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<br />If¿-/ <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />June 27, 2005 <br /> <br />. <br />. <br /> <br />Subject <br />Amendment of Sewer Service Charges <br /> <br />Recommendation <br />Introduce Ordinance Amending Redwood City Code - Section 27.100 - Sewer Service <br />Charges <br /> <br />Background <br />The Sewer Fund is an "enterprise" fund, which by law is self-sustaining. All expenditures <br />must be directly related to operations, maintenance, repairs and system replacement. <br />Revenues must be segregated from other municipal funds and uses, and cannot be 00- <br />mingled with other activities. <br /> <br />The Sewer Fund supports two major services components: (1) the collection system, <br />maintained and operated Redwood City, which is comprised of the sewer main, trunk and <br />public side lateral lines and pump stations that carry customer wastewater to (2) the <br />sewage treatmenLplant, operated and maintained by South Bayside System Authority <br />(SBSA), which treats and processes wastewater before discharging to San Francisco Bay. <br />On average operation and maintenance of the collection system represents approximately <br />50.2% of the total annual costs; while the SBSA service is about 49.8% of the total annual <br />fund costs, <br /> <br />The City Council last approved an increase in the monthly Sewer Service Charge on July <br />26, 2004, In Fiscal Year 2004-2005, revenues to the Sewer Enterprise Fund will be <br />required to support a budget of $12,688,597, which constitutes an increase of $743,746 or <br />6,2% over last fiscal year. The table below shows the proportionate share of the increased <br />costs for the City and SBSA for Fiscal Year 2005/06. <br /> <br />City Services <br />SBSA Services <br />TOTAL INCREASE <br /> <br />Amount of Increase <br />$ 248,285 <br />$ 495,461 <br />$ 743,746 <br /> <br />Percentaoe Over Last Year <br />2.1% <br />8.5% <br />6.2% <br /> <br />At its May 12, 2005 meeting, the City Council Utilities Committee discussed the following <br />package of changes as this matter now goes to the full City Council for public hearing, <br />consideration and final decision. <br /> <br />One of the more significant factors driving the increase this year is the SBSA estimated <br />capital expenditure of $3.0 million to replace the damaged outfall pipe into San Francisco <br />Bay, The SBSA Commission approved a plan to spread the outfall replacement cost over <br />5 years. Redwood City's contribution to SBSA increases by 8.5% for Fiscal Year 2005/06 <br /> <br />1 of 3 <br />