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7.B. - Page 2 <br /> • Rehabilitation and Reconstruction of Regional Wastewater Treatment Facilities - <br /> Redwood City's wastewater is conveyed to a regional wastewater treatment plant <br /> operated by SVCW. SVCW is in the process of completing a $790 million capital <br /> improvement program to rebuild and rehabilitate its wastewater treatment plant <br /> and wastewater transmission pipelines. Redwood City is responsible for <br /> financing about 48.6% of total project costs, based on the City's proportion of <br /> flow. <br /> • Replacement of Aging Sewer Collection System Pipelines - Many of the City's <br /> sewer pipelines are over 50 years old and are approaching the end of their useful <br /> lives. Rate increases will help provide funding for high-priority pipeline <br /> replacements and other capital improvements needed to support the continued <br /> provision of safe and reliable sewer service. <br /> Proactive sewer rate increases in past years have placed the sewer utility in a strong <br /> position to fund a large portion of these programs, allowing for minor inflationary <br /> adjustments to the sewer rate this period. Impacts to sewer bills will vary based on <br /> customer class. Residential customers are billed a fixed monthly charge for sewer <br /> service. Commercial customers will pay sewer usage charges billed based on customer <br /> class and metered water use, subject to a minimum monthly charge. <br /> Current&Proposed Sewer Rates <br /> Proposed Rates Effective on and <br /> after <br /> Current Sewer Rates <br /> August 1 July 1 July 1 <br /> 2016 2017 2018 <br /> Residential Sewer Rates <br /> Fixed Monthly Sewer Service Charge per Dwelling Unit <br /> Residential (with 1-9 Dwelling Units) $ 74.95 $75.11 $76.68 $78.24 <br /> Multi-Family(with 10+ Dwelling Units) $ 74.95 $67.60 $69.01 $70.42 <br /> Commercial/Non-Residential Sewer Rates(1) <br /> Sewer Usage Charges: Rate per hundred cubic feet(hcf)of metered water use <br /> Class A-Standard Strength, Low Flow $ 4.91 $ 5.75 $ 5.87 $ 5.99 <br /> Class B-Low Strength $ 5.52 $ 6.69 $ 6.83 $ 6.97 <br /> Class C-Standard Strength $ 6.15 $ 7.08 $ 7.23 $ 7.37 <br /> Class D-Mod-High Strength N/A $ 11.27 $ 11.51 $ 11.74 <br /> Class E-High Strength $ 14.93 $ 16.95 $ 17.31 $ 17.66 <br /> Minimum Monthly Chargee2) $ 74.95 $67.60 $69.01 $70.42 <br /> (1) Class A includes industrial accounts. Class B includes institutional/public accounts. Class C includes retail/commercial <br /> accounts and hospitals. Class E includes restaurants and supermarkets. Class D is a new sewer customer class for <br /> accounts with moderate-high wastewater strength, such as a result of a mixture of Class E uses and other uses on a single <br /> account. <br /> (2) Commercial customers currently pay a fixed monthly charge of$74.95 for the first 10 hundred cubic feet of billed usage. <br /> Under the proposed rates, commercial accounts will be billed sewer usage charges for all metered use, subject to the <br /> minimum monthly charge. <br /> The following table shows the impacts of the proposed sewer rates across a range of <br /> residential and commercial customers. Single family homes and other residential <br />