Lnc Alumni Group Water Presentation #1

Olivenhain Municipal Water District Olivenhain Municipal Water District Water Supply & Drought Management Water Supply & Drought Management

IssuesIssues

Leadership North County

Alumni

January 27, 2009

Whiskey is for drinking; water is for fighting over.“ – Mark Twain

Don’t want to steal Dana’s thunder, but here is a hint at what she is going to tell you…

OMWD Service Area

CWA Supplies

Anticipated Supplies

• MWD water supply allocation in 2009 is likely– Shortages could be significant

• A 15% cut from MWD, translates to a lessor cut from CWA, and then a lessor cut from OWMD.– We each have alternate supplies.

Local Agency Perspective

• Each local agency has different supply portfolios– Recycled; Brackish Desal; Local Storage

• We estimate 60-70% of water use is outside– IE – Plants and Grass– It takes 48” of rain to make grass green in

a year• How much did SD County get last year??

San Diego Rainfall by Calendar Year1850 through 2007

2007 shown in red

OMWD’s Drought Ordinance• Very similar to regional ordinance –

focuses on outdoor use• Six water use restrictions• No new meters in Level 2.

– Voluntary demand off-set fee.• Identified five projects.• Calculate cost per acre foot of those projects.• Estimated $4K - $5K per EDU offset.

• Remainder of ordinance follows lead of the regional model.

• Allocations can come with a Level 2 declaration We are in Level 1

• Use existing employees for enforcement

• Conservation Programs– Regional incentives

• WBICS, Turf Replacement, nozzles, audits

– Demonstration garden at HQ Site– Quail Botanical Gardens– Landscape Contest

• Landscape Workshops • Conservation Ambassadors

– Champions in the communities– Hardship request committee

Outreach/Education – Focus on Outside Use and on Communication

Outreach/EducationCustomer Survey Customer Survey ResultsResults

• 62% recognize urgency• 86% find OMWD credible• 51% need more detailed conservation information•59% willing to make changes outdoors• Strong motivator: conserving now could prevent mandatory restrictions

• Special e-mail account: watersaver@olivenhain.com

• Drought hotline:– Conservation programs/general

information.

Conservation Pricing• Temporary water pricing applied to all

imported water commodity rates based on drought level.

• New rates at each stage of drought. – Provide economic incentive to conserve

water – An effective tool to reduce customers

“discretionary” water use.– Achieve revenue neutral condition.– Utilize rate stabilization reserves to cover

temporary budget shortfalls due to reduction in water sales.

– Price Elasticity of Water – Rates how much higher to achieve reduction?

Conservation Based Pricing• Follows OMWD drought ordinance• Chart shows 9% rate increase effective February 1st and the conservation based pricing

model.

0%0%0%0%7%$0.13 $1.97 $1.84 Recycled

75%65%40%15%9%$0.18 $2.17 $1.99 Raw Water

75%65%40%15%9%$0.27 $3.28 $3.01 Temporary Construction

65%55%25%5%9%$0.20 $2.42 $2.22 Agricultural

OTHER

75%65%40%15%9%$0.24 $2.95 $2.71 "C" (Over Base)

65%55%25%5%9%$0.21 $2.54 $2.33 "B" (Base)

COMMERCIAL/IRRIGATION

75%65%40%15%9%$0.23 $2.83 $2.60 Tier 3 (over 43 units)

65%55%25%5%9%$0.20 $2.43 $2.23 Tier 2 (7 - 43 units)

35%20%10%0%9%$0.13 $1.58 $1.45 Tier 1 (0 - 6 units)

RESIDENTIAL

Level 4Level 3Level 2Level 1Diff %Diff $Rate

Increase from Non-Drought RateNon DroughtCurrentTier

0%0%0%0%7%$0.13 $1.97 $1.84 Recycled

75%65%40%15%9%$0.18 $2.17 $1.99 Raw Water

75%65%40%15%9%$0.27 $3.28 $3.01 Temporary Construction

65%55%25%5%9%$0.20 $2.42 $2.22 Agricultural

OTHER

75%65%40%15%9%$0.24 $2.95 $2.71 "C" (Over Base)

65%55%25%5%9%$0.21 $2.54 $2.33 "B" (Base)

COMMERCIAL/IRRIGATION

75%65%40%15%9%$0.23 $2.83 $2.60 Tier 3 (over 43 units)

65%55%25%5%9%$0.20 $2.43 $2.23 Tier 2 (7 - 43 units)

35%20%10%0%9%$0.13 $1.58 $1.45 Tier 1 (0 - 6 units)

RESIDENTIAL

Level 4Level 3Level 2Level 1Diff %Diff $Rate

Increase from Non-Drought RateNon DroughtCurrentTier

*NOTE: Conservation pricing will be in addition to penalties passed through to customers for exceeding SDCWA / MWD allocations.

Residential Sample Bill Calculation

A typical residential customer with ¾” size meter using 18 units of water

$54.99 $32.03 $4.01 $2.13 40%10.80 $22.96 Level 4

$57.21 $34.25 $3.77 $1.90 33%12.06 $22.96 Level 3

$59.48$36.52 $3.04 $1.74 19%14.58 $22.96 Level 2

$59.37 $36.41 $2.55 $1.58 8%16.56 $22.96 Level 1

$61.60$38.64 $2.43 $1.58 0%18.00 $22.96 Non-Drought

Tier 2Tier 1DecreaseHCF

Total BillCommodity

Charge

Commodity RateConsumptionSystem Access

+ IAC

Rate Scenario

$54.99 $32.03 $4.01 $2.13 40%10.80 $22.96 Level 4

$57.21 $34.25 $3.77 $1.90 33%12.06 $22.96 Level 3

$59.48$36.52 $3.04 $1.74 19%14.58 $22.96 Level 2

$59.37 $36.41 $2.55 $1.58 8%16.56 $22.96 Level 1

$61.60$38.64 $2.43 $1.58 0%18.00 $22.96 Non-Drought

Tier 2Tier 1DecreaseHCF

Total BillCommodity

Charge

Commodity RateConsumptionSystem Access

+ IAC

Rate Scenario

Allocations

• Can come with Level 2

• Each agency different in their implementation– Some will look at past use– Others give budgets– OMWD will base on meter size so

as to not penalize for past conservation

New Emphasis onDiversification of Supply

Recycled Water

• Approximately 6% of current OMWD supply– Golf Courses

• Fairbanks, Morgan Run, Crosby• Future – RSF Farms

– Own and operate the 4S Ranch Water Reclamation Facility (1.6 mgd)

– Partnerships currently with• City of SD• Vallecitos WD

– Exploring future projects with• SFID/San Elijo JPA• RSF Community Services District• Whispering Palms• Fairbanks

Desalination• SD Desal Partners

– Subscribed for 5,000 AF– IRWMP Grant-$2 million

• 10% of water supply in 2011

• Any agency that can go this route is now looking

Diversification of SupplyDiversification of Supply

How does this effect North County

• There will be less water and it will cost more

• Hits at the same time as state budget/economic crisis– Potential loss of property tax revenues

• Recycled Water exempt from restrictions

• Potable water cutbacks will effect residents and businesses alike

• This is not short term.

Questions?