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From YouTube: San Bruno City Council Meeting March 13, 2012 10a.
Description
San Bruno City Council Meeting
March 13, 2012
10a. Approve Notice and Protest Process for Water and Wastewater Rate Increases
A
B
These
recommendations
were
developed
jointly
between
my
department
and
also
with
finance
department,
supported
by
a
expert
outside
expert
specialized
in
the
same
type
of
rate.
Setting
the
project
manager
is
Jim
Shannon
and
he
will
help
me
with
the
presentation
and
also
I
have
here,
robert
howard,
the
deputy
for
operation,
force,
word
and
bothered
you
will.
During
this
presentation.
B
B
Had
deferred
maintenance,
deferred
replacement
and
F
is
not
addressed
will
continue
to
deteriorate.
The
need
for
addressing
over
age,
/
aging
infrastructure
is
reflected
through
experienced,
unacceptable
level
of
sewer
overflow
and
which
has
a
impact
on
the
public
and
the
environment
and
all
residents
also
our
system
experiencing
a
very
high
number
of
water,
main
Alex
and
breaks.
As
you
know,
our
age
of
the
infrastructure
is
between
100
year
to
60
year
old,
in
average
of
60
year
old
infrastructure.
B
B
To
continue
with
the
same,
to
continue
the
day
with
the
same
policy,
but
you
said
three
years
ago,
when
the
last
rate
adjustment
was
approved
and
to
address
the
need
is
known
by
you.
Our
recommendation
tonight
is
to
continue
with
the
same
aggressive
policy,
replaced
replacing
the
infrastructure
and
to
adjust
our
water
rates
with
a
nine
point,
eight
percent
and
our
wastewater
rates
with
10.3
frozen
this
rate.
How
you
can
see
is
slightly
below
the
ten-year
projection
done
three
years
ago.
B
This
is
beside
seeing
this
adjusting
the
rate.
Also,
our
recommendation
is
to
make
some
structural
adjustment
to
the
rate
to
improve
the
equity
across
the
customer
base.
This
generally,
you
say,
will
have
a
small
financial
impact
on
the
user's.
The
impact
is:
will
range
between
minus
or
plus
two
dollar,
for
residential
units
to
up
to
fifty
dollar
for
large
commercial
users.
B
Policy
goals
and
objectives
for
setting
trades
I
will
not
go
over
those
policy.
I
will
just
highlight
a
few
of
them,
which
was
to
minimize
the
financial
impact
on
the
customers
to
maintain
the
long-term
financial
sustainability
and
also
to
have
a
fair
and
equitable
to
set
rates
which
will
be
fair
and
equitable
to
all
customer
classes,
how
the
rates
are
developed
for
water.
B
Upcoming
projects
taking
place
just
to
mention
a
few
for
water
will
be
the
main
replacement
on
Marion
and
spyglass
drives
replacement
of
water
mains
between
Jen
Evan
and
san
bruno
Avenue.
Construction
of
the
college
pump
station
and
also
Cunningham
and
glam
view
tanks,
improvement
and
also
the
replacement
of
the
Commodore.
Well
just
to
mention
a
few
project.
B
B
Based
on
the
10-year
financial
projection,
our
recommendation
is
to
set
the
rates
for
five
for
the
next
five
years.
This
recommendation
was
supported
by
the
subcommittee
also
to
saturate
for
five
years.
The
reason
for
this
recommendation
is
to
have
greater
greater
certainty
for
project
planning,
also
to
reduce
administrative
costs,
for
rates
are
setting
and
to
be
able
to
phase
in
more
gradually
those
rate
structure
changes.
What
I
mentioned
before
I
must
mention.
Also
that
you
have
the
opportunity,
even
after
rates
will
be
approved
for
five
years
in
during
those
five
years.
C
York
Laura
good
evening,
mayor
and
members
of
the
City
Council.
Well
as
we
look
to
readjust
our
rate
for
the
next
five
years,
it's
an
opportunity
to
see
not
only
you
know,
obviously,
what's
driving
the
needed
rate
increases,
which
is
the
investment
in
our
capital
infrastructure,
but
to
take
an
opportunity
to
look
to
make
sure
that
the
way
the
rates
are
structured
and
allocated
among
different
customer
types
and
different
customer
classes
are
the
most
fair
and
equitable.
That
is
appropriate.
C
So
we
took
this
opportunity
to
review
this
with
the
the
subcommittee
as
well
as
with
our
our
the
folks
at
Bartle
Wells,
who
have
helping
us
with
crafting
the
rate.
Modifications
who
are
here
tonight
and
I
know:
I'm
Alex,
handlers
and
cat
saying
from
bar
wheels
are
here.
I'm
sure
will
help
answer
questions
later
on.
