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ATTACHMENT RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON, ENCOURAGING THE ZONE 7 WATER AGENCY BOARD OF DIRECTORS TO REEVALUATE THEIR CURRENT THREE-YEAR RATE PROPOSAL FOR INCREASES COMMENCING JANUARY 1, 2016 WHEREAS, due to the ongoing historic drought, water demand has substantially decreased causing negative economic impact on the Zone 7 Water Agency as well as its Retailers; and WHEREAS, the Zone 7 Water Agency Board of Directors is considering a three-year wholesale treated water rate increase beginning with an initial increase of $0.64/CCF or up to 36%; and WHEREAS, the current prevailing public perception is that customers' conservation savings are being "rewarded" with substantial rate increases; and WHEREAS, the City of Pleasanton supports water conservation and the coordination of water activities and is committed to working with all local, regional and state agencies to develop water policies that minimize the need for water rate adjustments; and WHEREAS, the City of Pleasanton understands and supports the need for predictable revenues to support necessary capital improvements and sufficient operating reserves; and WHEREAS, the City of Pleasanton supports a rate structure which is consistent, fair and equitable to all of the tri-valley retailers; NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: SECTION 1. That the City of Pleasanton recommends that the Zone 7 Water Agency, Board of Directors reevaluate their current rate proposal for increasing wholesale rates commencing January 1, 2016; and SECTION 2. That the City of Pleasanton recommends that the Zone 7 Water Agency, Board of Directors implement a one-year drought surcharge to replenish operating reserves to an amount equal to between 20% and 30% of operating expenses; and SECTION 3. That the City of Pleasanton recommends that the Zone 7 Water Agency, Board of Directors take adequate time to further develop its CIP to ensure the proposed projects are fully justified; that there is a reasonable implementation timeline; and that Zone 7 relies on issuing bonds for the major capital projects to reflect the useful life of the facility and ensures future users pay their fair share of the cost; and SECTION 4. That the City of Pleasanton recommends that the Zone 7 Water Agency, Board of Directors abandon the proposed structural changes to the rates relative to varying "Fixed Charges" among the tri-valley retailers; and