Modesto Irrigation District blunts water rate hike for some

Modesto-area farmers will pay more for Tuolumne River water this year, irrigation leaders decided Tuesday, but they blunted a proposal to significantly increase rates for those not getting water while reserving future rights.

Some customers in standby mode now can leave the district regardless of parcel size or location, the Modesto Irrigation District board also decided Tuesday.

The board additionally revived water-transfer programs to help farmers cope with drought and this season’s historic low deliveries of only 16 inches of water per acre. With no recent rainfall, district officials decided to start filling canals April 5, meaning some growers can begin watering April 7.

After much debate, the board agreed to begin two such programs along with the start of irrigation season rather than delay until June, giving farmers more flexibility in crop planning. Applying for open-market farmer-to-farmer sales and district-managed transfers for the fixed price of $300 per acre-foot, whether buying or selling, can begin immediately.

Another plan to have MID buy groundwater from private wells will be revised in hopes of attracting more participation than last year. The board should vote on that proposal April 7.

A controversial proposal to change some irrigation rules, including losing water rights for denying ditch tenders access to private property at any time, will be hashed over again at special grower meetings set for Thursday and Tuesday.

The rate increase features a significant restructuring of MID’s water price formula. From now on, farmers will pay a fixed charge of $40 per acre, plus a certain amount based on volume used; those taking less than 24 inches – which is everyone this year, thanks to the 16-inch cap – will pay $1 per acre-foot.

“The state’s going to kill us when they find out we’re getting water for $1 an acre-foot,” predicted farmer Dave Wheeler. Because thirsty buyers are known to offer hundreds and even thousands of dollars per acre-foot, some board members agreed that the new volumetric pricing looks bad without context.

The rate increase will help move MID toward a goal of charging for the true cost of service, officials said. The district’s electricity customers overpay about $44 million each year, with the extra money repaying debt, boosting savings and subsidizing the water side.

A staff proposal would have raised annual water revenue to $3.24 million, or 17.2 percent of MID’s true cost to deliver water.

But some customers who don’t receive water complained at the idea of their “facilities and maintenance” fees rising from $16.50 to $40 an acre under the proposal – the same fixed fee paid by those getting water.

“I don’t think I should be penalized for the water I’m not using,” said Bob Saso, who has not farmed a piece he owns north of Modesto for 18 years.

The board settled on charging $20 an acre in standby fees for owners of roughly 4,000 acres preserving the right to receive water in the future. That will lower expected water revenue this year to $3.16 million, or 16.8 percent of true cost for delivering water.

Several farmers and a couple of attorneys praised innovative programs introduced last year to help contend with drought, especially farmer-to-farmer sales and fixed-price transfers. The board agreed to continue both this year, with minor modifications.

Staff members reworked the private pumping program, however, which attracted only three participants last year. Under terms coming to a vote April 7, pump owners would not have control once it’s turned over to MID, which would pay power costs to run pumps and would give the owner about 100 acre-feet for every 900 the district pumps.

Virtually every MID farmer hoping to grow a crop this year will augment the paltry 16-inch allotments by leaning heavily on groundwater or participating in district transfer programs. Grower Edwin Genasci said his corn might scrape by with only 30 inches, but usually needs about 40.

Last year, the district lost about $350,000 by paying some growers to forgo allotments and not finding enough buyers to take it. Board member Jake Wenger suggested giving such fixed-price transfers, called by the district its “allocation return program,” more of a chance to succeed by delaying the more popular farmer-to-farmer program until June, but nearly all speakers in the audience asked for more flexibility.

“No one can irrigate on 22 inches and survive,” Wheeler said. “We need to get this in place as fast as we can. I need to sleep” with peace of mind, he said, and the board agreed.

Some standby customers have objected to rules allowing them to quit MID services only if they have less than 11/2 rural acres or less than five urban acres, MID General Manager Roger VanHoy said. The board agreed on a 4-1 vote to do away with such restrictions; board member John Mensinger dissented, saying he would prefer more information and time to reflect.

Grower meetings called to discuss proposed revisions to irrigating policy are set for 9 a.m. Thursday at 151 G St. in Waterford, and at 5:30 p.m. Tuesday at MID headquarters, 1231 11th St., Modesto. The April 7 board meeting will begin at 9 a.m., 1231 11th St., Modesto.

This story was originally published March 24, 2015 at 5:33 PM with the headline "Modesto Irrigation District blunts water rate hike for some."