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I RESOLUTION NO. 2004-03 2 A RESOLUTION OF THE BOARD OF PUBLIC UTILITIES OF THE CITY OF RIVERSIDE, CALIFORNIA, (1) ESTABLISHING WA -3 WATER RATE INCREASES 3 EFFECTIVE JUNE 1, 2004,(2) TRANSITIONING WA -3 CUSTOMERS TO THEIR OTHERWISE APPLICABLE TARIFFS THROUGH TEN PERCENT ANNUAL 4 INCREASES EACH JUNE 1 THEREAFTER THROUGH JUNE 1, 2019,(3) SUBSIDIZING A PORTION OF THE WA -3 CUSTOMERS' COST OF A REQUIRED 5 SECOND METER EFFECTIVE JUNE 1, 2004; (4) MAKING RELATED FINDINGS OF FACT; AND (5) RECOMMENDING CITY COUNCIL APPROVAL THEREOF. 6 7 WHEREAS, the City of Riverside ("City") by and through its Public Utilities Department 8 ("Department") is obligated to (1) serve its water customers safe, reliable and equitably priced 9 water, (2) operate its Water Utility in an efficient and economical manner, and (3) operate, 10 maintain and preserve its Water Utility in good repair and working order; and 11 WHEREAS the Department is responsible for operating the Water Utility in such a manner 12 that revenues from the sale of water shall at least equal the costs of operation, including all 13 maintenance and operating, administrative and general, debt service, capital improvements, tax - 14 related payments and other costs incurred in complying with prudent utility business practices; and 15 WHEREAS the Board of Public Utilities (`Board") and City Council of the City 16 established and approved Water Schedule WA -3 --Irrigation Metered Service to encourage 17 preservation of irrigated groves and commercial agriculture in Riverside; and 18 WHEREAS WA -3 customers are allowed to use one meter and pay the same water rate for 19 groves, plus a residence and landscaping; and 20 WHEREAS Schedule WA -3 limits water use for residences and landscaping to "nominal" 21 use; and 22 WHEREAS since 1976 the applicability of WA -3 has been liberally interpreted and is now 23 utilized for large lot landscaping or plantings outside of the City's original intent; and 24 WHEREAS potable water, not non -potable water, is provided to WA -3 customers, who 25 pay low non -potable water rates with no seasonal rate adjustment; and 26 WHEREAS WA -3 customers use a significantly higher amount of water per acre than the 27 average residential customer; and City Attorney's Office 3900 Main street Riverside, CA 92522 (909)626-5567