167

Water Supply for the

Monterey Peninsula
June 2012
Things we've done, but no one acknowledges ...
Peralta Well expansion - late 1980s (900 AFY)
Reclamation Project financing - 1992 (530 AFY)
Aquifer Storage & Recovery- 2000s (1 000 AFY
and growing)
Things we tried to do, but the voters said "No" ...
Desalination Project - 1993 (3400 AFY)
New Los Padres Dam - 1995 (24,000 AFY)
j ..
2
1
168
Things we had to do by legal mandate ...
Carmel River mitigation due to Cal-Am pumping -
the result of two CEQA rulings, one State Order
95-10, and the ASR operating permit.
Things we do that nobody likes ...
Conservation
Permitting
But it has saved the Peninsula another 3000 -
4000 AF water project.
Cal-Am's "Monterey Peninsula Water Supply
Project" filed April 23, 2012
Desalination (5,500 AF)
Aquifer Storage and Recovery (1,300 AF)
Groundwater Replenishment (3,500 AF)
3
4
2
169
3,500 AF
Complete by 2016
Public Component
3-Party MOU (MRWPCA, MPWMD, Cal-Am)
}> Water Purchase Agt
,.. Storage & Recovery Agt
,.. Wholesale Water Sales Agt
,.. District 50% pay-as-you-go funding match
,.. District to provide long-term financing
,.. MOU is contingent upon District's new funding source
Double ASR Capacity
Complete by 2016
Public and Private Components
Work jointly with Cal-Am
Additional MPWMD Capital Costs Next 2-3 Years
District will continue to develop future ASR
opportunities
5
6
3
170
5,500 AF
Completion date depends on Key Issues:
);.> Requirement and timeline for a new CEQA process or
not
);.> Additional technical assessment and scoping of project
alternatives
);.> Ease in permitting
);.> Water rights
);.> Cost of financing and operations
);.> Litigation risk
Is it a Public Path or a Private Path?
Can MPWMD assist with lower cost financing
and/or state revolving fund loans?
7
4
171
User Fee collected since 1983
Related to the delivery of water
CPUC has interrupted collection mechanism
(Cal-Am bill)
Was budgeted at $3.7 million last 3 years
Started new collection mechanism last October
Shift in focus to Water Supply in January
FY 2013 FY 2014
Groundwater Replenishment $1 ,036,000 $1,469,200
Aquifer Storage & Recovery 1,325,756 862,370
Desalination or Table 13 Rights 250,000 200,000
ASR Expansion 150,000 500,000
Staff, Supplies, Services - Water 1,200,000 1,200,000
Total $3,961 ,756 $4,231 ,570
9
5
172
Water Supply Projects are additive to existing
budget
Reduce District expenditures for other activities,
where possible w/o disrupting legal mandates
Seek to have Cal-Am directly pay a greater share
of mitigation costs (at least $1.6 million/year)
Doing so allows 100% of new revenue source to
be used on new water supply costs
$3.7 Million
~
43,500 Connections Based on Standard
Water Use by Type of Property and Meter
e.g. Single-Family (small) Commercial
Single Family (medium) Industrial
Single Family (large) Golf Course
Multi-Family Publ ic Agencies
Other Categories
12
6
173
Golf Course Non-Revenue I
2% 4% Unaccounted For
Rate design allocates revenue
requirement in the same manner
Annual
WaterUse -
-
Fee
Meter Fee
Based on
Meter Size
Categories:
+ [
Water
Usage Fee X #of ]
Per Unit Units
5 Single Family Residential
1 Multifamily
45 Commercial
13
14
7
174
Annual Annual Total Monthly
Meter Fee Usage Annual Fee Amount
Fee
Medium house (1,200 to 2,000 sq ft) $16.84 $38.50 $55.34 Less than $5
Large House (over 4,400 sq ft) $19.36 $154.00 $173.36 $14.45
10-Unlt Apartment Building $101.00 $209.00 $310.00 $2.58 per
unit
Office for up to 10 people $101.00 $52.80 $152.80 $12.73
Fee is limited to Water Supply
Annual review that fee is still required for
the purpose it was established
Sunset provision
16
8
175
Need Stable and Secure Mechanism
Will Allow Public Financing
Attention to Cost and Rate of Collection
17
Assessor's
Office 3"' Party In-House
Semi-Annual $21,000 $70,000 $179,000
Bi-Monthly nla $207,000 $311 ,000
Collection Rate 100% 60-70% 60-70%
Security Very Secure Low* Low*
Example CAWD,CSIP MRWPCA
* Low Security means a period of 2-3 years of collection history
required before use for financing; Could result in lower debt capacity.
18
9
176
Not a tax - a fee for water service
For the benefit of existing customers
By law, a vote is not required
Following the Prop 218 process dutifully- will
prevail legal challenge
Exact same process as CAWD, MRWPCA,
MCWD, others throughout CA
April16- District Board adopted Rate Study
First reading of proposed Rate Ordinance
Board approved Prop 218 Hearing Notice
Board approved Prop 218 "Rules of the Road"
Board reviewed alternative collection methods
Mail Prop 218 Hearing Notices
Prop 218 protests calculated
Board holds Prop 218 Hearing
19
Second reading of proposed Rate Ordinance (adopt)
Approve Resolution for collection method
Approve CEQA waiver
Adopt annual budget
20
10