C
But
so
we
have
a
couple
of
recommendations
to
justice
structure,
for
both
the
water
system
and
for
the
sources
from
rates,
and
so
the
first
one
for
water
is
aligning
the
fixed
charges
with
meter
capacity
and
spread
that
alignment
out
over
five
years.
Essentially,
each
water
bill
consists
of
a
a
charge
based
on
your
meter
size
and
a
charge
based
on
how
much
water
you
use.
Currently
the
monthly
charges
are
our
do
not
reflect
exactly
the
meter
flow
capacity.
C
For
example,
a
two-inch
meter
has
about
five
times
the
capacity
of
a
three-quarter-inch
meter,
but
the
monthly
fixed
charge
is
only
three
and
a
half
times
greater,
so
the
first
recommendation
is
to
over
the
period
of
five
years
to
readjust
the
fixed
charges
so
that
the
large
meter
customer
is
paying
their
proportional
share
of
the
fixed
charge.
So
that's
the
that's
the
first
recommendation.
C
The
second
one
is
regarding
that
variable
piece.
So
right
now
we
have
a
two-tier
system
where,
if
you
use
between
zero
and
18
units
of
water,
a
unit
of
water
is
748
gallons,
just
the
trade
lingo.
There
are
four
units
of
water
right
now.
Eighty-Four
percent
of
the
folks
fall
into
the
first
tier,
and
so
only
fifteen
percent
fall
into
the
second
tier.
So
the
idea
is
to
to
have
folks
conserve
some
water.
C
However,
right
now,
since
we
have
eighty-five
percent
in
the
first
year,
we
have
a
little
bit
of
room
to
make
those
tears
a
little
more
appropriate
for
the
actual
youth.
So
if
we
switch
to
a
three-tier
system,
we
would
go
from
zero
to
ten
ten
to
twenty
and
twenty
and
above
for
your
tea
arrays,
and
so
they
have
a
minor
impact
on
some
customers.
Some
customers
will
see
a
benefit
because
they
could
stay
in
Tier
one,
but
the
whole
time
and
see
a
little
bit
lower.
C
Some
of
the
higher
and
folks
would
impact
them
a
little
bit
more,
but
in
the
higher
end,
folks
are
a
little
smaller
percentage
of
our
total
cost
class.
Now
we
have
a
couple
of
recommendations
for
waste
waste
water
and
is
really
aligning
the
rates
to
reflect
how
difficult
it
is
to
clean
the
waste
stream
from
those
clients.
So
we
did
is
we
want
to
verify
the
waste
water
pollutants,
strength
for
each
customer
class
and
make
sure
that
the
rate
for
that
customer
class
is
is
similar
to
what
it
costs
to
actually
treat
the
wastewater.
C
So
when
we
were
looking
through
our
rates,
we
found
some
opportunities
to
make.
Some
minor
adjustments
doesn't
have
a
significant
rate
impact,
but
it
does
impact
a
few
customers
and
we'll
show
that
on
a
couple
slides,
the
last
one
is
very
similar
to
what
we
have
in
sewer.
Excuse
me
what
we
have
in
water,
where
we
have
a
combination
of
your
abilities
of
fixed
and
variable
charge.
C
However,
in
wastewater,
every
meter,
regardless
of
the
size,
is
charged
the
same,
fixed
cost
at
eighteen
dollars
and
thirty-five
cents
does
it
matter
for
your
single-family
home
with
a
three-quarter-inch
meter
or
if
your
larger
apartment
building
with
a
four-inch
meter
sort
of
pay
the
same
fixed
cost.
So
the
idea
is
to
make
that
more
equitable
across
the
customer
classes
again
by
spreading
that
out
over
a
five-year
period,
with
a
fixed
charge.
Capped
for
a
four-inch
water
meters
who
are
larger
and
the
analogy
to
use
sort
of
is,
is
you
can
think
about
it?
C
C
If
you
would
just
do
the
rate
increase
only
as
opposed
to
doing
the
rate
increase,
plus
some
of
the
structural
changes
that
we
had
just
recommended
so
doing
the
structural
changes,
it's
just
a
little
bit
of
an
increase
for
water.
Now
much
for
sewer.
If
you
are
actually
a
low
water
user,
you
would
actually
benefit
a
little
bit
more
acid,
actually
decrease,
and
then
here
are
the
slides
for
the
rates
for
it
all
five
years
of
the
proposed
rate
rate
period.
C
What
the
bimonthly
water
bill
is
what
the
increase
is
from
the
pre
with
from
the
previous
year
and
then
the
same
for
sewer
and
again
these
are
our
five
monthly
bills,
not
monthly
bills.
So
these
are
the
bills
that
your
typical
sembrano
homeowner
would
see
if
they
use
18
units
of
water
and
their
winter
average
water
use
was
12,
12,
eets,
water.
D
C
The
final
recommendation
to
consider
that,
but
really
isn't
a
part
of
this
action,
but
something
that
will
probably
look
at
as
a
later
date
is
to
collect
the
waste
water
charges
on
the
property
tax
roll.
