BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Open Space Credit Policy Discussion Continued.
End
RECOMMENDATION:
Recommendation
A. Provide direction to increase Agricultural Rates to 10% of the Municipal and Industrial (M&I) charge over a 7-Year period;
B. Direct staff to implement an agricultural water charge adjustment for Williamson Act and Conservation Easement participants that would hold their agricultural water charge to 6% of the M&I charge; and
C. Provide further direction as necessary for the Fiscal Year (FY) 2019-20 rate setting cycle.
Body
SUMMARY:
The purpose of this discussion is to continue reviewing the District's Open Space Credit policy, address Board questions following the December 5, 2018 Board meeting, discuss and consider potential changes, and provide direction as appropriate. The following is a summary of the Board inquiries to be addressed and discussed:
1. Provide a refresh of the 2013 Economic Study
2. Provide more detail on the proposed Agricultural Charge Adjustment for Williamson Act and Conservation Easement Properties
3. Provide an analysis on setting agricultural charges at different levels over a 5-Year, 7-year, and 10-Year timeframe and the associated Open Space Credit savings
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 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 agric...
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