AgdaPkt 2004-07-26 - Laserfiche WebLink

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� B-2 . Recently, the SFPUC approved a 2.7% increase in wholesale water rates effective July 1, 2004, from $1.10 to $1.13 per unit. Staff proposes that the practice of mafching the "Lifeline" rate with the wholesale cost be followed and that the °Lifeline" rate be increased from $1.10 to $1.13, and that the higher use rate tiers be increase for the larger users by an average of 4%, ranging from 3.7% to 4.3%. The Utilities Committee of the City Council has reviewed and is in support of the proposed rate increases, as this matter now goes to the full City Council for public hearing, consideration, and final decision. The recommended changes are: 1) Increase residential and commercial Basic Service Charge by 3.5% for fiscal year 2004/2005. The current basic service charge of $11.17per month would increase to $11.56. 2) Increase residential "Lifeline" water rates from $1.10 to $1.13 per unit of water (0 to 10 units per billing period) for fiscal year 2004/2005. 3) Increase residential and commercial conservation rates by an average of 4%. The proposed increase in water bills will not change the City's position in the benchmarking study (attached) of other neighboring agencies: Redwood City remains the third most cost efficient water provider of the surveyed agencies. Alternatives The Utilities Committee met on July 2, 2004 to review the proposed rate increases that support the corresponding increases in wholesale water cost as well as operation and maintenance costs. The Committee agreed to continue the practice of matching the "Lifeline" rate with the wholesale cost. The proposed changes in charges and rates will generate sufficient revenue for a second year of fully-funded active conservation and continue the practice of funding aggressive conservation primarily from the largest water users. Fiscal Impact If the Council approves the proposed changes to the water rates and basic service charges as recommended, a Redwood City residential customer's bimonthly water utility bill at the City's average consumption level of 22 units per billing period will increase by $0.96 or 3.4%, from $56.50 to $58.42. The bimonthly water bill at the level of 30 units billing period will increase by $1.54 or 3.8% from $79.34 to $82.42. See attachments for summary of fund revenues and expenditures, and impacts to water/sewer bills at various levels of water use. � `, -,, ��, � � � �, � , Manny Rosas Peter Ingram Ed verett Public Works Superintendent Public Works Services Director City Manager 2 of 3