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HomeMy WebLinkAbout2025/12/02 City Council Resolution 2025-090 RESOLUTION NO. 2025-090 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ADOPTING WATER SERVICE RATES (YEARS 2026-2029) WHEREAS, the City exercises its constitutional authority to establish, operate, and regulate a water service system, 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 water service; and WHEREAS,Resolution No. 2022-020,adopted by City Council on February 8 2022, established water service rates which were enacted for 2022 - 2026, with authorized annual increases January 1 of each year; and WHEREAS, the City hired Hildebrand Consulting ("Consultant") to review the City's current water service rates to determine if they generate sufficient revenue over time to pay for the City's ongoing costs to provide the water service, including costs for maintenance and replacement projects, ongoing operations costs, and any planned major capital projects;and WHEREAS, Consultant prepared the 2025 Water Rate Study Report dated September 15, 2025, ("Rate Study") that determined the total costs of providing the water service utility to City customers and calculated the proposed water service rates to be charged to each customer class based on their proportionate impact on the water service system (the Rate Study is incorporated herein by reference); and WHEREAS, at a public meeting of the City Council on August 26, 2025, the City Council approved Resolution No. 2025-066 to establish Utility Rate Setting Procedures (for Water Rates and Sewer Rates),by which the City provides an opportunity for property owners and tenants to submit to the City a written objection to identify substantive reasons why a proposed update to utility rates does not comply with legal requirements under California Constitution Article XIII D, Section 6 (a.k.a., Proposition 218), and this process must be followed by property owners and tenants as a condition to challenging utility rates in court(a requirement to exhaust administrative remedies in accordance with"AB 2257,"Government Code Section 53759.1); and WHEREAS, at a public meeting of the City Council on September 23, 2025, City staff presented the Rate Study which found: (a) current water service rates are insufficient to support the increasing costs of operation, maintenance and replacement of the City's water system, (b) additional revenue is needed to cover the total costs of City water service, and (c) an increase in water service rates to be paid by City customers is correspondingly needed and recommended to be implemented for the remainder of fiscal year 2026 along with annual adjustments each July 1 thereafter until July 1, 2029; and WHEREAS, at a public meeting of the City Council on September 23, 2025, City staff presented the Rate Study which also found: that it is necessary to update the Water Shortage Surcharge Policy which is a tool the City would use to reduce the (potentially severe)financial impacts associated with reduced water sales and increases in operating costs during a drought or other water shortage event; 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 September 26, 2025); 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 support the needs of the utility's capital program. WHEREAS, pursuant to California Constitution Article XIII D, Section 6 (a.k.a., Proposition 218),prior to extending,imposing or increasing water 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 water 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 September 23, City Council meeting, Council directed staff to mail the required notice of public hearing to be held on December 2, 2025, to consider adoption of the recommended increased water service rates; and WHEREAS, notice of the public hearing to consider proposed adjustments to the water 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 that notice identified the deadline of November 12 at 5:00 p.m. for property owners or tenants to submit a written objection in accordance with AB 2257; and WHEREAS, on December 2, 2025, the City Council held a duly noticed public hearing on the water 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 written objections or written protests against the proposed water service rates); and WHEREAS,prior the time of closing the public hearing,the City Council considered any written objections and written responses prepared by City staff and determined that no clarification or reduction to the proposed water service rates were warranted, based on the criteria of AB 2257; and Resolution 2025-090 Page 2 of 5 WHEREAS, at the time of closing the public hearing for Council's consideration of this Resolution on December 2, 2025, the City had not received written protests from a majority of properties subject to the water service rates, and therefore, a majority protest to the proposed increase in water rates described in this Resolution does not exist. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that effective January 1, 2026, the water service rates set forth in Exhibit "A" are hereby approved, as described below. A. The rates set forth in the Table 1 rate schedule column labeled "January 1, 2026" on Exhibit "A" shall be effective January 1, 2026 Upon that effective date: (1) City staff is directed to bill customers at those water service rates; and (2) water rates previously approved by City Council under Resolution No. 2022-020 are hereby repealed and replaced by these rates. B. Thereafter, water service rates set forth on Table 1 of Exhibit"A" in each column respectively labeled: July 1, 2026, July 1, 2027, July 1, 2028, and July 1, 2029, shall be effective on the date that is the later of: (1) July 1 of the year identified on each respective column, and (2) thirty days after the date that written notice is mailed to customers in accordance with Government Code Section 53756(d). The Finance Director, or designee, is directed to mail the written notice to each customer not less than 30 days before the effective date of each of the annual adjustments, including an identification of the effective date of the adjustment. Upon the effective date of each annual adjustment, City staff is directed to bill customers at the water service rates set forth in the corresponding rate schedule column. C. The Temporary Water Shortage Surcharge Structure Rates set forth in Table 2 of Exhibit"A" shall be effective during the time in which the City Council has publicly declared a water shortage under Stage 1 through Stage 6,with the rates in effect under the relevant column for Stage 1 through Stage 6. 