Agenda, regular meeting — Waterford City Council, December 18, 2025

AGENDA

WATERFORD CITY COUNCIL - REGULAR MEETING

WATERFORD CITY HALL, CITY COUNCIL
CHAMBERS 101 “E” STREET, WATERFORD, CA

CALL TO ORDER &
FLAG SALUTE: Mayor Goeken
INVOCATION: Pastor Pete Mar, Community Bible Church
ROLL CALL:

Mayor: Charlie Goeken
Vice Mayor: Jamie Hilton
Council Members: Guadalupe Gutierrez, Christine Harris, Elizabeth Talbott ADOPTION OF AGENDA:

A member of the City Council motions to accept the items on the agenda for consideration as presented, or motions for any additions, including emergency items, or items pulled from consideration.

CONFLICT OF INTEREST DECLARATION:

Declaration by City Council members who may have a direct Conflict of Interest on any scheduled agenda item to be considered.

1. 2.

This is the portion of the meeting specifically set aside to invite public comments regarding any matters not appearing on the agenda and within the jurisdiction of the City Council or the Successor Agency. Individual audience participation is limited to a maximum of 5 minutes. We encourage you to share your name and address or submit a speaker card to the City Clerk.

3. All Matters listed under the Consent Calendar are considered routine by the Council and will be adopted by one action of the Council unless any Council Member desires to discuss any item or items separately. In that event, the Mayor will remove that item from the Consent Calendar and action will be considered separately.
3a: MOTION: Waiving all Readings of Ordinances and Resolutions, except by title. 3b: RESOLUTION: Adopting Resolution 2025-68, Approving the Warrant Register in the Amount of $792,911.24 for the Period of December 8, 2025.
3c: MOTION: Approving Minutes of the Regular City Council Meeting held December 4, 2025.

WATERFORD CITY COUNCIL REGULAR MEETING – December 18, 2025 - 6:30 PM

COMMUNICATIONS FROM THE AUDIENCE

PRESENTATIONS

ADOPTION OF CONSENT CALENDAR
3d: MOTION: Reappointing Jose Aldaco to the Stanislaus Council of Governments (StanCOG) Measure L Oversight Committee.
3e: MOTION: Accepting the City of Waterford Water Rate and Fee Study prepared by LT Municipal Consultants and issued on December 5, 2025.

4. 4.

5. 5a: RESOLUTION: Resolution 2025-69, Declaring Results of Special Landowner Election and Directing the Recording of an Amendment to Notice of Special Tax Lien.

RESOLUTION: Resolution 2025-70, Authorizing Annexation No. 2 into Community Facilities District No. 2019-1 (Maintenance Services), Authorizing the Levy of a Special Tax, and Submitting the Levy of Special Tax to Qualified Electors.

ORDINANCE: First Reading and Introduction of Ordinance 2025-06 Authorizing the Levy of Special Taxes in Certain Annexation Territory Identified as Annexation No. 2 to Community Facilities District No. 2019-1 (Maintenance Services) (Envia)

6. 6a: RESOLUTION: Resolution 2025-71, Adopting a Groundwater use Management Program in the Modesto Groundwater Subbasin. (Pitcock)
6b: RESOLUTION: Resolution 2025-72, Adopting a Well Mitigation Plan in the Modesto Groundwater Subbasin (Pitcock)
6c: RESOLUTION: Approving Resolution 2025-73, Accepting Improvements for Project No. 2025-07,” G Street Improvement Project” and Authorizing the City Engineer to File a Notice of Completion with the Stanislaus County Recorder’s Office. (Statzer)

7. 8.
8a: City Project List
8b: My Waterford Request Report

INFORMATIONAL ITEMS

SUCCESSOR AGENCY TO THE FORMER WATERFORD REDEVELOPMENT AGENCY

GENERAL BUSINESS

PUBLIC HEARING - FINAL READINGS
PUBLIC HEARINGS AND ELECTION:

9. 9a: City Staff
9b: City Council

10. 11.
11a: “CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION” (Pursuant to Government Code Section 54956.9)
Burciago V. City of Waterford

12. NOTICE
REPORTS: Copies of the staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the office of the City Clerk. Any writings or documents provided to a majority of the City Council regarding any item on this agenda (other than writings legally exempt from public disclosure) will be made available for public inspection at the front counter at City Hall during normal business hours.

COMMUNICATIONS FROM THE AUDIENCE: If you wish to address the City Council or the Successor Agency on any item not on the printed agenda, prior to the start of the meeting, or prior to addressing the City Council or the Successor Agency, complete and submit a speaker card and deliver it to the City Clerk. (Please note, speaker cards are not required, however completing a speaker card enables staff to better follow up with you later, if necessary and attribute your comments to you in the minutes of the meeting). When the Mayor calls for “Communications from the Audience,” stand or raise your hand and the Mayor will ask you to approach the podium and state your name and city of residence. It is the policy of the City Council that they will not act on any matter not appearing on the posted agenda. The purpose of the discussion is to permit a member of the public to raise an issue or problem and to permit the City Council to ask questions for clarification of the issue or problem, provide information to the public, provide direction of the City Staff, or schedule the matter for a future meeting. Please hold all comments to five (5) minutes.

PUBLIC COMMENTS RELATED TO AN ITEM ON THE PRINTED AGENDA: Members of the public are entitled to directly address the City Council or the Successor Agency concerning any item that is described on the agenda during consideration of that item. If during a public hearing, the Mayor will direct when the hearing has opened for public comment. If you wish to address the City Council or the Successor Agency on any item listed on this agenda, please complete a speaker card and deliver it to the City Clerk prior to discussion of that item. (Please note, speaker cards are not required, however completing a speaker card enables staff to better follow up with you later, if necessary and attribute your comments to you in the minutes of the meeting.) When your name is called proceed to the podium and state your name and city of residence.

WRITTEN MATERIAL INTRODUCED INTO THE RECORD: Citizens wishing to introduce written material into the record at the public hearing on any item are requested to provide a copy of the written material to the City Clerk prior to the public hearing date and/or prior to the opening of the public hearing so that the material may be distributed to the City Council prior to the public hearing.

NOTICE REGARDING CHALLENGES TO DECISIONS: Pursuant to all applicable laws and regulations, including without limitation, California Government Code Section 65009 and or California Public Resources Code Section 21177, if you wish to challenge in court any decisions (regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing.

LIVE AND ON-DEMAND VIDEO RECORDINGS OF THE CITY COUNCIL/SUCCESSOR AGENCY: The meeting of the Waterford City Council/Successor Agency can be watched live and on-demand from the City’s website at www.cityofwaterford.org.

AMERICANS WITH DISABILITIES ACT (ADA): In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disabilityrelated modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (209) 874-2328 ext. 101 or email:
[email protected]. Requests must be made as early as possible and at least two-full business days before the start of the meeting General Information: The Waterford City Council meets on the 1st and 3rd Thursdays of each month at 6:30PM., unless otherwise noticed.

CLOSED SESSION

ADJOURNMENT / RECESS

STAFF/COUNCIL COMMENTS AND MEETING REPORTS

REPORT OUT OF CLOSED SESSION
Council Agenda’s: Copies of City Council Agenda and agenda related writings or documents will be made available for public inspection at the front counter at City Hall located at 101 “E” Street, Waterford, CA 72 hours prior to the meeting, or at the time of the scheduled meeting. 12/10/2025
Patricia Krause, CMC, City Clerk Date
Consent Calendar 3a
December 4, 2025
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Motion: Waive Readings of Ordinances and Resolutions, Except by Title.

