AgdaPkt 2012-05-07 - Laserfiche WebLink

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7.B. - Page 2 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 $57.88 effective July 1, 2012. Basic Residential and Fixed Rate Current Proposed Monthly Proposed Monthly Rate Monthly Billing Billing Percentage as of July 1, 2012 Increase Increase $53.10 $57.88 $4.78 9% Additional charges to commercial users will vary (as shown below) and are calculated based on metered water use, which is added to the minimum basic service charge. Table of Monthly Commercial Users Rate Changes Commercial Current Proposed $ Customer Charge Per FY 2012-13 Increase (Non-Residential) Unit Effective July 1, 2012 Per Unit Institutional / Public $ 3.91 $4.26 $0.35 Retail / Commercial $ 4.36 $4.75 $0.39 Hospitals $ 4.36 $4.75 $0.39 Restaurants $10.58 $11.53 $0.95 Supermarkets $10.58 $11.53 $0.95 Industrial $ 3.48 $3.79 $0.31 Note: Rates shown in the table above represent the additional monthly charge per one hundred (100) cubic feet of waste or wastewater discharged or deposited into the sewerage facilities in excess of one thousand (1000) cubic feet. The SBSA infrastructure replacement and repair projects continue as the primary driver for the cost increases in the Sewer Fund. The total projected costs are slightly more than $400 million (with cost inflation) over the next 10-year period. Redwood City's estimated share of these costs is $200 million. Additionally, the proposed rate increase will continue support for the ongoing repair and replacement of the City's sewer collection system infrastructure, projected to cost over $100 million over the next 10 years. In consideration of the proposed sewer rate increase, staff initiated the following public notification activities: