REPORT TO THE CITY COUNCIL
February 5, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
SUBJECT
Title
Actions pertaining to adopting amended water rates in accordance with Proposition 218
1. Hold public hearing regarding proposed water rates
2. ***RESOLUTION - ratifying the Proposition 218 process according to California Constitution Article XIIID
Body
RECOMMENDATION
The Administration recommends that the Fresno City Council hold the public hearing regarding proposed water rate increases and approve Resolution _____ ratifying the Proposition 218 process for the proposed water rates.
EXECUTIVE SUMMARY
On July 31, 2014, the City Council rescinded the Water Division's four-year capital plan and schedule of rates, fees, and charges ("rate plan") needed to finance the recommended capital plan. The capital and rate plans had been approved by City Council in August 2013 and became effective in September 2013.
Upon rescinding the Water Division's four-year capital and rate plans, the City Council directed the Administration to initiate a participatory roundtable process to foster and undertake serious discussions related to all aspects of the proposed capital plan, including regional water issues, the scope of proposed projects, alternatives for financing capital costs, alternatives to the City's current policy on water, and an evaluation of subsidy options for low-income ratepayers. City staff was also directed to prepare findings and a summary of the discussions and to incorporate the feedback received from this process to develop a revised capital and supporting rate plan.
On November 20, 2014, the Administration presented its findings and summary of discussions from the roundtable participatory process. Based on comments received from the public during the participatory roundtable process, the Administration developed a new, five-year capital plan totaling approximately $429 million and a...
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