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. BE IT FURTHER RESOLVED that, after due consideration of the entire record identified in this Resolution, particularly the analysis set forth in the Rate Study, the City Council hereby finds that the water service rates approved by this Resolution are excluded from the definition of a "tax," and the water 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 water service rates approved by this Resolution: 1. are "property-related fees" imposed in accordance with California Constitution, Article XIII D; 2. are fees or charges for"water services"; Resolution 2025-090 Page 3 of 5 3. will generate revenue in an amount that is no more than necessary to cover the reasonable cost of providing the water service described in the Rate Study. The water service described in the Rate Study includes the City's costs of operation, maintenance, repair, and replacement of the water 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 water service. Revenue from the water service rates will be kept in a separate fund used only for costs related to the provision of water 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 water services described in the Rate Study, so that the water 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 water service is not immediately available. 7. are charges imposed for providing water service which is a specific governmental service provided directly to the ratepayer that is not provided to those not charged. The water 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. 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 water 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. DULY AND REGULARLY ADOPTED BY THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ON this 2nd day of December, 2025. CITY OF ROHNERT PARK Gerard . - f ayor _ Resolution 2025-090 Page 4 of 5 ATTEST: Sylvia Lopez Cuevas, City Clerk APPROVED AS TO FORM: Michael Barrett, Deputy City Attorney Attachments: Exhibit A, 5 Year Schedule of Proposed Rates and Water Surcharge Policy ADAMS: ,C ELWARD L_ RODRIGUEZ: Fail SANBORN GIUDICE: 9(d AYES: ( ) ES: ( ( ) ABSENT: ( / ) ABSTAIN: ( 95) Resolution 2025-090 Page 5 of 5 Exhibit A to Resolution 2025-090 City of Rohnert Park Water Rates Effective January 1, 2026 Table 1 - Five Year Water Rate Schedule Table 2 - Temporary Water Shortage Surcharge Structure January 1, 2026 July 1, 2026 2 July 1, 2027 July 1, 2028 July 1, 2029 Rate Revenue Increases:14.0% 9.0%9.0%7.0%6.0% Current Usage Rates ($/gal.) Single Family Usage Rate Tier 11 $0.004133 $0.004712 $0.005136 $0.005598 $0.005990 $0.006349 Tier 2 $0.005718 $0.006519 $0.007106 $0.007746 $0.008288 $0.008785 Multi-Family and Non-Residential Usage Rate Uniform Rate $0.005013 $0.005715 $0.006229 $0.006790 $0.007265 $0.007701 Fixed Monthly Service Charges Up to 1"$34.30 $39.10 $42.62 $46.46 $49.71 $52.69 1.5"$63.99 $72.95 $79.51 $86.67 $92.74 $98.30 2"$99.62 $113.57 $123.79 $134.93 $144.37 $153.04 3"$182.75 $208.34 $227.09 $247.52 $264.85 $280.74 4"$301.52 $343.73 $374.67 $408.39 $436.98 $463.19 6"$598.45 $682.23 $743.63 $810.56 $867.30 $919.34 8"$954.75 $1,088.42 $1,186.37 $1,293.15 $1,383.67 $1,466.69 Monthly Fire Protection Service Charge 2"$25.80 $29.41 $32.06 $34.94 $37.39 $39.63 3"$32.85 $37.45 $40.82 $44.49 $47.61 $50.46 4"$41.08 $46.83 $51.05 $55.64 $59.53 $63.11 5"$50.47 $57.54 $62.71 $68.36 $73.14 $77.53 6"$55.15 $62.87 $68.53 $74.70 $79.93 $84.72 8"$75.09 $85.60 $93.31 $101.70 $108.82 $115.35 10"$90.35 $103.00 $112.27 $122.37 $130.94 $138.80 12"$105.60 $120.38 $131.22 $143.03 $153.04 $162.22 1 For the first 3,000 gallons per month 2 This marks a change from the current practice of changing rates on the first of the calendar year. Proposed Normal Supply Stage 1 Voluntary Stage 2 Mandatory Stage 3 Mandatory Stage 4 Mandatory Mandator y Stage 6 Mandatory Assumed Demand Reduction-->None 5%15%25%35% 45% 50% Water Shortage Surcharge 1-->None None 5%10% 17% 22% Water Usage Rate with Surcharge Applied ($/gallon)2 Single Family Residential Tier 1 (0 to 3,000 gal/mo)$0.004712 $0.004712 $0.004712 $0.004950 $0.005180 $0.005510 $0.005750 Tier 2 (above 3,000 gal/mo)$0.006519 $0.006519 $0.006519 $0.006840 $0.007170 $0.007630 $0.007950 Multi-Family and Non-Res. (all water)$0.005715 $0.005715 $0.005715 $0.006000 $0.006290 $0.006690 $0.006970 Hydrant Meters $0.007960 $0.007960 $0.007960 $0.008360 $0.008760 $0.009310 $0.009710 Fixed Monthly Charge 3 Service Charge Notes: declared by the City Council. 2 This table shows the temporary water shortage surcharges applied to the proposed rate increases for FY 2025/26 for illustrative purposes. -------------- No changes to the service charge ---------------- 1 Temporary water shortage surcharges are incremntal increases in the normal water usage rates appplied during periods of water shortage, as The percentages shown in this table would be applied to any then-current rates in future years. 