2024/09/24 City Council Resolution 2024-088RESOLUTION NO. 2024-088
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROHNERT PARK ADOPTING SEWER SERVICE RATES (2024 — 2028)
WHEREAS, the City exercises its constitutional authority to establish, operate, and
regulate a sewer service system, to collect wastewater and transport it for treatment to the Santa
Rosa Subregional Water Reclamation System of Santa Rosa, pursuant to California Constitution,
Article XI, section 7, and as set forth in Rohnert Park Municipal Code Chapter 13.44; and
WHEREAS, Section 13.44.030 of the Rohnert Park Municipal Code provides that the
City Council shall, by resolution, establish rates for sewer service; and
WHEREAS, Resolution No. 2018-060, adopted by City Council on April 24, 2018,
established sewer service rates which were enacted for 2018 - 2024, with authorized annual
increases June of each year; however, while the City approved annual increases in 2019 and 2020,
the City has not approved any subsequent annual increases since June 2020; and
WHEREAS, the City hired Hildebrand Consulting ("Consultant") to review the City's
current sewer service rates to determine if they generate sufficient revenue over time to pay for the
City's ongoing costs to provide the sewer service, including costs for maintenance and replacement
projects, ongoing operations costs, and any planned major capital projects; and
WHEREAS, Consultant prepared the 2024 Sewer Rate Study Report dated July 17, 2024,
("Rate Study") that determined the total costs of providing the sewer service utility to City
customers and calculated the proposed sewer service rates to be charged to each customer class
based on their proportionate impact on the sewer service system (the Rate Study is incorporated
herein by reference); and
WHEREAS, at a public meeting of the City Council on July 23, 2024, City staff presented
the Rate Study which found: (a) current sewer service rates are insufficient to support the
increasing costs of operation, maintenance and replacement of the City's sewer system, (b)
additional revenue is needed to cover the total costs of City sewer service, and (c) an increase in
sewer service rates to be paid by City customers is correspondingly needed and recommended to
be implemented for the remainder of calendar year 2024 through calendar year 2028; and
WHEREAS, the Rate Study, along with supporting notices and documents, has been made
available to the public (online and in paper copy form at the City Clerk's office since August 8,
2024); and
WHEREAS, the Rate Study recommends the rate adjustments to achieve several
objectives, including:
• Adequate revenues to meet the utility's ongoing service and financial obligations that will
keep up with inflation;
• Adequate revenues to meet the debt coverage ratio requirement set forth in the Sewer
System Revenue Refunding Bonds, Series 2017;
• Adequate revenues to support the needs of the utility's capital program.
Resolution 2024-088
Page 1 of 4
WHEREAS, pursuant to California Constitution Article XIII D, Section 6 (a.k.a.,
Proposition 218), prior to extending, imposing or increasing sewer rates for a property -related
service, the City must provide property owners notice at least 45 days before a public hearing
regarding modifications to the sewer rates. The notice must contain an explanation of: (1) the
amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the
rate modifications, (4) the date, time and place of a public hearing to consider the rate
modifications, and (5) the rights of property owners to submit written protests to the proposed rate
modifications. The proposed rate modifications may not be imposed if, prior to the close of the
public hearing, written protests are submitted by property owners or tenants representing a
majority of the properties subject to the modified rates ("majority protest"); and
WHEREAS, at the July 23, 2024, City Council meeting, Council directed staff to publish
a notice of public hearing to be held on September 24, 2024, to consider adoption of the
recommended increased sewer service rates; and
WHEREAS, notice of the public hearing to consider proposed adjustments to the sewer
rates was mailed at least 45 days prior to the scheduled public hearing as required by state law
(California Constitution Article XIII D, Section 6); and
WHEREAS, on September 24, 2024, the City Council held a duly noticed public hearing
on the sewer service rates identified in this Resolution, and considered the Rate Study, the agenda
report and supporting documents presented by City Staff, any public comments received prior to
that hearing, and all information and public comments related to this matter as presented at the
hearing (specifically including any oral or written protests against the proposed sewer service
rates); and
WHEREAS, at the time of closing the public hearing for Council's consideration of this
Resolution on September 24, 2024, the City had not received written protests from a majority of
properties subject to the sewer service rates, and therefore, a majority protest to the proposed
increase in sewer rates described in this Resolution does not exist.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that beginning with sewer service bills rendered after October 1, 2024 the sewer service rates
set forth in Exhibit "A" are hereby approved.
