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Attachment 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON AMENDING THE MASTER FEE SCHEDULE (RES. NO 92 -100) TO REVISE WATER RATES AND CHARGES WHEREAS, water utility service is an enterprise fund which is to be 100% fee based where Pleasanton water customers pay for the cost of: water purchased from the Alameda County Flood Control and Water Conservation District Zone 7, a water wholesaler; pumping water from City groundwater wells; treatment; transportation in pipes and pump stations which must be maintained and replaced; compliance with federal and state water quality standards, and other needed capital improvements and maintenance; and WHEREAS, water rates and charges must be adjusted to reflect cost increases to -date for the purchase of water from Zone 7, as well as include a provision to increase rates to pass through annually any future Zone 7 water cost increases beginning January 1, 2011 and for the next five (5) years, upon notice to customers as required by law; and WHEREAS, water rates and charges must be adjusted to reflect City operational cost increases to -date, and include a provision to increase rates in the future based on the Consumer Price Index (CPI) beginning January 1, 2011 and for each of the next five (5) years, upon notice to customers as required by law; and WHEREAS, water rates and charges are to be adjusted for residential and commercial bi- monthly meter charges, consumption tiers, and irrigation rates, to both reflect the costs described above, as well as to encourage more conservation; and WHEREAS, water rates and charges are to be adjusted to modify discounts provided to residents over the age of 62, and qualified low- income persons, to encourage water conservation and limit the General Fund subsidy of these discounts by raising qualifying age to 65 for senior discounts (while allowing only those already receiving the discount at age 62 to continue); and WHEREAS, the use of recycled water shall be developed for landscape irrigation applications to decrease the use of potable water for such purposes, and a fee is imposed to develop such a program. NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: SECTION 1. As provided by Municipal Code §14.04.070, regarding Water Rates and Charges, the Master Fee Schedule (Resolution No. 92 -100) provisions regarding water rates, fees and charges, is hereby amended as set forth in the Exhibit A, attached hereto and incorporated here in by reference. SECTION 2. This resolution shall become effective August 1, 2010 upon its passage and adoption.