3 No changes to the fixed monthly services charges would be imposed as a result of declared water shortages. RESOLUTION NO. 2025-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ESTABLISHING UTILITY RATE SETTING PROCEDURES (FOR WATER RATES AND SEWER RATES) UNDER PROPOSITION 218, AND ASSEMBLY BILL 2257 GOVERNMENT CODE SECTIONS 53750 THROUGH 53759.2); AND REPEALING RESOLUTION NO. 2011-25 WHEREAS,The City of Rohnert Park("City")provides utility services for water service and sewer service to property owners(who may also be referred to as"owners")within the relevant City service area, and establishes the amount of water rates and sewer rates to be charged customers in accordance with Rohnert Park Municipal Code ("Municipal Code") Chapter 13.44 and applicable law; and WHEREAS, California law authorizes the City to charge a fee to the property owners or property owners' "tenants" (who may be collectively referred to as "ratepayers" or"customers") for the proportionate cost of providing water services and sewer services to each customer in accordance with the procedural and substantive requirements of the voter-approved ballot measure known as "Proposition 218" (California Constitution Article XIII D; as it is implemented by the Legislature at Government Code sections 53750—53759.2;and as it has been judicially interpreted by appellate court decisions). The City refers to those fees as water rates and sewer rates (which may be referenced herein individually as"water rates"or"sewer rates,"or referenced collectively as"rate"or"rates"); and WHEREAS, Under Proposition 218, the City's water rates and sewer rates are each considered to be a "fee" for a "property-related service" (also referred to as a "property-related fee"), subject to the particular requirements of Constitution Article XIII D, Section 6. A property- related fee is one imposed upon any parcel or person as an incident of property ownership. In general, the City may only increase its existing rates if the City (1) calculates the rates in accordance with Proposition 218, (2) conducts a public hearing before the City Council ("City Council"), as described in this resolution, and (3) a"timely written protest" is not submitted by property owners representing a majority of the parcels served by the City; and WHEREAS, Under Government Code sections 53759.1 and 53759.2 ("AB 2257"; Chapter 561, Statutes of 2024), the City may establish a supplemental process for objecting property owners to exhaust administrative remedies, also described in this resolution, by which the City will take specified actions in response to any "timely written objection." Any timely written objection will also be counted by the City as a timely written protest. However, under this process, only an owner who submits a timely written objection will have a right to challenge a proposed increase in sewer service charges through a legal proceeding. (These supplemental processes were authorized by Assembly Bill No. 2257, Chapter 561, Statutes of 2024, effective January 1, 2025.); and WHEREAS, the purpose of this resolution is to provide a meaningful opportunity for a property owner to submit a written objection to a proposed new or increased rates before resorting to litigation after the new or increased rates are approved by the City Council; and WHEREAS, this resolution is intended to provide a procedure for property owners to submit a written objection regarding a new or increased rates to the City's attention early in the rate consideration process, and to provide an opportunity for the City to address or resolve any objections before the City Council makes a final decision on whether to adopt a proposed rate pursuant to Proposition 218; and WHEREAS, this resolution will identify the process the City will follow in order to implement the administrative remedies to be exhausted by property owners under Government Code sections 53759.1.In general,the City will make available the proposed rates,post the written basis for the proposed rates on its internet website,provide 45 days for a property owner to review the proposed rates and timely submit to the City a written objection to the rates that specifies the grounds for alleging noncompliance with Proposition 218, and require the City to consider and respond in writing to timely submitted objections prior to the close of the public hearing described in these recitals; and WHEREAS, for any rates approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those rates, unless that person or entity has timely submitted to the City a written objection to that rate that specifies the grounds for alleging noncompliance with Proposition 218; and WHEREAS, the City Council hereby intends to adopt the exhaustion of administrative remedies procedure as outlined in Government Code section 53759.1, and the administrative record principles contained in Government Code section 53759.2; and WHEREAS, the City Council previously adopted Resolution No. 2011- 25 to establish procedures for conducting protest hearings for property related fees (such as the water rates and sewer rates) in accordance with Proposition 218, and the City intends Resolution No. 2011-25 to be superseded and replaced by this resolution in order to establish procedural implementation of Proposition 218 as well as AB 2257. