AgdaPkt 2005-06-06 - Laserfiche WebLink

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�� i R�PORT To the Honorable Mayor and City Council From the City Manager , June 6, 2005 Subject Water Utility Service Rates and Charges Recommendation 1. Introduce Ordinance amending Redwood City Code — Section 38.5 — Water Basic Service Charge 2. Adopt a resolution amending Section 3 of the Rules and Regulations of the Redwood City Water Department (Public Works Services Department) r�lated to water rates 3. By resolution, adopt water enterprise guiding principles and rescind all prior adopted principles, as those principles may have been amended from time to time. Background Or� January 24, 2005, the City Council took the following actions: A. Approved the Redwood City Water Financing Plan — 2004 Update, prepared by Bartle Wells Associates, Independent Public Finance Advisors for the purpose of financing the Recycled Water Project - Alternative `TF', as recommended by the Community Task Force on Recycled Water; B. Conceptually approved a 12% water rate increase, and asked the City Council Utilities Committee to work with staff to recommend how rate increases could be implemented on July 1, 2005; C. Gave direction to the Utilities Committee and staff on criteria for adju5tments to water connection and facilities fees for new development and requesfed that recommendations come back to Council for consideration; D. Acting as the City of Redwood City Board of the Public Financing Authnrity, authorizing the iss�ance of water revenue bonds to finance the first phase of the recycled water project. This staff report is focused on item "B." above. The Water Financing Plan was developed for the purposes of financing the Recycled Water Project — Alternative 'TF', and guiding staff in the management of the Water Enterprise Fund. Council approval of the Financing Plan demonstrated the city's commitment to long-term, prudent fiscal poficy, and enhanced the city's ability to secure the best bond rating possible. Pursuant to the Plan, the City Council conceptually approved a water rate increase to take effect July 1, 2005. The Financing Plan delineates in detail the amount of annual new revenues that will be required to meet the repayment requirements of the first bond issue: $2.1 million in to4al. The rate increase required equates to an across-the-board increase to all customer classifications of 12%. As was discussed at the December 13, 2004 Council meeting, staff assumed that the Council would want to implement this increase in a way that further emphasizes water conservation and creates incentives for conservation and disincentives for unwise use of water, especially outdoors. Page 1 of 3