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6.3.C. - Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />December 12, 2016 <br />SUBJECT <br />Recycled Water Pricing Policy <br />RECOMMENDATION <br />Adopt a resolution rescinding Resolution 14645 and adopting a revised policy for the <br />pricing of recycled water <br />BACKGROUND <br />When the City of Redwood City introduced recycled water to customers in 2005, the <br />City offered a discount on recycled water rates in order to encourage early adoption and <br />use of recycled water. The discount, adopted through Resolution 14645 - the Recycled <br />Water Pricing Resolution, provides a greatly discounted recycled water rate to <br />customers for five years after their date of connection. However, the resolution does not <br />specify the recycled water rate after that time period. Staff recommends adopting a <br />revised resolution to clarify the recycled water rate for customers. <br />ANALYSIS <br />Redwood City incurs costs for purchasing recycled water from the wastewater treatment <br />plant and delivering recycled water to customers. The City works to recover some of <br />those costs through recycled water rates. Resolution 14645 provides a greatly <br />discounted recycled water rate to customers for five years after their date of connection, <br />and in fact the City has continued offering that reduced rate to recycled water customers <br />beyond that initial five year period. Providing a permanent heavily discounted recycled <br />water rate is not feasible for the City. However, staff recognizes that recycled water <br />customers often face great initial startup costs and would benefit from the City's <br />assistance when retrofitting sites for recycled water use. <br />The City wants to encourage continued recycled water use and adoption. The recent <br />drought in California has only highlighted the importance of recycled water as an <br />additional resource to supplement community water needs. In pursuit of these goals, <br />staff proposes a new pricing policy for recycled water. <br />The revised pricing policy establishes the following: <br />1. For meters/accounts that connect to recycled water after the adoption of this <br />resolution: <br />