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Item 3 (continued) City Manager Smith presented the subject report stating that the original proposal has been modified and three alternatives are presented. Director of Finance Tasseff reviewed the subject report using slide projections of its pages. Discussion followed and Mr. Tasseff, Mr. Schricker and Mr. Smith replied to questions and commented regarding cost of providing service to large users compared to individual residents; the greater cost of comparable water service in neighboring cities; the fact that no profit is involved in City rates as compared to private water companies; the requirements of the capital improvements program and the time frame for completion of needed work on the water system; whether it might be more reasonable to approve a two -year capital improvement program with review following rather than attempt to project needs and costs for four or five years; the need for annual review of rates and the system; and the desire of Council to minimize the impact of any increase on users. Councilman Claire stated the record should show that the cost increase per month for residences is about $2.30 which amounts to about a 47% increase. In response to question, City Attorney Schricker stated that questions might be addressed to persons in the audience who had given testimony previously. Leif Syrstad, Duolite International, replied to question regarding facili- ties at his plant for recirculation of water, stating that about 70% of the water used goes into the sewer with the rest going into the product or evaporation. Titles read. M /S: Claire /Bury a. RESOLUTION NO. 9359 AMENDING SECTION 3 OF THE RULES AND REGULATIONS OF THE CITY OF REDWOOD CITY WATER DEPARTMENT, RELATING TO WATER RATES adopted; and b. ORDINANCE AMENDING SECTIONS 38.5 AND 38.10 OF, AND ADDING SECTIONS 38.10.1, 38.10.2, 38.10.3, AND 38.10.4 TO THE CODE OF THE CITY OF REDWOOD CITY RELATING TO WATER METER SERVICE CHARGES AND WATER CONNECTION FEES, RESPECTIVELY approved for first reading on the following roll call vote: Ayes: Councilmen Bury, Claire, Mosher, Rhodes and Mayor Stangel Noes: Councilman Biagi and Vice Mayor Britschgi City Manager Smith stated it is the intention of staff to review the water system and cost of operation annually. (memo 6/7/83) ---------------------------------------------------------------------------- - - - - -- Reg.Mtg. 6/6/83 Page 3 MINUTE BOOK NO. 44 Page No. 142