AgdaPkt 2006-01-23 - Laserfiche WebLink

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$-/ REPORT To January 23, 2006 Subject Water Financing Plan - 2006 Update Recommendation By Motion: a. Approve the Redwood City Water Financing Plan - 2006 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 approve a 12% water rate increase, and ask the City Council Utilities Committee to work with staff to recommend how rate increases could be implemented on July 1, 2006. Background In December 2002, the original Water Financing Plan was completed by Bartle Wells as part of the feasibility planning process for the recommended Alternative 'D' Recycled Water Project ("Project"). Subsequently, Project Alternative 'E' was developed in response to the City Council's no-mandatory use policy decision. The City Council reviewed and commented on the plan in August 2003 as it approved a broadly defined project and appointed the Community Task Force on Recycled Water, but no action was taken at that time, pending the Task Force's work and recommendations, which were adopted by the Council in March 2004. At that time, the Council directed staff to return with various implementation actions so that Project Alternative 'TF' could be designed and constructed. The Water Financing Plan - 2004 Update was developed by a team of public financing experts at Bartle Wells Associates in close collaboration with other city financial consultants coordinated by William Euphrat Municipal Finance, Inc. and city staff. The City Council Utilities Committee provided input, culminating with a presentation to the Council on December 13, 2004. On January 24,2005, the City Council approved the Water Financing Plan - 2004 Update, as well as (acting as the City of Redwood City Board of the Public Financing Authority) authorized the issuance of the first in a series of water revenue bonds for the purpose of financing the Recycled Water Project. Council approval of the Financing Plan demonstrated the city's commitment to long-term, prudent fiscal policy, and enhanced the city's subsequent ability to secure the best bond rating possible. The City Council also conceptually approved a water rate increase of 12%, which ultimately took effect July 1, 2005. Via significant public input and a sequence of City Council Utilities Committee work sessions, the Council implemented the increases in varying levels to further emphasize water conservation and create incentives for conservation and 1 of 3