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TO: Andrew P. Powers, City Manager Public Works Department STAFF REPORT FROM: Jay T. Spurgin, Public Works Director DATE: January 24, 2017 2100 Thousand Oaks Boulevard - Thousand Oaks, CA 91362 Phone 805/449.2400 - Fax 805/449.2475 - www.toaks.org SUBJECT. California -American Water Company Proposed Rate Increase Update Report RECOMMENDATION: 1. Receive update report. 2. Ratify City Attorney's agreement with Downey Brand LLP in an amount not to exceed $100,000 for legal services pertaining to California American Water Rate Case A1607002. 3. Approve budget appropriation and expenditure in the amount of $100,000 from A/C# 001-0000-311-1000 (General Fund/Fund Balance) to A/C# 001-5010- 631-5199 (General Fund/Public Works Administration/Legal Services). FINANCIAL IMPACT: $100,000 Increase to the General Fund Operating Budget. Budget appropriation in the amount of $100,000 is requested from General Fund, Fund Balance. BACKGROUND: Thousand Oaks residents and businesses are provided potable drinking water primarily from three separate water purveyors: California -American Water Company (Cal -Am), the City of Thousand Oaks Water Division, and California Water Service Company (Cal Water) (Attachment #1 — Water Purveyor Service Areas). Generally, Cal -Am serves Newbury Park, City Water Division serves central Thousand Oaks, and Cal Water serves North Ranch/Westlake. All three purveyors receive treated imported water from the Calleguas Municipal Water District, and then distribute water to customers through similar systems of pipelines, pumps, and reservoirs. The approximate number of customers served by each is shown in Table 1.