SUMMARY:

It is recommended that the City Council approve the waiver of readings of Ordinances and Resolutions, except by title.

ANALYSIS:

Pursuant to California Government Code §36934, approval of the waiver of readings will allow Ordinances and Resolutions to be introduced by title only and acted upon without the need to read the entire text of the item into the public record. The documents related to proposed Ordinances and Resolutions are available for review by the public on the City’s website and in the City Clerk’s office at City Hall.

FISCAL IMPACT:

N/A
ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. Direct the City Clerk to read the entire text of resolutions and ordinances prior to approval and adoption.

2. Take no action.

ATTACHMENTS:

N/A
Consent Calendar 3b
December 18, 2025
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Resolution: Adopting Resolution 2025-68, Approving the Warrant Register in the Amount of $792,911.24 for the Period of December 8, 2025.

SUMMARY:

Consider approving the Warrant Register for the period of December 8, 2025.

ANALYSIS:

As per Government Code Section §41004, a listing of all payments the City has made for goods and services need to be approved by City Council on a regular basis. This Warrant Register includes payments and payroll made for the period of December 8, 2025.

FISCAL IMPACT:

Payments for this period total $792,911.24.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. Take no action.

2. Provide staff with further direction.

ATTACHMENTS:
• Resolution #2025-68
• Check Register Report

WATERFORD CITY COUNCIL

DATE TOTAL
PAYROLL 12/8/2025 $ 53,265.65
ACCOUNTS PAYABLE 12/8/2025 $ 26,698.78
12/8/2025 $ 712,946.81
TOTAL $ 792,911.24
Passed and Adopted by the City Council of Waterford at a regular meeting held on By the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

PATRICIA KRAUSE, CMC, CITY CLERK CHARLIE GOEKEN, MAYOR
RESOLUTION 2025-68
RESOLUTION # 2025-68
December 18, 2025
The City of Waterford does hereby reserve, determine and order as follows:

SECTION 1: That in accordance with Section 37202 of the Government Code that the City Manager hereby certifies to the accuracy of the following demands and the availability of funds for the payment thereof.

SECTION 2: That the following claims and demands are subject to audit as required by law, and that the same are hereby set forth.

User:

Printed: 12/08/2025 - 10:25AM
'trish'
Payroll
Include Partial: FALSE
ACH Check Register
Batch: 00008.12.2025
Check Date Check Number Employee No Employee Name Amount 12/08/2025 0 1002 4,511.28
12/08/2025 0 1006 3,970.61
12/08/2025 0 1008 2,270.62
12/08/2025 0 1017 2,077.41
12/08/2025 0 1018 1,580.09
12/08/2025 0 1020 894.35
12/08/2025 0 2005 3,619.33
12/08/2025 0 2006 3,407.15
12/08/2025 0 2010 1,005.98
12/08/2025 0 2012 2,314.54
12/08/2025 0 2020 4,656.15
12/08/2025 0 2028 2,089.17
12/08/2025 0 2030 2,164.68
12/08/2025 0 2031 3,775.86
12/08/2025 0 2033 3,355.94
12/08/2025 0 2034 2,452.00
12/08/2025 0 2035 3,401.72
12/08/2025 0 2037 3,066.20
12/08/2025 0 2040 964.18
12/08/2025 0 2041 1,050.91
12/08/2025 0 3002 134.79
12/08/2025 0 3010 124.06
12/08/2025 0 3013 126.21
12/08/2025 0 3014 126.21
12/08/2025 0 3015 126.21
Total Employees: 25 Total: 53,265.65
PR- ACH Check Register (12/08/2025 - 10:25 AM) Page 1
User:

Printed: 12/08/2025 - 12:08PM
trish
Computer Check Proof List by Vendor
Accounts Payable
Batch: 00008.12.2025
Invoice No Description Amount Pmt Date Acct Number Reference Vendor: 105201 BANK OF THE WEST (IRS TAXES) Check Sequence: 1 ACH Enabled: True 12082025 247.53 12/08/2025 1010-000-2240 FED TAXES
12082025 1,147.02 12/08/2025 1010-000-2240 FED TAXES
12082025 7,580.60 12/08/2025 1010-000-2220 FED TAXES
12082025 247.53 12/08/2025 1010-000-2240 FED TAXES
12082025 1,073.77 12/08/2025 1010-000-2240 FED TAXES
Check Total: 10,296.45
Vendor: 108350 CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT Check Sequence: 2 ACH Enabled: True 12082025 888.62 12/08/2025 1010-000-2260 EDD TAXES
12082025 0.70 12/08/2025 1010-000-2260 EDD TAXES
12082025 10.92 12/08/2025 1010-000-2260 EDD TAXES
12082025 2,946.65 12/08/2025 1010-000-2230 EDD TAXES
Check Total: 3,846.89
Vendor: 154101 MISSION SQUARE - 303352 Check Sequence: 3 ACH Enabled: False 12082025 385.27 12/08/2025 1010-000-2280 MISSION SQUARE 12082025 238.18 12/08/2025 1010-000-2285 MISSION SQUARE 12082025 926.34 12/08/2025 1010-000-2280 MISSION SQUARE Check Total: 1,549.79
Vendor: 139400 PUBLIC EMPLOYEE RETIREMENT SYSTEM Check Sequence: 4 ACH Enabled: True 12082025 6,165.63 12/08/2025 1010-000-2270 PERS 12082025 12082025 4,565.75 12/08/2025 1010-000-2270 PERS 12082025 Check Total: 10,731.38
AP-Computer Check Proof List by Vendor (12/08/2025 - 12:08 PM) Page 1 Invoice No Description Amount Pmt Date Acct Number Reference Vendor: 148050 STATIONARY ENGINEERS LOCAL 39 Check Sequence: 5 ACH Enabled: False 12082025 274.27 12/08/2025 1010-000-2290 UNION DUES 12082025 Check Total: 274.27
Total for Check Run:

Total of Number of Checks:
26,698.78
5 AP-Computer Check Proof List by Vendor (12/08/2025 - 12:08 PM) Page 2 User:

