2025/07/29 Water/Wastewater Issues Committee Agenda PacketROHNERT PARK CITY COUNCIL
WATER/WASTEWATER COMMITTEE
SSPPEECCIIAALL MMEEEETTIINNGG AAGGEENNDDAA
Tuesday, July 29, 2025
1:30 PM
MEETING LOCATION: City Hall Council Chambers
130 Avram Avenue, Rohnert Park, CA
ANNOUNCEMENT: Please turn off all pagers, cellular telephones and all other communication
devices upon entering the meeting room. Thank you for your cooperation.
PUBLIC COMMENTS: Provides an opportunity for public comment on items not listed on the
agenda, or on agenda items if unable to comment at the scheduled time (limited to three minutes
per appearance with a maximum allowance of 30 minutes allotted per comment period, with time
limits subject to modification by the Committee in accordance with the adopted City Council
Protocols). Speakers are encouraged to complete a Public Comment card and submit it to the
Chair at the time of the meeting. This helps ensure an orderly and efficient meeting, but it is not
required. Members of the public may also provide advanced comments by email at
publiccomment@rpcity.org Comments are requested by noon on the day of the meeting, but can
be emailed until the close of the Agenda Item for which the comment is submitted. Email
comments must identify the Agenda Item Number in the subject line of the email. The emails
will not be read for the record but will be provided to the Committee. Please note that all e-
mails sent to the Committee are considered to be public records and subject to disclosure under
the California Public Records Act.
Agendas and minutes may be viewed at the City's website: www.rpcity.org.
1. Call to Order
Committee Members: Emily Sanborn, Vice Mayor
Jackie Elward, Councilmember
Staff: Marcela Piedra, City Manager
Betsy Howze, Director of Finance
Mario Landeros, Interim Director of Public Works
Mark Hendersen, Utilities Operations Manager
2. Public Comments
Persons wishing to address the Committee on any item or on City business not listed on the
Agenda may do so at this time upon recognition from the Chairperson.
3. Presentation from Mark Hildebrand, Hildebrand Consulting, Regarding Water Rate
Study
4. Other Water/Wastewater Updates
5. Adjournment
AGENDA REPORTS & DOCUMENTS: A paper copy of all staff reports and documents
subject to disclosure that relate to each item of business referred to on the agenda are available
for public inspection at City Hall, 130 Avram Avenue, Rohnert Park, California 94928.
Electronic copies of all staff reports and documents subject to disclosure that relate to each item
of business referred to on the agenda are available for public inspection on
https://www.rpcity.org/city_hall/city_council/meeting_central
Any writings or documents subject to disclosure that are provided to all, or a majority of all, of
the members of the Committee regarding any item on this agenda after the agenda has been
distributed will be made available for inspection at City Hall and on our website at the same
time. Any writings or documents subject to disclosure that are provided to the Committee during
the meeting will be made available for public inspection during meeting and on our website
following the meeting.
AMERICAN DISABILITY ACT ACCOMMODATION: Any member of the public who needs
accommodations should email the ADA Coordinator at jcannon@rpcity.org or by calling 707-
588-2221. Notification at least 72 hours prior to the meeting will enable the ADA Coordinator to
use her best efforts to provide reasonable accommodations to provide as much accessibility as
possible while also maintaining public safety in accordance with the City procedure for resolving
reasonable accommodation requests. Information about reasonable accommodations is available
on the City website at https://www.rpcity.org/291/ADA-Accessibility-Resources
CERTIFICATION OF POSTING OF AGENDA
I, Sylvia Lopez Cuevas, City Clerk, declare that the foregoing agenda was posted and
available for review on July 25, 2025 at Rohnert Park City Hall, Community Center, Public
Safety Main Building, and the Public Library. The agenda is also available on the City web
site at www.rpcity.org. Executed this July 25, 2025, at Rohnert Park, California.
