Camarillo City Council
AGENDA REPORT
Date: February 26, 2025
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Mark Uribe, Finance Director
Subject: Water Rate Setting Procedures - Adopt a Resolution Establishing a Procedure for Property Owner Objections to Proposed Water Fees
BACKGROUND
California enacted AB 2257 in September 2024, a bill sponsored by the Association of California Water Agencies (ACWA) and authored by Assemblymember Lori Wilson (D- Suisun City), which assists local agencies in defending against lawsuits under Proposition 218, which governs assessments, fees, and charges levied by local agencies. The bill establishes a formal objection procedure for ratepayers to raise concerns about proposed rate changes before litigation becomes an option.
This process is designed to address disputes during the public participation stage, reducing the likelihood of surprise lawsuits after rates are approved. AB 2257 aligns with existing constitutional provisions and Proposition 218, which set standards for public notice, hearings, and protest procedures.
DISCUSSION
AB 2257 legislation mirrors the California Environmental Quality Act process, emphasizing transparency and early resolution of disputes. It does not bypass the public participation process mandated by Proposition 218 but enhances it by creating a parallel objection mechanism. By fostering communication between agencies and ratepayers, AB 2257 seeks to minimize litigation risks and promote collaborative problem-solving in public rate-setting processes.
The legislation created an exhaustion of administrative remedies procedure that requires ratepayers to bring an objection regarding a proposed property-related water or sewer fee or charge, or any special assessment to the local public agency governing body’s attention prior to the deadline established by the local public agency as part of the rate or assessment consideration process. The purpose is also to provide an opportunity for the
Water Rate Setting Procedures – Adopt a Resolution
February 26, 2025
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local public agency to address or resolve the objection or objections before its governing body makes a final decision on whether to establish a new, or amend a current, property- related fee or special assessment pursuant to Proposition 218.
Proposition 218
In July 2006, the California Supreme Court decided on the Bighorn-Desert View Water Agency v. Verjil case and ruled that rates for utility service are “property-related fees” subject to Proposition 218. These fees may not be imposed or increased without a 45- day mailed notice of the proposed rate increase to all property owners and a majority protest proceeding in which silence is consent.
FISCAL IMPACT
There is no budget impact as a result of this action.
RECOMMENDATION
Adopt a Resolution Establishing a Procedure for Property Owner Objections to Proposed Water Fees.
ATTACHMENTS
1. Resolution
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None