A. City staff is directed to bill customers at the rates set forth in the rate schedule column
labeled "Oct 1, 2024" on Exhibit "A" for services rendered on and after October 1, 2024.
B. The Finance Director, or designee, is directed to provide notice not less than 30 days before
the effective date of each of the annual scheduled increases to sewer service rates set forth
on Exhibit "A" in each column respectively labeled: July 1, 2025, July 1, 2026, July 1,
2027, and July 1, 2028. The effective date of each annual increase shall be no earlier than
July 1 of the year identified on each respective column. The notice shall identify the
effective date of the annual increase and be provided in accordance with Government Code
Section 53756(d). Upon the effective date of each annual adjustment, City staff is directed
to bill customers at the sewer service rates set forth in the corresponding rate schedule
column.
BE IT FURTHER RESOLVED that the City Council hereby finds that the above recitals
are true and correct, and, accordingly, are incorporated as a material part of this Resolution.
Resolution 2024-088
Page 2 of 4
BE IT FURTHER RESOLVED that the City Council hereby accepts and approves the
Rate Study setting forth the bases for the sewer service charges.
BE IT FURTHER RESOLVED that, after due consideration of the entire record
identified in this Resolution, the City Council hereby finds that the sewer service rates approved
by this Resolution are excluded from the definition of a "tax," and the sewer service rates are
therefore not subject to voter approval, in accordance with California Constitution, Article XIII C,
Section 1(e)(7) [for the first finding, below], California Constitution, Article XIII D, Section 6(c)
[for the second finding, below], and California Constitution, Article XIII D, Section 6(b) [for the
third through seventh findings, below]: The City Council hereby finds that the sewer service rates
approved by this Resolution:
1. are "property -related fees";
2. are fees or charges for "sewer services";
3. will generate revenue in an amount that is no more than necessary to cover the
reasonable cost of providing the sewer service described in the Rate Study. The sewer
service described in the Rate Study includes the City's costs of operation,
maintenance, repair, and replacement of the sewer system;
4. will generate revenue that will not be used for any purpose other than that for which
the charge is imposed, to support the City's costs of providing the sewer service.
Revenue from the sewer service rates will be kept in a separate fund used only for
costs related to the provision of sewer service;
5. are allocated and imposed on ratepayers in a manner that is based on the ratepayer's
burdens on, and benefits received from, the sewer services described in the Rate Study,
so that the sewer service rates do not exceed the proportional cost of the service
attributable to the ratepayer's property based upon pipe size connected to and water
consumption for each;
6. will not be imposed upon any parcel for which sewer service is not immediately
available.
7. are charges imposed for providing sewer service which is a specific governmental
service provided directly to the ratepayer that is not provided to those not charged.
The sewer service rates will not be used for general governmental services that are
available to members of the public who are not required to pay for those services.
AND BE IT FURTHER RESOLVED that the City Council hereby finds that this
resolution is not a project within the meaning of Section 15378 of the CEQA (California
Environmental Quality Act) Guidelines because it has no potential for resulting in physical change
in the environment directly or ultimately. In the event that this resolution is found to be a project
under CEQA, it is subject to the CEQA exemptions contained in CEQA Guidelines section
15273(a) because it constitutes the establishment of charges for the purpose of obtaining funds to
meet the sewer utility's financial and service obligations for ongoing operation and maintenance,
debt service, and capital improvements within existing service areas, and CEQA Guidelines
section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant
effect on the environment.
Resolution 2024-088
Page 3 of 4
DULY AND REGULARLY ADOPTED this 24 h day of September, 2024.
