AgdaPkt 2013-06-10 Interview Closed and Joint

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7. B. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er June 10, 2013 SUBJECT Public Hearing On Proposed Increase To Sewer Service Charges RECOMMENDATION Conduct Proposition 218 Public Hearing On Proposed Increase To Sewer Service Charges; and Waive First Reading and Introduce Ordinance Amending Redwood City Municipal Code Section 27.100 (Sewer Service Charges). BACKGROUND Proposition 218 Hearing: Article XIIID, Section 6 of the California Constitution, which was adopted by the voters in 1996 as part of Proposition 218, requires that local governments give a special form of mailed notice at least 45 days before holding a public hearing on the increase of a property-related fee. The provision also provides that certain affected persons may submit protests with respect to proposed rate increases. In connection with the proposed increase to City sewer service charges, on March 22, 2013 the City mailed 26,000 notices to property owners, and a revised notice on April 26, 2013. The revised notice set June 10, 2013 as the public hearing date to consider the proposed increase to the City's sewer service charges. Sanitary Sewerage Service Charges: The City's Sewer Fund is an "Enterprise" fund, which by law is self-sustaining. All expenditures must be directly related to operations, maintenance, repairs, treatment, and system replacement. The Sewer Fund is entirely separate from the City's General Fund. The Sewer Fund supports two major service components: 1) the collection system, maintained and operated by Redwood City, comprised of sewer main lines in the City Streets, the public portion of lateral (or service) lines from homes and businesses, and sewer lift stations that transmit sewage; and 2) the wastewater treatment plant, operated and maintained by South Bayside System Authority ("SBSA"), which treats and processes the City's wastewater before discharging it into the San Francisco Bay. SBSA is a Joint Powers Authority comprised of the cities of Belmont, Redwood City, San Carlos, and West Bay Sanitary District.