Printed: 12/08/2025 - 3:42PM
tina
Computer Check Proof List by Vendor
Accounts Payable
Batch: 00009.12.2025
Invoice No Description Amount Pmt Date Acct Number Reference Vendor: 102200 ABS DIRECT, INC Check Sequence: 1 ACH Enabled: False 141428 NOVEMBER 2025 STATEMENTS 350.02 12/08/2025 5071-800-7190 141428 NOVEMBER 2025 STATEMENTS 350.02 12/08/2025 5050-700-7190 141428 NOVEMBER 2025 STATEMENTS 87.51 12/08/2025 5070-800-7190 141428 NOVEMBER 2025 STATEMENTS 87.50 12/08/2025 5072-800-7190 MP-20251121 PREPAID POSTAGE 800.00 12/08/2025 5071-800-7540 MP-20251121 PREPAID POSTAGE 800.00 12/08/2025 5050-700-7540 MP-20251121 PREPAID POSTAGE 200.00 12/08/2025 5072-800-7540 MP-20251121 PREPAID POSTAGE 200.00 12/08/2025 5070-800-7540 Check Total: 2,875.05
Vendor: 102288 AMERICAN PAVEMENT SYSTEMS INC Check Sequence: 2 ACH Enabled: False 002 COUNTRY GARDENS CAPE SEAL - PROGRESS #2 457,668.62 12/08/2025 6310-310-8290 Check Total: 457,668.62
Vendor: 104500 AT&T (9011) Check Sequence: 3 ACH Enabled: False 0024369234 SERVICE PERIOD: 10/13 THROUGH 11/12/2025 0.97 12/08/2025 5072-800-7810 0024369234 SERVICE PERIOD: 10/13 THROUGH 11/12/2025 1.92 12/08/2025 5070-800-7810 0024369234 SERVICE PERIOD: 10/13 THROUGH 11/12/2025 6.76 12/08/2025 5071-800-7810 0024369234 SERVICE PERIOD: 10/13 THROUGH 11/12/2025 118.05 12/08/2025 1010-110-7810 0024369235 SERVICE PERIOD: 10/13 THROUGH 11/12/2025 257.35 12/08/2025 5050-700-7810 0024369236 SERVICE PERIOD: 10/13 THROUGH 11/12/2025 32.35 12/08/2025 5070-800-7810 Check Total: 417.40
Vendor: 110900 AT&T MOBILITY Check Sequence: 4 ACH Enabled: False X11242025 IPAD CONNECTIVITY - 10/17 THROUGH 11/16/2025 44.74 12/08/2025 1010-110-7811 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 1 Invoice No Description Amount Pmt Date Acct Number Reference Check Total: 44.74
Vendor: 105896 AYERA TECHNOLOGIES, INC. Check Sequence: 5 ACH Enabled: False 731552 INTERNET - CITY HALL: DECEMBER 2025 174.00 12/08/2025 1010-110-7811 731630 INTERNET - WWTP: DECEMBER 2025 84.00 12/08/2025 5050-700-7811 Check Total: 258.00
Vendor: 104896 BADGER METER Check Sequence: 6 ACH Enabled: False 80193191 WATER DEPARTMENT - HOST SERVICE FOR APRIL 2025 213.45 12/08/2025 5071-800-7620 80193191 WATER DEPARTMENT - HOST SERVICE FOR APRIL 2025 30.49 12/08/2025 5072-800-7620 80193191 WATER DEPARTMENT - HOST SERVICE FOR APRIL 2025 60.98 12/08/2025 5070-800-7620 80214713 WATER DEPARTMENT - ANNUAL LICENSE & HOST SERVICE FOR OCTOBER 717.45 12/08/2025 5071-800-7620 80214713 WATER DEPARTMENT - ANNUAL LICENSE & HOST SERVICE FOR OCTOBER 102.49 12/08/2025 5072-800-7620 80214713 WATER DEPARTMENT - ANNUAL LICENSE & HOST SERVICE FOR OCTOBER 204.98 12/08/2025 5070-800-7620 80217930 WATER DEPARTMENT-HOST SERVICE FOR NOVEMBER 214.06 12/08/2025 5071-800-7620 80217930 WATER DEPARTMENT-HOST SERVICE FOR NOVEMBER 61.16 12/08/2025 5070-800-7620 80217930 WATER DEPARTMENT-HOST SERVICE FOR NOVEMBER 30.58 12/08/2025 5072-800-7620 Check Total: 1,635.64
Vendor: 105610 BAY CITY ELECTRIC WORKS Check Sequence: 7 ACH Enabled: False W321780 WELL #302: GENERATOR MAINTENANCE 1,716.12 12/08/2025 5071-800-7420 W321784 WELL #272: GENERATOR MAINTENANCE 1,673.41 12/08/2025 5072-800-7420 W321785 WELL #1-RIVERPOINTE: GENERATOR MAINTENANCE 2,507.85 12/08/2025 5070-800-7420 Check Total: 5,897.38
Vendor: 106515 BOSS BUSINESS SYSTEMS INC Check Sequence: 8 ACH Enabled: False 467766 COPIER USAGE COUNT - OCTOBER 2025 268.76 12/08/2025 1010-110-7510 468020 COPIER USAGE COUNT - NOVEMBER 2025 268.76 12/08/2025 1010-110-7510 Check Total: 537.52
Vendor: 106525 BOYETT PETROLEUM Check Sequence: 9 ACH Enabled: False 371752 FUEL EXPENSE: NOVEMBER 2025 750.54 12/08/2025 1010-580-7520 371752 FUEL EXPENSE: NOVEMBER 2025 643.23 12/08/2025 1010-310-7520 371752 FUEL EXPENSE: NOVEMBER 2025 168.88 12/08/2025 5070-800-7520 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 2 Invoice No Description Amount Pmt Date Acct Number Reference 371752 FUEL EXPENSE: NOVEMBER 2025 22.60 12/08/2025 1010-410-7520 371752 FUEL EXPENSE: NOVEMBER 2025 596.72 12/08/2025 5050-700-7520 371752 FUEL EXPENSE: NOVEMBER 2025 591.08 12/08/2025 5071-800-7520 371752 FUEL EXPENSE: NOVEMBER 2025 84.46 12/08/2025 5072-800-7520 Check Total: 2,857.51
Vendor: 108025 CALIFORNIA CONSULTING, INC. Check Sequence: 10 ACH Enabled: False 7582 GRANT WRITING RETAINER - DECEMBER 2025 3,500.00 12/08/2025 1010-110-7190 Check Total: 3,500.00
Vendor: 110599 CHARGEPOINT, INC. Check Sequence: 11 ACH Enabled: False IN368762 LEASE AGREEENT FOR CHARGING STATION 1,850.00 12/08/2025 1010-110-7300 Check Total: 1,850.00
Vendor: 144410 CHARTER COMMUNICATIONS (7173) Check Sequence: 12 ACH Enabled: False 0061316111925 INTERNET - MUSEUM 126.23 12/08/2025 1010-550-7811 Check Total: 126.23
Vendor: 112400 CITY OF WATERFORD - PETTY CASH Check Sequence: 13 ACH Enabled: False 12052025 PETTY CASH REIMBURSEMENT: 04/01 THROUGH 12/05/2025 55.00 12/08/2025 1010-110-7740 12052025 PETTY CASH REIMBURSEMENT: 04/01 THROUGH 12/05/2025 108.00 12/08/2025 1010-110-7430 12052025 PETTY CASH REIMBURSEMENT: 04/01 THROUGH 12/05/2025 100.50 12/08/2025 1010-110-7730 Check Total: 263.50
Vendor: UB*01995 DORIS COLBY Check Sequence: 14 ACH Enabled: False Refund Check 005483-000, 201 COASTAL LANE 10.48 12/08/2025 5070-000-2010 Refund Check 005483-000, 201 COASTAL LANE 20.00 12/08/2025 5050-000-2010 Check Total: 30.48
Vendor: 114310 DE LAGE LANDEN Check Sequence: 15 ACH Enabled: False 593215561 COPIER LEASE; 115/15 THROUGH 2/14/2025 269.22 12/08/2025 1010-110-7600 Check Total: 269.22
Vendor: 114299 DEEP SENTINEL Check Sequence: 16 ACH Enabled: False AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 3 Invoice No Description Amount Pmt Date Acct Number Reference 202112202512421 COMMUNITY CENTER MONITORING - DECEMBER 2025 350.00 12/08/2025 1010-560-7730 D20555 COMMUNITY CENTER - NEW 4K TURRET CAMERA & SPEAKERS 2,045.56 12/08/2025 1010-560-8020 Check Total: 2,395.56
Vendor: 114300 DEHART PLUMBING HEATING & AIR Check Sequence: 17 ACH Enabled: False 11242025 PERMIT# 1826 - CANCELLED CUST#9083 - ALMARAZ 1.00 12/08/2025 1010-410-5430 11242025 PERMIT# 1826 - CANCELLED CUST#9083 - ALMARAZ 76.00 12/08/2025 1010-410-5320 Check Total: 77.00
Vendor: 116562 EKC ENTERPRISES INC. Check Sequence: 18 ACH Enabled: False 63889 TV REPAIRS: CITY HALL LOBBY & COUNCIL CHAMBERS 660.00 12/08/2025 1010-110-7410 Check Total: 660.00
