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Dennis Marguet, 2547 Larrikeet Court, did not think he was getting his money's worth for City water. He has purchased a water purifier for his home. He referred to the 5 % increase in Zone 7 rates and related his calculations which indicated the City was actually raising its share of the water rates by 20%. He pointed out the City of Dublin has reduced its water rates. Some reasons he was given for the increase was the cost of electricity and personnel costs. He indicated with deregulation, the cost of electricity is going down. Most businesses are currently giving only 2-3 % raises to employees; are the City's personnel costs due to raises or additional employees? He referred to a chart included in the handouts at a workshop on water rates and indicated that according to that, the household that conserves water actually pays more than a household that has high usage. Mr. Lum explained that 20% of the rates are allocated for fixed costs which does not change for users. He further explained the tiered system and how the low user does receive a discount. With regard to personnel costs, there was an additional employee hired. With regard to the cost of electricity, he stated that was a very small part of the rates and pointed out that the City does participate in the ABAG electricity purchasing pool, which saves money for the City. The basic reason for the increase in City water fees is due to the increase by Zone 7. With reference to the City of Dublin reduction in water rates, even with the reduction, Dublin is still 20 % higher than Pleasanton. Ms. Ayala referred to the staff report and reminded people that they are available a week before each Council meeting. Mr. Marguet was still of the opinion that the moderate water user paid more for water than the high water user. He urged the City to give a discount to those who conserve water or to have some kind of reward program. Herbert Marshall, 3202 Clifford Circle, indicated he was not happy about the increase in water rates, but commended the City for instituting an infrastructure replacement funding mechanism. There being no further speakers, the public hearing was closed. It was moved by Ms. Michelotti, seconded by Ms. Ayala, to adopt Resolution No. 98-22, adopting water rates for 1998. The roll call vote was as follows: AYES: Councilmembers - Ayala, Michelotti, Pico, and Vice Mayor Dennis NOES: None ABSENT: Mayor Tarver ABSTAIN: None Pleasanton City Council 3 / 17/98 Minutes 5