WATER SUPPLY PLANNING COMMITTEE
ITEM:		DISCUSSION ITEM
3.	DISCUSS CONCESSIONS/COMPROMISES THAT MIGHT FORESTALL LITIGATION
Meeting Date:			June 25, 2012	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: At its June 19, 2012 meeting the Committee invited round table discussion from community representatives. Areas of potential compromise on the proposed annual water supply charge were discussed. Identified areas include:

a) Limiting expenditures to “water projects” only

b) Establishing a sunset date

c) Creation of an oversight committee

DISCUSSION: The proposed Ordinance has addressed these issues already, but may warrant tightening or improving language, as shown below.

Limiting Expenditures to “Water Projects” Only

Presently the language below is found in Section Three of the Ordinance:

“Proceeds of the charge imposed by this Ordinance may only be used to fund District water supply activities, including capital acquisition and operational costs for Aquifer Storage and Recovery (ASR) and Groundwater Replenishment (GWR) purposes, as well as studies related to project(s) necessary to ensure sufficient water is available for present beneficial water use in the main CAW system. In addition to direct costs of the projects, proceeds of this annual water use fee may also be expended to ensure sufficient water is available for present beneficial use or uses, including water supply management, water demand management, water augmentation program expenses such as planning for, acquiring and/or reserving augmented water supply capacity, including engineering, hydrologic, legal, geologic, financial, and property acquisition, and for reserves to meet the cash-flow needs of the District and to otherwise provide for the cost to provide services for which the fee is imposed.”

Establishing a Sunset Date

Presently the language below is found in Section Nine of the Ordinance:

“This Ordinance shall take effect at 12:01 a.m. on July 1, 2012. This Ordinance shall not have a sunset date, provided however, that fees set by this Ordinance shall not be collected to the extent proceeds exceed funds required to achieve the Purposes of this Ordinance, as set forth in Section Three or as described in the Findings referenced in Section Two… The District shall require the annual water use fee to sunset in full or in part unless the Board determines that the purpose of the fee is still required, and the amount of the fee is still appropriate and less than the proportionate cost of the service attributable to each parcel on which the fee is imposed. If the purpose is fully accomplished, the fee shall be required to sunset. If the purpose for the fee is determined to continue, but amounts needed to fund that purpose are decreased, the fee shall be reduced to that lesser amount.”

Creation of an Oversight Committee

Presently the language below is found in Section Nine of the Ordinance:

“So long as this annual water use fee is collected, the Board of Directors shall hold a public hearing each calendar year in connection with review of the annual District budget. At that time, the Board shall review amounts collected and expended in relation to the purposes for which the fee is imposed. The District shall require the annual water use fee to sunset in full or in part unless the Board determines that the purpose of the fee is still required, and the amount of the fee is still appropriate and less than the proportionate cost of the service attributable to each parcel on which the fee is imposed. If the purpose is fully accomplished, the fee shall be required to sunset. If the purpose for the fee is determined to continue, but amounts needed to fund that purpose are decreased, the fee shall be reduced to that lesser amount. In the event aggregate annual fee collections are insufficient to fund all appropriate purposes to which the fee may be expended, the Board may determine, in its sole discretion, the extent to which any purpose or purposes shall be funded provided that the charge does not exceed the proportionate cost of the service attributable to each parcel on which the fee is imposed.”

EXHIBITS

3-A Proposed Ordinance No. 152

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