This
would
assure
a
hundred
percent
collection
of
the
total
billed,
regardless
of
the
delinquencies.
It's
a
pretty
common
practice
among
a
lot
of
different
Peninsula
agencies
that
had
the
the
difference,
though,
is
the
change
in
payment
responsibility
shifts
from
the
tenants,
whoever
lives
the
property
to
the
property
owners
and
so
to
allow
that
transition
enough
time.
B
In
summary,
a
recommendation
is
to
issued
the
notice
for
five
year
annual
rate
increase
with
nine
point
and
eight
percent
for
water
10.3
present
for
wastewater
modifying
the
water
rate
structure,
to
align
fixed
charge
with
meter
size
and
to
add
the
third
tier
for
single
single-family
customers
to
modify
the
wastewater.
A
structure
to
align,
fix
the
charge
with
water
meter
size
also
and
to
align
waste
water
waste
water
pollutants,
ranked
for
each
customer
class
with
treatment
costs.
B
Next
step
what
you
can
expect
to
issue
the
proposition
218
not
noticing
the
meaning
will
include
also
for
the
property
owner,
not
notification
for
the
garbage
rates
on
may
eight
will
be
the
first
public
hearing
for
great
adjustment
and
on
May.
Tony
second,
will
be
the
second
reading
of
the
ordinance
with
the
intent
to
have
the
new
rate
adjusted
rate
in
place
by
July.
First,
you
mean
time
during
this
time,
depending
on
your
need
and
desire.
B
D
The
chair,
I,
don't
expect
I,
don't
expect
it.
Immediate
answer
is
because
I'm
just
going
to
come
from
left
field
on
this
one
I
look
at
your
policy
goals
and
objectives
and
part
of
the
beginning
of
your
presentation
and
believe
me:
I,
don't
need
any
explanation
on
what's
needed
in
this
city
and
you
know
hundred
years
of
deteriorating
infrastructure
and
things
and
trying
to
catch
up
over
many
years
and
what
we've
done
just
in
the
last
15
years
to
to
help
improve
our
system.
D
But
when
you
say
aim
for
a
steady,
gradual
annual
rate
increase
to
the
extent
possible
to
help
minimize
the
annual
impact
on
customers
and
you
look
at
your
plan
for
10
years
after
its
a
hundred
percent
over
a
hundred
percent
increase,
I
mean
four
years
from
now
we're
going
to
be
paying
water,
for
you
know,
bimonthly
175
dollars
now
I
may
be.
Okay,
for
that
and
I
know,
there's
going
to
be
complaints
from
some
residents
so
I.
D
D
Comfortable
for
an
average
resident
because
to
go,
you
know
each
year
when
that
increase
is
ten
percent,
more
I
mean
that's
a
noticeable
increase,
and
especially
when
it's
compounded
with
water,
it's
compounded
with
wastewater
and
then
garbage
and
then
cable
and
then
every
other
utility.
It's
I
mean
we're
going
to
hear
it
and
I
mean
16
years
ago.
We
SAT
here
and
we
we
understood
and
we
spiked
the
rates,
but
this
is
almost
like
a
spike
every
year.
So
I
want
to
just
get
an
idea
of
what
staff
consultants
subcommittee.
D
A
A
Have
something
on
top
of
that
I
believe
is
mentioned
is
very
beginning
that
this
was
a
long-term
projection
and
that
we
have
the
opportunity
to
scale
it
back
or
increase
it
as
necessary
over
the
years.
Will
we
be
getting
with
this
continuous
updates
esta?
This
is
where
you
are
where
you
should
be,
and
how
does
that
fit
because
I
see
Kim's
point
if
this
is
a
stamp
in
July?
A
E
E
The
process
of
setting
rates
is
a
primarily
a
function
of
evaluating
at
the
minimal,
effective
level,
the
revenue
requirement
for
operating,
maintaining,
rehabilitating
and
otherwise
sustaining
the
integrity
and
the
reliability
of
the
utility
system.
So
it
is
funked,
it
is
an
activity
that
is
fundamentally
driven
by
a
revenue
requirement.
Now
that
said,
it
is
always
our
objective
to
minimize
consistent
with
the
City
Council's,
clear
guidance
and
policy
direction
that
we
do
everything
that
is
possible
to
understand
and
to
minimize
the
impact
on
individual
ratepayers.
E
This
is
and
I,
don't
think,
there's
any
two
ways
about
it.
This
is
a
significant
increase
on
both
the
water
and
the
wastewater
costs
for
virtually
all
customers
and
their
while
there
is
some
opportunity
to
contain
or
control
costs
that
an
individual
household,
for
example,
might
experience
by
implementing
water
conservation
techniques.
