City Council

11. Authorization to Initiate Proposition 218 Process for Water and Sewer Rate Adjustments.\nAs a best practice, municipal water agencies should conduct rate studies to ensure rates are fair,\nsustainable, and reflective of the true cost of providing services. The City's existing water and sewer rates, last updated in 2018, are no longer sufficient to sustain operations and, based on a new rate study by a third-party consultant, developed in conjunction with the Water and Sewer Ad Hoc Committee, new rates are recommended. Staff is proposing to initiate the Proposition 218 notification and protest process, along with procedures for the public hearing and responding to objections under new state guidelines.\nRecommendation: That the City Council:\n1. Approve a Resolution initiating proceedings under Proposition 218 by setting a Public\nHearing date of November 3, 2025, for proposed adjustments to the City’s water and\nsewer rates;\n2. Authorize the City Clerk, or their designee, to provide notice of the public hearing in\naccordance with Proposition 218’s requirements; and,\n3. Approve a Resolution establishing revised procedures for the conduct of the public\nhearing and majority protest process, including adoption of an Exhaustion of\nAdministrative Remedies procedure (Assembly Bill 2257) in accordance with\nGovernment Code sections 53759.1 and 53759.2.