ATTEST:
CITY OF ROHNERT PARK
9�e��
Susan H. Adams, Mayor
Elizabeth Machado, Assistant City Clerk
APPROV AS TO F RM: -
Mi#hdle M. Ken}loh, City Attorney
Attachments: Exhibit A
ELWARD: 5LM� RODRIGUEZ: JALO. SANBORN: � GIUDICE: � ADAMS: �'�
AYES: (C ) NOES: ( 0) ABSENT: ( 9V ) ABSTAIN: (fij!r )
Resolution :024-088
Page 4 of 4
Exhibit A to Resolution 2024-088
City of Rohnert Park EXHIBIT A
2024 Sewer Rate Study
3.4.4 RATES
Table 9 summarizes the wastewater rate schedule for the next five years starting
on October 1, 2024. The wastewater rates will increase annually in accordance
with the percent increases presented in Table 9 (as explained in Section 2.2) to
continue to meet service and financial obligations.
Table 9: 5-Year Schedule of Proposed Sewer Rates
Effective Date
Oct 1, 2024'
Residential
All residential Z
Non -Residential
Low Strength
Medium Strength
High Strength
Single Family Account
SF Sewer Only Flat Rate
Non -Residential & Multi -Family
Up to 3/4"
1" meter
1.5" meter
2" meter
3" meter
4" meter
6" meter
8" meter
$0.01268
$0.01325
$0.01780
$0.02688
$17.43
$60.09
July 1, 2025
$0.01357
$0.01418
$0.01905
$0.02876
$18.65
$ 64.31
July 1, 2026
$0.01452
$0.01517
$0.02038
$0.03077
$19.96
$68.81
July 1, 2027
$0.01525
$0.01593
$0.02140
$0.03231
$20.95
$72.26
July 1, 2028
$0.01601
$0.01673
$0.02247
$0.03393
$22.00
$75.87
$45.45
$48.63
$52.04
$54.64
$57.37
$75.75
$81.05
$86.73
$91.06
$95.62
$151.50
$162.11
$173.45
$182.12
$191.23
$242.40
$259.37
$277.52
$291.40
$305.97
$454.50
$486.32
$520.36
$546.37
$573.69
$757.50
$810.53
$867.26
$910.62
$956.16
$1,515.00
$1,621.05
$1,734.52
$1,821.25
$1,912.31
$2,424.00
$2,593.68
$2,775.24
$2,914.00
$3,059.70
1The rates in the first year include structural changes due to the cost -of -service update. While the overall
rate revenue received by the City will increase by 7.0 percent, the individual components of the rates have
changed by different percentages.
Z Individual dwelling units with individual City -owned meters shall be categorized as single family
residential customers. Multi -family units with master meters shall be charged as multi -family residential.
As is currently the City's policy, the flow charge for non-residential customers is
assessed based on actual monthly water usage and the flow charge for residential
customers is based on the lesser of (1) the previous average winter water usage or (2)
the actual water usage for that month.
RESOLUTION NO.2011-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
ESTABLISHING PROCEDURES FOR THE CONDUCT OF PROTEST HEARINGS
PURSUANT TO PROPOSITION 218 FOR NEW OR INCREASED PROPERTY -
RELATED FEES AND CHARGES
WHEREAS, Article XIII D of the CaliforniaConstitutionrequires that cities meet
certain procedural and substantive requirements when adopting a new or increased property -
related fees or charges, and the Proposition 218 Omnibus Implementation Act (Government
Code §53750 and following), as amended, provides additional guidance as to the procedures to
be followed; and
WHEREAS, in order to comply with those procedures and conduct fair and accurate
protest hearings, the City Council wishes to adopt local procedures;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park as follows:
Section 1. The City Council hereby approves the "Procedures for Conducting Protest
Hearings for Proposed New or Increased Property -Related Fees and Charges" as set forth in
Exhibit "A" attached to this resolution and a part of it.
Section 2. The City Council hereby declares its intent, in adopting this resolution, to
adopt procedures that are consistent with, and in compliance with, Article XIII D of the
California Constitution and the Proposition 218 Omnibus Implementation Act.
Section 3. The City Council finds that this project is exempt from the California
Environmental Quality Act ("CEQA") pursuant to Section 15273 of the CEQA Guidelines.
DULY AND REGULARLY ADOPTED this 22"d day of March, 2011.
