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HomeMy WebLinkAboutAGENDA REPORT 1993 0407 CC REG ITEM 11EITEM//. E . hf30 1 :rg AGENDA REPORT CITY OF MOORPARK TO: Honorable City Council FROM: Mary K. Lindley, Assistant to the City Manager. DATE: April 2, 1993 SUBJECT: Consider Proposed Water Rate Increase for the Metropolitan Water District Background The Southern California Metropolitan Water District (MWD) is proposing implementing Water Standby Charges for Fiscal Year 1993/94. The purpose of the charge, in combination with an Availability of Service charge, is to raise $50 million for capital projects and programs. The proposed water standby charge would not exceed $15 per acre of land, or per parcel of land if less than an acre, to which water is made available. The unit charge would consist of a base charge of $5 plus a variable amount, not to exceed $10 per acre, to be determined by the volume of historical water delivered by MWD to the entire service area. For FY 1993/94, the total charge on parcels (one acre or less) within Calleguas' service area is proposed to be $9.58 per parcel. MWD has indicated that revenues generated by increased water rates and the standby charge would be used to fund projects and programs designed to help restore reliable water supplies to Southern California. Among the new facilities to be funded by the increased revenues is the Domenigoni Valley reservoir project in southwestern Riverside County, at the cost of approximately $1.5 billion. Once completed, the 800,000 acre -foot facility will nearly double Southern California's surface water storage capacity. Other proposed projects include the construction of three major water trunk lines that will deliver imported water to major storage facilities, the development of a test unit demonstrating the feasibility of seawater desalination, and groundwater recovery MWD Standby Charge April 1, 1993 Page 2 projects to assure water supply reliability. Projects in Ventura County to be funded, either wholly or in part, by MWD's standby charges include a planned second major water feeder pipeline into Ventura County and the construction of a reclaimed water system in Oak Park and the North Ranch area of Thousand Oaks. The equity of the proposed Water Standby Charge is suspect. It favors those member agencies which are composed of large lot developments versus those areas which have many small parcels. Also, the variable portion of the charge is in proportion to the historical water delivered to member agencies and the number of parcels in the member agency. It does not necessarily reflect the actual or planned water use by each acre within the member agency. For example, if an undeveloped piece of property uses little or no water, it still will pay the same rate as a golf course which uses a much larger quantity of water. A similar argument can be made for residential, parks and commercial parcels. The authority for MWD's proposed Water Standby Charge is provided for in the California Water Code Section 55501.5 and was adopted to allow waterworks districts to recover the cost of maintaining water facilities which are available to properties whether or not they are being used. In order for the Water Standby Charge to be assessed, it must be approved after holding a public hearing. If MWD receives written protests representing 15% of the parcels subject to the charge, the proposed charge is subject to a vote by the customers within MWD's service area. If MWD receives written protests representing 40% of the parcels subject to the charge, the charge will be abandoned for the year. On March 29, the Simi Valley Council directed the County Waterworks District No. 8 to send a letter to MWD opposing the proposed standby charge for fiscal year 1993/94. Recommendation Staff recommends that the Council direct the Mayor to send a letter to the Municipal Water District expressing the City's opposition to the proposed Water Standby Charge.