Department of Water Resources
A daily compilation of significant news articles and comment
September 15, 2008
5. Agencies, Programs, People -
Smaller agency still fights plan
The San Bernardino
Palmdale Water District approves rate study
The
Farmers water rates to rise : Cost-savings plan for farmers to be eliminated in next five years
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Smaller agency still fights plan
The San Bernardino
By Andrew Edwards, Staff Writer
A small water agency continues to resist plans that would result in it being absorbed by a larger water provider.
At issue for the public is whether merging the agencies would lead to higher property taxes. Leaders of the two water districts disagree on the question of whether
The San Bernardino Valley Water Conservation District, with five employees and seven board members, is the agency resisting the merger with the larger San Bernardino Valley Municipal Water District.
The two agencies play different roles in the
Officials in favor of consolidating the water agencies say a merger would simplify water management in the
"The public needs to be aware that there is more than just a small likelihood that this will cost them money," Conservation District general manager Robert Neufeld said.
Neufeld's counterpart at the Municipal Water District, Randy Van Gelder, disagrees. He replies that the consolidation will eliminate the Conservation District's fees and thus lead to overall savings for
Here's how the agencies' arguments break down:
The Conservation District, with territory that roughly spans from
But mining operations within the Conservation District's territory are the agency's most significant money source. In 2005, the district collected about $1 million in mining revenues.
Neufeld said mining revenues are dwindling as demand for locally-extracted construction materials has diminished because of deflation in the real estate market.
In 2008, the Conservation District might only collect about $300,000 in mining revenues, Neufeld said.
If consolidation goes forward, Neufeld argues that the Municipal Water District - unable to charge groundwater fees - will have to make up for the lost revenue by hiking property taxes. He said Municipal may have to find about $300,000 in new revenues if the merger happens.
The Municipal Water District's area includes
Municipal imports State Water Project supplies from Northern California and sells it to retail agencies that pipe the liquid to homes and businesses in the
Property tax revenues are a key funding source for Municipal. For each $100,000 of assessed value, the district levies a $165 charge.
Van Gelder said that a merger with the Conservation District would not lead to a tax hike. He replied that the elimination of the smaller district's fees - he called them a "pump tax" - would lead to a reduction in the costs of delivering water throughout the
"Overall, the water users and taxpayers would save money," he said.
Van Gelder predicted that merger-related cost savings could be as high as $700,000 to $1 million.
He also disagreed with Neufeld's claim that Municipal would sell the high-quality water now controlled by the Conservation District to out-of-county water districts.
"That's just simply not in the plan that has been adopted," Van Gelder said.
The Local Agency Formation Commission, or Lafco, is another out-of-the-spotlight agency with a big role in this process. Lafco oversees activity like the incorporation of new cities and merging of government districts, and its board may decide to merge the water districts.
The Conservation District has gone to court to prevent that from happening. Neufeld said his district has appealed a trial court ruling that upheld Lafco's authority to command a merger.
Kathleen Rollings-McDonald, Lafco's executive director, said Lafco staffers support a merger because it would create one agency that has the Conservation District's current job of storing local water in the area's groundwater basin with Municipal, which is responsible for keeping State Water Project supplies in the basin.
Rollings-McDonald said environmental documents prepared for the possible merger could be certified as early as November. The report can be viewed online at www.sbclafco.org.#
http://www.sbsun.com/news/ci_10465890
Palmdale Water District approves rate study
The
By ALISHA SEMCHUCK, Staff Writer
PALMDALE - Water rates could change for customers of the Palmdale Water District once a study of the rate structure has been completed, but which way is unknown.
The district board, on a 5-0 vote on Wednesday night, approved an agreement with Raftelis Financial Consultants, Inc., a nationwide firm with an office in
Among its services, the water and wastewater financial consulting firm, conducts studies of water rates and develops a model by which to calculate rates.
If implemented, a tiered rate structure would assign a water use budget to district customers based on the number of people living in a home, the amount of landscaped area on the property and daily evapotranspiration data - the amount of water needed to keep a lawn green during day-to-day weather changes.
Water district customers would be expected to stay within their allotted amount of water use as a means of conserving water - a resource currently in short supply because of a two-year drought compounded by pumping restrictions in the Sacramento-San Joaquin River Delta mandated by a U.S. District Court judge to save the delta smelt.
Curtis Paxton, the district's assistant general manager, told the board that two firms had been considered for the project, but the water district staff decided on Raftelis based on a recommendation from Tom Ash, director of conservation for HydroPoint, a Petaluma-based irrigation systems firm contracted by the district to install its WeatherTRAK evapotranspiration controllers in 210 Palmdale homes as a water-saving measure. The cost would be $246,421.
The contract for Ash's consulting advice is $10,000 at a rate of $125 per hour, "plus reasonable expenses," as the agreement states.
"What other water districts has Raftelis worked with?" water district Director Raul Figueroa asked.
Paxton named several, including
The firm's Web site also lists Big Bear Municipal Water District; the city and county of
Foreign clients include
"Did we contact any of these cities - (verify) if they're satisfied?" Figueroa asked.
"Tom Ash has," Paxton said.
Paxton described Raftelis as a "nationally recognized firm. We believe we'll get good attention from them. We feel good about their capabilities."
