Ord 0223 02/2023ORDINANCE NO. 223
AN ORDINANCE OF THE VALLECITOS WATER DISTRICT
REPEALING ORDINANCE NO. 222 AND ESTABLISHING RATES,
RULES, AND REGULATIONS FOR WATER SERVICE
BE IT ORDAINED by the Board of Directors of the Vallecitos Water District as follows:
SECTION 1: The Board of Directors finds and determines that the following facts are
true and correct:
Section 1.1: The Vallecitos Water District ("District") has the authority to establish
water rates and charges for services provided within the District boundaries in accordance with
Water Code Section 31024, et seq.
Section 1.2: At least 45 days prior to September 28, 2022, public notice was
provided detailing the need for rate adjustments and specifying uses of revenues generated
from the rate adjustments.
Section 1.3: On September 28, 2022, the Board of Directors accepted the Cost -
of -Service Study (COSS) report approving water rates to be effective October 1, 2022, as well
as the methodology for future rate increases to be effective no earlier than January 1st each
calendar year for years 2023, 2024, 2025 and 2026, subject to annual Board approval. On
February 1, 2023, the Board of Directors voted in favor of the proposed water rate changes for
calendar year 2023 presented at the February 1, 2023 meeting and finds that it is in the best
interests of the District and the customers served to approve the changes in rates contained in
this Ordinance.
Section 1.4: The rates for water service fees set forth in this Ordinance are
comprised of two components — the Water Commodity Charge, and the Ready -To -Serve
Charge. The Water Commodity Charge recovers the variable costs of providing water service,
as well as a portion of the fixed costs of providing such service. The Water Commodity Charge
includes three tiers, pursuant to which increased rates are charged for increased water usage
to account for increased District costs, such as costs for water supply, peaking, and
conservation. For customers other than agricultural customers, or temporary construction
customers, tier widths are determined based on the size of the meter serving the property to
account for greater reservations of capacity purchased in the system, as well as higher rates
for the Ready -To -Serve Charge. The Ready -To -Serve Charge recovers a portion of the fixed
costs of providing water service and is determined based on the size of the meter serving the
property, or as otherwise provided herein. The Ready -To -Serve Charge is calculated to include
both the District's fixed meter costs, and the fixed charges imposed on the District and passed
through to customers by the San Diego County Water Authority (Water Authority).
Section 1.5: The District's rates for water service charges are calculated to
recover the costs of the District in providing water services and to proportionately allocate those
costs among the water customers. The revenues derived from the water service charges will
not exceed the funds required to provide water services and shall be used exclusively for
providing water service. The water service charges will not exceed the proportional cost of the
services attributable to each parcel upon which they are imposed. The water service charges
Ordinance No. 223 Page 2
will not be imposed on a parcel unless the water services are actually used by, or immediately
available to, the owner of the parcel.
SECTION 2: In accordance with the California Environmental Quality Act (CEQA)
Guidelines Section 15061, the Board of Directors ordains that the water rate fees established
by this ordinance are exempt from CEQA for the following reasons:
The water rates are not a "project" as defined by Guidelines Section 15378; and
2. The project is exempt in accordance with Guidelines Section 15273(1), 15273(3),
and 15274(4); and
3. The activity will not have any significant effect upon the environment pursuant to
Guidelines Sections 15061(b) (3).
SECTION 3: The Board of Directors of the District orders and directs that the foregoing
exemptions and reasons be made a part of the Notice of Exemption and that the Notice of
Exemption be filed with the County Clerk of the County of San Diego.
SECTION 4: Readv-To-Serve Cha
Section 4.1: Wholesale Fixed Charges: The Water Authority is the wholesale
water purveyor. The Water Authority establishes fixed monthly charges. The total Ready -To -
Serve Charge includes both the District's internal fixed cost, as well as charges imposed on
the District and passed through to customers by the Water Authority.
Section 4.2: Ready -To -Serve Charge Rate Schedule:
Monthly Ready -to -Serve (RTS) charges are as follows and shall take upon adoption of this
ordinance. All rates are at or below the maximum allowable amounts.