I
think
it
is
fair
to
say
that
the
rate
increase
is
probably
still
for
most
of
the
households
in
our
community,
so
I
think
it
was.
It
is
perhaps
a
bit
miss
stated
to
suggest
that
the.
E
What
was
intended
here
is
simply
adherence
to
the
council's
guidance
that
what
you
wanted
was
revenue
rate
payers
to
be
able
to
anticipate
what
the
expected
annual
rate
increase
would
be
by
providing
a
level
annual
rate
increase.
There's
again,
I,
don't
think
any
argument.
You
can
reasonably
be
made
that
this
doesn't
represent
a
potential
significant
impact
to
some
of
our
repaying
households.
E
D
E
Order
to
sustain
operations
at
the
current
levels
and
to
provide
the
necessary
improvements
to
assure
long-term
reliability
of
the
system
and
a
continuing
ability
to
serve
our
customers.
The
answer
is
yes.
That
said,
you
have
the
ability,
as
their
indicated
in
any
year,
to
decrease
expenditures,
defer
capital
projects,
reduce
operations
and
they're
below
and
thereby
decrease
the
revenue
requirement.
E
D
I'm
going
to
be
facetious
and
say
I'm
sustaining
the
counsels
argument
from
three
years
ago,
because
I
remember
now
it's
all
coming
back
to
me
that
we
did
discuss
the
same
points,
because
we
were
somewhat
alerted
to
how
how
how
high
some
of
these
rates
were
going
to
be
increased
and
so
I
believe
we
did
reduce
the
rate
that
was
recommended.
I
think.
D
D
B
D
Yeah
this
is
I
mean
you
know
with
you
know,
with
with
the
garbage
coming
up
and
with
you
know
these
with
these
rates-
and
this
is
that's
the
sign
of
the
times
it's
just
it's
the
time
of
the
year
that
this
happens,
and
you
know
we
have
to
go
out
there
and
and
sell
it
and
hopefully
encourage
our.
You
know
our
customers,
our
residents,
that
you
know
we
are
doing
the
right
thing.
Whatever
we
do.
Thank
you.
F
You
more
of
a
comment
and
and
I'd
like
to
thank
staff
and
the
consultants
they
answered,
all
our
questions
they
went.
We
had
one
meeting
and
Councilman
Salazar
and
I
had
many
questions
and
we
wanted
in
immediate
information,
and
they
came
back
to
us
very
quickly
with
a
rate
adjustments
that
we
had
asked
about
and
some
backup
information.
So
I
really
appreciate
what
you
all
did.
That's
the
texas
in
me.
The
other
piece
I
want
to
emphasize
with
this
is
nobody
likes
to
pay
increased
rates.
F
F
I
was
sharing
some
pictures
that
my
father
had
taken
in
1967,
where
the
there
was
raw
sewage
on
the
streets
and
people
walked
in
it
or
drove
the
cars
in
it
and
to
get
into
the
house,
and
I'm
sure
it
was
not
a
pleasant
or
healthy
experience,
and
so
from
that
point
not
all
that
long
ago
to
now
we
have
improved
the
system
and
we
still
have
a
lot
of
improvement
to
do
and
that's
what
the
money
goes
to.
It
goes
to
those
kinds
of
things.
F
So,
while
we
don't
want
to
increase
rates,
we
have
to
the
other
piece.
I
want
to
remind
people.
We
do
still
have
and
correct
me
if
I'm
wrong
is
the
twenty
five
percent
discount
for
low-income
families
that
does
not
come
from
ratepayers.
You
we're
not
robbing
Peter
to
pay
Paul
type
of
thing.
It
comes
from
over
charges,
I
mean
I'm.
Sorry,
nice
teacher,
just
penalty
charges,
that's
what
it
was
so
it
it
doesn't
change
your
everyone
else's
rate.
A
G
A
G
One
thing
that
it
confused
me
but
I
think
I've
got
it
now
is
that
the
slide
was
saying
over
the
next
ten
years,
but
rate
increases
that
were
referencing
and
resolution
is
over
the
next
five
years,
just
so
that
they're,
just
because
the
Empress
version
and
I'm
I'm,
probably
below
average
in
most
people's
mind
but
I,
would
have
said
well
wait
a
minute.
It's
five,
it
says
10,
you.
B
Are
absolutely
correct?
What
I
am
I
was
referring
to
end?
The
slide
was
referring
to
that
all
of
the
project.
Financial
projection
was
done
for
10
years.
That's
was
for
ten
years
three
years
ago
now
that
was
the
financial
projection
for
the
next
tenure
beginning
this
year,
but
the
recommendation
is
only
just
for
fine
here
to
set
the
rates
for
the
next
five
years
evening.
G
Then,
when
the
slide,
it
stated
that
this
is
for
operation
and
maintenance
costs.
So
to
me
that
indicates
not
only
the
vehicles,
staffing
and
other
things
that
comes
along
labor
parts,
etc
to
operate.