Vendor: 116925 TINA ENVIA Check Sequence: 19 ACH Enabled: False 11202025 MILEAGE - CSMFO CHAPTER MEETING 46.20 12/08/2025 1010-110-7750 Check Total: 46.20
Vendor: 121433 GO TO COMMUNICATIONS INC Check Sequence: 20 ACH Enabled: False IN7104467233 VOIP SERVICES - DECEMBER 2025 28.15 12/08/2025 1010-210-7810 IN7104467233 VOIP SERVICES - DECEMBER 2025 256.79 12/08/2025 1010-110-7810 IN7104467233 VOIP SERVICES - DECEMBER 2025 26.28 12/08/2025 5050-700-7810 IN7104467233 VOIP SERVICES - DECEMBER 2025 7.88 12/08/2025 5070-800-7810 IN7104467233 VOIP SERVICES - DECEMBER 2025 15.77 12/08/2025 5071-800-7810 IN7104467233 VOIP SERVICES - DECEMBER 2025 2.62 12/08/2025 5072-800-7810 Check Total: 337.49
Vendor: 121432 GO-GOV Check Sequence: 21 ACH Enabled: False 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 1,411.20 12/08/2025 1010-310-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 1,310.40 12/08/2025 1010-580-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 1,411.20 12/08/2025 1010-560-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 504.00 12/08/2025 2230-260-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 806.40 12/08/2025 5050-700-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 504.00 12/08/2025 2210-260-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 1,411.20 12/08/2025 1010-110-7620 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 4 Invoice No Description Amount Pmt Date Acct Number Reference 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 504.00 12/08/2025 2010-210-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 806.40 12/08/2025 5071-800-7620 25-757 GO GOV SUBSCRIPTION YEARLY - START SERVICE DATE 02/01/2026 1,411.20 12/08/2025 1010-410-7620 Check Total: 10,080.00
Vendor: 124500 HOWK SYSTEMS Check Sequence: 22 ACH Enabled: False 0184214-IN BORAX POND FLOAT LEVEL CONTROLLER 182.56 12/08/2025 1010-310-7420 Check Total: 182.56
Vendor: 200759 JARED STEELEY WATER & WASTEWATER MANAGEMENT Check Sequence: 23 ACH Enabled: False 55453*ERROR WATER CONSULTANT - OCTOBER 2025 ERROR IN LAST MONTH CHECK 6.00 12/08/2025 5071-800-7190 55485 WATER CONSULTANT - NOVEMBER 2025 1,027.00 12/08/2025 5070-800-7190 55485 WATER CONSULTANT - NOVEMBER 2025 1,297.00 12/08/2025 5072-800-7190 55485 WATER CONSULTANT - NOVEMBER 2025 7,561.25 12/08/2025 5071-800-7190 Check Total: 9,891.25
Vendor: 128906 LECHOWICZ & TSENG Check Sequence: 24 ACH Enabled: False 004 WATER RATE STUDY PROGRESS #4 7,122.04 12/08/2025 5075-800-7190 Check Total: 7,122.04
Vendor: 138700 LINDE GAS & EQUIPMENT INC. Check Sequence: 25 ACH Enabled: False 53363511 CYLINDER RENTAL: 10/20 THROUGH 11/20/2025 55.74 12/08/2025 1010-310-7510 Check Total: 55.74
Vendor: 131000 MCR ENGINEERING, INC. Check Sequence: 26 ACH Enabled: False 21791 GENERAL ENGINEERING SERVICES - OCTOBER 2025 4,040.00 12/08/2025 1010-430-7196 21791* FAHMY SUBDIVISION 720.00 12/08/2025 1010-430-7196 21791** HICKMAN WATER CONSOLIDATION 2,700.00 12/08/2025 5075-800-8022 21791*** YOSEMITE ATP PROJECT 14,270.75 12/08/2025 6310-310-8292 21791**** YOSEMITE/HWY 132 & PASADENA SIGNALIZATION 8,057.50 12/08/2025 6310-310-8293 21791***** 2023 SURFACE IMPROVEMENTS - COUNTRY GARDENS 11,110.00 12/08/2025 6310-310-8290 21791****** TIM BELL ATP 4,400.00 12/08/2025 6310-310-8299 21791******* TIM BELL ATP - DESIGN 4,140.00 12/08/2025 6310-310-8299 21791******** BONNIE BRAE IMPROVEMENTS 8,260.00 12/08/2025 6310-310-8296 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 5 Invoice No Description Amount Pmt Date Acct Number Reference 21791********* E STREET DOWNTOWN IMPROVEMENTS 1,842.50 12/08/2025 6310-310-8294 21791********** G STREET IMPROVEMENTS 7,734.25 12/08/2025 2080-460-8290 21791********** BEARD PARK TENNIS COURT REMODEL 720.00 12/08/2025 1010-580-8010 21791********** 2025 CALL PROJECTS 6,320.00 12/08/2025 6310-310-7196 Check Total: 74,315.00
Vendor: 131936 MICROBAC LABORATORIES INC C/O DOLLAR BANK Check Sequence: 27 ACH Enabled: False 725000655 WWTP - TEST SAMPLES 11/04/25 210.00 12/08/2025 5050-700-7190 Check Total: 210.00
Vendor: 131900 MID-VALLEY PUBLICATIONS Check Sequence: 28 ACH Enabled: False 357336 PUBLIC NOTICE 103.60 12/08/2025 1010-110-7720
Check Total: 103.60
Vendor: 132700 MODESTO IRRIGATION DISTRICT Check Sequence: 29 ACH Enabled: False 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 10,157.39 12/08/2025 5071-800-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 92.18 12/08/2025 1010-550-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 385.18 12/08/2025 1010-560-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 532.65 12/08/2025 1010-580-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 53.00 12/08/2025 1010-110-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 69.53 12/08/2025 2240-270-7821 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 63.90 12/08/2025 2240-270-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 704.82 12/08/2025 1010-310-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 502.34 12/08/2025 2230-260-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 1,299.53 12/08/2025 2210-260-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 2,129.56 12/08/2025 5070-800-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 683.86 12/08/2025 1010-210-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 802.32 12/08/2025 5050-700-7820 12022025 SERVICE PERIOD: 11/04 THROUGH 12/02/2025 7,211.08 12/08/2025 5050-700-7820 Check Total: 24,687.34
Vendor: 132701 MODESTO IRRIGATION DISTRICT (4060) Check Sequence: 30 ACH Enabled: False 12082025 WATER TAX: 080-007-073 & 080-030-080 552.51 12/08/2025 1010-580-7730 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 6 Invoice No Description Amount Pmt Date Acct Number Reference Check Total: 552.51
Vendor: 132742 MOUNTAIN VALLEY ENVIRONMENTAL SERVICES, INC. Check Sequence: 31 ACH Enabled: False 6646 CROSS CONNECT: JANUARY 2026 20.00 12/08/2025 5072-800-7190 6646 CROSS CONNECT: JANUARY 2026 140.00 12/08/2025 5071-800-7190 6646 CROSS CONNECT: JANUARY 2026 40.00 12/08/2025 5070-800-7190 Check Total: 200.00
Vendor: 200738 NAVIA BENEFIT SOLUTIONS Check Sequence: 32 ACH Enabled: False 11040372 COBRA ADMIN - NOVEMBER 2025 200.00 12/08/2025 1010-110-7730 Check Total: 200.00
Vendor: 135325 O'REILLY AUTO PARTS Check Sequence: 33 ACH Enabled: False 3915-362035 WATER DEPARTMENT - ANTIFREEZE FOR EQUIPMENT 47.76 12/08/2025 5071-800-7420 Check Total: 47.76