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Rohnert Park, as follows: A. The City Council hereby adopts the utility rate setting procedures attached hereto as Exhibit "A," and incorporated herein by reference ("Utility Rate Setting Procedures"). The Utility Rate Setting Procedures explicitly incorporate and implement the requirements contained in Proposition 218 and the procedures by which property owners are required to exhaust administrative remedies as set forth in Government Code section 53759.1, subdivision(c). B. For any rate adopted or approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those rates,unless that person or entity has timely submitted to the City a written objection to those rates in accordance with this resolution that specifies the grounds for alleging noncompliance with Proposition 218. C. The City Council hereby adopts the administrative record principles contained in Government Code section 53759.2. Resolution 2025-066 Page 2 of 3 D. This resolution will take effect immediately upon adoption by City Council, and will apply to any proposed new or increased rates of which notice is provided in accordance with this resolution. E. The City Council authorizes the City Manager to take such other and additional actions as may be reasonably necessary to implement the purpose of this resolution and implement the exhaustion of administrative remedies procedure adopted herein. F. The City Council hereby repeals Resolution No. 2011-25. DULY AND REGULARLY ADOPTED BY THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ON this 26th day of August, 2025. CITY . 40, O ERT PARK y-A.W. IdGi •' ,ayor ATTEST: Sylvia Lopez Cuevas, City Clerk AP R D AS TO FORM: ich lle Marche enyon, City Attorney Attachments: Exhibit A, Utility Rate Setting Procedures ADAMS ELWARD: 4 V 4_ RODRIGUEZ: SANBORN. GIUDICE: AYES: ( 5. NOES: (AB NT: ( ) ABSTA A Resolution 2025-066 Page 3 of 3 Resolution No. 2025-066 (Exhibit “A”) Page 1 of 6 Utility Rate Setting Procedures These “Utility Rate Setting Procedures” (“Procedures”) describe the processes that will be followed by the City of Rohnert Park (“City”) in establishing any new or increased water rates or sewer rates, as summarized in the Resolution identified in the header of this Exhibit “A.” The Utility Rate Setting Procedures include compliance with Proposition 218 as well as the procedures for exhausting administrative remedies under Government Code section 53759.1 known as “AB 2257”). 1. Overview of Exhaustion Procedure (AB 2257) The City will follow the “exhaustion procedure” set forth herein, to be conducted concurrently with the Proposition 218 process, for the City Council’s consideration of any proposed new or increased water rates or sewer rates. This exhaustion procedure shall be conducted in accordance with “Proposition 218” (California Constitution Article XIII D; as it is implemented by the Legislature at Government Code sections 53750 – 53759.2; and as it has been judicially interpreted by appellate court decisions), and the particular procedures set forth in Government Code section 53759.1. The exhaustion procedure provides an opportunity for record owners to submit a “timely written objection” to identify substantive bases for asserting proposed water rates or sewer rates do not comply with Proposition 218. NOTE that a “record owner” may be referred to in these Procedures as the “owner” or property owner”; and a “record owner” shall include a tenant who is directly liable to pay the rates. The processes described herein may be referred to as “these Procedures.” As used in these procedures, the term “rates” may be used to refer to a proposed update to either the City’s water rates or sewer rates. a. City staff will post on its internet website a notice of the exhaustion procedure, and this notice will be prominently incorporated in the Proposition 218 public hearing notice mailed to each record owner. b. The notice will identify the date and time by which timely written objections must be submitted to the City, and the date will be no less than 45 calendar days after the notice is mailed to record owners. c. City staff will review timely written objections and draft written responses providing the substantive basis for retaining or altering the proposed rates in response to the written objections. City staff will present its written responses to the City Council prior to the close of the public hearing for the Proposition 218 protest hearing, and the City Council will review to determine whether action is needed in response to the written objections or written responses. d. Following the City Council’s review and response to timely written objections and written responses, it is within the discretion of the City Council to proceed with the Proposition 218 protest hearing process, as described herein, to consider approval of the proposed rates. e. Rate Challenger Must Exhaust Administrative Remedies. No claim, suit for damages, suit for injunctive relief, petition for writ of mandamus, or administrative or judicial proceeding shall be brought against the City (including the City Council, or its Resolution No. 2025-066 (Exhibit “A”) Page 2 of 6 employees, officers, or designees) regarding a challenge to the proposed rates unless the challenging party first exhausts its administrative remedies by complying with these Procedures and submitting to the City a timely written objection. 2. Notice of Proposition 218 Public Hearing and Initiating Exhaustion Procedure (AB 2257) Prior to approving or imposing any new or increased rates, the City will conduct a public hearing and provide prior written notice to each record owner of the hearing and the exhaustion procedure as described in these Procedures. To the extent the City sends a regular billing statement for water service or sewer service provided to a “customer” (e.g., a “tenant” or other ratepayer”) who is not the record owner, the City will also mail the written notice to the customer at the address for the billing statement. The City will mail the public hearing notice to each record owner no later than 45 days prior to the public hearing. The contents of the hearing notice will include: a. Compliance with Proposition 218: 1) The date, time, and location of the public hearing. 2) The amount of the rates imposed on each parcel. 3) The basis upon which the amount of the proposed rates were calculated. 4) The reason for the rates. 5) The location to which owners must submit written protests via mail, or personal delivery. 