AgdaPkt 2007-07-09 - Laserfiche WebLink

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88 Recently, the San Francisco Public Utilities Commission and the Board of Supervisors Page 2 approved a 6.5% increase in "suburban" wholesale water rates effective July 1, 2007, increasing the wholesale cost from $1.22 to $1.30 per unit. On May 18, 2007, in accordance with the Proposition 218 notification requirements, written notices of proposed increases in water rates for Fiscal Year 2007/08 were mailed to all parcel property owners, together with information regarding the date, time, and location of the July 9, 2007 public hearing. During the period of May 18, to June 22, 2007, four written protest letters were received, and a few phone calls and emails, requesting additional information about the rate structural changes and to express their concern about the rate increases. For Fiscal Year 2007/08, the Utilities Committee and staff recommendation for Council consideration is: 1. Put into effect an increase of the residential monthly Basic Service Charge by 9.47% from $14.25 to $15.60, effective August 27,2007. 2. Simplification of Rate Structure and increase residential consumption rates effective August 27, 2007, as follows: Existing Rate Tiers 0-10 units 11-25 units 11-50 units 11-75 units 11-76+ Cost 1.28 2.26 2.84 3.63 4.42 r Unit Proposed Rate Tiers 0-10 units 11-25 26-50 51+ Proposed Cost r Unit 1.80 2.30 3.75 5.30 (A unit = 100 cubic feet of water or 748 gallons) 3. An increase of the commercial monthly Basic Service Charge for a 5/8 inches meter by 9.47% from $14.25 to $15.60, effective August 27,2007. 4. An increase of the commercial monthly Basic Service Charge for larger meters by the same percentage as 5/8 inch meter increase 9.47%, effective August 27,2007. 5. Simplification of Rate Structure and an increase of the commercial consumption rates effective August 27,2007, as follows: Existing Rate Tiers 0-15 units 0-75 units 0-76+ units Cost 2.26 2.84 3.63 r Unit Proposed Rate Tiers 0-15 units 16+ Proposed Cost r Unit 2.30 3.75 The proposed increase in water bills slightly changes the City's position in the benchmarking study of other neighboring agencies; however, Redwood City remains the sixth most cost effective agency surveyed. This Recommendation: . Supports the guiding principle of basic service charge equal to fixed costs.