RES 16894 - Laserfiche WebLink

RESOLUTION NO. 16 - 894 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON WITH RECOMMENDATIONS RELATED TO ZONE 7'S PROPOSED FIXED RATE METHODOLOGY, DROUGHT SURCHARGE AND RESERVE POLICIES WHEREAS, Zone 7 supplies most of the City of Pleasanton's water; and WHEREAS, Zone 7's rates are set by the Zone 7 Board of Directors and passed through to Pleasanton's customers on the City of Pleasanton's water invoices; and WHEREAS, The continuing drought and related water conservation is adversely affecting Zone 7's ability to cover its fixed operating expenses which, in turn, caused Zone 7 to deplete their operating reserves; and WHEREAS, To provide revenue stability, Zone 7 is proposing to recover 35% of their expenses through fixed rates and 65% through variable rates; and WHEREAS, Zone 7 is also proposing to charge a Drought Surcharge of $0.62 per ccf in 2017 and $0.49 per ccf in 2018 to replenish their reserves; and WHEREAS, Zone 7 is also proposing a policy setting operating reserve levels equal to approximately 50% of operating expenses; and WHEREAS, Pleasanton City Council reviewed Zone 7's proposal and expressed support for Zone 7's fixed rate methodology, the proposed reserve policy and the 2017 Drought Surcharge; and WHEREAS, The Pleasanton City Council recommends that Zone 7 adopt the Drought Surcharge of$0.62 per ccf for one year and return next year with a proposed Drought Surcharge for 2018 after reviewing actual FY 2016/17 revenues and expenses; and WHEREAS, The Pleasanton City Council recommends that Zone 7 make a demonstrated effort to reduce fixed expenses. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE, AND ORDER THE FOLLOWING: SECTION 1. The City Council supports Zone 7's proposed fixed rate methodology, the proposed reserve policy and the proposed 2017 Drought Surcharge of$0.62 per ccf. SECTION 2. The City Council recommends that Zone 7 return next year with a proposed Drought Surcharge for 2018 after reviewing actual FY 2016/17 revenues and expenses. SECTION 3. The City Council recommends Zone 7 to make a demonstrated effort to reduce fixed expenses. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on October 4, 2016.