The
systems
with
that
means
staffing
staffing
could
mean
additional
headcount
to
the
department
which,
two
weeks
ago,
eluded
additional
staffing
that
I'd
like
to
better
understand.
G
B
G
You
so
I'm
looking
to
the
need
for
a
third
factor
which
now
we
have
a
potential
need
for
a
more
staff
which
is
not
quantified
yet
but
I,
guess
that
would
be
for
budget.
But
these
percentages
and
numbers
derive
the
percentage.
The
rate
increase
of
what
is
perceived
is
needed
in
order
to
operate
the
department
that
will
come
to
us
in
the
budget
cycle
and
then
at
that
time
we're
going
to
be
presented
with
additional
machines
and
operations
and
staffing.
B
In
this
tenure,
financial
projection
is
not
included.
Anything
which
was
not
discussed,
presented
and
approved
by
you
previously.
This
ten-year
projection
does
not
include.
Additional
staff
includes
all
of
the
requirement
what
was
presented
to
you
to
meet
the
CD
and
CDO
requirements.
How
I
indicate
that
set
by
those
agreements
also
includes
a
certain
escalation,
how
your
projections
are
projecting
any
financial
long-term
costs,
but
does
not
include
any
additional
staffing
or
any
additional.
G
So
did
I
miss
two
weeks
ago
that
it
was
not
stupid.
Ition
correct
me
if
I'm
wrong,
please
is
that
I
saw
another
factor
and
you're
saying
that
was
already
prior
approved
three
years
ago
or
whatever
the
prior
talks
and
the
term
was
used.
Staffing
staffing
was
additional
and
you're
telling
me
that
that's
not
the
case
so
that
had
the
budget
cycle,
we're
not
going
to
have
anything
come
forward
for
additional
staffing
or
headcount
to
the
department.
It.
G
B
Third
vector
is
included
in
our
existing
improvement
program,
which
was
revealed
by
the
council
previously,
and
this
tenure
financial
projection
does
not
include
other
than
inflation,
and
all
of
all
of
the
required
adjustment
through
those
years
does
not
include
additional
staffing
need
other
than
already
presented
to
you
in
odis.
In
our
prior
discussion
for
wastewater
four.
E
E
E
Make
sure
that
what
I'm
telling
you
is
accurate?
Suffice
it
to
say
that
any
expenditures
are
approved
each
year
in
the
budget
process.
They
are
estimated
and
anticipated
for
planning
purposes
in
a
multi-year
rate
setting
process,
but
they
are
not
authorized
and
they
are
not
expended
until
the
City
Council
acts
on
the
specifically
on
the
budget.
So
the
director
has
told
you
that
this
planning
horizon
does
not
include
any
additional
staff
and
we
will
reave
arif
I.
What
I'm
telling
you
about
the
vactor
truck
I
am.
B
E
G
Thank
you
and
I
know.
A
lot
happens
in
three
years.
I
think
all
of
us
here
in
this
community
realize
three
years
ago
to
today
a
lot
duck
can't
happen,
and
it
is
hard
to
explain
to
the
average
person
like
myself
to
say
library
system
is
different,
because
in
most
you
go
on
in
the
house.
You
turn
on
the
faucet.
The
water
runs,
you
flush,
the
toilet.
You
know
you're
all
hoping
it
goes
where
it's
supposed
to
and
then
to
say,
but
everything's
different.
Well,
it
is
it's
different
on
the
age.
G
It's
different
on
this
I
sometimes
look
to
sell
City
and
look
at
those
rates
and
I'm
towable,
there's
a
lot
of
commercial
engine,
and
so
that
can
help
balance
out
the
rates
to
where
the
homeowner
may
not
be
paying
as
much
so
then
I
look
to
San
Carlos,
which
obviously
doesn't
have
the
type
of
commercial
infrastructure
and
they're
low
as
well
so
and
I
know.
San
Carlos
is
not
a
shall
we
say
a
foster
city
that
has
a
newer
infrastructure,
so
it
would
help
me
to
have
some
something
quantified
to
tell
folks
well
everything's
different.
G
B
Would
have
one
comment
on
that
that,
depending
if
you
are
making
those
investment
in
your
system
in
the
right
time,
if
you
are
deferring
those,
then
the
cost
will
go
up,
you
would
need
to
assess
their
system
when
they've
made
investment
on
their
system,
how
much
they
already
replaced
an
ongoing
basis
and
minimizing
costs
replacing
in
time
or
if
they
had
a
high
deferred
replacement
and
maintenance
costs.
That's
why
you
really
need
to
understand
the
whole
system
and
the
history
of
investment
in
their
system
to
have
a
holistic
picture.
Does.
G
B
I
am
not
specifically
commenting
on
that
serie,
not
knowing
enough
about
their
system,
but
I
would
say
also
that
size
count
or
the
makes
a
difference.
