D5. Development Standards. Applies to ADUs that are not exempt from local standards as described in subsection (D)(3)(a) of this section. a. Property development standards. Except as otherwise required by Government Code Section 65852.2, the following shall apply; at a minimum, development of at least one 800 square foot attached or detached ADU shall be permitted on every qualifying lot:
1. Zoning Districts and Placement.
a. ADUs shall be allowed ministerially on lots with proposed or existing singlefamily or multi-family dwellings within the Single-Family Residential (RS), Multi-Family Residential (RM), and Planned Residential Development (PRD) zoning districts. b. ADUs shall be allowed ministerially, proposed as part of, or on lots with existing permitted mixed-use projects which include multi-family dwellings in the Neighborhood Commercial (CN) and General Commercial (CR) zoning districts per Chapter 19.18 of this title, Mixed Use Regulations.
c. ADUs shall not be allowed on lots within the commercial and industrial zoning districts with existing nonconforming residential uses. d. JADUs shall be allowed ministerially on lots with a proposed or existing singlefamily dwelling within the Single-Family Residential (RS), Multi-Family Residential (RM), and Planned Residential Development (PRD) zoning districts. e. ADUs and JADUs shall not be located on or impede an easement area. f. ADUs shall not be located in such a way that would prohibit access to a designated parking area.
g. ADUs and JADUs shall not be prohibited or unreasonably restricted by existing and proposed common interest developments such as homeowner’s associations and associated CC&Rs per Sections 4751, 4740, and 4741 of the Civil Code.
2. Maximum Size and Height Limits.
a. Detached ADUs shall not exceed 1,200 square feet.
b. Attached ADUs shall not exceed 850 square feet in floor area for a one-bedroom or less or 1,000 square feet in floor area for a two-bedroom or more. c. If an attached ADU is proposed within the existing space of an accessory structure, the attached ADU shall not expand the accessory structure by more than 150 square feet in order to accommodate ingress and egress.
d. JADUs shall not exceed 500 square feet in floor area. e. ADUs and JADUs shall not exceed 25 feet in height, unless otherwise specified in this section.
3. Number of Units Allowed.
a. Any combination of (i) (ii) and (iii) below may be allowed with a proposed or existing single-family dwelling.
i. One JADU
ii. One attached ADU
iii. One new construction detached ADU. If proposed to be combined with a JADU and/or attached ADU, the detached ADU shall be no more than 18 feet in height. b. Both (i) and (ii) below may be allowed with an existing multi-family dwelling, or (iii) with a proposed multi-family dwelling.
i. At least one ADU may be allowed within an existing multi-family dwelling, up to 25 percent of the existing multi-family dwelling units if the ADU(s) is located within non-livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages.
ii. Up to eight detached ADUs may be allowed on a lot with an existing multi-family dwelling, provided that the number of ADUs does not exceed the number of existing units on the lot.
iii. Up to two detached ADUs may be allowed on a lot with a proposed multi-family dwelling.
4. i. Placement, Setbacks and Fencing
(A). An ADU may be placed anywhere on a residential lot as long as the placement of the ADU meets all development standards of the underlying zone, except as specifically set forth in this Chapter.
(B)a. The ADUs shall have a minimum of four foot side and rear setbacks that are sufficient for fire and life safety.
b. The minimum front setbacks of the underlying zone apply to a newly constructed shall not preclude the construction of an ADU that is up to 800 square feet in floor area and 16
feet in height if the ADU cannot be feasibly located in the rear or side yard. In all other cases, the minimum front setback of the underlying zoning district shall apply. (C).c. An ADU shall may not violate the minimum distance between buildings standards for the applicable zone.
(D). An attached or detached ADU must have a fence, meeting the requirements for the applicable zone, put in place along the side and rear property lines nearest the structure. (E) No ADU may be located in a way that would prohibit access to a designated parking area or impede safe ingress and egress from a required side, rear, or front setback. (F) No ADU may remove a protected native tree unless the proposed construction complies with the requirements of the Native Tree Protection Ordinance, Municipal Code Chapter 12.32.
(G)d. No change in setbacks shall be required when an ADU is constructed in the same location and to the same dimensions as an existing legal structure that is converted in to an ADU or to a portion of an ADU, even when that structure has been demolished. ii.5. Lot Coverage and Open Space.
a. No lot coverage or open space standard shall be applied that would preclude the construction of an attached or detached ADU that is up to 800 square feet in floor area. For ADUs above 800 square feet in floor area, lot coverage and open space standards shall apply per the underlying zoning district.
(A)b. The open space area on the lot should be commonly accessible to both the main unit and the ADU/JADU, unless otherwise approved by the director., however, this requirement shall not preclude an attached or detached ADU of at least 800 square feet in floor area from being constructed.
iii. Design and Neighborhood Compatibility.
(A). An ADU must be compatible with the design of the surrounding neighborhood and not cause excessive noise, traffic, parking or other disturbance to the existing neighborhood or adversely affect public services and resources, including water supply, fire protection, and sewage disposal.
(B)6. An ADU must meet Objective Design Standards.
(1)a. The ADU/JADU must have an independent exterior entrance separate from the primary dwelling.
b. If a JADU would not include a separate bathroom, interior entry to the shared bathroom within the primary dwelling shall be provided. c. The materials and colors of exterior walls, roof, eaves, windows, and doors as well as the landscaping of an ADU should must match those of the primary dwelling. For detached ADUs larger than 800 square feet in floor area, this shall be required. d. (2) The roof slope of an ADU should must match the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.
For detached ADUs larger than 800 square feet in floor area, this shall be required. (3) The ADU must have an independent exterior entrance separate from the primary dwelling.
iv. Accessory Structures. Except for exempt ADUs described in Section D.3 of this Chapter, an ADU shall not be permitted on a lot zoned for single-family use, in addition to a guest house or similar structure. If an ADU has been approved on the lot a guest house or other occupiable accessory structure may not subsequently be approved unless the ADU is removed.
7. Native Tree Protection. No ADU or JADU application may include the removal of a protected native tree unless the proposal complies with the requirements of the Native Tree Protection Ordinance, Chapter 12.32 of this Title.
8. Parking.
a. Parking requirements for ADUs shall not exceed one parking space per unit or bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway.
However, parking requirements shall not be imposed in any of the following instances:
i. For JADUs
ii. Where the ADU is part of the proposed or existing primary dwelling or an existing accessory structure.
iii. When the ADU is included in an application to create a new single-family dwelling unit or a new multifamily dwelling on the same lot, provided that the ADU or the parcel satisfies any other criteria listed in this paragraph.
iv. Where the ADU is located within one-half mile walking distance of public transit. v. Where the ADU is located within an architecturally and historically significant historic district.
vi. When on-street parking permits are required but not offered to the occupant of the ADU.
vii. When there is a car share vehicle located within one block of the ADU. viii. When the ADU complies with the criteria set forth in Government Code Section 66323.
b. When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU/JADU or converted to an ADU/JADU, replacement parking shall not be required.
6. Restricted Area #1. Due to public safety and traffic flow concerns, ADUs and JADUs are not allowed unless the number of code required off-street parking spaces are provided on-site for all existing or proposed primary residences (single-family and/or multifamily dwelling units) and one off-street parking is provided per unit for all proposed ADUs and JADUs, including garage conversions, in the restricted areas and per the requirements described below:
a. All properties that have vehicular access from:
i. Central Avenue, north of Zaca Street, and south of its intersection with Avenue of Flags
ii. Central Avenue Alley (east of Central Avenue), north of Zaca Street to its northern terminus at 614 Central Avenue and 597 Avenue of Flags. b. All properties that have vehicular access from the following roadways between Central Avenue and Central Avenue Alley:
i. Zaca Street,
ii. State Highway 246
iii. 1st Street
iv. 2nd Street
c. Any property in the above areas that is accessed solely by an unimproved or unpaved road or alley.
d. Off-Street Parking in Restricted Area #1. The following parking regulations govern additional parking requirements for ADUs in the Restricted Area #1.
i. Number of Spaces. In addition to the required parking for the primary residence as specified in the applicable zoning district and in Section 19.04.140 et seq., and a minimum of one parking space shall be provided per ADU, all of which may be covered or uncovered in any configuration on-site,.
ii. Location. The additional parking space may be covered or uncovered and may be provided in setback areas in locations determined by the Zoning Administrator or through tandem parking on an existing driveway, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions.
iii. Replacement Parking. When the parking area for the primary residence is used for an ADU:
(A). Replacement off-street parking is required at a one-to-one ratio and may be provided in any configuration on the lot, including tandem parking, uncovered and on existing driveways,
(B). A conversion ADU that replaces the primary dwelling unit's existing garage shall not cause the applicant to have to construct replacement covered parking for the main unit.
7. Restricted Area #2 – West Highway 246. Due to public safety and traffic flow concerns, ADUs and JADUs are not allowed in the following areas. a. All properties that have vehicular access from:
i. State Highway 246, between Riverside Drive and Industrial Way. b. Any property in the above areas that is accessed solely by private drive aisles, or an unimproved or unpaved road or alley.
8. Restricted Area #3 – Village Specific Plan. Due to public safety and traffic flow concerns, ADUs and JADUs are not allowed in the following areas:
a. All properties that have vehicular access from:
i. North side of State Highway 246, between McMurray Road and Freear Drive ii. East side of McMurray Road, between State Highway 246 and 560 McMurray Road b. Any property in the above areas that is accessed solely by private drive aisles, or an unimproved or unpaved road or alley.
9E. Utilities.
a1. Attached ADUs and JADUs on the same lot as a single-family dwelling built pursuant to Government Code Section 66323(a)(1) shall not be required to install a new or separate utility connection unless constructed concurrently with a new single-family dwelling.
2. Unless otherwise specified, Cconstruction of a new or proposed detached ADU over 750 square feet may require new meter connections for water, electric, and gas service.
Sewer service may be provided through the primary unit's sewer line, provided that the applicant makes a showing that the existing sewer line has sufficient capacity and slope to ensure proper flow strength for the ADU's sewer output. If sufficient capacity and slope cannot be ensured, the an ADU may require a separate sewer line.
b. If new utility connections or meters are required for the ADU, connection and impact fees shall be required, as applicable.
F. Fees. The following fees shall apply:
1. Development Impact Fees.
a. No development impact fees are required for an ADU that is less than 750 square feet in floor area.
b. Any development impact fee that is required for an ADU that is 750 square feet or larger in floor area shall be charged proportionately in relation to the square footage of the primary dwelling unit. “Development impact fee” here does not include any connection fee or capacity charge for water or sewer service.
c. These provisions do not apply to ADUs that are constructed concurrently with a new single-family home.
2. Connection Fees. The following connection fees and/or capacity charges for water and sewer are required:
a. None for an attached ADU or JADU pursuant to Government Code Section 66323(a)(1) or an ADU under 750 square feet.
b. If an ADU is required to have new and separate water or sewer meter connections; the connection fee and capacity charge shall be proportionate to the burden of the ADU based upon its square feet and shall not exceed the reasonable cost of providing the service.
DG. Application for ADU/JADU.
The construction or installation of an ADU/JADU is a ministerial decision as required by State law in accordance with the review and approval scheme set forth in Government Code Sections 66310, et. seq 65852.2 and 65852.22. Ministerial approvals are not subject to review at a public hearing. Construction of an ADU shall be subject to administrative (ministerial) review as follows:
1. Submittal of building plans accompanied by the following forms and information:
a. A completed Project Application Form for ADU or JADU, as applicable, provided by the Planning Department and signed by the owner and applicant (if different from the owner), under penalty of perjury.
b. Materials and information required by the ADU/JADU Application Checklist, provided by the Planning Department.
2. Planning Department shall verify completeness of materials required and determine applicability of any municipal code requirements and reviews. 3. ADU Exemption. As set forth in Government Code section 65852.2(e)(1), certain categories of ADUs shall be permitted without applying local development standards (e.g. limits on lot size, unit size, parking, height, setback, landscaping, or aesthetics) if proposed on a lot developed with one single-family home. ADUs and JADUs eligible for this automatic approval include but are not limited to:
a. An ADU converted from existing space in the home or another structure (e.g. a garage) so long as the ADU can be accessed from the exterior and has setbacks sufficient for fire safety.
b. A new detached ADU that is no larger than 800 square feet, has a maximum height of 16 feet, and has rear and side setbacks of 4 feet. c. A JADU that complies with the requirements of Government Code section 65852.22.
d. One ADU and one JADU may be allowed on a single-family lot as set forth in Government Code section 65852(e)(1)(B).
e. ADUs added to multi-family buildings, in compliance with Government Code section 65852 (e)(1) (C) & (D).
4. ADU Permit. Non-exempt ADUs shall be reviewed for compliance with the Development Standards described in paragraph (C)(5) of this section, except as otherwise set forth herein.
53. Exceptions. The standards and regulations for ADUs/JADUs apply to the accessory dwelling unit only. When the accessory dwelling unit is an integral component of a larger project or when other permits are required that are subject to discretionary review by the Zoning Administrator or Planning Commission, building permits for the accessory dwelling units may be issued concurrently or only after associated approvals for the larger project have been secured.
64. Subsequent to Planning Department review and approval, building plans and applicable permit application(s) shall be submitted to the building department. No ADU/JADU may be constructed until the building department has issued required permits and approvals necessary for the proposed construction.
E. Fees. The following fees shall apply:
1. Development Impact Fees.
a. No development impact fees are required for an ADU that is less than 750 square feet in floor area.
b. Any development impact fee that is required for an ADU that is 750 square feet or larger in floor area shall be charged proportionately in relation to the square footage of the principal dwelling unit. “Development impact fee” here does not include any connection fee or capacity charge for water or sewer service.
2. Connection Fees. The following connection fees and/or capacity charges for water and sewer are required:
a. None for ADUs under 750 square feet.
b. Construction of new or proposed detached ADU over 750 square feet may require new meter connections; the fee shall be proportionate to the burden of the ADU based upon its square feet and shall not exceed the reasonable cost of providing the service.
C. Section 19.16.020 of Chapter of 19.16 of Title 19 of the Buellton Municipal Code is hereby repealed in its entirety:
§ 19.16.020 Accessory dwelling units.
Applicability. Procedures and standards for accessory dwelling units are set forth in Section 19.06.180.
D. Section 19.18.018 of Chapter 19.18 of Title 19 of the Buellton Municipal Code is hereby amended to read as follows:
§ 19.18.018. Development standards.
The following development standards shall apply to all mixed-use projects within the city of Buellton. For each mixed-use project, the development standards that apply are from the primary use (base zone) zoning.
A. General Requirements for All Zoning Districts.
1. The primary use must be consistent with the underlying zoning designation and must be equivalent to 50% or greater of the total floor space.
2. Tentative and final or parcel maps shall be required for all mixed-use projects that include the creation of lots, condominiums, stock cooperatives, community apartments, and planned unit developments, both new and conversion.
3. Mixed-use projects along the Avenue of Flags and certain portions of State Highway 246 within Specific Plan areas are also subject to the development standards contained in the applicable Specific Plan Avenue of Flags/ Highway 246 Urban Design Plan.
4. Mixed-use projects are subject to the design requirements of the Community Design Guidelines.
B. RM (Residential Multi-Family) Zoning District.
Minimum Lot Area 8,000 square feet
Residential Density Pursuant to Section 19.02.120(C)
Height Limit 35 feet
Setbacks Refer to Section 19.04.160 for the measurement of, and exceptions to, setback requirements
Front 10 feet
Side 5 feet
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height
Street Side 10 feet
Rear 10 feet
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height (minimum of 10 feet)
Interior 5 feet between a habitable building and any other building
C. CN (Neighborhood Commercial) Zoning District.
Minimum Lot Area None
Residential Density 8 dwelling units per acre
Height Limit 30 feet
Setbacks Refer to Section 19.04.160 for the measurement of, and exceptions to, setback requirements
Front 5 feet
Side None
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height
Street Side 5 feet
Rear 10 feet
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height (minimum of 10 feet)
Interior None unless required by the California Building Code Parking Areas 5 feet from all property lines
Site Coverage 60% of net site area
Landscaping/Open Space See Section 19.18.022
D. CR (General Commercial) Zoning District—Avenue of Flags Urban Design Area.
Minimum Lot Area None
Residential Density 10 units per acre; density may be increased to 12 units per acre if 60% of the units are 1 bedroom or less
Height Limit 35 feet
Setbacks Refer to Section 19.04.160 for the measurement of, and exceptions to, setback requirements
Parking Areas 15 feet from street property line, 5 feet from all other property lines
Site Coverage 50% of net site area
Landscaping/Open Space See Section 19.18.022
Front First floor, none; second floor, 5 to 10 feet (a minimum of 25% and a maximum of 40% of the frontage shall be at 5
feet); third floor, 10 to 15 feet (a minimum of 25% and a maximum of 40% of the frontage shall be at 10 feet)
Side None
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height
Street Side Avenue of Flags Urban Design Area: first floor, none; second floor, 5 to 10 feet (a minimum of 25% and a maximum of
40% of the frontage shall be at 5 feet); third floor, 10 to 15 feet (a minimum of 25% and a maximum of 40% of the
frontage shall be at 10 feet)
Rear 10 feet
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height (minimum of 10 feet)
Interior None unless required by the California Building Code Parking Areas 5 feet from all property lines
Site Coverage 60% of net site area
Landscaping/Open Space See Section 19.18.022
ED. CRS (General Service Commercial) Zoning District—Outside of Avenue of Flags Urban Design Specific Plan Areas.
Minimum Lot Area None
Residential Density 8 dwelling units per acre
Height Limit 30 feet
Setbacks Refer to Section 19.04.160 for the measurement of, and exceptions to, setback requirements
Front First floor, 15 feet; second floor, 15 to 20 feet (a minimum of 25% and a maximum of 40% of the frontage shall be at 15 feet); third floor, 20 to 25 feet (a minimum of 25% and a maximum of 40% of the frontage shall be at 20 feet)
Side None
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height
Street Side First floor, 10 feet; second floor, 10 to 15 feet (a minimum of 25% and a maximum of 40% of the frontage shall be at 10 feet); third floor, 15 to 20 feet (a minimum of 25% and a maximum of 40% of the frontage shall be at 15 feet)
Rear 10 feet
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height (minimum of 10 feet)
Interior None unless required by the California Building Code Parking Areas 5 feet from all property lines
Site Coverage 60% of net site area
Landscaping/Open Space See Section 19.18.022
FE. CS (Service Commercial) Zoning District.
Minimum Lot Area None
Residential Density 8 units per acre, subject to Section 19.18.028 Height Limit 40 feet
Setbacks Refer to Section 19.04.160 for the measurement of, and exceptions to, setback requirements
Front 10 feet
Side None
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height
Street Side 10 feet
Rear 10 feet
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height (minimum of 10 feet)
Interior None unless required by the California Building Code Parking Areas 5 feet from all property lines
Site Coverage 60% of net site area
Landscaping/Open Space See Section 19.18.022
GF. M (Industrial) Zoning District.
Minimum Lot Area None
Residential Density 8 dwelling units per acre, subject to Section 19.18.028
Height Limit 45 feet
Setbacks Refer to Section 19.04.160 for the measurement of, and exceptions to, setback requirements
Front 10 feet
Side None
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height
Street Side 10 feet
Rear 10 feet
Exception: mixed-use projects adjoining an R-1 zone shall provide one-half foot of setback for each foot of building height (minimum of 10 feet)
Interior None unless required by the California Building Code Parking Areas 5 feet from all property lines
Site Coverage 60% of net site area
Landscaping/Open Space See Section 19.18.022
E. Section 19.18.024 of Chapter 19.18 of Title 19 of the Buellton Municipal Code is hereby amended to read as follows:
§ 19.18.024. Performance standards.
A. CC&Rs are required for all mixed-use projects and shall include provisions notifying future residential tenants and owners of the potential noise and nuisance impacts of living in a mixed-use project.
B. Outdoor Lighting. Outdoor lighting shall be shielded in a manner that prevents a direct line between its luminary and any residentially zoned or residentially developed parcel.
Within 50 feet of a residentially zoned parcel, lighting shall be installed no higher than 20 feet above the ground directly below the light fixture. Outdoor lighting shall not exceed the following levels:
1. One-half foot-candles at the property line if the subject property abuts a residential zoning district.
2. Two foot-candles at the property line if the subject property abuts a nonresidential zoning district.
C. Glare and Heat. Glare and heat from arc welding, acetylene torch cutting, or similar processes shall be contained within a completely enclosed and vented building.
D. Odors. The odors released from any operation or activity shall not exceed detectable concentrations beyond any lot lines. Commercial or industrial uses with attached residential units provide state-of-the art ventilation systems to prevent odors from penetrating the attached residential units.
E. Vibration. No use, activity, or process shall produce vibrations that are perceptible without instruments at the property line for more than three minutes in any one hour of the day between the hours of 8:00 a.m. and 9:00 p.m. No use, activity, or process shall produce any vibrations between the hours of 9:00 p.m. and 8:00 a.m.
F. Hours of Operation. Unless otherwise approved through a Development Plan, the hours of operation for any commercial or industrial component of a mixed-use project with a residential component, except live-work/work-live units, shall not begin before 7:00 a.m. or continue after 9:00 p.m. These hours of operation shall include other activities directly related to the operation of the commercial or industrial component, including, but not limited to, deliveries and cleaning activities. Projects within Specific Plan areas the Avenue of Flags Urban Design Area are exempt from the time limitations of this section, and hours of operation for these projects should be considered on a case-by-case basis. except that deliveries and cleaning activities shall not occur before 6:00 a.m. or after midnight. However, normal indoor cleaning functions are not subject to these time limitations.
G. All work shall be performed entirely indoors unless otherwise approved through the development plan. Any outdoor work allowed through a development plan shall not be performed in designated parking areas, drive aisles, or landscape areas. All approved outdoor work areas shall not be counted as required open space or landscaping.
H. Flammable, Explosive, and Combustible Materials. The use or storage of flammable, explosive, or combustible materials shall at all times comply with the adopted Uniform Fire Prevention Code, California Building Code, and all other applicable adopted ordinances or regulations of the city of Buellton, county of Santa Barbara, state of California, and the federal government.
I. Noise. All mixed-use projects shall comply with the adopted noise regulations of the city of Buellton.
J. Staircases. All stairways that connect adjacent levels, stories or floors shall be provided with an intermediate landing at the mid-height level and shall otherwise comply with all other applicable building code provisions in effect at the time of submittal application.
Alternatively, elevators may be provided.
K. Three-bedroom Units. A maximum of five percent of the dwelling units may be three-bedroom units. Percentagesshall be rounded to the nearest whole number. Four-bedroom and more units are prohibited.
SECTION 3. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, the holding shall not affect the validity or enforceability of the remaining provisions, and the Council declares that it would have adopted each provision of this ordinance irrespective of the validity of any other provision.
SECTION 4. The City Clerk is directed to: (i) certify this Ordinance and cause it to be published in the manner required by law.; (ii) make typographical, grammatical and similar corrections in the final text of the Ordinance so long as such corrections do not constitute substantive changes in context; and (iii) cause the Buellton Municipal Code to be reprinted by deleting language contained within Section 2 of this Ordinance that is stricken and adding language that is double underlined.
PASSED, APPROVED AND ADOPTED this ____ day of May, 2025.
_______________________________
David Silva
Mayor
ATTEST:
____________________________
Linda Reid
City Clerk
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
February 17, 2022
Cara (Meche) Miralles, Assistant Planner
City of Buellton
331B Park St.
PO Box 1819
Buellton, CA 93427
Dear Cara Miralles:
RE: Review of City of Buellton’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, § 65852.2)
Thank you for submitting the City of Buellton’s (City) accessory dwelling unit (ADU) ordinance (Ordinance No. 20-03) (“Ordinance”), adopted March 26, 2020, to the California Department of Housing and Community Development (HCD). The Ordinance was received on October 25, 2021. HCD has reviewed the Ordinance and is submitting these written findings pursuant to Government Code section 65852.2, subdivision (h).
HCD has determined that the Ordinance does not comply with section 65852.2 in the manner noted below. Under the statute, the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than March 20, 2022.