6) If required by Government Code section 54354.5, the notice will identify the opportunity for record owners to be heard as to whether the proposed rates are not in compliance with any requirements of the Revenue Bond Law of 1941 Government Code Sections 53000 – 55821), including: (a) are discriminatory or excessive, or (b) will not be sufficient under the provisions of any outstanding revenue bonds (including Government Code section 54515). 7) How members of the public may obtain additional information regarding the proposed new or increased fee, including a link to information that is available on the City’s website or by requesting a mailed copy. This may include a copy of the resolution or ordinance by which the proposed new or increased rates are proposed to be adopted. b. Compliance with the Exhaustion Procedure for Written Objections. If the City chooses to follow the exhaustion procedure for written objections, concurrently with mailing the public hearing notice, the City will post on its internet website the written basis for the proposed rates and a link to the Proposition 218 public hearing notice which will be supplemented with the following prominently displayed information: 1) The “deadline” (date and time) by which a “timely written objection” must be submitted to the City. The deadline will be no earlier than 45 days after the City mails to property owners the notice of the public hearing. Resolution No. 2025-066 (Exhibit “A”) Page 3 of 6 2) The location to which written objections must be submitted to the City via mail, or personal delivery. 3) All substantive requirements for submitting a written objection. The record owner must comply with the requirements set forth in Procedures section 3, below, including specifying the grounds on which the owner alleges the proposed new or increased rates does not comply with Proposition 218. 4) Notice that: (a) any person’s failure to submit a timely written objection bars any right of that person to challenge the proposed new or increased fee through a legal proceeding; and (b) there is a 120-day statute of limitations for challenging the proposed new or increased rates (in accordance with Government Code section 53759). c. The City will mail the public hearing notice to each record owner of a parcel that is subject to payment of the new or increased fee. The notice shall be mailed to owner’s address shown on the last equalized property tax assessment roll. 1) There is a rebuttable presumption that the most recent equalized property tax assessment roll of the Sonoma County Recorder is sufficient evidence of the record owner of each parcel. A person may rebut the presumption by providing to the City written proof of ownership. 2) The City Clerk, or designee, may certify by affidavit the proper mailing of notices described in these Procedures, and any such affidavit shall constitute conclusive proof of mailing in the absence of fraud. 3) Failure of any person to receive notice shall not invalidate the hearing or its results. 4) The City will also provide supplemental notices to the address where the City customarily mails the billing statement for rates. d. Concurrently with publishing and mailing the public hearing notice, the City will post on its website relevant information regarding the proposed new or increased fee including a copy of the cost of service analysis (which may be referred to as a “rate study”) which provides documentation of compliance with all substantive requirements of Prop 218 regarding the calculation of the amount of the proposed new or increased fee. 3. Requirements for Submitting Timely Written Objections (AB 2257) For the purpose of considering written objections, the City will consider the term “record owner” to include tenancies of real property where tenants are directly liable to pay the rates to the City (consistent with Proposition 218; California Constitution Article XIII D, Section 2(g)). In order for a record owner to submit a timely written objection, it must: a. Be received by the City at the location identified on the public hearing notice, no later than the deadline identified on the public hearing notice. The deadline may be no earlier than 45 days after the City mails to record owners the notice of public hearing. Resolution No. 2025-066 (Exhibit “A”) Page 4 of 6 b. Be in writing (1) identifying the name of the record owner, and the street address or assessor’s parcel number (or other clear identification) of the property subject to the rates; and (2) signed by the record owner. c. Specify the grounds for alleging the proposed rates do not comply with Proposition 218. The grounds must identify (i) the substantive requirement of Proposition 218, and (ii) the reason the proposed rates do not comply with that requirement. For any proposed new or increased “fee” for a property-related service (such as water rates or sewer rates), relevant substantive requirements of Proposition 218 include: 1) Revenues derived from the rates shall not exceed the funds required to provide the property related service (water service or sewer service). 2) Revenues derived from the rates shall not be used for any purpose other than that for which the fee or charge was imposed. 3) The amount of the rates shall not exceed the proportional cost of the service attributable to the parcel. 4) No rates may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Rates based on potential or future use of a service are not permitted. 5) No rates may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. 