SR-6-O (20)
CM:KV:ckl.pub.manager/mwdstdby
Council Meeting: March 3, 1992
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Mfl,D., ,r_~.,
~..: 1992
Santa Monica, California
TO: Mayor and city Council
FROM: city Staff
SUBJECT: Recommendation to Adopt Resolution Exercising Direct
Payment Option to Metropolitan Water District (MWD)
Related to Water "Standby Charge"
INTRODUCTION
This report recommends that the City Council adopt the attached
resol ution to exercise a direct payment option for the City to
pay a Metropolitan water District (MWD) water "standby charge".
BACKGROUND
The Board of Directors of the Metropolitan Water District adopted
a resolution of intention to impose a water standby charge on
February 11, 1992.
The charges are designed to create a new revenue mechanism which
will
ensure a stable revenue stream to meet fixed costs and
infrastructure demands. The current MWD water revenue structure
is dependent on variable water sales. However, fixed operating
costs total approximately 75% of the MWD's expenses.
The "standby charge" is designed to collect revenue from all
parcels wi thin Metropol i tan's member agency service area. The
water standby charge would equal $5 per year per acre of land,
or $5 per year per parcel of land less than an acre.
In Santa
Monica, this equates to $64,135 in FY 1992-1993.
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MAR 3 1992
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At the request of the Los Angeles Department of Water and Power,
MWD is offering members an option to make direct payments to
Metropolitan on behalf of property owners in lieu of MWD imposing
the standby charge on real property within an agency's territory.
To exercise this option the governing body of the member agency
must adopt a binding resolution on or before March 3, 1992 to
certify its intention to make such payments.
staff recommends that the City Council elect the direct payment
option and then incorporate the charge into the city's water rate
structure which allows for an equitable distibution of these
costs to water users.
RECOMMENDATION
staff recommends that the City council adopt the attached
resolution to exercise a direct payment option to MWD related to
water standby charges.
Prepared by: John Mundy, utilities Manager
Kate Vernez, Senior Management Analyst
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.
CM:KV:ckl.pub.manager/mwdreso
city Council Mtg.-March 3, 1992
Santa Monica, California
RESOLUTION NUMBER 8365(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA
TO ELECT TO PAY IN LIEU OF
IMPOSITION OF STANDBY CHARGE
WHEREAS, The Santa Monica City council hereby elects and
commits to payout of funds available for that purpose the entire
amount of the water standby charges which would otherwise be
levied by the Metropolitan Water District of Southern California
(MWD) upon land within the City of Santa Monica for fiscal year
1992-1993;
WHEREAS, any such water standby charge shall not exceed
five dollars ($5) per acre per year for each acre of land or five
dollars ($5) per year for each parcel of land less than an acre
within the city of Santa Monica;
WHEREAS, payment to MWD shall be made in installments at
the time and in the amounts as established by MWD;
WHEREAS, the utilities Manager shall promptly notify the
controller of MliD of this action by causing personal delivery to
be made of a certified copy of this Resolution together with
identification of the source of funds to be used to make the in
lieu cash payments;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1.
The City Council hereby elects and commits
to payout of funds available for that purpose the entire amount
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,
of the water standby charges which would otherwise be levied by
the Metropolitan Water District of Southern California (MWD) upon
land within the city of Santa Monica for fiscal year 1992-1993.
The City Manager shall negotiate and execute all agreements and
other documents as are necessary to carry out the purposes of
this Resolution.
SECTION
2.
The city Clerk shall certify to the
adoption of this Resolution, and thenceforth and thereafter the
same shall be in full force and effect.
APPROVED AS TO FORM:
, ..-.4~ _Jiilt,.,... ~
C~. U
ROBERT M. MYERS
City Attorney
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.,
Adopted and approved this 3rd day of March, 1992.
/J H~/
Mayo~ro Tempore
I hereby certify that the foregoing Resolution No. 8365(CCS)
was duly adopted by the city council of the City of Santa Monica
at a meeting thereof held on March 3, 1992 by the following
Council vote:
Ayes: Councilmembers: Holbrook, Katz, Olsen, Vazquez,
Zane, Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Genser
ATTEST:
AdA~
/" - City'Clerkl