The adopted ADU ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law in the following respects:
• Section 1 (D)(3); Section 19.06.180 (C)(5)(a)(iv); Section 19.06.180 (C)(6)-(8) – Restricted Areas – The Ordinance has prohibited ADUs in certain residential areas, citing concerns about traffic congestion and a lack of parking. The Ordinance restricts ADUs and junior accessory dwelling units (JADUs) in the Central Avenue area to lots where an off-street parking space can be provided for both the primary dwelling and the proposed ADU, and the Ordinance entirely prohibits ADUs and JADUs in the Highway 246 West and Village Specific Plan areas. The problems cited for each restricted area are that “increased congestion caused by residents of potential new accessory dwelling units and their vehicles parked off site would… hinder traffic flow, exacerbate conflicts between pedestrians and vehicles, and cause delays in emergency response to homes in the area.” However, Government Code section 65852.2, subdivision (d)(1), states that parking standards shall not be imposed when “the accessory dwelling unit is
located within one-half mile walking distance of public transit”. All cited restricted areas are within a half-mile walk to a bus stop. Therefore, parking is not required to be provided in in these areas. HCD does not accept the provided concerns about traffic flow and parking as grounds suitable to establish restricted areas.
Until the City provides detailed analysis on the traffic flow and HCD accepts that analysis, the City may not constrain ADUs in certain designated areas. The City should revise the Ordinance to remove references to restricted areas. • Section 19.06.180 (B) – Efficiency Kitchen – The Ordinance defines an efficiency kitchen to include a food preparation counter with an area of at least 15 square feet, and food storage cabinets with a minimum of 30 square feet of shelf space.
However, Government Code section 65852.22, subdivisions (a)(6)(A) and (B), only require that an efficiency kitchen include a food preparation counter and storage cabinets that are “of reasonable size” in relation to the size of the JADU.
As written, the size requirements in the Ordinance act as a constraint for JADUs and are inconsistent with Government Code section 65852.22, subdivisions (a)(6)(A) and (B). The City should remove the kitchen size requirements. • Section 19.06.180 (C)(3) – Separate conveyance – The Ordinance prohibits the separate conveyance of an ADU or JADU. However, Government Code section 65852.26 allows for the separate conveyance of an ADU if it meets all the requirements listed in subdivision (a) of the statute. The Ordinance should be amended to allow for such a conveyance.
• Section 19.06.180 (C)(5)(a)(i)(E); 19.06.180 (C)(5)(a)(iii)(A) – Subjective Design Standards – The Ordinance prohibits an ADU from being “located in a way that would ...impede safe ingress from a required side, rear, or front setback.” It further requires that an ADU “be compatible with the design of the surrounding neighborhood and not cause excessive noise, traffic, parking, or other disturbance to the existing neighborhood or adversely affect public services and resources.” Although an adopted ADU Ordinance may allow a local agency to develop or establish certain objective development standards, those standards may not exceed standards contained within ADU statute or impede the creation of ADUs.
Terms such as “impede safe ingress”, “compatible”, “excessive noise”, and “adversely affect” are subjective terms. Government Code section 65852.2, subdivision (a)(4), requires that jurisdictions “provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units….” Such subjective terms therefore violate state statute. Furthermore, Government Code section 65852.2, subdivision (a)(6), states that “no additional standards, other than those provided in this subdivision, shall be used or imposed.” Neighborhood compability, noise concerns and “other disturbances” do not fall in statute. Therefore, the City should remove these sections. • 19.06.180 (C)(5)(a)(i)(D) – Fence – The Ordinance requires that a fence be constructed specifically for the ADU along the side and rear property lines. It is
unclear as to whether such a fence is required for the primary structure, and if such a determination is not part of the general building standard, then it is considered violative of Government Code section 65852.2, subdivision (a)(6). The City should inform HCD whether this requirement exists in the general building standard; if it does not, then the requirement should be removed. • 19.06.180 (C)(5)(a)(ii) – Open Space Requirement – The Ordinance requires that “the open space area shall be commonly accessible to both the main unit and the ADU unless otherwise approved by the director.” However, the City does not elaborate on how the director would approve such a design element exception, creating the possibility for a subjective review and administrative burden.
Government Code section 65852.2, subdivision (a)(4), states that “[a]n existing ordinance governing the creation of an accessory dwelling unit by a local agency or an accessory dwelling ordinance adopted by a local agency shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units.” Furthermore, such a requirement could also unlawfully prevent an 800 square-foot ADU from being built on a lot.
Local development standards provided by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), do not apply to ADUs created under subdivision (e), and therefore such local development standards cannot prevent the development of an 800 square-foot ADU with a height limit of 16 feet and four-foot setbacks as noted in subdivision (e)(1)(B). The City should clarify this requirement, changing “shall” to “should”, and add the clause, “However, no local design standard, such as the open space access requirement, shall preclude an accessory dwelling unit of at least 800 square feet with a height limit of 16 feet and four-foot setbacks from being constructed.”
• Section 19.06.180 (C)(5)(a)(iv) – Accessory Structure – The Ordinance states that “except for exempt ADUs described in Section D.3 of this Chapter, an ADU shall not be permitted on a lot zoned for single-family use, in addition to a guest house or similar structure.” This is impermissible. Government Code section 65852.2, subdivision (a)(6), states that “no additional standards, other than those provided in this subdivision, shall be used or imposed….” The prior existence of another accessory structure on a lot cannot preclude the development of an ADU built under Government Code section 65852.2, subdivision (a). Therefore, the City should remove this reference.
• 19.06.180 (D)(1/2/3/5) – Application Procedure – The Ordinance currently has a process in place for ADU approval, including a “Project Application form” and an “ADU/JADU Application Checklist,” and the requirement that “associated approvals” be secured “when other permits are required that are subject to discretionary review by the Zoning Administrator or Planning Commission.” However, Government Code section 65852.2, subdivision (a)(4), requires “only ministerial provisions for the approval of accessory dwelling units….” While it is
certain that the discretionary review of a Zoning Administrator or Planning Commission is prohibited, it is unclear whether the “Project Application Form,” “ADU/JADU Application Checklist,” and “associated approvals” are indeed objective in order to satisfy subdivision (a)(4). Furthermore, Government Code section 65852.150, subdivision (b), requires that “requirements [for ADUs] are not so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of homeowners to create accessory dwelling units.” HCD requests a copy of the Project Application Form and ADU/JADU checklist for our review to ensure that such forms are sufficiently objective and not so burdensome as to violate Government Code section 65852.150, subdivision (b). Therefore, the City should remove the requirement that ADUs receive additional approvals that may be subject to discretionary review.
• 19.06.180 (D) (3) – ADU Exemption – The Ordinance sets out that “certain categories of ADUs shall be permitted without applying local development standards… if proposed on a lot developed with one single-family home.” However, Government Code section 65852.2, subdivision (a)(1) states that jurisdictions “provide for the creation of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use,“ not just those “proposed on a lot developed with one single-family home.” The Ordinance should include ADUs on lots proposed to be developed with a single-family home, as well as lots with an existing multifamily or single family home. The City should amend the language accordingly.
In these respects, revisions are necessary to comply with statute.
HCD will consider any written response to these findings, such as a revised ordinance or a detailed plan to bring the Ordinance into compliance with law by a date certain, before taking further action authorized pursuant to Government Code section 65852.2. Please note that HCD may notify the Attorney General’s Office in the event that the City fails to take appropriate and timely action under section 65852.2, subdivision (h).
HCD appreciates the City’s efforts in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law.
Please contact Mike Van Gorder, of our staff, at (916) 776-7541 or at [email protected] if you have any questions or would like HCD’s technical assistance in these matters.
Sincerely,
David Zisser
Assistant Deputy Director
Local Government Relations and Accountability
CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 10
To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: May 8, 2025
Subject: Deep Dive: Discussion of Visitors Bureau Activities ______________________________________________________________________________
BACKGROUND
The Buellton Visitors Bureau is a contract service provided to the City by the Buellton Chamber of Commerce. The function of the Visitors Bureau is to promote Buellton as a tourist destination, thereby enhancing the success of the businesses within the City and therefore, the success of the City as well. This promotion takes a number of forms, and has been quite successful in generating and maintaining visitor traffic to the City, often taking the form of hotel stays and other commercial activities.
As our Deep Dive topic this month Kathy Vreeland, Executive Director of the Buellton Visitors Bureau, will present a report on the current status of the Visitors Bureau and its activities. This is a purely informational agenda item, and no action is requested of the City Council at this time.
RECOMMENDATION
That the City Council receive the presentation from the Visitors Bureau and discuss as appropriate.
CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 11
To: The Honorable Mayor and City Council
From: Rose Hess, Public Works Director
Meeting Date: May 8, 2025
Subject: Discussion Regarding Pet Waste/Disposal
______________________________________________________________________________
BACKGROUND
City Council directed staff to bring back a discussion item regarding pet waste disposal and clean-up. At one of the town hall meetings, residents brought up concerns regarding pet waste found along walks through neighborhoods. Pet waste and clean-up is also a common concern reported to staff, frequently around west Highway 246 and Via Corona.
The City has installed pet waste bag dispensers at all City parks, and at the corner of Via Corona/Riverview Drive. There are 2 pet waste bag dispensers on the west side of the city along Highway 246 (one north side and one south side), which are maintained by the Buellton Veterinary Clinic. However, trash cans are only provided at the City parks and on Ave of Flags.
Over the past decade, staff has held two different public outreach campaigns targeting dog owners within the City to address pet waste, clean-up and proper disposal. Both programs worked with local pet stores (and feed stores), veterinary offices and the Humane Society.
The goal from this outreach, and communication to the public has been to enforce responsible pet ownership and community pride and to help keep our waterways clean (pet waste is a pollutant). Pet owners are responsible for cleaning up after their pets during walks and it is important to help keep our community clean.
Currently, the City’s landscape contractor empties the trash receptacles when they are working on the landscape. Placement of additional trash receptacles would require additional clean-up by our contractors. Outside of parks, placement of additional receptacles may be problematic due to the lack of space to place them without obstructing sidewalks or encroaching into private property.
The following are a few pertinent sections of the City’s Municipal Code which address pet waste:
§14.08.010 - It is unlawful for any person to place, deposit, or permit to be deposited in an unsanitary manner upon public or private property within the city, or in any area under the jurisdiction of the city, any human or animal excrement, garbage or other objectionable waste.
§12.28.210 (B) - It shall be the mandatory duty of all persons owning, possessing, in control of, or otherwise responsible for a dog, cat, or an equine animal in a park to promptly collect, pick up, and removal all fecal matter left behind by said animal in or upon any park; provided, however, that this subsection shall not apply to guide dogs for blind or disabled persons or to equine animals on bridle paths.
Under “defined public nuisances” excessive accumulation of animal waste may reasonably be covered by this section:
§8.04.030 (B8) - Hazardous Substances. The improper maintenance of any substance which because of its quantity, concentration or physical, chemical or infectious characteristics may either cause or substantially contribute to an increased risk of death or serious illness or otherwise pose a significant present or potential hazard to human health or the environment including any hazardous substance that is likely to or actually flows or seeps onto any public street or other public or private property.
For fines and punishments:
§1.28.040-070 - Outlines that any violation of the Municipal Code is either a misdemeanor or infraction. The City, through the City Attorney, has the right to prosecute violations as a misdemeanor in the name of the People of the State of California, which can lead to a fine of not more than $1000 and/or imprisonment for up to six months. Otherwise violations can be punished as infractions which can be punished by:
1. A fine not exceeding $100 for a first violation.
2. A fine not exceeding $200 for a second violation of the same code section within one year.
3. A fine not exceeding $500 for each additional violation of the same code section within one year.
§6.04.010 - we adopt Chapter 7 of the Santa Barbara County Code
Santa Barbara County Code chapter 7, article I, section 7-9 No person owning or having custody or control of any animal shall knowingly or through failure to exercise due care or control permit such animal to defecate or commit any other nuisance, and allow such nuisance to thereafter remain on any beach, in any public park, or other public property, upon the sidewalk or parkway of any street, or upon any private property which is improved or occupied, without the consent of the owner or person in lawful occupation thereof. A person shall not be considered in violation of this Section if the person has the necessary equipment, i.e., shovel, bag, etc., readily available and does take immediate and necessary action to accomplish the removal of such nuisance.
It shall be unlawful for any person to own or maintain any cage, hutch, aviary, place, property or area in which any animal is kept in an unsanitary manner due to the accumulation of feces, urine, uneaten food or other matter that is harmful to the health, safety or welfare of the animal, other-animals or any human being. Any feces, uneaten food, or other matter that emits an offensive odor or encourages the breeding of flies or other insects shall be collected daily, not be allowed to accumulate and shall be properly disposed of.
FISCAL IMPACT
Discussion of this topic does not create a fiscal impact.
RECOMMENDATION
That the City Council discuss the issues and concerns regarding pet waste, clean-up and proper disposal and provide direction to staff as necessary.
CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 12
To: The Honorable Mayor and City Council
From: Rose Hess, Public Works Director
Meeting Date: May 8, 2025
Subject: Receive the Final Draft of the 2025 Water and Sewer Rate Study and Approval of the Proposition 218 Notice of Public Hearing for Water and Wastewater Rates
______________________________________________________________________________
BACKGROUND
On April 24, 2025, Willdan Financial presented a workshop to the City Council and public regarding the 2025 Water and Sewer Rate Study. A copy of the presentation can be found on the City’s website at:
https://www.cityofbuellton.com/files/News%20&%20Notices%20PW/Buellton%20Rate %20Study%20Presentation%20-%20v2.pdf
The water and sewer rate study provides a comprehensive analysis that will ensure that the cost of service will not exceed either the cost of providing the service or the proportional cost of the service attributable to a particular parcel. Attachment 1 is the official Draft 2025 Water and Sewer Rate Study with the recommended proposed rates for monthly water and sewer and proposed connection fees. The recommendations from the Study include a 5- year monthly water and sewer rate path.
The Rate Study Goals and Objectives are:
• Evaluate financial health and stability of water and sewer utilities • Develop 5-year financial plan for both
• Provide funding for current and future operations, maintenance, capital projects, debt repayment on Capital Lease
• Maintain adequate Operating & Capital reserves
• Develop equitable, cost-based rate structure
• Ensure proposition 218 compliance – Cost of Service (COS) based rates; public notice, hearing and protest procedures
Pursuant to Proposition 218 requirements, the City must mail information regarding the proposed rates to every property owner. Attachment 2 is the Draft Proposition 218 Public Hearing Notice, which will be mailed to all property owners/water and sewer customers.
Additional outreach will include coordination with the Chamber of Commerce to distribute information to businesses within the City and including additional notices to customers through the water bills.
A public hearing must then be held 45 days after the mailing. During this time, the City may receive written protests by the affected property owners. After the public hearing, Council may vote to adopt the recommended rates. The Public Hearing is tentatively scheduled for July 10, 2025.
The following is the tentative schedule for the Proposition 218 process:
• City Council Receive Draft Study and Approve Prop 218 Notice – May 8, 2025 • Notices mailed to Property Owners – May 22, 2025
• City Council Public Hearing to Consider Protests – July 10, 2025 • City Council Adopts Rate Resolution – July 10, 2025
• Rates Effective – August 1, 2025 for FY 25/26 Increase - July 1, 2026 for FY 26//27 Increase
- July 1, 2027 for FY 27/28 Increase
- July 1, 2028 for FY 28/29 Increase
- July 1, 2029 for FY 29/30 Increase
FISCAL IMPACT
The Water and Sewer Rate Study has been budgeted for FY 24/25 and is a shared cost between Water and Sewer Funds. Costs for conducting the Proposition 218 process is included in the FY 24/25 Water and Sewer budgets. The water/sewer fund revenues are expected to increase with adoption of the rate study.
RECOMMENDATION
Staff recommends that the City Council a) receive the Final Draft of the Water Rate Study and the Sewer Rate Study; b) approve the Prop 218 Notice of Proposed Water and Wastewater Rates and authorize mailing to property owners; and c) set the Public Hearing for July 10, 2025.
ATTACHMENTS
Attachment 1 – Draft 2025 Water and Sewer Rate Study
Attachment 2 – Draft Public Hearing Notice
City of Buellton, CA
Comprehensive Water & Sewer
Utility Rate Study
Report
TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................... i Section 1 – Executive Summary...........................................................................................................1
1.1 Introduction.........................................................................................................................................1
1.1.1 Water System Background.....................................................................................................1
1.1.2 Sewer System Background.....................................................................................................1
1.1.3 Rate Study Background ..........................................................................................................2
1.2 Overview of the Rate Study Process............................................................................................2
1.3 Summary of Proposed Rates..........................................................................................................4 Section 2 – Revenue Sufficiency Analysis ..........................................................................................7
2.1 Financial Planning Principles..........................................................................................................7
2.2 Existing Rates.......................................................................................................................................7
2.3 Revenue Sufficiency Process .......................................................................................................10
2.3.1 Budget........................................................................................................................................10
2.3.2 Capital Improvement Plan (CIP) ........................................................................................10
2.3.3 Debt Service .............................................................................................................................12
2.3.4 Gross and Net Revenue Requirement ..............................................................................12
2.4 Customers & Billable Flows............................................................................................................13
2.4.1 Customer Billing Analysis........................................................................................................13
2.5 Financial Projections Under Existing Rates................................................................................14 Section 3 – Cost-of-Service (COS) Analysis .....................................................................................17
3.1 General ..............................................................................................................................................17
3.2 Water Cost-of-Service....................................................................................................................17
3.2.1 Peaking Factors .......................................................................................................................17
3.2.2 Functional Unbundling of Revenue Requirements........................................................19
3.2.3 Classification of Water System Costs.................................................................................20
3.2.4 Allocation to Customer Classes and Unit Cost Development....................................21
3.2.5 Rate Design by Unit Cost.......................................................................................................23
3.2.6 Cost-of-Service and Revenue Check ...............................................................................28
3.3 Sewer Cost-of-Service....................................................................................................................29
3.3.1 Functional Unbundling of Revenue Requirements........................................................29
3.3.2 Classification of Revenue Requirements..........................................................................30
3.3.3 Allocation to Customer Classes and Unit Cost Development....................................31
3.3.4 Cost-of-Service and Revenue Check ...............................................................................33 Section 4 – Proposed Test Year Rates ...............................................................................................35
4.1 General ..............................................................................................................................................35
4.2 Typical Monthly Bill Comparison..................................................................................................38
4.3 Rate Comparison with Other Utilities .........................................................................................40 Section 5 – Projected Operating Results ..........................................................................................42
5.1 General ..............................................................................................................................................42
5.2 Projected User Rate Revenues....................................................................................................42
5.3 Debt Service Coverage ................................................................................................................47
5.4 Summary of Projected Operating Results ................................................................................48 Section 6 – Conclusions and Recommendations ............................................................................50
6.1 Disclaimers...............................................................................................................................................50
6.1.1 General Disclaimer .................................................................................................................50
6.1.2 Municipal Advisory Disclaimer.............................................................................................50
6.2 Conclusions.......................................................................................................................................51
6.3 Recommendations.........................................................................................................................52
Section 1 – Executive Summary
1.1 Introduction
Willdan Financial Services (Willdan) is pleased to submit to the City of Buellton (City) the Water and Sewer Rate Study report (Report) for your consideration. Willdan has completed the study of the City’s water and sewer rates and summarized the results of the investigations, analyses, and conclusions in this Report.
1.1.1 Water System Background
The City currently has four (4) wells as part of the water supply system: three (3) shallow wells in the Santa Ynez Underflow and one (1) in the Buellton Uplands. The City also has two additional wells, located in the Santa Ynez Underflow. However, both wells are used solely for irrigation purposes for the Zaca Creek Golf Course and for hillside/field irrigation at the “Willemsen Ranch”.
The City is also a participant of the State Water Project through the Central Coast Water Authority (CCWA). CCWA owns and operates water treatment facilities and a pipeline that delivers water from the State Water Project to the project participants in Santa Barbara and San Luis Obispo Counties. The City has one (1) turn-out from the CCWA pipeline that delivers water directly to the City’s distribution system.
The City of Buellton’s water is supplied by groundwater and supplemented by the State Water Project when necessary. The City’s groundwater basins are informally managed by the Santa Ynez River Water Conservation District. The City contributes to the replenishment of groundwater by discharging secondary treated effluent into infiltration basins from the City’s wastewater treatment plant.
The City also has two water treatment facilities. The McMurray Water Treatment Plant, which treats water pumped from the three wells in the Santa Ynez River Underflow; and The City’s 246 Water Treatment Plant, which treats water pumped from the one well located in the Buellton Uplands.
1.1.2 Sewer System Background
The sewer collection system consists of approximately twenty (20) miles of pipelines and is predominantly clay pipe. Most of the sewer collection system consists of gravity pipelines, which vary in size from six (6) to fifteen (15) inches in diameter, and there are approximately 850 feet of force mains. There are two (2) public sewer lift stations located in the City's service area, which are operated by City Staff and maintained through contracted services. The two lift stations are identified as Riverview Park Lift Station and Zaca Creek Golf course lift station. Maintenance access to the gravity sewers is provided by 379 manholes and several structures, such as cleanouts and inspection holes. The collected wastewater is conveyed
to the City’s wastewater treatment plant for treatment and disposal. The current wastewater treatment plant has a rated capacity of 0.65 million gallons per day (MGD).
1.1.3 Rate Study Background
The City has focused a significant amount of attention and effort on strategic planning measures in all areas of utility operations to ensure that it is able to maintain critical utility infrastructure, provide a stable and well-functioning water system that delivers uninterrupted service to its customers, and so that it remains prepared for the future. As part of its ongoing strategic planning efforts, the City commissioned Willdan to perform a water and sewer rate study to analyze the revenue sources and expenditures of the water and sewer utility systems and provide recommendations for proposed rate and/or rate structure adjustments to meet the financial and administrative goals and objectives of the City. The primary objectives of the rate study include:
➢ Full recovery of costs related to utility operations (i.e., operating and maintenance costs, debt, and other expenditure requirements);
➢ Cost-based rate structures;
➢ Consistency with American Water Works (AWWA) and Water Environment Federation (WEF) guidelines;
➢ Equity among customer classes;
➢ Meeting substantive and procedural Proposition 218 requirements; ➢ Administrative efficiency (i.e., easy to understand and implement); and ➢ 5-Year capital funding plan.
1.2 Overview of the Rate Study Process
This study includes the development and presentation of a pro-forma water and sewer financial plan for a 5-year planning period, as well as the development of cost-based rates through a cost-of-service and rate design analysis. Utility rates must be set at a level such that operating, maintenance, debt, and capital expenses are funded with the revenues received from customers. In addition, the revenues generated from utility rates must only be used for this purpose and for each system separately. This is a significant point, as failure to achieve the revenues needed can lead to unacceptable service levels and inadequately maintained facilities. Therefore, a rate study typically consists of the following three interrelated analyses:
I. Financial Planning/Revenue Requirement Analysis: Creates a five-year plan to support an orderly, efficient program of on-going maintenance and operating costs, capital improvement and routine system component replacement activities. In addition, the plan should fund and maintain appropriate reserve
balances based on industry standards, as well as the City’s fiscal policies and specific needs.
II. Cost-of-Service Analysis: Identifies and apportions annual revenue requirements (i.e., expenditures) to operational and functional cost components based on the demand placed on the utility system. The purpose of this analysis is to develop rates that generate revenues relatively proportionate to the share of each utility’s costs. This objective is consistent with industry standards as well as the requirements of Proposition 218 (Prop 218).
III. Rate Design: Develops an equitable and proportionate fixed/variable schedule of rates for the City’s customer base. The policy objectives are coordinated with Prop 218 requirements and cost-of-service objectives to achieve a balance between customer equity and financial stability goals. The balance of fixed and variable charges considers the need for a stable revenue source (the fixed charge) and accounts for customers placing higher costs on the system (through higher water and sewer use) by incurring a higher bill reflective of their impact on the system (the variable component).
This rate study utilizes generally accepted rate-making principles and standards established by industry experts such as the AWWA in its “M1 - Principles of Water Rates Fees and Charges” manual and WEF in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27”. The principles established by these entities are used as guidelines in the development of the proposed rates for water and sewer. A discussion of some of the key principles of ratemaking is presented in the following subsection of this Report.
Rate Design Analysis
Considers both the level and structure of the rate design to collect the appropiate and targeted level of revenues.
Cost of Service Analysis
Allocates the revenue requirements to the fixed/variable cost components based on cost of service.
Revenue Requirement Analysis
Compares the revenues to the expenses of the utility
to determine the overall rate adjustment required.I
1.3 Summary of Proposed Rates
The rate study methodology applied in the development of updated water and sewer rates, outlined in this Report, consisted of reviewing the historical operating results of the water and sewer utility systems, analyzing the budget to identify the net revenue requirements to be recovered from user rate revenues, performing general cost-of-service allocations based on the rate components and functional cost categories, and revising the rates based on the applicable costs and expenditures to be recovered from user rates. In addition, an analysis of the system customers and usage characteristics was performed to identify the rate determinants since they drive the recommended rates, which are the primary source for generating revenues. The allocated revenue requirements were utilized in conjunction with the rate determinants and rate structure to develop the proposed water and sewer rates.
