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HomeMy WebLinkAboutSS4 - Water Ratess .S L4 y 'j(" -0S Municipal Water District of Orange County Presentation to City of Newport Beach Budget Workshop April 26, 2005 Kevin P. Hunt, P.E. General Manager Municipal Water District of Orange County ♦ Imported water supplier to City of Newport Beach ♦ Member of Metropolitan Water District of Southern California ♦ Regional water planning agency 1 Municipal Water District of Orange County ♦ Committed to: —100% water supply reliability — System reliability — Rates management/efficiency — Collaborative approach ♦ Planning + Investments = Reliability Municipal Water District of Orange County ♦ Supplies the City of Newport Beach with approximately 1/3 of its total water supply (6,000 acre -feet) ♦ Remaining water supply from groundwater basin 2 Metropolitan Water Rate is Unbundled .du:TOY 1rU` A -1a5 er, qupPly Pate l'S1uF. 73 Tr Su COla Fate i$i -G'; 154 169 V-F. 01 25 81 Un4ea4c r.Y • 1r: r .:e ( &r4F1 331 I 331 UnM1ea�a • 1 futz fSf >Fi 412 427 VMr.akECCVrnn,.e•w�r flatx cl✓'Fl 263 235 Uotre d lrrlenm NS Ural., Fvgram*,r F) 241 241 •r.YN' run y rYaal c•w,am, }•:1 35 Sx! —CI.' iUd. 5n r 1Pant C., a 111'}$ ?, 8 C. 'Mr: Metropolitan Rates Increasing ♦ Investments in infrastructure for water reliability and water quality ♦ Acquisition of new supply ♦ Preservation of existing supplies from Northern California and Colorado River $10 increase in Tier I Treated $15 increase In Tier 2 Treated 3 MWDOC Rate (Per Acre Foot) MWDOC Water Connection Charge $4.50 /unit $5.50 /unit MWDOC Rate Increase A result of... ♦ Reliability activity ♦ Proposition 50 opportunity bulge ♦ Desalination activities ♦ Compensate by reduction in reserve Iv 2005 2006 Water Rate Increment $5.50 $8.50 Tier 1 / Tier 2 Meld $7.00 $7.00 Meld Reserve $5.00 $2.00 Capacity Charge (Met) $15.00 $15.00 Readiness to Serve Charge $20.00 $20.00 (Met) Total MWDOC 1 $52.50 1$52.50 MWDOC Water Connection Charge $4.50 /unit $5.50 /unit MWDOC Rate Increase A result of... ♦ Reliability activity ♦ Proposition 50 opportunity bulge ♦ Desalination activities ♦ Compensate by reduction in reserve Iv MWDOC Cost to City of Newport Beach Fiscal Year 2005/06 ♦ Per acre -foot of imported water -- $492.50 ♦ Connection charge ------ - - - - -- $144,188 ($5.501connection x 26,216 connections) 0',vl Projected MWD /MWDOC Water Supply Cost Vs Groundwater $700' $600' $500' $400 R $300 $200' $100 $0 566, Sass $512 5528 $540 $189 $ $366 5372 383 5394 $29] — MWD /MWDOC Rate — Average Cost of Groundwater 2005 2006 2007 2006 2009 2010 10 I Questions? Kevin P. Hunt, P.E. General Manager Municipal Water District of Orange County (714) 593 -5026 Khunt @mwdoc.com m Orange County Water District City of Newport Beach April 25, 2005 e n Orange County Water District ♦ Manages the local groundwater basin and Santa Ana River supplies ♦ Groundwater basin extends approximately from the El Toro Y to the L.A. County Border ♦ Work to maximize /increase annual groundwater pumping — Less expensive — Reduce reliance upon imported water 13 01_3 Long -Term Drought ♦ Southern California continues to be in a long- term drought pattern — Less Santa Ana River supplies — Less Colorado River water ♦ Current winter precipitation has been substantially above average - significant progress has been made in refilling the groundwater basin ♦ Need 2 to 3 additional wet winters to refill the groundwater basin 14 VA State Taking of Property C); Taxes ♦ OCWD typically receives - $13 million annually ♦ State will take $7.5 million for next two years ♦ State has imposed a surcharge on water consumers 0 Groundwater Basin 0 Accumulated Overdraft- Desire Level 200,000 100,00 400,000 500,000 600,000 700,000 LL _ 4 U Q - 600,000 � r m m m 9 m o 0 c c c c c c c c c c c State Taking of Property C); Taxes ♦ OCWD typically receives - $13 million annually ♦ State will take $7.5 million for next two years ♦ State has imposed a surcharge on water consumers 0 0 00,000 Desire Level 200,000 300,000 400,000 500,000 600,000 700,000 State Taking of Property C); Taxes ♦ OCWD typically receives - $13 million annually ♦ State will take $7.5 million for next two years ♦ State has imposed a surcharge on water consumers 0 FY2005 -06 Replenishment Assessment Increase $210 $200 $190 x$180 $170 $160 $205 $172 ❑ Operations Related Increase (5.2 %) ■ State Imposed Surcharge (14 %) ❑ Current RA $150 Surcharge eliminated if /when state returns property tax money tae c� rFa OISlPV $300 $250 $200 Projected Groundwater Rate Increases State I,mb l20 o-om R Novemoe� zone zmn aai. Plan Pepon Imposed — -- -..7 1 $205 $150 a 2 $100 to 21 lit 71, $50 1s9 � $0 0304 Current 05 -06 0607 0748 08 -09 0910 © Normal RA Increase/Projection ■ State Surcharge 17 18 9 y FY2005 -06 Basin Production Perce ♦ Basin management methodology called for reducing the BPP from 66% to 62% ♦ Methodology was previously developed with the local cities and water districts ♦ District decided to only lower the BPP to 64% IC Updated BPP Projections `•e Provided to OCWD Board on March 23, 2005 80% BPP is established annually by 75% the OCWD Board based upon avadab a water supplies and tht condition of the groundwater basin 70% 0 165% 64% M 609; 60% 55% 50% — —� 2005-06 2006 -07 76% 75% r 2007 -08 2008 -09 2009 -10 20 10 Factors Driving Up the Cost of Future Water M End of Presentation 11 • Population growth & increased demand • Lack of new State /Federal water projects • Increased reliance on more costly N. California water ID, MT, OR, • Need to find "new" water supplies WY, AZ, NV, » Loss of surplus Colorado River water by 2016 NM & UT » LA & Northern California water to the environment • Need to cleanup pollution • Bay Delta improvements • Replace aging infrastructure �m ° • Need to refill our local groundwater basin • Need more robust water delivery system ELT AEA" i • Higher water quality standards • Post 9 -11 security improvements M End of Presentation 11