4°BNaxr Pggk
ATTEST: r CITY OF HN i T PARK
_ 39-- 6?
ity Clerk `^L ° N'P Mayor
AHANOTU: AYE CALLINA(N: AYE MACKENZIE: AYE STAFFORD: AYE BELFORTE: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
OAK #4832-9711-3608 v6
Procedures for Conducting Protest Hearings
for Proposed New or Increased Property -Related
Fees and Charges
Exhibit "A"
OAK #4832-9711-3608 v6
City of Rohnert Park
Procedures for Conducting Protest Hearings
For Proposed New or Increased Property -Related
Fees and Charges
A. Definitions.
1. "Fee" or "rates" shall mean a property -related fee or charge subject to the
requirements of Article XIII D §6 of the California Constitution
2. "Increase" shall mean a change in an existing property -related fee or charge
that is subject to the majority protest hearing requirements of Article XIII D
§ 6.
3. "Public hearing" shall mean the noticed public hearing at which protests
will be received.
4. "Tenant" means a real property tenant directly liable for the payment of the
fee under consideration.
B. Creation of Master Mailing List.
1. The City shall prepare, or cause to be prepared, a Master Mailing List
indentifying each property that would be subject to the proposed new or
increased fee.
2. The Master Mailing List may be based upon the City's account holder
records if the City is currently providing a property -related service. to the
address. The list shall be updated no more than 30 business days before the
date that notices are to be mailed. The Master Mailing List may also be
based upon information in the last equalized secured tax assessment roll.
C. Notice; Right to be Heard.
If the Master Mailing List is created from the City's property -related service
accounts, notice shall be sent to the customary billing address for each and
every account listed as authorized by Government Code §53755. The notice
Exhibit "A"
Page 1
OAK #4832-9711-3608 v6
may be addressed to "Record Owner/ Service Account
Holder."
2. Notice shall be sent via the United States Postal Service, postage prepaid, at
least forty-five (45) days before the date set for the public hearing on the
new or increased fee.
3. The City Clerk may post a copy of the notice on the City's website.
4. The notice shall contain the information required by Article XIII D of the
California Constitution and the Proposition 218 Omnibus Implementation
Act, that is:
a. the amount of the new or increased fee proposed to be imposed;
b. the basis upon which the fee is calculated;
c. the reason for the fee;
d. the date, time and place of public hearing on the proposed fee, and
such other information as the City shall determine is useful to those
receiving it.
5. As provided in Government Code § 53756, the notice provided by these
procedures shall supersede and be in lieu of notice required by any other
statutes to levy the new or increased fees.
6. The City Clerk, or someone delegated by the City Clerk, may certify the
proper mailing of notices by an affidavit, which shall constitute conclusive
proof of mailing in the absence of fraud.
7. Failure of any person to receive notice shall not invalidate the proceedings.
C. Persons Eligible to File Protests; Right to Be Heard.
1. Members of the public are entitled to make comments at the public hearing
whether or not they choose to submit a written protest.
Exhibit "A"
Page 2
OAK #4832-9711-3608 v6
2. Property owners of record are eligible to file protests. The last assessment
roll of the Sonoma County Recorder is presumptive evidence of ownership
of the parcel for the purposes of filing a property -owner protest. If a person
filing a property -owner protest is not listed as the owner on the last
equalized assessment roll, the protest must be accompanied by written proof
that the person signing is the owner of record.
3. When a parcel is. held as community property, or in joint tenancy, or
tenancy -in -common, or by a trust, any spouse or domestic partner, joint
tenant, tenant -in -common, or trustee shall be presumed to have authority to
file a record -owner protest on behalf of that parcel.
4. Executors, administrators, and guardians may sign the property -owner
protest on behalf of the estate represented: by them, if they are shown on the
latest assessment roll as paying taxes or assessments on behalf of the
property owners. If not, written proof of the legal representation must be
filed with the protest. Any one executor, administrator, or guardian is
presumed to have authority to file a property -owner protest on behalf of
such property.
5. The protest of any public or quasi -public corporation, private corporation,
or any unincorporated association may be signed by any person authorized
to do so in writing by the board of directors or trustees or any other
managing body of it.
