City Council Meeting: October 22, 2002 Santa Monica,
California
TO: Mayor
and City Council
FROM: City
Staff
SUBJECT: Resolution Setting Rate for Recycled Water
This report
recommends that the City Council adopt the attached resolution setting the rate
for recycled water produced by the City’s Santa Monica Urban Runoff Reclamation
Facility (SMURRF).
The City’s
SMURRF plant was completed in early 2001. It produces approximately 300,000
gallons of recycled water per day.
Production of recycled water reduces the City’s dependence on imported
water supplies. A recycled water rate
needs to be established to recoup a portion of the costs of production while
providing a cost incentive to customers to purchase the water.
Currently,
recycled water is used to irrigate various City parks. An extended system will be completed this
year to provide recycled water to Woodlawn Cemetery, Caltrans freeway
landscaping and the Water Gardens.
Eventually, the SMURRF plant will deliver water to the City’s Public
Safety Facility and the new Rand headquarters.
Prior to the
availability of recycled water, all customers paid for a portion of their water
at the City’s first tier potable rate of $.74 per hundred cubic feet, and a
portion at the second tier of $1.80 per hundred cubic feet depending on water
use and meter size. Since recycled
water cannot be used for human consumption, its use is restricted. As a result, and as an incentive to
customers to use recycled water, staff is recommending that the recycled water
rate for SMURRF be set at a lower rate than potable water. The recommended rate is $1.30 per hundred
cubic foot which represents the costs of recycled water operations less the
revenue from bimonthly service charges, or approximately 70 percent of the
second tier potable rate. The users of
recycled water will realize a savings in water costs. Other agencies surveyed charge 65 to 80 percent of their potable
water rates.
This is the
first year the City will receive revenue from SMURRF recycled water. Recycled water sales for FY 2002-03 are
anticipated to be approximately
$100,000 annually and are budgeted at Revenue Account 34661.407150. Half of these revenues are credited to the
City of Los Angeles, which shares equally in the costs and revenues associated
with the SMURRF plant. The City will
receive $50,000, which is budgeted at Revenue Account 34661.402730 for FY
2002-03. As with potable water rates,
recycled water rates will be revised annually based on CPI index.
Staff
recommends that the City Council adopt the attached resolution setting the
recycled water rate.
Prepared by: Craig Perkins, Director of Environmental and Public Works Mgmt.
Gil
Borboa, Utilities Manager
Jean
Higbee, Utilities Business Manager
Attachment: Resolution