CC MIN 03152022 - Laserfiche WebLink

In response to Mayor Brown, Deputy Director of Baptista confirmed the excess use penalties collected were low because customers abided by them and conserved. She confirmed that for the Phase 2 drought rates is everyone pays the same while being encouraged to conserve water. Mayor Brown opened the public hearing. Olivia Sanwong reported Zone 7's last Water Rate Study was conducted in October 2018 with another scheduled for October 2023. She noted Pleasanton's last Water Rate Study was in 2015 and Pleasanton's Water Rate Study is out of date. She noted the Dublin San Ramon Services District (DSRSD) pays almost double what Pleasanton does for the fixed charge and advised this is contributing to the City's issues. She encouraged the City to update its Water Rate Study. She reported Zone 7 lists its variable rate a $2.06 although both the DSRSD and Pleasanton websites use a higher number. She advised the City's operating fund is at 34% with a goal of 35% so there is flexibility. VP advised Zone 7 has used drought emergencies whenever a rate increase is on the table and advised 2022 is the window where Zone 7 can lock in a rate increase for the next four years. He encouraged the City not to blindly follow Zone 7. He questioned why Zone 7 tried to get the 15% back through its customers instead of conserving its budget. He stated it is not a true drought emergency because the staff presentation showed water supplies are adequate to meet the City's needs. He encouraged the City Council not to fall into the hands of Zone 7 and not to approve the rate increase. Mayor Brown closed the public hearing. Mayor Brown advised the City Council will continue with item 22 and move item 23 to the next meeting. Mayor Brown advised she would rather have residents pay a smaller amount now than a large fee at a later date when the City runs out of water. In response to Councilmember Testa, Councilmember Narum confirmed the City is currently performing a Water Rate Study. Mayor Brown noted the new study will also include issues related to Per- and Polyfluoroalkyl Substances (PFAS). Councilmember Narum advised it will also involve drilling new wells. In response to Councilmember Testa, Director Yurchak reported new water rates based on the forthcoming study would be effective on January 1, 2023, and new sewer rates would become effective on October 1, 2022. Councilmember Testa agreed with VP's public comments about penalizing those who conserve with higher rates. She advised the City is also looking at other future increases and noted she is uncomfortable with activating the drought rates. She reported Zone 7 is not yet increasing rates because it is waiting to see what the future conditions will be. Councilmember Narum recalled in 2015 the City Council did not look at sample bills like those presented tonight. She advised she has a philosophical challenge of telling a customer who did their part for conservation they have to pay more for what they did use. She advised at this juncture, the City does not have many choices because it will need to maintain the Water Fund's reserves if it issues bonds to finance the PFAS and new well. She advised she does not like activating the Stage 2 drought rates but noted the City probably does not have a choice. Councilmember Narum moved to activate the Stage 2 water drought rates. Mayor Brown seconded the motion. Mayor Brown advised residents have done a great job reducing water usage in the past. She reported they are in a drought and stated that 15% is an achievable conservation goal. She explained raising the City Council Minutes Page 18 of 22 March 15, 2022