City Council

3.\nAmended Five-Year Water Rate Schedule\nRecommendation:\nA. Find that the proposed action is categorically exempt from California Environmental Quality\nAct (CEQA) review, in accordance with CEQA Guidelines Section 15273(A)(4), which states\nthat CEQA does not apply to the establishment, modification, structuring, restructuring, or\napproval of rates, tolls, fares, and other charges by public agencies which the public agency\nfinds are for the purpose of meeting operating expenses, purchasing for leasing supplies,\nequipment, or materials, meeting financial reserve needs and requirements, and obtaining\nfunds for capital projects, necessary to maintain service within existing service areas.\nFurthermore, even if the proposed changes in water rates were subject to CEQA review, the\napproval requested is exempt in accordance with CEQA Guidelines Section 15061(B)(3), the\ngeneral rule that CEQA only applies to projects that may have a significant effect on the\nenvironment;\nB. Conduct a Public Hearing for the proposed five-year water rate adjustment and consider all\nprotests against the proposed water rate adjustments that have been submitted in accordance\nwith Proposition 218; and\nC. Adopt Resolution No. 2025-035 approving an amended five-year water rate schedule to go\ninto effect January 1, 2026.