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Further Report~ Re: Sewer Service Charge Increase Mr. Edgar stated this item had been continued from the meeting of June 25th in order to present the Council with additional information regarding the V.C.S.D. rate increase. Mr. Walker presented the staff report which included the staff report submitted on June 25th, V.C.S.D. Ordinance No. 102 which establishes the Sewer Service Charge to be effective August 1, 1973, and the Income and Expense Estimate for V.C.S~D. Sewer operation. Mr. Scheidig presented a letter received from the Internal Revenue Service regarding the validity of the V.C.S.D. rate increasec He informed the Council that until the interim price freeze was removed, either by its termination on August 13th or the implementation of Phase IV, neither V~C.S.D. nor Pleasanton may increase its fees above those in existence prior to the freeze~ Councilman Kinney expressed his concern regarding the use of funds by V.C.S.D. which would be received from Pleasanton. It was moved by Councilman Reid, and seconded by Councilman Herlihy, that Ordinance No. 701, amending Ordinance No. 695, be adopted as an urgency measure with the effective date of the ordinance to be as of the time that said fee may legally be charged. Councilman Reid indicated the urgency related to the obli- gation by the City to pay a set service charge to Valley Community Services Dis- trict pursuant to a 1967 Agreement and the V.C.S.D~ has increased its rates and unless the City increased its rate to match that of V.C.S.D. the City's General Fund would have to pay the difference. The roll call vote was as follows: AYES: Councilmen Herlihy, Kinney, Mori, Reid, and Mayor Pearson NOES: None ABSENT: None City Council Consideration~ Re: Joint Powers Agreement to implement the Water Management Plan Mr. Scheidig presented his report and revised joint powers agreement, and stated that the City Council should determine if they desire to proceed with a Joint Exercise of Powers agreement to implement the Water Plan. Mayor Pearson stated this was an important issue and would be a long-range program and should have full support of the Council. Councilman Herlthy commented that he would like to have the item tabled until completion of negotiations with V.C.S.Do Councilman Mori stated that a decision should be made prior to October 1st at which time it must be determined how to implement the Water Management Plan~ He commented that the City Council had previously endorsed the concept of the Joint Powers Agreement, after study by the Water Interest Committee to determine the most expedient way to implement the Water Management Plan. Councilman Reid etated that an agency to implement the Water Plan must be approached with a positive attitude with all parties , and he expressed concern regarding the arbitration clause in the contract. It was moved by Councilman Mori, and seconded by Councilman Kinney, that the City Council reaffirm their position supporting the concept of the Joint Exercise of Powers Agreement between Livermore, V.C.S.D., and Pleasanton, to implement the Water Management Plan in the Valley. The roll call vote was as follows: AYES: Councilmen Kinney, Mori, Reid, and Mayor Pearson NOES: Councilman Herlihy ABSENT: None 4. 7/16/73