ITEM 5. 2
CITY MANAGER' S REPORT
NOVEMBER 10, 2025 CITY COUNCIL REGULAR MEETING
ITEM: PUBLIC HEARING ( PUBLISHED NOTICE) TO
CONSIDER AN ORDINANCE OF THE CITY OF
LATHROP TO ADD SECTIONS 13. 04. 125 AND
13.6.25 TO TITLE 13 (" PUBLIC SERVICES") OF
THE LATHROP MUNICIPAL CODE TO ESTABLISH
CAPACITY ALLOCATION AND CONSUMPTION
REVIEW
RECOMMENDATION: City Council to Consider the Following:
1. Hold a Public Hearing; and
2. Introduction and First Reading of an Ordinance
to Add Sections 13. 04. 125 and 13.6.25 to
Title 13 (" Public Services") of the Lathrop
Municipal Code to Establish Capacity Allocation
and Consumption Review
SUMMARY:
Staff request that City Council hold a public hearing, consider all information and public testimony and, if determined to be appropriate, adopt an Ordinance to add Sections 13. 04. 125 and 13.6.25 "Capacity Allocation and Consumption Review" to the Lathrop Municipal Code. The purpose of this Ordinance ( Attachment A) is to establish clear authority and methodology for the City to assess capacity charges based on measured water and sewer usage, as determined by metered consumption.
BACKGROUND:
Pursuant to California Government Code ( GOV) Section 66013, the local agency is authorized to impose capacity charges proportional to the benefit to the property being changed. Allocating capacity charges based on actual usage is necessary to ensure that fees are proportional to each user' sdemand on City infrastructure and to prevent unfair cost burdens on existing or future ratepayers.
The proposed Ordinance ensures that sufficient water and sewer capacity directly supports the public health, safety, and welfare by protecting public infrastructure, safeguarding water quality, and ensuring reliable service for all system users.
REASON FOR RECOMMENDATION:
Approval of the Ordinance will establish clear authority and methodology for the City to assess capacity charges based on recorded consumption volumes.
CITY MANAGER' S REPORT PAGE 2
NOVEMBER 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER AN ORDINANCE OF THE CITY OF LATHROP TO ADD SECTIONS 13. 04. 125 AND 13.6.25 TO TITLE 13 (" PUBLIC SERVICES") OF THE LATHROP MUNICIPAL CODE TO
ESTABLISH CAPACITY ALLOCATION AND CONSUMPTION REVIEW
FISCAL IMPACT:
None.
ATTACHMENTS:
A. Proposed Ordinance to Add Sections 13. 04. 125 and 13.6.25 to Title 13 Public Services") of the Lathrop Municipal Code to Establish Capacity Allocation and Consumption Review
Exhibit A: Section 13. 04. 125 Capacity Allocation and Consumption Review Exhibit B: Section 13.6.25 Capacity Allocation and Consumption Review CITY MANAGER' S REPORT PAGE 3
NOVEMBER 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER AN ORDINANCE OF THE CITY OF LATHROP TO ADD SECTIONS 13. 04. 125 AND 13.6.25 TO TITLE 13 (" PUBLIC SERVICES") OF THE LATHROP MUNICIPAL CODE TO
ESTABLISH CAPACITY ALLOCATION AND CONSUMPTION REVIEW
APPROVALS:
eron lbarran Date
Assistant Engineer
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FOR
Brad Taylor
City Engineer
Cari Jam
Finance ' 1i ector
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Date
lISloa. 5
Date
Thomas Hedegard Date
Deputy City Manager
Michael King
Assistant City Manager
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Date
Salvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
ORDINANCE NO. 25 -
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ADD SECTIONS 13. 04. 125 AND 13.6.25 TO TITLE 13 (" PUBLIC SERVICES") TO
THE LATHROP MUNICIPAL CODE TO ESTABLISH CAPACITY ALLOCATION
AND CONSUMPTION REVIEW
WHEREAS, pursuant to California Government Code ( GOV) Section 66013, the local agency is authorized to impose capacity charges proportional to the benefit to the property being changed; and
WHEREAS, staff has identified necessary additions to Lathrop Municipal Code LMC) Title 13 titled " Public Services" to establish clear authority and methodology for the City to assess capacity charges based on measured water and sewer usage, as determined by metered consumption; and
WHEREAS, staff request that the City Council consider adopting LMC Sections
13. 04. 125 and 13.6.25, as shown in Exhibit A incorporated by reference herein.
NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Lathrop does hereby approve the addition of Sections 13. 04. 125 and 13.6.25 of Title 13 (" Public Services") of the Lathrop Municipal Code as shown in Exhibit A, incorporated by reference herein.
Section 1. Sections 13. 04. 125 and 13.6.25 entitled " Capacity Allocation and Consumption Review" of the City of Lathrop Municipal Code are hereby added as shown in Exhibit A, attached hereto and incorporated by reference herein.
Section 2. Duty of Care. This Ordinance is not intended to and shall not be construed or given effect in a manner that imposes upon the city or any officer or employee thereof a mandatory duty of care toward persons and property within or without the city so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
Section 3. Severability. If any section, subsequent subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise invalid, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, subdivision, paragraph, sentence, clause or phrase.
Section 4. Effective Date. This Ordinance shall take legal effect 30 days from and after the date of its passage.
Section 5. Publication. Within fifteen days of the adoption of this Ordinance, the City Clerk shall make a copy of this Ordinance to be published in full accordance with Section 36933 of the Government Code.
THIS ORDINANCE was introduced at a regular meeting of the City Council of the City of Lathrop on the 10th day of November 2025, and was PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lathrop on the day of 2025 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST:
Teresa Vargas
City Clerk
APPROVED AS TO FORM:
Salvador Navarrete
City Attorney
PROPOSED SECTIONS EXHIBIT A
Title 13. Public Services
Chapter 13. 04. WATER SERVICE SYSTEM
13. 04. 125. Capacity Allocation and Consumption Review.
A. Capacity Requirement. Prior to City' sfinal approval of improvement plans, authorization of any water service connection, issuance of a building permit, or issuance of a final inspection certificate for development, the applicant shall acquire or secure sufficient allocated water capacity for the property based on projected demand, as calculated by the City Engineer. The applicant shall pay all connection fees, capacity fees, and reimbursements determined by recorded consumption volumes or estimated capacity needs, calculated by the City Engineer in accordance with the City' sthen -applicable Fee Schedule, City Standards, implementing Resolutions, and City regulations. No permit or certificate described in this subsection shall be issued until such fees are paid and adequate allocated water capacity is acquired or secured.
B. Monitoring, Audits, and Records. The City may monitor and audit metered consumption and other records at any time to determine average daily use and confirm compliance with allocated capacity. The City may require submittal of usage records, meter readings, or other data reasonably necessary to implement this Section. The City may inspect meters and service connections during normal business hours, or at other reasonable times to verify actual consumption.
C. Exceedance, Mandatory Acquisition, and Cure Period. Any water use that causes average daily use to exceed the property' sallocated capacity is a violation of this Chapter. Upon written notice of violation, the property owner shall, within thirty (30) calendar days, either:
1. Secure sufficient additional allocated capacity to eliminate the violation by purchasing City -owned capacity or securing an approved private capacity transfer as allowed under Subsection D; or
2. Reduce average daily use to at or below allocated capacity through operational changes or other means acceptable under this Title.
If the applicant demonstrates to the satisfaction of the City Engineer that additional capacity cannot be procured within the thirty (30) day period despite good -faith efforts, the City Engineer may grant a limited - time extension to allow the City sufficient time to make capacity available for purchase. The extension is not automatic and is subject to approval of the City Engineer.
D. Private Capacity Transfers and City Facilitation. The owner may acquire required capacity from the City or via a transfer or sale of an existing allocated capacity right from a private third property owner, subject to City Engineer approval and this Chapter. Private capacity transfers must be governed by the City' s general rules for contracts, agreements, and purchasing authority and comply with applicable state law and City policies. The City may require verification that the transferred capacity does not cause noncompliance at the donor property.
