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<br />78 <br />Page 2 <br />In early 2009, the Utilities Committee again discussed the need for future increases in <br />water rates. This series of increases is consistent with those imposed by other local <br />water agencies and is necessary to balance the Water Fund. <br /> <br />On April 10, 2009, and in accordance with the Proposition 218 notification requirements, <br />written notices of proposed increases in water rates for Fiscal Year 2009-10 were <br />mailed to all parcel property owners, together with information regarding the date, time, <br />and location of the June 1,2009 public hearing. <br /> <br />During the period of April 10 through May 15, two written protest letters (<0.01 % of <br />parcel property owners) were received which voiced concern over the proposed rate <br />increases. According to the requirements of Proposition 218, the City must receive <br />protests from more than 500/0 of parcel owners 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 15.7% increase in wholesale water rates effective July 1, 2009. <br />This will increase the wholesale cost of potable water from the San Francisco Regional <br />Water System from $1.43 to $1.65 per unit. (One unit = 748 gallons) <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 3010 from $16.05 to $16.53, <br />effective July 1,2009. <br />2. Increase Residential Water Rates by 120/0 effective July 1,2009, as follows: <br /> <br />Existing Cost Proposed Proposed <br />Rate Tiers per Unit Rate Tiers Cost per Unit <br />0-1 0 units 1.96 0-10 units 2.20 <br />11-25 2.50 11-25 2.80 I <br />26-50 4.08 26-50 4.57 <br />51+ 4.76 51+ 6.45 ! <br /> <br />3. Increase the Non-Residential Water Service Charge for a 5/8 inches meter by 3% <br />from $16.05 to $16.53, effective July 1 t 2009. <br />4. Increase the Non-Residential Water Service Charge for larger meters by the same <br />percentage as the 5/8 inch meter increase (30/0), effective July 1, 2009. <br />5. Increase Non-Residential Water Rates by 12% effective July 1,2009, as follows: <br /> <br />Existing Cost Proposed Proposed <br />Rate Tiers per Unit Rate Tiers Cost per Unit <br />0-15 units 2.50 0-15 units 2.80 <br />16+ 4.08 16+ 4.57 <br /> <br />6. Increase Potable Irrigation Water Rates by 120/0 effective July 1, 2009, as follows: <br /> <br />Existing Cost Proposed Cost <br />Rate Tiers per Unit Rate Tiers er Unit <br />0-100% of budget 3.21 0-100% of budget 3.60 <br />101-200% of budget 6.42 101-200% of budget 7.19 <br />>200% of bud et 9.63 >200% of bud et 10.79 <br />