It
makes
a
difference.
Also,
if
you
have
a
bigger
system
than
is
possible
depending
on
your
system,
maybe
the
rate
can
be
lowered
or
so,
but
the
main
thing
is
how
how
you
are
investing
on
ongoing
basis
and
how
you
are
maintaining
your
system
exactly
no
different
than
any
house
or
anything
else.
B
If
you
are
investing
the
right
time
in
your
home
before
the
roof
will
be
destroyed,
you
are
reinvesting
in
the
maintenance
and
ongoing
replacement.
That's
how
you
are
minimizing
the
cost.
If
you
are
deferring
some
of
those
major
replacement
and
repeal,
then
your
and
costs
will
be
higher,
that
you
will
need
to
replace,
instead
of
just
repeating
certain
portion
of
that
home
or
system
any
system.
E
So
there
are
never
factors
that
go
into
an
analysis
that
would
more
specifically
answer
that
question.
It
is
actually
a
fairly
complex
and
detailed
analysis
that
would
need
to
occur
if
the
council
would
like.
We
can
certainly
attempt
to
get
the
information
from
either
or
both
of
those
jurisdictions
in
to
try
and
put
together
an
analysis
that
may
help
you
or
help
us
all
understand
that
question
a
little
bit
better
we'd
be
happy
to
return
with
that
information.
That's
councils
pleasure,
so.
H
Your
honorable
me
or
members
of
City
Council
city
of
San
criminals
staff.
Ladies
and
gentlemen,
my
name
is
Allen,
lucky
I
reside
on
fleetwood,
dr.
I
have
three
and
a
half
questions
at
first
is
the
one
and
a
half
question
is
what
portion
of
the
fee
or
assessment
is
it
proposed
that
be
placed
on
the
assessment
tax
roll
and
then
how?
How
would
that?
H
A
E
H
The
previous
year,
so,
okay,
so,
and
do
you
have
any
you
have
one
that,
with
the
percentages
there
that
shows
percentages
I,
think
that's,
perhaps
what
vice
mayor
of
era
was
getting
at
where
he
got
those
brave
accumulated
those
percentages.
So
it's
from
the
previous
year
so
year
one
we
go
a
percent
and
Italy.
Then
we
had
a
new
level
and
then
the
next
we
go
to
another
and
that's
from
the
base
level.
Okay,
what
would
be
then?
H
My
final
question
is:
what
would
be
the
total
cost
for
for
for
the
city
for,
but
for
picking
up
the
tab
for
the
public?
If
we
decided
to
do
if
the
city
decided
to
do
that
based
on
the
windfall
of
70
million
dollars,
what
would
be
the
cost
of
the
city
for
let's
just
say
for
the
first
increase
for
the
first
first
year,
will
be
the
total
cost.
H
I
understand
that
all
I'm
asking
is
I'm
we're
asking
a
what?
If
question
I
would
think
that
you
you're
basing
Union
even
certain
amount
of
fees
that
you're
gonna
charges
that
you
can
increase
your
going
to
get
a
certain
dollar
amount
from
the
you
know.
What's
that
total
of
dollar
amount
for
the
first
year?
That's
all
I'm
asking.
C
H
A
A
H
Ladies
and
gentlemen,
name
is
Paul:
Paul
Anka
delivered
323
Cypress
Avenue
last
time,
I
was
here,
I
talked
about
the
same
thing.
It's
ironic,
I
just
came
just
to
listen
on
the
water
bill.
We
have
two
things:
service
charge
for
water
and
service
charge
per
sewer,
water
service
charge,
25
in
change
and
suz,
eighteen
dollars
and
change.
At
the
same
question
when
I
came
up
the
first
time,
maybe
three
or
four
years
ago
and
I
was
told
it's
a
study.
Well,
it
is
to
the
bill
and
it
wasn't
interest
at
all
tonight.
H
C
So
if
I
understand
the
question
appropriately
closer
Jim,
if
I
understand
that
question
appropriately,
it
was
the
discussion
of
how
is
the
is
the
fixed
charge
treated
with
respect
to
the
variable
charge.
So
in
the
in
the
proposed
rate,
suppose
five-year
rates
there
are
our
proportional
increases
both
to
the
monthly
the
monthly
fee.
The
force
of
the
eighteen
dollars
per
month
for
a
residential
sewer
would,
but
it
would
go
up
accordingly,
as
well
as
the
variable
rate
increased
charge.
C
D
C
D
service
charge
is,
is
the
proportion
of
charge
sort
of
allocated
to
the
fixed
cost?
There
are
a
variety
of
ways
to
to
assign
rates
and
design
apportion
charges
in
for
San
Bruno.
We
have
about
twenty.
Two
percent
of
the
costs
are
deemed
as
fixed
costs,
and
then
the
remaining
would
be
a
variable
cost.