4. Requirements for Submitting Timely Written Protests (Proposition 218) For the purpose of considering and counting written protests, the City will consider the term record owner” to include tenancies of real property where tenants are directly liable to pay the rates to the City (consistent with Proposition 218; California Constitution Article XIII D, Section 2(g)). In order for a record owner to submit a timely written protest, to be considered as a part of the Proposition 218 protest hearing described in Section 6, below, it must: a. Be received by the City at the location identified on the public hearing notice, no later than the close of the public testimony portion of the public hearing. b. Be in writing (1) identifying the name of the record owner, and the street address or assessor’s parcel number (or other clear identification) of the property subject to the rates; and (2) signed by the record owner. A written protest must be submitted in paper form. Any protest will not satisfy this requirement if it is submitted in any non-paper format such as: email, facsimile, or oral protest via telephone or in person. c. Must clearly identify that the record owner opposes the proposed new or increased rates that are the subject of the hearing. Resolution No. 2025-066 (Exhibit “A”) Page 5 of 6 d. Will only be counted as one protest per parcel. That means if any one or more record owners of a parcel submits a timely written protest (or timely written objection) for the same parcel, it will be counted as one timely written protest. e. Record owners of multiple parcels within the City may file one protest for each parcel owned within the City’s service area. f. A record owner may withdraw a written protest only if the withdrawal is submitted in writing by the record owner clearly indicating an intent to withdraw for an identified property, and it is received by the City at the location (and no later than the time) for submitting written protests. After a written protest is withdrawn, a record owner may submit a new or replacement written protest in accordance with the requirements of these Procedures. No other modification to a timely written protest may be made. g. The City Clerk shall take custody of all submitted written objections and written protests. 1) In order to protect the integrity of the procedures for considering written objections and written protests as described in these Procedures, all written objections and written protests shall remain confidential until the City Manager (or designee) has determined they may be published in accordance with the criteria in paragraph 4(g)(2). 2) Any submitted written objection and written protest shall be a public record; however, the City may withhold disclosure if the City determines that the public interest served by not disclosing clearly outweighs the public interest served by disclosure under Government Code section 7922.000. As a general rule, the City finds there is a substantial public interest in not disclosing written objections and written protests to protect the integrity of the process described herein during the time that: (A) written objections are still being submitted and (B) prior to the time that the Brown Act meeting agenda is posted (e.g., at least 72 hours before a regular meeting under Government Code section 54954.2). 5. City’s Response to Timely Written Objections (AB 2257) At the close of the written objection period, City staff shall review timely written objections (as defined in Section 3, above) and shall draft written responses to the written objections. The City’s written response will include: (i) the grounds on which the objection is (or is not) resulting in amendments to the proposed new or increased rates; and (ii) an explanation of the substantive basis for retaining or altering the proposed new or increased rates. City staff shall present the written responses to the City Council at the public meeting that was specified in the public hearing notice described in Section 2, above. a. In accordance with the Brown Act, the public will be provided an opportunity to address the City Council prior to the Council’s action related to the timely written objections and written responses. (See Government Code section 54954.3(a).) b. In accordance with Government Code section 53759.1(d), the City Council, in exercising its legislative discretion in considering timely written objections and written Resolution No. 2025-066 (Exhibit “A”) Page 6 of 6 responses, shall determine for the proposed new or increased rates whether further review, clarification, or reduction is needed, and whether to proceed to the Proposition 218 protest hearing. 6. Conducting the Proposition 218 Protest Public Hearing If the City Council determines to proceed to the Proposition 218 protest public hearing for proposed new or increased rates (as previously noticed in accordance with Section 2, above), the public hearing shall be conducted consistent with the following: a. The City Council will open the public hearing and consider all evidence presented during the hearing including the public hearing notice and all documents referenced therein (particularly including the Rate Study), all written objections (AB 2257), written responses, written protests, and any testimony, documents, or information presented during the public hearing. b. Prior to closing the public hearing, the City Council will request if there are any additional written protests, under Proposition 218, to be submitted to (or withdrawn from) the City. c. The City Council will then close the public hearing and request a report from the City Clerk to identify the number of timely written protests compared to the total number of parcels subject to the new or increased fees. The City Clerk shall seek legal advice from the City Attorney if there are any questions regarding the counting of timely written protests that meet the requirements of these Procedures. 1) A majority protest exists only if the number of timely written protests exceeds one-half of the parcels served by the City. 2) If the City Clerk determines that additional time is needed to tabulate timely written protests, the City Council shall recess or continue the public meeting to provide sufficient time for the City Clerk to complete the tabulation. 