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• • <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />AGENDA DATE REQUESTED March 25, 1991 <br />REQUESTED BY Jeff Litchfield DEPARTMENT Director of Finance <br />REPORT RESOLUTION XX ORDINANCE <br />EXHIBITS: Ordinance <br />Report <br />SUMMARY AND RECOMMENDATION <br />At the Council meeting on March 11, 1991, Council was presented with an <br />ordinance that would change the method of calculating sewer charges for <br />residential customers. <br />Staff believes that the diversity of our customer base and our proximity to <br />the coast makes the current system undesirable. Staff has estimated that <br />continuation with the current system will have the affect of rasing sewer <br />rates by 5.26 percent. <br />Staff had proposed a method whereby sewer rates would be determined based on <br />85$ of each months water consumption and that the sewer bill have an <br />established cap for any individual month. <br />The ordinance was tabled until further information could be gathered that <br />isolated our customers that are over 65 years of age (Senior Citizens). I <br />have attached a report and Exhibit that shows the impact on a sample of our <br />Senior Citizens. The results of the sample indicate that Senior Citizens will <br />benefit by the change to the proposed method. <br />Councilman Sutherland had me explore the possibility of providing a monthly <br />cap lower than the $40.00 that I originally proposed. Upon further review, I <br />believe that the City can maintain financial integrity in the Utility Fund <br />with a monthly cap of $37.50. <br />The attached ordinance is for the change in the method of calculating the <br />sewer charge for residential customers only; it does not affect the <br />calculation of multiple units or commercial accounts nor does it have a major <br />impact, either positive or negative, on .the financial condition of the Utility <br />Fund. <br />ACTION REQUIRED BY COUNCIL: <br />Approve Ordinance changing the method of calculating the residential sewage <br />charge to be based on 85$ of the water consumption and at no time to exceed <br />$37.50 in any given month. <br />AVAILABILITY OF FUNDS: <br />GENERAL FUND <br />UTILITY FUND <br />OTHER <br />ACCOUNT NUMBER: N/A FUNDS AVAILABLE: <br />YES NO <br />APPROVED FOR CITY COUNCIL AGENDA <br />Q~~ T. a ~ ~1-~~ <br />ROBERT T HERRERA DATE <br />CITY MANAGER <br />