City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: December 1, 2025
Report #:2511-5408
TITLE
Adoption of (Corrected) Resolution Amending Five Rate Schedules Setting Forth Utility Connection Fees and Other Charges: Utilities Rate Schedule E-15 (Electric Service Connections), W-5 (Water Service Connections), G-5 (Gas Service Connections), S-5 (Sewer Service Connections) and C-1 (Utility Miscellaneous Charges); CEQA Status: Not a Project Under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a).
RECOMMENDATION
Staff recommends that Council adopt the attached Resolution (Attachment A) and related Rate Schedules (Attachments B - F) to correct a clerical error in a resolution adopted on October 20, 2025.
BACKGROUND
The City Council periodically adopts a resolution amending Utility Rate Schedules E-15, G-5, W- 5, S-5, And C-1 (Connection and Capacity Fees for the Electric, Water, Gas, and Wastewater Utilities, and Miscellaneous Utility Charges). At its meeting on October 20, 2025, following a noticed public hearing, the Council adopted its resolution amending these rate schedules effective January 1, 2026. For Rate Schedule C-1 (Utility Miscellaneous Charges), staff inadvertently uploaded a summary draft 2026 rate table, rather than the full text of the C-1 2026 rate schedule. Also, due to agenda revisions, Resolution 10253 misstated its adoption date; this has been corrected to reflect Council’s October 20, 2025 adoption of the Resolution.
ANALYSIS
To avoid the confusion that could be caused by this clerical error, Staff recommends adoption of the attached corrected resolution that includes the C-1 (Utility Miscellaneous Charges) rate schedule rather than the summary rate table, which also included draft rate calculations rather than final rates in some lines. Because the adopted rate schedules do not go into effect until January 1, 2026, there has been no negative impact on Customers from this clerical error.
On October 20, 2025 (Staff Report #2505-4736), Council adopted Resolution 10253, which adopted 2026 rate schedules for certain connection charges and miscellaneous utility charges.
Proposed 2026 Connection Fee Rate Schedules E-15, W-5, G-5 and S-5 were all properly uploaded to the system and matched what was intended for Council approval and described in the staff report. However, staff inadvertently uploaded a 2026 rate table summary of Rate Schedule C-1, an early draft of the rates and included some rates that were different from the amounts recommended in the staff report and the uploaded rate schedules.
FISCAL/RESOURCE IMPACT
There is no financial cost impact resulting from this error as all the rate schedules included in this Resolution have an effective date of January 1, 2026; therefore no customers have been charged according to the rate table attached in error.
STAKEHOLDER ENGAGEMENT
The City Council reviewed staff’s proposal for the fees at its October 20, 2025 meeting. At that time, the City Council unanimously approved the staff report to increase the fees by the amounts shown in the report. This action simply corrects a clerical error in the format and fee amounts for schedule C-1, and avoids any confusion between the inadvertently uploaded rate table’s draft summaries of various rates and the schedules that were adopted by Council. There is no change in any fees from what was presented to the Council in the staff report on October 20, 2025.
ENVIRONMENTAL REVIEW
Adoption of this resolution is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to California Code of Regulations Title 14, Chapter 3, Section 15273(a), because the fees and charges proposed are necessary to recover the cost of providing utility service and meet operating expenses. Alternatively, it is not a project Under CEQA Guidelines Sections 15378(b)(4) and (5), as government fiscal and administrative activities that will not result in physically significant changes in the environment.
ATTACHMENTS
Attachment A: Resolution
Attachment B: Rate Schedule E-15_effective_2026-01-01_redline Attachment C: Rate Schedule G-5_effective_2026-01-01_redline Attachment D: Rate Schedule W-5_effective_2065-01-01_redline Attachment E: Rate Schedule S-5_effective_2026-01-01_redline Attachment F: Rate Schedule C-1_effective_2026-01-01_redline APPROVED BY:
Alan Kurotori, Director of Utilities