8 5
5 RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ESTABLISHING WATER RATES FOR FISCAL YEAR 2024-2025
CITY OF FOSTER CITY
WHEREAS, on June 3, 2024, the City Council held a public hearing to consider changes to the Master Fees and Service Charges Schedule establishing water rates for Fiscal Year 2024-2025; and
WHEREAS, the City hired Bartle Wells Associates (“BWA”) to review the City’s water rates, recommend rate adjustments for the next five years to reflect current costs of service, and to create rates that are proportionate to the costs of service for each customer class; and
WHEREAS, BWA submitted a Water Rate Study dated March 15, 2024, (“Water Rate Study”), which recommends a revised water rate schedule for Fiscal Year 2024- 2025; and
WHEREAS, the Water Rate Study indicates water service charges require adjustments to allow for proper maintenance and replacement of existing utility infrastructure, and to provide adequate reserves for emergency; and WHEREAS, at its Budget Study Session held on March 25, 2024, the City Council reviewed the Water Rate Study and detailed analyses of the City/District’s utility system operations, revenues, expenses and long-term capital improvement program; and
WHEREAS, the referenced Exhibit A and Exhibit B incorporate the City Council and EMID Board’s policy direction received at the City Council meeting on March 25, 2024; and
WHEREAS, pursuant to the provisions of Article 13D, Section 6, of the California Constitution (e.g., Proposition 218), prior to extending, imposing or increasing water rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to the rates together with an explanation of: (1) the amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by property owners or tenants representing a majority of the properties subject to the modified rates (“majority protest”); and 8 5
5 WHEREAS, notice of the public hearing to consider proposed adjustments to the water rates, set forth in Exhibit B, was mailed at least 45 days prior to the scheduled public hearing as required by state law (Cal. Cons. Art. XIIID, §6); and WHEREAS, on June 3, 2024, the City Council conducted a public hearing, considered testimony, and, at the conclusion of the hearing, determined that a majority protest did not exist; and
WHEREAS, the City Council determined to use a Two-Tier Hybrid Rate Model for purposes of establishing water rates; and
WHEREAS, the City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Water Rate Study and the Staff Report and attachments thereto:
1) Revenues derived from the proposed water rates will not exceed the funds required to provide water service.
(2) Revenues derived from the proposed water rates will not be used for any purpose other than that for which they were imposed.
(3) The amount of the water rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel.
(4) The water rates are imposed for services that are actually used by, or immediately available to, the owner of the property in question. (5) The water rates are not being imposed for general government services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY HEREBY RESOLVES AS FOLLOWS:
1. The City Council hereby finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.
2. The City Council hereby finds that the water service charge rate increase is exempt from CEQA under the "General Rule", Section 15061 (b) (3), in that it can be seen with certainty that no environmental impacts will result from these actions, and under CEQA Guideline section 15273 as these actions apply only to rates and fees to obtain funds necessary to operate and maintain the water system.
3. The procedures followed and the water rates referenced herein are in compliance with the California Constitution Article XIII D, California Government Code section 53755, and Health and Safety Code section 5471.
4. The City Council accepts and approves the Water Rate Study in the referenced Exhibit A setting forth the basis for the water service charge rates. 8 5
5 The Water Rate Study establishes that the water rates do not exceed the City’s costs of service and that the rates are proportionately charged to each customer class.
5. The City Council adopts rates noticed in the referenced Exhibit B as the City’s new water service charges to be incorporated into the Master Fees and Service Charges Schedule for Fiscal Year 2024-2025.
PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 3
rd
day of June, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________
PATRICK SULLIVAN, MAYOR
ATTEST:
________________________________
PRISCILLA SCHAUS, CITY CLERK