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Councilmember Sullivan questioned and confirmed with Ms. Wagner that the DSRSD fee has two components; the Livermore/Amador Valley Water Management Agency (LAVWMA) portion is $7,015, which is comprised of Dublin, San Ramon, Pleasanton, Livermore and a small portion of the unincorporated portion of Alameda County, and DSRSD wastewater treatment plant fee is approximately $5,985 for the debt of the repair, replacement and expansion of their facility. LAVWMA issued $150 million in bonds to expand and repair the pipeline, which starts in Dublin and goes to the Bay in San Leandro. Those debt service payments of $8 million annually are paid for strictly with connection fees. So ratepayers pay only a small portion of the repair and replacement of a portion of the pipeline. She said on the operating side is the user charge, which pays for staff time. Vice Mayor Thorne pointed out that this is something Pleasanton does not control, and questioned the protest procedure if the Council did not like the connection fee. Ms. Wagner said Pleasanton represents more than 50% of their customers, the Proposition 218 protest hearing only applies to the user fee component and does not apply to increasing connection fees. However, the DSRSD Board, not comprised of Pleasanton boardmembers, adopted the rate increase on May 5, 2008, and contractually, Pleasanton is obligated to adopt their fees within 60 days or effective July 1, 2008. City Manager Fialho reiterated the residential fees were decreasing, as well as a majority of the commercial rates. The connection fees are not subject to Proposition 218 and the City can pass on comments to the Board if concerned. Mayor Hosterman reminded the Council that the facility has incurred problems necessitating repair, capacity expansion and replacements, and this is a way to pay for that infrastructure. She said the pipeline is completed and is serving the community well, and the debt must be paid. Mayor Hosterman opened the public hearing. There were no speakers, she closed the public hearing. Councilmember McGovern referred the discontinued DSRSD fee program where businesses could pay the fees in installments. She said she would like to see the program reinstated and requested that staff pass on the request to DSRSD. She noted that she was supporting adoption of the fess under protest. Motion: It was m/s by Sullivan/lThorne to adopt Urgency Ordinance No. 1979 amending Section 2 (part) of Ordinance 1082, as amended, by adding Section 15.08.285 and amending Sections 15.20.030, 15.20.040 and 15.20.180 concerning User Rates for Sewer Service and declaring the urgency thereof to take effect July 1, 2008, and Resolution No. 08-213 amending Resolution No. 92-100 (Master Fee Schedule) to establish revised regional sewer rates, fees, and charges. Motion passed by the following vote: Ayes: Councilmembers McGovern, Sullivan, Thorne, Mayor Hosterman Noes: None Absent: Councilmember Cook-Kallio Abstain: None NOTED PRESENT: Councilmember Cook-Kallio joined the meeting 8:35 p.m City Council Minutes 6 June 3, 2008