Resolution No. XX-2023 1
RESOLUTION NO. XX – 2023
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF EAST PALO ALTO
SUSPENDING THE CURRENT WATER METER REPLACEMENT SURCHARGE AND INCREASING WATER CAPITAL SURCHARGE RATES ON APRIL 1, 2023 FOR ALL WATER CUSTOMERS WITHIN THE CITY OF EAST PALO ALTO’S SERVICE AREA WHEREAS, American Water Enterprises leased the water system under a twenty-five year agreement with the City of East Palo Alto; and
WHEREAS, Veolia took over the lease agreement in 2020; and WHEREAS, the City adopted the 2022 Water System Master Plan prepared by EKI Environment & Water, Inc., (EKI) on October 4, 2022, which outlined capital improvements projects for the next 20 years; and
WHEREAS, Bartle Wells Associates (BWA) performed the water rate analysis, in conjunction with EKI; and
WHEREAS, the proposed rate changes will help ensure the City recovers enough fees to fund the capital improvement projects identified in the 2022 WSMP to support the City’s water supply strategy and increase capacity to meet the recommended performance criteria; and WHEREAS, on January 17, 2023 City Council conducted a duly-noticed public hearing following a mail campaign reasonably calculated to provide notice to rate payers, including providing an opportunity for the consideration of protests and public comment; received a staff-consultant presentation; and heard and considered oral testimony regarding recommended water capital surcharge rates; and
WHEREAS, at the January 17th meeting, City Council adopted a resolution with the intent to increase water capital surcharge rates, to set a public hearing date of March 21, 2023, and to send notices to all rate payers within the City’s water service area; and WHEREAS, the City Council followed the procedural requirements of Proposition 218, Article XIIID, Section 6 of the California Constitution.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY accepts the foregoing recitals as true and correct:
1. The City Council hereby initiated proceedings to increase the water capital surcharge rates on April 1, 2023;
2. The City Clerk provided a notice of the proposed water capital surcharge rate increases in conformity with Proposition 218 on February 3, 2023;
3. The City Council held a hybrid (in-person and remote) public hearing on the proposed water rate increases on March 21, 2023 at 6:30 p.m., in the City Council Chambers of City Hall, located at 2415 University Avenue, East Palo Alto California and via Zoom;
4. The City Council considered all objections or protests, if any, to the proposed water rate increases, and all persons have been permitted to present written or oral testimony; Resolution No. XX-2023 2
5. At the conclusion of the public hearing, all protests submitted were tabulated in conformity with the City’s tabulation guidelines found in Exhibit A; and
6. At the conclusion of the public hearing, the City Council confirmed that a majority protest, that is written protests submitted in opposition to the proposed water rates by a majority (50% plus 1) of service customers, did not exist to warrant suspension of the proposed water service rates.
7. The City staff report dated and presented to the City Council on January 17, 2023, including the Bartle Wells report with the notice and analysis therein, support the City Council’s action to suspend the water meter replacement surcharge and increase the water capital surcharge rates as set forth in this Resolution.
BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY ADOPTS the following water capital surcharge rate schedule:
Current Proposed
Total
Surcharge
Water Capital
Improvement
Surcharges
Water Usage Charges ($ per
ccf)
All Customers $0.43 $0.65
Fixed Monthly Meter Charges
Single Family Residential
5/8’’ - 1’’ $9.12 $9.73
All Other Water Service Meters
5/8’’ $10.70 $15.07
¾” $13.20 $22.61
1’’ $18.10 $37.69
1- ½'’ $12.13 $75.37
2’’ $46.58 $120.60
3’’ $102.96 $226.12
4’’ & Larger $148.78 $376.86
Resolution No. XX-2023 3
PASSED AND ADOPTED this 21st day of March 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:
James Colin, City Clerk John D. Lê, City Attorney
Resolution No. XX-2023 4
Exhibit A
Guidelines for the Submission and Tabulation of Protests When notice of a public hearing with respect to a service rate increase, such as for water or solid waste collection service, has been given by the City pursuant to Article XIIID, Section 6 of the California Constitution, the following shall apply:
Submission of Protests
1. Any property owner or customer/ratepayer may submit a written protest to the City Clerk, either by mail or delivery to EPA Government Center, 2415 University Avenue, East Palo Alto, CA 94303-1164 or by submitting the protest at the public hearing. Protests must be received by the end of the public hearing. No postmarks will be accepted.
