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<br />8A <br />Page 2 <br />In January 2009, staff is proposing to implement a new landscape customer class with a <br />new landscape irrigation water rate structure. The current water rate structure does not <br />account for specific site circumstances and does not provide a distinction "between <br />residential and commercial irrigation customers; instead, it increases water price with <br />increasing increments of water use according to the respective residential and <br />commercial water rate tiers. The new rate structure will charge both residential and <br />commercial customers the lowest water price for water used within their respective <br />water use budget. It will have a higher water price for water use over the budget and up <br />to 200% of the budget. For water use over 200% of an irrigation customer's budget, an <br />even higher water price will be applied. <br /> <br />The proposed landscape irrigation rates are intended for landscape irrigation customers <br />using potable drinking water only, and will not affect single-family residences. In <br />addition, recycled water customers will not be charged according to their water use <br />budgets during the first phase of the Project. Instead, recycled water customers will be <br />charged a flat, per unit fee, that is equal to the lowest tier of the proposed landscape <br />irrigation rates. Recycled water customers will also continue to receive a 25% discount <br />on their entire water bill. <br /> <br />The City wants the water budgets to be as 'accurate and fair as possible. As a starting <br />point, the water budgets generated via the Landscape Water Use Reports will be used <br />for ca!culating water bills. These reports have been distributed to landscape irrigation <br />customers each billing period since 2003. This process will be refined, and a process of <br />updating site characteristics will be developed as stated in the proposed guiding <br />principles. <br /> <br />On October 10, 2008, and in accordance with the Proposition 218 notification <br />requirements, written notices of proposed increases in landscape irrigation water rates <br />were maited to all landscape irrigation site parcel property owners, together with <br />information regarding the date, time, and location of the November 24, 2008 public <br />hearing. In addition, workshops for the budget-based rates project and proposed water <br />rate increases were held on October 22,23, and November 18. At this time, there have <br />not been any written protest letters received which voice concern over the proposed <br />rate increases. According to the requirements of Proposition 218, the City must receive <br />protests from more than 50% of parcel owners to negate the proposed rate increase. <br /> <br />The overall purpose of the BBRP is to improve irrigation efficiency and reduce water <br />waste by rewarding property managers, homeowners associations, and other <br />businesses that use water efficiently and to create incentives for those who do not. <br /> <br />In summary, the City Council Utilities Committee and staff recommendation for Council <br />consideration to refonnat water rates for landscape irrigation customers from the <br />existing water rate to the proposed tiers as shown in the following two tables: <br /> <br />Existing Residential <br />Irri ation Tiers <br />0-10 units <br />11-25 <br />26-50 <br />51+ <br /> <br />Existing <br />Cost per Unit <br />1.96 <br />2.50 <br />4.08 <br />5.76 <br /> <br />existing Commercial <br />Irri ation Tiers <br />0-15 units <br />16+ <br /> <br />Existing Cost <br />per Unit <br />2.50 <br />4.08 <br />