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OTHER TREATED WATER RATES Recharge Fee: The annual rate schedule includes a recharge fee for retailer pumping beyond their respective independent/groundwater pumping quota. Staff has reviewed the Recharge Fee as part of the Cost of Service Study. The Recharge Fee applies only when Retailers exceed their respective groundwater pumping quota (GPQ). When Retailers pump beyond their GPQ, they are accessing Zone 7's water supply. Therefore, the recharge fee is being revised to capture the entire cost of Zone 7's water system (i.e. treated water rate) less the costs of chemicals and power, which are not incurred by Zone 7 in the process of recharging the basin. Historically, this fee has been rarely used and then only for small quantities since Retailers generally do not exceed their independent quota. The fee has been applied once in the past five years. The adopted rate for CY 2018 proposed rates for CY 2019, CY 2020, CY 2021 and CY 2022 are shown in the table below: Calendar Year 2018 2019 2020 2021 2022 Adopted Proposed Proposed Proposed Proposed Recharge Fee per AF $870 $1,380 $1,455 $1,468 $1,471 In-Lieu Water Rate: In the event staff concludes that surplus surface water is available and that it would be cost-effective to offer it to retailers at a reduced rate to achieve groundwater management objectives, in-lieu treated water could be offered. In-lieu water is treated water that the Retailers can purchase from Zone 7 instead of pumping their respective GPQ. This rate was established in 1993 to encourage artificial recharge when surplus surface water is available. The current rate for CY 2018 is$138 per AF. The rate is based on the power and chemical costs at the Del Valle and Patterson Pass Water Treatment plants and is proposed at$103 per AF CY 2019,CY 2020,CY 2021 and CY 2022. Temporary Treated: The need for temporary services stems from the inability of customers to obtain water in the outlying areas of the valley. The use of these services is limited. The proposed Temporary Treated Water rate is equivalent to the treated water volume-based rate plus the weighted fixed charge. Calendar Year 2018 2019 2020 2021 2022 Adopted Proposed Proposed Proposed Proposed Temporary Treated Water per AF $1,446 $1.451 $1,538 $1,625 $1,725 Staff recommends that the Board adopt the attached resolution approving the proposed treated water rates for CY 2019,CY 2020,CY 2021 and CY 2022. ATTACHMENTS: 1. Board Resolution 2. Attachment A-Cost of Service Study Executive Summary 3. Attachment B-Asset Management Plan Board Resolution 10