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Item No. 3 (continued) Leif Syrstad, Duolite International, 800 Chestnut, observed that his company is the biggest water user in the system and is concerned about the amount of the increase. Mr. Syrstad read his statement and filed a copy of it with the City Clerk. In response to question, Mr. Syrstad acknowledged that costs of other materials related to his manufacture of resins for plastics have increased in recent years. In response to question, Mr. Addiego stated that Duolite uses more than one million gallons of water per day and that an increased rate to heavy users is proposed to stimulate conservation. E. R. Archibald, 520 Buckeye, protested an increase in water rates, stating he objects to a 100% increase and suggesting a smaller increase if funds are needed to operate the system. Councilman Biagi stated for the record that the proposed increase for residential use is 44% spread over a three -year period, with a 32% increase the first year, or an increase of about $4.32 per month the first year for an average total of $17.81 per month for each residence. Michael Demetrios, 237 Polhemus, Atherton, President of Marine World, stated he is a heavy user and can expect an increase of some $25,000 the first year. Mr. Demetrios said that he understands the problem, but opposes the timing of the increases and discrimination against heavy users, since increased conservation is not possible for his operation. Peter Si lacci, 1681 Alameda, suggested that neighborhoods are now dete- riorating because of failure of property owners to water gardens and maintain yards and that an increase in water rates may increase deteriora- tion. Ralph Nobles, 3720 Country Club Drive, suggested that it is necessary to be realistic and be willing to pay the cost to provide water and mainain the system adequately. Mr. Nobles observed that if it costs less to serve large users, the cost to them should be less, but that conservation of water should be encouraged. He recommended a lifeline rate be available to those who need it. John Grant, President of the Chamber of Commerce, reported that the Chamber has not taken any position on the proposed water rate increase and that he supports a necessary increase, suggesting it could be spread over a period longer than three years. Philip Goss, Emerald Lake, suggested any increase will be self - defeating as far as raising funds for the water system is concerned, because less water will be used. Mr. Goss suggested that the City should encourage the use of water and obtain more revenue in that manner. Reg.Mtg. 5/16/83 Page 3 MINUTE BOOK NO. 44 Page No. 127