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Councilman Greenalch, Chairman of the Council Water Committee, advised that the residents of the unincorporated areas whose water had to be pumped to that area paid a differential for two main reasons: 1) ! Redwood City residents pay property taxes to the City which are used to repair and upgrade the water system while residents in the unincorporated area pay property taxes to the County; and 2) the General Obligation Bonds used to build the water system were paid for by Redwood City residents. City Manager Everett advised that staff had worked with the residents of the unincorporated Emerald Hills area to arrive at the current rate I structure and differential, and would be glad to work with Mr. Hillerby on this issue. MEMO 9/14/93 c. Gary Kah, Chesterton Avenue, Redwood City, a water conservation specialist, Conservation Committee Member of the American Waterworks Association, and owner of a water rate structure business in Redwood City, addressed the Council and provided an overhead slide regarding: a rate structure based on conservation, allocation and equity - a cost I of service based rate, subject to conservation considerations and the I concept of "reasonable use." Mr. Kah stated the current staff proposal was a good first step in rethinking water rate structures in the future and offered to work with the City in establishing innovative programs. Councilman Greenalch described the Committee and staff discussions regarding conservation, allocation and equity and thanked Mr. Kah for : his expertise. Councilman Greenalch stated the current proposal was a I significant improvement over the existing rate structure, but that Mr. Kah's ideas had merit and were not falling on deaf ears. d. Roslyn Sholin, Bay View Way, unincorporated area of Redwood City, described past water rate increases, S.F. Water costs to Redwood City, and asked Council to list the capital improvement projects deferred in the past that are causing rates to rise at this time. Councilman Greenalch, stated that Redwood City has 220 miles of pipeline to maintain and repair, with some pipes being over sixty years old. Councilman Greenalch stated that the complete system including the pumps and reservoirs, etc., should be replaced every fifty years, but the City is far from that goal. Councilman Greenalch explained that the normal capital improvement projects were deferred to keep water rates artificially low during the drought, and that the proposed program was designed to allow the City to begin the much needed repairs. City Manager Everett stated Redwood City had more than the expected leaks in a system of this size and the new rate structure and program would allow the City to catch up with long delayed capital improvements. Regular Meeting Minutes MINUTE BOOK NO.'51 September 13, 1993 Page No. 526 Page 4 ---- --- -- -~ --- --- - - .. - -- -- - ---- -- - - --- -- - --,- -- -- -- -- - -- -- , -- --~_ : .