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Councilmember McGovern referred to the commercial accounts for Ruby Hill and confirmed the cost is based on water consumed, the base rate is multiplied by water consumed and is increasing by 6%. This includes the clubhouse, golf course, restaurant, and pro shop. Councilmember Sullivan referred to the water rate issue and confirmed it is a flat fee per household. He suggested looking at water usage as it relates to water conservation. City Manager Fialho said staff is bringing forth later in the year a water rate proposal and a local sewer rate proposal which can be included in discussions with the Finance Committee. Mayor Hosterman opened the public hearing. There were no speakers, and she closed the public hearing. b. Consider approving Dublin San Ramon Services District Regional sewer user charges and connection fee adjustments for fiscal years 2008/09 and thereafter Ms. Wagner said the City has 18,000 Pleasanton accounts serviced by DSRSD, of which 94% are residential accounts. The regional rates are proposed to decrease for residential customers and slightly increase for some commercial accounts. The bi-monthly residential rates are decreasing from $41.30 to $38.60; the bi-monthly will decrease from $63.00 to $60.30. Commercial and industrial rates will slightly increase or stay the same depending upon the account, which are based on water consumed. DSRSD approved these rates on March 18, 2008 and the City is contractually obligated to implement the rates by July 1s` In addition to the sewer users charges, staff is also requesting approval of the increase in the DSRSD's sewer connection fee which are facility fees to pay for the cost to connect to their wastewater treatment plant and to the Livermore/Amador Valley Water Management (LAVWM) facility for disposal. Fees are paid at the building permit stage by new development and also changes to existing property sewer usage. The fee has not been increased since 1999, it is currently $9,900 per dwelling unit equivalent, and the study determined it should be increased to $15,330. On May 5, 2008, the DSRSD Board heard the item, there was a local developer who requested a reduction in the fee, and the DSRSD Board approved a fee of $13,000 with the caveat that the DSRSD staff and consultant (Black and Veech) would continue to work with the local developer to bring back the issue later in the year, and are convinced that the fee should be increased to the higher level. However, at this time, it is set at $13,000 effective July 1, 2008. Therefore, staff recommends Council open the public hearing, allow input, and take action. Councilmember McGovern said if a restaurant wanted to open in the Kolln Hardware site, what would be the connection fee. Ms. Wagner said it depends upon the size and the number of people frequenting the restaurant. Steve Cusenza advised that the fees are based on dollars per square foot. Kolln Hardware may have a factor of .2 gallons per square foot, and a restaurant is most likely .6 gallons per square feet. It depends upon the square footage and type of use, and they review these on a case-by-case basis. Councilmember McGovern asked what the average fee was for a business to open, and Mr. Cusenza said the fees are going up about 30% for new connection, and for remodels, the fee would be assessed. Ms. Wagner said an office space is paying about $50,000 and a restaurant is paying around $100,000, and a single family home is paying $13,000. Councilmember McGovern confirmed that typically, the $100,000 is paid upfront; however, City Attorney Roush said for restaurants downtown, the City has a program that allows the restaurant owner to pay 20% down and finance the remaining over afive-year period of time. City Council Minutes 5 June 3, 2008