3) If the City Clerk determines that there is a majority protest, the City shall not impose the new or increased rates. 4) If the City Clerk determines that there is not a majority protest, the City Council shall continue its deliberations and take action on the proposed new or increased rates. 5) The City Clerk’s determinations under these Procedures shall be the final determination of the City subject to appropriate judicial review. This shall include the City Clerk’s determinations that: (a) a written protest meets the requirements for a timely written protest in accordance with these Procedures; or (b) a majority protest has (or has not) been submitted for the proposed rates. City of Rohnert Park Written Response to Written Objections and Submittals for Proposed Adjustments to Water Rates and Service Charges (AB 2257 – Government Code Sections 53759.1 and 53759.2) The City of Rohnert Park (“City”) provides this written response to timely written objections related to the City’s proposed approval of updates to water rates and service charges (hereinafter “water rates”). This response also includes responses to submissions received by the City that are related to the water rates, were received by the City during the time for submitting written objections, but which do not meet the requirements for filing a “timely written objection” in accordance with Government Code Section 53759.1 and City Resolution No. 2025-006. By September 26, 2025 (which was at least 45 days prior to December 2, 2025), the City mailed the “Notice of Public Hearing” (Exhibit “A”) to each record owner served by City water services, and the City posted the Notice of Public Hearing on the City’s webpage (https://www.rpcity.org/586/Water-Sewer-Rate-Updates-What-to-Know). The Public Hearing Notice also prominently identified supplemental documents that were concurrently posted on the City’s webpage, notably including a copy of the Rate Study that identifies each parcel to be charged, the amount of the rates, the basis upon which the rate was calculated, and the reason for the change in rates. The Rate Study was included on the City’s webpage, and it is labeled “2025 Water Rate Study Report” (dated September 15, 2025, prepared on behalf of the City by Hildebrand Consulting). The Public Hearing is scheduled for December 2, 2025, for the City of Rohnert Park City Council (“City Council” or “Council”) to consider a recommended update to water rates, in accordance with the requirements of “Proposition 218” (California Constitution Article XIII D, Section 6) for approving increases to “property related fees.” The Proposition 218 hearing process includes the opportunity for property owners to submit a “Written Protest” prior to the close of the public hearing, and the City is prohibited from approving the increase if there is a “majority protest.” There is a “majority protest” if the City receives timely written protests from owners representing more than 50% of the parcels served by City water service. The Public Hearing Notice also provided an opportunity for property owners to submit to the City a “Written Objection” to the proposed rate increases by no later than the identified “deadline” of November 12, 2025, at 5:00 p.m. Any written objection is required to identify the grounds for alleging the City did not comply with Proposition 218. In accordance with “AB 2257,” the City is required to provide a written response at the public hearing for each timely written objection received prior to the deadline (“AB 2257” is Assembly Bill 2257, Chapter 561, Statutes of 2024; codified at Government Code Sections 53759.1 and 53759.2). As of the time of the deadline, the City had received one “Written Objection” (the Bartle letter identified on Exhibit “A,” attached hereto). Therefore, the City has prepared the “Written Response” to the Written Objection as set forth on Exhibit B (attached hereto). The Written Response provides the grounds and substantive bases for which the Response to Written Objections and Protests (2025-11-17) Page 2 of 2 concerns identified in the Written Objection does not result in a justification to amend the proposed increases to water rates, as described in the Notice of Public Hearing. Other than the Written Objection identified above, the City received the five other “Submittals” also identified on Exhibit A from property owners prior to the deadline of November 12, 2025, at 5:00 p.m. The Submittals were identified by the owner as a protest and/or an objection to the proposed update to the water rates. However, none of the Submittals meet the definition of a timely “written objection” (as defined by California Government Code Section 53759.1(c)(4)) since they do not specify the grounds for alleging the proposed water service rates do not comply with the requirements of Proposition 218 (California Constitution Article XIII C, Section 6). Although the City is not legally obligated under AB 2257 to provide a written response to the Submittals, the City provides this written information (including Exhibit B) to explain how the concerns raised in the Submittals do not establish grounds for amending or altering the proposed adjustments to the City’s water rates. As documented on the Notice of Public Hearing, which included documents available on the City website (https://www.rpcity.org/586/Water-Sewer-Rate-Updates-What-to- Know), the City calculated the amount of the proposed water service rates in accordance with Proposition 218 in order to charge each customer the amount needed to pay the proportionate cost of providing water service to each property owner. The City complied with the Proposition 218 requirement that rates be set in an amount proportional to the cost of service attributable to each parcel, as documented in the Rate Study at https://www.rpcity.org/586/Water-Sewer-Rate-Updates-What-to-Know. Conclusions