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File Number: 19-481 <br />Public present: Maureen Forney, Julietta Hannah, Deborah Hirsch, Virginia Madsen, <br />Sarah Bailey, Ms. Soto, David Bardoff, Carol Bardoff <br />1.B. Announcements <br />Mayor Cutter announced that Agenda Item 2.B. would be discussed first <br />2. DISCUSSION ITEMS <br />2.A. 19-181 <br />Staff Report for the City of San Leandro City Council Finance Committee to <br />Receive Report on Wastewater Utility Financial Plan and Rates Study and <br />Wastewater Utility Capacity Charges Study and Provide Direction to Staff on <br />Proposition 218 Notices <br />Public Works Director Pollart stated that a rate study is performed for the Water Pollution <br />Control Plant (WPCP) every 5 years to ensure that there is adequate income for <br />operational needs. Due to the retirement of both the former WPCP Manager and <br />Administrative Analyst, the last study performed was for 2012-2017. <br />WPCP Manager Jenson stated that a consultant was hired to assist with the <br />rate study presented the findings to the Committee. Based on the study, an initial increase <br />of 3.5% will take effect January 1, 2020 with a maximum of 9% increase each year after. <br />Mayor Cutter questioned if the rate can be lowered from 9%, as this appears to be too <br />high. <br />WPCP Manager Jenson stated the 9% increase is not a set increase, merely the <br />maximum that can be increased. It is customary charge for actual flow usage or increased <br />by the Consumer Price Index (CPI). Jenson explained to the Finance Committee how <br />single family, multi-family, multi-dwelling, and industrial billings are calculated. The City of <br />San Leandro's rates are very similar to the surrounding agencies, e.g. Castro Valley and <br />Oro Lomo districts. <br />The timeline for rate increase is as follows: with approval of Finance Committee, the rate <br />study will be taken to City Council on May 6, 2019 for approval; a ballot will be mailed out <br />to each resident to which they will approve or not approve and mail back to the City; at the <br />July 1, 2019 City Council meeting, WPCP will hold a Public Meeting, to which the public <br />will have another opportunity to approve or not approve the rate increase; all ballots will be <br />tallied and if approved, rates will be provided to the Alameda County Assessor's office to <br />be included in the 2020 Property Tax billing for all residents; EBMUD bills commercial <br />business, and heavy industrial businesses will continue to be billed via the City's Finance <br />Department. <br />Committee Recommendation for City Council Consideration <br />The Committee recommends that the study to be taken to City Council. <br />Page 2 City of San Leandro Printed on 9/11/2019 <br />34