E. Fees, Objective Determinations, and Role of the City Engineer. All Capacity Fees, surcharges, and calculations shall be made in accordance with the City' s Fees Schedule, City Standards, and implementing resolutions. The City Engineer' s determinations under this section shall apply the City' s
Standards and Fee Schedule. Where the calculation
methodology requires judgement in unit conversion or unusual cases, the City Engineer shall apply documented, objective criteria and shall briefly state the factual basis for any non - routine calculation in the administrative record.
G. Enforcement and Remedies. Violations of this Section may result in penalties, surcharges, administrative fines, permit denial, suspension of water service, or other enforcement measures as provided in this Title and Chapter 1.2. The City shall follow all required notice and hearing procedures prior to any suspension of service. In addition to fines and surcharges, the City may record a notice of noncompliance against the subject property and seek injunctive and other legal relief as appropriate.
Ord. 25-
PROPOSED SECTIONS EXHIBIT B
Title 13. Public Services
Chapter 13.6. SEWER SERVICE SYSTEM
13.6.25. Capacity Allocation and Consumption Review.
A. Capacity Requirement. Prior to City' sfinal approval of improvement plans, authorization of any sewer service connection, issuance of a building permit, or issuance of a final inspection certificate for development, the applicant shall acquire or secure sufficient allocated sewer capacity for the property based on projected discharge, as calculated by the City Engineer.
The applicant shall pay all connection fees, capacity fees, and reimbursements determined by recorded consumption volumes or estimated capacity needs, calculated by the City Engineer in accordance with the City' sthen -applicable Fee Schedule, City Standards, implementing Resolutions, and City regulations. No permit or certificate described in this subsection shall be issued until such fees are paid and adequate allocated sewer capacity is acquired or secured.
B. Monitoring, Audits, and Records. The City may monitor and audit metered sewer discharge, water -use -to -sewer conversion records, and other relevant documentation at any time to determine average daily discharge and confirm compliance with allocated sewer capacity. The City may require submittal of usage records, meter readings, flow monitoring reports, building occupancy and fixture counts, or other data reasonably necessary to implement this Section. The City may inspect meters, flow monitoring devices, service connections, or on -site collection facilities during normal business hours, or at other reasonable times to verify actual discharge.
C. Exceedance, Mandatory Acquisition, and Cure Period. Any discharge that causes average daily discharge to exceed the property' sallocated capacity is a violation of this Chapter. Upon written notice of violation, the property owner shall, within thirty ( 30) calendar days, either:
1. Secure sufficient additional allocated capacity to eliminate the violation by purchasing City -owned capacity or securing an approved private capacity transfer as allowed under Subsection D; or
2. Implement and document operational or structural changes ( including but not limited to flow reduction measures, fixture changes, or on -site storage/ treatment acceptable under this Title) to reduce average daily discharge to at or below allocated sewer capacity.
If the applicant demonstrates to the satisfaction of the City Engineer that additional capacity cannot be procured within the thirty ( 30) day period despite good -faith efforts, the City Engineer may grant a limited -time extension to allow the City sufficient time to make capacity available for purchase. The extension is not automatic and is subject to approval of the City Engineer.
D. Private Capacity Transfers and City Facilitation. The owner may acquire required capacity from the City or via a transfer or sale of an existing allocated capacity right from a private third property owner, subject to City Engineer approval and this Chapter. Private capacity transfers must be documented in a form approved by the City, comply with applicable state law and City policies, and be recorded as required by the City. The City may require verification that the transferred capacity does not cause noncompliance at the donor property.
E. Fees, Objective Determinations, and Role of the City Engineer. All Capacity Fees, surcharges, and calculations shall be made in accordance with the City' s Fees Schedule, City Standards, and implementing resolutions. The City Engineer' s determinations under this section shall apply the City' s
Standards and Fee Schedule. Where the calculation
methodology requires judgement in unit conversion or unusual cases, the City Engineer shall apply documented, objective criteria and shall briefly state the factual basis for any non - routine calculation in the administrative record.
G. Enforcement and Remedies. Violations of this Section may result in penalties, surcharges, administrative fines, permit denial, suspension of sewer service, or other enforcement measures as provided in this Title and Chapter 1.2. The City shall follow all required notice and hearing procedures prior to any suspension of service. In addition to fines and surcharges, the City may record a notice of noncompliance against the subject property and seek injunctive and other legal relief as appropriate.
Ord. 25-
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