11245-0001\3120849v2.doc
CITY OF FAIRFIELD
RESOLUTION NO. 2025-118
AUTHORIZING THE CITY COUNCIL TO DIRECT STAFF TO INITIATE THE PROPOSITION 218 PROCESS AND SETTING A PUBLIC HEARING RELATING TO PROPOSED INCREASES AND MODIFICATIONS TO THE CITY’S WATER RATES AND MAKING ENVIRONMENTAL
FINDINGS WITH RESPECT THERETO PURSUANT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT
WHEREAS, the City of Fairfield has a Municipal Water Utility that provides water services to residents and businesses; and
WHEREAS, the City’s Water Utility operational, maintenance, and capital improvement costs have increased substantially since the last rate increase in 2021, and are estimated to continue increasing significantly; and
WHEREAS, the City’s currently established water rates are not adequate to meet increasing operating , maintenance, and capital improvements costs and required debt service coverage ratios in connection with the City’s water bonds; and
WHEREAS, the City’s consultant, Bartle Wells Associates , has conducted a Water Rate Study for the Water Utility Enterprise funds to ensure the financial health of the Municipal Water Utility; and
WHEREAS, an overview of the water rate study, including recommendations for proposed increases and modifications to the City’s water rates, was presented at the June 17, 2025, City Council meeting and the draft Water Rate Study will be placed on file in the Office of the City Clerk and available for public inspection; and
WHEREAS, in order to increase and modify the City’s water rates, the City must comply with Article XIII D of the California Constitution, more commonly known as Proposition 218; and
WHEREAS, City staff has evaluated the actions proposed to be taken in connection with the proposed water rates and has determined that those actions are not subject to the California Environmental Quality Act (Public Resources Code Section 21000 et seq. ) (CEQA) bec ause CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of water rates under Public Resources Code Section 21080(b)(8). The proposed water rates are proposed to meet operating expenses, purchase necessary suppli es and equipment, meet financial reserve needs, and fund capital projects necessary to maintain service within the existing service area.
Furthermore, the actions are not a “project” as defined under California Code of Regulations Title 14, Section 15378(b )(4). The actions are also exempt from CEQA RES. NO. 2025-118
pursuant to California Code of Regulations Title 14, Section 15061(b)(3) because it can be seen with certainty that the approval of water rates will not have a significant effect on the environment.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The council hereby authorizes and directs staff to initiate the Proposition 218 majority protest process for the proposed increases and modifications to the City’s water rates.
Section 2. The council hereby sets a Public Hearing to consider the proposed increases and modifications to the City’s water rates on November 4, 2025, at 6:00 p.m., or as soon thereafter as possible, in the City Council Chamber , or such other date and time selected by the city manager, in accordance with the requirements of Article XIII D of the California Constitution.
Section 3. The council hereby authorizes and directs the city clerk, or the city clerk’s designee, to provide a mailed notice of the Public Hearing in accordance with Article XIII D of the California Constitution.
Section 4. The council hereby authorizes staff of the City to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution and any such actions previously taken by such staff are hereby ratified.
Section 5. City staff has evaluated the actions proposed to be taken in connection with the proposed water rates and has determined that those actions are not sub ject to CEQA because CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of water rates under Public Resources Code Section 21080(b)(8). The proposed water rates are proposed to meet operating expenses, purchase necessary supplies and equipment, meet financial reserve needs, and fund capital projects necessary to maintain service within the existing service area.
Furthermore, the actions are not a “project” as defined under California Code of Regulations Title 14, Section 15378(b)(4). The actions are also exempt from CEQA pursuant to California Code of Regulations Title 14, Section 15061(b)(3) because it can be seen with certainty that the approval of water rates will not have a significant effect on the environment. The city council concurs with the determinations of staff. Therefore, no further environmental review is required.
RES. NO. 2025-118
PASSED AND ADOPTED this 17th day of June 2025, by the following vote:
AYES: MEMBERS: MOY / BERTANI / CARR / PANDURO / SANDHU / TONNESEN / WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
_________________________________________________
MAYOR
ATTEST:
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CITY CLERK