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PLEASANTONo CITY COUNCIL AGENDA REPORT 21 October 6, 2015 TITLE: CONSIDER RESOLUTION ADOPTING WATER AND SEWER RATES AND AMENDING THE MASTER FEE SCHEDULE EFFECTIVE OCTOBER 15, 2015 SUMMARY On July 21, 2015 the Council authorized staff to mail the Proposition 218 notice to the ratepayers regarding the proposed changes to the water and sewer rates and set the public hearing date for consideration of this matter by the City Council on October 6, 2015. In addition to mailing this notice to all ratepayers, staff also met with the Economic Vitality Committee of the City, the Economic Development and Government Relations Committee (EDGR Committee) of the Chamber of Commerce, held two public workshops on the proposed rate changes and met with several large water and sewer customers to discuss the impact of the proposed rate changes on their bills. To ensure that both the water and sewer enterprises remain fiscally solvent and that appropriate reserves are in place to fund system maintenance and replacement obligations, staff is recommending for the average residential customer an average increase of $10.73 per bi- monthly period for water and sewer rates effective October 15, 2015. This results in an overall rate increase of 6.7 %. The following table demonstrates this recommendation for a residential customer who uses 30 100 cubic feet (CCF) of water per bi- monthly billing period (22,440 gallons of water over a 60 day billing period): AVERAGE RESIDENTIAL ACCOUNT BI- MONTHLY BILLING PERIOD *assumes 5/8" meter charge RECOMMENDATION Staff recommends the Council hold the public hearing and accept the ninety-eight (98) written protests received as of September 29 plus any additional protests received to date to the rate changes. Assuming there are not more than 50% written protest to the rate changes from affected customers, staff recommends the Council adopt by resolution the proposed changes in the water and sewer rates in the Master Fee Schedule to be effective October 15, 2015. FINANCIAL STATEMENT The water and sewer funds are enterprise funds. The operations of these funds are 100% fee based and as such, the proposed rate increases will be borne by the water Based on (30 CCF) Bi- monthly Monthly Current Bill Recommended Rates $ Difference $ Difference Sewer Local $ 24.46 $ 25.19 Regional 52.09 52.09 Total 76 55 77.28 Water 83.20 93.20 Total $159.75 $170.48 $10.73 $5.37 *assumes 5/8" meter charge RECOMMENDATION Staff recommends the Council hold the public hearing and accept the ninety-eight (98) written protests received as of September 29 plus any additional protests received to date to the rate changes. Assuming there are not more than 50% written protest to the rate changes from affected customers, staff recommends the Council adopt by resolution the proposed changes in the water and sewer rates in the Master Fee Schedule to be effective October 15, 2015. FINANCIAL STATEMENT The water and sewer funds are enterprise funds. The operations of these funds are 100% fee based and as such, the proposed rate increases will be borne by the water