BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Open Space Credit Policy Discussion.
End
RECOMMENDATION:
Recommendation
A. Consider information provided by staff and provide policy direction as necessary; and
B. Develop an Agricultural water charge adjustment for Williamson Act and Conservation Easement participation that would hold the agricultural water charge to 6% of the Municipal and Industrial (M&I) charge.
Body
SUMMARY:
The purpose of this discussion is to review the District's Open Space Credit policy, discuss and consider potential changes, and provide direction as appropriate. This memo includes a summary of actions taken to date in response to the following Board direction provided on April 24, 2018:
1. Analyze agricultural water usage trend scenarios and potential impact on Open Space Credit projection
2. Research feasibility of a reduced agricultural charge for Williamson Act and Conservation Easement participants
3. Seek contributions from local private companies or other governmental agencies to fund Open Space Credit
Background
The District Board has historically recognized that agriculture brings value to Santa Clara County in the form of open space and local produce. In an effort to help preserve this value, the District Act limits the agricultural charge to be no more than 25% of the municipal and industrial (M&I) charge. In 1999, to further its support for agricultural lands, a policy was put into place further limiting the agricultural groundwater production charge to no more than 10% of the M&I charge. The agricultural community currently benefits from low groundwater charges that are 2% of M&I charges in North County and 6% of M&I charges in South County. According to Section 26.1 of the District Act, agricultural water is "water primarily used in the commercial production of agricultural crops or livestock."
The credit to agricultural water users has become known as an "Open Space Credit." It is paid for by fungible, non-rate relate...
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