AgdaPkt 2006-06-05 - Laserfiche WebLink

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88 conservation field is maximum 40% of revenues generated from fixed service Page 3 charges. Currently 27% of revenues come from the basic service charge: With the recommended shift of debt services costs, the ratio of revenues coming from the basic service charge changes from 27% to 31%. . Per the Water Financing Plan, include anticipated wholesale rate increase on July 1,2006 from the San Francisco Public Utilities Commission, from $1.02 to $1.16 per unit. This 14% increase equates to a variable cost increase for Redwood City of $634,000, all of which must be recovered via the consumption rates to customers. In summary, the Utilities Committee and staff recommendation for Council consideration is: 1. Increase the residential monthly Basic Service Charge from $12.00 to $14.25, effective August 4, 2006. The increase includes shifting 25% of annual debt service costs from the variable to fixed portion of utility bills. 2. Increase consumption rates effective August 4, 2006 as follows (one unit of water equals 748 gallons): a. For the first 10 units of water consumption, increase the residential "Lifeline" rate from $1.18 to $1.28 b. For 11 to 25 units, increase the residential rate from $2.16 to $2.26 per unit. c. For 11 to 50 units, increase the residential rate from $2.74 to $2.84 per unit. d. For 11 to 75 units, increase the residential rate from $3.53 to $3.63 per unit. e. For 11 to 75+ units, increase the residential rate from $4.32 to 4.42 per unit. f. For 1-15 units, increase the commercial rate from $2.16 to $2.26 per unit. g. For 1-75 units, increase the commercial rate from $2.74 to $2.84 per unit. h. For 1-75+ units, increase the commercial rate from $3.53 to $3.63 per unit. 3. Direct staff to proceed with a comprehensive review of the rate structure for commercial and residential customers, and come back to the Council via the Utilities Committee with recommendations for alternative methods that would address equity and effectiveness issues that have been put forward from the community. Additionally, request that staff evaluate "water budget-based", or "goal-based rates, for irrigation accounts, in which the rate tiers are based on an assigned water budget for each billing period that are individualized to each specific irrigation customer site. This Recommendation: . Supports the guiding principle of basic service charge equal to fixed costs, by commencing a shift of a portion of annual debt service costs from the variable to fixed portion of utility bills. . Maintains Redwood City's cost effectiveness benchmark status when compared to 13 other agencies (4th most cost-effective). Because other agencies have not yet calculated next year's rates, Attachment Four shows that Redwood City's position does not change at the 15 unit comparison level with the proposed rates. Even if none of the agencies increase their rates, Redwood City bills will be 7% below averages and medians. . Reinforces the need for more outdoor conservation practices among large users. . Continues to allow individual users to conserve and save money. . Is consistent with the principle "The more you use, the more you pay". Alternative The Council could reject or modify the Utilities Committee/staff recommendation. Page 3 of 4 . -,..., -.--.-.-, ....-.-..--.---.....---...-......---. ----..--.........-.... _.- .-.....-