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General Services Director Ingram presented the staff report and reported on the current two-year water plan (1993-1995) and presented the staff report recommendations: 1) residential account bills for 10 or fewer units of water in a billing period shall remain the same as currently through June 30, 1995; 2) expand residential "lifeline" amount from 5 units to 10 units per billing period; 3) reduce service zones 1, 2, 3 and 5 lifeline units from $1.21 to $0.84, and Emerald Lakes Hills Zone 4 lifeline rate from $2.30 to $1.93. Director Ingram described the Subcommittees principles and direction to staff, the positive reserve fund balance, the importance of conservation, drought predictions for next year, and the expected increase in water costs from the San Francisco Water Department. In response to Council questions, Director Ingram explained that future water rationing would not be based on previous usage. He advised that a new rationing plan would probably be based on a per capita basis, and encouraged everyone to conserve water now as they would not be penalized in the future for prudent water use today. Director Ingram advised that all residents will be notified of the water conservation information and devices available from the City, and encouraged everyone to conserve water. 2) Mayor Buchan opened the public hearing at 8:02 P.M. 3) Mayor Buchan called upon those speakers who submitted speaker's cards and asked if anyone else wished to speak. Bill Korbholz, Director Emerald Lake Homeowners Association, Woodside, California, submitted a letter of support for the proposed water rates amendment, but expressed concern regarding the widening rate gap between ELH and non-ELH residential water customers. Mr. Korbholz stated his Association "will continue to work with Redwood City to evolve a rate structure which is fair and equitable to all customers." (Letter on file in the City Clerk Department.) Jack Anthony, Chairman of the Senior Affairs Commission, thanked General Services Director Ingram for coming to a Commission meeting to explain this amendment and answering questions regarding replacement of water lines. Diane Howard, Housing and Human Concerns Committee Chairwoman, whose husband is a member of the Water Appeals Board, thanked the Council and Subcommittee for expanding the lifeline plan from 5 to 1 0 units and described how much this will mean to people on fixed incomes, and thanked the Council for its focus on water conservation. 4) MIS: GASP ARINIISTEINFELD TO CLOSE THE PUBLIC HEARING Motion carried by unanimous voice vote and hearing closed at 8:07 P.M. MINUTE BOOK NO. 52 Regular Meeting Minutes Page No. 278 June 13, 1994 Page 4 .