Vendor: 136600 PG&E Check Sequence: 34 ACH Enabled: False 1072630078-11 SERVICE PERIOD: 10/16 THROUGH 11/15/2025 11.89 12/08/2025 1010-580-7820 1072630078-11 SERVICE PERIOD: 10/16 THROUGH 11/15/2025 11.89 12/08/2025 1010-310-7820 1549682036-11 SERVICE PERIOD: 10/16 THROUGH 11/15/2025 314.49 12/08/2025 1010-560-7820 3023936607-11 SERVICE PERIOD: 10/16 THROUGH 11/15/2025 15.64 12/08/2025 1010-210-7820 3351656782-11 SERVICE PERIOD: 10/16 THROUGH 11/15/2025 24.46 12/08/2025 1010-550-7820 5334599333-11 SERVICE PERIOD: 10/16 THROUGH 11/15/2025 12.22 12/08/2025 1010-110-7820 Check Total: 390.59
Vendor: 130200 ROBBINS BROWNING GODWIN & MARCHINI LLP Check Sequence: 35 ACH Enabled: False 74596 CITY ATTORNEY - NOVEMBER 2025 CONTRACT 3,070.00 12/08/2025 1010-110-7194 74597 CITY ATTORNEY - UNION NEGOTIATIONS 202.50 12/08/2025 1010-110-7194 74598 CITY ATTORNEY - DAVID BURCIAGO 180.00 12/08/2025 1010-110-7194 74599 CITY ATTORNEY - VOTING RIGHTS 1,957.50 12/08/2025 1010-110-7194 Check Total: 5,410.00
Vendor: 141900 SAFE T LITE OF MODESTO INC Check Sequence: 36 ACH Enabled: False 407433 WATERPROOF ORANGE PARKAS 59.57 12/08/2025 5071-800-7510 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 7 Invoice No Description Amount Pmt Date Acct Number Reference 407433 WATERPROOF ORANGE PARKAS 8.51 12/08/2025 5072-800-7510 407433 WATERPROOF ORANGE PARKAS 17.02 12/08/2025 5070-800-7510 Check Total: 85.10
Vendor: 144700 SPRINGBROOK HOLDING COMPANY LLC Check Sequence: 37 ACH Enabled: False INV-022426 CIVIC PAY: NOVEMBER 2025 63.60 12/08/2025 5072-800-7610 INV-022426 CIVIC PAY: NOVEMBER 2025 445.20 12/08/2025 5071-800-7610 INV-022426 CIVIC PAY: NOVEMBER 2025 127.20 12/08/2025 5070-800-7610 INV-022426 CIVIC PAY: NOVEMBER 2025 636.00 12/08/2025 5050-700-7610 Check Total: 1,272.00
Vendor: 147935 STATE OF CALIFORNIA ENERGY RESOURCES CONSERVATION Check Sequence: 38 ACH Enabled: False 12355 CEC LOAN - PRINCIPAL & INTEREST 1,636.05 12/08/2025 4350-700-9110 12355 CEC LOAN - PRINCIPAL & INTEREST 40,072.60 12/08/2025 4350-700-9010 12355 CEC LOAN - PRINCIPAL & INTEREST 197.11 12/08/2025 1010-560-9110 12355 CEC LOAN - PRINCIPAL & INTEREST 137.98 12/08/2025 1010-110-9110 12355 CEC LOAN - PRINCIPAL & INTEREST 3,379.62 12/08/2025 1010-110-9010 12355 CEC LOAN - PRINCIPAL & INTEREST 4,828.02 12/08/2025 1010-560-9010 Check Total: 50,251.38
Vendor: 48700 SWRCB Check Sequence: 39 ACH Enabled: False WD-0305961 WWTP - ANNUAL PERMIT 07/01/25 THROUGH 06/30/2026 28,205.00 12/08/2025 5050-700-7920 WD-0306199 WW - ANNUAL PERMIT 07/01/25 THROUGH 06/30/2026 3,945.00 12/08/2025 5050-700-7920 WD-0306813 WATER - ANNUAL PERMIT 07/01/25 THROUGH 06/30/2026 881.00 12/08/2025 5071-800-7920 Check Total: 33,031.00
Vendor: 148025 SWRCB - DWOCP Check Sequence: 40 ACH Enabled: False 120825 T2 CERTIFICATION - LIAM SIEGERT 6.00 12/08/2025 5072-800-7740 120825 T2 CERTIFICATION - LIAM SIEGERT 42.00 12/08/2025 5071-800-7740 120825 T2 CERTIFICATION - LIAM SIEGERT 12.00 12/08/2025 5070-800-7740 Check Total: 60.00
Vendor: 150189 THE SHERWIN-WILLIAMS CO Check Sequence: 41 ACH Enabled: False 0214-8 PAINT FOR TENNIS COURTS 306.04 12/08/2025 1010-580-8020 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 8 Invoice No Description Amount Pmt Date Acct Number Reference Check Total: 306.04
Vendor: 150563 TRANS-ROCK Check Sequence: 42 ACH Enabled: False 3507 SAND - ROCK & COLD MIX FOR CITY WIDE USAGE 1,483.85 12/08/2025 1010-310-7530 3507 SAND - ROCK & COLD MIX FOR CITY WIDE USAGE 1,038.68 12/08/2025 5071-800-7530 3507 SAND - ROCK & COLD MIX FOR CITY WIDE USAGE 148.39 12/08/2025 5072-800-7530 3507 SAND - ROCK & COLD MIX FOR CITY WIDE USAGE 296.78 12/08/2025 5070-800-7530 3507 SAND - ROCK & COLD MIX FOR CITY WIDE USAGE 1,550.00 12/08/2025 5050-700-7530 Check Total: 4,517.70
Vendor: 150567 TURLOCK IRRIGATION DISTRICT Check Sequence: 43 ACH Enabled: False 11222025 HICKMAN POWER - 10/21 THROUGH 11/21/2025 816.80 12/08/2025 5072-800-7820 Check Total: 816.80
Vendor: 138600 U.S. POSTAL SERVICE - WATERFORD Check Sequence: 44 ACH Enabled: False 12082025 BOX RENTAL FEE - ONE(1) YEAR 198.00 12/08/2025 1010-110-7540 Check Total: 198.00
Vendor: 1001046 GILBERTO CRUZ VENEGAS Check Sequence: 45 ACH Enabled: False 11152025 COMMUNITY CENTER - DEPOSIT REFUND LESS CLEANING FEES 11/15/25 -99.54 12/08/2025 1010-560-6560 11152025 COMMUNITY CENTER - DEPOSIT REFUND LESS CLEANING FEES 11/15/25 500.00 12/08/2025 1010-000-2510 Check Total: 400.46
Vendor: 155600 WATERFORD FARM SUPPLY, INC. Check Sequence: 46 ACH Enabled: False 11302025 SEE AP FILE FOR INVOICE BACK UP 39.65 12/08/2025 5050-700-7510 11302025 SEE AP FILE FOR INVOICE BACK UP 14.66 12/08/2025 1010-580-7510 11302025 SEE AP FILE FOR INVOICE BACK UP 52.15 12/08/2025 5070-800-7510 11302025 SEE AP FILE FOR INVOICE BACK UP -41.26 12/08/2025 1010-580-7420 11302025 SEE AP FILE FOR INVOICE BACK UP 3.30 12/08/2025 5050-700-7410 11302025 SEE AP FILE FOR INVOICE BACK UP 366.67 12/08/2025 1010-110-7731 11302025 SEE AP FILE FOR INVOICE BACK UP 78.02 12/08/2025 1010-560-7510 11302025 SEE AP FILE FOR INVOICE BACK UP 82.75 12/08/2025 1010-580-7410 11302025 SEE AP FILE FOR INVOICE BACK UP 126.05 12/08/2025 5050-700-7550 11302025 SEE AP FILE FOR INVOICE BACK UP 57.12 12/08/2025 1010-210-7510 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 9 Invoice No Description Amount Pmt Date Acct Number Reference 11302025 SEE AP FILE FOR INVOICE BACK UP 135.85 12/08/2025 1010-560-7410 11302025 SEE AP FILE FOR INVOICE BACK UP 174.32 12/08/2025 5071-800-7510 11302025 SEE AP FILE FOR INVOICE BACK UP 368.75 12/08/2025 1010-310-7530 11302025 SEE AP FILE FOR INVOICE BACK UP 57.98 12/08/2025 1010-310-7550 11302025 SEE AP FILE FOR INVOICE BACK UP 71.16 12/08/2025 1010-310-7510 11302025 SEE AP FILE FOR INVOICE BACK UP 25.17 12/08/2025 5072-800-7510 11302025 SEE AP FILE FOR INVOICE BACK UP 192.70 12/08/2025 1010-310-7410 Check Total: 1,805.04
Vendor: 157400 WILLE ELECTRIC SUPPLY CO. INC Check Sequence: 47 ACH Enabled: False S2274979.001 BAKER LIFT STATION REPAIR 167.43 12/08/2025 5050-700-7420 Check Total: 167.43
Vendor: 157700 WILSON FAMILY PLUMBING, INC. Check Sequence: 48 ACH Enabled: False 13518 WWTP M-N REPAIR SEWER PIPE @ POND 4,839.93 12/08/2025 5050-700-7420 Check Total: 4,839.93
Total for Check Run:

