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1 <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Notice of Public Hearing on Proposed Water & Sewer Rate Increases <br /> <br />City Council Chambers <br />1017 Middlefield Road <br />Redwood City, California <br />Monday, June 13, 2016 at 7:00 p.m. <br /> <br />At the date, time and location shown above, the City Council of the City of Redwood City will hold a public hearing <br />on proposed increases to the City’s water and sewer rates. If approved, these increases will be phased in over <br />the next three years. The purpose of this notice is to describe the proposed rate increases and notify you of the <br />public hearing. <br /> <br />The proposed rates are designed to fund the operating and capital needs of the City’s water and sewer utilities <br />and equitably recover costs from all customers. With the proposed rates, the City’s combined water and sewer <br />rates are projected to remain in the middle range compared to other regional agencies. Water and sewer rates <br />are used only to pay for water and sewer expenses and cannot be used for any other purpose. <br /> <br />PROPOSED WATER RATES <br />Redwood City charges rates to its water customers to fund the cost of providing safe and reliable water service. <br />Redwood City is proposing to phase in a series of water rate increases over the next three years as shown on the <br />following page. The proposed increases over the next three years equate to an overall, average annual water <br />rate increase of approximately 6.8% per year. Impacts to water bills will vary based on customer class and volume <br />of metered water use. Water rate increases are proposed to eliminate annual budget deficits and pay for: <br /> Wholesale Water Rates Increases – The City purchases 100% of its potable water supply from the San <br />Francisco Public Utilities Commission (SFPUC). The SFPUC is in the process of completing a $4.8 billion <br />program of infrastructure upgrades and reliability enhancements to its regional water system. SFPUC has <br />doubled its wholesale water rates over the past five years and is projected to raise rates by an additional 42% <br />over the next five years. <br /> Replacement of Aging Water Distribution System Pipelines – The City maintains over 260 miles of water <br />system pipelines, many which are over 50 years old and are approaching the end of their useful lives. Rate <br />increases will help provide funding for high-priority pipeline replacements and other capital improvements <br />needed to support the continued provision of safe and reliable water service. <br /> <br />Each customer’s water charge includes two components: 1) a flat rate based on the type of customer and the <br />customer’s meter size, and 2) a consumption charge based on metered water use. Most residential customers <br />are billed on a bimonthly basis with each bill reflecting two months of basic service charges and two months of <br />metered water use billed according to the bimonthly tiers shown on the following page. Most non-residential <br />customers are billed on a monthly basis. <br />6.4.A. - Page 11