CC MIN 2013-06-10 Joint w/ Successor

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conserve landscape water. He asked residents to conserve water and about 70% of them are participating in this program. Mr. Rising opined that they have done everything they could to conserve and were disappointed that the rates are still going up. He said that no one is in disagreement that the infrastructure needs to be repaired. However, he wanted to know what the City was doing regarding the labor costs attributed to the water and sewer department. He specifically inquired about pensions. Laura Aiden said that she had visited with homeowners and the ones she visited voiced an opinion that the rates were too high. She protested that and brought to the Deputy City Clerk about 30 signatures in protest to these rates to give to Council. She said that she understood the infrastructure needing to be repaired, but she urged Council to be frugal with the constituents' money. M/S SeybertJGee to close the Public Hearing. Motion carried by unanimous voice vote with Council Member Ira absent. Dr. Bell wanted to clarify three items: labor costs, replenishing of enterprise funds, and SFPUC water rate. He mentioned that labor costs and personnel costs that are in the Enterprise Funds are a small percentage of the budget. He explained that the General Fund mostly covers labor costs. Dr. Bell also mentioned that together with Labor and the concessions 15% of the work force was cut and labor costs were cut. Assistant Public Director Kyaw added that labor costs had decreased since 2009. One Council Member added more information about the reserves and how she and Council Members Ira and Seybert sit on the Council Utilities Committee. At these meetings, they learn the figures that the city has to pay the SFPUC. She then mentioned the rate stabilization fund, which they tap into to offset the costs the SFPUC gives them in order to purchase water from the Hetch Hetchy system. The same Council Member also mentioned that Redwood City is part of a Joint Powers Agreement, so they do not make the sole decision. In addition, she explained that water rates are dependent on the amount that's used and that there are levels of charges per usage. Therefore, not everyone is paying the same amount for water and sewer. Lastly, she said that this is a complicated issue, challenging to the Utilities Committee itself, and she empathized with the constituents. Per the Mayor's request, Mr. Kyaw repeated that the SFPUC increased the whole sale water rates to 65% in the last three years and Redwood City only increased the rates by 30%. He also said that in regards to the SFPUC, they will decrease their rates by 5.1% to refinance the infrastructure for savings, but they wilt increase the rate by 16.9% in 2014-2015 and again in 2016-2017. One Council Member said she appreciated hearing that there were people conserving water. She reiterated what Assistant Public Director Kyaw said about sewer rates, and that sewer rates were charged by single-family home. Also, sewers don't have meters to check usage, like water meters. Therefore, even if it might be beneficial to have a sewer meter, there will be high labor costs. She also commented on the SFPUC water rates and that it was passing along the cost of the rebuilding of the Hetch Hetchy project JOINT COUNCIL/SUCCESSOR AGENCY BOARD June 10, 2013 MEETING MINUTES PAGE 5 MINUTE BOOK NO. 64 Page No. 377