HomeMy WebLinkAboutStaff Report 218-06CMR:218:06 Page 1 of 2
TO: HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: MAY 9, 2006 CMR: 218:06
SUBJECT: UTILITIES ADVISORY COMMISSION RECOMMENDATION TO
APPROVE A RESOLUTION ADOPTING A WATER RATE
INCREASE
RECOMMENDATION
Staff and the Utilities Advisory Commission (UAC) recommend that the City Council adopt the
attached resolution to increase water revenue by approximately $1.47 million or 7%, to be
effective July 1, 2006.
DISCUSSION
The Council approved a 10.3% retail water revenue increase for July 2004 implementation.
During the budget process, staff informed Council that if water sales remain flat or if there was a
rise in wholesale water purchase costs from San Francisco Public Utility Commission (SFPUC),
a rate increase may become necessary. The Water Fund sales levels for FY 2005-06 have fallen
further from FY 2004-05 levels and staff proposes a revenue increase of 7% for FY 2006-07.
With the approval of the proposed 7% increase, the Rate Stabilization Reserve (RSR) balance is
projected to remain $1.2 million below the minimum level approved by Council.
BOARD/COMMISSION REVIEW AND RECOMMENDATIONS
The UAC reviewed this recommendation and approved it unanimously at the May 3, 2006
meeting.
RESOURCE IMPACT
Approval of this proposed rate increase will raise the Water Fund sales revenues by
approximately $1.47 million for FY 2006-07.
ENVIRONMENTAL REVIEW
The adoption of the resolution does not constitute a project under the California Environmental
Quality Act. Therefore, no environmental assessment is required.
PREPARED BY: Lucie Hirmina, Utilities Rates Manager
Tom Auzenne, Assistant Director Customer Support Services
CMR:218:06 Page 2 of 2
DEPARTMENT HEAD:
CARL YEATS
Director, Administrative Services
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
ATTACHMENTS
A: Resolution
B. Water Rate Schedules W-1, W-2, W-3, W-4, W-6 and W-7
C: Minutes of the UAC meeting of May 3, 2006