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Page 1 of 11 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />DATE: July 21, 2025 <br />SUBJECT <br />Initiate proceedings to schedule a Public Hearing and consider objections to proposed water rates <br />RECOMMENDATION <br />Adopt a resolution to initiate proceedings under Proposition 218 by scheduling a Public Hearing to <br />consider adopting proposed water rates, authorizing the mailing of notice of the Public Hearing, and <br />establishing procedures for considering objections to the proposed water rates. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Excellence in Government Operations <br />BACKGROUND <br />Redwood City operates and maintains a potable and recycled water distribution system with <br />approximately 24,500 customer service connections. The City’s water service area covers approximately <br />17 square miles and includes Redwood City and portions of unincorporated San Mateo County, the Town <br />of Woodside, and City of San Carlos. The City purchases all its potable water from the San Francisco Public <br />Utilities Commission (SFPUC) through its Regional Water System (RWS), and the City’s recycled water <br />supply comes from the Silicon Valley Clean Water (SVCW) wastewater treatment plant. The water system <br />infrastructure includes 280 miles of water mains, 15 storage tanks, 12 booster pump stations, and various <br />assets, such as water meters, fire hydrants, and valves. The potable and recycled water system are part <br />of the City’s Water Enterprise which is paid for by revenues from water rates and fees charged to the <br />users of the system. The Water Enterprise is not supported by tax revenue or by the City’s General Fund. <br />As an enterprise fund, water utilities must be financially self-sustaining, meaning revenues collected from <br />rates and other charges recover the expenses for operations, maintenance, repair, and replacement of <br />the water utility system. Rate increases are necessary to address any budget deficits that are the result of <br />6.F. - Page 1 of 111 <br />78