03-21-14 BPU RPT 01 - Laserfiche WebLink

Home

W I T E R E N E R G Y L36WA RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: March 21, 2014 ITEM NO: 1 SUBJECT: PUBLIC HEARING - RENEWAL OF THE WATER CONSERVATION SURCHARGE ISSUE: The item for Board of Public Utilities consideration is approval to renew the 1.5% Water Conservation Surcharge applied to all Riverside Public Utilities (RPU) water customer accounts. RECOMMENDATIONS: That the Board of Public Utilities: 1. Conduct a public hearing to receive input on the renewal of the Water Conservation Surcharge applicable to all RPU water customers by eliminating the expiration date; 2. Adopt a resolution establishing the revised Schedules WA-1, WA-2, WA-3, WA-4, WA-5, WA-6, WA-7, WA-8, WA-9 and WA-10; and 3. Recommend that the City Council adopt the appropriate resolution approving the above revised water schedules. BACKGROUND: For over 100 years, the delivery of safe and reliable water to its customers has been an essential service of the City of Riverside Public Utilities Department (RPU). On May 25, 2004,the City Council adopted the ten-year Water Conservation Surcharge to serve the growing need for water conservation in the City of Riverside. The Water Conservation Surcharge is a 1.5%surcharge applied to all RPU water customer accounts, including residential and commercial, and it is listed as an individual line item on the monthly utility bill. The amount of the surcharge is calculated by applying the surcharge to the amount of a customer's water bill. The average residential RPU customer pays$0.70 per month for this surcharge. The Water Conservation Surcharge is utilized for: 1. Conservation, education, and water use efficiency programs 2. Research, development, and demonstration programs to advance science and technology with respect to water conservation As the Water Conservation Surcharge fund was phased in from 2004-2006, it took several years before RPU accumulated sufficient funding to begin effective water conservation programming. Although many conservation activities have been undertaken since the 1990s, water conservation programming began in earnest in 2007. In November 2009, the Governor and State Legislature approved Senate Bill (SB) x7-7 mandating urban water suppliers to lower per capita water usage 20% by the year 2020. In response to this legislation, RPU used the Water Conservation Surcharge fund to increase offerings of water conservation programs to its customers, implement direct installation programs, increase marketing, education and sponsorship efforts, and create grants and research funding opportunities for local universities.