The findings and conclusions of the rate analysis, as well as the resulting rate recommendations, were utilized to develop a projection of future operating results for a 5- year planning period from Fiscal Year (FY) 2026 (beginning July 1, 2025) through FY 2030 (ending June 30, 2030), herein referred to as the “Projection Period”. The purpose for developing the 5-year projections is to demonstrate the financial capability of the water and sewer revenues to support system operations and fund planned capital improvements. The analyses, findings and accompanying recommendations are presented in the subsequent sections of the Report.
The water and sewer rate analyses described in the Report are performed based on the general guidelines of the defined objectives, as well as common industry standards for setting utility rates. In addition to focusing on these major objectives, the rate analyses performed herein will consider other factors in designing rates. As will be discussed in detail later in the Report, such other rate considerations generally include sensitivity to the impact on existing customers, the relative comparability with neighboring utilities and the City’s existing rate structure. The proposed water and sewer rates for assumed implementation effective August 1, 2025 (or other such date as determined by the City) for FY 2025/26 (FY 2026, herein referred to as the “Test Year”) are provided in Tables 1 and 2, respectively. The existing rates are provided in Tables 3 and 4, respectively.
Table 1 – Proposed Monthly Water Rates
Monthly Fixed Charge:
5/8 - 3/4 Inch $ 39.81
1.0 Inch $ 99.53
1.5 Inch $ 199.05
2.0 Inch $ 318.48
3.0 Inch $ 597.15
4.0 Inch $ 995.25
6.0 Inch $ 1,990.51
8.0 Inch $ 3,184.81
Hydrant $ 318.48
Additional Dwelling Units [1] $ 39.81
Monthly Fixed Charge - Sprinklers:
4.0 Inch $ 14.49
6.0 Inch $ 28.99
8.0 Inch $ 46.38
Volumetric Rates Per 100 Cubic Feet:
Residential, Commerical, Industrial, and City $ 3.41
Hydrant $ 5.11
Notes:
Description Rate
[1] All "Additional Dwelling Units" will be billed at the 5/8- 3/4 inch meter rate per dwelling unit.
Table 2 – Proposed Monthly Sewer Rates
Description Rate
Monthly Fixed Charge [1]:
Single Family Dwelling $ 58.96
Multiple Dwelling $ 42.54
Multi Family - Townhomes & Condos $ 42.54
Multi Family - Apts $ 42.54
Multi Family - Per Additional Unit $ 42.54
Mobile Home Parks $ 46.62
Mobile Home Parks - Per Additional Unit $ 46.62
Motels - Service $ 33.80
Restaurant - Service $ 33.80
Fast Food/Bar - Service $ 33.80
Theaters/Banquet - Service $ 33.80
Camper/Trailer Parks (Unmetered) $ 33.80
Camper/Trailer Parks - Per Additional Space $ 33.80
Camper/Trailer Parks (Metered) $ 33.80
Schools $ 33.80
Churches (w/o School) $ 33.80
Other Commercial - Retail $ 33.80
Industrial Accounts $ 33.80
City Accounts $ 33.80
Volumetric Rates Per 100 Cubic Feet [2]:
Single Family Dwelling $ -
Multiple Dwelling $ -
Multi Family - Townhomes & Condos $ -
Multi Family - Apts $ -
Mobile Home Parks $ -
Motels - Service $ 4.36
Restaurant - Service $ 4.36
Fast Food/Bar - Service $ 4.36
Theaters/Banquet - Service $ 4.36
Camper/Trailer Parks (Unmetered) $ -
Camper/Trailer Parks (Metered) $ 4.36
Schools $ 1.66
Churches (w/o School) $ 1.66
Other Commercial - Retail $ 4.36
Industrial Accounts - Normal $ 1.54
Industrial Accounts - High $ 6.95
City Accounts $ 1.66
Notes:
[2] Under the proposed rates, non-residential customers will pay the volumetric rate per 100 cubic feet for all usage.
[1] All single-family residential, multi-family residential, and mobile home customers only pay a flat fee per dwelling unit, regardless of usage.
Section 2 – Revenue Sufficiency Analysis
2.1 Financial Planning Principles
While the individual rates for each of the utility systems vary based on a variety of factors, rates should be consistent with common rate-making principles within the utility industry. The guiding principle is that rates designed for any utility should provide a reasonable balance between several key factors. In general, the utility rates should:
➢ Generate a stable revenue stream that, when combined with other sources of funds, is sufficient to meet the expenditure requirements and goals of the system; ➢ Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service – in compliance with California Proposition 218; ➢ Be equitable – that is, they should generate revenue from customer classes in a manner which is reasonably in proportion to the cost to provide service to that customer class;
➢ Be easy to understand by customers; and
➢ Be easy to administer by the utility.
Striking the appropriate balance between the principles of ratemaking is the result of a detailed process of evaluation of revenue requirements and cost-of-service, and how those translate into the rate design alternatives which meet legal requirements and the specific objectives of the utility under the circumstances in which it operates.
2.2 Existing Rates
The City has established user rates for water and sewer service that are applied to retail customers of the system. The rates charged for water and sewer services are approved by the City Council and are not subject to administrative review or approval by any other local or state agency. The City has historically adjusted rates, as necessary, to provide for recovery of financial obligations including operating expenses, debt service, capital expenditures and any other expenses and transfers.
The existing water rates consist of 1) a monthly fixed charge that designates the minimum amount a customer will pay regardless of their water usage, and 2) a uniform volumetric rate per 100 cubic feet. The monthly fixed charge varies based on the meter size for all customers, except for multi-family customers. Multi-family customers pay the 5/8”-3/4” meter charge for the first dwelling unit, plus a per “Additional Dwelling Unit” charge for each additional dwelling unit. The volumetric rates are uniform such that the rate per 100 cubic feet remains the same for each respective customer type regardless of the amount of water usage. The existing rates for water service are provided in Table 3.
Table 3 – Existing Monthly Water Rates
The existing sewer rates consist of 1) monthly fixed charges that apply to different types residential customers by dwelling unit regardless of their usage, 2) monthly fixed charges that apply to different types of non-residential customers by account, which include 1,400 cubic feet of usage, and 2) a volumetric rate component per 100 cubic feet that recovers the costs of collection and treatment of wastewater by customer type. The volumetric rate component only applies to non-residential customers. Non-residential customers do not pay the volumetric rate per 100 cubic feet until their monthly usage exceeds 1,400 cubic feet.
The existing rates for sewer service are provided in Table 4.
Monthly Fixed Charge:
5/8 - 3/4 Inch $ 35.51
1.0 Inch $ 96.89
1.5 Inch $ 191.90
2.0 Inch $ 301.60
3.0 Inch $ 646.19
4.0 Inch $ 1,176.31
6.0 Inch $ 2,511.90
8.0 Inch $ 3,364.78
Hydrant $ 50.00
Additional Dwelling Units $ 24.86
Monthly Fixed Charge - Sprinklers: $ -
4.0 Inch $ 19.29
6.0 Inch $ 28.53
8.0 Inch $ 38.58
Volumetric Rates Per 100 Cubic Feet:
Residential, Commerical, Industrial, and City 2.98 $
Hydrant $ 12.69
Description Rate
Table 4 – Existing Monthly Sewer Rates
Description Rate
Monthly Fixed Charge [1]:
Single Family Dwelling $ 30.45
Multiple Dwelling $ 30.45
Multi Family - Townhomes & Condos $ 30.45
Multi Family - Apts $ 30.45
Multi Family - Per Additional Unit $ 21.31
Mobile Home Parks $ 30.45
Mobile Home Parks - Per Additional Unit $ 15.22
Motels - Service $ 60.72
Restaurant - Service $ 60.72
Fast Food/Bar - Service $ 60.72
Theaters/Banquet - Service $ 60.72
Camper/Trailer Parks (Unmetered) $ 60.72
Camper/Trailer Parks - Per Additional Space $ 15.22
Camper/Trailer Parks (Metered) $ 60.72
Schools $ 29.98
Churches (w/o School) $ 29.98
Other Commercial - Retail $ 68.44
Industrial Accounts $ 46.76
City Accounts $ 60.72
Volumetric Rates Per 100 Cubic Feet [2]:
Single Family Dwelling $ -
Multiple Dwelling $ -
Multi Family - Townhomes & Condos $ -
Multi Family - Apts $ -
Mobile Home Parks $ -
Motels - Service $ 6.05
Restaurant - Service $ 6.05
Fast Food/Bar - Service $ 6.05
Theaters/Banquet - Service $ 6.05
Camper/Trailer Parks (Unmetered) $ -
Camper/Trailer Parks (Metered) $ 6.05
Schools $ 0.56
Churches (w/o School) $ 0.56
Other Commercial - Retail $ 6.05
Industrial Accounts - Normal $ 7.26
Industrial Accounts - High $ 7.26
City Accounts $ -
Notes:
[1] All single-family residential, multi-family residential, and mobile home customers only pay a flat fee per dwelling unit, regardless of usage. [2] Under the existing rates, non-residential customers pay the volumetric rate per 100 cubic feet once they exceed 1,400 cubic feet of usage.
2.3 Revenue Sufficiency Process
In evaluating whether the existing rates will generate sufficient revenue to meet the expenditure requirements of the water and sewer systems, the annual expenditures required for each utility (herein referred to as the “Revenue Requirements”) were developed. The Revenue Sufficiency Analysis compares the forecasted revenues for each utility system under existing rates (including customer growth) to the projected Revenue Requirements.
2.3.1 Budget
The Revenue Sufficiency Analysis performed as part of this study and summarized in this Report utilizes the City’s Adopted Budget for FY 24/25 (the “Budget” for FY ending June 30, 2025) as one variable to determine the gross Revenue Requirement to be recovered from user rates over the Projection Period. The Budget, as prepared by the City, is provided on a line-item basis, and is used for projecting the budgeted financial needs for the Test Year and the remainder of the Projection Period. In developing the rate analysis, certain adjustments are made such that expenditures are categorized into either Operating and Maintenance (O&M) expenses or non-operating expenses. In addition, only recurring costs included in the current Budget were included as part of the Revenue Sufficiency Analysis for the entirety of the Projection Period. One-time costs were identified and evaluated in discussions with City Staff and removed if appropriate. Recurring annual costs were escalated using suitable indexes or escalation factors, again in discussion with City Staff. The O&M expenses are primarily those ongoing costs for labor, materials, chemicals, electricity, supplies, services, etc., required to manage and operate the utility system on a day-to-day basis while maintaining a dependable level of service. The O&M requirements are generally a function of a budgetary process and are directly related to the level of service provided to customers of the utility system. The non-operating expenses include such items as capital outlay and any other expenses & transfers.
The Budget also identifies estimated revenues to be derived from sources other than the retail water and sewer user rates. Such other revenue sources include interest earnings on investments, set-up fees, late charges, permits, and various other miscellaneous service charges. The revenues generated from the other sources are applied to the gross Revenue Requirements to reduce the amount of revenue required from user rates. The result is the net Revenue Requirement.
2.3.2 Capital Improvement Plan (CIP)
The City provided a list of anticipated capital projects to be funded over the Projection Period. These are also included in the development of the gross Revenue Requirements. The capital projects provided by and identified by the City in the CIP are required to modernize and upgrade the system to maintain uninterrupted service to customers by investing in improvements, repairs, or replacements of aging system components as they wear over time. The CIP also includes projects necessary to maintain compliance with State mandated
standards for water quality. The City provided cost estimates for the identified capital projects by the fiscal year in which they are estimated to be undertaken for each system.
The funding for these capital projects was then used in the analysis, along with O&M and non-operating expenses, to determine the gross Revenue Requirements for both the water and sewer systems. The capital projects included in the CIP (represented in $1,000s), along with the assumed funding sources by fiscal year, for the Projection Period are provided in Tables 5 and 6.
Table 5 – Water CIP ($1,000s)
Table 6 – Sewer CIP ($1,000s)
2026 2027 2028 2029 2030
Water Capital Projects
603- Water Treatment Plant Facilities Improvement $ 200 $ 200 $ 200 $ 200 $ 250 $ 1,050 605- Water Treatment Plant Backwash Reclamation 100 100 100 100 - 400 607- Water Meter Upgrades - - - - - -
609- Supplemental Well/Storage/Water Treatment Plant Feasibility 100 100 - - - 200 610- Water Distribution System Improvement 100 100 100 100 150 550 613- Reservoir No. 2 Roof Replacement - - - - - -
6xx- New Reservoir 200 750 750 - - 1,700
6xx- Water Distribution System MP Implementation 300 300 300 300 300 1,500 6xx-Water Treatment Plant MP Implementation - - - - 2,000 2,000 6xx- SCADA Upgrades (Water) 200 100 - - - 300
6xx- Reservoir 1 Roof Replacement 750 750 - - - 1,500
6xx-Reservoir 3 Roof Replacement - - 1,500 1,500 - 3,000 6xx= McMurray WTP Generator 700 - - - - 700
Total Water Capital Projects 2,650$ 2,400$ 2,950$ 2,200$ 2,700$ 12,900 $ Capital Funding Source
Cash 2,650$ 2,400$ 2,950$ 2,200$ 2,700$ 12,900$
Grant - - - - - -
Debt - - - - - -
DIF - - - - - -
Total Capital Funding 2,650$ 2,400$ 2,950$ 2,200$ 2,700$ 12,900 $ Description Total Fiscal Year Ending June 30,
2026 2027 2028 2029 2030
Sewer projects
704- Sewer Line Replacement $ 250 $ 250 $ 250 $ 250 $ 300 $ 1,300 706- Wastewater Treatment Plant Facilities Improvement 400 400 400 400 450 2,050 710- Wastewater Treatment Plant Lift Station and Plant Power Reliability - - - - - - 7xx- SCADA Upgrades (Sewer) 200 100 - - - 300
7xx- Wastewater Treatment Plant Electrical Improvements 75 150 150 - - 375 7xx-Wastewater Treatment Plant MP Improvements 300 300 300 300 300 1,500 7xx- Wastewater Treatment Plant Lab Building Replacement 250 - - - - 250 Total Sewer projects 1,475$ 1,200$ 1,100$ $ 1,050$ 5,775$ 950 Capital Funding Source
Cash 1,475$ 1,200$ 1,100$ $ 1,050$ 5,775$ 950
Grant - - - - - -
Debt - - - - - -
DIF - - - - - -
Total Capital Funding 1,475$ 1,200$ 1,100$ $ 1,050$ 5,775$ 950 Description Total Fiscal Year Ending June 30,
2.3.3 Debt Service
The City currently has no outstanding debt associated with either the water or sewer utility system. Based on discussions with the City, there are also no anticipated future debt issuances expected to occur over the Projection Period. Therefore, no annual debt service payments or debt service ratio calculations are included in the analysis and Projection Period.
2.3.4 Gross and Net Revenue Requirement
The proposed water and sewer rates developed in the Report are designed for assumed implementation in FY 2025/26 (the Test Year as previously defined). The projected Test Year gross and net Revenue Requirements are estimated by utilizing the Budget, capital estimates and assumed funding sources for capital projects as provided by the City, along with anticipated transfers to reserves for funding capital projects. The Test Year Revenue Requirements that are used for developing the user rates proposed herein are detailed in Appendix A at the end of this report and summarized in Table 7.
Table 7 – Test Year Revenue Requirements – FY 2026
The projected Revenue Requirements for the water and sewer systems over the entire Projection Period are provided in Tables 8 and 9.
Table 8 – Water Revenue Requirements for the Projection Period Description Water Wastewater Total
Total O&M $ 2,076,541 $ 1,497,019 $ 3,573,560
Existing Capital Lease 102,165 64,635 166,801
Other Expenditures & Transfers 881,118 278,005 1,159,122 Gross Revenue Requirement 3,059,824 $ $ 1,839,659 $ 4,899,483 Less Other Revenues (140,770) (35,650) (176,420)
Net Revenue Requirement $ 2,919,054 $ 1,804,009 $ 4,723,063 2026 2027 2028 2029 2030
Total O&M $ 2,076,541 $ 2,188,848 $ 2,272,154 $ 2,338,329 $ 2,436,930 Existing Capital Lease 102,165 107,161 95,699 117,768 123,396 Future Debt Service - - - - -
Other Expenditures & Transfers 881,118 1,080,390 1,359,247 1,623,987 1,868,278 Gross Revenue Requirement 3,059,824 $ $ 3,376,399 $ 3,727,100 $ 4,080,084 $ 4,428,604 Less Other Revenues (140,770) (140,770) (140,770) (140,770) (140,770) Net Revenue Requirement $ 2,919,054 $ 3,235,629 $ 3,586,330 $ 3,939,314 $ 4,287,834 Description Projected for Fiscal Year Ending June 30,
Table 9 – Sewer Revenue Requirements for the Projection Period
2.4 Customers & Billable Flows
The rate study is heavily reliant upon a detailed analysis of system customers and accompanying usage and demand characteristics. The existing utility customer base and metered/billable flows provide the determinants utilized in the cost-of-service analysis, and ultimately in calculating the monthly user rates and charges, which become the foundation for projecting future revenues generated by the water and sewer systems.
It is important to note that the customer and flow analysis focuses primarily on the customer classifications that will be subject to and impacted by the user rates and charges to be developed in the Report. This consists of the general service (retail) customers that currently pay for utility services pursuant to the existing user rates and charges as previously detailed.
For the purposes of the rate study, it is these customers and their accompanying usage characteristics that will generate revenues based upon the proposed user rates and charges.
2.4.1 Customer Billing Analysis
For the rate study, detailed monthly billing information was provided for each customer. This data offered a breakdown of water and sewer customers by class, usage characteristics and billed charges. The historical billing data was queried from the City’s electronic billing records. An analysis of the billing data was conducted to obtain an understanding of existing customers, customer classes, demand and usage characteristics, and metered usage per customer class. In accordance with the data, as well as discussions with the City staff, the utility system provides service to various identifiable retail customer classes consisting of:
➢ Single-Family Residential
➢ Multi-Family Residential
➢ Commercial/Non-Residential
➢ Industrial, and
➢ Institutional.
2026 2027 2028 2029 2030
Total O&M $ 1,497,019 $ 1,552,335 $ 1,609,811 $ 1,669,540 $ 1,731,615 Existing Capital Lease 64,635 67,796 60,544 74,506 78,067 Future Debt Service - - - - -
Other Expenditures & Transfers 278,005 964,789 1,323,347 1,425,265 1,515,033 Gross Revenue Requirement 1,839,659 $ $ 2,584,920 $ 2,993,702 $ 3,169,311 $ 3,324,715 Less Other Revenues (35,650) (35,650) (35,650) (35,650) (35,650) Net Revenue Requirement $ 1,804,009 $ 2,549,270 $ 2,958,052 $ 3,133,661 $ 3,289,065 Description Projected for Fiscal Year Ending June 30,
Each of these customer classes embodies certain common characteristics in their utility use and service demand profiles that provide the basis for establishing an equitable allocation of system costs. The billing data was utilized to identify the number of customer accounts and dwelling units within each class, the applicable equivalent residential units (ERUs), the metered/billable usage profiles, and sewer strength characteristics.
The historical customer data was also utilized to establish growth trends for each customer classification. The growth trends were then used to project the average number of customers within each class for the Test Year plus the remaining years of the Projection Period.
2.5 Financial Projections Under Existing Rates
The projected customers and accompanying billable flows were applied to the existing rates to develop a projection of user revenues that would be generated under existing rates. The revenues are then compared to the projected revenue requirements/expenditures to determine if revenue adjustments are needed. Based on this comparison, it is projected that under the existing rates, neither the water nor sewer systems would meet their collective projected O&M financial obligations, cost of capital projects, and transfers that are anticipated to be funded with cash reserves. Therefore, revenue increases are required to generate additional cash to fund projected costs of operations and capital projects and maintain adequate cash reserves. In addition, the City has an established policy objective of maintaining at least 180 days of cash reserves to help fund ongoing operations in the event of periodic fluctuations in cash flow, and to address unexpected needs that may require cash funding. The cash-flow statements outlining the projected operating results under existing rates are summarized in Tables 10 and 11 for the water and sewer systems, respectively. The proposed rates and projected financial results are addressed in the subsequent sections of this Report.
Table 10 – Water System Projected Operating Results Under Existing Rates ($1,000s) Existing
2026 2027 2028 2029 2030
Revenues:
Water Sales $ 2,605 $ 2,625 $ 2,645 $ 2,666 $ 2,687
Other Revenues 141 141 141 141 141
Total Revenues $ 2,746 $ 2,766 $ 2,786 $ 2,807 $ 2,828
O&M Expenses (2,077) (2,189) (2,272) (2,338) (2,437)
Capital Lease (102) (107) (96) (118) (123)
Net Operating Results $ 568 $ 470 $ 418 $ 351 $ 267
Other Expenditures & Transfers:
Capital Outlay $ (24) $ (79) $ (25) $ (26) $ (27)
Transfers In - - - - -
Transfers Out - - - - -
Total Other Expenditures & Transfers $ (24) $ (79) $ (25) $ (26) $ (27) Net Results $ 544 $ 391 $ 393 $ 325 $ 241
Fund Balance Activity:
Operating Fund
Beginning Balance $ 10,241 $ 1,024 $ 1,079 $ 1,121 $ 647 Deposit/(Withdrawal) from/(to) Operations 544 391 393 325 241 Deposit/(Withdrawal) from/(to) Capital Fund (9,760) (335) (352) (799) (887) Total Operating Fund Balance $ 1,024 $ 1,079 $ 1,121 $ 647 $ (0) Operating Fund - Days Cash on Hand 180.00 180.00 180.00 100.95 0.00 Capital Fund
Beginning Balance $ (1,047) $ 6,064 $ 3,999 $ 1,401 $ 0 Net Transfers In/(Out) from/(to) Operating Fund 9,760 335 352 799 887 Cash Funded Capital Projects (2,650) (2,400) (2,950) (2,200) (2,700) Total Capital Fund Balance 6,064$ 3,999$ 1,401$ 0$ (1,813) $ Ending Fund Balance 7,088$ 5,079$ 2,522$ $ (1,813) 647 $ Debt Coverage N/A N/A N/A N/A N/A
Description
Projected for Fiscal Year Ending June 30, ($1,000s)
Table 11 – Sewer System Projected Operating Results Under Existing Rates ($1,000s) Existing
2026 2027 2028 2029 2030
Revenues:
Wastewater Sales $ 1,244 $ 1,256 $ 1,267 $ 1,278 $ 1,290 Other Revenues 36 36 36 36 36
Total Revenues $ 1,280 $ 1,291 $ 1,303 $ 1,314 $ 1,326
O&M Expenses (1,497) (1,552) (1,610) (1,670) (1,732)
Capital Lease (65) (68) (61) (75) (78)
Net Operating Results $ (282) $ (329) $ (368) $ (430) $ (484) Other Expenditures & Transfers:
Capital Outlay $ (26) $ (27) $ (83) $ (28) $ (29)
Transfers In - - - - -
Transfers Out - - - - -
Total Other Expenditures & Transfers $ (26) $ (27) $ (83) $ (28) $ (29) Net Results $ (308) $ (355) $ (450) $ (458) $ (513)
Fund Balance Activity:
Operating Fund
Beginning Balance $ 2,491 $ 562 $ (0) $ (450) $ (908)
Deposit/(Withdrawal) from/(to) Operations (308) (355) (450) (458) (513) Deposit/(Withdrawal) from/(to) Capital Fund (1,621) (207) - - - Total Operating Fund Balance $ 562 $ (0) $ (450) $ (908) $ (1,421) Operating Fund - Days Cash on Hand 137.06 0.00 -102.06 -198.56 -299.54 Capital Fund
Beginning Balance $ (146) $ - $ (993) $ (2,093) $ (3,043) Net Transfers In/(Out) from/(to) Operating Fund 1,621 207 - - - Cash Funded Capital Projects (1,475) (1,200) (1,100) (1,050) (950) Total Capital Fund Balance -$ (993)$ (2,093) $ $ (3,043) $ (4,093) Ending Fund Balance $ (993)$ (2,543) 562 $ $ (3,951) $ (5,514) Debt Coverage N/A N/A N/A N/A N/A
Description
Projected for Fiscal Year Ending June 30, ($1,000s)
Section 3 – Cost-of-Service (COS) Analysis
3.1 General
The costs incurred by a utility system are generally driven by specific service requirements imposed on the system by its customers. For water systems, the primary service requirements that drive costs include annual flow volumes, peaking flow volumes (i.e., peak day, and peak hour), the number of customers and the types of customers served. For sewer systems, the primary service requirements that drive costs include annual sewer volumes, sewer strength such as Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS), and the number and types of customers served.
