Title
Discount Irrigation Water Rates for Urban Agriculture
Recommended Action
Move to approve the recommendation to establish a discounted irrigation rate for urban agriculture.
Report
Issue:
Receive a briefing on a proposal to establish a discounted irrigation rate for urban agriculture. Provide a recommendation on whether staff should proceed with the proposal.
Staff Contact:
Eric Christensen, Water Resources Director, (360) 570-3741
Presenter:
Eric Christensen
Background and Analysis:
The Public Works Water Resources Drinking Water utility (utility) is proposing to establish a discounted irrigation rate for “urban agriculture”.
The City of Olympia’s Comprehensive Plan goals and policies encourage local food production:
• Policy PL25.3 (Land Use and Urban Design)
Collaborate with community partners to ensure that everyone within Olympia is within biking or walking distance of a place to grow food.
• Policy PL25.4 (Land Use and Urban Design).
Encourage for-profit gardening and farming in the community.
• Policy PR9.1 (Public Health and Recreation).
Provide opportunities that promote a mentally and physically active lifestyle and healthy food choices, including participation in local food production.)
• Goal GL25 (Natural Environment).
Local Thurston County food production is encouraged and supported to increase self-sufficiency, reduce environmental impact, promote health, and the humane treatment of animals, and support the local economy.
• Policy PN8.7 (Natural Environment).
Reduce energy use and the environmental impact of our food system by encouraging local food production.
Olympia Municipal Code (Section 18.02.180) defines “agriculture” as the use of land for farming, dairying, pasturing and grazing, horticulture, floriculture, viticulture, apiaries, animal and poultry husbandry, and accessory activities, including, but not limited to, storage, harvesting, feeding or maintenance of equipment, and onsite sales of agricultural products, but excluding stockyards, slaughtering or commercial food processing. Irrigation water rates are set forth in Olympia Municipal Code Section 4.24.040. Irrigation water rates apply only to accounts with a separate irrigation water meter.
Staff proposes a fifty (50) percent discount in irrigation water rates for an urban agriculture sites meeting the following qualifications:
• The site has an irrigation water meter eligible for irrigation rates
• The site is predominately (50%+ by land cover) used for agriculture as defined by Olympia Municipal Code Section 18.02.180 (note exclusions).
• The site produces food or agricultural products for commercial sales, donation to food banks, or other consumption in the community.
Staff cross-referenced an inventory of urban agriculture sites (provided by the Thurston Conservation District) with City of Olympia irrigation water accounts. Table 1 (attached) presents those urban agriculture sites that currently have an irrigation water account along with their 2021 total irrigation water bill amounts. As the table indicates, not many sites would currently be eligible for an irrigation water rate discount. Many urban agriculture sites are served by irrigation wells. Total revenue for the existing sites in 2021 (a relatively hot year) amounted to just under $9,000. A fifty (50) percent discount in irrigation water rates would not have a significant impact on the utility’s revenues.
If staff proceed with development of a discount on irrigation water rates for urban agriculture, it will be further considered during rate setting discussions at the Utility Advisory Committee meetings in September and October 2022. If adopted, the irrigation rate discount would become effective in 2023.
Neighborhood/Community Interests (if known):
Homelessness is an existing and growing problem in Olympia. Olympians want a sustainable solution to homelessness, and broadly agree that our community must build more housing of all types for all incomes.
Options:
1. Provide a recommendation to staff to proceed with development of a discounted irrigation rate for urban agriculture. Include a recommendation for eligible housing types, qualifications for a discount, and the percentage of discount that should be considered.
2. Provide a recommendation to staff to not proceed with development of a GFC discount program for low-income housing.
Financial Impact:
As indicated in Table 1, a 50-percent irrigation water rate discount for urban agriculture would currently result in a loss of approximately $4,500 in annual revenue for the utility. Revenue losses can be expected to increase as additional sites qualify for a discount. Any revenues lost to a discount on irrigation water rates would need to be made up by other ratepayers and rate classes.
Attachment:
Table 1: Urban Agriculture Sites Potentially Eligible for an Irrigation Rate Discount