VWD and SDCWA Ready -to -Serve (RTS) Rates - Fixed Charges
Meter Size
5/8"
3/4"
1"
11/2"
2"
3"
4"
6"
10"
(1) Multi-
Dwelling
(z) Fire -
line
SDCWA (Pass-through)
$10.49
$10.49
$15.74
$41.96
$68.19
$104.90
$157.35
$314.70
$734.30
SDCWA (IAC Pass-through)
4.24
4.24
6.36
16.96
27.56
42.40
63.60
127.20
296.80
VWD Meter and Billing 23.26 23.26 33.34 83.72 134.10 204.62 305.37 607.63
1,413.64
TOTAL RTS Rate
$37.99
$37.99
$55.44
1 $142.64
1 $229.85
$351.92
1 $526.32
1$1,049.53
1 $2,444.74
1 $10.23
1 $8.23
The table below sets forth the maximum rates for the District's share of the Ready -To -Serve
Charge. The total Ready -To -Serve Charge imposed on customers in any year will be calculated
annually by adding the Water Authority's fixed charges imposed on the District to the rates set
forth in the table below. The District is further authorized to pass-through any increases to the
Water Authority's share of the Ready -To -Serve Charge above the amounts set forth in the
preceding table, provided the District may not increase the Ready -To -Serve Charge as a result
of such pass-through by more than 6.5% in any calendar year. Rates shall become effective
no sooner than January 1 of each calendar year.
Ordinance No. 223 Page 3
MAXIMUM VWD Meter & Billing Fixed Charges (VWD Portion of RTS) *
10/1/2022
1/1/2023
1/1/2024
1/1/2025
1/1/2026
Meter Size
5/8"
$
22.59
$
23.49
$
24.43
$
25.41
$
26.43
3/4"
$
22.59
$
23.49
$
24.43
$
25.41
$
26.43
1"
$
32.38
$
33.68
$
35.02
$
36.42
$
37.88
11/2"
$
81.30
$
84.55
$
87.93
$
91.45
$
95.11
2"
$
130.23
$
135.44
$
140.86
$
146.49
$
152.35
3"
$
198.72
$
206.67
$
214.94
$
223.53
$
232.47
4"
$
296.57
$
308.43
$
320.77
$
333.60
$
346.94
6"
$
590.12
$
613.72
$
638.27
$
663.80
$
690.36
10"
$1,372.92
$1,427.84
$1,484.95
$1,544.35
$1,606.12
Multi -Dwelling
$9.99
$
10.39
$
10.81
$
11.24
$
11.69
Fireline
$8.04
$
8.36
$
8.70
$
9.04
$
9.41
* This is VWD's portion of the monthly fixed Ready -to -Serve (RTS) Charge. The
total RTS charge will include SDCWA pass-through charges
Section 4.3: Additional Living Unit: In addition to the monthly Ready -to -Serve
Charge based on meter size, on meters that serve more than one dwelling unit, there will be a
monthly Multiple Dwelling Unit Charge as noted in the preceding tables for each dwelling unit
exceeding the first one.
SECTION 5: WATER COMMODITY CHARGE:
Section 5.1: Water Commodity Charges: The District obtains 100% of its potable
water supply from the Water Authority. The Water Commodity Charges recover the rates
imposed on the District by the Water Authority, as well as additional costs related to water flow,
conservation, and capital replacement. The total Water Commodity Charge is calculated by
adding the wholesale water commodity charges imposed on the District by the Water Authority
and passed through to customers, with the District's internal costs for delivering water.
Section 5.2: Water Commodity Charge: In addition to the monthly retail
Ready -to -Serve Charge, all water delivered through a water meter for all classes of service will
be charged a Water Commodity Charge, which is calculated based on the amount of water
delivered to each meter and includes both the District's internal costs and the wholesale water
purchase costs from the Water Authority.
Section 5.3: Tier Schedule: Tier ranges by meter size in units of water are
effective October 1, 2022: One unit of water equals 748 gallons or 100 cubic feet of water.
Ordinance No. 223
WATER COMMODITY TIER STRUCTURE
EFFECTIVE 10/1/2022
Meter Size
Inches
Units of Water (HCF)*
TIER 1
TIER 2
TIER 3
3/4" & 5/8"
1 - 6
7-21
>21
1"
1-16
17-78
>78
11/2"
1-43
44-196
>196
2"
1-85
86-335
>335
3"
1-3421
343-977
>977
4"
1-342
343-977
>977
6"
1-722
723-1955
>1955
10"
1-722
723-1955
>1955
Agriculture
All Usage
Construction
I
JAII Usage
* HCF is one Hundred Cubic Feet or 748 gallons
Section 5.4: Rates for Water Commodity Charge: Rates for the Water Commodity
Charge per unit of water (HCF) are as follows and shall take effect upon adoption of this
ordinance. All rates are at or below the maximum allowable amounts.