and Recommendations Therefore, City staff recommends that the City Council: (a) consider the substance of the timely written objection and the written response from City staff; and (b) determine the timely written objection does not result in any amendment to or alteration of the proposed water rates, based on the analysis included on the City’s website (notably including the Rate Study) and presented as a part of the public hearing on December 2, 2025, which provides the substantive bases for the City Council’s approval of the water rates as proposed. Exhibit B Written Responses to Timely Written Objections and Submittals 1. Ayat Letter Response: • The City has met its burden of proving that the proposed water rates proportionately recover costs from ratepayers based on the cost to provide service as demonstrated by the 2025 Water Rate Study. • As presented during the City Council meeting of September 23, 2025, the City has documented that the proposed water rates for Rohnert Park continue to be one of the lowest rates among other cities in the region. • The City’s water rates generate revenue to pay for the cost of providing water service. As costs for service continue to increase, the City increases rates in order to continue providing safe, reliable, and efficient operations of the water system for the benefit of all customers. • Finding: This letter does not specify any grounds for alleging the proposed water rates do not comply with Proposition 218, as required by Government Code Section 53759.1. 2. Bartle Letter Response: • While the letter identifies a comparison of past rate structures to the City’s proposed rate structure, the City met its obligations under Proposition 218 to clearly identify the amount of the proposed water rates in the chart identified in the mailed Notice of Public Hearing. The Notice of Public Hearing also included a link to a webpage with additional detailed information, including the 2025 Water Rate Study, as well as a phone number to contact the City if any customer has more questions about how to calculate their bill. • The Rate Study Financial Plan in Section 2 includes an explanation of the costs covered by the fixed monthly service charge for City costs that do not vary based on volume of water used, compared to the Usage Rates for costs that do vary based on volume of water used. The Rate Study also explains the Water Shortage Surcharge Policy at Section 3. • The City carefully maintains its accounts for the revenue received and expenses incurred in providing water service to its customers, and water rate revenue is not used to pay for costs not related to providing water service. • The Rate Study Section 2.10 describes how the City establishes and uses reserve funds, including an Operating Reserve and a Rate Stabilization Reserve. 3. Finding: The City has documented that the proposed water rates comply with the requirements of Proposition 218.Eads Letter Response: • As presented during the City Council meeting of September 23, 2025, the City has documented that the proposed water rates for Rohnert Park continue to be one of the lowest rates among other cities in the region. • Finding: This letter does not specify any grounds for alleging the proposed water rates do not comply with Proposition 218, as required by Government Code Section 53759.1. 4. Henris Letter Response: • The proposed rates will generate revenue that does not exceed the cost of providing water service as set forth in the 2025 Water Rate Study. The City maximizes the efficient and sustainable use of local groundwater supplies, as identified in Rate Study Section 2.6. • The City has transparently and publicly described its intended approach for considering approval of the proposed water rates, including the City Council meeting on August 26, 2025, to approve the Utility Rate Setting Procedures; the City Council meeting on September 23, 2025, to consider the draft Water Rate Study and direct staff to mail the public hearing notice; the mailed notice of public hearing to all customers, which included links to the City’s website with additional information regarding the proposed water rates; and the City Council public hearing on December 2, 2025. • Finding: This letter does not specify any grounds for alleging the proposed water rates do not comply with Proposition 218, as required by Government Code Section 53759.1. 5. Riley Letter Response: • The City has met its burden of proving that the proposed water rates proportionately recover costs from ratepayers based on the cost to provide service. • As presented during the City Council meeting of September 23, 2025, the City has documented that the proposed water rates for Rohnert Park continue to be one of the lowest rates among other cities in the region. That presentation recognized the lower rates from the City of Santa Rosa, while also identifying that Rohnert Park’s rates remain lower than Petaluma, Vallejo, Sonoma, Ukiah, Sebastopol, Cloverdale, Willits, Healdsburg, St. Helena, and Calistoga. • The City water utility actively pursues grant opportunities. • Finding: This letter does not specify any grounds for alleging the proposed water rates do not comply with Proposition 218, as required by Government Code Section 53759.1. 6. Shapiro Letter Response: • The City’s water rates are designed to proportionately recover costs from ratepayers based on the cost to provide service. The first page of the Notice of Public Hearing summarizes the external factors, such as costs of external water supply, drought, and inflation, that have impacted the City’s costs of providing water service that have caused the need to increase rates for those services. • Finding: This letter does not specify any grounds for alleging the proposed water rates do not comply with Proposition 218, as required by Government Code Section 53759.1.