A visit to the firm's Web site at www.raftelis.com indicates that in addition to studying water rates, it also explores conservation pricing and identifies costs associated with peak usage, then develops "appropriate consumption level cut-offs" and estimates the amount of excess consumption that will be subject to a surcharge - a fee imposed for using more water than the amount allotted for a household.
Raftelis offers its clients various resources. According to the Web site, those resources include a biennial rate survey and a book titled "A Comprehensive Guide to Water and Wastewater Finance and Pricing," written by George Raftelis, the firm's president and chief executive officer.
A date hasn't been set yet for Raftelis to begin the project, but Paxton said a "kick-off meeting will probably take place in a couple of weeks."
The study is expected to be completed by May, in time for the water district to conduct a public hearing on water rate changes, as required by Proposition 218.
Prop. 218 demands that local government agencies which provide potable water supplies and sewage services and receive a portion of property tax dollar set public hearings before raising rates.
The state Supreme Court ruled in 2006 that all proposed rate increases require government agencies to mail a notice of intent to all property owners who would be impacted.
Property owners could block a proposed rate hike if 51% object.
When the revised water rate structure surfaced in May, Paxton expressed confidence in Ash.
"This type of water rate structure was developed by Irvine Ranch Water District in the early 1990s," Paxton wrote in a board memo back then.
Ash was "an employee of Irvine Ranch Water District at that time, and played an integral role in the development of the rate structure," he said.
"We'll work primarily with Tom on developing the water budget," Paxton said Wednesday night.#
http://www.avpress.com/n/13/0913_s5.hts
Farmers water rates to rise : Cost-savings plan for farmers to be eliminated in next five years
By NICOLE SACK, Staff Writer
After 50 years of providing agricultural customers with reduced rates, changes are coming down the pipeline that will likely force growers to pay rates that most homeowners experience.
About 30 farming customers of the Rancho California Water District received news this week that their reduced water rates likely will be phased out by the main supplier of regional water ---- Metropolitan Water District ---- in the next five years.
The change will almost certainly mean customers will see higher prices for regional produce, or a reduction of farming operations.
>From 1958 to 1994, Metropolitan Water District provided a 25 percent discount for agricultural customers.
Then in 1994, the Interim Agricultural Water Program was established. That program extended lower rates to growers with the understanding that their water supply would come from "surplus" water and could be interrupted when the supplies tightened.
Under the program, agricultural customers pay $394 per acre-foot of water ---- $132 less than municipal, industrial and residential customers for the same quantity and quality of water. One acre-foot is the volume of water sufficient to cover an acre of land to a depth of 1 foot ---- 325,851 gallons. On average, one acre-foot of water is enough to meet the needs of four people for a year.
Metropolitan Water District provides the Rancho California district with 70 percent of its water. In 2006, more than 7 billion gallons of the lower-cost water were delivered to the local district's agricultural customers.
That "surplus" water is dwindling, however, as
In response to the tightening supplies, farmers were notified of a mandatory 30 percent reduction in their water use. As a result, area avocado and citrus farmers have stumped their trees and taken other measures to adhere to the restrictions.
Now a new kink is in the line for those same farmers as it appears Metropolitan will eliminate the agricultural rates entirely in the next five years. Rates will increase by $25 to $75 per acre-foot for those in the program, said Perry Louck, Rancho California Water District's director of planning.
The local water district held a meeting Wednesday to inform growers about how the Metropolitan decision will trickle down to local customers, both inside and outside the Rancho California district's boundaries.
Rick Opel, vice president of Henry's Avocado Corporation, based in
Opel said the company has had to stump trees and cap sprinklers to reduce their water use.
"We're operating our factory at 75 percent efficiency," he said. "This is going to make farming less profitable. The outlook is very bleak."
Larry Libeu, a director on Rancho California Water District's board, said the five-year phase out period gives growers time to re-evaluate their growing future and possibly switch out their heavy water-drinking crops, like avocados and citrus, with less-water needy plants such as grapes.
"Instead of just cutting the water at once, the phase out will allow agricultural customers to create a business plan," he said.
Libeu said there are two likely scenarios for area growers: face higher costs or cease operations. He said the region could see more agricultural jobs lost to foreign markets due to the water restrictions and rising rates.
Len Francis noted it is really only a four-year phase out as 2009 is almost here. He said that by the time the phase out of the discounted agricultural water program is complete in 2013, he expects his water costs to be 50 percent more expensive.
He said one positive aspect of the change is that while agricultural water customers will face a 30 percent reduction in the amount of water they can use, being lumped in with domestic customers the farmers will be able to use as water as they can pay for.
Francis said he manages more than 600 acres of avocados, a crop he has had to cut back by 25 percent because of the restrictions. He said this water scenario is the most severe he has seen in his 30 years of growing.
"This is the first time we've ever had a 30 percent cutback in water allowances," he said.
He says he doesn't know how the market will balance itself out. Changing what crops he grows is not an option, he said, and without avocado trees, his De Luz property will lose value.
"What else are you going to do with hilly land like that, if you're not growing avocados?" he asked.
Contact staff writer Nicole Sack at (951) 676-4315, Ext. 2616 or nsack@californian.com.#
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