CITY OF FAIRFIELD
RESOLUTION NO. 2025-217
APPROVING AND ESTABLISHING WATER RATES EFFECTIVE JANUARY 1, 2026, JANUARY 1, 2027, JANUARY 1, 2028, JANUARY 1, 2029, AND JANUARY 1, 2030
WHEREAS, the City of Fairfield has a Municipal Water Utility that provides water services to residents and businesses; and
WHEREAS, the City Council is authorized pursuant to California Health and Safety Code Section 5471 to prescribe, revise and collect rates for providing water services; 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 on June 17, 2025, council meeting and the draft Water Rate Study was placed on file in the office of the City Clerk and available for public inspection; and
WHEREAS, the council wishes to modify and increase the City’s water rates; 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, in order to incr ease 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, on June 17, 2025, the council adopted Resolution No. 2025 -118 setting a public hearing to consider the proposed increases and modifications to the City’s water rates on November 4, 2025 (Public Hearing), and directing staff to initiate the Proposition 218 majority protest process for the proposed water rate increases and modifications; and
WHEREAS, the council identified the parcels upon which the proposed water rates would be imposed and calculated the amount of the proposed rates; and RES. NO. 2025-217
WHEREAS, in accordance with Proposition 218 and the Proposition 218 Omnibus Implementation Act, the City provided mailed notice of the Public Hearing and held the Public Hearing on November 4, 2025; and
WHEREAS, at the Public Hearing, the council considered the Wa ter Rate Study and heard and considered all oral testimony and written protests and materials submitted regarding the proposed water rates; and
WHEREAS, following the conclusion of the Public Hearing, in conformity with Proposition 218, the council determ ined that no majority protest against the proposed water rates exist (i.e., written protests against the proposed water rates submitted and not withdrawn do not represent a majority of the parcels (50% +1) that receive water service).
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The Recitals set forth in this Resolution are true and correct and are incorporated herein by reference.
Section 2. The council hereby approves the water rates in the amounts and on the effective dates as shown in Exhibit A, attached hereto and incorporated herein by reference, which, through January 1, 2030, are subject to the potential pass through of increases in wholesale water purchase costs authorized in Section 3, below, and subject to water rate and pass-through adjustments for customers in the Willotta Oaks Subdivision, as authorized in Section 4. Such water rate adjustments and pass -throughs do not require additional majority protest proceedings pursuant to Proposition 218.
Section 3. The City purchases untreated wholesale water supply from the Solano County Water Agency and Solano Irrigation District. Wholesale water charges from these agencies may be subject to unanticipated increases that are outside the City’s control. To provide financial protection for these unanticipated cost increases, the council hereby authorizes the pass-through of increases to future wholesale water supply charges in excess of 4% per year via corresponding increases to the City’s water volume cha rges pursuant to California Government Code 53756.
Pass-through adjustments will be implemented by increasing all of the City’s water volume charges per hundred cubic feet (HCF), where one HCF equals approximately 748 gallons, by a consistent amount (measu red in cents per HCF). This amount will correspond to the weighted average cost per HCF of water supply established by the City’s wholesale water suppliers.
These pass-throughs will only apply to customers connected to the City’s water system. Prior to passing through any wholesale water rate increase, the City will notify all customers at least 30 days prior to implementation.
RES. NO. 2025-217
Section 4. The City bills a small number of water customers who are located in the Willotta Oaks subdivision (Subdivision), whi ch is outside the City’s water system service area, and who receive water service from the City of Vallejo’s Lake Area water system (Willotta Customers). The City of Vallejo charges Fairfield for providing water service to the Willotta Customers. The council hereby authorizes the pass through of the cost of service to the Willotta Customers by charging water rates that correspond with Vallejo’s charges to Fairfield for providing water service, without any markup. The water rates for Willotta Customers effective January 1, 2026, are based on current charges levied by Vallejo on Fairfield as follows: a) Fixed Service Charge: $0.29 per day per residential dwelling unit or equivalent, plus b) Volume Charge: $16.21 per HCF billed based on metered water consumptio n. In addition, the council hereby authorizes the pass -through of future increases to the charges for water billed to Fairfield by Vallejo for water service to the Willotta Customers pursuant to California Government Code 53756, which will be applied by increasing fixed charges by the same percentage increase to applicable fixed charges adopted by Vallejo for service to the Customers, and increasing volume charges by the same amount (measured in cents per HCF) corresponding with increases to usage charges adopted by Vallejo for service to the Willotta Customers.
Section 5. If any provision of this resolution or its application is deemed invalid by a court of competent jurisdiction, the council intends that such invalidity will not affect the effectiveness of the remaining provisions or their application and, to this end, the provisions of this resolution are severable.
PASSED AND ADOPTED this 4th day of November 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
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MAYOR
ATTEST:
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CITY CLERK