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Councilman Claire recommended that the loss of expected revenue should be offset with funds from the capital outlay fund for 1990 and any other money that must be spent from the capital outlay fund should be charged to a separate account and figured into the adjusted multiplier. Council discussed impact of loss of projected revenue from 2.4 multiplier, not passing on costs to City water users, compromise multipliers and advantages of good cost accounting data on which to base a multiplier. Councilman Stangel called for the question. The motion carried on the following roll call vote: AYES: Councilmembers Buchan, Claire, LaBerge, Murray, Stangel and Mayor Greenalch NOES: Councilman Bury MINUTE ORDER NO. 89 -137 Mayor Greenalch described the history of water rates and multipliers in Emerald Lake Hills, how the City and Emerald Lake Hills were considered one area for purposes of the water fund established in 1969, and how the question of City resident versus non - resident water use has created a deep divisiveness in our community. Mayor Greenalch stated the water system was below acceptable standards when the City bought it in 1933 and should be brought up to acceptable standards using one or more of the following sources of funding: 1) every water user in the system 2) developers 3) modified form of assessment district - those affected most would pay most. Mayor Greenalch thanked Emerald Lake Hills representatives for their time and efforts and urged Council to either confirm or change the philosophy that has resulted in the need for this long and divisive process concerning water rates. b. Report: Final Report - Water and Sewer Rate Study - Sewer Rates Only Community Development Director, 10/9/89 Community Development Director Pawloski presented the staff report and recommended Council adopt enabling legislation to approve: 1. Capital Facilities Fee of $520 per EDU for new connectors. 2. Redwood Shores excluded from Sewer Capital Facilities Fee as there is a facilities fee for Redwood Shores already in place. 3. Uniform sewer rates throughout the City. 4. In April or May changes in sewer rates to incorporate SBSA costs and local costs. No change in sewer use charges at this time. Mayor Greenalch invited anyone who wished to speak to this issue to please do so at this time. Robert Slusser, 541 Cringle Drive, Redwood City spoke in favor of the recommendations. MINUTE BOOK NO. 49 Minutes Page No. 125 10/16/89 Page 3