Wednesday, December 9, 2015

You Don't Believe What Agriculture Pays for Water?


...for GVW's chlorinated--and soon to be filtered--water?

To put it simply, the more they use (without going over their allocation), the cheaper their per cubic metre cost is.

Yup.

First, the rules:
Agricultural allocation under the 2015 Water Rates Bylaw 2672 here, is described as:


Allocation means the amount of water assigned to a property by the RDNO for irrigation purposes. The allocation is measured in hectares, and determines the maximum instantaneous flow rate permitted to the property, and the maximum total volume of water permitted per irrigation season.
1 acre of water = 0.404686 hectare

Agriculture pays $66.86/Q, per hectare of the property's allocation (click graphic to zoom):



Yes, agriculture is metered, but only for the purpose of ascertaining if/when a farm property's allocation is exceeded during the ~5 month annual irrigation season.  Tiered over-consumption rates then kick in as follows: 



There are no other agricultural water fees.

We'll do two examples where, for ease of comparison, each farm has 10.0035 acres allocation.

Farm A:
10.0035 acres allocation = 22,275 m3 allowable annual use.
If Farm A uses 22,000 m3, the Q allocation fee $66.84 x 4Q is $267.44 x 4.05 ha = $1,083.13.
$1,083.13 / 22,000 = 2,674.00 / 22,000 = $0.049 / m3

But, say it's a wet year:
If Farm A uses 11,000 m3, the Q allocation fee $66.84 x 4Q is $267.44 x 4.05 ha =$1,083.13.
$1,083.13 / 11,000 = $0.098 / m3


$1,083.13 is Farm A's total annual water bill, whether they use 22,275 m3 or 11,000 m3.
Period.
No base fee, no consumption charge because they didn't go over allocation.

Is it any wonder that Zee Marcolin, GVW Manager, said this at the December 3rd, 2015 SAC meeting when discussing Water Conservation:
"There's no hit to our revenue when ag conserves."
Zee Marcolin, GVW Manager

Farm B:
But it's a very dry year, and Farm B goes over allocation by 2,004 m3:

10.0035 acres allocation = 22,275 m3 + 2,004 = 24,279 m3

Farm B uses 24,279 m3, the Q allocation fee is $66.84 x 4Q is $267.44 x 4.05 ha = $1,083.13.
Plus Tier A (under 10% over-allocation) = 2,004 m3 x $.30/m3 = $601.20.  Grand Total $1,684.33
$1,684.33 / 24,279 = $$3,275.00 / 24,279 = $0.069 / m3

Result:  Farm A, in a wet year, uses 11,000 m3 water = $0.098 / m3
whereas in a full-use allocation year 22,000 m3 water = $ 0.049 / m3

Result:  Farm B, using 2,004 m3 over allocation, cost per cubic meter = $0.049

Source:  Agriculture rates are on page 9 of Bylaw link (above).

Then...something peculiar occurs that only Greater Vernon Water officials can explain (because it's nowhere on the rate sheet).

Both Farm A and Farm B would be eligible for rebates for domestic use (540 properties receive $269 per year and 650 properties receive $106.88 annually), further decreasing their m3 cost).


As the Stakeholder Advisory Committee deliberates, have they heard this compelling quotation by a member of the area's pioneer farming family:


“The untreated pressurized agricultural water system
put in place some 40 years ago still meets
the industry’s present and future needs.”
      Jamie Kidston, (Coldstream Corner “Agricultural Water Rates” July 17, 2015.)


Back to consumption examples.
Why was the odd amount 10.0035 acres (4.05 ha) allocation used for the example?
Because that's the water allocation for Highlands' Golf (non-farm) irrigation.

Let's look at only the 2014 Highlands Golf irrigation costs:  


2014 irrigation cost = $1.05 / m3 (despite what it says below....)
(plus clubhouse meter plus residence meter)


Consumption as a percentage of Highlands Golf allocation is shown below:



Within 3 years, the non-potable commercial irrigation category is being cancelled by GVW, at which time six commercial irrigators will be at a much higher rate for irrigation.

Whether or not you're a golfer, whether or not you agree that there's little difference between farm and golf course irrigation, you may agree that GVW's irrigation rates are beyond incomparable with farm irrigation rates.






"Gored and impaled," attests Kia.

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