So
that
is
how
the
rate
is
proportionate.
Wean
the
variable
charge
on
your
bill
and
the
the
fixed
monthly
cost
on
your
on
your
bill
doesn't
doesn't
doesn't
get
out
of
it.
Try.
D
D
C
E
D
Actually
enrich
initially,
which
I
thought
the
resident
was
gonna
was
asking,
was
what
does
that
charge?
Go
towards
and
I
don't
care
how
it's
broken
up,
whether
it's
fixed
or
its
variable
whatever?
What
is
that
eighteen
dollars
for
sewer
and
20
something
dollars
for
water?
What
does
that
go
to
pay
for
pays.
E
D
A
We
have
a
gallon
of
water
in
a
bucket
and
they
were
paying
for
the
water,
but
we
also
have
to
pay
for
somebody
to
take
the
water
and
and
let
you
use
it
and
if
you
have
a
gallon
of
waste,
we
pay,
for
you
know
the
waste
if
you
will,
but
you
also
have
to
take.
You
have
to
pay
somebody
to
throw
it
away
and
and
dispose
of
it
properly.
So
that's
the
difference
between
the
fixed
costs
and
the
and
the
the
other
I
think.
E
E
That
is
a
it's
a
it's
a
feature
of
what
is
necessary
in
order
to
operate
the
system.
Then
there
is
the
cost
that
is
associated
with
the
and
the
revenue
requirement
that
is
associated
with
treating
a
little
bit
or
a
lot
or
delivering
a
little
bit
or
a
lot
now
it.
So
it
is
a.
It
is
a
means
of
capturing
in
the
rate
structure,
a
the
best
possible
means
of
accounting
for
the
customers,
demand
and
utilization
of
the
system,
and
that's
it's
philosophically
how
rates
are
set?
E
The
revenue
all
comes
out
and
goes
into
into
one
pot,
and
then
it
is
used
to
provide
for
all
of
the
operating
requirements
of
the
system.
So
it's
it's.
It's
not
a
one-to-one
relationship,
but
it
is
in
terms
of
the
way
rates
are
typically
set
as
a
means
of
providing
fairness
or
equity
across
customers.
D
Thank
you
that
was
clear
and
I
would
apologize
to
Jimmy
staff
this.
This
isn't
I,
don't
want
to
be
argumentative
or
anything
but
I'm
just
trying
to
understand
it,
because
I
know
that
there
were
going
to
be
residents
that
are
going
to
be
asking-
and
you
know
every
single
utility
we're
going
to
have
to
be
able
to
be
able
to
explain
all
every
single
cent
that
we're
going
that's
going
into
it.
I
Michael
through
the
chair,
I
just
wanted
to
add
my
own
perception
of
the
whole
process,
and
you
know
the
the
questions
are
definitely
valid
and
something
that
councilmember
O'connell
night
found
out
pretty
quickly.
Is
that
it's
not
a
simple
process,
and
there
are
probably
a
million
ways
that
you
can
do
this,
and
at
least
on
the
sewer
side.
We
we
ask
the
question
what
if
we
went
to
just
a
flat
rate
and
it's
something
that's
available
to
us-
we
can
take
away
the
variable
part
from
that.
I
It
would
be
a
lot
simpler,
but
the
answer
came
back
that
that
would
make
it
dramatically
more
expensive
for
our
biggest
usage
base,
and
so
we
decided
not
to
go
that
route
and
keep
that
a
fixed
versus
fixed
plus
variable
system
that
we
have
currently.
And
so
it's
really
once
we
identified
the
target
and
we
knew
how
much
money
we
needed
to
get
in
order
to
maintain
the
system
from
there.
I
It
was
just
a
matter
of
slicing
it
up
different
ways
and
it's
just
an
exercise
in
cost
accounting,
where
you
figure
out
what
is
read
something
reasonable,
but,
like
the
city
manager
said
it's
it's
everything
and
and
part
of
it.
We
kept
this
base
that
keeps
a
little
bit
of
stability
in
the
rate,
so
that
we
know
that
we
have
the
cash
flow
that
we
need
to
operate
the
plant
on
a
monthly
basis
and
then
the
rest
of
it.
I
G
But
what's
what's
what's
the
necessity
or
the
intent
in
order
to
allude
to
this
is
what's
needed
for
ten
years,
because
to
me,
if
we
get
to
the
fifth
year
to
predict
ten
years,
I
mean
the
six
seven,
eight,
nine
and
ten
year
that
this
is
already
what
we
I.
Don't
know
how
you
again
I'm,
not
an
expert
here,
there's
a
lot
of
to
smarter
people
in
this
room,
but
I,
don't
know
how
I
can
sit
here
and
say:
yeah
you're,
right,
the
ninth
and
tenth
year.
This
is
what
it
should
be.
