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ITEM: |
ACTION
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21. |
RECEIVE
UPDATE ON PROPOSAL TO IMPLEMENT STAGE 3 WATER CONSERVATION TO REDUCE OUTDOOR
WATER USE |
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Meeting
Date: |
January 28, 2010 |
Budgeted: |
N/A |
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General
Manager |
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Prepared
By: |
StephaniePintar |
Cost Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee Recommendation: N/A |
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CEQA
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SUMMARY: At its December 12, 2009 meeting, staff indicated that they would be providing a recommendation to the Board regarding enactment of Stage 3 Water Conservation as a response to the State Water Resources Control Board’s (SWRCB) October 20, 2009, Cease and Desist Order (CDO) against California American Water. Initially, Stage 3 was contemplated as a way to ensure that water use in the California American Water systems would stay below daily targets in compliance with the CDO, as Stage 3 includes “Emergency Rates” which impact the upper tiers of the rate structure (i.e., high water users). However, beginning in February 2010, California American Water will begin initiating revised rates approved by the California Public Utilities Commission (CPUC) in 2009. These increased rates may have the effect of achieving reductions in use similar to those anticipated by the implementation of Stage 3.
District staff, California American Water and the CPUC’s Division of Ratepayer Advocates (DRA) met several times to discuss the potential outcome of implementing Stage 3 at the same time as the new rates. All parties agree that Stage 3 should be delayed until the conservation effect of the new rates can be determined. DRA also expressed concern that the implementation of multiple new rates would be confusing to the consumers. Fluctuations in the rates will occur as the rates are adjusted for repayment of surcharges and fees not collected during 2009. District staff is monitoring production levels daily and will bring any concern about production compliance to the Board for further action when needed.
RECOMMENDATION: Staff recommends that the Board not take action to implement Stage 3 Water Conservation until it is either required by District Rule 172 (Stage 2 of the Expanded Water Conservation and Standby Rationing Plan) or until it becomes apparent to staff that further conservation action is necessary to comply with projected production targets for compliance with the CDO.
BACKGROUND: On October 20, 2009, the State Water
Resources Control Board (SWRCB or State Water Board) adopted Order WR
2009-0060. The final order, which was distributed
on October 27, 2009, prohibits California American Water (Cal-Am) from
diverting
The District and Cal-Am
challenged the SWRCB order on October 27, 2009, by filing separate petitions
for a Writ of Mandate and request for Declaratory Relief. The District also filed a request to stay the
order. The District’s stay request was
granted by the Monterey County Superior Court on November 3, 2009. The stay remains in place.
EXHIBITS
None
U:\staff\word\boardpacket\2010\20100128\ActionItems\21\item21.doc