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1 RESOLUTION NO. 2001-1 <br />2 A RESOLUTION OF THE BOARD OF PUBLIC UTILITIES OF THE CITY OF <br />RIVERSIDE, CALIFORNIA, ESTABLISHING INCREASES IN THE WATER RATES <br />3 OF THE CITY'S WATER UTILITY, MAKING RELATED FINDINGS OF FACT, AND <br />RECOMMENDING CITY COUNCIL APPROVAL THEREOF. <br />4 <br />5 WHEREAS, the City of Riverside ("City") by and through its Public Utilities Department <br />6 ("Department") is obligated to (1) serve its water customers safe, reliable and equitably priced <br />7 water, (2) operate its Water Utility in an efficient and economical manner, and (3) operate, <br />8 maintain and preserve its Water Utility in good repair and working order; and <br />9 WHEREAS the Department is responsible for operating the Water Utility in such a manner <br />10 that revenues from the sale of water shall at least equal the costs of operation, including all <br />11 maintenance and operating, administrative and general, debt service, capital improvements, tax - <br />12 related payments and other costs incurred in complying with prudent utility business practices; and <br />13 WHEREAS an accelerated replacement of the water pipelines in the Water Utility's 800 <br />14 mile water distribution system is necessary to improve fire flows throughout the City; and <br />15 WHEREAS the rates charged for water services are required to be designed on a fully <br />16 allocated basis providing for full cost recovery on a fair and equitable basis for all rate classes; and <br />17 WHEREAS the City's Board of Public Utilities ("Board") is charged by Section 1202(e) of <br />18 the City Charter to establish the rates for the Water Utility, subject to the approval of the City <br />19 Council; and <br />20 WHEREAS the Department's staff and management have (1) performed an analysis of the <br />21 costs of providing water services which indicates that the revenue of the Water Utility should be <br />22 increased by $430,000 in 2001, $890,000 in 2002, and $932,000 in 2003, in order to equal the <br />23 costs of operation including the accelerated pipeline replacement program, (2) recommended an <br />24 overall increase of approximately 2.4% in the water rates to provide the additional revenue needed <br />25 for 2001, (3) recommended increases in the water rates on March 1, 2002 and March 1, 2003, <br />26 equal to the percentage increase in the Handy -Whitman index during the immediately preceding <br />27 year compared to the prior calendar year, to provide the additional revenue needed for 2002 and <br />City Attorney's Office <br />3900 Main 5trcd <br />Riverside, CA 92522 <br />(909) 826-5567 <br />