RESOLUTION NO. (XX)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI ACCEPTING THE WATER AND SEWER RATE STUDY DATED FEBRUARY 16, 2025, SETTING A PUBLIC HEARING FOR MAY 27, 2025 AND AUTHORIZING STAFF TO INITIATE THE PROPOSITION 218 NOTICING PROCESS
WHEREAS, the City has not conducted a water and sewer rate study to adjust rates since April 2022, at which time the City established a series of rate adjustments to cover the cost of providing water and sewer service in Cotati; and
WHEREAS, it is industry practice to conduct a water and sewer rate study every few years to ensure the rates are sufficient to meet each utility’s financial and service obligations for ongoing operation and maintenance, debt service, and capital improvements while maintaining prudent reserves; and
WHEREAS, on May 22, 2024, the City executed an agreement with Hildebrand Consulting to revise the City’s rate models to incorporate current and projected expenses in operating and maintaining the utilities; and
WHEREAS, Hildebrand Consulting has revised the rate models and has completed a Water and Sewer Rate Study Draft Report (“Study”) based on the revised models; and WHEREAS, the Study recommends overall water and sewer rate adjustments as indicated in the attached report for June 15, 2025, and for each of the following four subsequent years on June 15: 2026, 2027, 2028, and 2029; and
WHEREAS, the Study recommends and provides justification for maintaining a three-tier water usage rate structure for single family residential customers and a uniform water usage rate for multi-family, non-residential, and irrigation accounts; and WHEREAS, the action of approving the Study and initiating the Proposition 218 process does not constitute a project as defined by California Environmental Quality Act Guidelines Section 15378; therefore, no further environmental review is required.
NOW THEREFORE BE IT RESOLVED, that by the City of Cotati City Council:
1. All of the above recitals are true and correct.
2. The City Council accepts the attached Study.
3. The City Council directs staff to begin the Proposition 218 public noticing process for proposed water and sewer rate adjustments and to return on May 27, 2025, for a public hearing and consideration of the proposed water and sewer rates.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on February 25, 2025, by the following vote, to wit:
Approved:___________________________
Mayor
Attest:______________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:______________________________
City Attorney