CC MIN 2013-06-10 Joint w/ Successor

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One Council Member wanted to highlight for the public that the enterprise funds are self-sustaining and separate and distinct than the general fund. Also, he noted that none of those funds are transferred to the General Fund to support city services. Another Council Member, who is also on the Utilities Committee, stated that it was important for the public to understand that the Council is diligent on prioritizing infrastructure improvements or else if everything needed to be fixed then the rates would be a lot higher. One Council Member wants to know how close we are in keeping an eye on work SBSA is doing, because RWC is paying a lot of money. Mr. Kyaw responded that Council Member Ira has been appointed to work with them. Dr. Bell recommended that the question be brought up at a Council meeting when Council Member Ira will be able to answer it. The Council Member agreed. Another Council Member was pleased with the presentation. He wanted to add that he met with some members of the community, who were opposed to the raising of rates. However, once he explained to them that other cities are deferring this and the City is addressing it promptly, then they understood, although they may not have agreed. Vice Mayor Gee thanked Mr. Kyaw for the presentation. However, he disclosed that Redwood City during its contract with Bay Area Water Supply Quality Authority (BAWSQA), was under investing in their water rates and some payments were not made, which the City is now paying the price. He reiterated that as infrastructure ages, the more costly it is to repair or replace it, and he referenced that the nation's infrastructure was recently marked as D+. Vice Mayor Gee thanked the Utilities Committee for its work, and gave a forewarning that California's gold will be water and whoever controls it will rule the state. Mayor Aguirre opened the Public Hearings for both items 7A and 7B. Public Comment Rosanne Mitchell is concerned about both the water and sewer rate increases. She attended the water increase meeting a month ago and was told that 25 to 30% went into replenishing an emergency fund for water procurement, which she said she didn't understand. She opined that the 10°/a increase was high and that the sewer rates are not equitable for a house of one person versus a house of many residents. She recommended that the City look at ways to conserve more. Kay Casey said that she represents 10 people residing in mobile homes. She showed the Council her bills (water and sewage) and said that they are higher than electricity. She has used four units of water and is getting charged the same amount as her next door neighbors. She said that she uses her bath water to water her yard and toilet to conserve, and she told the Council that she was retired and on limited means. Matt Rising represented himself as a CFO (Chief Financial Officer) of an HOA (Home Owners Association) in Redwood Shores in Pelican Cove. He is protesting both the water and sewer rates. He said that their HOA had been working with the City to JOINT COUNCIL/SUCCESSOR AGENCY BOARD June 10, 2013 MEETING MINUTES PAGE 4 MINUTE BOOK NO. 64 Page No. 376