AgdaPkt 2006-04-03 - Laserfiche WebLink

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8A Page 1 REPORT To tl1ø Honorable Mayor and Öity COUI1G:U From the City Man:age:r April 3, 2006 Subject Water Utility Service Rates and Charges Recommendation 1. Open the Public Hearing, receive the staff report and presentation, hear public comments, and continue the Hearing until the Council meeting of April 24, 2006; 2. On April 24, hear any additional public comments, and close the Public Hearing; 3. Introduce Ordinance amending Redwood City Code - Section 38.5 - Water Basic Service Charge; 4. Adopt a resolution amending Section 3 of the Rules and Regulations of the Redwood City Water Department (Public Works Services Department) related to water rates; Background On January 23, 2006, the City Council took the following actions: A. Approved 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 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, 2006; C. Acting as the City of Redwood City Board of the Public Financing Authority, authorizing the issuance of a second series 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 (first approved in January 2005) 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 policy, 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 delineated 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 total. The rate increase required on July 1, 2005 equaled an across-the-board increase to all customer classifications of 12%. In early March 2005, the Utilities Committee (comprised of Council members Foust, Ira, and Pierce) met and adopted a process whereby staff would elicit community input before the Committee considered specific options for how rates will be increased. To that end, a Page 1 of 4