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I RESOLUTION NO. 2005-01 2 A RESOLUTION OF THE BOARD OF PUBLIC UTILITIES OF THE CITY OF RIVERSIDE, CALIFORNIA, (1) ESTABLISHING 8% WA -3 WATER RATE 3 INCREASES EFFECTIVE JUNE 1, 2005, AND JUNE 1, 2006 FOR ALL WA -3 CUSTOMERS; (2) PLUS TRANSITIONING WA -3 WHOLESALE NURSERY 4 CUSTOMERS TO WA -6 THROUGH TWO ADDITIONAL SIX PERCENT (6%) ANNUAL RATE INCREASES EFFECTIVE JUNE 1, 2005 AND JUNE 1, 2006; (3) 5 PLUS TRANSITIONING WA -3 CUSTOMERS QUALIFYING FOR WA -9 OUTSIDE THE GREENBELT TO WA -9 THROUGH THREE ADDITIONAL SIX PERCENT (6%) 6 ANNUAL RATE INCREASES EFFECTIVE JUNE 1, 2005, JUNE 1, 2006 AND JUNE 1, 2007; (4) PLUS TRANSITIONING ALL OTHER WA -3 CUSTOMERS OUTSIDE THE 7 GREENBELT TO WA -1 THROUGH TWELVE ADDITIONAL SIX PERCENT (6%) ANNUAL RATE INCREASES EFFECTIVE JUNE 1, 2005 AND EACH JUNE 1 8 THEREAFTER THROUGH JUNE 1, 2016; (5) MAKING RELATED FINDINGS OF FACT; AND (6) RECOMMENDING CITY COUNCIL APPROVAL THEREOF. 9 10 WHEREAS, the City of Riverside ("City") by and through its Public Utilities Department 11 ("Department") is obligated to (1) serve its water customers safe, reliable and equitably priced 12 water, (2) operate its Water Utility in an efficient and economical manner, and (3) operate, 13 maintain and preserve its Water Utility in good repair and working order; and 14 WHEREAS, the Department is responsible for operating the Water Utility in such a 15 manner that revenues from the sale of water shall at least equal the costs of operation, including all 16 maintenance and operating, administrative and general, debt service, capital improvements, tax - 17 related payments and other costs incurred in complying with prudent utility business practices; and 18 WHEREAS, in 1976 the Board of Public Utilities ("Board") and City Council of the City 19 established and approved Water Schedule WA -3 --Irrigation Metered Service ("WA -3") to 20 encourage preservation of irrigated groves and commercial agriculture in Riverside; and 21 WHEREAS, under WA -3 customers use one meter and pay the same low water rate 22 without seasonal adjustments for potable water to their groves, pastures, residences and nominal 23 Iandscaping; and 24 WHEREAS, over time WA -3 has been applied to massive residences on large lots with 25 extensive landscaping --outside of the City's original intent to subsidize only groves and 26 agriculture; and 27 WHEREAS, on the average WA -3 customers use twice as much water per acre, and ten City Attorney's Wee 3900 Minn Street Riverside, CA 92522 (951)826-5567