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ITEM: |
GENERAL
MANAGER’S REPORT |
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9. |
REVIEW DISTRICT AQUIFER STORAGE AND RECOVERY COSTS AND FUNDING |
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Meeting
Date: |
August 20, 2012 |
Budgeted: |
N/A |
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From: |
David J.
Stoldt, |
Program/ |
N/A |
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General
Manager |
Line Item No.: |
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Prepared
By: |
Suresh
Prasad |
Cost
Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on August 13, 2012 and recommended approval. |
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CEQA Compliance: N/A |
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SUMMARY: The
Board of Directors is required under its User Fee Ordinance to hold a public
hearing each year in conjunction with review of the annual District budget to
review the amounts collected and expended in relation to the 1.2% portion of
the water user fee that was re-authorized and extended on December 8, 2008 to
fund Aquifer Storage and Recovery (ASR) and related water supply projects. Exhibit
9-A is the Annual Status Report on 1.2%
Water User Fee. As the report indicates,
expenditures for the stated purpose through Fiscal Year (FY) 2011-12 will total
approximately $4,362,774 and revenue collected are $2,176,021, leaving a
balance of approximately $2,186,753 to be collected for activities. Since May 2011, the District has been unable
to collect the 1.2% user fee from the California American Water (Cal-Am)
customers.
RECOMMENDATION: No action is required at this time, however, staff will return to the Board at a later date seeking authorization for reimbursement of the ASR expenditures from the new water supply charge, proceeds from new debt, leasing arrangements from Cal-Am or any other option not determined at this time.
BACKGROUND: On December 8, 2008, the Board of Directors adopted Ordinance No. 138, An Ordinance of the Board of Directors of the Monterey Peninsula Water Management District to Re-authorize a Water User Fee to Fund Aquifer Storage and Recovery and Related Water Supply Projects. In addition to re-authorizing and extending the 1.2% portion of the water user fee for the stated purpose, the Resolution required that the Board of Directors hold a public hearing each year in conjunction with review of the annual District budget to review the amounts collected and expended in relation to the purposes for which the fee was imposed. Since May 2011, the District has been unable to collect the 1.2% user fee from the Cal-Am customers.
Staff will return to the Board at a later date seeking authorization for reimbursement of the ASR expenditures from the new water supply charge, proceeds from new debt, proceeds from leasing arrangements with Cal-Am or any other option not determined at this time. The reimbursement would be for the remainder of the ASR expenditures.
9-A Annual Status Report on 1.2% Water User Fee
U:\staff\Boardpacket\2012\20120820\GMReport\09\item9.docx