COMMITTEE AGENDA MEMORANDUM
Recycled Water Committee
SUBJECT:
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Discussion of October 2018 Special Joint Recycled Water Policy Advisory Committee (City of San Jose/SCVWD/City of Santa Clara) Item to be discussed: Water rates and the complexities of the associated economics.
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RECOMMENDATION:
Recommendation
Receive information and discuss next steps.
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SUMMARY:
The District is the groundwater management agency and primary wholesale water provider in the County. The District actively manages the groundwater basins by replenishing them with local and imported water, and by operating surface water treatment plants that provide "in-lieu" recharge. A complex system that includes 10 reservoirs, 142 miles of pipelines, 4 water treatment plants, and 3 pump stations, helps keep water flowing across the county. The cost to operate and maintain this system is reimbursed primarily through groundwater charges and treated water charges paid by water retail customers. Groundwater charges differ depending on the "zone of benefit." The North County (Zone W-2) is defined as the portion of the County north of the Coyote Valley. The South County (Zone W-5) is defined as the portion of the County extending from Coyote Valley to Gilroy.
Resolution 99-21 guides staff in the development of the overall pricing structure based on principles established in 1971. The general approach is to charge the recipients of the various benefits for the benefits received. More specifically, pricing is structured to manage surface water, groundwater supplies and recycled water conjunctively to prevent the over use or under use of the groundwater basin.
Each year, the Board establishes groundwater production charges as well as surface water charges, recycled water charges, treated water surcharges, and the amount of the State Water Project cost to be recouped through the State Water Project tax. The Board adopted groundwater charge increase for North County Zone W-2 for Fiscal Year 2018-...
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