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3) Agree to implement some type of user-fee into the user policy of the Red Morton-Center; and 4) Add the above funds in the amount of $610,215 to the $5.6 million project budget establishing a new budget for the project of $6,210,215. APPROVED BY UNANIMOUS VOICE VOTE. MINUTE ORDER NO. 93-118 ------------------------------------------------------------------------------- A. Joint report from the Water and Sewer Policy committee and staff, recommending amendment of water rates, basic service charges and rate structure; (301-06) REPORT: Joint Recommendation from the Water and Sewer Policy Committee & Staff, Amendment of Water Rates, Basic Service Charges and Rate Structure, July 15, 1993 General Services Director Ingram thanked the Council Water and Sewer Policy Committee, Councilmembers Greenalch (chairman), Sanfilipo and Steinfeld, and Finance Director Ramchandani for their work in producing a long-range strategic plan for the water enterprise fund, including a complete overhaul of the basic monthly charges. Mr. Ingram discussed the "goal of fixed system costs being equitably shared by all customers regardless of water use, coupled with a conservation rate structure which is in compliance with the City's Urban Water Management Plan and which allows rates to be sensitive to the variable costs of water and energy." .--- Councilman Greenalch discussed the principles that guided the work of the Water and Sewer Policy Committee: 1) revenues and expenditures in balance; I 2) basic service charge equal to fixed costs; 3) equitable distribution of costs across entire water system; 4) water conservation rate structure; 5) on-going capital improvement program; 6) prudent system emergency reserve; and 1) continue support of economic growth and development in the City. Councilman Greenalch advised that the City had kept water rates artificially low by delaying capital improvement projects, and that would no longer be acceptable. General Services Superintendent Taylor, presented the new approach to I water rates structure so that changes in rates by Redwood City's supplier will not affect operational costs or financing. Discussion ensued. CONSENSUS: It was determined by Mayor Buchan that it was the consensus of the Council to accept the joint recommendations from the Water and Sewer Policy Committee and staff. MINUTE ORDER NO. 93-119 ---------------------------------------------------------------------------------- --.. Regular Meeting and Study Session Agenda MINUTE BOOK NO. 51 August 2, 1993 Page 9 Page No. 498 ,- - - - -- -- --- --- -- - ---,~ - -- - ------------ - - -- ---