Total of Number of Checks:
712,946.81
48 AP-Computer Check Proof List by Vendor (12/08/2025 - 3:42 PM) Page 10 Consent Calendar 3c
December 18, 2025
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Motion: Approving Minutes of the Regular City Council Meeting held December 4, 2025.

SUMMARY:

Consider approving minutes from the December 4, 2025 Regular City Council meeting.

ANALYSIS:

Approve Minutes of the Regular City Council Meeting held on December 4, 2025.

FISCAL IMPACT:

N/A
ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. Direct the City Clerk to make amendments to the minutes and bring them back for approval at a future City Council meeting.

2. Take no action.

ATTACHMENTS:
• City Council Regular Meeting Minutes of December 4, 2025.

MINUTES

WATERFORD CITY COUNCIL - REGULAR

MEETING WATERFORD CITY HALL, CITY
COUNCIL CHAMBERS 101 “E” STREET,

WATERFORD, CA
MEETING CALLED TO ORDER BY MAYOR GOEKEN AT: 6:30 pm
FLAG SALUTE: Mayor Goeken
INVOCATION: Pastor Dave McGaffee, Assembly of God Church ROLL CALL PRESENT:

Mayor Goeken
Vice Mayor Hilton
Councilmember Harris
Councilmember Gutierrez
Councilmember Talbott
ABSENT: None
STAFF PRESENT:

Michael Pitcock, City Manager
Patricia Krause, City Clerk / Administrative Services Director Lonnie Statzer, Public Works Director
Corbett Browning, City Attorney
Chief David Mullins
ADOPTION OF AGENDA:

ACTION: Moving and seconded by motion (VM Hilton / CM Harris / 5-0) to adopt the Agenda.

AYES: Goeken, Gutierrez, Harris, Hilton, Talbott
NAYS: None
ABSENT: None
ABSTAIN: None
Motion passed 5-0.

WATERFORD CITY COUNCIL REGULAR MEETING – November 20, 2025 - 6:30 PM CONFLICT OF INTEREST DECLARATION:

None.

1. 2.

None.

3. 3a: MOTION: Waiving all Readings of Ordinances and Resolutions, except by title. 3b: RESOLUTION: Adopting Resolution 2025-66, Approving the Warrant Register in the Amount of $709,830.80 for the Period of November 18 to November 24, 2025. 3c: MOTION: Approving Minutes of the Regular City Council Meeting held November 20, 2025.

ACTION: Moving and seconded by motion (VM Hilton/ CM Harris/ 5-0) to adopt the Consent Calendar.

AYES: Goeken, Gutierrez, Harris, Hilton, Talbott
NAYS: None
ABSENT: None
ABSTAIN: None
Motion passed 5-0.

4. 4a: ORDINANCE: 2nd Reading and Adoption of Ordinance 2025-05, Adopting the Prezoning of APN’s 080-003-012, 015, 034, and 040 to RS, Single Family Residential, and APN’s 080-003-049 and 080-003-050 to PC, Planned Community 2022-0001. (Niskanen) Public Hearing Opened: 6:33 pm
Public Hearing Closed: 6:33 pm
ACTION: Moving and seconded by motion (CM Talbott/ VM Hilton/ 5-0) to approve the 2nd Reading and Adoption of Ordinance 2025-05, Adopting the Prezoning of APN’s 080-003-012, 015, 034, and 040 to RS, Single Family Residential, and APN’s 080-003-049 and 080-003-050 to PC, Planned Community 2022-0001.

5. COMMUNICATIONS FROM THE AUDIENCE

PRESENTATION

FINAL READINGS

ADOPTION OF CONSENT CALENDAR

PUBLIC HEARINGS

6. 6a: RESOLUTION: Approving Resolution 2025-67, Declaring the Intent to Modify the City of Waterford Water Rate Beginning March 1, 2026, Approving the Water Draft Tables City of Waterford Rate and Fee Study 2025 Option 1 or Option 2, and Directing Staff to Proceed with the Adoption of the proposed Fees in Conformance with the California Constitution, Article XIIID, Section 6 (Proposition 218). (Envia)
ACTION: Moving and seconded by motion (VM Hilton / CM Talbott/ 5-0) to Approve Resolution 2025-67, Declaring the Intent to Modify the City of Waterford Water Rate Beginning March 1, 2026, Approving the Water Draft Tables City of Waterford Rate and Fee Study 2025 Option 1, and Directing Staff to Proceed with the Adoption of the proposed Fees in Conformance with the California Constitution, Article XIIID, Section 6 (Proposition 218).

AYES: Goeken, Gutierrez, Harris, Hilton, Talbott
NAYS: None
ABSENT: None
ABSTAIN: None
Motion passed 5-0.
6b: MOTION: To Accept and file the June 30, 2025 Basic Financial Statement of the City of Waterford and the Auditor’s Report on the Financial Statements including the reports on the Abandoned Vehicle Abatement Program, Appropriations Limit Schedule, Transportation Development Act Fund, Component Unit Statements and the Auditor’s Communication with Those Charged with Governance. (Envia)
ACTION: Moving and seconded by motion (CM Talbott/ VM Hilton/ 5-0) to Accept and file the June 30, 2025 Basic Financial Statement of the City of Waterford and the Auditor’s Report on the Financial Statements including the reports on the Abandoned Vehicle Abatement Program, Appropriations Limit Schedule, Transportation Development Act Fund, Component Unit Statements and the Auditor’s Communication with Those Charged with Governance.

