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$15.70 for an average resident. The $1.82 for water would not add a CPI charge. Staff proposes doing the same thing for sewer each July, which would be just on the local and not regional portion. The second major difference in the structure is the pass- through of increases by Zone 7 which typically occurs on January 1 where DSRSD and Livermore being timed as they occur. Whenever Zone 7 or DSRSD goes up, they would pass that cost through. Regarding projections for Zone 7 in the future, Mr. Smith presented the anticipated pass through rates, stating that 8.25% is pretty accurate, but it may come down slightly. The cost of water is $2.02. By also blending well water, they can save residents 20 cents per CCF which is advantageous. He then presented rates projected out to 2015. If rates go up each year, the City would adjust its wholesale cost of water to the rates in the first year and then add other surcharges in the other future years. In summary, staff has exhausted all of its options to absorb any more increases and have done their due diligence, and will continue to do this in the future. He also noted that people pay $1.02 per 5 gallons of water delivered to homes, which is a good deal for what they do. Staff recommends approving the rates as proposed. Mayor Hosterman thanked Mr. Smith for the great report and noted that the latest report that came from the U.S. Council of Mayors states cities will need to spend about $3.8 trillion in this country to upgrade and improve water, sewer, and storm water infrastructure over the next 20 years. Vice Mayor Thorne said if a senior has a discount and goes above 40 CCF, he confirmed the discount is removed only for that billing period. Mayor Hosterman opened the public hearing. Karla Brown, President of the Kottinger Ranch Homeowners Association, said their HOA is proactive and purchased Weather Track which reads weather patterns to manage sprinkler systems and has helped their water bill tremendously. Regarding seniors, many have gardens and need to water them, and just because they have family members moving back into their household and /or staying in place in their home, it seems they should qualify for something if they go over 40 CCF. She said the top tier is on a 25% which she felt was a healthy jump and is a lot higher than any of the other tiers. Also, as a homeowner, many people have questioned why rates are increasing with all of the rain, and she asked how this affects the City's costs as it purchases water. Hardial Singh questioned if there is a way to find out on a daily basis whether residents are under tier 1 or whether they have jumped to tier 2. He questioned how easily this could be determined. He also asked for what 40 CCF stands for, and Mayor Hosterman noted CCF represents about 100 cubic feet. Roberta Christensen said she lives in a multi family residential building that has 4 units on a master meter and she is the only senior. She asked how she would be protected and confirmed she should contact Mr. Smith. Mayor Hosterman closed the public hearing. City Council Minutes Page 6 of 16 Junel, 2010