Sylvia Lopez Cuevas,
City Clerk
2025 Water and Recycled Water Rate StudyPreliminary Findings
July 29, 2025
Supplemental Item 3
2
Agenda
1.Utility Rate Setting 101
2.Water Enterprise Financial Plan
3.Recycled Water Financial Plan
4.Project Schedule
3
Monthly Water Bill Comparisons
Single Family Homes with Average Water Usage (7,000 gallons)
The Rate Setting Process
Compares the revenues of the utility to its
expenses to determine the overall level of rate
adjustment
Equitably allocates the revenue requirements
between the various customer classes of service
Design rates for each class of service to meet
the revenue needs of the utility, along with any
other rate design goals and objectives
Revenue Requirements
Cost-of-Service
Rate Design
4
Current Water Rate Update
5
Legal Requirements
for Setting Water Rates In California
Proposition 218 (Article XIIID, Section 6 of California Constitution)
•Revenues shall not exceed funds required to provide service; nor used for
another purpose
•Amount shall not exceed the proportional cost of the service attributable to
the parcel
•Service must be actually used or immediately available
•Approval process includes 45-day notice, public hearing, and written
majority protest. Does not require a voting process (unlike taxes)
(Additional information regarding new law AB 2257 to follow)
6
Schematic of Water Utility Fund Cash Flow
7
Reserve Policies
The following are established City reserve policies. In addition to protecting the
City against unforeseen circumstances, these policies also contribute towards the
City’s credit rating.
Operating Reserve: 50% of O&M budget ($5.6 million target)
Rate Stabilization Reserve: Target balances of $1.5 million. The Rate
Stabilization Reserves may fluctuate above and below the $1.5 million
target balances.
Recommended Policy: Capital Reserve: A capital reserve gives the water utility
a cushion for managing the inherent volatility of capital spending. A
preliminary reserve of $3 million is recommended (about 50% of average
annual capital spending).
Revenue
FY2025/26 Budget
8
Utility Rate Revenue $12,357,000
Non-Rate Revenue
Penalties $101,000
Interest Earnings $606,000
Operating Revenue $628,000
Transfer In $400,000
Total:$14,092,000
* Vehicle replacement fund
*
Operating and Debt Expenses
FY2025/26 Budget
9* Does not include capital spending
*
Salaries $1,734,000
Benefits $623,000
Operational Expenses $1,231,000
Professional Services $1,025,000
Insurance $166,000
Fees and Subscriptions $182,000
Utilities $846,000
Cost Allocation Plan $794,000
Purchase of Water $3,830,000
Transfer Out $108,000
Internal Services $391,000
Internal Loan $301,000
Total Budget:$11,231,000
Cost Inflation Assumptions
10
Salaries, benefits, utilities,
chemicals and vehicle replacement….. 5% per year
Wholesale water………………………….... 12% for two years, then
10% thereafter
Insurance……………………………….……. 10% per year
Other Costs…………………………… …….. 3% per year
Sonoma Water Rates
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Rohnert Park’s Water Purchase Costs in Dollars
$
Fiscal Year
6-Year Capital Project List
13
Project Cost Notes
1 Water System Controls and Telemetry $952,000
2 Snyder Lane Parallel Pipeline Ph. 2 (RPX to Hinebaugh Creek)$4,300,000
3 Utilities Office $650,000
4 Water Meter Replacements $7,390,000 50% funded by Sewer
5 Well and Tank Site Improvements (formerly Seismic Upgrades)$13,160,000 75% funded by a grant
6 Well/Tank Site Improvements Ph. 2 & Water Quality $4,000,000
7 A Section/Commerce Water Line Replacement Ph 2 $1,184,000
8 Water Tank #9 $3,897,000 Funded by capacity charges
9 Tank Interior Recoating $3,300,000
10 SCADA Upgrade & PRV Integration $625,000
11 Water Line Replacement Program $4,515,000
12 Pipe Condition Assessment $1,000,000
13 Aqueduct Tie-Ins and Pipe Runs Upsizing $1,200,000
14 Six-Year Costs:$46,173,000
* Expressed in 2025 dollars
Projected Capital Spending
14
Recent Average Capital:
$1.7M
Forecasted Average
Capital: $8.1M
Assumed Long-Term
Average Capital: $5.1M
15
Rate Increase Drivers
•Inflation – Operating costs will be 19% higher in FY25/26 than projected
during 2021 Study.
•Capital Spending – Capital spending from FY2025 through FY2030 was
projected to be $24 million. Current plan is to spend $46.1 million (a 92%
increase)
Financial Forecast & Proposed Rate Revenue Increases
16
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 FY2036
Rate Revenue Increase:12.0%10.0%10.0%10.0%6.0%3.0%3.0%3.0%3.0%3.0%3.0%
Grant Funded Capital:$2.7M $7.3M
Sewer Funded Capital:$2.1M $0.9M $0.8M
Proposed Projected Increases (TBD)
$0
$5
$10
$15
$20
RE
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V
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S
($
M
)
Projected Ending Fund Balance Reserves Target Minimum Reserves
$0
$5
$10
$15
$20
$25
$30
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 FY2036
To
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R
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($
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Ex
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Re
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Non Rate Revenue
Operating Expenses
Debt Service
Existing Rate Revenue
Cash Capital
Additional Rate Revenue
Debt Service
17
Proposed Water Rates
November 1,
2025
July 1,
2026 2
July 1,
2027
July 1,
2026
July 1,
2029
Rate Revenue Increases:12.0%10.0%10.0%10.0%6.0%
Current
Single Family Usage Rate ($/gal.)
