HomeMy WebLinkAboutAgenda Report - October 5, 1988 (57)C O L., C I L C O h I M U N I C A T O r l
TO: THE CITY COUNCIL
FROM: THE CITY MANAGERS OFFICE
COUNCIL MEETING DATE
September 28, 1988
SUBJECT: REPORT REGARDING PROPOSED ALTERNATE WATER RATE SCHEDULE
PREPARED BY: City Manager
RECOMMENDED ACTION: None required. Information only.
BACKGROUND INFORMATION: At the "Shirtsleeve" session of September 20, 1988
the City Council reviewed the recommended
five-year Capital Improvement Program for the
water system. The major portion of that program,
if it is to be accomplished in the five-year period as presented, will involve
long-term financing and the issuance of Certificates of Participation as NAe
did in the recent White Slough expansion project. The total project cost is
approximately $6.4 million. The original schedule called for a public hearing
on this matter at the regular City Council meeting of October 19, 1988.
During the Council's review at the September 20 "Shirtsleeve" session,
comments by some Councilmembers led staff to conclude that it would perhaps be
of value to develop an alternate approach to adjustments to the water rate
schedules, while still maintaining flat rates for al? residential units. The
approach staff is rev developing involves a series of flat rates which
increase with the size of the home, i.e. the number of bedrooms as NAe have
done for years with the sanitary sewer rate schedules.
The development of this alternative will require a
change in the financing schedule. As it now stands, the revision will result
in the following series of events if the Council opts for long-term financing:
November 8, 1988 - "Shirtsleeve" - Water Rates and Financing
November 15, 1988 - "Shirtsleeve" - Water Rates and Financing
(if necessary)
November 16, 1988 - City Council sets January 4, 1989 for public
hearing on water rate adjustments as required
by State law
January 4, 1989 - City Council holds public hearing on water
adjustments; adopts resolution setting rates
effective February 1, 1989 (recommended)
Council Corimunication
Water. Kate Schedule Adjustments
September 28, 1988
Page - 2 -
January 25, 1989 - Pre-closing (San Francisco)
January 26,-1989 - Closing; proceeds received by City (San Francisco)
February 1, 1989 - lav rates become effective
W will keep the City Council apprised as this
schedule moves along.
Respectfully submitted,
Thomas A. Peterson
City Manager
TAP :b r