There are several different options that can be used to perform a COS analysis, and the allocation methodology depends upon the basis applied. The water COS analysis performed for this rate study utilizes a common industry approach known as the base-extra capacity method. The sewer COS analysis involves an examination of the types of customers being served in accordance with the California State Water Resources Control Board (SWRCB) Revenue Program Guidelines for Wastewater Agencies.
3.2 Water Cost-of-Service
The COS utilizes the Revenue Requirements for the Test Year as a cost basis. The Test Year Revenue Requirements, as identified in the previous section of the Report, are functionally unbundled, classified and allocated to customer classes to determine the proportionate COS by class. More detail relating to the water COS approach can be found in Appendix B.
3.2.1 Peaking Factors
System-wide peaking factors are used to derive the cost component allocation bases for Base Delivery and Max Day costs. Base Delivery represents average daily demand during the year, which has been normalized to a factor of 1.00. Based on data provided by City staff, the average water demand was .792 million gallons per day (MGD) and the Max Day water demand was 1.583 MGD in the most recent full year. The Max Day peaking factor shows that the system-wide Max Day demand is 1.999 (1.583 Max Day MGD divided by .792 Base Delivery) times greater than the average daily demand. The system-wide peaking factors are shown in Table 12.
The Max Day allocations are calculated as follows:
Base Delivery: .792 / 1.583 x 100% = 50.03%
Max Day: (1.583-.792) / 1.583 x 100% = 49.97%
Table 12 – Peaking Factors System-Wide
Max Day customer-specific peaking factors are then developed, based on the maximum monthly usage divided by average monthly usage for each customer class. Since daily peaking statistics are not available for individual customer classes, the maximum month peaking factor from the customer/billing data is used as a proxy for the Max Day peaking factors. Using the customer billing data, peaking factors by customer class were calculated as shown in Table 13.
Table 13 – Peaking Factors by Customer Class
Once peaking factors are determined, the Max Day demand of each customer class is calculated and shown in Table 14. Total annual usage is derived from the customer data and then converted to an average daily usage by dividing the total annual usage by 365 days in a year. Total Max Day capacity is developed by multiplying the customer-specific peaking factor (from Table 13) by the average daily usage to arrive at the total capacity required to meet each class’s Max Day demand. The extra capacity required to meet Max Day demand is calculated by subtracting the average daily usage from the total required capacity for Max Day. The calculation of additional capacity to meet the Max Day demand for each customer class is shown is shown in Table 14.
Description Demand
(MGD) Factor Base Max Day Total
Avg Day 0.792 1.000 100.00% 0.00% 100.00%
Max Day 1.583 1.999 50.03% 49.97% 100.00%
Description
Max Day
Peaking
Factor
Residential, Commerical, Industrial, And City
All Flow 1.59
Hydrant
All Flow 2.19
Sprinkler
All Flow 0.00
Table 14 – Usage and Extra Capacity
3.2.2 Functional Unbundling of Revenue Requirements
The water system costs are unbundled into operating components consisting of Supply/Treatment, Transmission, Distribution, Customer, and Administration functions. These are the primary services provided by most water utility systems to their customers. A brief description of each component is as follows:
• Supply/Treatment – the costs associated with obtaining and converting raw water to potable water;
• Transmission – the costs associated with major pumping and large diameter line facilities that transmit potable water throughout the system at-large; • Distribution – the costs associated with smaller diameter lines that carry water to individual customer properties;
• Customer – the costs associated with metering, billing, and providing other services to customers (e.g., printing, delivering and collecting utility bills, recordkeeping, etc.);
• Administration – various overhead and other non-operating costs.
The allocation of the functionally unbundled revenue requirements for the Test Year are summarized in Table 15.
Total Annual
Flow (CCF)
Average
Daily Flow
(CCF)
Peaking
Factor
Total
Capacity
(CCF/Day)
Residential, Commerical, Industrial, And City
All Flow 421,883.84 1,155.85 1.59 1,843.32
Hydrant
All Flow 2,016.00 5.52 2.19 12.11
Sprinkler
All Flow - - - -
Total 423,899.84 1,161.37 1,855.43
Description
Flow Max Day
Table 15 – Functionally Unbundled Cost Allocations
3.2.3 Classification of Water System Costs
As previously addressed, the functionally unbundled water system Revenue Requirements are then classified using the base-extra capacity cost allocation method. Applying this methodology, costs are classified into the following categories:
• Base Costs – capital costs and O&M expenses associated with service to customers under average demand conditions. This category does not include any costs attributable to variations in water use resulting from peaks in demand. Base costs tend to vary directly with the total quantity of water used. • Maximum Day/Extra Capacity Costs – costs attributable to facilities that are designed to meet peaking requirements. These costs include capital and operating costs for additional plant and system capacity beyond that required for average usage.
• Meter Costs - costs associated with meter maintenance, meter service, and other meter maintenance and operation-related costs.
Description Test Year
2026
Total O&M $ 2,076,541
Existing Capital Lease 102,165
Future Debt Service -
Other Expenditures & Transfers 881,118
Gross Revenue Requirement $3,059,824
Less Other Revenues (140,770)
Net Revenue Requirement $2,919,054
Functional Unbundled Revenue Requirement
Treatment $ 950,756
Transmission & Distribution 209,873
Admin 915,912
Existing Capital Lease 102,165
New Bond DS -
CIP 2,650,000
Capital Outlay 23,690
Non-Rate Revenue (140,770)
Fund Balance [1] (1,792,572)
Total $ 2,919,054
Notes:
[1] Represents a transfer from reserves to provide funding for capital outlay and CIP costs.
• Customer Costs – costs associated with any aspect of customer service such as billing, collection, accounting, and recordkeeping. These costs are independent of the amount of water used and the size of the customer’s meter and are not subject to peak demand factors.
As the name would indicate, using the base-extra capacity method, the costs are separated between those attributed to base capacity (and demand) and those attributed to extra capacity (and demand). Components such as treatment, transmission, and distribution are allocated based on flows and peaking factors. Administrative and customer-related costs are allocated based on ERUs.
Based on discussions with City staff, the general makeup of the customer base is not expected to change, so it is anticipated that the allocation percentages and factors will not change materially during the Projection Period. However, it is important to note that COS analyses are based on the data at a specific point in time (i.e., the most recent fiscal year).
To the extent that weather conditions, economic conditions and customer usage characteristics change during the Projection Period, the cost allocators can be impacted.
The system-wide costs by service characteristics are shown in Table 16.
Table 16 - Classification of Unbundled Revenue Requirements
3.2.4 Allocation to Customer Classes and Unit Cost
Development
The functionalized and classified Revenue Requirements are allocated to customer classes utilizing a unit cost approach as follows:
• Base Costs – Based on relative percentage of Base Annual Usage. • Maximum Day/Extra Capacity System Costs – Based on relative percentage of Extra Capacity for the entire system.
• Maximum Day/Extra Capacity Distribution Costs – Based on relative percentage of Extra Capacity for the distribution system.
Component Meters &
Services Base
Extra
Capacity
Max Day
Sprinklers Total
Treatment -$ 475,678 $ $ 475,078 -$ 950,756 $
Transmission & Distribution - 105,003 104,870 - 209,873 Admin 876,242 - - 39,670 915,912
Existing Capital Lease 102,165 - - - 102,165
New Bond DS - - - - -
CIP 1,404,500 623,143 622,357 - 2,650,000
Capital Outlay 23,690 - - - 23,690
Non-Rate Rev & Fund Balance (958,862) (479,640) (479,035) (15,806) (1,933,342) Total $ 1,447,736 $ 724,184 $ 723,270 $ 2,919,054 23,864 $
• Meter Maintenance and Operating Costs – Based on the relative percentage of ERUs the system serves through the varying capacity of different water meter sizes. These are costs representing the potential demand that a respective customer class can place on the water system due to the capacity of their assigned water meters, relative to other sized meters.
• Customer Costs – Based on the relative percentage of customers being served.
The units of service for each component of cost by customer class (if applicable) are provided in Table 17. The units of service consist of the number of accounts/units, ERUs, annual flows in 100 cubic feet (CCF) and Max Day extra capacity in CCF/Day.
Accounts/Units are based on the number of customers as provided in the customer data.
ERUs are based on the number of multi-family dwelling units being served and meter equivalencies in accordance with AWWA standards. For reference, Table 20, showing meter equivalency factors, follows in the next section (3.2.5) of this Report. Base Delivery is the total annual usage projected for the test year based on historical customer data. Max Day is the extra capacity demand result as previously developed in Table 14.
Table 17 – Units of Service
The Revenue Requirement for each cost component is divided by its respective unit of service to calculate a unit cost. The unit cost for each cost component is demonstrated in Table 18.
Table 18 – Cost Per Unit
Description Accounts/
Units ERUs Base (CCF) Max Day (CCF/Day)
Residential, Commerical, Industrial, And City 2,034.00 2,974.50 421,883.84 687.48 All Flow 421,883.84 687.48
Hydrant 7.00 56.00 2,016.00 6.59
All Flow 2,016.00 6.59
Sprinkler 78.00 137.20 - -
All Flow - -
Total 2,119.00 3,167.70 423,899.84 694.06
Description Meters &
Services Base
Extra
Capacity
Max Day
Sprinklers Total
Total Revenue Requirement $ 1,447,736 $ 724,184 $ 723,270 $ 23,864 $ 2,919,054 Units of Service 3,030.50 423,899.84 694.06 137.20
ERU/Monthly CCF CCF/Day ERU/Monthly
Cost Per Unit $ 39.81 $ 1,042.08 1.71 $ $ 14.49
ERU/Monthly CCF CCF/Day ERU/Monthly
The allocation of the Revenue Requirement to each customer class is determined by multiplying the Units of Service for each customer class (from Table 17) by the Cost per Unit for each cost component (from Table 18). The resulting total cost to be recovered from each customer class by cost component is shown in Table 19. To calculate the ERU COS by Customer Class, the monthly Units of Service from Table 17 are multiplied by twelve (12), representing the number of billing periods, to determine the total annual ERUs being served, then that result is multiplied by the Cost per Unit shown in Table 18. For the Base Delivery and Max Day Costs, the Units of Service from Table 17 are multiplied by the Costs per Unit from Table 18.
Table 19 – Cost of Service by Customer Class and Cost Component
3.2.5 Rate Design by Unit Cost
The unit costs developed in the previous section are used to develop the proposed rates for the Test Year. The fixed rate component is based on the total ERUs that the water system serves. The volumetric rate component is based on the annual usage and extra capacity requirements (Max Day).
The fixed meter charge is calculated on an ERU basis. As stated previously, the total ERUs being served are based on the number of multi-family dwelling units and meter equivalencies in accordance with AWWA standards. It is common practice in the utility ratemaking industry to establish a rate structure that includes an incremental service availability charge (meter charge, sometimes also called a fixed charge) such that customers placing a greater potential demand requirement on the system (those with larger meters) will pay proportionately more for the service availability component. It is also common practice in the utility rate-making industry to determine the additional demand that multi-family customers place on the system by looking at the total dwelling units being served by multifamily accounts. Each multi-family dwelling unit being served is equivalent to one (1) ERU.
The methodology for incrementing the service availability charge is based upon standardized meter/capacity criteria established by the AWWA relative to the size and Description ERUs Base (CCF) Max Day
(CCF/Day) Total Costs
Residential, Commerical, Industrial, And City 1,420,983 $ $ 720,740 $ 716,405 $ 2,858,128 All Flow $ 720,740 $ 716,405
Hydrant $ 26,752 $ 3,444 $ 6,865 $ 37,061
All Flow $ 3,444 $ 6,865
Sprinkler $ 23,864 -$ -$ 23,864 $
All Flow -$ -$
Total $ 1,471,600 $ 724,184 $ 723,270 $ 2,919,054
capacity of water meters. The AWWA equivalent meter capacity criteria are commonly used to establish a standard unit of measure for customers, referred to as an ERU. Based upon established standards, an ERU is equivalent to one single-family residential connection with a 5/8-3/4-inch water meter (the typical standard meter sizes for a single-family residential customer in the City of Buellton). The applicable ERU factors for larger water meters are based upon the incremental increase in potential hydraulic capacity of those meters as compared to the standard meter size. These factors are derived from actual flow testing results as performed and defined by the AWWA and commonly utilized by the water and sewer utility industry. The AWWA equivalency factors can be applied to the meter charge for a 5/8-3/4-inch meter to calculate the applicable meter charges for each meter size. A full summary of the AWWA meter-size equivalency factors and how they are determined is provided in Table 20.
Table 20 - AWWA Meter Equivalency Factors
Table 21 provides an illustration of how the meter-size equivalency factors are applied to customer accounts by meter-size and how the total multi-family dwelling units being served are used to determine the total ERUs that the water system serves.
Description
AWWA
Factors [1]
Multi-Family
Residential
Factors [2]
Meter Size
5/8 - 3/4 Inch 1.00 1.00
1.0 Inch 2.50 1.00
1.5 Inch 5.00 1.00
2.0 Inch 8.00 1.00
3.0 Inch 15.00 1.00
4.0 Inch 25.00 1.00
6.0 Inch 50.00 1.00
8.0 Inch 80.00 1.00
Hydrant [3] 8.00 1.00
Notes:
[3] Based on discussions with City staff, it was determined that a "Hydrant" customer's potential demand is equivalent to a 2.0 inch meter. [2] Multi-Family Customers are assigned a meter factor of 1.00, regardless of meter size, since a multi-family account's total ERUs are determined based on the total number of dwelling units that they serve. [1] Meter-size equivalency factors established by the AWWA and identified in AWWA Standards C700, M1 and M22.
Table 21 – Total Monthly Accounts/Dwelling Units & ERUs The proposed monthly fixed charges based on the types of customers and total ERUs that the water system serves for the Test Year are shown in Table 22.
Meter Factor
Total
Accounts
/Units
Total
Equivalent
Residential
Units
[A] [B] [C]=[A]*[B]
Meter Size
5/8 - 3/4 Inch 1.00 1,272 1,272.00
1.0 Inch 2.50 81 202.50
1.5 Inch 5.00 28 140.00
2.0 Inch 8.00 86 688.00
3.0 Inch 15.00 4 60.00
4.0 Inch 25.00 - -
6.0 Inch 50.00 1 50.00
8.0 Inch 80.00 - -
Hydrant 8.00 7 56.00
Multi-Family (Shown in Dwelling Units) 1.00 562 562.00
All Customer Total 2,041 3,030.50
Plus:
Sprinklers
4.0 Inch 1.00 26 26.00
6.0 Inch 2.00 46 92.00
8.0 Inch 3.20 6 19.20
Sprinklers Total 78 137.20
Water System Total 2,119 3,167.70
Description
Table 22 – Monthly Fixed Charge Calculation
The water volumetric rates are made up of two different rate components. The first component is for base usage and related costs. The second component represents peak usage and peaking costs (the Max Day cost component). The Max Day peak demand costs for each customer class (from Table 19) are divided by the annual usage to calculate the peaking unit costs shown in Table 23.
Table 23 – Peaking Unit Cost Calculation
Meter Size [1] Capacity
Ratio
Meter
Charge
Proposed
Fixed Charge
General Service
5/8 - 3/4 Inch 1.00 $ 39.81 $ 39.81
1.0 Inch 2.50 $ 99.53 $ 99.53
1.5 Inch 5.00 $ 199.05 $ 199.05
2.0 Inch 8.00 $ 318.48 $ 318.48
3.0 Inch 15.00 $ 597.15 $ 597.15
4.0 Inch 25.00 $ 995.25 $ 995.25
6.0 Inch 50.00 $ 1,990.51 $ 1,990.51
8.0 Inch 80.00 $ 3,184.81 $ 3,184.81
Hydrant 8.00 $ 318.48 $ 318.48
Sprinklers
4.0 Inch 1.00 $ 14.49 $ 14.49
6.0 Inch 2.00 $ 28.99 $ 28.99
8.0 Inch 3.20 $ 46.38 $ 46.38
Notes
[1] All multi-family customers pay the 5/8-3/4 inch rate per dwelling unit.
Peaking
Costs
Annual Use
(CCF)
Peaking Unit
Cost
[A] [B] [C]=[A]/[B]
Residential, Commerical, Industrial, And City
All Flow $ 421,883.84 716,405 $ 1.70
Hydrant
All Flow $ 6,865 2,016.00 $ 3.41
Sprinkler
All Flow -$ - -$
Total $ 723,270 423,899.84
Rate Class
The peaking unit costs are then added to the base unit cost of $1.71 per 100 cubic feet (as previously identified in Table 18) to calculate the proposed volumetric rates for each customer class as shown in Table 24.
Table 24 – Volumetric Rate Calculation
Base Peaking
Proposed
Rate
($/CCF)
[A] [B] [C]=[A]+[B]
Residential, Commerical, Industrial, And City
All Flow $ 1.71 $ 1.70 $ 3.41
Hydrant
All Flow $ 1.71 $ 3.41 $ 5.11
Sprinkler [1]
All Flow $ 1.71 $ 1.70 $ 3.41
Notes:
[1] Since there is no usage or peaking affiliated with "Sprinkler", these customers will be billed at the same rate per CCF as "Residential, Commercial, Industrial, and City" if usage does occur. Sprinlers are used on an as needed basis for fire supression purposes only. Therefore, no usage has been included in this analysis.
Rate Class
3.2.6 Cost-of-Service and Revenue Check
Once the rates are developed from the unit cost analysis, as shown in Sections 3.2.4 and
3.2.5, they are then applied to the customer service units identified in Table 17. The unit cost rates are applied to the customer service units to ensure that the rates calculated under the base-extra capacity method generate revenues from each customer class equitably and in a manner that reflects the costs associated with serving them. The revenues generated by customer class and the cost allocated to each customer class are provided in Table 25.
Table 25 – Proposed Rate Revenues vs COS
Monthly ERUs
Monthly
Meter
Charge/ERU
Total Fixed
Charge
Revenues
Allocated
Fixed Costs
[A1] [B1] [C1]=[A1]*[B1]
*12 [D1]
Residential, Commerical, Industrial, And City
All Flow 2,974.50 $ 39.81 $ 1,420,983 $ 1,420,983
Hydrant
All Flow 56.00 $ 39.81 $ 26,752 $ 26,752
Sprinkler
All Flow 137.20 $ 14.49 $ 23,864 $ 23,864
Total 3,167.70 $ 1,471,600 $ 1,471,600
Annual Use
(CCF)
Proposed
Rate ($/CCF)
Total
Volumetric
Revenues
Allocated
Volumetric
Costs
[A2] [B2] [C2]=[A2]*[B2] [D2]
Residential, Commerical, Industrial, And City
All Flow 421,884 $ 1,437,145 3.41 $ $ 1,437,145
Hydrant
All Flow 2,016 $ 5.11 $ 10,309 $ 10,309
Sprinkler
All Flow - $ 3.41 $ - -$
Total 423,900 $ 1,447,454 $ 1,447,454
Description
Description
3.3 Sewer Cost-of-Service
As with the water system, the COS analysis for the sewer utility utilizes the revenue requirements for the Test Year as the cost basis. The Test Year Revenue Requirements are functionally unbundled, classified and allocated to customer classes to determine the COS by class. As stated in Section 3.1, the sewer COS analysis involves an examination of sewer volumes, strength factors (i.e., BOD and TSS), and the number and type of customers served in accordance with the California State Water Resources Control Board (SWRCB) Revenue Program Guidelines for Wastewater Agencies. More detail relating to the sewer COS approach can be found in Appendix C.
3.3.1 Functional Unbundling of Revenue Requirements
The sewer system costs are unbundled into Collection, Treatment, Customer and Administration functions. A brief description of each component is as follows:
• Collection – costs associated with lines and facilities that transport wastewater from customer properties to treatment facilities;
• Treatment – costs associated with treating wastewater for disposal reclamation and/or discharge;
• Customer – costs associated with billing, and providing other services to customers (e.g., printing, delivering and collecting utility bills, recordkeeping, etc.). • Administration – various overhead and other non-operating costs The allocation of the functionally unbundled revenue requirements for the Test Year are summarized in Table 26.
Table 26 - Functional Unbundled Cost Allocations
3.3.2 Classification of Revenue Requirements
The functionally unbundled Revenue Requirements for the sewer system are classified into fixed and volumetric customer components based on a methodology consistent with the WEF Manual of Practice No. 27. As discussed for the water COS analysis, it is anticipated that the allocation percentages will not change materially during the Projection Period. However, it is important to note that COS analyses are based on the data at a specific point in time (i.e., the most recent fiscal year). To the extent that weather conditions, economic conditions and customer usage characteristics change during the Projection Period, the cost allocators can be impacted. The system-wide costs by service characteristic are shown in Table 27.
Description Test Year
2026
Total O&M $ 1,497,019
Existing Capital Lease 64,635
Future Debt Service -
Other Expenditures & Transfers 278,005
Gross Revenue Requirement $ 1,839,659
Less Other Revenues (35,650)
Net Revenue Requirement $ 1,804,009
Functional Unbundled Revenue Requirement
Treatment $ 587,936
Collection 179,735
Administration 729,348
CIP 1,475,000
Capital Outlay 25,750
Existing Capital Lease 64,635
New Bond DS -
Non-Rate Revenue (35,650)
Fund Balance [1] (1,222,745)
Non-Rate Rev & Fund Balance $ 1,804,009
Notes:
[1] Represents a transfer from reserves to provide funding for capital outlay and CIP costs.
Table 27 - Classification of Unbundled Revenue Requirements
3.3.3 Allocation to Customer Classes and Unit Cost
Development
The functionalized and classified Revenue Requirements are allocated to customer classes utilizing a unit cost approach as follows:
• Collection – Based on relative percentage of annual sewer usage; • Treatment – Based on relative percentage of sewer strength discharge (BOD and TSS);
• Customer – Based on relative percentage of ERUs by customer class.
The units of service for each component of cost by customer class (if applicable) are provided in Table 28. The units of service consist of the number of customer accounts and associated ERUs, annual flows in 100 cubic feet, and sewer strength discharge. Customer accounts are based on the number of customers as provided in the customer data. ERUs for residential customers are based on the number of dwelling units, and non-residential customers are based on the number of accounts. Collection is the total annual sewer flows projected for the Test Year. BOD and TSS reflect the strength per pound of the sewer discharge collected by the City from each customer class based on standards for wastewater discharge included in the SWRCB Guidelines.
Component Admin Volume Capacity Strength -
BOD Strength - SS Total
Treatment -$ 58,852 $ $ 58,852 $ 220,568 $ 249,663 $ 587,936 Collection - 89,868 89,868 - - 179,735
Administration 729,348 - - - - 729,348
CIP 737,500 73,860 73,860 276,605 313,175 1,475,000
Capital Outlay 25,750 - - - - 25,750
Existing Capital Lease 64,635 - - - - 64,635
New Bond DS - - - - - -
Non-Rate Rev & Fund Balance (639,894) (91,462) (91,462) (204,297) (231,280) (1,258,395) Total $ 917,339 $ 131,118 $ 131,118 $ 292,876 $ 331,558 $ 1,804,009
Table 28 – Units of Service
The Revenue Requirement for each cost component is divided by its respective unit of service to calculate a unit cost. The unit cost for each cost component is demonstrated in Table 29.
Table 29 – Cost Per Unit
Total Total CCF BOD BOD TSS TSS
Accounts Units Flow Factor [1] Pounds Factor [1] Pounds Residential Classes
Single-Family 1,200 1,200 187,776 234,281 200 234,281 200 Multi-Family 408 30,243 556 37,733 200 37,733 200
Mobile Homes 2 25,440 319 31,741 200 31,741 200
Sub-Total Residential 1,610 2,075 243,459 303,755 303,755 Non-Residential Classes
Commercial
Commercial- Service 115 72,588 115 307,131 507 266,773 441 Commercial - Retail 28 2,268 28 2,837 150 2,837 150
Sub-Total Commercial 143 74,856 143 309,969 269,610
Institutional
School/Church 4 4 3,360 3,643 130 2,802 100
City 5 5 660 130 716 100 550
Sub-Total Institutional 9 9 4,020 4,358 3,353
Industrial
Industrial - Normal 19 4,742 19 6,644 168 1,147 29
Industrial - High 16 11,044 16 1,000 92,107 55,264 600
Sub-Total Industrial 35 15,786 35 98,751 56,411
Sewer System Total 2,262 1,797 338,121 716,833 633,129
[1] Average strength factors for BOD and TSS are based on the State Water Resources Control Board Revenue Program Guidelines, Appendix G.
