Diego County Water Authority are being evaluated for impacts on Carlsbad Municipal Water District customers. Staff will monitor and analyze these factors, and other potential scenarios, to determine financial impacts and the need for rate increases at the District. EXHIBITS: NONE DEPARTMENT CONTACT: Mark Stone 760-438-2722 mston@ci.carlsbad.ca.us FOR C/7Y CLERKS USE ONLY COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D Dnnn CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETU RN ED TO STAFF D OTHER - SEE MINUTES D Board received tbe presentation (See Minutes for Details.) Carlsbad Municipal Water DistrictWater Supply and Water Rate UpdateCarlsbad Municipal Water DistrictBoard of DirectorsApril 15, 2008Mark Stone, General Manager Agenda„Water Supply Conditions…Colorado River …California„Conservation Efforts…Focus Areas„Long-Range Planning…Water Supply„Community Engagement & Support„Water Rate Impacts Colorado River WatershedNovember 28, 2007March 14, 2008 Colorado River„2007 was 8thyear of historic drought…MWD’s Colorado River Aqueduct half-full…Reservoirs are at <50%„2008 Winter to–date promising…March and April storms are critical California Conditions20072008Source: U.S. Drought Monitor California Snow Pack ConditionSource: DWR California Data Exchange Center. March 17, 2008.Snowpack Water ContentRegion % Average to DateNorthern Sierra 106Central Sierra 87 Southern Sierra 99Statewide 95 State Water Project„2007 was historic dry year throughout California„State Water Project challenges…Project was not completed as planned…Only 5.8 maf of storage„Less than 1-1/2 years of protection…Faces significant environmental, regulatory and judicial challenges„Judge Wanger Delta Smelt pumping restrictions in effect in 2008„Longer-term pumping restrictions expected…2008 Outlook„35% water supply allocation for spring 2008„Allocation could be raised more…But deliveries will be reduced by court-imposing pumping restrictions. So, are we out of the woods?„No!…MWD still likely to receive less imported supplies in 2008 than in 2007. 2009???…Actual supply amount depends upon:„Rain/snow between now and spring 2008„How pumping restrictions affect deliveries…MWD and Water Authority will increase reliance on storage, spot water transfers, and conservation…MWD Mandated Cutbacks to Interim Agricultural Water Program (IAWP) Conservation Efforts„Key Focus Areas…Extraordinary Measures - 20 Gallon Challenge…Enhanced Outreach Program…Landscape Irrigation…Personal Behaviors Long-Range Planning„Water Supply Sources for the Future…San Diego County Water Authority…Carlsbad Municipal Water District Diversifying San Diego County’s Water Supply Ratio19912008 Diversifying CMWD’sWater Supply RatioCWA: 100%CWA: 87%Conservation: 2%Recycled Water: 11%199120082020Local Seawater Desalination: 51%Conservation: 4%Recycled Water: 25%CWA: 20%Drought Resistant Supply = 0%Drought Resistant Supply = 13%Drought Resistant Supply = 90% Community Engagement and Support„Advocate for Delta Improvements…Regional Benefit…Water Conveyance Fix…State bond measure„Implement Commercial & Industrial Conservation Efforts…Walk the talk„Pursue Local Supply & Infrastructure Efforts Water Rates Connected to Water SupplyMetropolitan Water District (MWD)„MWD March Board Meeting (evaluated 3 rate increase options)„MWD Board approved a 14.3% increase…Approx. 9.5% on Commodity, Fixed Charges & CIP…$25 per acre foot charge for Drought Water Purchases„IAWP Cutback Impacting Revenues„Using Reserves and/or Rate Stabilization Fund to smooth the Rate Increases Water Rates Connected to Water SupplySan Diego County Water Authority„Large CIP Expenditures„Focus on Improving Reliability„Emergency Storage„Increased Commodity Costs„8.8%-12.3% (including MWD)„IAWP Cutback Impacting Revenues„Using Reserves and/or Rate Stabilization Fund to smooth the Rate Increases Water Rates Connected to Water SupplyCarlsbad Municipal Water District„MWD & CWA increases must be absorbed„System has grown by nearly 47%„Added a Robust Recycled Water System„IAWP Cutback Impacting Revenues„CMWD Evaluating Scenarios Related to MWD Existing and CWA Potential Increases„Been using Revenues Ourselves Summary„Water Supplies are Limited and Becoming Unreliable (i.e. Cutbacks)„Cost of Water is Ever Increasing„Increased Competition for Transfers and Spot Purchases„Need to Reduce Dependency on Imported Supplies„Must Continue Conservation Efforts„CMWD to prepare additional update on Supplies and Potential Rate Increases Questions?