08-26-2019 BPU RPT 14 - Laserfiche WebLink

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WATER I ENERGY I LIFE RIVERSIDE PUBLIC UTILITIES T Board Memorandum P U 6 1 i C U T I i 1 T T F 5 BOARD OF PUBLIC UTILITIES DATE: AUGUST 26, 2019 ITEM NO: 14 SUBJECT: CONCEPTUAL APPROVAL OF WA -12 AGRICULTURAL SERVICE WATER RATE SCHEDULE ISSUE: Consider the proposed WA -12 Agricultural Service water rate schedule. RECOMMENDATIONS: That the Board of Public Utilities: 1. Receive the presentation on the proposed WA -12 Agricultural Service water rate schedule; 2. Conceptually approve the proposed WA -12 Agricultural Service water rate schedule, closing WA -9 Grove Preservation Service upon approval of WA -12 Agricultural Service water rate and transitioning existing WA -3 Irrigation Metered Service and WA -9 Grove Preservation Service Customers to the WA -12 Agricultural Service water rate schedule upon the effective date of the WA -12 Agricultural Service water rate schedule; and 3. Direct staff to prepare all documents necessary for public noticing of the proposed WA -12 Agricultural Service water rate schedule, and schedule a public hearing to be held at the October 15, 2019 Board of Public Utilities meeting, followed by final rate recommendations to the City Council. BACKGROUND: During the process of considering the electric and water five-year rate plans, the City Council recommended the establishment of an Agricultural Water Rates Task Force (Task Force) to provide rate alternative recommendations for the existing WA -3 Irrigation Metered Service (WA -3) and WA -9 Grove Preservation Service (WA -9) water rates; in the meantime, the existing rates would be frozen at current levels for one year. The rate freeze commenced on July 1, 2018 and continues to be in effect. The Board of Public Utilities (Board) appointed a Task Force of 16 community members and stakeholders, including current customers that fall within the WA -3 and WA -9 water rate schedules. The Task Force met over a thirteen -month period to develop a recommended agricultural water rate. Staff was unable to estimate the fiscal impact for the rate proposed by the Task Force, as the proposed rate did not set forth the allocation of water for crops. The Task Force presented its final rate recommendation to the Board and the City Council on May 21, 2019 and June 25, 2019, respectively, with both bodies supporting the proposal. Both the Board and the City Council unanimously received and filed the presentation by the Task Force and directed staff to develop a financial impact analysis of the rate proposal and to use available existing published data to establish the initial crop factors for the agricultural water rate proposal. The Board also directed staff to estimate the fiscal impact of the rate freeze for WA -3 and WA -9 customers, and to prepare a revised rate proposal that establishes a true budget -based rate, where indoor use is charged as the first tier of use