Agenda Item No. 13
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 13, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Wendi Sims, City Clerk
Robert Lomeli, City Attorney
Kristin Eriksson, Assistant City Manager
SUBJECT: Citizen Initiative to Repeal Water and Wastewater Rate Structures
RECOMMENDATION
Receive a presentation of a citizen initiative to repeal the water and wastewater rate structures approved by the Council on December 11, 2023 and consider potential action pursuant to California Elections Code.
BACKGROUND
Water and Wastewater Rate Structure
On December 11, 2023, Council approved water and wastewater rate structures to provide needed funding for increased operations and maintenance costs, as well as planned capital projects for each system. This approval came after a Proposition 218 process was conducted where less than 50% of water and wastewater customers within the city submitted protests opposing the rates which enabled the Council to approve the rate structures. Attachment 1 shows Resolution 23-37 adopted by the Council to enact the rate structures. These adopted rate structures superseded the previous rate structures adopted by the Council on May 10, 2021 which covered a five-year period from FY 2021-22 through FY 2025-26.
On April 22, 2024, the Council received an update on the City’s water supply which detailed the City’s current and future water supply needs, alternatives for obtaining additional water supply, and options for adjusting water rates in light of unanticipated cost increases for the Central Coast Blue (CCB) recycled water project. Council subsequently directed staff to return with an agenda item on May 13 to withdraw from the CCB project and related Joint Powers Authority and adjust water rates to remove all costs associated with the CCB project and allocate one-time funds in FY 2024-25 to support the City’s water resiliency efforts. The wastewater rates were not recommended to be adjusted as that rate structure is not impacted by the CCB project. The previous agenda item included resolutions to withdraw from the CCB project and modify the water rate structure.
Submitted Initiative
On January 8, 2024, the City received a Notice of Intention to Circulate Petition for a proposed ballot initiative measure to repeal City Resolution 23-37 and a request that the City Attorney prepare a Ballot Title and Summary. The City Clerk transmitted that request to the City Attorney’s office in accordance with Elections Code Section 9203(a) and the City Attorney provided the Ballot Title and Summary on January 23, 2024. (See Attachment 2). The Summary noted that the Staff Report: Citizen Initiative to Repeal Water and Wastewater Rate Structures Page 2 May 13, 2024
proposed measure would necessitate a reevaluation of the City’s financial ability to complete planned infrastructure improvements for both water and wastewater systems. On March 11, 2024, proponents of the ballot measure submitted signed petitions. In accordance with the Elections Code, the City Clerk reviewed the petitions, did a prima facie count of signatures and filed the petition with the County on March 14, 2024. The City Clerk then verified the requisite number of signatures (235 registered voters) and certified the petition on April 25, 2024. A corrected certification was subsequently completed on May 9, 2024, to ensure compliance with the Elections Code.
Pursuant to California Elections Code Section 9215, the Council must now take one of the following actions:
1. Adopt the proposed ordinance, without alteration, thus reducing both water and wastewater rates to the structure adopted in 2021;
2. Adopt a resolution calling an election to submit the initiative measure to the voters at the next general municipal election on November 5, 2024;
3. Order City staff to provide a report, as specified in Elections Code Section 9212 and direct that the City Attorney also prepare an impartial analysis of the initiative. Such a report would then be required to be presented to the Council within 30 days, on or before June 12, 2024. Upon presentation of the report to the Council, the Council must then either adopt the ordinance within 10 days or submit the proposed Initiative Measure to the voters at the general municipal election on November 5, 2024.
FISCAL IMPACT
Adoption of the proposed ordinance would reduce water and wastewater rates to the level adopted in 2021 and will not account for increased costs of regular operations and maintenance or critical capital projects needed for the water and wastewater systems. It is estimated that adoption would reduce revenue for the Water Fund by $13,264,547 over the five-year rate period and lost revenue for Wastewater Fund by $3,191,701 from what the levels included in the adopted rate structures from December 2023. If adopted, staff would have to return to the Council to reevaluate the fiscal health and capacity of the Water and Wastewater Funds. These impacts would be further identified in the report that the Council could order staff to provide and present within 30 days.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the proposed ordinance, without alteration, thus reducing both water and wastewater rates to the structure adopted in 2021; or
2. Adopt a resolution calling an election to submit the initiative measure to the voters at the next general municipal election on November 5, 2024; or
3. Refer the proposed initiative measure to City staff for a report, as specified in Elections Code Section 9212, to be presented within 30 days, and to direct the City Attorney to prepare an impartial analysis of the initiative.
