AGENDA REPORT
City Council
MEETING
DATE:
August 19, 2026
PREPARED
BY:
Ashlee Stratakis,
Finance Manager
DEPARTMENT
DIRECTOR:
Isam Hireish
DEPARTMENT: Utilities CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Public Hearing for Consideration of Adopting Resolution 2026-64 Authorizing Annually Indexed Adjustments to the Cost of Services Schedule for Sewer Engineering Services and Miscellaneous Sewer Services
RECOMMENDED ACTION:
Staff recommends that City Council take the following actions:
1. Hold a public hearing; and
2. Adopt Resolution 2026-64, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Cost of Services Schedule for Sewer Engineering Services and Miscellaneous Sewer Services” (Attachment 1) effective October 1, 2026.
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15378(b)(5) of CEQA Guidelines.
The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.
This item does not relate to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This agenda item is related to Focus Area 2: Effective and Reliable City Services, Infrastructure, and Communications of the City Council Work Plan.
2026-08-19 Item #12A Page 1 of 15
FISCAL CONSIDERATIONS:
There is a fiscal impact, however, projected revenue generated by the proposed sewer engineering fees is indeterminable, as development in the Cardiff Sanitary Division (CSD) and Encinitas Sanitary Division (ESD) vary year to year. Likewise, the number of sewer reimbursement districts established year to year varies greatly.
These fees ensure cost recovery from specific users who benefit from a particular City service.
BACKGROUND:
On January 28, 2026, City Council adopted Resolution 2026-03 to Establish a Cost of Services Schedule for Sewer Engineering Services (Sewer Engineering Fees) and Amend Fees for Miscellaneous Sewer Services (Attachment 2).
ANALYSIS:
Staff is recommending an adjustment to current fees, based on the annual average CPI for the San Diego Region for the calendar 2025 year, which is 3.8 percent (Attachment 3). The proposed Cost of Services Schedule is attached to Resolution No. 2026-64 as “Exhibit A.” If adopted, the new fees will become effective on October 1, 2026.
Staff recommends City Council adopt Resolution 2026-64, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Cost of Services Schedule for Sewer Engineering Fees and Miscellaneous Sewer Services” (Attachment 1), with an effective date of October 1, 2026, and annual CPI adjustments for the San Diego Region, as long as those adjustments do not exceed the cost for providing services.
Notice of this public hearing was given by publication in a newspaper of general circulation at least 10 days prior to the public hearing. The notice was posted in the Coast News, once a week for two weeks on August 7 and 14.
ATTACHMENTS:
1. Resolution No. 2026-64, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Cost of Services Schedule for Sewer Engineering Services and Miscellaneous Sewer Services”
2. January 28, 2026 City of Encinitas City Council Agenda Report, Item 10A
3. Consumer Price Index (CPI-U) 2025
2026-08-19 Item #12A Page 2 of 15
RESOLUTION NO. 2026-64
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA
AMENDING THE COST OF SERVICES SCHEDULE FOR SEWER ENGINEERING SERVICES
AND MISCELLANEOUS SEWER SERVICES
WHEREAS, the Government Code of the State of California establishes procedures and criteria for the imposition of fees by local agencies; and WHEREAS, the City of Encinitas Cardiff Sanitary Division (CSD) and Encinitas Sanitary Division (ESD) provide sewer plan checks and related services to the General Public, and WHEREAS, Sewer Engineer Fees were established and Sewer Miscellaneous Fees were updated pursuant to Resolution 2026-03 and
WHEREAS, notice has been given that a public hearing will be held on August 19, 2026, to amend the cost of services schedule for sewer engineering services and miscellaneous sewer services for CSD and ESD; and
WHEREAS, such hearing was duly and regularly convened in the Council Chambers of the City of Encinitas and at said hearing all interested persons were given an opportunity to be heard; and
WHEREAS, the City Council finds that it is in the interest of the City of Encinitas to amend the cost of services schedule for sewer engineering services and miscellaneous sewer services for CSD and ESD.
NOW, THEREFORE:
BE IT RESOLVED by the City Council of the City of Encinitas that the cost of services schedules as shown in Exhibit A, are hereby adopted and will become effective as of October 1, 2026; and that beginning July 1, 2027 and on the first day of each July thereafter, the fees shall be increased by the prior calendar year’s Annual Average Consumer Price Index for the San Diego Region so long as the adjustment does not exceed the cost for providing the services.
BE IT FURTHER RESOLVED the City Council finds and determines that the fees for services and the billing and overhead rates established by this Resolution do not exceed the estimated reasonable costs of services and otherwise comply with the provisions of California law.
BE IT FURTHER RESOLVED that this action is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5) of the CEQA Guidelines, as an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environment.
