AgdaPkt 2010-04-12 - Laserfiche WebLink

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8B Page 1 REPORT To the Honorable Mayor and City Council From the Cit Mana er April 12, 2010 SUBJECT Amendment of Sewer Service Charges RECOMMENDATION Convene Public Hearing and Introduce Ordinance Amending Redwood City Code - Section 27.100 - Setting the Basic Monthly Sewer Service Charges for Fiscal Year 2010-11 through Fiscal Year 2011-12 BACKGROUND City Council action is needed to convene a public hearing to consider increases to the sanitary sewer service charges for Fiscal Year 2010-11 through Fiscal Year 2011-12. The proposed two years of increases are necessary to ensure that sufficient revenue is available to support expenses for the operation and maintenance of the sewer collection system, the treatment and disposal of the City's sewerage, and the capital costs associated with replacing the aging components of these systems. The Sewer Fund supports two major service components: 1) the collection system, maintained and operated by Redwood City, which is comprised of sewer main lines in city streets, the public portion of lateral (or service) lines, and sewer lift stations that transmit sewage to the 2) wastewater treatment plant, operated and maintained by South Bayside System Authority (SBSA), which treats and processes the City's wastewater before discharging it into San Francisco Bay. SBSA is a Joint Powers Authority comprised of the cities of Belmont, Redwood City, and San Carlos, and West Bay Sanitary District. Each agency appoints a member of their city council or board to represent the jurisdiction on the SBSA Commission. The City Council typically adjusts sewer service charges each fiscal year in consideration of the operating and capital budgets of the City and SBSA; and, upon the recommendations of the Council Utilities Committee. As the revenue projections for the SBSA capital replacement program have stabilized, with funding needs more clearly defined, the Council Utilities Committee recommends a 90/0 increase each year for the next two fiscal years. The City's proposed rate is based on revenue needed to cover the costs of service and is contained in the updated Sewer Enterprise 10-Year Financial Plan and Rate Study prepared by the independent public finance advisory firm, Bartle Wells Associates, and on file in the Office of the City Clerk. Based on direction given by the Council Utilities Committee, staff recommends increasing the basic monthly sewer service charge for all users to $48.72 effective July 1, 2010 and to $53.11 effective July 1, 2011.