TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Lou Vargas, Utilities Manager
Nicky Petroff, Senior Management Analyst
SUBJECT:Title
Conduct Public Hearing and Consideration of a Resolution Adopting New Wastewater Rates and Charges Effective November 1, 2023, Through November 1, 2027, and All Protests to the Proposed Wastewater Rates (Public Works Director Lee).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 23-0051
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
A. Conduct a public hearing to consider adopting new wastewater rates and charges ("rates"), commencing November 1, 2023;
B. Consider the Proposition 218 written protests submitted to the City Clerk (and not withdrawn) by the close of the public hearing to determine whether a majority protest exists; and
C. In the absence of a majority protest, consider adopting the attached Resolution No. 23-0051 adopting the annual proposed rate increases effective November 1, 2023, through November 1, 2027.
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FISCAL IMPLICATIONS:
Approval of this action sets new wastewater fees effective November 1, 2023. The revenues received are projected to match the revenue requirements through June 30, 2028, as set forth in the rate study.
The City has adopted Financial Policies that provide guidance on the setting of user fees for each enterprise fund at a rate that fully covers direct and indirect costs of providing the service, as well as planned capital improvements. As an enterprise fund, the City's Wastewater Fund should therefore operate as a self-sustaining fund and provide full cost recovery for the wastewater services provided to residential and commercial customers. Although the actual rates paid by ratepayers will vary based on the amount of wastewater produced, bi-monthly wastewater (sewer) bills for aver...
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