Notes:
Description
Description Admin Volume Capacity Strength - BOD Strength - SS Total Total Revenue Requirement 917,339 $ $ 131,118 $ 131,118 $ 331,558 $ 292,876 $ 1,804,009 Units of Service 2,262 338,121 338,121 716,833 633,129
Units/Monthly CCF CCF Pounds Pounds
Cost Per Unit $ 33.80 $ 0.39 $ 0.39 $ 0.46 $ 0.46
Units/Monthly CCF CCF Pounds Pounds
The allocation of the Revenue Requirement to each customer class is based on the unit costs for each component multiplied by the units of service for each customer class. The total costs to be recovered from each customer class by rate component are shown in Table 30.
Table 30 – Cost of Service by Customer Class and Cost Component
3.3.4 Cost-of-Service and Revenue Check
Once the unit costs are developed and the costs associated with each customer class based on the units of service are determined in Section 3.3.3, rates can be developed to ensure that each customer class is generating sufficient revenues to cover their allocated cost of service. The proposed rate structure for the sewer rates are as follows:
• Single-Family Residential Customers – For single-family residential customers, the proposed rates will consist of only a flat fixed charge per single-family residential customer, regardless of usage.
• Multi-Family Residential Customers – For multi-family residential customers, the proposed rates will consist of only a flat fixed charge per dwelling unit, regardless of usage.
• Mobile Home Residential Customers – For mobile home residential customers, the proposed rates will consist of only a flat fixed charge per dwelling unit, regardless of usage.
• Non-Residential Customers – For non-residential customers, the proposed rates will consist of a fixed charge and a volumetric rate per 100 cubic feet based on each customer class’s respective sewer strength discharge (i.e., commercial, institutional, industrial normal strength, and industrial high strength).
The revenues generated by customer class vs the cost allocated to each customer class are provided in Table 31.
Rate Class Admin Volume Capacity Strength -
BOD Strength - SS Total
Residential Classes
Single-Family $ 486,652 $ 72,817 $ 72,817 $ 108,362 $ 108,375 $ 849,023 Multi-Family 225,482 11,728 11,728 17,453 17,455 283,845 Mobile Homes 129,368 9,865 9,865 14,681 14,683 178,463
Non-Residential Classes
Commercial 57,993 29,028 29,028 143,370 124,718 384,136 Institutional 3,650 1,559 1,559 2,016 1,551 10,335
Industrial - Normal 7,705 1,839 1,839 3,073 531 14,987
Industrial - High 6,489 4,283 4,283 42,602 25,564 83,221 Total $ 917,339 $ 131,118 $ 131,118 $ 331,558 $ 292,876 $ 1,804,009
Table 31 – Proposed Rate Revenues vs COS
Monthly
Dwelling
Units
Proposed
Monthly
Fixed Fee
Total Fixed
Fee
Revenue
Billable
Annual
Volume
(CCF)
Proposed
Volumetric
Rate
Total
Volumetric
Rate
Revenues
Total
Calculated
Revenues
Total COS
Revenues
[A] [B] [C]=[A]*[B]*12 [D] [E] [F]=[D]*[E] [G]=[C]+[F] [H] Residential Classes
Single-Family 1,200 $ 58.96 $ 849,023 N/A N/A -$ 849,023 $ $ 849,023 Multi-Family 556 $ 42.54 $ 283,845 N/A N/A -$ 283,845 $ $ 283,845 Mobile Homes 319 $ 46.62 $ 178,463 N/A N/A -$ 178,463 $ $ 178,463 Non-Residential Classes
Commercial 143 $ 33.80 $ 57,993 74,856 $ 326,144 4.36 $ $ 384,136 $ 384,136 Institutional 33.80 9 $ $ 3,650 4,020 $ 1.66 $ 6,685 $ 10,335 $ 10,335 Industrial - Normal 33.80 19 $ $ 7,705 4,742 $ 1.54 $ 7,281 $ 14,987 $ 14,987 Industrial - High 33.80 16 $ $ 6,489 11,044 $ 6.95 $ 76,732 $ 83,221 $ 83,221 Total 2,262 $ 1,387,167 94,662 $ 416,842 $ 1,804,009 $ 1,804,009 Description
Section 4 – Proposed Test Year Rates
4.1 General
The methodology used to calculate the recommended water and sewer rates proposed herein involves applying the projected customer units of service to the user rates developed in the preceding COS and rate analyses to calculate the estimated revenues (separately for water and sewer) that would be generated. Then, these projected revenues are compared to the estimated Test Year Revenue Requirements, and the water and/or sewer rates are adjusted on a percentage basis as necessary until the revenues generated are sufficient to meet the revenue needs of each utility system, respectively.
When reviewing potential rate structure options in conjunction with the need for additional revenues, it was determined that revenue adjustments are needed, and the existing rate structure needs to be adjusted based on the COS analysis. The proposed water and sewer rates for the Test Year are provided again in Tables 32 and 33, respectively.
Table 32 – Proposed Monthly Water Rates
Table 33 – Proposed Monthly Sewer Rates
Description Rate
Monthly Fixed Charge [1]:
Single Family Dwelling $ 58.96
Multiple Dwelling $ 42.54
Multi Family - Townhomes & Condos $ 42.54
Multi Family - Apts $ 42.54
Multi Family - Per Additional Unit $ 42.54
Mobile Home Parks $ 46.62
Mobile Home Parks - Per Additional Unit $ 46.62
Motels - Service $ 33.80
Restaurant - Service $ 33.80
Fast Food/Bar - Service $ 33.80
Theaters/Banquet - Service $ 33.80
Camper/Trailer Parks (Unmetered) $ 33.80
Camper/Trailer Parks - Per Additional Space $ 33.80
Camper/Trailer Parks (Metered) $ 33.80
Schools $ 33.80
Churches (w/o School) $ 33.80
Other Commercial - Retail $ 33.80
Industrial Accounts $ 33.80
City Accounts $ 33.80
Volumetric Rates Per 100 Cubic Feet [2]:
Single Family Dwelling $ -
Multiple Dwelling $ -
Multi Family - Townhomes & Condos $ -
Multi Family - Apts $ -
Mobile Home Parks $ -
Motels - Service $ 4.36
Restaurant - Service $ 4.36
Fast Food/Bar - Service $ 4.36
Theaters/Banquet - Service $ 4.36
Camper/Trailer Parks (Unmetered) $ -
Camper/Trailer Parks (Metered) $ 4.36
Schools $ 1.66
Churches (w/o School) $ 1.66
Other Commercial - Retail $ 4.36
Industrial Accounts - Normal $ 1.54
Industrial Accounts - High $ 6.95
City Accounts $ 1.66
Notes:
[2] Under the proposed rates, non-residential customers will pay the volumetric rate per 100 cubic feet for all usage.
[1] All single-family residential, multi-family residential, and mobile home customers only pay a flat fee per dwelling unit, regardless of usage.
4.2 Typical Monthly Bill Comparison
In addition to reviewing
the effect that a change
in the rates will have on
the system revenues, it is
also important for City
utility management to
understand the impact
that a change will have
on the existing customers.
Tables 34, 35 and 36
provide a comparison of
several monthly bills at
various flow levels for
water and sewer, as well as the combined utility bills under the existing and proposed rates.
A graphical illustration of a bill comparison at various units of flow is provided in Figure 1 for a single-family residential customer with both water and sewer service. It was determined after conducting a historical billing analysis that an average single-family residential customer uses approximately 1,200 cubic feet monthly. Based on the proposed rates, a typical City single-family residential customer will experience an increase of $37.93 ($101.72 current bill vs $139.65 proposed bill) in their combined monthly water and sewer bill.
Table 34 – Single-Family Residential Water Bill Impact
Existing Proposed
Residential
5/8 Inch & 3/4 Inch 0 $ 35.51 $ 39.81 $ 4.30
5/8 Inch & 3/4 Inch 100 $ 38.49 $ 43.22 $ 4.73
5/8 Inch & 3/4 Inch 200 $ 41.47 $ 46.62 $ 5.15
5/8 Inch & 3/4 Inch 300 $ 44.45 $ 50.03 $ 5.58
5/8 Inch & 3/4 Inch 400 $ 47.43 $ 53.44 $ 6.01
5/8 Inch & 3/4 Inch 500 $ 50.41 $ 56.84 $ 6.43
5/8 Inch & 3/4 Inch 600 $ 53.39 $ 60.25 $ 6.86
5/8 Inch & 3/4 Inch 700 $ 56.37 $ 63.66 $ 7.29
5/8 Inch & 3/4 Inch 800 $ 59.35 $ 67.06 $ 7.71
5/8 Inch & 3/4 Inch 1,000 $ 65.31 $ 73.88 $ 8.57
5/8 Inch & 3/4 Inch 1,200 $ 71.27 $ 80.69 $ 9.42
5/8 Inch & 3/4 Inch 1,400 $ 77.23 $ 87.50 $ 10.27
5/8 Inch & 3/4 Inch 1,600 $ 83.19 $ 94.31 $ 11.12
5/8 Inch & 3/4 Inch 2,000 $ 95.11 $ 107.94 $ 12.83
5/8 Inch & 3/4 Inch 2,400 $ 107.03 $ 121.57 $ 14.54
Description Monthly
Flow (CF)
Monthly Charges $ Amount
Difference
Table 35 – Single-Family Residential Sewer Bill Impact
Table 36 – Single-Family Residential Combined Bill Impact Existing Proposed
Residential
5/8 Inch & 3/4 Inch 0 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 100 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 200 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 300 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 400 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 500 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 600 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 700 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 800 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 1,000 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 1,200 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 1,400 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 1,600 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 2,000 $ 30.45 $ 58.96 $ 28.51
5/8 Inch & 3/4 Inch 2,400 $ 30.45 $ 58.96 $ 28.51
Description Monthly
Flow (CF)
Monthly Charges $ Amount
Difference Existing Proposed
Residential
5/8 Inch & 3/4 Inch 0 $ 65.96 $ 98.77 $ 32.81
5/8 Inch & 3/4 Inch 100 $ 68.94 $ 102.18 $ 33.24
5/8 Inch & 3/4 Inch 200 $ 71.92 $ 105.58 $ 33.66
5/8 Inch & 3/4 Inch 300 $ 74.90 $ 108.99 $ 34.09
5/8 Inch & 3/4 Inch 400 $ 77.88 $ 112.40 $ 34.52
5/8 Inch & 3/4 Inch 500 $ 80.86 $ 115.80 $ 34.94
5/8 Inch & 3/4 Inch 600 $ 83.84 $ 119.21 $ 35.37
5/8 Inch & 3/4 Inch 700 $ 86.82 $ 122.62 $ 35.80
5/8 Inch & 3/4 Inch 800 $ 89.80 $ 126.02 $ 36.22
5/8 Inch & 3/4 Inch 1,000 $ 95.76 $ 132.84 $ 37.08
5/8 Inch & 3/4 Inch 1,200 $ 101.72 $ 139.65 $ 37.93
5/8 Inch & 3/4 Inch 1,400 $ 107.68 $ 146.46 $ 38.78
5/8 Inch & 3/4 Inch 1,600 $ 113.64 $ 153.27 $ 39.63
5/8 Inch & 3/4 Inch 2,000 $ 125.56 $ 166.90 $ 41.34
5/8 Inch & 3/4 Inch 2,400 $ 137.48 $ 180.53 $ 43.05
Description Monthly
Flow (CF)
Monthly Charges $ Amount
Difference
4.3 Rate Comparison with Other Utilities
To provide the City with additional insight and context regarding the proposed rate levels, the analysis includes a comparison of both the existing and proposed user rates relative to the user rates imposed by other water and sewer utility systems located in the same region.
A summary analysis is provided comparing the cost of monthly water and sewer service for a typical single-family residential customer calculated under the existing and proposed rates of the City with those of the other utilities. The rates utilized for the other neighboring utilities shown in Figure 2 were in effect as of April 2025 and are exclusive of local taxes, outside surcharges, franchise fees, regulatory fees, or other rate adjustments. A summary comparison with other utilities for a single-family residential customer receiving 1,200 cubic feet of service per monthly billing is illustrated in Figure 2.
It should be noted that when making comparisons of water and sewer service with other providers, several factors affect the level of rates and charges. Such factors may include:
1) Terms of wholesale service agreements;
2) Time since last rate update for comparison providers; 3) Level of treatment required before the distribution of water to the ultimate customers;
4) Level of treatment and effluent disposal or discharge methods of sewer service;
5) Anticipated capital improvement programs and capital financing methods; 6) Plant capacity utilization, age of facilities, and assistance in construction by federal or state grants, connection fees, developer contributions, etc.; 7) General Fund and/or administrative fee transfers made by other systems which may account for differences in the level of rates charged; and 8) Bond covenants and funding requirements of the rates.
For the utilities included in the rate comparisons, no analysis has been carried out with consideration of the above-mentioned factors as they relate to the reported water and sewer rates currently being charged.
Section 5 – Projected Operating Results
5.1 General
As a conclusion to the study, individual pro-forma operating statements are developed for both the water and sewer systems. The statements summarize the projected financial results based on the system revenues, expenses and other Revenue Requirements anticipated in future years.
The individual operating statements cover the 5-fiscal year Projection Period through June 30, 2030, and are prepared on a cash-flow basis. In addition, the individual statements include the applicable annual percentage rate adjustments necessary to meet the projected Revenue Requirements. The annual rate adjustments are considered separately for both water and sewer and are further separated by the fixed charge and volumetric rate components. The following discussions describe the development of the major components of the projected operating results.
5.2 Projected User Rate Revenues
The user rate and charge revenues are estimated by applying the existing and proposed rates to the projected customer units of service. The revenues for the Projection Period are estimated separately for both water and sewer. The resulting revenues are then compared to the projected Revenue Requirements (i.e., O&M expenses, debt service, capital outlay, CIP, transfers, etc.) in each fiscal year to determine if the revenues are sufficient to satisfy the expenditure needs of the system. To the extent that there are revenue shortfalls in any given year of the Project Period, the water and/or sewer rates developed from the COS and Rate analyses outlined previously in Section 3 of this Report are adjusted on a percentage basis, as necessary, to generate the required level of revenues. The projected water, sewer and combined user rate revenues are provided in Table 37.
Table 37 – Projected User Rate Revenues
The projected revenues include the annual water and sewer rate adjustments anticipated for the remaining years of Projection Period beyond the Test Year. The proposed user rates from which the projected operating results are developed for the entire 5-fiscal year Projection Period are provided in Tables 38 and 39. The rates identified in the proceeding tables reflect the cost of providing service to individual customer classes based on the types of customers being served, peak demand factors, volume of flow, and strength characteristics.
Existing Proposed
2026 2026 2027 2028 2029 2030
Water Revenue
Single-Family $ 1,107,855 $ 1,252,246 $ 1,400,649 $ 1,566,211 $ 1,734,962 $ 1,905,203 Multi-Family 147,881 186,507 205,953 227,423 249,475 270,463 Condo 161,854 183,611 202,669 223,703 244,673 265,150
Mobile Homes 108,858 113,552 124,907 137,397 149,763 161,745 Commercial - Retail 90,130 97,672 107,440 118,184 128,819 139,125 Commercial- Service 546,927 599,496 659,444 725,388 790,674 853,927 School/Church 77,001 84,888 93,377 102,715 111,961 120,916 Industrial 143,287 155,023 170,524 187,577 204,459 220,815 Hydrant 29,783 37,061 40,768 44,844 48,880 52,790
Sprinkler 27,241 26,946 29,642 32,605 35,540 38,383
City 164,636 182,052 200,256 220,283 240,108 259,317
Total Water Revenue $ 2,605,453 $ 2,919,054 $ 3,235,629 $ 3,586,330 $ 3,939,314 $ 4,287,834 Sewer Revenue
Single-Family $ 438,480 $ 849,023 $ 1,209,433 $ 1,414,769 $ 1,510,625 $ 1,598,416 Commercial - Retail 25,307 21,237 29,731 34,192 35,901 37,337 Commercial- Service 439,576 362,899 508,059 584,268 613,482 638,021 School/Church 3,041 7,209 10,093 11,608 12,188 12,675
Industrial - Normal 31,628 14,987 20,981 24,129 25,336 26,348 Industrial - High 72,924 83,221 116,509 133,986 140,685 146,312 City 3,643 3,126 4,376 5,031 5,283 5,495
Multi-Family 81,840 138,859 196,547 227,674 240,784 252,210 Condo 89,076 144,986 203,694 235,071 247,687 258,493
Mobile Homes 58,628 178,463 249,847 287,324 301,690 313,758 Total Sewer Revenue $ 1,244,143 $ 1,804,009 $ 2,549,270 $ 2,958,052 $ 3,133,661 $ 3,289,065 Total Combined Revenue $ 3,849,596 $ 4,723,063 $ 5,784,899 $ 6,544,382 $ 7,072,975 $ 7,576,899 Projected Fiscal Year Ending June 30, System
Table 38 – Proposed Monthly Water Rates
2026 2027 2028 2029 2030
Monthly Fixed Charge:
5/8 - 3/4 Inch $ 35.51 $ 39.81 $ 43.79 $ 48.17 $ 52.51 $ 56.71
1.0 Inch $ 96.89 $ 99.53 $ 109.48 $ 120.43 $ 131.26 $ 141.77
1.5 Inch $ 191.90 $ 199.05 $ 218.96 $ 240.85 $ 262.53 $ 283.53
2.0 Inch $ 301.60 $ 318.48 $ 350.33 $ 385.36 $ 420.04 $ 453.65
3.0 Inch $ 646.19 $ 597.15 $ 656.87 $ 722.55 $ 787.58 $ 850.59
4.0 Inch $ 1,176.31 $ 995.25 $ 1,094.78 $ 1,204.26 $ 1,312.64 $ 1,417.65
6.0 Inch $ 2,511.90 $ 1,990.51 $ 2,189.56 $ 2,408.51 $ 2,625.28 $ 2,835.30
8.0 Inch $ 3,364.78 $ 3,184.81 $ 3,503.29 $ 3,853.62 $ 4,200.45 $ 4,536.48 Hydrant $ 50.00 $ 318.48 $ 350.33 $ 385.36 $ 420.04 $ 453.65 Additional Dwelling Units [1] $ 24.86 $ 39.81 $ 43.79 $ 48.17 $ 52.51 $ 56.71 Monthly Fixed Charge - Sprinklers:
4.0 Inch $ 19.29 $ 14.49 $ 15.94 $ 17.54 $ 19.12 $ 20.65
6.0 Inch $ 28.53 $ 28.99 $ 31.89 $ 35.08 $ 38.23 $ 41.29
8.0 Inch $ 38.58 $ 46.38 $ 51.02 $ 56.12 $ 61.18 $ 66.07 Volumetric Rates Per 100 Cubic Feet:
Residential, Commerical, Industrial, and City $ 2.98 $ 3.41 $ 3.75 $ 4.12 $ 4.49 $ 4.85 Hydrant $ 12.69 $ 5.11 $ 5.62 $ 6.19 $ 6.74 $ 7.28
Notes:
Description Existing
Rates
Projected For Fiscal Year Ending June 30:
[1] Under the proposed rates, all "Additional Dwelling Units" will now be billed at the 5/8-3/4 inch meter rate per dwelling unit.
Table 39 – Proposed Monthly Sewer Rates
2026 2027 2028 2029 2030
Monthly Fixed Charge [1]:
Single Family Dwelling $ 30.45 $ 58.96 $ 82.54 $ 94.93 $ 99.67 $ 103.66 Multiple Dwelling $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Townhomes & Condos $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Apts $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Per Additional Unit $ 21.31 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Mobile Home Parks $ 30.45 $ 46.62 $ 65.27 $ 75.06 $ 78.81 $ 81.96 Mobile Home Parks - Per Additional Unit $ 15.22 $ 46.62 $ 65.27 $ 75.06 $ 78.81 $ 81.96 Motels - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Restaurant - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Fast Food/Bar - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Theaters/Banquet - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks (Unmetered) $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks - Per Additional Space $ 15.22 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks (Metered) $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Schools $ 29.98 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Churches (w/o School) $ 29.98 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Other Commercial - Retail $ 68.44 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Industrial Accounts $ 46.76 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 City Accounts $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Volumetric Rates Per 100 Cubic Feet [2]:
Single Family Dwelling $ - $ - $ - $ - $ - $ -
Multiple Dwelling $ - $ - $ - $ - $ - $ -
Multi Family - Townhomes & Condos $ - $ - $ - $ - $ - $ - Multi Family - Apts $ - $ - $ - $ - $ - $ -
Mobile Home Parks $ - $ - $ - $ - $ - $ -
Motels - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Restaurant - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Fast Food/Bar - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Theaters/Banquet - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Camper/Trailer Parks (Unmetered) $ - $ - $ - $ - $ - $ - Camper/Trailer Parks (Metered) $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Schools $ 0.56 $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92
Churches (w/o School) $ 0.56 $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92 Other Commercial - Retail $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Industrial Accounts - Normal $ 7.26 $ 1.54 $ 2.15 $ 2.47 $ 2.60 $ 2.70 Industrial Accounts - High $ 7.26 $ 6.95 $ 9.73 $ 11.19 $ 11.75 $ 12.22 City Accounts $ - $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92
Notes:
[2] Under the existing rates, non-residential customers pay the volumetric rate per 100 cubic feet once they exceed 1,400 cubic feet of usage. Under the proposed rates, non-residential customers will pay the volumetric rate per 100 cubic feet for all usage.
[1] All single-family residential, multi-family residential, and mobile home customers only pay a flat fee per dwelling unit, regardless of usage.
Description Existing
Rates
Projected For Fiscal Year Ending June 30:
The projected user rates provided herein for the periods beyond the Test Year are intended for strategic planning purposes, and to provide the City with the estimated future rates that may be needed to satisfy the projected cash flow requirements. The rates are developed in accordance with the assumed customer, flow, expenditure, and revenue estimates projected in this rate study. It is important to note that, since it is necessary to utilize numerous assumptions to develop the projected operating results, to the extent that actual customers, flows and/or system expenditures differ from those assumed herein, additional rate adjustments may be required. For informative purposes, a calculation of the typical monthly bill for a representative City single-family residential customer based on the projected rates, for each year of the Projection Period is included herein. An illustration of the projected bill path is provided in Figure 3.
5.3 Debt Service Coverage
As stated previously in Section 2.3.3, The City currently has no outstanding debt associated with either the water or sewer utility system, and based on discussions with the City, there are also no anticipated future debt issuances expected to occur over the Projection Period.
Therefore, no annual debt service payments or debt service ratio calculations are included in the analysis and Projection Period.
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5.4 Summary of Projected Operating Results
The cash-flow statements outlining the projected operating results are summarized in Tables 40 and 41 for the water and sewer systems, respectively. The results demonstrate that the proposed rates and charges along with the other respective system revenues are anticipated to be sufficient to satisfy the projected Revenue Requirements and capital needs for each respective utility system.
