AgdaPkt 2012-05-07 - Laserfiche WebLink

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7.A. - Page 4 ALTERNATIVES According to the requirements of Proposition 218, the City must receive protests from more than 50% of current property owners and rate-paying customers on record to negate the proposed rate increase. The City Council could, however, reject or modify the Utilities Committee and staff recommendation regardless of the number of protest letters received. FISCAL IMPACT The recommended package of rates and charges will increase Water Fund revenues for FY 2012/13 by $3 million over the budgeted FY 2011/12 revenues; which is the targeted amount delineated in the February 2012 Water Financing Plan cash flow projection update. ENVIRONMENTAL REVIEW This ordinance is statutorily exempt from CEQA review pursuant to Public Resources Code Section 21080(b)(8). The City Council finds that the water service charges and fees are for the purpose of ineeting operating expenses, including employee wage rates and fringe benefits, purchasing or leasing supplies, equipment, or materials, meeting financial reserve needs and requirements, and obtaining funds for capital projects necessary to maintain service within existing service areas. The Staff Report dated May 7, 2012 expressly states in the "Background" section and in "Attachment 3" and "Attachment 4" that increases in wholesale water rates necessitate a rate increase and that revenues are used for the operation and maintenance of the water system, for an emergency reserve, and for replacement of the system. JUSTIN EZELL PUBLIC WORKS SUPERINTENDENT r � - BILL EKERN COMMUNITY DEVELOPMENT DIRECTOR �� ROBERT B. BELL CITY MANAGER ATTACHMENTS 1. Ordinance —Water Service Charges 2. Water Rate Benchmarking Study Results 3. Notice of Proposed Increases in Water Rates 4. Redwood City Water Enterprise Guiding Principles