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[Water_news] 5. DWR'S CALIFORNIA WATER NEWS: AGENCIES, PROGRAMS, PEOPLE - 8/10/07

Department of Water Resources

California Water News

A daily compilation of significant news articles and comment

 

August 10, 2007

 

5. Agencies, Programs, People

 

WATER SUPPLY PLANNING:

Water woes may follow into next year; Drought conditions could double AV residents' bills - Antelope Valley Press

 

FEE INCREASES:

Water Rate Hike Ahead Unless … - Gilroy Dispatch

 

 

WATER SUPPLY PLANNING:

Water woes may follow into next year; Drought conditions could double AV residents' bills

Antelope Valley Press – 8/9/07

By Alisha Semchuck, staff writer

 

PALMDALE - Monthly water bills possibly could double for Antelope Valley households in 2008 if drought conditions persist in California and the State Water Project cuts its allocations, according to water experts.

 

The price for importing water largely will depend on whether it can be purchased from rice farmers north of the Sacramento-San Joaquin River Delta or from water districts that have stored water south of the Delta, said Russ Fuller, general manager for the Antelope Valley-East Kern Water Agency.

 

AVEK is a water wholesaler that supplies farmers and water retailers like Quartz Hill Water District and Los Angeles County Waterworks District 40.

 

"If winter '07-08 turns out as dry as '06-07, we're looking at severe cuts," Fuller said Tuesday night at a special agency meeting.

 

If drought conditions persist, the state Department of Water Resources will be forced to cut water allocations delivered through the California Aqueduct to even less than the 60% allotted to agencies like AVEK for 2007.

 

The drought was only one part of the dynamic that contributed to this year's situation, as judges also ordered aqueduct pumps shut down to save an indigenous fish called the delta smelt. Environmentalists blamed the pumps for smelt deaths, and the judges agreed.

 

"Things do not look good as far as the water supply goes for '07-08," Fuller said.

 

The 60% allocation for 2007 amounts to 84,000 acre-feet, while a total of 77,419 acre-feet of water was ordered by the agency's customers - agricultural plus municipal and industrial users, said AVEK engineer Michael Flood. Actual customer use through the end of June reached 34,662 acre-feet.

 

An acre-foot equals 328,851 gallons.

 

While the agency could see a surplus of roughly 6,500 acre-feet this year, the agency doesn't have a place to store water it does not use. Flood said AVEK could possibly "carry over" its excess 2007 allotment to 2008, if state officials allow it to do so.

 

If the Department of Water Resources cuts the allocation to 55% next year, that would be sufficient to "cover all the orders," Flood said.

 

While a decrease from 60% allocation to 55% won't hinder any of the Valley's water purveyors, if the allocation drops to 28% - a real possibility - the Valley is in trouble, officials said. If the department drops the allotment to 48%, Flood said, AVEK would "have to do some sort of allocation" - which would mean limiting the amount of water provided to customers. At 28%, that's little more than half the water the agency needs.

 

That's when water costs skyrocket.

 

Two types of short-term programs are available for supplemental water in 2008, Fuller said.

 

Both will cause the price of water to rise, but one will reach deeper into consumers' pockets than the other.

 

The North-of-the-Delta program, called the 2008 Dry Year Purchase Program, involves an agreement with rice farmers who essentially would sell their agricultural water rather than grow their crop that year.

 

They would charge somewhere between $100 and $125 an acre-foot.

 

That would be on top of the agency's existing price of roughly $330 an acre-foot. But water from Northern California must travel through the Delta, where there's a loss factor of 15%, Fuller said. That would drive the cost up an additional 15%.

 

There's one catch with that plan, according to Fuller. The rice farmers "want 100% of their payment by March 1. If it starts raining like crazy, we have to pay that money anyway. It's like an insurance policy. In years past, this worked well. The problem this year (is) we may not be able to move that water" across the delta, he said. "It's an extra gamble."

 

Working with the rice farmers could mean a possible 25% hike in the water bill, but there's always the risk of paying but not getting any water.

 

A surer bet, which would be more expensive, is the short-term program known as the South-of-the-Delta transfer program, which provides water on a one-time basis from water districts that store water in hopes of selling it in dry years.

 

"Because this water does not travel through the San Joaquin Delta region, it is expected to be more readily available during peak summer months," Fuller said.

 

The price will "range between $300 and $600 an acre-foot. Those numbers are already out there this year," Fuller said. "All those figures are on top of the normal water rates."

 

AVEK's $330 an acre-foot wholesale charge will rise to $930 an acre-foot, plus some incidental costs that drive the figure up to $1,000.

 

Customers of retailers like Quartz Hill Water District or L.A. County Waterworks District 40 will pay the price for that service. Water purveyors estimate the average household of four uses one acre-foot of water each year.

 

A typical customer in the Quartz Hill Water District uses 293,265 gallons of water a year, slightly less than one acre-foot, according to Julie Bossin, an administrative supervisor for that agency.

 

The bill for that level of water use currently comes to $43.83 a month. An extra $600 per acre-foot would add about $45 to the monthly bill.

 

The rate hike is "something we're all going to be faced with because we're all consumers," Bossin said.

 

"It's expensive, but we live in the desert," Fuller said.

 

Fuller said these programs must be in place by Jan. 1 - so the agency must decide either to gamble with the North-of-the-Delta plan or to pay the price for going south.

 

"We've already turned in paperwork saying we're interested in both," Fuller said.

 

At the regular board meeting Tuesday night, agency officials will discuss the issue further and listen to customer input.

 

Officials are planning a public hearing to set water rates for Oct. 9.

 

"There will be deadline dates" to buy into either of the short-term water programs, Fuller said. "If we don't get in by these deadline dates, the cost will go up and the possibility of getting what we need will go down." #

http://avpress.com/n/09/0809_s2.hts

 

 

FEE INCREASES:

Water Rate Hike Ahead Unless …

Gilroy Dispatch – 8/10/07

By Chris Bone, staff writer

 

Gilroy - Water rates have risen steadily since 2001, and residents have had to hold their tongues, but no more thanks to the California Supreme Court.

 

The high court ruled in July 2006 that land owners have the right to protest any increases in "property-related fees" that include water, sewer and garbage rates. These rates were previously exempt from public outcry since cities had cast them as necessary public health matters, according to Jolie Houston, Gilroy's assistant attorney.

 

"This year we're basically complying with Bighorn," Houston said, referring to the court's ruling in Bighorn Desert View Water Agency v. Verjil. "We now have to give people an opportunity to protest and give them a 45-day notice," she added, referring to letters the city has sent out to all property owners, notifying them of the impending 5-percent rate hike.

 

This means Gilroyans could stop the proposed increase this year, but halting what has become an annual custom for the city's water department since 2001 will require a majority of property owners to file written protests to the city clerk before the City Council discusses the issue Sept. 17.

 

None of this was possible last year when higher water rates increased the average annual bill for a South County family of five from about $107 to roughly $115. This year's scheduled increase will bring that number to about $127, according to Santa Clara Valley Water District figures.

 

Darin Taylor, a senior project manager with the SCVWD, said these charges are associated with the costs of pumping water from the ground, and they pay for the management of groundwater basins. Groundwater charges in South County, he said, increased from $230 to $255 per acre-foot as of July 1.

 

An acre-foot of water equals an area roughly the size of a football field filled to a depth of one foot. It is enough water to supply two families of five for about a year.

 

Arithmetic aside, City Administrator Jay Baksa said this year's rate hike is just the city's way of avoiding debt by relaying the water district's July 1 increase to local consumers. If residents don't stop the measure, the 5-percent increase will bring in another $500,000 for the city.

 

"We produce water for the public, but we're buying our supply from the water district that charges a pump tax for every gallon we pull out of the ground," Baksa said. "So when their rates go up, so do ours. Basically we're just passing the cost along to consumers."

 

Taylor said the water district expects its rates to climb by about 10 percent annually for the next few years due to facility construction and rehabilitation costs.

 

"With all the construction going on in California, there are less bidders on more construction contracts, and the cost of materials has gone up because of demand," Taylor said, adding that the SCVWD spent $60 million in fiscal year 2006-2007 on the maintenance of "aging" facilities and beginning the construction of new ones.

 

The reason the water district's rates can go up 10 percent while local rates go up only 5 percent is simple: Gilroy's water department attributes half of its costs to water district rates and electricity bills for pumping water throughout the valley floor and up the hills, where water rates are higher. This means local rates go up about half as much as the district's because district rates only account for about half of local operating costs.

 

"If the city is controlling its costs and others aren't going up," Taylor said, "then their rate increase needs to be less than our wholesale rates." Five percent less in Gilroy's case.

 

The city has done just this for the past five years with its annual 5- to-8-percent rate increases, but this year it had to send out the notice as part of the Bighorn ruling, and at the bottom of that letter appears Proposition 218.

 

"Prop 218," as it's called, is the state law approved by voters in 1996 that the Bighorn case centers on because it mandates notification of and protest opportunities for land owners when it comes to property-related fees, which until this year did not include water, garbage or sewer.

 

Protesting will not be necessary for sewer rates this year, however, because they will remain the same after only one 2-percent increase in 2003.

 

Rate hikes aside, Baksa lauded many Gilroy residents for buying eco-friendly homes and outfitting their existing ones with green amenities.

 

"People have been doing a good job of water conservation. There are new homes being built with low flush toilets and better drip irrigation systems, so actually new growth hasn't increased costs."

 

Whether greener houses can temper residents who have stomached steady rate hikes since 2001 remains to be seen.

 

According to Proposition 218, article XIIID of the California Constitution....

 

- Only property owners with land titles can file written protest

 

- Protest must include name and address

 

- Mail or deliver written protest to City Clerk Shawna Freels, 7351 Rosanna St., Gilroy, CA 95020

 

- City must receive protest by 7pm, Sept. 17

 

- Attend public hearing at above address and time for an opportunity to speak

 

A Rising Tide

 

- Annual water rates for the typical South County household have nearly doubled since 2001.

 

- South County water rate per acre-foot since 2001 and projected through 2010. An acre-foot is equivalent to the water used by two families of five in one year.

 

- 2001 $130

- 2002 $140

- 2003 $160

- 2004 $200

- 2005 $215

- 2006 $230

- 2007 $255

- 2008 $275*

- 2009 $295*

- 2010 $315*

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