FOR: Utilities Commission Meeting [April 16, 2024]
TO: Honorable Chairperson and Commission
APPROVAL: Stephen Dopudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
...Title
Water and Wastewater Rate Study Presentation.
RECOMMENDATION
Request that the Utilities Commission receive and file the Water and Wastewater Rate Model. (ACTION)
...Body
BACKGROUND
The agenda includes a discussion and presentation during the meeting by F.G. Solutions, the City's Water and Wastewater Consultant, regarding the proposed water and wastewater rate model.
ANALYSIS/DISCUSSION
At the February 27, 2024, City Council Meeting staff requested that the item pertaining to a public hearing under Proposition 218 to adjust water and wastewater rates be tabled until a future date to be determined. It was further explained that City staff would bring back for City Council consideration to set a new public hearing with new and proper 218 notification materials.
Subsequently, staff requested a 2023 Water and Wastewater Rate Study Amendment 1 (ATTACHMENT 1) to a professional services agreement with FG Solutions, LLC with a timeline to update rate calculations with rates effective January 1, 2025, 2026, 2027, 2028, and 2029. Below is the proposed milestone schedule:
Proposed Milestones
Date
Notice to Proceed
03/08/2024
Draft Rate Proposal to City Staff
03/26/2024
Water Subcommittee Meeting
03/27/2024
Attend Various Meetings
TBD
Final Rate Proposal Developed
04/09/2024
Utilities Commission Meeting
04/16/2024
Council Sets Proposition 218 Hearing
04/23/2024
Preliminary Draft Report Delivered
05/16/2024
Final Draft Report Delivered
05/31/2024
Proposition 218 Public Hearing
06/25/2024
1st Rate Adjustment
01/01/2025
On March 26, 2024, the Water Subcommittee provided feedback on the proposed Water and Wastewater Rate Model. On April 23, 2024, staff will recommend that the City Council set a Public Hearing for Water and Wastewater Rates for June 25, 2024.
FINANCI...
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