REPORT TO THE CITY COUNCIL
February 26, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
SUBJECT
Title
Actions pertaining to adopting a five year plan for water rates, pursuant to Proposition 218
1. ***RESOLUTION - Adopting a Five Year Water Rate Plan in Compliance with Proposition 218
2. ***RESOLUTION - 522nd amendment to the Master Fee Schedule ("MFS") Resolution No. 80-420 to adjust water fees in the Public Utilities Water Fee Section according to Proposition 218
3. ***RESOLUTION - Adopting a Water Affordability Credit Program ("Water ACP")
Body
RECOMMENDATIONS
The Administration recommends that the Fresno City Council adopt a five-year water rate plan, adopt a Water ACP, and approve a Resolution amending the MFS to reflect the adopted rates and the Water ACP.
EXECUTIVE SUMMARY
On July 31, 2014, the City Council rescinded the Department of Public Utilities' Water Division's ("Water Division's") four-year capital plan and schedule of rates, fees, and charges to finance the recommended capital plan ("rate plan"). City Council approved the capital and rate plans in August 2013, and they became effective in September 2013. Upon rescinding the Water Division's capital and rate plans, City Council directed the Administration to initiate a participatory roundtable process to foster and undertake serious discussions related to all aspects of a future 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 from the participatory roundtables.
On November 20, 2014, the Administration presented its findings and a summary of public input from the roundtable participatory process. Upon receiving and considering the Administration's reco...
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