Table 40 – Water System Projected Operating Results
Propose
d 2026 2027 2028 2029 2030
Revenues:
Water Sales 2,919$ 3,236$ 3,586$ 3,939$ 4,288$
Other Revenues 141 141 141 141 141
Total Revenues 3,060$ 3,376$ 3,727$ 4,080$ 4,429$
O&M Expenses (2,189) (2,077) (2,272) (2,338) (2,437)
Capital Lease (107) (102) (96) (118) (123)
Net Operating Results $ 1,080$ 1,359$ 1,624$ 1,868$ 881 Other Expenditures & Transfers:
Capital Outlay (24)$ (79)$ (25)$ (26)$ (27)$
Transfers In - - - - -
Transfers Out - - - - -
Total Other Expenditures & Transfers (24)$ (79)$ (25)$ (26)$ (27)$ Net Results $ 1,001$ 1,334$ 1,598$ 1,842$ 857
Fund Balance Activity:
Operating Fund
Beginning Balance 1,030$ 1,024$ 1,079$ 1,121$ 1,153$
Deposit/(Withdrawal) from/(to) Operations 1,001 857 1,334 1,598 1,842 Deposit/(Withdrawal) from/(to) Capital Fund (863) (946) (1,293) (1,565) (1,793) Total Operating Fund Balance 1,024$ 1,079$ 1,121$ 1,153$ 1,202$ Operating Fund - Days Cash on Hand 180.00 180.00 180.00 180.00 180.00 Capital Fund
Beginning Balance 8,164$ 6,377$ 4,923$ 3,266$ 2,632$
Net Transfers In/(Out) from/(to) Operating Fund 863 1,293 946 1,565 1,793 Cash Funded Capital Projects (2,400) (2,650) (2,950) (2,200) (2,700) Total Capital Fund Balance 6,377$ 4,923$ 3,266$ 2,632$ 1,725$ Ending Fund Balance 7,402$ 6,002$ 4,387$ 3,785$ 2,926$
Debt Coverage N/A N/A N/A N/A N/A
Description
Projected for Fiscal Year Ending June 30, ($1,000s)
Table 41 – Sewer System Projected Operating Results
Propose
d 2026 2027 2028 2029 2030
Revenues:
Wastewater Sales 1,804$ 2,549$ 2,958$ 3,134$ 3,289$
Other Revenues 36 36 36 36 36
Total Revenues 1,840$ 2,585$ 2,994$ 3,169$ 3,325$
O&M Expenses (1,552) (1,497) (1,610) (1,670) (1,732)
Capital Lease (65) (68) (61) (75) (78)
Net Operating Results $ 278 $ 1,323$ 1,425$ 1,515$ 965
Other Expenditures & Transfers:
Capital Outlay (26)$ (27)$ (83)$ (28)$ (29)$
Transfers In - - - - -
Transfers Out - - - - -
Total Other Expenditures & Transfers (26)$ (27)$ (83)$ (28)$ (29)$ Net Results $ 252 $ 1,241$ 1,397$ 1,486$ 938
Fund Balance Activity:
Operating Fund
Beginning Balance $ 708 $ 738 $ 766 $ 794 $ 823
Deposit/(Withdrawal) from/(to) Operations 252 1,241 938 1,397 1,486 Deposit/(Withdrawal) from/(to) Capital Fund (222) (911) (1,212) (1,368) (1,455) Total Operating Fund Balance $ 738 $ 766 $ 794 $ 823 $ 854 Operating Fund - Days Cash on Hand 180.00 180.00 180.00 180.00 180.00 Capital Fund
Beginning Balance 1,637$ $ 384 $ 95 $ 207 $ 625
Net Transfers In/(Out) from/(to) Operating Fund 222 1,212 911 1,368 1,455 Cash Funded Capital Projects (1,200) (1,475) (1,100) (1,050) (950) Total Capital Fund Balance $ 384 $ 95 $ 207 $ 1,030$ 625 Ending Fund Balance 1,122$ $ 1,001$ 1,448$ 1,884$ 860
Debt Coverage N/A N/A N/A N/A N/A
Projected for Fiscal Year Ending June 30, ($1,000s)
Description
Section 6 – Conclusions and Recommendations
6.1 Disclaimers
6.1.1 General Disclaimer
In the development of the proposed user rates and charges, certain historical reviews and analyses have been performed, together with the application of assumptions based on prudent financial, operational, and ratemaking relationships. The cost criteria and customer usage characteristics associated with general ratemaking procedures are representative of averages and are not intended as indicators of any individual customer.
In the preparation of the rate study, certain assumptions have been made with respect to conditions that may occur in the future. While it is believed that these assumptions are reasonable for the purpose of this update, they are dependent upon future events and actual conditions may differ from those assumed. In addition, the study has used and relied upon certain information that was provided by other parties not associated with Willdan.
Such information includes, among other things, the City’s audited financial statements, annual operating budgets, periodic reports, and other information and data provided by the City, its independent auditors, and other sources. While the sources are believed to be reliable, there has been no independent verification of the information, and no assurances are offered with respect thereto. To the extent that future conditions differ from those assumed herein or provided by others, the actual results may vary from those projected.
6.1.2 Municipal Advisory Disclaimer
Unless the City of Buellton, California (the “City”) has a written engagement from Willdan Financial Services (“Willdan”) for municipal advisory services, Willdan is not advising or recommending any action be taken by the recipient of this information with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms and other similar matters concerning such financial products or issues). The City shall discuss any such information and material contained in Willdan’s work product with any and all internal and/or external advisors and experts, including its own municipal advisor, that it deems appropriate before acting on the information and material.
For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it
provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto.
6.2 Conclusions
As previously addressed, the purpose of this study is to provide a review of the City’s existing utility rates to determine if rate adjustments are necessary to meet the budgeted and/or projected financial needs in future years. This Report is the result of the collaborative efforts of representatives from both the City and Willdan. City staff were diligent and cooperative in their efforts to ensure the availability and quality of source data on financial and operating matters. Based on the reviews, analyses and assumptions discussed herein, it is concluded that:
1. The proposed user rates and charges are anticipated to generate sufficient revenues to meet the Revenue Requirements of each respective system based upon the projected expenditures, capital project timing and costs, transfers, and billable customer units estimated for the Test Year. The proposed rates are based on an assumed implementation date of August 1, 2025. To the extent that the actual implementation date varies from the assumed implementation date, additional rate adjustments and/or appropriations from existing reserves may be necessary.
2. The estimated revenues and resulting rate adjustments for the remaining years of the Projection Period beyond the Test Year are developed based on the customer growth assumptions generated from the historical analyses and discussions with City staff.
3. Customer growth for the water and sewer systems is projected based on historical customer data as provided by the City as well as discussions with the City staff regarding developer activity and anticipated construction. If it turns out that the customer growth assumptions are not realized, the resulting revenues could be different than projected.
4. The projection of billable water and sewer flows is based on historical trends regarding the average flow per user for each customer class. The average water and sewer flow per account is developed from historical customer data and is assumed to remain relatively constant for the Projection Period. The historical billing data provided by the City was utilized to identify the average flow statistics for system customers. For the analyses developed herein, it is assumed that the average usage statistics for the Projection Period will be consistent with recent historical average usage levels as realized in recent years, or as otherwise assumed based on discussions with staff. When applying the estimated average usage statistics, it is assumed that the water and sewer
sales will increase with the estimated growth in customers. However, it is important to note that annual variations in rainfall and other climatological factors may influence the level of future water demands and the accompanying billable sewer flows for the City.
5. Future capital improvement projects are assumed to occur as reported by the City in its CIP. To the extent that the timing of such projects may change from that estimated herein, the cost of such projects and resulting impact on future rates and charges may vary from those indicated.
6. The proposed rates and rate structure are consistent with industry standards for rate-setting practices, comply with Proposition 218 and conform to the City’s financial policies with respect to:
a. Equitably recovering costs;
b. Being based upon the proportionate cost of providing services; and c. Generating sufficient revenue to recover system Revenue Requirements, fund capital needs, and meet reserve requirements.
6.3 Recommendations
Based on the reviews, analyses and assumptions addressed herein, as well as the resulting conclusions provided above, it is respectfully recommended that the City:
1. Adopt the proposed water and sewer rates.
2. Enact the proposed rates to become effective as of August 1, 2025 (or other such date as determined by the City). Based on the timing of the project and the required public hearing procedures and noticing requirements, it is expected that the proposed water and sewer rates will become effective on the recommended date.
3. Readdress the COS analysis portion of this study every three to five years to ensure costs are recovered consistently with COS principles and customer characteristics.
We appreciate the opportunity to be of service to the City in this engagement. In addition, we would like to thank City staff for the valuable assistance provided during the completion of the rate study.
Respectfully Yours,
WILLDAN FINANCIAL SERVICES
APPENDIX
DETAIL FOR THE COMPREHENSIVE
WATER & SEWER UTILITY RATE STUDY
COMPREHENSIVE WATER & SEWER UTILITY RATE STUDY FOR THE
CITY OF BUELLTON, CALIFORNIA
APPENDIX A
Revenue Requirement for
User Rates
APPENDIX - A
CITY OF BUELLTON, CA
Development of Rate Revenue Requirements
[A] [B] [C]=[A]*[B] [D] [E]=[A]*[D]
FY 2026 % to Water Water % to Sewer Sewer
1 Total Operating Revenues $ 4,899,483 $ 3,059,824 $ 1,839,659 Less:
Other Operating Revenues
2 Set-Up Fees $ 650 0% $ - 100% $ 650
3 Late Charges 5,000 0% - 100% 5,000
4 Interest 30,000 0% - 100% 30,000
5 Set-Up Fees 650 100% 650 0% -
6 Late Charges 5,000 100% 5,000 0% -
7 Bulk Water 8,500 100% 8,500 0% -
8 Service Reinstatement Fee 20 100% 20 0% -
9 Hydrant Permits 1,600 100% 1,600 0% -
10 Interest 125,000 100% 125,000 0% -
11 Total Other Operating Revenues 176,420 140,770 35,650 12 Total Rate Revenue Requirement $ 4,723,063 62% $ 2,919,054 38% $ 1,804,009 Test Year for Rate Revenue Requirement Line No: Description A - 1
APPENDIX B
Water Cost-of-Service
Analysis
APPENDIX - B
CITY OF BUELLTON, CA
Allocation of Test Year Costs to Water Function
Line No: Expense Group FY 2026
1 Treatment $950,756
2 Transmission & Distribution 209,873
3 Admin 915,912
4 Transfers 0
5 Existing Capital Lease 102,165
6 New Bond DS 0
7 CIP 2,650,000
8 Capital Outlay 23,690
9 Total $ 4,852,396
Test Year Revenue Requirement
B - 1
APPENDIX - B
CITY OF BUELLTON, CA
Water Customer and Equivalent Residential Unit Calculation - Test Year FY 2026 [A - 1] [B - 1] [C - 1] [D - 1] [E - 1] [F - 1] [G - 1] [H - 1] [I - 1] [J - 1] [K - 1] Class --> Single-Family Multi-Family Condo Mobile Homes Commercial - Retail
CommercialService School/Church Industrial Hydrant Sprinkler City Billing Basis--> Accounts Dwelling Units Dwelling Units Accounts Accounts Accounts Accounts Accounts Accounts Accounts Accounts 1 0.625 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 N/A N/A 1.00 2 0.75 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 N/A N/A 1.00 3 1.00 2.50 1.00 1.00 2.50 2.50 2.50 2.50 2.50 N/A N/A 2.50 4 1.50 5.00 1.00 1.00 5.00 5.00 5.00 5.00 5.00 N/A N/A 5.00 5 2.00 8.00 1.00 1.00 8.00 8.00 8.00 8.00 8.00 N/A N/A 8.00 6 3.00 15.00 1.00 1.00 15.00 15.00 15.00 15.00 15.00 N/A N/A 15.00 7 4.00 25.00 1.00 1.00 25.00 25.00 25.00 25.00 25.00 N/A 1.00 25.00 8 6.00 50.00 1.00 1.00 50.00 50.00 50.00 50.00 50.00 N/A 2.00 50.00 9 8.00 80.00 1.00 1.00 80.00 80.00 80.00 80.00 80.00 N/A 3.20 80.00 10 Hydrant 115.00 1.00 1.00 115.00 115.00 115.00 115.00 115.00 8.00 N/A 115.00 [A - 2] [B - 2] [C - 2] [D - 2] [E - 2] [F - 2] [G - 2] [H - 2] [I - 2] [J - 2] [K - 2] Class --> Single-Family Multi-Family Condo Mobile Homes Commercial - Retail
CommercialService School/Church Industrial Hydrant Sprinkler City Billing Basis--> Accounts Dwelling Units Dwelling Units Accounts Accounts Accounts Accounts Accounts Accounts Accounts Accounts 11 0.625 9 2 - - 1 1 - - - - - 13
12 0.75 1,189 157 280 - 15 44 - 7 - - 6 1,698
13 1.00 17 8 - - 8 37 - 12 - - 7 89
14 1.50 - 28 - - 4 15 2 4 - - 3 56
15 2.00 2 77 10 1 10 42 3 14 - - 14 173
16 3.00 - - - - - 2 1 1 - - - 4
17 4.00 - - - - - - - - - 26 - 26
18 6.00 - - - 1 - - - - - 46 - 47
19 8.00 - - - - - - - - - 6 - 6
20 Hydrant - - - - - - - - 7 - - 7
21 Total Monthly Customers 1,217 272 290 2 38 141 6 38 7 78 30 2,119 [A - 1] * [A - 2] [B - 1] * [B - 2] [C - 1] * [C - 2] [D - 1] * [D - 2] [E - 1] * [E - 2] [F - 1] * [F - 2] [G - 1] * [G - 2] [H - 1] * [H - 2] [I - 1] * [I - 2] [J - 1] * [J - 2] [K - 1] * [K - 2] Class --> Single-Family Multi-Family Condo Mobile Homes Commercial - Retail
CommercialService School/Church Industrial Hydrant Sprinkler City Billing Basis--> Accounts Dwelling Units Dwelling Units Accounts Accounts Accounts Accounts Accounts Accounts Accounts Accounts 22 0.625 9.00 2.00 - - 1.00 1.00 - - - - - 13.00
23 0.75 1,189.00 157.00 280.00 - 15.00 44.00 - 7.00 - - 6.00 1,698.00 24 1.00 42.50 8.00 - - 20.00 92.50 - 30.00 - - 17.50 210.50 25 1.50 - 28.00 - - 20.00 75.00 10.00 20.00 - - 15.00 168.00 26 2.00 16.00 77.00 10.00 8.00 80.00 336.00 24.00 112.00 - - 112.00 775.00 27 3.00 - - - - - 30.00 15.00 15.00 - - - 60.00
28 4.00 - - - - - - - - - 26.00 - 26.00
29 6.00 - - - 50.00 - - - - - 92.00 - 142.00
30 8.00 - - - - - - - - - 19.20 - 19.20
31 Hydrant - - - - - - - - 56.00 - - 56.00
32 Total Monthly Customers 1,256.50 272.00 290.00 58.00 136.00 578.50 49.00 184.00 56.00 137.20 150.50 3,167.70 Meter Equivalencies
Meter Size
Meter Size
Meter Size
Customer Accounts
Total Equivalent Residential Units
Line
No:
Line
No:
Line
No:
Total
Total
B - 2
APPENDIX - B
CITY OF BUELLTON, CA
Water Max Day/Hour Allocation Factors - Test Year FY 2026 [A] [B] [C] [D] [E] [F]
Flow Peak Month
(CCF)
Average
Month (CCF)
Max
Day/Avg
Day Factor
Max Day
Total
Capacity
(CCF/Day)
Max Day
Extra
Capacity
(CCF/Day)
Operating Statistics: MGD Factor
1 Avg Day Flow (MGD) 0.792 1.000
2 Max Day Flow (MGD) 1.583 1.999
3 Cost Allocation Factors: Base Max Day Max Hour
4 Base/Max Day 50.03% 49.97% 0.00%
Peaking Factors: [B] / [C]
Residential, Commerical, Industrial, and City
5 All Flow 55,565 34,842 1.59
Hydrant
6 All Flow 531 242 2.19
Sprinkler
7 All Flow - - 0.00
[D] x [B] [E] - [B]
Estimated Max Day/Hour Flows:
Total Annual
Flow (CCF)
Average
Daily Flow
(CCF)
Peaking
Factor
Total
Capacity
Extra
Capacity
Residential, Commerical, Industrial, and City
8 All Flow 421,883.84 1,155.85 1.59 1843.32 687.48
Hydrant
9 All Flow 2,016.00 5.52 2.19 12.11 6.59
Sprinkler
10 All Flow - - 0.00 0.00 0.00
11 Total 423,899.84 1,161.37 1855.43 694.06
Maximum Day
Line No: Description
B - 3
APPENDIX - B
CITY OF BUELLTON, CA
Water Units of Service by Cost Component - Test Year FY 2026 [A] [B] [C] [D]
ERUs
Accounts/
Units Base (CCF)
Max Day
(CCF/Day)
1 Residential, Commerical, Industrial, and City 2,974.50 2,034 421,883.84 687.48 2 All Flow 421,883.84 687.48
3 Hydrant 56.00 7 2,016.00 6.59
4 All Flow 2,016.00 6.59
5 Sprinkler 137.20 78 - -
6 All Flow - -
7 Total 3,167.70 2,119 423,899.84 694.06
Line No: Description
B - 4
APPENDIX - B
CITY OF BUELLTON, CA
Allocation of Water Costs - Test Year FY 2026
Line No: Description Water Costs Base Extra Capacity
Max Day
Meters &
Services Sprinklers Total (Check)
Allocation Factors:
1 Treatment 50.03% 49.97% 0.00% 0.00% 100.00%
2 Transmission & Distribution 50.03% 49.97% 0.00% 0.00% 100.00% 3 Admin 0.00% 0.00% 95.67% 4.33% 100.00%
4 Existing Capital Lease 0.00% 0.00% 100.00% 0.00% 100.00% 5 New Bond DS 0.00% 0.00% 100.00% 0.00% 100.00%
6 CIP 23.51% 23.49% 53.00% 0.00% 100.00%
7 Capital Outlay 0.00% 0.00% 100.00% 0.00% 100.00%
Allocation of Costs:
8 Treatment $ 950,756 $ 475,678 $ 475,078 $ - $ - $ 950,756 9 Transmission & Distribution 209,873 105,003 104,870 - - 209,873 10 Admin 915,912 - - 876,242 39,670 915,912
11 Existing Capital Lease 102,165 - - 102,165 - 102,165 12 New Bond DS - - - - - -
13 CIP 2,650,000 623,143 622,357 1,404,500 - 2,650,000
14 Capital Outlay 23,690 - - 23,690 - 23,690
15 Non-Rate Rev & Fund Balance (1,933,342) (479,640) (479,035) (958,862) (15,806) (1,933,342) 16 Total $ 2,919,054 $ 724,184 $ 723,270 $ 1,447,736 $ 23,864 $ 2,919,054 Total Units of Service 423,899.84 694.06 3,030.50 137.20 Units CCF CCF/Day ERU/Monthly ERU/Monthly
Cost Per Unit $ 1.7084 $ 1,042.0790 $ 39.8101 $ 14.4949 Units CCF CCF/Day ERU/Monthly ERU/Monthly
B - 5
APPENDIX - B
CITY OF BUELLTON, CA
Water Cost of Service by Cost Component and Customer Class - Test Year FY 2026 [A] [B] [C] [D]
ERUs Base (CCF) Max Day
(CCF/Day) Total
1 Residential, Commerical, Industrial, and City $ 1,420,983 $ 720,740 $ 716,405 $ 2,858,128 2 All Flow $ 720,740 $ 716,405
3 Hydrant $ 26,752 $ 3,444 $ 6,865 $ 37,061
4 All Flow $ 3,444 $ 6,865
5 Sprinkler $ 23,864 $ - $ - $ 23,864
6 All Flow $ - $ -
7 Total $ 1,471,600 $ 724,184 $ 723,270 $ 2,919,054
Line No: Description
B - 6
APPENDIX - B
CITY OF BUELLTON, CA
Water Rate Calculation - Test Year FY 2026
[A] [B] [C] [D] [E]
Capacity
Ratio Meter Charge Proposed Fixed Charge
Existing Fixed
Charge Difference
General Service
1 5/8 Inch 1.00 $ 39.81 $ 39.81 $ 35.51 $ 4.30
2 3/4 Inch 1.00 $ 39.81 $ 39.81 $ 35.51 $ 4.30
3 1.0 Inch 2.50 $ 99.53 $ 99.53 $ 96.89 $ 2.64
4 1.5 Inch 5.00 $ 199.05 $ 199.05 $ 191.90 $ 7.15
5 2.0 Inch 8.00 $ 318.48 $ 318.48 $ 301.60 $ 16.88
6 3.0 Inch 15.00 $ 597.15 $ 597.15 $ 646.19 $ (49.04)
7 4.0 Inch 25.00 $ 995.25 $ 995.25 $ 1,176.31 $ (181.06) 8 6.0 Inch 50.00 $ 1,990.51 $ 1,990.51 $ 2,511.90 $ (521.39) 9 8.0 Inch 80.00 $ 3,184.81 $ 3,184.81 $ 3,364.78 $ (179.97) 10 Hydrant 8.00 $ 318.48 $ 318.48 $ 50.00 $ 268.48
Sprinklers
11 4.0 Inch 1.00 $ 14.49 $ 14.49 $ 19.29 $ (4.80)
12 6.0 Inch 2.00 $ 28.99 $ 28.99 $ 28.53 $ 0.46
13 8.0 Inch 3.20 $ 46.38 $ 46.38 $ 38.58 $ 7.80
Line
No: Customer Class Base Rate Peaking Rate Proposed Rate ($/CCF) Existing Rate
($/CCF) Difference
Residential, Commerical, Industrial, and City
1 All Flow $ 1.71 $ 1.70 $ 3.41 $ 2.98 $ 0.43
Hydrant
2 All Flow $ 1.71 $ 3.41 $ 5.11 $ 12.69 $ (7.58)
Line
No: Customer Class Annual Use (CCF) Peaking Costs Peaking Unit Cost Residential, Commerical, Industrial, and City
1 All Flow 421,883.84 $ 716,405 $ 1.70
Hydrant
2 All Flow 2,016.00 $ 6,865 $ 3.41
3 Total 423,899.84 $ 723,270
Line
No: Description
B - 7
APPENDIX C
Sewer Cost-of-Service
Analysis
APPENDIX - C
CITY OF BUELLTON, CA
Allocation of Test Year Costs to Sewer Function
Line No: Expense Group FY 2026
1 Collection $179,735
2 Treatment 587,936
3 Administration 729,348
4 Transfers 0
5 Existing Capital Lease 64,635
6 New Bond DS 0
7 CIP 1,475,000
8 Capital Outlay 25,750
9 Total $ 3,062,404
Test Year Revenue Requirement
C - 1
APPENDIX - C
CITY OF BUELLTON, CA
Sewer Customer Account & Stength Characteristics by Customer Class - Test Year FY 2026 Total Total CCF BOD BOD TSS TSS
Accounts Units Flow Factor [1] Pounds Factor [1] Pounds Residential Classes
1 Single-Family 1,200 1,200 187,776 200 234,281 200 234,281 2 Multi-Family 408 556 30,243 200 37,733 200 37,733
3 Mobile Homes 2 319 25,440 200 31,741 200 31,741
4 Sub-Total Residential 1,610 2,075 243,459 303,755 303,755 Non-Residential Classes
Commercial
5 Commercial- Service 115 115 72,588 507 307,131 441 266,773 6 Commercial - Retail 28 28 2,268 150 2,837 150 2,837
7 Sub-Total Commercial 143 143 74,856 309,969 269,610
Institutional
8 School/Church 4 4 3,360 130 3,643 100 2,802
9 City 5 5 660 130 716 100 550
10 Sub-Total Institutional 9 9 4,020 4,358 3,353
Industrial
11 Industrial - Normal 19 19 4,742 168 6,644 29 1,147
12 Industrial - High 16 16 11,044 1,000 92,107 600 55,264 13 Sub-Total Industrial 35 35 15,786 98,751 56,411
14 Sewer System Total 1,797 2,262 338,121 716,833 633,129 Notes:
[1] Average strength factors for BOD and TSS are based on the State Water Resources Control Board Revenue Program Guidelines, Appendix G.
