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City Engineer Luck presented the staff report, thanked Senior Civil Engineer Lowell Sue and Consultant Robert Bitten for their excellent work, and described necessity of increase in service charges to improve and maintain an aging sewer collection and treatment system, an $80,000,000 asset. In response to Council questions City Engineer Luck advised one -half of all fees collected are paid to South Bayside System Authority (SBSA) and described the relatively flat rates in effect from 1984 through 1990. James Bewley, Manager of SBSA, in response to Council questions described SBSA uniform rates to all members; costs of lift stations; financial impact of federal and state regulations; new users will pay for new capacity as no SBSA revenues are set aside for future expansion; and the federal and state decisions to opt out of sewer improvement project financing places burden on local governments. Mayor La Berqe declared the public hearing open at 9:53 p.m. and invited anyone who wished to speak to please do so. Gerhard Mollenhauer, 973 Pleasant Hill Drive, representing Sequoia Hospital described the hardship the new sewer charges would impose on Sequoia Hospital. SBSA Manager Bewley advised federal and state monies have strings attached, which prohibit special rates, and rates are based on national averages. City Engineer Luck advised he will meet with Mr. Mollenhauer. MEMO 10/16/90 In response to Council questions, City Engineer Luck discussed the equivalent dwelling units figures used to determine rates and the necessity to meet projected budget revenue goals to improve infrastructure and maintain a reserve. Mayor La Berge asked if anyone else wished to speak. No one else wished to speak. M /S: Stangel /Bury to close the public hearing. Carried by unanimous voice vote and hearing closed at 10:05 p.m.. a. Title read. M /S: Murray / Stangel ORDINANCE NO. 2029 AMENDING SECTIONS 27.130 AND 27.131 OF THE CODE OF THE CITY OF REDWOOD CITY RELATING TO SEWER SERVICE CHARGES AND WASTEWATER TREATMENT CAPACITY FEES, RESPECTIVELY (1st reading September 17, 1990) Adopted by unanimous roll call vote. -------------------------------------------------------------------------------- Mayor La Berge declared a recess at 10:06 p.m. Meeting reconvened at 10:15 p.m. --------------------------------------------------------------------------- - - - - -- Reg. Mtg. Minutes October 15, 1990 Page 4 MINUTE BOOK NO. 50 Page No. 100 I