BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Agricultural Water Advisory Committee’s (AWAC) Recommendations and Associated Staff Analysis from the Committee’s special February 26, 2018 and regular April 2, 2018, Meetings.
End
RECOMMENDATION:
Recommendation
Consider and act on the following recommendations by the Agricultural Water Advisory Committee:
A. Strongly recommend that the Open Space Credit Policy be maintained as is;
B. Direct staff to provide an in-depth analysis and response on the Open Space Authority’s letter and Mr. Dhruv Khanna’s memo, and report back to the Committee for their response and action;
C. Direct staff to provide a more equitable analysis of the impacts of development throughout the county consisting of the ecosystem’s benefit of agriculture;
D. Direct staff to review the audio of the February 26, 2018 meeting and capture those key comments that were discussed, and prepare a response and report back to the Committee; and
E. Recommend limiting the increase of the Agricultural Groundwater Production Charge not to exceed 7%.
Body
SUMMARY:
Recommendations:
The AWAC unanimously approved the below items for the Board of Directors’ consideration at their February 26, 2018, and April 2, 2018, meetings:
1. Strongly recommend that the Open Space Credit Policy be maintained as is;
2. Direct staff to provide an in-depth analysis and response on the Open Space Authority’s letter and Mr. Dhruv Khanna’s memo, and report back to the Committee for their response and action;
3. Direct staff to provide a more equitable analysis of the impacts of development throughout the county consisting of the ecosystem’s benefit of agriculture;
4. Direct staff to review the audio of the February 26, 2018 meeting and capture those key comments that were discussed, and prepare a response and report back to the Committee; and
5. Recommend limiting the increase of the Agricultural Groundwater Production Charge not to exceed 7%.
Staff Analysis:
1. Staff has made notation of the Committee’s recommendation.
2. Staff can prepare a response to the letter and memo.
3. This would require engaging consultants and spending tens of thousands of dollars, and would require many hours of staff time over a period of up to one year. However, the analysis completed by ERA Economics in 2013 has already answered the key question facing the Board in its effort to allocate limited financial resources. The ERA Economics study showed how increasing the Agricultural Groundwater Production Charge as a percentage of the M&I charge would impact the permanent fallowing of agricultural lands.
4. Staff can prepare a response.
5. If the Board adopts a 7% agricultural charge increase instead of 22% for FY 19, then water charge revenue would decrease by roughly $100K, and the Open Space Credit would need to increase by $100K, such that there would be no net impact to the Water Utility. The FY 19 budget transfer to the Water Utility from the Watershed Stream Stewardship Fund and the General Fund for the Open Space Credit would need to increase by $50K each.
FINANCIAL IMPACT:
The Office of the Clerk of the Board has budgeted funds to support the business meetings of the Board’s Advisory Committees for Fiscal Year 2017-2018.
If the Board adopts a 7% agricultural charge increase instead of the staff recommended 22% increase for FY 19, then the FY 19 proposed budget transfer from the Watershed Stream Stewardship Fund and the General Fund to the Water Utility Fund for the Open Space Credit would need to be increased by $50K each, which would accordingly reduce the budgeted operating and capital reserves in the Watershed Stream Stewardship Fund and the General Fund.
CEQA:
The recommended action is a ministerial action and thus is not subject to the requirements of CEQA.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER:
Manager
Michele King, 408-630-2711