RESOLUTION NO. 26-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, MAKING FINDINGS FOLLOWING OBJECTION HEARING, DIRECTING WRITTEN RESPONSES TO COMMUNICATIONS REGARDING PROPOSED UPDATES TO WATER RATES (EXHAUSTION OF ADMINISTRATIVE REMEDIES) AND DETERMINING THAT NO CHANGES ARE WARRANTED IN IN ACCORDANCE WITH GOVERNMENT CODE SECTIONS 53759.1 AND 53759.2 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) that 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, on November 18, 2025, based on the November 2025 Water Rate Study Final Report prepared by Water Resources Economics, LLC, the City Council directed staff to mail a Proposition 218 public hearing notice to all property owners served by City water, and that notice established a deadline to receive written objections by January 15, 2026 at 5:00 p.m., set a Public Hearing for February 3, 2026, at 5:30 p.m. to consider all timely written objections and set a Public Hearing 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; and WHEREAS, those Proposition 218 public hearing notices were mailed to all property owners receiving City water services (including tenants who are directly liable to pay water rates) on December 1, 2025, a minimum of 45 days prior to the requirement for objections to be received by the City on January 15 at 5:00 p.m.; and WHEREAS, the City received one letter from a ratepayer/property owner and one letter from an unknown property that were labeled as an objection and were received by the City prior to January 15 at 5:00 p.m.; and WHEREAS, the City Council conducted a duly notice public objection hearing on February 3, 2026 to consider and respond to all timely written legal objections to proposed water rates and fees and determine whether clarifications, further review or reduction or abandonment of the proposed water rates, fees and charges is warranted in accordance with Government Code sections 53759.1 and 53759.2, during which all those wishing to be heard were heard.
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 determines the two letters labeled as objections and referenced in the recitals do not meet the definition of a “written objection” as defined by the California Government Code Section 53759.1(c)(4) because they did not include sufficient grounds for alleging the proposed water rates and charges do not comply with the requirements of Proposition 218 and one did not timely identify a property address.
SECTION 3. The City Council determines that the written responses to the two letters (as provided in the attachments to the February 3, 2026 Staff Report) adequately address the concerns raised in the two letters labeled objections, and direct staff to mail the responses in substantially the same forms as presented on February 3, 2026 to the City Council.
SECTION 4. The City Council determines that that no clarifications or changes are warranted for the Water Rate Study Report or the proposed adjustments to water rates or charges as described in the Proposition 218 public hearing notice.
SECTION 5. 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 February, 2026.
ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, 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. 26-20 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of February, 2026, 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. 26-20 Page 2
Attachment 1