13 - Laserfiche WebLink

• Replenishing the fund reserve and restoring the enterprise fund's financial position. To inform the ratepayers of the proposed rate changes, a public hearing notice was mailed to every account holder in compliance with the State's Proposition 218 requirements. Additionally, information regarding the proposed rate increases has been provided on the City's website and through other City platforms, materials, and presentations. RECOMMENDATION Staff recommends the City Council hold the public hearing and accept the 80 validated protests to the rate changes received as of the close of business on September 8 (the date of the drafting of the report) as well as any additional protests received through the public hearing on September 19, 2023. If the City does not receive written protests to the rate changes from more than 50 percent of the affected customers, staff recommends the City Council adopt by resolutions the proposed changes in the Master Fee Schedule to be effective November 1, 2023, and January 1, 2024, for both water and sewer rates. FINANCIAL STATEMENT The City's water and sewer utility funds are enterprise funds, as such, the cost of operation of these utilities are fully paid by the users (100 percent fee-based). The proposed rate increases address the operations and maintenance and capital needs of the water, recycled water, and sewer enterprise funds to implement necessary water distribution system improvements in the near term and maintain the current recycled water and sewer systems. By State law, delivered water is charged at the cost of service so no profit is made by the enterprise; any revenues not expended at the end of the fiscal year are applied to future years' costs. The City is a customer of the utilities and will also pay the increased charges for the water and sewer services at City parks and government buildings, including the Police Station, City Hall, Operations Services Center, Library, Fire Stations, and the Callippe Preserve Golf Course. The funding for the proposed rate increases will be a part of the FY24 mid-year budget process. BACKGROUND The City is a water retailer that operates and maintains a water distribution system to deliver water to city residences and businesses for domestic and irrigation uses and other uses such as firefighting. Alameda County's Zone 7 Water Agency is the Tri- Valley's water wholesaler that procures water from the state and produces water from its regional wells, which it sells to Pleasanton and other Tri-Valley water retailers for distribution. Pleasanton is a unique retailer in that in addition to buying water from Zone 7, it also has an annual groundwater pumping quota of 3,500-acre feet from its own local wells. In prior years, 3,500-acre feet is approximately 20 percent of all water delivered within Pleasanton. Page 2 of 19