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<br />REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE:CLERK OF COUNCIL USE ONLY: <br />NOVEMBER 19, 2019 <br />APPROVED <br />TITLE: <br />As Recommended <br />PUBLIC HEARING –RESOLUTION <br />As Amended <br />ADJUSTING CITY WATER AND SEWER <br />st <br />Ordinance on 1Reading <br />nd <br />RATES(NON-GENERAL FUND) <br />Ordinance on 2Reading <br />Implementing Resolution <br />{STRATEGIC PLAN NO. 6,1H} <br />Set Public Hearing For__________ <br />CONTINUED TO <br />/s/ Kristine Ridge <br />FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Hold a public hearing and adopt a resolution adjusting the City water and sewer rates effective <br />January 1, 2020; July 1, 2020; July 1, 2021; July 1, 2022; and July 1, 2023. <br />DISCUSSION <br />The City owns and operates a water distribution system and a sewer collection system that provides <br />servicesto a community of nearly 350,000 residents and 5,000 businesses. The City water system <br />consists of approximately 4 miles of mains, 10 reservoirs, 7 pumping stations, and 20 active wells. <br />The City sewer system consists of 398 miles of main, 8,000 manholes, and 2 lift stations. <br />On February 5, 2018, the City Council directed staff to perform a comprehensive rate study for both <br />the water and sanitary sewer enterprises. A prior such study had beenperformed in 2014. On July <br />3, 2018, upon completion of a competitive bid process, the City awarded a contract to Stantec to <br />develop a financial plan, cost of service, and rate structure analyses for water, recycled water, and <br />sewer rates. The objectives of the study were to ensure the financial stability of both water and <br />sewer enterprises,while ensuring that the rates are in compliance with applicablelaw (namely <br />California’s Proposition 218 requirements). On October1, 2019, Council received the report <br />(Exhibit 2) andauthorized staff to notify property owners of the proposed rate adjustments <br />considered here. <br />Capital Improvement Program <br />The City’s Water Resources Divisionhas identified that both the water and sewer utilities need <br />significant investment in the repair and rehabilitation of its aging infrastructure. The Water <br />Enterprise has completed a Water Master Plan which identifies critical projects that will average <br />nearly $15 million in annual capital spending for the next 20 years. Over the past 4 years the City <br />has spent an average of almost$4 million annuallyon water-related CIP projects. The water and <br />sewer systems are already showing signsof distress. In the past year alone the systems <br /> <br />