AgdaPkt 2008-04-28 - Laserfiche WebLink

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REPORT 7C Page 1 To the Honorable Mayor and City Council From the Ci .. Mana er . . .. . . " . :'-'" ~ : . April 28, 2008 SUBJECT Amendment of Sewer Service Charges RECOMMENDATION Convene Public Hearing and Introduce Ordinance Amending Redwood City Code - Section 27.100 - Increase the Basic Monthly Sewer Service Charges from $35.66 to $41.01 BACKGROUND City Council action is needed to convene a public hearing to consider an increase to the sanitary sewer service charges for Fiscal Year 2008-09. The increase is necessary to ensure that sufficient revenue is available to support expenses for the operation and maintenance of the sewer collection system, the treatment and disposal of the City's sewerage, and the capital costs associated with replacing the aging components of these systems. The Sewer Fund supports two major service components: 1) the collection system, maintained and operated by Redwood City, which is comprised of sewer main lines in city streets, the public portion of lateral (or service) lines, and pump stations that transmit sewage to the 2) wastewater treatment plant, operated and maintained by South Bayside System Authority (SBSA), which treats and processes wastewater before discharging it into San Francisco Bay. SBSA is a Joint Powers Authority comprised of the cities of Belmont, Redwood City, and San Carlos, and West Bay Sanitary District. Each agency appoints a member of their city council or board to represent the jurisdiction on the SBSA Commission. The City Council typically adjusts sewer service charges annually, in consideration of the operating and capital budgets of the City and SBSA; and, upon the recommendations of the City Council Utilities Committee. The City's proposed rate is based on revenue needed to cover the costs of service and is contained in the updated Sewer Enterprise 10- Year Financial Plan and Rate Study prepared by the independent public finance advisory firm, Bartle Wells Associates. The City Council Utilities Committee and staft recommend that the current $35.66 basic monthly sewer service charge be increased by $5.35 or 15% to $41.01 per month beginning with bills issued as of June 20, 2008. The proposed sewer rate Increase of 15% also applies to the commercial user classes, I.e. restaurants, hospitals and retail/commercial. Charges to commercial users will vary (as shown below) and are calculated based on metered water use, with a minimum charge equal to the residential $41.01 basic service charge.