Line No: Description
C - 2
APPENDIX - C
CITY OF BUELLTON, CA
Allocation of Sewer Costs - Test Year FY 2026
Line No: Description Sewer Costs Volume Capacity Strength - BOD Strength - SS Admin Total (Check)
Allocation Factors:
1 Treatment 10.01% 10.01% 42.46% 37.52% 0.00% 100.00%
2 Collection 50.00% 50.00% 0.00% 0.00% 0.00% 100.00%
3 Administration 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 4 CIP 5.01% 5.01% 21.23% 18.75% 50.00% 100.00%
5 Capital Outlay 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 6 Existing Capital Lease 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 7 New Bond DS 0.00% 0.00% 0.00% 0.00% 100.00% 100.00%
Allocation of Costs:
8 Treatment $ 587,936 $ 58,852 $ 58,852 $ 249,663 $ 220,568 $ - $ 587,936 9 Collection 179,735 89,868 89,868 - - - 179,735
10 Administration 729,348 - - - - 729,348 729,348
11 CIP 1,475,000 73,860 73,860 313,175 276,605 737,500 1,475,000 12 Capital Outlay 25,750 - - - - 25,750 25,750
13 Existing Capital Lease 64,635 - - - - 64,635 64,635
14 New Bond DS - - - - - - -
15 Non-Rate Rev & Fund Balance (1,258,395) (91,462) (91,462) (231,280) (204,297) (639,894) (1,258,395) 16 Total $ 1,804,009 $ 131,118 $ 131,118 $ 331,558 $ 292,876 $ 917,339 $ 1,804,009 Total Units of Service 338,121 338,121 716,833 633,129 2,262 Units CCF CCF Pounds Pounds Units/Monthly
Cost Per Unit $ 0.39 $ 0.39 $ 0.46 $ 0.46 $ 33.80
Units CCF CCF Pounds Pounds Units/Monthly
C - 3
APPENDIX - C
CITY OF BUELLTON, CA
Sewer Cost of Service by Cost Component and Customer Class - Test Year FY 2026 [A] [B] [C] [D] [E] [F]
Volume Capacity Strength -
BOD Strength - SS Admin Total
1 Single-Family $ 72,817 $ 72,817 $ 108,362 $ 108,375 $ 486,652 $ 849,023 2 Multi-Family 11,728 11,728 17,453 17,455 225,482 283,845 3 Mobile Homes 9,865 9,865 14,681 14,683 129,368 178,463 4 Commercial 29,028 29,028 143,370 124,718 57,993 384,136 5 Institutional 1,559 1,559 2,016 1,551 3,650 10,335
6 Industrial - Normal 1,839 1,839 3,073 531 7,705 14,987 7 Industrial - High 4,283 4,283 42,602 25,564 6,489 83,221 8 Total $ 131,118 $ 131,118 $ 331,558 $ 292,876 $ 917,339 $ 1,804,009 Line No: Description
C - 4
APPENDIX - C
CITY OF BUELLTON, CA
Sewer Rate Calculation - Test Year FY 2026
[A] [B] [C]=[A]/[B]/12 [D] [E]=[C]-[D] [F] [G] [H]=[F]/[G] [I] [J]=[H]-[I] Fixed Rate
Costs
Monthly
Dwelling
Units
Proposed
Monthly Fixed
Fee
Existing
Monthly Fixed
Fee
Monthly Fixed
Fee
Difference
Volumetric
Rate Costs
Billable
Annual
Volume (CCF)
Proposed
Volumetric
Rate
Existing
Volumetric
Rate
Volumetric
Rate
Difference
1 Single-Family $ 849,023 1,200 $ 58.96 $ 30.45 $ 28.51 N/A N/A N/A N/A N/A 2 Multi-Family $ 283,845 556 $ 42.54 $ 30.45 $ 12.09 N/A N/A N/A N/A N/A 3 Mobile Homes $ 178,463 319 $ 46.62 $ 30.45 $ 16.17 N/A N/A N/A N/A N/A 4 Commercial $ 57,993 143 $ 33.80 $ 60.72 $ (26.92) $ 326,144 74,856 $ 4.36 $ 6.05 $ (1.69) 5 Institutional $ 3,650 9 $ 33.80 $ 29.98 $ 3.82 $ 6,685 4,020 $ 1.66 $ 0.56 $ 1.10 6 Industrial - Normal $ 7,705 19 $ 33.80 $ 46.76 $ (12.96) $ 7,281 4,742 $ 1.54 $ 7.26 $ (5.72) 7 Industrial - High $ 6,489 16 $ 33.80 $ 46.76 $ (12.96) $ 76,732 11,044 $ 6.95 $ 7.26 $ (0.31) Line
No: Customer Class
Non-Residential Classes
Residential Classes
C - 5
APPENDIX - C
CITY OF BUELLTON, CA
Sewer Revenue vs Cost of Service by Customer Class Check - Test Year FY 2026 [A] [B] [C]=[A]*[B]*12 [D] [E] [F]=[D]*[E] [G]=[C]+[F] [H] [I]=[H]-[G] Monthly
Dwelling Units
Proposed
Monthly Fixed
Fee
Total Fixed Fee
Revenue
Billable Annual
Volume (CCF)
Proposed
Volumetric
Rate
Total
Volumetric
Rate Revenues
Total
Calculated
Revenues
Total COS
Revenues
Difference
Calc vs COS
1 Single-Family 1,200 $ 58.96 $ 849,023 N/A N/A $ - $ 849,023 $ 849,023 $ - 2 Multi-Family 556 $ 42.54 $ 283,845 N/A N/A $ - $ 283,845 $ 283,845 $ - 3 Mobile Homes 319 $ 46.62 $ 178,463 N/A N/A $ - $ 178,463 $ 178,463 $ - 4 Commercial 143 $ 33.80 $ 57,993 74,856 $ 4.36 $ 326,144 $ 384,136 $ 384,136 $ - 5 Institutional 9 $ 33.80 $ 3,650 4,020 $ 1.66 $ 6,685 $ 10,335 $ 10,335 $ - 6 Industrial - Normal 19 $ 33.80 $ 7,705 4,742 $ 1.54 $ 7,281 $ 14,987 $ 14,987 $ - 7 Industrial - High 16 $ 33.80 $ 6,489 11,044 $ 6.95 $ 76,732 $ 83,221 $ 83,221 $ - 8 Total 2,262 $ 1,387,167 94,662 $ 416,842 $ 1,804,009 $ 1,804,009 $ - Line
No: Customer Class
C - 6
27368 Via Industria, Suite 200
Temecula, CA 92590
800.755.6864 | Fax: 888.326.6864
www.willdan.com
NOTICE OF PUBLIC HEARING REGARDING
PROPOSED CHANGES TO WATER AND SEWER RATES
Hearing Date & Time: July 10, 2025, 6:00 PM
Hearing Location: Buellton City Council Chambers
140 West Highway 246, Buellton, California 93427
Why are you receiving this notice?
The City of Buellton (City) is mailing this notice to you because you are a water and/or sewer (wastewater) customer, or record owner of property that receives one or both services. This notice is being provided pursuant to California Constitution Article XIIID (also known as “Proposition 218”), which requires the City to notify property owners and system users (customers) of proposed changes to property-related fees such as those for water or sewer service. This notice describes proposed changes to the rates for these services and provides information about a public hearing to be held on July 10, 2025, at the City Council Chambers, 140 West Highway 246, Buellton, California 93427. If adopted, the proposed rates for water and sewer service will be in effect for the first full billing cycle following August 1, 2025.
What do water and sewer rates fund?
The City provides water and wastewater service to its residents and customers and maintains critical infrastructure that ensures uninterrupted service and safeguards the health and safety of the community. The City operates a stable and wellfunctioning water system that delivers clean potable water to Buellton customers. Water is sourced primarily from groundwater pumped from the Buellton Uplands and Santa Ynez River basins, via four City-owned wells, supplemented as needed by treated State Water Project water. Groundwater is treated at one of two City treatment facilities and distributed to customers via a network of water transmission and distribution mains.
The City provides sewer service for residences, commercial, and industrial businesses, serving a population of approximately 5,500. The City’s collection and conveyance system is comprised of approximately twenty (20) miles of gravity pipelines, eight hundred and fifty (850) feet of force mains and two (2) public sewer lift stations. These facilities collect and convey wastewater to a City-owned, operated and maintained wastewater treatment plant for safe treatment and disposal in accordance with regulatory requirements.
The purpose of a Water and Sewer Rate Study is to evaluate the current financial condition of both utilities, examine the costs necessary to provide service to customers and determine the level of funding required over the next five years. The result is a recommended plan that ensures each utility fund meets projected financial obligations for operations and maintenance and capital infrastructure improvements, to ensure continued safe and efficient operations, while maintaining sufficient reserves for cash flow management and emergencies. Updating rates to keep up with the costs of providing reliable, safe, and high-quality drinking water and wastewater services is a key component of maintaining financial viability of the utilities.
The rate structures for each utility were designed so that revenues from proposed rates do not exceed the amount of revenue required to provide the services, nor will rate revenue be used for any purposes other than those for which they are imposed.
Why are water and sewer rate changes needed?
The utility rate study and financial plan determined that the City’s current rates are not sufficient to meet the increasing costs of system operations, maintenance and capital projects, administrative support for operations, repair and replacement of aging system components, maintenance of designated reserves, and capital facilities projects necessary to ensure uninterrupted service and compliance with regulatory mandates. Over the last few fiscal years, the sewer fund has operated at a deficit. Even with efforts taken by staff to reduce expenditures, the trend is projected to continue.
The City has not increased water or sewer rates since 2018 while costs have continued to escalate over that same period. The City has carefully managed revenues and expenses to mitigate the impacts of inflation. However, budget impacts make it necessary to seek increases in water and sewer rates. The proposed rates are based on a comprehensive utility rate study and financial plan completed by an independent consultant. This report is available for review with the City Clerk.
The amount of the proposed rates imposed on any parcel or person as an incidence of their property ownership will not exceed the proportional cost of the service(s) attributable to such parcel, and no rate will be imposed for service unless that service is actually used by, or immediately available to, the property owner or customer in question.
How the water and sewer rates are determined and how they work To develop rates that generate sufficient revenue to meet the fiscal and policy objectives of the City for each utility, a determination of the annual revenue requirements from water and sewer rates was completed. As previously mentioned, revenue requirements include projected expenditures for operations, maintenance, repair and replacement of aging system components, equipment and capital projects. The revenue requirement for each utility also includes designated reserves.
Maintaining appropriate reserves is critical to the ability of the City to serve its customers and respond to unforeseen and unpredictable costs. The reserves may only be used to fund costs associated with those systems.
Revenue requirements were compared to sources of available funds under existing rates during each year of the forecast period to determine whether projected revenues are sufficient to meet those requirements. Where a shortage of revenue was found, revenue adjustments were calculated, which if implemented, will provide revenue to meet those needs.
The City is proposing to implement new water and sewer rates as a series of annual adjustments starting on August 1, 2025, and then each July 1 thereafter until July 2029. The following sections summarize the proposed rates, which will go into effect and remain in effect until superseded by Council action.
Proposed Monthly Water Rates - August 1, 2025 through July 1, 2029 Proposed water rates consist of 1) a monthly fixed charge for all customers, except sprinkler-only accounts that have specific charges, that varies based on meter size and is the minimum amount a customer will pay regardless of the amount of water used; and 2) a uniform volumetric rate per 100 cubic feet (100 cubic feet = 1 unit of water = 748 gallons) for customers based upon monthly metered use. Water from hydrants has a separate rate. The fixed charge recovers fixed costs of maintaining and operating utility infrastructure and facilities, while the volumetric rate recovers variable costs of pumping, treating, and distributing water. The rate structure was designed so that each customer will be charged an amount that represents their proportional share of the City’s cost of serving them, based on their demand and usage characteristics. 2025 2026 2027 2028 2029
Monthly Fixed Charge:
5/8 - 3/4 Inch $ 35.51 $ 39.81 $ 43.79 $ 48.17 $ 52.51 $ 56.71
1.0 Inch $ 96.89 $ 99.53 $ 109.48 $ 120.43 $ 131.26 $ 141.77
1.5 Inch $ 191.90 $ 199.05 $ 218.96 $ 240.85 $ 262.53 $ 283.53
2.0 Inch $ 301.60 $ 318.48 $ 350.33 $ 385.36 $ 420.04 $ 453.65
3.0 Inch $ 646.19 $ 597.15 $ 656.87 $ 722.55 $ 787.58 $ 850.59
4.0 Inch 1,176.31$ $ 995.25 1,094.78$ 1,204.26$ 1,312.64$ 1,417.65$
6.0 Inch 2,511.90$ 1,990.51$ 2,189.56$ 2,408.51$ 2,625.28$ 2,835.30$
8.0 Inch 3,364.78$ 3,184.81$ 3,503.29$ 3,853.62$ 4,200.45$ 4,536.48$ Hydrant $ 50.00 $ 318.48 $ 350.33 $ 385.36 $ 420.04 $ 453.65 Additional Dwelling Units [1] $ 24.86 $ 39.81 $ 43.79 $ 48.17 $ 52.51 $ 56.71 Monthly Fixed Charge - Sprinklers:
4.0 Inch $ 19.29 $ 14.49 $ 15.94 $ 17.54 $ 19.12 $ 20.65
6.0 Inch $ 28.53 $ 28.99 $ 31.89 $ 35.08 $ 38.23 $ 41.29
8.0 Inch $ 38.58 $ 46.38 $ 51.02 $ 56.12 $ 61.18 $ 66.07 Volumetric Rates Per 100 Cubic Feet:
Residential, Commerical, Industrial, and City $ 2.98 $ 3.41 $ 3.75 $ 4.12 $ 4.49 $ 4.85 Hydrant $ 12.69 $ 5.11 $ 5.62 $ 6.19 $ 6.74 $ 7.28
Notes:
Description Existing
Rates
Projected For Fiscal Year Beginning July 1:
[1] Under the proposed rates, all "Additional Dwelling Units" will now be billed at the 5/8-3/4 inch meter rate per dwelling unit.
Proposed Monthly Sewer Rates - August 1, 2025 through July 1, 2029 Proposed sewer rates consist of 1) monthly fixed charges for residential and non-residential customers, regardless of usage, based on their relative demand characteristics and 2) Volumetric rates per 100 cubic feet (100 cubic feet = 1 unit of water = 748 gallons) for non-residential customers only, that vary by sewer discharge strength for various non-residential customer categories. Single-family customers pay a flat monthly fixed charge regardless of usage. Multi-family customers pay a flat fixed charge per unit. Fixed charges recover fixed costs associated with operation and maintenance of sewer collection and treatment facilities, while volumetric rates recover variable costs of treatment and disposal of wastewater. The rate structure was designed so each customer will be charged an amount proportional to the cost of serving them, based on their demand, discharge strength and usage characteristics.
2025 2026 2027 2028 2029
Monthly Fixed Charge [1]:
Single Family Dwelling $ 30.45 $ 58.96 $ 82.54 $ 94.93 $ 99.67 $ 103.66 Multiple Dwelling $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Townhomes & Condos $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Apts $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Per Additional Unit $ 21.31 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Mobile Home Parks $ 30.45 $ 46.62 $ 65.27 $ 75.06 $ 78.81 $ 81.96 Mobile Home Parks - Per Additional Unit $ 15.22 $ 46.62 $ 65.27 $ 75.06 $ 78.81 $ 81.96 Motels - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Restaurant - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Fast Food/Bar - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Theaters/Banquet - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks (Unmetered) $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks - Per Additional Space $ 15.22 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks (Metered) $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Schools $ 29.98 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Churches (w/o School) $ 29.98 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Other Commercial - Retail $ 68.44 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Industrial Accounts $ 46.76 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 City Accounts $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Volumetric Rates Per 100 Cubic Feet [2]:
Motels - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Restaurant - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Fast Food/Bar - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Theaters/Banquet - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Camper/Trailer Parks (Metered) $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Schools $ 0.56 $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92
Churches (w/o School) $ 0.56 $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92 Other Commercial - Retail $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Industrial Accounts - Normal $ 7.26 $ 1.54 $ 2.15 $ 2.47 $ 2.60 $ 2.70 Industrial Accounts - High $ 7.26 $ 6.95 $ 9.73 $ 11.19 $ 11.75 $ 12.22 City Accounts $ - $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92
Notes:
Projected For Fiscal Year Beginning July 1:
[1] All single-family residential, multi-family residential, and mobile home customers only pay a flat fee per dwelling unit, regardless of usage.
[2] Under the existing rates, non-residential customers pay the volumetric rate per 100 cubic feet once they exceed 1,400 cubic feet of usage. Under the proposed rates, non-residential customers will pay the volumetric rate per 100 cubic feet for all usage.
Description Existing
Rates
Impact on your water and sewer bill
Per the proposed rates effective August 1, 2025, the combined water and sewer bill for a typical single-family home using 1,200 cubic feet of water per monthly billing period would increase from $101.72 currently, to $139.65 per monthly billing period. The accompanying graph provides a summary of existing and proposed rates under various usage scenarios.
How do you file a protest or participate in the public hearing? The City will consider the new water and sewer rates at a Public Hearing on Thursday, July 10, 2025, at 6:00 p.m. at the City Council Chambers, 140 West Highway 246, Buellton, California 93427. You are invited to present oral or written testimony at the Public Hearing. Any owner, or customer of record, of a parcel subject to the proposed rates may submit a written protest against the proposed rate revisions. If written protests are filed for a majority of the affected parcels, the proposed rate revisions will not be adopted. If you do not object to the proposed rate revisions to fund the operation, maintenance, and capital improvements for City water and wastewater services, you do not need to take any action.
In order for a written protest to be counted, it must include the following: a statement indicating that the identified property owner or customer of record is in opposition to the proposed water or sewer rate changes; the street address or Assessor's Parcel Number (APN) for the parcel(s) with respect to which the protest is made; and the name and signature of the owner or customer. Protests may be mailed, or hand delivered, to the City Clerk at 140 West Highway 246, Buellton, California 93427, prior to 2:00 p.m. on July 10, 2025, or hand delivered to the City Clerk at the Public Hearing on July 10, 2025. To be counted, a signed written protest must be received by the City Clerk before the conclusion of the Public Hearing. Protests submitted via e-mail or other electronic means will not be accepted. For any written protest, whether mailed or submitted in person to the City Clerk, please identify on the front of the envelope that the enclosed protest is for the Public Hearing on the Proposed Rate Changes – Water and Sewer Rates.
The City Council will consider all written and oral protests related to the proposed rate changes at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, there will be no more written protests accepted and no more testimony taken, and the City Council will consider adoption of the proposed rates described in this notice. If written protests, as outlined above, are not presented by a majority of property owners or customers of record, the City Council will be authorized to adopt the proposed rates. While both property owners and customers of record may submit written protests, only one protest will be counted for each parcel. If adopted, the rates for water and sewer service will be in effect beginning August 1, 2025.
In accordance with Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge, commencing from the later of the effective date of the new rates or of the date of the final passage, adoption, or approval of the resolution adopting the new rates. $77.88
$89.80
$101.72
$125.56
$112.40
$126.02
$139.65
$166.90
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
400 CF 800 CF 1,200 CF 2,000 CF
Existing Bill Proposed Bill
CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 13
To: The Honorable Mayor and City Council
From: Andrea Keefer, Planning Director
Meeting Date: May 8, 2025
Subject: Consideration of a New Contract with Metro Ventures Ltd. for Irma L. Tucker to Provide Professional Planning Services
______________________________________________________________________________
BACKGROUND
The contract for Irma L. Tucker of Metro Ventures, for professional planning services, expires on May 11, 2025. Ms. Tucker has assisted the Planning Department by taking on major special projects and work that is subject to reimbursement by major developers, to reduce the overall Department workload and to provide essential staffing coverage during a period of time of significant workload in the Planning Department.
Ms. Tucker has worked at total of 510.5 hours from May 11, 2024 through March 31, 2025.
This is approximately 79% of the total allowable under the current Metro Ventures contract. 222 of those 510.5 hours have been billed to private projects for reimbursement. Therefore, the total charged to the City during this 10.5-month period is $51,050, including $22,200 of that amount billed to private projects, and reimbursed to the City. Additionally, 288.5 hours have been billed toward long range planning efforts, including work on the Comprehensive General Plan Update, and other administrative tasks, for a total of $28,850, which is nonreimbursable to the City. This is consistent with the scope of the Metro Ventures contract being major special projects and reimbursable work.
Under the current contract, Ms. Tucker has spent a large portion of her contract hours on tasks which were reimbursed through private development accounts (222 hours total). This is consistent with the current contract, which allows for up to 312 hours of non-reimbursable work. If a new contract is approved, Ms. Tucker would continue to work primarily on private development projects within the Avenue of Flags Specific Plan area, as well as assist the City in the preparation of the Comprehensive General Plan Update. Hours spent working on private development projects would be reimbursable to the City by the developer. Currently, there are six large development projects on the Avenue of Flags that are active and that staff anticipates will require review, coordination, and plan check with the Planning Department over the next couple of years.
The Planning Department is also currently working in earnest on a Comprehensive General Plan Update. Given the complexities and detailed requirements placed on cities when preparing a General Plan Update, the City would benefit from Ms. Tucker’s continued services assisting with the timely completion of this project. Ms. Tucker has been an integral team member thus far on this project, and her experience and knowledge of the project would continue to be a great resource for the City.
The proposed contract would maintain the general scope of Ms. Tucker’s services to the City of Buellton, as compared to her current contract. However, Staff is requesting that the contract be for a total of two years (the current contract is for one year). The reason for this is to help maintain the necessary level of staffing for the Planning Department while the Department enters into what is expected to be a very active two-year period. The Planning Department has had an influx in private development project submittals (primarily within the Avenue of Flags Specific Plan area), and Staff is also currently undertaking the largest long-range planning effort that the Department undertakes (Comprehensive General Plan Update), which typically only occurs once every 20 years.
Under the proposed terms of the new contract, a total of 1300 hours would be authorized over the two-year period, with a minimum of 676 out of 1300 total contract hours (54%) required to be billed to private developers for reimbursable work, and the remaining hours can be billed for work which is reimbursable through the General Fund. This will result in a maximum impact to the General Fund of $62,400.
The below list of projects are the projects that Ms. Tucker would be tasked with under the proposed contract:
Long Range:
• Assistance with Comprehensive General Plan Update
Current Planning – Avenue of Flags Projects:
• Creekside Village Mixed Use Project, 480 Avenue of Flags • The 518 Mixed Use Project, 518 Avenue of Flags
• Arco AM/PM Gas Station/Convenience Store
• Highway 246 Commercial Project
• Former Pea Soup Andersen’s Site
• Shell Gas Station Expansion Project
• Other inquiries for potential projects within AOF Specific Plan The total proposed contract would be for an amount of $62,400 (non-reimbursable amount), at $100 per hour. This would anticipate an average of approximately 12.5 hours per week over a period of two years (or 1300 total hours), ending on May 12, 2027. However, the contract would require that 676 hours would be reimbursable from private developers; thereby the total impact to the City’s General Fund would not exceed $62,400 (624 total hours). The contract would not exceed the amount listed above without separate review and approval by City Council.
Given the current influx in private development projects, coupled with the comprehensive General Plan Update occurring concurrently, Ms. Tucker’s services will be invaluable to help alleviate delays and allow the Planning Department to continue to provide timely services.
This independent consultant position does not include any benefits, which are provided to Ms. Tucker through her employer or otherwise. Metro Ventures is a private company that employs Ms. Tucker and regularly makes her available to cities and other entities needing planning expertise. Under the existing contract, Ms. Tucker is given assignments of major projects with key due dates, and she then works out the best schedule for the completion of her tasks. In addition, she is required to check in at City Hall at least twice a month but otherwise determines whether she will work at City Hall or at her home office, depending on the work to be done and her overall schedule.
FISCAL IMPACT
The total fiscal impact to the City would be $62,400. A budget amendment would be required. It is required that a portion of her contract will be covered by private development reimbursement. The maximum fiscal impact to the City including developer-reimbursable work would be $130,000, over a two-year period.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to enter into a new contract for Contract Planning Services with Metro Ventures Ltd. beginning May 12, 2025 and ending on May 12, 2027, for a total contract amount not to exceed $62,400 of funds not reimbursed by developers, with a rate of $100 per hour.
ATTACHMENTS
Attachment 1 – Draft Contract
AGREEMENT FOR PLANNING PROJECT SERVICES
BETWEEN
CITY OF BUELLTON
AND
METRO VENTURES LTD.
This AGREEMENT FOR PLANNING PROJECT SERVICES BETWEEN THE CITY OF BUELLTON and METRO VENTURES LTD. (“AGREEMENT”), is made and entered into this 12th day of May, 2025 by and among the CITY OF BUELLTON a municipal corporation (“CITY”) and METRO VENTURES LTD., a California business entity (“CONSULTANT”).
In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
SECTION 1. TERM OF AGREEMENT.
Subject to the provisions of SECTION 19 “TERMINATION OF AGREEMENT” of this AGREEMENT, the term of this AGREEMENT shall be for a period commencing May 12, 2025 and continuing through May 12, 2027. Such term may be extended upon written agreement of both parties to this AGREEMENT.
Notwithstanding the foregoing, the City Manager and Planning Director shall have the responsibility to review CONSULTANT’s workload and performance on the first business day of August 2025, November 2025, February 2026, May 2026, August 2026, November 2026, February 2027, and May 2027 and may reduce the SCOPE OF SERVICES or may terminate the AGREEMENT pursuant to Section 19 if it is found that the SCOPE OF SERVICES can be carried out by CITY staff without CONSULTANT’s assistance.
SECTION 2. SCOPE OF SERVICES.
CONSULTANT agrees to perform the services set forth in EXHIBIT “A”, “SCOPE OF SERVICES” and made a part of this AGREEMENT.
SECTION 3. ADDITIONAL SERVICES.
CONSULTANT shall not be compensated for any services rendered in connection with its performance of this AGREEMENT which are in addition to or outside of those set forth in this AGREEMENT or listed in EXHIBIT “A” unless such additional services are authorized in advance and in writing by the City Council or City Manager of CITY. CONSULTANT shall be compensated for any such additional services in the amounts and in the manner agreed to by the City Council or City Manager.
SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
Subject to any limitations set forth in this AGREEMENT, CITY agrees to pay CONSULTANT the amounts specified in EXHIBIT “A” and made a part of this AGREEMENT, Each month CONSULTANT shall furnish to CITY an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges for labor only (by sub-category). CITY may provide office space and supplies, which CONSULTANT may choose to use. Time spent on travel and mileage to and from home are not
included as part of this AGREEMENT, however the CONSULTANT shall be compensated for travel time and mileage incurred using a private vehicle while performing services under this AGREEMENT as authorized by the City Manager. CITY shall independently review each invoice submitted by the CONSULTANT to determine whether the work performed and expenses incurred are in compliance with the provisions of this AGREEMENT. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to the terms set forth in subsection (c). In the event CITY disputes any charges or expenses, the original invoice shall be returned by CITY to CONSULTANT for correction and resubmission.
Except as to any charges for work performed or expenses incurred by CONSULTANT which are disputed by CITY, CITY will use its best efforts to cause CONSULTANT to be paid within thirty (30) days of receipt of CONSULTANT invoice.
Payment to CONSULTANT for work performed pursuant to this AGREEMENT shall not be deemed to waive any defects in work performed by CONSULTANT.
SECTION 5. INSPECTION AND FINAL ACCEPTANCE.
CITY may inspect and accept or reject any of CONSULTANTs work under this AGREEMENT, either during performance or when completed. CITY shall reject or finally accept CONSULTANTs work within sixty (60) days after submitted to CITY. CITY shall reject work by a timely written explanation, otherwise CONSULTANTs work shall be deemed to have been accepted. CITY’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as amount to fraud. Acceptance of any of CONSULTANTs work by CITY shall not constitute a waiver of any of the provisions of this AGREEMENT including, but not limited to, sections 15 and 16, pertaining to indemnification and insurance, respectively.
SECTION 6. OWNERSHIP OF DOCUMENTS.
All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared, developed or discovered by CONSULTANT in the course of providing any services pursuant to this AGREEMENT shall become the sole property of CITY and may not be used, reused or otherwise disposed of by CITY without the permission of the CONSULTANT. Upon completion, expiration or termination of this AGREEMENT, CONSULTANT shall turn over to CITY all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.
SECTION 7. CONSULTANTS BOOKS AND RECORDS.
CONSULTANT shall maintain any and all documents and records demonstrating or relating to CONSULTANTs performance of services pursuant to this AGREEMENT. CONSULTANT shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to work, services, expenditures and disbursements charged to CITY pursuant to this AGREEMENT. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently complete and detailed so as to permit an accurate evaluation of the services provided by CONSULTANT pursuant to this AGREEMENT. Any and all such documents or records shall be maintained for three years from the date of execution of this AGREEMENT and to the extent required by laws relating to audits of public agencies and their expenditures.
Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit and copying, at any time during regular business hours, upon written request by CITY or its designated representative. Copies of such documents or records shall be provided directly to the CITY for inspection, audit and copying when it is practical to do so; otherwise, unless an alternative is mutually agreed upon, such documents and records shall be made available at CONSULTANTs address indicated for receipt of notices in this AGREEMENT.
Where CITY has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or discarded due to dissolution or termination of CONSULTANTs business, CITY may, by written request, require that custody of such documents or records be given to the requesting party and that such documents and records be maintained by the requesting party. Access to such documents and records shall be granted to CITY, as well as to its successors-in-interest and authorized representatives.
SECTION 8. STATUS OF CONSULTANT.
CONSULTANT is and shall at all times remain a wholly independent contractor and not an officer, employee or agent of CITY. CONSULTANT shall have no authority to bind CITY in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against CITY; whether by contract or otherwise, unless such authority is expressly conferred under this AGREEMENT or is otherwise expressly conferred in writing by CITY.
The personnel performing the services under this AGREEMENT on behalf of CONSULTANT shall at all times be under CONSULTANT’s exclusive direction and control.
Neither CITY nor any elected or appointed boards, officers, officials, employees or agents of CITY, shall have control over the conduct of CONSULTANT or any of CONSULTANTs officers, employees or agents, except as specifically set forth in this AGREEMENT. Neither CONSULTANT nor any of CONSULTANT’s officers, employees or agents shall at any time or in any manner represent that they, or any of them, are in any manner officials, officers, employees or agents of CITY.
Neither CONSULTANT nor CONSULTANT’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to CITY’s employees. To the fullest extent permitted by any applicable law(s), CONSULTANT expressly waives any claim(s) CONSULTANT or CONSULTANT’s officers, employees or agents may have to any such rights.
SECTION 9. STANDARD OF PERFORMANCE.
CONSULTANT represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the services required under this AGREEMENT in a thorough, competent and professional manner. CONSULTANT shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. In meeting its obligations under this AGREEMENT, CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of CONSULTANT under this AGREEMENT.
SECTION 10. COMPLIANCE WITH APPLICABLE LAWS, PERMITS AND LICENSES.
CONSULTANT shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this AGREEMENT. CONSULTANT shall obtain any and all licenses, permits and authorizations necessary to perform the services set forth in this AGREEMENT. Neither CITY, nor any elected or appointed boards, officers, officials, employees or agents of CITY, shall be liable, at law or in equity, as a result of any failure of CONSULTANT to comply with this section.
SECTION 11. NONDISCRIMINATION.
Basic Provisions. In performing the Work, CONSULTANT agrees as follows:
(1) CONSULTANT will not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, sexual orientation, or military and veteran status. (as those terms are defined by the California Fair Employment and Housing Act—Government Code Section 12900-12996), except where such discrimination is based on a bona fide occupational qualification. CONSULTANT will take positive action or ensure that applicants are employed, and that employees are treated during employment with CONSULTANT, without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, sexual orientation, or military and veteran status. (as those terms are defined by the California Fair Employment and Housing Act—Government Code Section 12900-12996), except where such discrimination is based on a bona fide occupational qualification. Such action shall include but not be limited to the following: Employment upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. CONSULTANT agrees to post in conspicuous places, available to its employees and applicants for employment, notices to be provided by CITY setting forth the provisions of this nondiscrimination clause. (2) CONSULTANT will, in all solicitations or advertisements for employees placed by or on behalf of CONSULTANT, state that all qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, sexual orientation, or military and veteran status. (as those terms are defined by the California Fair Employment and Housing Act—Government Code Section 12900-129961), except where such discrimination is based on a bona fide occupational qualification. (3) CONSULTANT will comply with all applicable training requirements under state and federal harassment prevention laws for its officers, employees or agents and otherwise take reasonable steps to prevent harassment of CITY employees by CONSULTANT’s officers, employees and agents on the basis of their actual or perceived race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, sexual orientation, or military and veteran status.
SECTION 12. UNAUTHORIZED ALIENS.
CONSULTANT hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §1101, et seq. as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should CONSULTANT so employ such unauthorized aliens for the performance of work and/or services covered by this AGREEMENT, and should any liability or sanctions be imposed against CITY for
such use of unauthorized aliens, CONSULTANT hereby agrees to and shall reimburse CITY for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by CITY.
SECTION 13. CONFLICTS OF INTEREST.
CONSULTANT covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of CITY or which would in any way hinder CONSULTANTs performance of services under this AGREEMENT. CONSULTANT further covenants that in the performance of this AGREEMENT, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the City Manager.
CONSULTANT agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of CITY in the performance of this AGREEMENT.
CITY understands and acknowledges that CONSULTANT is, as of the date of execution of this AGREEMENT, independently involved in the performance of services for other governmental agencies, community organizations, and/or private parties. CONSULTANT is unaware of any stated position of CITY relative to such projects. Any future position of CITY on such projects shall not be considered a conflict of interest for purposes of this section.
SECTION 14. CONFIDENTIAL INFORMATION; RELEASE OF INFORMATION.
All information gained or work product produced by CONSULTANT in performance of this AGREEMENT shall be considered confidential, unless such information is in the public domain or already known to CONSULTANT. CONSULTANT shall not release or disclose any such information or work product to persons or entities other than CITY without prior written authorization from the City Manager, except as may be required by law.
CONSULTANT, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of CITY, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this AGREEMENT. Response to a subpoena or court order shall not be considered “voluntary” provided CONSULTANT gives CITY notice of such court order or subpoena.
If CONSULTANT, or any officer, employee, agent or subcontractor of CONSULTANT, provides any information or work product in violation of this AGREEMENT, then CITY shall have the right to reimbursement and indemnity from CONSULTANT for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of CONSULTANT’s conduct.
CONSULTANT shall promptly notify CITY should CONSULTANT, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this AGREEMENT and the work performed thereunder. CITY retains the right, but has no obligation, to represent CONSULTANT or be present at any deposition, hearing or similar proceeding. CONSULTANT agrees to cooperate fully with CITY and to provide CITY with the opportunity to review any response to discovery requests provided by CONSULTANT, However, this right to review any
such response does not imply or mean the right by CITY to control, direct, or rewrite said response.
SECTION 15. INDEMNIFICATION.
INDEMNITY FOR OTHER THAN PROFESSIONAL LIABILITY: Other than in the performance of professional services and to the full extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, and any and all of its boards, employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this AGREEMENT by CONSULTANT or by any individual or entity for which CONSULTANT is legally liable, including but not limited to officers, agents, employees or subcontractors of CONSULTANT. INDEMNITY FOR PROFESSIONAL LIABILITY: With respect to the performance of professional services, CONSULTANT shall indemnify, defend, and hold harmless CITY and the above-listed indemnitees to the greatest extent allowable by California law and this AGREEMENT shall not be construed to require CONSULTANT to indemnify, defend, or hold harmless City or said indemnitees in violation of any provision of California law.
SECTION 16. INSURANCE.
CONSULTANT agrees to obtain and maintain in full force and effect during the term of this AGREEMENT the insurance policies set forth in EXHIBIT “B” “INSURANCE” and made a part of this AGREEMENT. All insurance policies shall be subject to approval by CITY as to form and content. These requirements are subject to amendment or waiver if so approved in writing by the City Manager. CONSULTANT agrees to provide CITY with copies of required policies upon request.
SECTION 17. ASSIGNMENT.
The expertise and experience of CONSULTANT are material considerations for this AGREEMENT. CITY has an interest in the qualifications of and capability of the persons and entities who will fulfill the duties and obligations imposed upon CONSULTANT under this AGREEMENT. In recognition of that interest, CONSULTANT shall not assign or transfer this Agreement or any portion of this AGREEMENT or the performance of any of CONSULTANTs duties or obligations under this AGREEMENT without the prior written consent of the City Council.
Any attempted assignment shall be ineffective, null and void, and shall constitute a material breach of this AGREEMENT entitling CITY to any and all remedies at law or in equity, including summary termination of this AGREEMENT. CITY acknowledges, however, that CONSULTANT, in the performance of its duties pursuant to this AGREEMENT, may utilize subcontractors.
SECTION 18. CONTINUITY OF PERSONNEL.
CONSULTANT shall make every reasonable effort to maintain the stability and continuity of CONSULTANTs staff assigned to perform the services required under this AGREEMENT. CONSULTANT agrees that the staff currently assigned to perform the services required under this AGREEMENT is Irma Tucker and that CONSULTANT shall notify CITY of any changes in CONSULTANTs staff assigned to the CITY prior to any such changes taking place.
SECTION 19. TERMINATION OF AGREEMENT.
CITY may terminate this AGREEMENT, with or without cause, at any time by giving thirty (30) days written notice of termination to CONSULTANT. In the event such notice is given, CONSULTANT shall cease immediately all work in progress.
CONSULTANT may terminate this AGREEMENT at any time upon thirty- (30) day’s written notice of termination to CITY.
If either CONSULTANT or CITY fail to perform any material obligation under this AGREEMENT, then, in addition to any other remedies, either CONSULTANT, or CITY may terminate this AGREEMENT immediately upon written notice.
Upon termination of this AGREEMENT by either CONSULTANT or CITY, all property belonging exclusively to CITY, which is in CONSULTANTs possession, shall be returned to CITY. CONSULTANT shall furnish to CITY a final invoice for work performed and expenses incurred by CONSULTANT, prepared as set forth in SECTION 4 of this AGREEMENT.
This final invoice shall be reviewed and paid in the same manner as set forth in SECTION 4 of this AGREEMENT.
SECTION 20. DEFAULT.
In the event that CONSULTANT is in default under the terms of this AGREEMENT, the CITY shall not have any obligation or duty to continue compensating CONSULTANT for any work performed after the date of default and may terminate this AGREEMENT immediately by written notice to the CONSULTANT,
SECTION 21. EXCUSABLE DELAYS.
CONSULTANT shall not be liable for damages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of CONSULTANT. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of federal, state or local governments, acts of CITY, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. The term and price of this AGREEMENT shall be equitably adjusted for any delays due to such causes.
SECTION 22. COOPERATION BY CITY.
All public information, data, reports, records, and maps as are existing and available to CITY as public records, and which are necessary for carrying out the work as outlined in the EXHIBIT “A” “SCOPE OF SERVICES”, shall be furnished to CONSULTANT in every reasonable way to facilitate, without undue delay, the work to be performed under this AGREEMENT.
SECTION 23. NOTICES.
All notices required or permitted to be given under this AGREEMENT shall be in writing and shall be personally delivered, transmitted by electronic means, or sent by certified mail, postage prepaid and return receipt requested, addressed as follows:
To CITY: City of Buellton
Attn: Scott Wolfe
P.O. Box 1819
107 W. Highway 246
Buellton, CA 93427
E-mail: [email protected]
To: Metro Ventures, Ltd.
Attn: Irma L. Tucker
E-mail: [email protected]
Notice shall be deemed effective on the date personally delivered, transmitted by electronic means with receipt acknowledged by recipient, or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service.
SECTION 24. AUTHORITY TO EXECUTE.
The person or persons executing this AGREEMENT on behalf of CONSULTANT represents and warrants that he/she/they has/have the authority to so execute this AGREEMENT and to bind CONSULTANT to the performance of its obligations hereunder.
SECTION 25. BINDING EFFECT.
This AGREEMENT shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.
SECTION 26. MODIFICATION OF AGREEMENT.
No amendment to or modification of this AGREEMENT shall be valid unless made in writing and approved by the CONSULTANT and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. In the event of any conflict between the terms and conditions of this AGREEMENT and attached Exhibit “A”, the terms and conditions of this AGREEMENT shall control. In the event of any conflict between the terms and conditions of this AGREEMENT and any attached exhibits, the terms and conditions of this AGREEMENT will control.
SECTION 27. WAIVER.
Waiver by any party to this AGREEMENT of any term, condition, or covenant of this AGREEMENT shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this AGREEMENT shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this AGREEMENT. Acceptance by CITY of any work or services by CONSULTANT shall not constitute a waiver of any of the provisions of this AGREEMENT.
SECTION 28. LAW TO GOVERN; VENUE.
This AGREEMENT shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial
courts shall lie exclusively in the County of Santa Barbara. In the event of litigation in a U.S.
District Court, venue shall lie exclusively in the Central District of California, in Los Angeles.
SECTION 29. ATTORNEYS FEES, COSTS AND EXPENSES.
In the event litigation or other proceeding is required to enforce or interpret any provision of this AGREEMENT, the prevailing party in such litigation or other proceeding shall be entitled to an award of reasonable attorney’s fees, costs and expenses, in addition to any other relief to which it may he entitled.
SECTION 30. ENTIRE AGREEMENT.
This AGREEMENT, including the attached EXHIBITS “A” and “B”, is the entire, complete, final and exclusive expression of the parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between CONSULTANT and CITY prior to the execution of this AGREEMENT. No statements, representations or other agreements, whether oral or written, made by any party which are not embodied herein shall be valid and binding. No amendment to this AGREEMENT shall be valid and binding unless in writing duly executed by the parties or their authorized representatives.
SECTION 31. SEVERABILITY.
If a term, condition or covenant of this AGREEMENT is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this AGREEMENT shall not be affected thereby and the AGREEMENT shall be read and construed without the invalid, void or unenforceable provision(s).
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year first above written.
METRO VENTURES LTD.
By:
Irma L. Tucker
Title: President
CITY OF BUELLTON
By:
Scott Wolfe
Title: City Manager
EXHIBIT “A”
SCOPE OF SERVICES
The CONSULTANT shall perform contract planning services projects as directed by the City Manager of the City of Buellton, limited to special projects and reimbursable work as listed below. • Serve as project manager on development projects within the Avenue of Flags Specific plan.
• Oversee the preparation of the Comprehensive General Plan Update, to include the oversight of the requisite environmental documentation preparation (maximum of 624 hours over the term of the Agreement).
Similar work may be performed if the City Manager deems it necessary and directs that it be done, but must be accomplished within this AGREEMENT’s hours limitation. CONSULTANT’s billing rate shall be $100/hour. The AGREEMENT is limited to 1300 hours for a not-to-exceed cost of $130,000, of which a maximum of $62,400 shall be for work which is non-reimbursable to the City, unless the term of the AGREEMENT is extended in writing pursuant to Section 1.
The work schedule shall be mutually agreed upon by the CITY and CONSULTANT, subject to project deadlines and ensuring reasonable availability of CONSULTANT during business hours.
CONSULTANT shall communicate with the Planning Director (or City Manager in the Planning Director’s absence) by phone once per month to provide status updates and to ensure that CITY has a comprehensive understanding of CONSULTANT’s workflow and expectations.
CONSULTANT can otherwise set its own work hours and location; if CONSULTANT desires to work at a City location and space is available, CITY will offer such space to CONSULTANT at no cost.
EXHIBIT “B”
INSURANCE
A. Insurance Requirements. CONSULTANT shall provide and maintain insurance, acceptable to the City Manager or City Council, in full force and effect throughout the term of this AGREEMENT, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by CONSULTANT, its agents, representatives or employees. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII. CONSULTANT shall provide the following scope and limits of insurance:
1. Minimum Scone of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office form number CA 0001 (Ed.1/87) covering Automobile Liability, including code 1 “any auto” and endorsement CA 0025, or equivalent forms subject to the written approval of the City.
2. Minimum Limits of Insurance. CONSULTANT shall maintain limits of insurance no less than:
(1) Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
B. Other Provisions. Insurance policies required by this AGREEMENT shall contain the following provisions:
1. All Policies. Each insurance policy required by this AGREEMENT shall be endorsed and state the coverage shall not be suspended, voided, cancelled by the insurer or either party to this AGREEMENT, reduced in coverage or in limits except after 30 days’ prior written notice by Certified mail, return receipt requested, has been given to the CITY FINANCE DIRECTOR.
2. General Liability Accident -- Mobile Liability Rates. (1) CITY and its respective elected and appointed officers, officials, and employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities CONSULTANT performs; products and completed operations of CONSULTANT; premises owned, occupied or used by CONSULTANT; or automobiles owned, leased, hired or borrowed by CONSULTANT. The coverage shall contain no special limitations on the scope of protection afforded to CITY, and their respective elected and appointed officers, officials, or employees.
(2) CONSULTANTs insurance coverage shall be primary insurance with respect to CITY, and its respective elected and appointed, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by CITY, and its respective elected and appointed officers, officials, employees or volunteers, shall apply in excess of, and not contribute with, CONSULTANTs insurance.
(3) CONSULTANTs insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
(4) Any failure to comply with the reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to CITY, and its respective elected and appointed officers, officials, employees or volunteers.
C. Other Requirements. CONSULTANT agrees to deposit with CITY, at or before the effective date of this contract, certificates of insurance necessary to satisfy CITY that the insurance provisions of this contract have been complied with. The City Attorney may require that CONSULTANT furnish CITY with copies of original endorsements effecting coverage required by this Section. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. CITY reserves the right to inspect complete, certified copies of all required insurance policies, at any time.
1. CONSULTANT shall furnish certificates and endorsements from each subcontractor identical to those CONSULTANT provides.
2. Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects CITY or its respective elected or appointed officers, officials, employees and volunteers or the CONSULTANT shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims.
3. The procuring of such required policy or policies of insurance shall not be construed to limit CONSULTANTs liability hereunder nor to fulfill the indemnification provisions and requirements of this AGREEMENT.
CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 14
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: May 8, 2025
Subject: Fiscal Year 2025-26 & 2026-27 Requests for Funding from Outside Agencies
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BACKGROUND
On February 10, 2025, outside agencies were contacted and instructed to submit their funding requests for Fiscal Year 2025-26 with the possibility of City Council applying a three percent increase for fiscal year 2026-27. The City has received funding requests from twelve outside non-profit agencies exclusive of those agencies already included as line items in the City’s budget. This funding is allocated each year through the Non-Departmental Budget Unit of the General Fund. Last fiscal year, the City allocated a total of $42,642. The total amount requested for FY 2025-26 is $121,677.
Other agencies requesting funding are considered during the budget hearing meetings as part of the Parks Maintenance Budget (PAWS Park and Botanic Garden) and Non-Departmental (Buellton Senior Center).
Each agency will be available to provide a three-minute statement communicating their funding request.
General Fund: Non-Departmental:
1. Santa Ynez Valley People Helping People
Representative – Erica Jane Flores, CEO
Total 2025-26 Requested amount - $12,000 Received FY 2024-25 - $14,008
2. Foodbank of Santa Barbara County
Representative – Hannah Ryckman, Grants Coordinator
FY 2025-26 Requested amount - $10,000 Received FY 2024-25: $8,240
3. Santa Ynez Valley Fruit & Vegetable Rescue
Representative – Eryn Shugart, Executive Director
FY 2025-26 Requested amount - $8,500 Received FY 2024-25 - $8,652
4. NatureTrack
Representative – Sue Eisaguirre, Executive Director
FY 2025-26 Requested amount - $3,500 Received FY 2024-25 - $3,652
5. Buellton Community Garden
Representative – Laurie Jervis, Secretary
FY 2025-26 Requested Amount - $13,000 Received FY 2024-25 - $6,592
6. Buellton Union Schools (Jonata Middle School)
Representative – Casey McKeen, Principal
FY 2025-26 Requested Amount - $14,176.81 Received FY 2024-25 - $0
7. SY Pirate PTO-SYHS Safe+Sober Grad Nite
Representative – Amanda Miller, Committee Chair
FY 2025-26 Requested Amount - $3,000 Received FY 2024-25 - $0
8. Santa Ynez Valley Humane Society/ Dog Adoption and Welfare Group (SYVHS/DAWG)
Representative – Dr. Shana Schank, Executive Director
FY 2025-26 Requested Amount - $20,000 Received FY 2024-25 - $0
9. Friends of the Buellton Library
Representative – Holly Sierra, President
FY 2025-26 Requested Amount - $9,000 Received FY 2024-25 - $0
10. Jonata Oak Valley PTSA
Representative – Rusty Lindsey, President
FY 2025-26 Requested Amount - $10,500 Received FY 2024-25 - $0
11. SYV Botanic Garden Foundation
Representative – Derek Glas, President
FY 2025-26 Requested Amount - $13,000 Received FY 2024-25 - $0
12. Santa Ynez Valley Pride
Representative – Lauren Lastra, President
FY 2025-26 Requested Amount - $5,000 Received FY 2024-25 - $0
FISCAL IMPACT
Funding requests total $121,676.81 for FY 2025-26. The City Council funded outside agencies a total of $42,642 in FY 2024-25. The General Fund anticipates revenue growth in FY 2025-26 to allow for an increase in funding, therefore the City Council could consider raising the amount available for funding up to a maximum of $100,000.
RECOMMENDATION
Staff recommends that the City Council determine the total funding allocation for FY 2025- 26 for non-profit organizations, which will be reflected in the Non-Departmental budget unit of the General Fund (001-410-67200), and subsequently allocate these funds among the requesting organizations. Furthermore, staff recommends that the City Council review the funding levels for FY 2026-27, with the intention of maintaining the same allocation, based on future budget conditions and priorities
ATTACHMENTS
Attachment 1 – Santa Ynez Valley People Helping People – Funding Request Attachment 2 – Foodbank of Santa Barbara County – Funding Request Attachment 3 – Santa Ynez Valley Fruit & Vegetable Rescue – Funding Request Attachment 4 – NatureTrack – Funding Request
Attachment 5 – Buellton Community Garden – Funding Request Attachment 6 - Buellton Union Schools (Jonata MS)
Attachment 7 – SY Pirate PTO-SYHS Safe+Sober Grad Nite
Attachment 8 – Santa Ynez Valley Humane Society/ Dog Adoption and Welfare Group Attachment 9 – Friends of the Buellton Library
Attachment 10 – Jonata Oak Valley PTSA
Attachment 11 – SYV Botanic Garden Foundation
Attachment 12 – Santa Ynez Valley Pride