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HomeMy WebLinkAbout06.e. Authorize the General Manager to continue waiving the volumetric fee for commercial recycled water truck fill users for calendar year 2017 6.e. Central San BOARD O DIRECTORS POSITION P Board Meeting Date: March 2, 2017 Subject: AUTHORIZE GENERAL MANAGER TO CONTINUE WAIVING THE VOLUMETRIC FEE FOR COMMERCIAL RECYCLED WATER TRUCK FILL USERS FOR CALENDAR YEAR 2017 Submitted By: Initiating Dept.ffliv.: Melody LaBella Engineering & Technical Services l Resource Recovery Program Manager Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Frost—Senior Engineer D. Gemmell—Planning & Development Svcs. Division Mgr. JM. Petit— Director of Engineering &Technical Services Rogers, Haile General Manager ISSUE: Since the assessment of recycled water rates is codified in the District Code, the Board must authorize any modifications. BACKGROUND: In November 2015, as a way to encourage the use of recycled water to save limited drinking water resources, central San's Board approved a one-year emergency drought relief pilot project to waive the volumetric fee for the cost of recycled water obtained through central San's Truck Fill Program. The one-year pilot is complete, so staff is returning to the Board to seek approval to extend this practice in 2017, in order to continue incentivizing the use of recycled water for construction purposes. If the Board approves this extension, staff will return to the Board at the end of 2017 to seek direction on this issue for 2018. ALTERNATIVES/CONSIDERATIONS: The Board could chose to end the pilot and begin reassessing the volumetric fee for recycled water obtained through the Truck Fill Program. FINANCIAL IMPACTS: customers obtaining recycled water for truck filling have historically been assessed central San's "former potable' recycled water, which is currently $3.48 per 1,000 gallons. In calendar year 2016, Central San distributed approximately 412,00.0 gallons of recycled water to truck fill customers. If staff had assessed the volumetric fee, it would have represented $1,433.75 in revenue to central San. COMMITTEE RECOMMENDATION: The Real Estate, Environmental & Planning Committee reviewed this item at its February 17, 2017, meeting and recommended that staff continue waiving the volumetric fee for commercial recycled water truck fill users. RECOMMENDED BOARD ACTION: Authorize General Manager to continue waiving the volumetric fee for commercial recycled water truck fill users for calendar year 2017. Page 1 of 1