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At 7:37 p.m. Mayor Greenalch advised the public hearing was continued open from the Council meeting of August 21, 1989. Community Development Director Pawloski presented the staff report assuring Council a separate account for revenues has been established and a separate account for expenses is being established at this time for water services in the Emerald Lake Hills area; describing proposed block structure to encourage conservation with emphasis on decreasing outside water use; and describing existing Council policy stating City is responsible for transmission of water but not distribution which is to be paid for by the property owner. Finance Director Ramchandani described report substantiating the current multiplier of 1.4 for Canada College. The following people spoke in opposition to a multiplier increase for the Emerald Lake Hills area water users: Janice McOmber, 466 Summit Drive, Redwood City, advised that the Easter Bowl complex has been the only major improvement since 1968, that Emerald Lake Hills residents use 10% of the city water supply, but pay 50% of the maintenance of five of the ten city reservoirs which are located in the Emerald Lake Hills area; Redwood City neglects Emerald Lake Hills area and the water delivery system is old and in poor shape; and that only new development in the area has improved the system, not Redwood City despite charging a multiplier originally designed to be used for improvements. Doug Finlay, 360 Summit Drive, Redwood City, stated the final report was inaccurate and suggested City was not pursuing avenues leading to sale of water system to California Water Company, as he had had talks with a senior officer who claimed he had not spoken to anyone from Redwood City about purchasing the water system in Emerald Lake Hills. FOR THE RECORD: Mayor Greenalch reported that Redwood City Manager Jim Smith has had talks with California Water Service Company about its purchase of the water system in Emerald Lake Hills and has reported his progress to the Mayor on two separate occasions. Mr. Finlay stated that Redwood City has spent $500,000 on the water system in Emerald Lake Hills area and developers have spent $3,500,000 suggesting Redwood City has not used the additional monies from the multiplier to improve the water system; suggested a flat rate of $2.64 for all units of consumption in the area; requested separate books; and advised that an assessment district would not be an acceptable way to finance improvements. Carole Henley, 157 Springdale Way, Redwood City made four requests: a) allow a representative for Emerald lake Hills area, Woodside and Canada College to be a party to the sales negotiations b) allow a representative for Emerald Lake Hills area, Woodside and Canada College to review future plans for the area to assure attention to the specific needs of these residents c) eliminate multiplier d) sell the water system Minutes MINUTE BOOK NO. 49 9/18/89 Page No. 96 Page 2