2026-08-19 Item #12A Page 3 of 15
PASSED, APPROVED AND ADOPTED this 19th day of August 2026, by the City Council of the City of Encinitas, State of California.
_________________________________
Bruce Ehlers, Mayor
ATTEST:
________________________________
Pete Weichers, City Clerk
APPROVED AS TO FORM:
_____________________________
Ajit Thind, City Attorney
CERTIFICATION: I, Pete Weichers, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the City Council on the 19th day of August 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________
Pete Weichers, City Clerk
2026-08-19 Item #12A Page 4 of 15
Reso 2026-64
3.8%
0%
Current Fee Proposed Fee
Engineering Services
Process Wastewater Availability Letter $ 103 $ 106
Process Encroachment $ 974 $ 1,011
Process Quitclaim $ 1,206 $ 1,251
Process Easement $ 1,206 $ 1,251
Process Vacation $ 1,417 $ 1,470
Plan Check – Parcel Maps (Per Wastewater Sheet) $ 1,222 $ 1,268 Plan Check – Improvement Plans
(Per Wastewater Sheet) $ 770 $ 799
Plan Check - Grading/Bldg Plans & Conflict Check (Per
Wastewater Sheet) $ 155 $ 160
Sewer Lateral Inspection Fee* $ 420 $ 436
*CCTV provided by developer
Engineering Deposit
Hydraulic Analysis (Minimum Deposit). Customer
pays actual costs. $ 2,577.0 $ 2,674
Note: Fees to be adjusted annually per the Consumer Price Index (CPI) for the San Diego Region.
EXHIBIT A
Description
SEWER ENGINEERING SERVICES
TABLE 1
COST OF SERVICES SCHEDULE
Consumer Price Index (CPI) Increase
Eng & News Record Construction Cost Index (CCI) Increase 2026-08-19 Item #12A Page 5 of 15
Reso 2026-64
3.8%
Current Proposed
Establishment of Sewer Reimbursement District
Customer Deposit $ 6,000 $ 6,228
Administration Fee $ 325 $ 337
Note: Fees to be adjusted annually per the Consumer Price Index (CPI) for the San Diego Region.
EXHIBIT A
TABLE 2
Description
COST OF SERVICES SCHEDULE
MISCELLANEOUS SEWER SERVICES
Consumer Price Index (CPI) Increase
2026-08-19 Item #12A Page 6 of 15
AGENDA REPORT
City Council
MEETING
DATE:
January 28, 2026
PREPARED
BY:
Elmer Alex, Principal
Engineer
DEPARTMENT
DIRECTOR:
Isam Hireish
DEPARTMENT: Utilities CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Public Hearing for Consideration of Adopting Resolution 2026-03 to Establish a Cost of Services Schedule for Sewer Engineering Services (Sewer Engineering Fees) and Amend Fees for Miscellaneous Sewer Services
RECOMMENDED ACTION:
Staff recommends that City Council take the following actions:
1. Hold a public hearing; and
2. Adopt Resolution 2026-03, titled “A Resolution of the City Council of the City of Encinitas, California, Establishing a Cost of Services Schedule for Sewer Engineering Services and Amending the Cost of Services Schedule for Miscellaneous Sewer Services” (Attachment 1) effective April 1, 2026.
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15378(b)(5) of CEQA Guidelines.
The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.
This item does not relate to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This agenda item is related to the Effective and Reliable City Services, Infrastructure, and Communication Focus Area of the City Council Work Plan. These fees ensure cost recovery from specific users who benefit from a particular City service. 2026-01-28 Item #10A Page 1 of 64 2026-08-19 Item #12A Page 7 of 15 FISCAL CONSIDERATIONS:
The City’s Utilities Department Wastewater Division has not previously implemented Sewer Engineering Fees for plan checks and related services. By adopting these fees to ensure full cost recovery, the fees pay for the actual expense incurred, not just a portion. This ensures that the costs of services, like development plan checks, are borne by those who benefit from that service rather than paid for by other ratepayers that will not. By implementing full cost recovery, the City’s Utilities Department Wastewater Division avoids subsidizing these services with general sewer rates, which would increase costs for all ratepayers.
Projected revenue generated by the proposed sewer engineering fees is indeterminable, as development in the Cardiff Sanitary Division (CSD) and Encinitas Sanitary Division (ESD) vary year to year. Likewise, the number of sewer reimbursement districts established year to year varies greatly.
BACKGROUND:
Sewer Engineering Fees for Development Review
Sewer Engineering Fees are established for administrative engineering services that are specifically requested by a customer or developer. Examples of fees for services requested by a customer may include, but are not limited to, parcel maps, improvement plan check, performing hydraulic modeling of the sewer system, and processing encroachment permits. Many of these fees are charged to developers for the very specific services they typically request during a project. These users benefit from a particular service. As part of a general cost recovery strategy, the City of Encinitas and San Dieguito Water District (SDWD) have adopted fees to recover direct and indirect management support costs associated with the costs of providing services. These programs and services provide limited or no direct benefit to the community as a whole.
