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<br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 24, 2005 <br /> <br />Subject <br />Water Financing Plan - 2004 Update <br /> <br />Recommendation <br />By Motion: <br />a. Approve the Redwood City Water Financing Plan - 2004 Update, prepared by <br />Bartle Wells Associates, Independent Public Finance Advisors for the purpose of <br />financing the Recycled Water Project - Alternative 'TF', as recommended by the <br />Community Task Force on Recycled Water; <br />b. Conceptually approve a 12% water rate increase, and ask the City Council Utilities <br />Committee to work with staff to recommend how rate increases could be <br />implemented on July 1, 2005; <br />c. Give direction to the Utilities Committee and staff on criteria for adjustments to water <br />connection and facilities fees for new development and request that <br />recommendations come back to Council for consideration within 90 days. <br /> <br />Background <br />In December 2002, the original Water Financing Plan was completed by Bartle Wells as <br />part of the feasibility planning process for the recommended Alternative '0' Recycled Water <br />Project ("Project"). Subsequently, Project Alternative 'E' was developed in response to the <br />City Council's no-mandatory use policy decision. The City Council reviewed and <br />commented on the plan in August 2003 as it approved a broadly defined project and <br />appointed the Community Task Force on Recycled Water, but no action was taken at that <br />time, pending the Task Force's work and recommendations, which were adopted by the <br />Council in March 2004. At that time, the Council directed staff to return with various <br />implementation actions so that Project Alternative 'TF' could be designed and constructed. <br />One of the most important actions that the Council should take to execute the Project is <br />adopting a long-term water enterprise financing plan and creating the Project funding <br />mechanisms (see companion staff report titled_Approval by the City Council afthe City of <br />Redwood City and the City of Redwood City Public Financing Authority Board of Directors <br />of bond financing documents in connection with the issuance of City of Redwood City <br />Public Financing Authority (the UPFA'? Water Revenue Bonds). <br /> <br />The attached Water Financing Plan - 2004 Update has been developed by a team of <br />public financing experts at Bartle Wells Associates in close collaboration with other city <br />financial consultants coordinated by William Euphrat Municipal Finance, Inc. and city staff. <br />The City Council Utilities Committee has provided input, culminating with the presentation <br />to the Council on December 13,2004 (see Appendix E of the Water Financing Plan). <br /> <br />Prior to the City Council, acting as the City of Redwood City Board of the Public Financing <br />Authority, authorizing the issuance of water revenue bonds, a Water Financing Plan should <br /> <br />1 of 3 <br /> <br />-" , <br />