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