AYES: Goeken, Gutierrez, Harris, Hilton, Talbott
NAYS: None
ABSENT: None
ABSTAIN: None
Motion passed 5-0.
*** Recessed at 7:19 pm to open the WPFA meeting.
*** Reconvened the Regular City Council at 7:21 pm.

7. 8.
8a: City Project List

INFORMATIONAL ITEMS

SUCCESSOR AGENCY TO THE FORMER WATERFORD REDEVELOPMENT AGENCY

GENERAL BUSINESS
8b: My Waterford Request Report

9. 9a: City Staff
Finance Manager Envia gave out information about programs that MID offers to residents.

Public Works Director Statzer informed the audience that the Christmas Parade was Saturday, December 13th and the pre-parade meeting would be held at City Hall on Tuesday 12/9 at 6pm. Mr.

Statzer informed the Council that the Tennis Court Project has started and will look great when finished.

Mr. Statzer commended that water crew for working over 24 hours to repair a water main break and commented that the Pasadena Signal was active.

Chief Mullins gave the Council an update on staff changes that are occurring as well as information about the new SRO for Waterford School District. Chief Mullins informed the Council that the Mounted Patrol has made some river sweeps and will continue to do so as needed. Chief Mullins shared the crime stats for November.

City Clerk Krause had no comments.

City Attorney Browning updated the Council on the upcoming CVRA Public Forum and processes that will be occurring in the future, as well as closed session for the evening.

City Manager Pitcock shared with the Council the road repair tracking that he has been keeping, stating that the City has repaired 60% of the road segments on the list. Mr. Pitcock informed the Council that City Hall will be closed from December 24th until January 5th for the Holidays. 9b: City Council
Vice Mayor Hilton had no comments.

Councilmember Talbot had no comments.

Councilmember Gutierrez thanked Councilmember Harris for assisting with the River Trail and Park clean up event. Ms. Gutierrez reminded all about the upcoming Christmas parade as well as the window display contest being held by the Chamber of Commerce.

Councilmember Harris had no comments.

Mayor Goeken thanked everyone for attending the meeting.

10. Meeting Recessed 7:39 PM.

Mayor Goeken recessed the City Council meeting at 7:39 PM to convene to Closed Session directly following the recess. Adjournment of the City Council meeting followed the Report out of Closed Session.

11. 11a: “CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION” (Pursuant to Government Code Section 54956.9)
Burciago V. City of Waterford

CLOSED SESSION

ADJOURNMENT / RECESS

STAFF/COUNCIL COMMENTS AND MEETING REPORTS

12. 12.

PASSED AND ADOPTED by the Waterford City Council at a regular meeting held on December 18, 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF WATERFORD:
________________________
Charlie Goeken, Mayor
ATTEST:
_________________________
Patricia Krause, CMC, City Clerk

REPORT OUT OF CLOSED SESSION
Consent Calendar 3d
December 18, 2025
Patricia Krause, Administrative Services Director/City Clerk City Council Staff Report
MOTION: Reappointing Jose Aldaco to the Stanislaus Council of Governments (StanCOG) Measure L Oversight Committee.

SUMMARY:

Consider reappointing Joe Aldaco to the StanCOG Measure L Oversight Committee.

ANALYSIS:

The Measure L Oversight Committee is a standing committee of the Stanislaus Council of Governments acting as the Stanislaus County Transportation Authority. The Committee shall make recommendations to the StanCOG Policy Board and has the following responsibilities:
• Annually review the independent fiscal audit of the expenditure of the tax funds and issue an annual report on its findings regarding compliance with the requirements of the Expenditure Plan and the Ordinance.
• Oversight of the proper use of sales tax funds and implementation of the programs and projects set forth in the Expenditure Plan and making recommendations to the Board of the Authority. • The Measure L Oversight Committee is not a policy-making body.

The Measure L Oversight Committee consists of one representative appointed by each of the ten jurisdictions in Stanislaus County.

Council previously appointed Jose Aldaco to the Committee in December 2022. Staff is recommending that Council reappoint Jose Aldaco as the City of Waterford’s representative on the Measure L Oversight Committee.

FISCAL IMPACT:

None.

ENVIRONMENTAL REVIEW:

Not Applicable.

ALTERNATIVES:

1. Table this item and direct Staff to solicit additional applications from interested persons.

2. Table this item and provide direction to Staff.

3. Do not approve this appointment.

ATTACHMENTS:
n/a
1111 I Street, Suite 308 ● Modesto, CA 95354 ● 209.525.4600 ● Fax 209.558.7833 ● www.stancog.org City of Ceres ● City of Hughson ● City of Modesto ● City of Newman ● City of Oakdale ● City of Patterson City of Riverbank ● City of Turlock ● City of Waterford ● County of Stanislaus

MEMORANDUM
DATE:

TO:

FROM:

RE:

December 9, 2025
Patricia Crause, City Clerk
Shannon Silva, Office Supervisor
Reappointment of Jose Aldaco to Measure L Oversight Committee This is to inform you that Jose Aldaco would like to be reappointed to another three-year term as a member of the Stanislaus Council of Governments Measure L Oversight Committee (MLOC) when his current term concludes in January of next year.

Please let me know if Mr. Aldaco is reappointed by the City of Waterford for another three-year term.

The item would then be placed on the agenda of the StanCOG Policy Board to consider the acceptance of the appointment.

Should you have any questions, please let me know.

MEASURE L OVERSIGHT COMMITTEE
Membership Application

Page 1 of 4 ends

KEEP AN EYE ON YOUR TAX DOLLARS
Measure L is the Transportation Ordinance and Expenditure Plan approved by Stanislaus County voters on November 8, 2016. The measure raises the sales tax in Stanislaus County by one-half cent for a total period of 25 years to improve our local streets and roads, improve connectivity and reduce congestion. This money is administered by the Stanislaus Council of Governments (StanCOG) and pays for specific voter-approved transportation projects for local street and road improvements, and regional projects and transit programs specified in the Plan.

Measure L calls for an independent Measure L Oversight Committee to oversee compliance with the Ordinance as specified in the Transportation Ordinance and Plan.

The responsibilities of the 10-member Measure L Oversight Committee are to:
 Ensure all transportation revenue collected from Measure L is spent in accordance with the Measure L Ordinance and Expenditure Plan;
 Hold public meetings as necessary regarding the expenditure and status of funds generated by Measure L;  Review independent audits of the expenditure of tax funds and implementation of the programs and projects in the Expenditure Plan; and
 Issue an annual report on its findings regarding compliance with the requirements of the Expenditure Plan and the Ordinance to the StanCOG Board.

HOW ARE MEMBERS CHOSEN? WHO CAN APPLY TO SERVE?
Measure L Oversight Committee candidates are chosen
by the City Council or Board of Supervisors they
represent. Staff at each agency will individually
screen all applications, and conduct interviews and
recommend candidates for consideration by the elected
officials.

Measure L Oversight Committee members represent
each of StanCOG's member agencies. Each agency
appoints one member to represent its residents.

MEMBER VACANCIES
Currently, there are vacancies for representatives for
the cities of Newman, Oakdale, Turlock and
Waterford. They are open until filled. These
are volunteer positions and no monetary
compensation is paid to committee members.

The chairperson is selected by the members
of the committee.

Any Stanislaus County citizen 18 years or older may apply to serve on the Measure L Oversight Committee.

Potential candidates will be reviewed on the basis of
the following criteria:

TO APPLY:

Please print and mail completed application to:

StanCOG Measure L Oversight Committee
1111 I Street, Suite 308
Modesto, CA 95354
For more information, please call StanCOG at
(209) 525-4600

1. Commitment and ability to participate in Oversight
Committee meetings for a three-year term. The
Committee will maintain time and meeting requirements.