Tier 11 $0.004133 $0.004629 $0.005092 $0.005601 $0.006161 $0.006531
Tier 2 $0.005718 $0.006404 $0.007044 $0.007748 $0.008523 $0.009034
Multi-Family and Non-Residential Usage Rate ($/gal.)
Uniform Rate $0.005013 $0.005615 $0.006177 $0.006795 $0.007475 $0.007924
Fixed Monthly Service Charges
Up to 1"$34.30 $38.42 $42.26 $46.48 $51.13 $54.20
1.5"$63.99 $71.67 $78.84 $86.72 $95.39 $101.11
2"$99.62 $111.57 $122.73 $135.01 $148.51 $157.42
3"$182.75 $204.68 $225.15 $247.66 $272.43 $288.77
4"$301.52 $337.70 $371.47 $408.62 $449.48 $476.45
6"$598.45 $670.26 $737.29 $811.02 $892.12 $945.65
8"$954.75 $1,069.32 $1,176.25 $1,293.88 $1,423.26 $1,508.66
1 For the first 3,000 gallons per month
2 This marks a change from the current practice of changing rates on the first of the calendar year.
3 Fire Protection Service Charges are also proposed to increase by the same percentages.
Proposed
18
Monthly Water Bill Comparisons
Single Family Homes with Average Water Usage (7,000 gallons)
Existing Drought Surcharge Policy (established in 2021)
19
Normal
Supply
Stage 1
Voluntary
Stage 2
Mandatory
Stage 3
Mandatory
Stage 4
Mandatory
Stage 5
Mandatory
Stage 6
Mandatory
Assumed Demand Reduction 1-->None 5%15%25%35%45%50%
Water Shortage Surcharge 2-->None 0%5%10%15%20%
Estimated Financial Deficit from Water Shortage
Reduced Water Rate Revenue $0 -$295,000 -$884,000 -$1,473,000 -$2,063,000 -$2,652,000 -$2,946,000
Increased Water Conservation Costs $0 $0 -$25,000 -$50,000 -$50,000 -$75,000 -$100,000
Estimated Total Financial Deficit $0 -$295,000 -$909,000 -$1,523,000 -$2,113,000 -$2,727,000 -$3,046,000
Multi-Pronged Corrective Strategy
Reduce SCWA Water Purchase Costs $0 $233,000 $698,000 $1,164,000 $1,629,000 $2,095,000 $2,328,000
Water Shortage Surcharge Revenue $0 $0 $0 $221,000 $383,000 $486,150 $589,400
Total Corrective Actions $0 $233,000 $698,000 $1,385,000 $2,012,000 $2,581,150 $2,917,400
Surplus/(Deficit) Due to Shortage 3 (62,000)$ (211,000)$ (138,000)$ (101,000)$ (145,850)$ (128,600)$
Notes:
1 All water use reductions are assumed to come from SCWA purchases, therefore pumping costs are expected to remain the same.
2 Temporary water shortage surcharges generate supplemental revenue during certain stages of shortage.
3 These deficits have been mitigated by water shortage surcharge revenues sufficiently to be supportable by emergency reserves. While not
modeled here, modest decreases in the capital spending could be used to further mitigate revenue shortfalls.
20
AB 2257
•Enacted in September 2024
•Establishes formal objection procedure for ratepayers to raise
concerns about potential increases
•Designed to address disputes during public participation period
•Creates an exhaustion of administrative remedies procedure
•Requires ratepayers to bring objection prior to the deadline
established as part of the rate setting process
•Enhances ratepayer engagement and permits agency to resolve
factual issues
Implementing AB 2257
•Adopt procedure for establishing “Exhaustion of Administrative Remedies”
•Procedures will be noticed on City’s website and in Prop 218 Notice
(minimum 45 days)
•Receive “Written Objections”
•Objections are eligible until the close of the specified deadline
•City to prepare written responses to Objections
•Hold Public Hearing
•Vote to adopt rates (if majority protest does not exist)
22
Present Findings to Water Committee July 29
Recommendation to Council August 26 (tentative)
Issue Notification Early September (tentative)
Protests/Objections Due TBD
Public Hearing October 28 (tentative)
New rates are implemented November 1 (tentative)
Project Schedule
Questions/Discussion