AgdaPkt 2016-06-13 Interview and Joint SA PFA

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7.A. - Page 4 In consideration of the proposed water rate and charge increases, staff initiated the following public notification activities: • Published three display ads in the Daily News with information about the proposed rate increases along with the date, time, and location of the June 13, 2016 public hearing. • Held two community meetings that provided an in-depth overview of why rates are increasing and information about the rate protest process. • Mailed over 20,000 notices of the increase according to Proposition 218 notification processes on April 26, 2016. • Posted notices on the City's social media accounts. • Posted all of the above information along with frequently ask questions on the City's website. To date, the City has received 13 letters protesting the water service charge increases. ALTERNATIVES According to the requirements of Proposition 218, the City must receive protests from more than fifty percent of current property owners and rate-paying customers on record to negate the proposed rate increases. The City Council could reject or revise the recommended rate increases regardless of the number of protest letters received. FISCAL IMPACT If Council approves the recommended changes, an average Redwood City residential customer's monthly water utility bill will increase by approximately 6.8% per year for the next three fiscal years. ENVIRONMENTAL REVIEW This ordinance is statutorily exempt from the California Environmental Quality Act (CEQA) review pursuant to Public Resource Code section 21080(b)(8). The City Council finds that the water service charges are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits, purchasing or leasing supplies, equipment, or materials, meeting financial reserve needs and requirements, and obtaining funds for capital projects necessary to maintain service within existing service areas. TERENCE KYAW ASSISTANT PUBLIC WORKS DIRECTOR