Water Supply Shortage Issues on the Retail Level - Kimberly Thorner, general manager, Olivenhain Municipal Water District - Presentation 1/3 Panel Discussion: Local Approaches to Coping with Water Shortages

1. Water Supply Shortage Issues on the
Retail Level ‐ Olivenhain Municipal
Water District
Kimberly Thorner, General Manager
Conservation Summit
June 2, 2009

2. Water Supply Shortage
We all face the same challenge
Will use different tools to achieve the end goal
Each retail agency customer bases are a bit different
Geographically; Financially, and land use
Traditional Tools
Outreach/Education
Rebate Programs
Audits
Mandatory Water Use Restrictions – The Hammer
Fines & Penalties
No New Meters – The Saw
No annexations – The Chisel
Drought Rates – The Screwdriver
Allocations – The Bucket
Outreach Programs & Diversity of Supply ‐ New Tools

3. Moving to Level 2 Mandatory
July 1st
Mandatory Water Use Restrictions – The Hammer
Illegal to waste water; watering days
Fines & Penalties
Enforcement via existing employees
Hotline
Already in place and working
Door hangers
Achieve conservation just off of the move to “mandatory”

4. The Question
“Why should I be forced to conserve
when new houses are still being built?”

5. No New Meters
No new meters/no statements of ability to serve in Level 2
Exceptions
• Valid, unexpired building permit
• Threat to human health & safety
• Voluntary demand off‐set fee
Identified five recycled water projects
Calculate cost per acre foot of those projects
$4,500 per EDU (3/4” meter) offset.
San Diego Water Usage

6. Drought Rates
Study conducted in October 2008
Temporary pricing
Based on drought levels
Overlay temporary drought rates on current rates to
calculate rates for each stage of drought.
Provide economic incentive to conserve water.
Based on price elasticity of water
How much do you have to raise cost to induce a desired percent
reduction
Achieve revenue neutral condition
Customers conserve = budget neutral
Customers waste = increased revenue
Spend on new water supply and conservation programs

7. Revenue Shortfall/Drought Rates
Increase from Non-Drought Rate
Tier
Level 1 Level 2 Level 3 Level 4
RESIDENTIAL
Tier 1 (0 - 6 units) 0% 10% 20% 35%
Tier 2 (7 - 43 units) 5% 25% 55% 65%
Tier 3 (over 43 units) 15% 40% 65% 75%
COMMERCIAL/IRRIGATION
"B" (Base) 5% 25% 55% 65%
"C" (Over Base) 15% 40% 65% 75%
OTHER
Agricultural 5% 25% 55% 65%
Temporary Construction 15% 40% 65% 75%
Raw Water 15% 40% 65% 75%
Recycled 0% 0% 0% 0%

8. Residential Sample Bill Calculation
A typical residential customer with ¾” size meter using 18 units of water
System Consumption Commodity Rate
Rate Access Commodity
Scenario
Total Bill
Charge
+ IAC HCF Decrease Tier 1 Tier 2
Non-Drought $22.96 18.00 0% $1.58 $2.43 $38.64 $61.60
Level 1 $22.96 16.56 8% $1.58 $2.55 $36.41 $59.37
Level 2 $22.96 14.58 19% $1.74 $3.04 $36.52 $59.48
Level 3 $22.96 12.06 33% $1.90 $3.77 $34.25 $57.21
Level 4 $22.96 10.80 40% $2.13 $4.01 $32.03 $54.99

9. Diversity of Supply
Short Term
780 AF of new recycled supply in 2009
Partnerships with Vallecitos and City of SD
Converting Golf Courses
Fairbanks, Crosby, Morgan Run, Encinitas Ranch done
RSF Farms this Fall
Bridges ‐ long term
Long Term
Additional recycled ‐ expand the purple pipe
Partners in the Poseidon Desalination Plant ‐ 2012
OMWD New Brackish Desal Feasibility Study

10. New Program
Partnering with CSUSM Psychology Department
Answer the question – How much water do I use?
New feedback tool – Test to see if it causes
conservation
Feedback meters linked into a real time computer
software in the customers home to instantly see their
water consumption
Compare to historical use, other customer averages,
dollar cost
Eventually on the fridge (I may call it the Water Diet!)

11. Summary
We are all in this together and face the same
challenges
If the tools don’t work, we will try new and different
ones
We ultimately need to reshape our water ethic as this
is not a short term problem.