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-24- <br />resources. The City also has a Cross Connection Control Program and has certified staff to <br />ensure that all backflow prevention devices are tested and maintained annually. <br /> <br />Capital Improvement Program <br /> <br />The City’s projected capital improvement plan for the Enterprise for Fiscal Year 2016-17 <br />through Fiscal Year 2020-21 is set forth below. The City intends to fund its capital improvement <br />plan through fund equity and current revenues. <br /> <br />Since the late nineties, the City has spent approximately $2,000,000 per year from fund <br />equity and current revenue in order to replace aging facilities and equipment of the Enterprise. <br />Starting from Fiscal Year 2012-13, the City developed plans to substantially increase its <br />investment in the City’s potable water capital improvement program. From 2010 to 2015, the <br />City completed the following capital improvements: seismic retrofits of four potable water <br />storage tanks and eight pump stations, rebuild of one pump station, and replacement of five <br />miles of water mains. In the 2015-2020 capital improvement program cycle, the City aims to <br />replace seven miles of water mains and plan two new pump stations and two new storage <br />tanks. <br /> <br />The City Council appropriated $4,000,000 for capital improvements in Fiscal Year 2016- <br />17. Additionally, the City expensed or committed $250,000 for its water conservation program <br />in Fiscal Year 2016-17 and expects to continue this level of funding for water conservation <br />measures in future fiscal years. <br /> <br />Table 8 <br />Capital Improvement Program Summary <br /> <br /> Amount* <br />FY 2016-17 $ 4,000,000 <br />FY 2017-18 3,500,000 <br />FY 2018-19 4,000,000 <br />FY 2019-20 4,500,000 <br />FY 2020-21 5,500,000 <br /> Total $21,500,000 <br /> <br />Source: City of Redwood City – Finance Department. <br />* Amounts capitalized in the City's Comprehensive Annual Financial Reports may vary depending on whether <br />expenses meet the City's capitalization policy. <br /> <br />Billing and Collection Procedures <br /> <br />The City issues a combined utility bill to each of its customers for water, sewer, and <br />solid waste collection services (the City acts as the billing and collection agent for the private <br />company, Recology San Mateo County, which performs solid waste collection services under a <br />franchise agreement with the City) on a bi-monthly basis for residential customers and monthly <br />basis for commercial customers. The utility bills are due and payable within 30 days of the bill <br />date. If not paid within 30 days, the utility bill is delinquent, a 10 day reminder notice is mailed <br />to the customer and assessed a 1.5% interest charge, and if still unpaid 40 days after the initial <br />bill has been issued, a 7 day notice is mailed indicating that water will be shut off if the bill <br />remains unpaid and another 5% interest charge is assessed. If the utility bill continues to be <br />unpaid after the 5% interest charge, water service will be disconnected until payment is made. <br />Prior to disconnecting water service, the City provides the affected customer with forty eight <br />hour notice of possible disconnection. The reconnection fee ranges from $20 to $100 if paid <br />during business hours and $320 if paid after business hours. <br /> <br />8.C. - Page 49