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7.B. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> May 7, 2012 <br /> SUBJECT <br /> Approval of Sewer Service Charges <br /> RECOMMENDATION <br /> Waive First Reading and Introduce Ordinance amending Redwood City Municipal Code <br /> Section 27.100—Sewer Service Charges. <br /> BACKGROUND <br /> City Council action is needed to convene a public hearing to consider increases to the <br /> sanitary sewer service charges for Fiscal Year 2012-13. The proposed increases are <br /> necessary to ensure that sufficient revenue is available to support expenses for the <br /> operation and maintenance of the sewer collection system, the treatment and disposal <br /> of the City's sewerage, and the capital costs associated with replacing the aging <br /> components of these systems. <br /> The Sewer Fund is an "enterprise" fund, which by law is self-sustaining. All <br /> expenditures are directly related to operations, maintenance, repairs, treatment and <br /> systems replacement. The Sewer Fund has no impact on the City's General Fund. <br /> The Sewer Fund supports two major service components: 1) the collection system, <br /> maintained and operated by Redwood City, which is comprised of sewer main lines in <br /> city streets, the public portion of lateral (or service) lines from homes and businesses, <br /> and sewer lift stations that transmit sewage to the 2) wastewater treatment plant, <br /> operated and maintained by South Bayside System Authority (SBSA), which treats and <br /> processes the City's wastewater before discharging it into San Francisco Bay. SBSA is <br /> a Joint Powers Authority comprised of the cities of Belmont, Redwood City, and San <br /> Carlos, and West Bay Sanitary District. Each agency appoints a member of their city <br /> council or board to represent the jurisdiction on the SBSA Commission. <br /> ANALYSIS <br /> The City Council typically adjusts sewer service charges each fiscal year in <br /> consideration of the operating and capital budgets of the City and SBSA and upon the <br /> recommendations of the Council Utilities Committee. As the revenue projections for the <br /> SBSA capital replacement program have stabilized, with funding needs more clearly <br /> defined, the Council Utilities Committee recommends a 9% increase for Fiscal Year <br /> 2012-13. The City's proposed rate is based on revenue needed to cover the costs of <br /> service and is contained in the updated Sewer Enterprise 10-Year Financial Plan and <br />