AgdaPkt 2003-07-14 - Laserfiche WebLink

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10.3.31 REPORT To the Honorable Mayor and City Council From the City Manager July 14, 2003 Subject Amendment of Sewer Service Charges Recommendation Introduce Ordinance Amending Redwood City Code - Section 27.100 - Sewer Service Charges Background Council last approved an increase in the monthly (fixed) Sewer Service Charge on October 7, 2002. Based on the City Council Utilities Committee desire for minimal, well - justified, but steady annual adjustments for inflation, the City Council increased the monthly charge from $19.57 to $20.35, or 4.0% in Fiscal Year 2002/03. The approved increase was driven by higher costs for wastewater treatment, vector control services, disaster restoration services (associated with clean up following sewer lateral backups), as well as higher energy costs. Staff has kept the City Council Utilities Committee informed about the potential influences that regulatory changes could have on setting the annual adjustments to sewer and water rates and charges. Those regulatory influences are reflected in the proposed increase for Fiscal Year 2003/04. On June 30, 2003, staff presented to the City Council a summary of changes in the Sewer Enterprise Fund budget for Fiscal Year 2003/04 and advised the Council that an increase in the Sewer Service Charge would be necessary to balance revenues and expenditures. The City Council Utilities Committee supports the following package of changes as this matter now goes to the full City Council for public hearing and final decision. Staff is recommending a 5.4% increase to the Sewer Service Charge, to cover total cost increases of $339,867, generated by the following factors: Balances the Sewer Fund budget at $9.7 million for Fiscal Year 2003/04 • Increase of $160,549 or 3.2% in South Bayside System Authority (SBSA) wastewater treatment costs • Increase to the National Pollution Discharge Elimination System (NPDES) permit fee for Redwood City from $5,000 last year to $15,000 this fiscal year • Increase in City operational costs of $164, 318 (adjustments in salaries, benefits, retiree medical, workers compensation and supplies) The new monthly charge would be $21.45, an increase of $1.10 per month for residential customers. The impact to customer bi- monthly billing for sewer is illustrated in the following table. 1 of 2