Olivenhain Municipal Water District Water Supply & Drought Management Issues Leadership North County Alumni January 27, 2009

Whiskey is for drinking; water is for fighting over.“ – Mark Twain

Whiskey is for drinking; water is for fighting over.“ – Mark Twain

Don’t want to steal Dana’s thunder, but here is a hint at what she is going to tell you…

OMWD Service Area

CWA Supplies

Anticipated Supplies MWD water supply allocation in 2009 is likely Shortages could be significant A 15% cut from MWD, translates to a lessor cut from CWA, and then a lessor cut from OWMD. We each have alternate supplies.

MWD water supply allocation in 2009 is likely

Shortages could be significant

A 15% cut from MWD, translates to a lessor cut from CWA, and then a lessor cut from OWMD.

We each have alternate supplies.

Local Agency Perspective Each local agency has different supply portfolios Recycled; Brackish Desal; Local Storage We estimate 60-70% of water use is outside IE – Plants and Grass It takes 48” of rain to make grass green in a year How much did SD County get last year??

Each local agency has different supply portfolios

Recycled; Brackish Desal; Local Storage

We estimate 60-70% of water use is outside

IE – Plants and Grass

It takes 48” of rain to make grass green in a year

How much did SD County get last year??

San Diego Rainfall by Calendar Year 1850 through 2007 2007 shown in red

OMWD’s Drought Ordinance Very similar to regional ordinance – focuses on outdoor use Six water use restrictions No new meters in Level 2 . Voluntary demand off-set fee. Identified five projects. Calculate cost per acre foot of those projects. Estimated $4K - $5K per EDU offset. Remainder of ordinance follows lead of the regional model. Allocations can come with a Level 2 declaration We are in Level 1 Use existing employees for enforcement

Very similar to regional ordinance – focuses on outdoor use

Six water use restrictions

No new meters in Level 2 .

Voluntary demand off-set fee.

Identified five projects.

Calculate cost per acre foot of those projects.

Estimated $4K - $5K per EDU offset.

Remainder of ordinance follows lead of the regional model.

Allocations can come with a Level 2 declaration

We are in Level 1

Use existing employees for enforcement

Conservation Programs Regional incentives WBICS, Turf Replacement, nozzles, audits Demonstration garden at HQ Site Quail Botanical Gardens Landscape Contest Landscape Workshops Conservation Ambassadors Champions in the communities Hardship request committee Outreach/Education – Focus on Outside Use and on Communication

Conservation Programs

Regional incentives

WBICS, Turf Replacement, nozzles, audits

Demonstration garden at HQ Site

Quail Botanical Gardens

Landscape Contest

Landscape Workshops

Conservation Ambassadors

Champions in the communities

Hardship request committee

Outreach/Education Customer Survey Results 62% recognize urgency 86% find OMWD credible 51% need more detailed conservation information 59% willing to make changes outdoors Strong motivator: conserving now could prevent mandatory restrictions

Customer Survey Results

62% recognize urgency

86% find OMWD credible

51% need more detailed conservation information

59% willing to make changes outdoors

Strong motivator: conserving now could prevent mandatory restrictions

Conservation Pricing Temporary water pricing applied to all imported water commodity rates based on drought level. New rates at each stage of drought. Provide economic incentive to conserve water An effective tool to reduce customers “ discretionary” water use. Achieve revenue neutral condition. Utilize rate stabilization reserves to cover temporary budget shortfalls due to reduction in water sales. Price Elasticity of Water – Rates how much higher to achieve reduction?

Temporary water pricing applied to all imported water commodity rates based on drought level.

New rates at each stage of drought.

Provide economic incentive to conserve water

An effective tool to reduce customers “ discretionary” water use.

Achieve revenue neutral condition.

Utilize rate stabilization reserves to cover temporary budget shortfalls due to reduction in water sales.

Price Elasticity of Water – Rates how much higher to achieve reduction?

Conservation Based Pricing Follows OMWD drought ordinance Chart shows 9% rate increase effective February 1 st and the conservation based pricing model. *NOTE: Conservation pricing will be in addition to penalties passed through to customers for exceeding SDCWA / MWD allocations.

Follows OMWD drought ordinance

Chart shows 9% rate increase effective February 1 st and the conservation based pricing model.

Residential Sample Bill Calculation A typical residential customer with ¾” size meter using 18 units of water

Allocations Can come with Level 2 Each agency different in their implementation Some will look at past use Others give budgets OMWD will base on meter size so as to not penalize for past conservation

Can come with Level 2

Each agency different in their implementation

Some will look at past use

Others give budgets

OMWD will base on meter size so as to not penalize for past conservation

New Emphasis on Diversification of Supply Recycled Water Approximately 6% of current OMWD supply Golf Courses Fairbanks, Morgan Run, Crosby Future – RSF Farms Own and operate the 4S Ranch Water Reclamation Facility (1.6 mgd) Partnerships currently with City of SD Vallecitos WD Exploring future projects with SFID/San Elijo JPA RSF Community Services District Whispering Palms Fairbanks

Approximately 6% of current OMWD supply

Golf Courses

Fairbanks, Morgan Run, Crosby

Future – RSF Farms

Own and operate the 4S Ranch Water Reclamation Facility (1.6 mgd)

Partnerships currently with

City of SD

Vallecitos WD

Exploring future projects with

SFID/San Elijo JPA

RSF Community Services District

Whispering Palms

Fairbanks

Desalination SD Desal Partners Subscribed for 5,000 AF IRWMP Grant-$2 million 10% of water supply in 2011 Any agency that can go this route is now looking Diversification of Supply

Desalination

SD Desal Partners

Subscribed for 5,000 AF

IRWMP Grant-$2 million

10% of water supply in 2011

Any agency that can go this route is now looking

How does this effect North County There will be less water and it will cost more Hits at the same time as state budget/economic crisis Potential loss of property tax revenues Recycled Water exempt from restrictions Potable water cutbacks will effect residents and businesses alike This is not short term.

There will be less water and it will cost more

Hits at the same time as state budget/economic crisis

Potential loss of property tax revenues

Recycled Water exempt from restrictions

Potable water cutbacks will effect residents and businesses alike

This is not short term.

Questions?