Staff Report: Citizen Initiative to Repeal Water and Wastewater Rate Structures Page 3 May 13, 2024
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution No. 23-37
2. Ballot Title and Summary
RESOLUTION NO. 23-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, AMENDING THE MASTER FEE SCHEDULE FOR WATER AND
WASTEWATER RA TES
WHEREAS, the City Council of the City of Grover Beach has created a Master Fee Schedule by adopting Resolution No. 23-37; and
WHEREAS, notice of the Public Hearing to consider proposed adjustments to the Master Fee Schedule for Water and Wastewater Rates was mailed at least 45 days prior to the scheduled Public Hearing as required by state law (Cal. Const. art. XIIID, §6); and WHEREAS, on December 11 , 2023, the City Council conducted a Public Hearing, considered testimony, and at the conclusion of the protest hearing determined that the number of valid written protests received was less than 50% plus one of the total number of water and wastewater customers or property owners subject to the fee in the City and approved the recommendations in the Utility Rate Study regarding adjustments to the Water and Wastewater Rates.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, DOES DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
THAT the Master Fee Schedule be amended as set forth in Exhibit "A" attached to this Resolution; and
THAT the fees listed in Exhibit "A" of this Resolution shall become effective as on the various dates as listed.
On motion by Council Member Zimmerman, seconded by Council Member Rushing, and on the following roll-call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Members - Rushing, Zimmerman and Mayor Bright
Council Members -Weirick and Mayor Pro Tern Robert
Council Members - None.
Council Members - None.
Council Members - None.
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 11TH day of December 2023. u~ .LA;-
KAREN BRIGHT, M)YOR
Attest:
WENDI
~~~~ B. SIMS, CITY CLERK
Attachment 1
CITY OF GROVER BEACH
MASTER FEE SCHEDULE
ADMINISTRATIVE SERVICES DEPARTMENT
Rates Effective
Descri tion Februa 1, 2024 Janua 1,2025 Janua 1, 2026 Janua Water Rates (Monthly)
Residential Base Charges
5/8" - Meter $ 17.91 $ 21.44 $ 25.67 $
3/4" - Meter $ 17.91 $ 21.44 $ 25.67 $
1.0" - Meter $ 17.91 $ 21.44 $ 25.67 $
1.5" - Meter $ 59.70 $ 71.47 $ 85.55 $
2.0" - Meter $ 95.52 $ 114.34 $ 136.87 $
3.0" - Meter $ 191 .04 $ 228.68 $ 273.73 $
4.0" - Meter $ 298.50 $ 357.31 $ 427.71 $
Residential Volume, in addition to Base Charge (per 100 Cubic Feet):
0-1 ,000CF $ 4.20 $ 5.03 $ 6.03 $
1,000 to 2,200 CF $ 8.51 $ 10.19 $ 12.20 $
>2,200 CF $ 11 .91 $ 14.26 $ 17.07 $
Non-Residential Base Charges
5/8" - Meter $ 17.91 $ 21 .44 $ 25.67 $
3/4" - Meter $ 26.87 $ 32.17 $ 38.51 $
1.0" - Meter $ 29.85 $ 35.74 $ 42.79 $
1.5" - Meter $ 59.70 $ 71.47 $ 85.55 $
2.0" - Meter $ 95.52 $ 114.34 $ 136.87 $
3.0" - Meter $ 191 .04 $ 228.68 $ 273.73 $
4.0" - Meter $ 298.50 $ 357.31 $ 427.71 $
Landscape Volume, in addition to Base Charge (per 100 Cubic Feet):
All Usage $ 9.11 $ 10.91 $ 13.06 $
All Other Volume, in addition to Base Charge (per 100 Cubic Feet):
All Usage $ 7.90 $ 9.46 $ 11 .33 $
Revised 12/7/2023
1, 2027 Janua 1, 2028
30.73 $ 31 .96
30.73 $ 31 .96
30.73 $ 31 .96
102.41 $ 106.51
163.84 $ 170.40
327.66 $ 340.77
511 .97 $ 532.45
7.22 $ 7.51
14.61 $ 15.20
20.44 $ 21 .26
30.73 $ 31 .96
46.10 $ 47.95
51.22 $ 53.27
102.41 $ 106.51
163.84 $ 170.40
327.66 $ 340.77
511 .97 $ 532.45
15.64 $ 16.27
13.57 $ 14.12
CITY OF GROVER BEACH
MASTER FEE SCHEDULE
ADMINISTRATIVE SERVICES DEPARTMENT
Rates Effective
Descri lion Februa 1, 2024 Janua 1, 2025 Janua 1, 2026
Wastewater Rates (Monthly)
Boarding house (per unit) $ 18.57 $ 22.19 $ 26.52
Plus per bedroom charge $ 11.95 $ 14.28 $ 17.06
Car washes & Laundromats minimum charge $ 7.40 $ 8.84 $ 10.56 Church $ 18.00 $ 21 .51 $ 25.70