2. Each protest must be in writing and must state that it is a protest (or indicate opposition to the proposed rates) and include the following information: (i) the name of the owner or customer/ratepayer submitting the record, (ii) the street addresses, accounts or assessor’s parcel numbers of the parcel (or service location) for which the protests are submitted, and (iii) the signature of the person submitting the protest.
3. Email or facsimile protests cannot be accepted. Although the City Council welcomes input from the community during the public hearing on the proposed fees, oral comments at the public hearing will not qualify as a formal protest unless accompanied by a written protest.
4. If a parcel receiving service is owned by more than one record owner; if more than one name appears on the City’s records as the customer/ratepayer for the parcel; or if the customer/ratepayer is not the record owner, any owner or customer/ratepayer may submit a protest, but only one protest will be counted per parcel and any one protest submitted in accordance with these rules will be sufficient to count as a protest for that parcel.
5. A protest by a property owner that is a trust must be signed by the Trustee and identified as such with the signature (i.e., John Smith, Trustee for Smith Family Trust). Protests by property owners that are corporations, partnerships, or similar entities must be signed by a person authorized to execute documents on behalf of the property owner. A property owner that is not shown on the last equalized assessment roll for a parcel must accompany the protest with evidence of ownership.
6. Any person who submits a protest may withdraw it by submitting to the City Clerk a dated written request that the protest be withdrawn. The withdrawal of a protest must contain sufficient information to identify the affected parcel and the name of the record owner or record customer/ratepayer who submitted both the protest and the request that it be withdrawn.
7. A fee protest proceeding is not an election.
8. To ensure transparency and accountability in the fee protest tabulation, protests shall constitute disclosable public records from and after the time when they are opened by the City at the public hearing. Protests will be retained by the City for three years and then may be destroyed.
Resolution No. XX-2023 5
Tabulation of Protests
1. The City Clerk, or designee, shall determine the validity of all protests. The City Clerk shall not accept as valid any protest if s/he determines that any of the following conditions exist:
a. The protest does not identify a parcels or accounts that will be subject to the proposed fees. b. The protest does not bear an original signature of a record owner or customer/ratepayer associated with the parcel.
c. The protest does not state its opposition to the proposed fees or is illegible. d. The protest has been altered in any way by someone other than the person who signed it. e. The protest was not received by the City Clerk before the close of the public hearing on the proposed fees.
f. A request to withdraw the protest was received by the City Clerk prior to the close of the public hearing on the proposed fees.
g. The protest or request for withdrawal is dated prior to the date of mailing of the notices of hearing on the proposed fees.
2. The City Clerk’s decision that a protest is not valid shall constitute a final action of the City and shall not be subject to any internal appeal.
3. A majority protest exists if written protests are timely submitted and not withdrawn by owners or customers/ratepayers with respect to a majority (50.0% plus one) of the parcels subject to the proposed fee.
4. A majority protest also exists is written protests are timely submitted and not withdrawn by customers/ratepayers with respect to a majority (50.0% plus one) of the service locations (customer accounts) subject to the proposed fee.
5. At the conclusion of the public hearing, the City Clerk shall count all protests received, including those received during the public hearing, and shall report the results to the City Council upon completion. If review of the protests received demonstrates that the number received is manifestly less than one-half of the parcels served by the City with respect to the fee which is the subject of the protest, then the City Clerk may advise the Council of the absence of a majority protest without determining the validity of all protests.
6. If, at the conclusion of the public hearing, the Clerk determines that s/he will require additional time to count the protests, s/he shall so advise the Council, which may adjourn the meeting to allow the count to be completed on another day or days. If so, the Council shall declare the time and place of the count, which shall be conducted in a place where interested members of the public may observe the counting, and the Council shall declare the time at which its meeting shall be resumed to receive and act on the report of the Clerk.