6. Tenants who are directly liable for the payment of the fee are eligible to file
a tenant protest. A tenant listed as an account holder for the service for
which the new or increased fee is proposed is presumed to be eligible to file
a protest. If the City service account holder listed on the Master Mailing
List has closed his or her account and a new person has qualified with the
City as the account holder prior to the commencement of the Public
Hearing, the new account holder may file a protest.
7. In any case where the documentation provided to the City Clerk in
. accordance with this Section C is ambiguous or unclear, the City Attorney
Exhibit "A"
Page 3
OAK #4832-9711-3608 v6
shall determine whether the documentation is adequate for the purpose
provided.
D. Making and Counting Protests.
1. Any eligible record property owner or tenant may submit a written protest
against the new or increased fee before or during the public hearing to the
City Clerk.
2. Protests must:
a. Be in writing with the original signature from the property owner of
record or tenant.
b. Identify the parcel for which the protest is being made, by address or
Assessor's Parcel Number (APN).
c. State that the signer opposes the new or increased fee.
d. Be received at City Hall before or during the public hearing.
3. Protests delivered before the public hearing shall be hand delivered during
normal business hours, or mailed, to the City Clerk at 130 Avram Avenue,
Rohnert Park, California 94928.
4. Protests submitted by email, fax, or telephone, and oral protests of any kind
will not be considered by the City in determining whether a majority of the
owners of identified parcels have submitted protests.
5. All written protests must be submitted and received by the City Clerk before
the conclusion of the public hearing. The City Clerk shall not accept any
protest that is received after the conclusion of the public hearing even if
postmarked before that time.
6. Any person who submits a written protest may withdraw it by submitting a
request that it be withdrawn before or during the public hearing in the same
manner as a protest can be made. The written withdrawal of a protest shall
identify the parcel by assessor's parcel number or street address and shall
identify the person withdrawing the protest as either the record owner of the
Exhibit "A"
Page 4
OAK #4832-9711-3608 v6
property or the tenant. The withdrawal of a protest shall only be valid if it is
made by the same person who submitted the protest, or by a person with
legal authority to act for that person.
7. No more than one protest shall be counted per parcel.
E. Tabulation of Protests.
1. The City Clerk shall take custody of written protests which shall remain
confidential until after the close of the public hearing. From and after the
time they are tabulated after the conclusion of the public hearing, the
written protests shall constitute public records as defined in. Government
Code § 6524. The City Clerk shall establish appropriate safeguards to
ensure that protests are secure and not available for examination prior to the
conclusion of the public hearing. Once the protests become public records,
the identities of those making protests shall be public.
2. The City Clerk shall determine the validity of all protests. The City Clerk
shall not accept as valid any protest if the City Clerk determines any of the
following:
a. The protest does not identify a parcel which is subject to the new fee,
either by street address or parcel number.
b. The protest does not bear an original signature of the person
submitting the protest.
c. The person signing the protest is not eligible to do so under the rules
set forth in Section C above.
d. The protest does not state its opposition to the new or increased fee.
e. The protest was not received by the City Clerk before the close of the
public hearing.
f. A valid request to withdraw the protest is received before the close of
the public hearing.
3. The City Clerk's decision regarding the validity of a protest shall constitute
a final action of the City and shall not be subject to the appeal to the City
Council or to any other board or employee of the City.
Exhibit "A"
Page 5
OAK #4832-971 I-3608 v6
4. The City shall prepare, or cause to be prepared, a Master Parcel List
identifying each parcel subject to the new or increased fee. A majority
protest exists if, with respect to a majority of the parcels subject to the new
or increased fee, written .protests which comply with each of the
requirements of this resolution are timely submitted and not withdrawn.
5. The City Clerk shall begin tabulating written protests within twenty-four
business hours following the close of the public hearing. The City Manager
may retain a private firm with demonstrated experience in tabulating written
protests to assist the City Clerk. If, at the conclusion of the public hearing,
a cursory review of the protests demonstrates that the number received is
manifestly less than one-half of the parcels that would be subject to the new
or increased fee, then the City Clerk may advise the City Council of the
absence of a majority protest without tabulating the protests.
Exhibit "A"
Page 6
OAK 44832-9711-3608 v6