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<br />70 <br />Page 2 <br /> <br />. Simplification of the tiered Water Rate Structure for residential and commercial <br />customers for the purpose of addressing equity and effectiveness issues that had <br />been put forward from the community effective June 27,2007. <br /> <br />On March 10, 2008, and in accordance with the Proposition 218 notification <br />requirements, written notices of proposed increases in water rates for Fiscal Year 2008- <br />09 were mailed to all parcel property owners, together with information regarding the <br />date, time, and location of the April 28, 2008 public hearing. Subsequently, and due to <br />a scheduled retrofit of equipment in the Redwood City Council Chambers, a second <br />notice was mailed to parcel property owners notifying them of the change in meeting <br />location on April 14, 2008. <br /> <br />During the period of March 10 to April 23, 26 written protest letters (0.1 %) were received <br />which voiced concern over the proposed rate increases. According to the requirements <br />of Proposition 218, the City must receive protests from more than 50% of parcel owners <br />to negate the proposed rate increase. <br /> <br />The San Francisco Public Utilities Commission and the Board of Supervisors are <br />expected to adopt a 7-10% increase in wholesale water rates effective July 1, 2008; <br />increasing the wholesale cost of potable water from the San Francisco Regional Water <br />System from $1.30 to as much as $1.43 per unit. <br /> <br />In summary, the City Council Utilities Committee and staff recommendation for Council <br />consideration is: <br /> <br />1. Increase the Residential Water Service Charge by 3% from $15.60 to $16.05. <br />effective June 20, 2008. <br />2. Increase Residential Water Rates by 9% effective June 20, 2008, as follows: <br /> <br />Existing <br />Rate Tiers <br />0-10 units <br />11-25 <br />26-50 <br />51+ <br /> <br />Proposed Proposed <br />Cost r Unit Rate Tiers Cost er Unit <br />1.80 0-10 units 1.96 <br />2.30 11-25 2.50 <br />3.75 26-50 4.08 <br />5.30 51+ 5.76 <br />(A unit = 100 cubic feet of water or 748 gallons) <br /> <br />3. Increase the Non-Residential Water Service Charge for a 5/8 inches meter by <br />3% from $15.60 to $16.05, effective June 20,2008. <br />4. Increase the Non-Residential Water Service Charge for larger meters by the <br />same percentage as the 5/8 inch meter increase (3%), effective June 20,2008. <br />5. Increase Non-Residential Water Rates by 9% effective June 20,2008, as follows: <br /> <br />Existing Rate <br />Tiers <br />0-15 units <br />16+ <br /> <br />Cost er Unit <br />2.30 <br />3.75 <br /> <br />Proposed <br />Rate Tiers <br />0-15 units <br />16+ <br /> <br />Proposed <br />Cost er Unit <br />2.50 <br />4.08 <br />