2023 WATER COMMODITY
RATES
Tier 1
Tier 2
Tier 3
SDCWA Pass-Through(l)
$ 4.72
$ 4.72
$ 4.72
VWD Internal Costs
0.11
0.74
4.20
Discretionary Offsets (Z)
((). m)
(U.l')
0.00
Total Commodity Rates
$ 4.04
$ 5.21
$ 8.92
(1)Wholesale Pass -though includes all increases of puchased water
supplies billed from San Diego County Water Authority
(Z) Discretionary offsets include all discretionary revenue such as property
tax and RDA revenues used to offset specific costs
The table below sets forth the maximum rates for the District's share of the Water Commodity
Charge in future years. The Water Commodity Charge imposed on customers in any year will
be calculated annually by adding the Water Authority's charges for water imposed on the
District to the rates set forth in the table below. The District is further authorized to pass-through
any increases to the Water Authority's share of the Water Commodity Charge above the
amounts set forth in the preceding table, provided the District may not increase the Water
Commodity Charge as a result of such pass-through by more than 6.5% in any calendar year.
Rates shall become effective no sooner than January 1 of each calendar year.
Ordinance No. 223 Page 5
MAXIMUM VWD Portion of Commodity Rate *
10/1/2022
1/1/2023
1/1/2024
1/1/2025
1/1/2026
Tier 1 $ 0.11
$ 0.11
$ 0.12
$ 0.12
$ 0.13
Tier 2 $ 0.72
$ 0.75
$ 0.78
$ 0.81
$ 0.84
Tier 3 $ 4.07
$ 4.23
$ 4.40
$ 4.58
$ 4.76
* This is VWD's portion of the per unit commodity rate. The total
commodity rate will include SDCWA pass-through charges.
Section 5.5: Drought Rates: In the event of drought conditions or mandated water
cutbacks, the District continues to incur fixed costs while receiving reduced revenues. The
District's Board of Directors approved Ordinance 219 on November 17, 2021. Within
Ordinance 219, Drought Rates for the commodity charge then in effect would be adjusted as
necessary to achieve full cost recovery of the District's revenue requirement. The table below
shows the maximum additional charge that may be added to the per unit (HCF) Water
Commodity Charge (referenced in Section 5.4) and implemented by the District during various
levels of mandatory reductions in water usage.
DROUGHT RATES
Drought
Level
Mandatory
Cutback
Add'I Rate Per
Unit HCF
1
10%
$ 0.26
2
20%
0.49
3
30%
0.78
4
40%
1.12
5
50%
1.53
6
60%
2.07
Section 5.6: Special Agricultural Water Rate: Agricultural customers that are
certified by the District as meeting the Water Authority's requirements for their Permanent
Special Agricultural Water Rate (PSAWR) program receive a discount, as defined by the Water
Authority, on each unit (100 cubic feet) of agricultural water metered.
Agricultural customers not participating in PSAWR are eligible for the District's Certified Non -
Participating Agricultural Water Rate (CNPAWR) which is set at Tier 2.
For customers with domestic and agricultural water combined through the same meter, the first
26 units of usage are considered domestic, therefore the reduced rates do not apply to the first
26 units of use.
In order to be eligible for participation in either the PSAWR of CNPAWR program, the
customer's meter and account must be in compliance with all District ordinances, resolutions,
rules, and regulations, as determined by the District.
Ordinance No. 223
0
SECTION 6: This Ordinance shall become effective upon adoption with rates effective April 1,
2023.
ORDINANCE NO. 222 IS HEREBY REPEALED IN ITS ENTIRETY. ALL OTHER
ORDINANCES, ARTICLES OR SECTIONS OF ORDINANCES, OR AMENDMENTS IN
CONFLICT HEREWITH ARE HEREBY REPEALED TO THE EXTENT OF SUCH CONFLICT.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Vallecitos
Water District at a regular meeting held this 1St day of February 2023, by the following roll call
vote:
AYES: BOYD-HODGSON, ELITHARP, GROSET, PENNOCK
NOES: HERNANDEZ
ABSTAIN:
ABSENT:
4-rvu� ��
aures Hern de resident
Board of Directors
Vallecitos Water District
ATTEST:
Glenn Pruim, Secretary
Board of Directors
Vallecitos Water District