RESOLUTION NO. 25-151
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, ESTABLISHING WATER RATE SETTING PROCEDURES UNDER PROPOSITION 218 AND GOVERNMENT CODE 53750 THROUGH 53759.2 AND 54354.5 FOR PROPERTY OWNER OBJECTIONS TO PROPOSED WATER FEES WHEREAS, the City of San Clemente (“City”) provides water service to property owners (who may also be referred to as “owners”) within the City’s service area, and establishes the amount of water rates to be charged customers; and WHEREAS, California law authorizes the City to charge a fee to the property owners or property owners’ “tenants” (who may be collectively referred to as “ratepayers” or “customers”) for the proportionate cost of providing water services to each customer in accordance with the procedural and substantive requirements of the voter-approved ballot measure known as “Proposition 218” (California Constitution Article XIII D; as it is implemented by the Legislature at Government Code sections 53750 – 53759.2; and as it has been interpreted by judicial decisions). The City refers to those fees as water rates (“water rates” or “rates”); and WHEREAS, under Proposition 218, the City’s water rates are considered to be a “fee” for a “property-related service” (also referred to as a “property-related fee”), subject to the particular requirements of Constitution Article XIII D, Section 6. A property-related fee is one imposed upon any parcel or person as an incident of property ownership. In general, the City may only increase its existing water rates if the City (1) calculates the water rates in accordance with Proposition 218, (2) conducts a noticed public hearing before the City Council, as described in this resolution, and (3) a “timely written protest” is not submitted by property owners representing a majority of the parcels served by the City; and WHEREAS, under Government Code sections 53759.1 and 53759.2 (known as “AB 2257”), the City may establish a supplemental process for objecting property owners to exhaust administrative remedies, also described in this resolution, by which the City will take specified actions in response to any “timely written objection.” Under this process, only an owner who submits a timely written objection will have a right to challenge a proposed increase in water service charges through a legal proceeding. (These supplemental processes were authorized by Assembly Bill No. 2257, Chapter 561, Statutes of 2024, effective January 1, 2025); and WHEREAS, the purpose of this resolution is to document the processes that the City will follow in considering proposed new or increased water rates, including compliance with Proposition 218 as well as the exhaustion of administrative procedures under AB 2257. The processes described in this resolution provide a meaningful opportunity for a property owner to submit a written objection to proposed new or increased water rates early in the rate consideration process, and to provide an opportunity for the City to address or resolve any objections before the City Council makes a final decision on whether to adopt a proposed water rate pursuant to Proposition 218; and WHEREAS, this resolution will identify the process that the City will follow in order to implement the administrative remedies to be exhausted by property owners under Government Code sections 53759.1 prior to an owner initiating litigation to challenge the water rates. In general, at least 45 days before a public hearing to consider a proposed new or increased water rate, the City will make available the proposed water rates, and post the written basis for the proposed water rates on its internet website. The City will provide at least 45 days for any property owner to review the proposed water rates and timely submit to the City a written objection to the water rates that specifies the grounds for alleging noncompliance with Proposition 218. The City will consider and provide a substantive written response to each timely written objection submitted prior to the close of the public hearing described in Section 1(C) of Exhibit A to this resolution; and WHEREAS, for any water rates approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those water rates, unless that person or entity has timely submitted to the City a written objection to those rates that specifies the grounds for alleging noncompliance with Proposition 218; and WHEREAS, the City Council hereby intends to adopt the exhaustion of administrative remedies procedure as outlined in Government Code section 53759.1, and the administrative record principles contained in Government Code section 53759.2.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. That the above recitations are true and correct and fully incorporated herein by this reference.
SECTION 2. The City Council hereby adopts the water rate setting procedures attached hereto as Exhibit “A,” and incorporated fully herein by reference (“Water Rate Setting Procedures”). The Water Rate Setting Procedures explicitly incorporate and implement the requirements contained in Proposition 218 and the procedures by which property owners are required to exhaust administrative remedies as set forth in Government Code section 53759.1(c).
SECTION 3. For any water rate adopted or approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those water rates, unless that person or entity has timely submitted to the City a written objection to those water rates in accordance with this resolution that specifies the grounds for alleging noncompliance with Proposition 218.
SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _____ day of ____________________, _______.
ATTEST:
___________________________ __________________________
City Clerk of the City of Steve Knoblock, Mayor of the
San Clemente, California City of San Clemente, California STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-151 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of October, 2025, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
Resolution No. 25-151 Page 2
Attachment 1