Resolution No.
STOCKTON CITY COUNCIL
ADOPT A RESOLUTION AUTHORIZING A PUBLIC HEARING TO CONSIDER ADJUSTMENTS IN THE CITY’S WASTEWATER RATES AND CHARGES AND AUTHORIZING AND DIRECTING THE CITY MANAGER TO MAIL A NOTICE OF THE PUBLIC HEARING TO CONSIDER THE PROPOSED ADJUSTMENTS On August 22, 2023, by Resolution 2023-08-22-1214, the City Council approved a professional services contract with HDR Engineering, Inc., to evaluate the Wastewater Utility’s revenue requirements, prepare a cost-of-service analysis, and design rates that proportionately allocate the costs of providing wastewater service among all customer classes and customers within each class; and The Wastewater Rate Study used three interrelated analyses to address the adequacy and equity of the utility's rates. These three analyses were the revenue requirement analysis, which compares the revenues to the expenses of the utility to determine the overall rate adjustments required; the cost-of-service analysis, which allocates the revenue requirement to the various customer classes of service in a fair and equitable manner; and the rate design analysis, which considers both the level and structure of the rate design to collect the target level of revenue; and Based on the analyses, the Municipal Utility Department’s (MUD) proposed wastewater rates have been developed to meet the legal requirements of the California Constitution Article XIII D, Section 6 (Article XIII D), commonly referred to as Proposition 218. A key component of Article XIII D requires that the wastewater rates may not exceed the cost of providing wastewater service. Likewise, Article XIII D determines that the amount of the wastewater service charge levied upon any parcel or person shall not exceed the proportional cost of the service attributable to the parcel. The revenue requirements for the wastewater utility are allocated to the different customer classes based on the respective volume and strength of sewer discharge produced, and customer group. The rate design reflects the revenue requirement findings, meets the City’s goals and objectives, is cost-based and equitably and proportionately distributed among all the customer classes; and On August 7, 2024, and August 8, 2024, the Draft Wastewater Rate Study (Attachment A) and proposed rate adjustments were presented to the Water Advisory Group and Council Water Committee, respectively. Following the Water Advisory Group’s recommendation, the Council Water Committee approved forwarding the proposed wastewater rate increases to City Council for consideration and to proceed with the Article XIII D notice and Public Hearing process; and The City of Stockton will conduct a public information session in September 2024, to provide information to interested members of the public regarding the proposed rate increases and the Article XIII D process. This session will be recorded and posted on the City’s website; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
The City Manager is authorized and directed to mail a notice of a Public Hearing to consider the adoption of proposed increases to the City's wastewater rates and charges. The notice shall be mailed to all City of Stockton wastewater utility customers and the record owners of property upon which the proposed wastewater rates and charges are proposed. The notice shall include the amount of the proposed wastewater rates and charges, the reasons for the proposed adjustments to the wastewater rates and, how the wastewater rates and charges were calculated, and the date, time and location of the Public Hearing to consider the proposed wastewater rates and charges.
The City Council authorizes the Public Hearing to be held in the future for the consideration of the proposed wastewater rates and charges. The Public Hearing shall be held at least 45 days after the notice of the public hearing has been mailed.
The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED August 20, 2024 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton