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<br />7C <br />Page 9 <br /> <br />The City of Redwood City (the .City") staff has recommended that the basic sanitary sewer service <br />charge be increased. The City's sewer utility is self-supporting, funded primarily by sewer service <br />charges, The sewer rate increase is primarily due to increased costs for the City's share of <br />operations, maintenance, and capital improvements at the South Bayside System Authority <br />(SBSA) regional wastewater treatment plant, which processes and disposes of the City sewage. <br />Additionally, the City's sewer rate supports the operations and maintenance costs, including labor, <br />replacement and improvements (capital projects) for the City's sewer collection system and the <br />cost of support provided by other City departments. <br /> <br />The proposed sewer rate increases are as follows: <br />Residential Sewer Customers <br />. Increase minimum monthly residential Basic Service Charge from $35.66 to $41.01 effective <br />June 20, 2008. <br /> <br />Commercial Sewer Customers <br /> <br />Commercial sewer rates vary by customer class, or type of business, as shown below. Charges <br />are calculated by multiplying each customer's rate by their metered water use during the billing <br />period. Commercial customers pay a minimum monthly charge equal to the residential Basic <br />Service Charge. The proposed increases are as follows: <br /> <br />. Increase minimum monthly commercial Basic Service Charge, all user categories, from <br />$35.66 to $41.01, effective June 20, 2008. <br /> <br />. The following table shows sewer rates proposed for commercial customers based on the <br />rate applicable to each customer class multiplied by the amount of metered water use per <br />billing period, with a minimum monthly charge of$41.01: <br /> <br />i <br /> Commercial Customer Current Proposed $ Increase <br /> Class Cost per Cost per Cost per <br />, unit unit unit <br />i , <br />! Institutional I Public $2.63 $3.02 $.39 <br /> Retail I Commercial $2.93 1$3.37 $.44 <br />, i $3.37 <br />! Hospitals $2.93 $.44 <br /> Restaurants $7.10 $8.17 $1.07 <br /> Supermarkets $7.10 $8.17 $1.07 <br /> Industrial $2.34 $2.69 $.35 <br /> <br />(A unit = 100 cubic feet or 748 gallons) <br /> <br />These service charges and rate increases are necessary to balance projected costs and <br />revenues for operation of the City's Sewer Enterprise from July 1, 2008 through June 30, 2009. <br /> <br />The City Council will hold a public hearing on Monday, April 28, 2008, at 7:00PM, at City <br />Hall, 1017 Mlddlefield Road. At the public hearing, the City Council will consider public <br />comments, as well as any written protests against the proposed rate increase. If you would like <br />more information about the proposed rate increase, visit www.redwoodcitv.om/publicworks and <br />click on "Proposed Sewer Rate Increase", or call 650-780-7464. If you wish to file a written <br />protest, please send a letter or post card addressed to: Sewer Rate Protest, 1400 Broadway, <br /> <br />1423437.2 <br />