The City regularly hires a consultant to review its user fees. Since 2022, the City Council has adopted resolutions authorizing the annual indexed adjustments to planning services and engineering development processing fees based on the annual Consumer Price Index (CPI) increase for the prior calendar year. Likewise, SDWD regularly reviews its miscellaneous fees and requests as-needed adjustments.
There are currently no plan check or related fees collected for sewer engineering services, only capacity/connection, and Public Right of Way construction permit fees. Previously, the City’s Engineering Department had conducted plan reviews for sewer projects and did not collect designated fees for these services. The Utilities Department now performs these services and would like to collect fees because specific users benefit, rather than the community as a whole.
Reimbursement Fees for Establishment of Sewer District
Chapter 18.12 of the City’s Municipal Code allows the City to enter into an agreement with a property owner(s) who build a private sewer line. The owner(s) may charge an additional connection fee for nearby eligible parcels to connect to the sewer system. This only applies when the sewer service has been made available by that owner(s) prior to the time that the City would have been able to make the sewer service available.
To begin the process, the owner(s) must pay an administrative fee for setting up the agreement in the form of a deposit account with the City in the amount of $1,000. The City charges against 2026-01-28 Item #10A Page 2 of 64 2026-08-19 Item #12A Page 8 of 15 the deposit account on a time and materials basis until the agreement is finalized.
The other fee associated with administrating this program is a $250 fee charged to the owner(s) in advance for each reimbursement collected and sent to the owner(s).
ANALYSIS:
Sewer Engineering Fees for Development Review
Staff is recommending the adoption of Sewer Engineering Fees as listed below and in Exhibit A (Table 1) of Attachment 1, effective April 1, 2026. These fees and deposits will be adjusted annually according to the prior calendar year’s Annual Average Consumer Price Index (CPI) for the San Diego Region as long as the adjustment does not exceed the cost for providing services.
SDWD Engineering provides the same type of services for its customers. Since the same class of City staff positions performs the sewer plan checks, staff proposes using the same fees as adopted by the SDWD Board (Attachment 2) and summarized below.
Proposed Sewer Engineering Fees
Plan Check Type Fee Type FY26 SDWD
Fees (Adopted)
FY26 Sewer
Fees (Proposed)
Planning Review Per Sewer Sheet $1,222 $1,222
Improvement Plans Per Sewer Sheet $770 $770
Grading/Building Plans &
Conflict Check Per Sewer Sheet $155 $155
Hydraulic Analysis Deposit Time and Material
Basis $2,577 $2,577
Sewer Availability Flat Fee $103 $103
Sewer Lateral Inspection Per Inspection N/A $420
The Per Sewer Sheet cost is based on the number of sheets with sewer improvements including details, title page, and notes. Sheets that do not contain relevant sewer improvements will not be charged.
Fees to Reimburse for Establishment of Sewer District
Based on the increases in fully loaded rates since the $1,000 deposit was first established in 1999, staff requests the deposit to be increased to $6,000. This amount should cover the tasks required to set up a district; including staff communication with the owner, review by engineer, introduction and adoption of the ordinance by Council, and associated expenses. After staff has completed the establishment of the sewer district, any remaining funds will be returned to the property owner.
The $250 administrative fee was last updated in 2002. To align with current staffing costs required to administer reimbursements, staff proposes increasing the fee to $325. 2026-01-28 Item #10A Page 3 of 64 2026-08-19 Item #12A Page 9 of 15 Staff recommends that the City Council adopt the Sewer Engineering and Miscellaneous Fees as listed in Exhibit A to Attachment 1, with an effective date of April 1, 2026, and annual CPI adjustments for the San Diego Region, as long as those adjustments do not exceed the cost for providing services.
Public Notice
Notice of this public hearing was given by publication in a newspaper of general circulation at least 10 days prior to the public hearing. The notice was posted in the Coast News, once a week for two weeks on January 16 and 23. The proposed Cost of Services Schedule is attached to Resolution No. 2026-03 as “Exhibit A.” If adopted, the new fees will become effective on April 1, 2026.