E
That
is,
the
action
embodied
in
the
resolution
and
that
information
is
a
couple
of
clauses
were
inserted
in
order
for
full
explanation
and
clarity
about
how
their
rates
were
analyzed
and
the
information
that
was
utilized
in
order
to
get
to
the
rate
program
and
again
to
articulate,
as
we
discussed
earlier,
the
ongoing
policy
of
this
city
to
look
on
a
multi-year
in
advance
planning
horizon
in
order
to
maintain,
as
close
as
possible
a
level
annual
rate
increase
profile.
So
that's
the
only
purpose
for
that
information
being
inserted
into
the
resolution.
E
G
How
is
just
trying
to
better
understand
but
I,
don't
maybe
to
the
subcommittee
I'm
trying
I'm
yeah
I
know
we
were
looking
for
five
years,
but
now
we're
actually
projecting
six
to
ten
years
is
have
to
give
people
a
heads
up
to
say
well,
this
is
what
we
think
might
be
happening.
Six
through
ten
cube,
potentially
well.
F
Part
of
it
is
the
study,
looked
at
the
types
of
things
that
needed
to
be
done
within
the
10-year
frame
time
frame
and
the
kind
of
predicted
cost
of
those
things
so
and
I
believe,
is
84
million
dollars,
and
if
we
have
to
divide
those
things
up
in
10
years,
how
much
do
we
need
per
year
to
do
that
and
that's
what
it
came
out
to
so
the
five
year
is
to
give
us.
Well,
I
believe,
that's
the
outer
limit
of
the
218
notice.
F
Is
it
not
so
that
that's
where
the
five
we
we
were
given
the
choice
of
the
three
year,
the
five
year
Michael
and
I
and
staff
were
recommending
to
you.
We
do
the
five-year
notification,
but
the
figures
came
from
a
10-year
horizon
at
the
end
of
any
given
year.
We
might
have
might
find
that
we
have
made
so
many
capital
improvements
that
we
don't
need
to
do
as
much
and
we
can
adjust
after
that.
F
But
but
if
we
say
it's
like
you,
look
at
your
house,
okay
in
10
years,
I
need
to
and
repress
the
rugs
we
place.
Linoleum
put
new
faucets
in
replace
the
roof
and
do
new
concrete
in
the
driveway.
That's
going
to
cost
me.
You
know
two
hundred
thousand
dollars
for
ten
years
I.
You
know
I
have
to
spend
twenty
thousand
dollars
to
get
those
things
done.
So
that's
kind
of
where
we
came
from
and.
F
G
G
F
I
F
I
Gonna
add
that
part
of
what
the
consultants
brought
to
the
table
was
the
fact
that
they
were
able
to
model
some
of
this
and
do
sensitivity,
studies
based
on.
But
if
certain
variables
were
to
change
and
given
that
we
look
at
a
lot
of
different
scenarios,
they
looked
at
probably
way
more
scenarios
anymore
presented
to
us.
I
But
what
would
what
we
ended
up
seeing
is
that
there
was
very
little
variability
in
the
proposed
great
based
on
any
number
of
factors,
and
the
biggest
driver
is
the
fact
that
we
need
so
many
capital
large
capital
projects
that
that
is
the
biggest
driver
and
I.
Think
staff
felt
that
we
had
a
pretty
good
handle
on
what
those,
even
over
a
10-year
horizon,
what
those
costs
would
be
for
it
for
those
projects.
I.
G
Appreciate
your
clarification,
too,
and
so
this
action
tonight
is
just
to
allow
prop
218
to
go
forward
and
put
out
the
draft
information
that
we
have
before
us
to
the
residence
for
their
45
days
of
protests
feedback
and
to
bring
it
back
to
Council
for
public
hearing
Greg
correct.
It's
not
the
actual
rate
increase
good.
Thank
you
through.
I
The
chair,
if
I,
could
ask
one
final
question
as
we're
going
through
this
is
this
period
the
45-day
period
I
was
wondering
if
we
could
look
a
little
closer
at
the
twenty
five
percent
discount
and
it
came
up
that
that
comes
from
penalties,
late
penalties,
but
I.
Remember
hearing
in
the
subcommittee
meeting
that
if
we
go
to
the
putting
the
sewer
tax
on
the
tax
rolls,
the
county
would
then
get
any
penalties.
Any
late
penalties
associated
with
that.
So
there's
a
potential
loss
in
that
income.
I
Pulse
I
want
to
know
what
that
impact
might
look
like
based
on
historical
late
fees
and
if
we
can
still
adequately
fund
that
twenty-five
percent
I
was
really
moved
by
what
the
council
member
or
vice
mayor,
I
Berra,
said
about
really
looking
at
the
real
impact
of
the
customers
and
I
know.
We
can
get
very
technical
in
these
things
and
that's
a
factor
that,
unfortunately,
we
didn't
really
look
at
that.