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HomeMy WebLinkAbout03.a. Review draft Position Paper authorizing the General Manager to continue waiving the volumetric fee for commercial recycled water truck fill users for Calendar Year 2018Page 1 of 2 Item 3.a. CENTRAL SAN BOARD OF DIRECTORS I _ POSITION PAPER DRAFT MEETING DATE: DECEMBER 18, 2017 SUBJECT: REVIEW DRAFT POSITION PAPER AUTHORIZING THE GENERAL MANAGER TO CONTINUE WAIVING THE VOLUMETRIC FEE FOR COMMERCIAL RECYCLED WATER TRUCK FILL USERS FOR CALENDAR YEAR 2018 SUBMITTED BY: INITIATING DEPARTMENT: JUSTIN WAPLES, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- PDS-PLANNI NG AND APPLI ED RESEARCH REVIEWED BY: DAN FROST, SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN -MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES ROGER S. BAILEY GENERAL MANAGER ISSUE Since the assessment of recycled water rates is codified in the District Code, the Board must authorize any modifications. BACKGROUND n November 2015, Central San's Board of Directors 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 as a way to encourage the use of recycled water to save limited potable water resources. When the one-year pilot was complete, the Board authorized the General Manager to continue to waive the volumetric fee for Calendar Year 2017 as a continued incentive to use recycled water for construction purposes. If the Board approves this extension, staff will return to the Board at the end of 2018 to seek direction on this issue for 2019. ALTERNATIVES/CONSIDERATIONS The Board could chose to begin re -assessing the volumetric fee for recycled water obtained through the Commercial Truck Fill Program. December 18, 2017 REEP Committee Meeting Agenda Packet - Page 3 of 31 Page 2 of 2 FINANCIAL IMPACTS Commercial customers obtaining recycled water for truck filling have historically been assessed Central San's "former potable" recycled water rate, which is currently $3.58 per 1,000 gallons (effective July 1, 2017). To date in 2017, Central San distributed approximately 617,054 gallons of recycled water to truck fill customers. If staff had assessed volumetric fees, it would have represented $2,201.16 in revenue to Central San. COMMITTEE RECOMMENDATION The Real Estate, Environmental & Planning Committee will review this item at its December 18, 2017 meeting. RECOMMENDED BOARD ACTION Authorize the General Manager to continue waiving the volumetric fee for commercial recycled water truck fill users for Calendar Year 2018. Strategic Plan Tie -In GOAL SIX. Embrace Technology, Innovation and Environmental Sustainability Strategy 1 - Augment the Region's Water Supply December 18, 2017 REEP Committee Meeting Agenda Packet - Page 4 of 31