ATTACHMENT(S):
1. Resolution 2026-03, titled “A Resolution of the City Council of the City of Encinitas, California, Establishing a Cost of Services Schedule for Sewer Engineering Services and Amending the Cost of Services Schedule for Miscellaneous Sewer Services”
2. April 16, 2025 San Dieguito Water District Agenda Report, Item 10A 2026-01-28 Item #10A Page 4 of 64 2026-08-19 Item #12A Page 10 of 15 RESOLUTION NO. 2026-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA
ESTABLISHING A COST OF SERVICES SCHEDULE FOR SEWER ENGINEERING
SERVICES AND AMENDING THE COST OF SERVICES SCHEDULE FOR
MISCELLANEOUS SEWER SERVICES
WHEREAS, the Government Code of the State of California establishes procedures and criteria for the imposition of fees by local agencies; and WHEREAS, the City of Encinitas Cardiff Sanitary Division (CSD) and Encinitas Sanitary Division (ESD) provide sewer plan checks and related services to the General Public and do not currently administer fees for these services; and
WHEREAS, ESD and CSD collect an administrative fee and deposit for Sewer Reimbursement Districts that have not been updated in over 20 years; and WHEREAS, the City desires to recover direct and indirect management support costs associated with the costs of providing the services described above; and WHEREAS, notice has been given that a public hearing will be held on January 28, 2026, to establish a cost of services schedule for sewer engineering services and amend the cost of services schedule for miscellaneous sewer services for CSD and ESD; and WHEREAS, such hearing was duly and regularly convened in the Council Chambers of the City of Encinitas and at said hearing all interested persons were given an opportunity to be heard; and
WHEREAS, the City Council finds that it is in the interest of the City of Encinitas to establish a cost of services schedule for sewer engineering services and amend the cost of services schedule for miscellaneous sewer services for CSD and ESD.
NOW, THEREFORE:
BE IT RESOLVED by the City Council of the City of Encinitas that the cost of services schedules as shown in Exhibit A, are hereby adopted and will become effective as of April 1, 2026; and that beginning July 1, 2026 and on the first day of each July thereafter, the fees shall be increased by the prior calendar year’s Annual Average Consumer Price Index for the San Diego Region so long as the adjustment does not exceed the cost for providing the services and is approved by the City Council.
BE IT FURTHER RESOLVED the City Council finds and determines that the fees for services and the billing and overhead rates established by this Resolution do not exceed the estimated reasonable costs of services and otherwise comply with the provisions of California law.
BE IT FURTHER RESOLVED that this action is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5) of the CEQA Guidelines, as an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environment.
2026-01-28 Item #10A Page 5 of 64 2026-08-19 Item #12A Page 11 of 15 PASSED, APPROVED AND ADOPTED this 28th day of January 2026, by the City Council of the City of Encinitas, State of California.
_________________________________
Bruce Ehlers, Mayor
ATTEST:
________________________________
Kathy Hollywood, City Clerk
APPROVED AS TO FORM:
_____________________________
Ajit Thind, City Attorney
CERTIFICATION: I, Kathy Hollywood, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the City Council on the 28th day of January 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________
Kathy Hollywood, City Clerk
2026-01-28 Item #10A Page 6 of 64 2026-08-19 Item #12A Page 12 of 15 Proposed Fee
Engineering Services
Process Wastewater Availability Letter $ 103.00
Process Encroachment $ 974.00
Process Quitclaim $ 1,206.00
Process Easement $ 1,206.00
Process Vacation $ 1,417.00
Plan Check – Parcel Maps (Per Wastewater Sheet) $ 1,222.00 Plan Check – Improvement Plans
(Per Wastewater Sheet) $ 770.00
Plan Check - Grading/Bldg Plans & Conflict Check (Per
Wastewater Sheet) $ 155.00
Sewer Lateral Inspection Fee* $ 420.00
*CCTV provided by developer
Engineering Deposit
Hydraulic Analysis (Minimum Deposit). Customer
pays actual costs. $ 2,577.00
EXHIBIT A
Description
SEWER ENGINEERING SERVICES
TABLE 1
COST OF SERVICES SCHEDULE
2026-01-28 Item #10A Page 7 of 64 2026-08-19 Item #12A Page 13 of 15 Current Proposed
Establishment of Sewer Reimbursement District
Customer Deposit $ 1,000.00 $ 6,000.00
Administration Fee $ 250.00 $ 325.00
EXHIBIT A
TABLE 2
Description
COST OF SERVICES SCHEDULE
MISCELLANEOUS SEWER SERVICES
2026-01-28 Item #10A Page 8 of 64 2026-08-19 Item #12A Page 14 of 15 Databases, Tables & Calculators by Subject
Special Notices 1/14/2026
Change Output Options:
From: 2025 To: 2026
include graphs include annual averages
Data extracted on: April 22, 2026 (1:22:11 PM)
Consumer Price Index for All Urban Consumers (CPI-U)
12-Month Percent Change
Series Id: CUURS49ESA0
Not Seasonally Adjusted
Series Title: All items in San Diego-Carlsbad, CA, all urban consumers, not seasonally adjusted Area: San Diego-Carlsbad, CA
Item: All items
Base Period: 1982-84=100
Download:
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2025 3.8 3.8 3.8 4.0 3.9 4.0 3.8 3.8 3.9
2026 2.6 3.2
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