Plus per parsonage or dwelling unit $ 15.32 $ 18.31 $ 21 .88 Commercial establishment (Public Place) (Up to 5 Fixtures) $ 17.97 $ 21.47 $ 25.66 Each additional fixture $ 4.92 $ 5.88 $ 7.03
Factories, industrial plants, with 20 or less employees $ 12.09 $ 14.45 $ 17.27 Each additional employee over 20 $ 1.39 $ 1.66 $ 1.98
Hotel, motel, auto court or lodge (per unit) $ 18.46 $ 22.06 $ 26.36 Mobile home (per space) $ 15.32 $ 18.31 $ 21 .88
Restaurants minimum charge $ 2.56 $ 3.06 $ 3.66
Schools minimum annual charge per ADA and employees $ 3.96 $ 4.73 $ 5.65 Schools with Cafeterias additional
Per ADA and employees $ 1.65 $ 1.97 $ 2.35
Single-Family dwelling unit $ 15.32 $ 18.31 $ 21 .88
Theater, clubhouse or place of amusement $ 17.97 $ 21.47 $ 25.66 Travel trailer and recreation vehicle space $ 7.89 $ 9.43 $ 11 .27 Multi-Family, Two or more dwellings (per unit) $ 15.32 $ 18.31 $ 21 .88 Plus Per Each coin-operated washer $ 3.35 $ 4.00 $ 4.78 Excess Discharge per 100 cubic feet (3,000 Cubic Feet
per GBMC 7182) $ 0.48 $ 0.57 $ 0.68
Revised 12/7/2023
Janua 1 2027 Janua 1 2028
$ 31 .69 $ 32.96
$ 20.39 $ 21.21
$ 12.62 $ 13.12
$ 30.71 $ 31 .94
$ 26.15 $ 27.20
$ 30.66 $ 31 .89
$ 8.40 $ 8.74
$ 20.64 $ 21.47
$ 2.37 $ 2.46
$ 31 .50 $ 32.76
$ 26.15 $ 27.20
$ 4.37 $ 4.54
$ 6.75 $ 7.02
$ 2.81 $ 2.92
$ 26.15 $ 27.20
$ 30.66 $ 31.89
$ 13.47 $ 14.01
$ 26.15 $ 27.20
$ 5.71 $ 5.94
$ 0.81 $ 0.84
733 Marsh Street, Suite 200, San Luis Obispo, California 93401 Telephone: (805) 471-7080 Fax: (805) 930-1031
M E M O R A N D U M
By E-Mail: [email protected]
DATE: January 23, 2024 CLIENT/MATTER:
03586-05
TO: Wendi Sims
City Clerk
City of Grover Beach
CC: Matt Bronson, City Manager
FROM: City Attorney's Office
RE: Proposed Initiative Measure to Repeal Resolution No. 23-37 On January 8, 2024, the City received a Notice of Intention to Circulate Petition for a proposed local ballot measure to repeal City resolution 23-36 amending the City’s master fee schedule for water and wastewater rates (“Measure”). Accompanying the Measure was a request to prepare a Ballot Title and Summary. The City Clerk’s office immediately transmitted that request to the City Attorney’s office in accordance with Elections Code Section 9203, subdivision (a).
In accordance with Elections Code Section 9203, subdivision (a), the following is the City Attorney’s Ballot Title and Summary of the Measure.
Pursuant to California Elections Code section 9203, subdivision (a), the City Attorney has prepared the following ballot title and summary of the proposed initiative Measure. The ballot title and summary must be printed across the top of each page of the petition whereon signatures are to appear as required by Elections Code section 9203, subdivision (b).
A Citizen’s Initiative Measure to Repeal Water and Wastewater Rate Increases Enacted by City Council Resolution No. 23-37
The purpose of this measure is to ask registered voters in the City of Grover Beach if they wish to repeal Resolution No. 23-37, adopted by the Grover Beach City Council on December Attachment 2
- 2 -
11, 2023. The resolution authorizes a rate structure allowing for increases in water and wastewater rates over a four-year period beginning February 2024.
Resolution No. 23-37 was enacted to fund water and sewer projects within the City, encompassing various infrastructure improvements, including upgrades to a booster station, reservoir maintenance, increasing sewer line capacity and upgrading aged sewer lines. The water rate increase was also enacted to fund the City’s share of costs for the Central Coast Blue recycled water project, a collaborative project involving the cities of Grover Beach, Arroyo Grande, and Pismo Beach.
Successful passage of this measure would repeal water and wastewater fee increases enacted under City Council Resolution 23-37 and would necessitate a reevaluation of the City’s financial ability to complete planned infrastructure improvements.