RESOLUTION NO. 25-178
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, TO APPROVE THE NOVEMBER 2025 WATER RATE STUDY FINAL REPORT, APPROVE THE PUBLIC HEARING NOTICE, SET A DEADLINE OF JANUARY 15, 2026 FOR SUBMISSION OF OBJECTIONS, SCHEDULE A PUBLIC HEARING FOR FEBRUARY 3, 2026 TO CONSIDER OBJECTIONS (EXHAUSTION OF ADMINISTRATIVE REMEDIES) AND SCHEDULE A PUBLIC HEARING FOR FEBRUARY 17, 2026 TO CONSIDER ADOPTION OF PROPOSED UPDATES TO WATER RATES AND CHARGES UNDER PROPOSITION 218 AND CONDUCT A PROTEST HEARING WHEREAS, the City owns and operates approximately 230 miles of water lines, 15 reservoirs, 16 pump station and 56 pressure reducing stations; and WHEREAS, the City receives imported water from Metropolitan Water District from Northern California and the Colorado River Basin through its wholesaler Municipal Water District of Orange County; and WHEREAS, the City has local water resources from two wells and produces recycled water at the Water Reclamation Plant for irrigation purposes; and WHEREAS, the City provides water service meeting state and federal standards to approximately 17,600 service meters consisting of residential, multifamily, irrigation and commercial accounts; and WHEREAS, in order to provide service to City customers and maintain operation of the water system, the City Council hired Water Resources Economics, LLC on May 6, 2025 to conduct a Cost-of-Service Study to evaluate the City’s expenses and revenues; and WHEREAS, Water Resources Economics, LLC reviewed the City’s water finances, presented preliminary recommendations and received direction from the City Council on September 16, 2025; and WHEREAS, on October 7, 2025, the City Council adopted water rate setting procedures under Proposition 218 and Government Code sections 53750 through 53759.2 and 54354.5 to establish a process for property owner objections to proposed water fees; and WHEREAS, Water Resources Economics, LLC completed a Cost-of-Service Study (November 2025 Water Rate Study Final Report) which recommended changes in the rate structure, five-year rate adjustments, fixed and pass through of charges from the Municipal Water District of Orange County, and establishment of recycled water rates and demand manager rates in the event there is a required reduction in water use; and WHEREAS, a draft Notice to Property Owners and Tenants of Public Hearings on Proposed Water Rates (“Public Hearing Notice”) has been prepared with information regarding the proposed rates and written objections and protest requirements; and WHEREAS, the City Council received a presentation regarding the November 2025 Water Rate Study Final Report and heard and considered any public comment related thereto at its regular meeting of November 18, 2025.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. The above recitations are true and correct and fully incorporated herein.
SECTION 2. The City Council approves the City of San Clemente November 2025 Water Rate Study Final Report prepared by Water Resources Economics, LLC.
SECTION 3. A deadline of January 15, 2026 at 5:00 p.m. is hereby set for the submission of written objections.
SECTION 4. A Public Hearing is hereby set for February 3, 2026, at 5:30 p.m., to consider all timely written objections submitted by property owners that choose to exhaust administrative remedies, along with the written responses thereto prepared by City staff, and determine whether clarifications or further review or reduction or abandonment of the proposed water rate and charge increases are warranted.
SECTION 5. A Public Hearing is hereby set for February 17, 2026, at 5:30 p.m., to conduct a protest hearing under Proposition 218 and to consider proposed adjustments to and adoption of water rates and service charges based on the analysis in the City of San Clemente November 2025 Water Rate Study Final Report.
SECTION 6. The Public Hearing Notice is hereby approved and City staff is authorized and directed to mail to all property owners receiving City water services (including tenants who are directly liable to pay water rates) said Notice in a form substantially similar to that presented to the City Council on November 18. 2025.
SECTION 7. City Staff is hereby authorized and directed to take such other and further actions as are necessary and proper to fulfill the purposes of this resolution and ensure that the requirements of applicable law, including Proposition 218 and Government Code sections 53750 through 53759.2 and 54354.5, are met and that such Public Hearings are duly noticed.
SECTION 8. That 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 November, 2025.
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. 25-178 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of November, 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. 25-178 Page 2
Attachment 1