The Committee will meet quarterly.

2. Demonstrated interest and history of participation in community activities, with special emphasis on
transportation-related activities.

3. Lack of financial conflict of interest with respect to the allocation of sales tax revenue generated by Measure L.

4. Elected or appointed city, district, county, state or federal officials are not eligible to serve.

5. Members of any StanCOG Advisory Committee or other
Authority are not eligible to serve.

MEASURE L OVERSIGHT COMMITTEE
Membership Application

Page 2 of 4 ends

APPLICATION FOR MEASURE L OVERSIGHT COMMITTEE
Please type or print using dark ink. Additional sheets may be attached if needed.

Name: Email:

Business Address:

Street City Zip Code
Street City Zip Code
Business Phone:

Residence Address:

Home Phone:

Present Employment Status: □ Employed □ Unemployed □ Retired Present Occupation:

Ethnic Origin (optional):

Employer:

How long have you lived in the County? year(s)
Are you a registered voter in Stanislaus County? □ Yes □ No □ Yes □ No Do you have any possible conflict of interest with respect to the allocation of Measure L revenues?
If so, please explain.
□ Yes □ No
Are you related to or closely associated with any elected official or public employee? □ Yes □ No If so, please state the nature of the association.

Have you ever been convicted of malfeasance in office, or of any felony? □ Yes □ No If so, please explain.

Are you currently an elected or appointed officer of any public entity? (Note: All public officers shall complete an intent to resign form.) If so, please explain.

Please select the jurisdiction where you live:

Ceres
Hughson
Modesto
Newman
Oakdale
Patterson
Riverbank
Turlock
Waterford
Stanislaus County

MEASURE L OVERSIGHT COMMITTEE
Membership Application

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As a member of any profession or organization, or as a holder of any office, have you ever been suspended, disbarred, or otherwise disqualified? □ Yes □ No If so, please explain.
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Do you possess research abilities, including the capability to assess and analyze facts?
Is there any reason that you may be biased and not objective if you are chosen to serve as a member of the Measure L Oversight Committee? While no specific time commitment is predetermined, are you willing to make a conscientious effort for a period of three years to give membership on this committee a priority and participate as necessary?
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MEASURE L OVERSIGHT COMMITTEE
Membership Application

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EDUCATIONAL BACKGROUND:

List highest grade completed, any degrees you hold and the college/university attended and date of graduation.

EMPLOYMENT BACKGROUND:

List employment history for the last five years, including positions and titles held.

How did you hear about the Measure L Oversight Committee? □ Online □ Newspaper
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Other:

Why do you wish to be considered for membership on the Measure L Oversight Committee? Please print and mail completed application to:

StanCOG Measure L Oversight Committee
1111 I Street, Suite 308
Modesto, CA 95354
For more information call (209) 525-4600
I hereby declare the information provided in this Application for the Measure L Oversight Committee is true, correct and complete to the best of my knowledge. I understand that my statements may be verified and I give permission to do so.

Date Signature
□ Some High School □ Some College
□ High School Graduate □ College Graduate
Consent 3e
December 18, 2025
Tina Envia, Finance Manager
City Council Staff Report
Motion: Accept the City of Waterford Water Rate and Fee Study prepared by LT Municipal Consultants and issued on December 5, 2025.

SUMMARY:

Accept the City of Waterford Water Rate and Fee Study prepared by LT Municipal Consultants and issued on December 5, 2025.

ANALYSIS:

On August 7, 2025 the City entered into an agreement with LT Municipal Consultants to prepare a Water Rate and Fee Study to determine the Water Rates for the next 5 years. On November the 6th the first draft was presented with rates proposed at 47%, 23%, 6%, 3%, and 3%. Council gave staff directions to come back with some options that reduced the first-year impact. At the December 4, 2025, meeting staff presented two options: Option 1, 40%, 25%, 8%, 5%, 5% and Option 2, 30%, 25%, 20%, 5%, 5%. At that meeting Council directed staff to proceed with Option 1 and initiate the Proposition 218 process. Today’s request is for Council to make a Motion accepting the final City of Waterford Water Rate and Fee Study. The details of the study were covered at the last meeting of the City Council.

FISCAL IMPACT:

The fiscal impacts of the rate study are included in the document. As adopted, the new rates would provide for the financial needs of the Water Fund for the next 5 years. The rates, as designed, would cover operations, reserves, debt obligations, and capital investment as outlined in the document.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. The Council would make a Motion accepting the final City of Waterford Rate and Fee Study.

This would formalize the acceptance of the plan that supports the rates proposed and initiated at the December 4, 2025, Council Meeting.

2. The Council could elect not to make a Motion accepting the final City of Waterford Rate and Fee Study. This is not recommended as staff was already directed at the December 4, 2025, Council Meeting to proceed with rates proposed in the final draft of the City of Waterford Rate and Fee Study.

ATTACHMENTS:
• City of Waterford Rate and Fee Study December 5, 2025, prepared by LT Municipal Consultants
Water Rate and Fee Study
City of Waterford
Final Report
December 5, 2025
909 Marina Village Parkway #135  Alameda, CA 94501  (510) 545-3182  www.LTmuniconsultants.com City of Waterford
Water Rate and Fee Study 2025

TABLE OF CONTENTS
SECTION 1: INTRODUCTION AND EXECUTVE SUMMARY ..................................................................1

1.1 Background .......................................................................................................................1

1.2 Requirements of Proposition 218.....................................................................................1

1.3 Rate Study Process............................................................................................................2

1.4 Proposed Rates.................................................................................................................4

1.5 Bill Impacts........................................................................................................................5 SECTION 2: CUSTOMER BASE AND CURRENT RATE REVENUES.........................................................7

2.1 Current Rates....................................................................................................................7

2.2 Rate Revenues and Water Consumption..........................................................................8 SECTION 3: COST OF SERVICE ..........................................................................................................10

3.1 Water System Overview..................................................................................................10

3.2 Revenues.........................................................................................................................11

3.3 Operations.......................................................................................................................11

3.4 Capital .............................................................................................................................12

3.5 Reserves..........................................................................................................................13

3.6 Cash Flow Projection.......................................................................................................14 SECTION 4: COST ALLOCATION ........................................................................................................20

4.1 Methodology...................................................................................................................20

4.2 Proposed Cost Allocation................................................................................................20 SECTION 5: RATE DESIGN.................................................................................................................22

5.1 Revenue Requirement Allocation ...................................................................................22

5.2 Billing Units .....................................................................................................................23

5.3 Water Rate Derivation ....................................................................................................25

5.4 Proposed Five-Year Rate Plan .........................................................................................27

5.5 Bill Impacts......................................................................................................................28 City of Waterford
Water Rate and Fee Study 2025

LIST OF TABLES
Table 1: Proposed Monthly Water Rates......................................................................................................4 Table 2: Sample Residential Monthly Water Bill Impacts.............................................................................5 Table 3: Current Monthly Rates....................................................................................................................7 Table 4: Estimated Annual Service Charge Revenues, 2024/25 ...................................................................9 Table 5: Annual Water Consumption by Service Area................................................................................11 Table 8: Capital Improvement Plan.............................................................................................................12 Table 6: Cash Balance of Water Operations...............................................................................................14 Table 7: Cash Balance of Capital Reserves..................................................................................................14 Table 9: Operating Cash Flow .....................................................................................................................16 Table 10: Capital Cash Flow ........................................................................................................................17 Table 11: Debt Service Coverage Calculation .............................................................................................18 Table 12: Cost Allocation ............................................................................................................................21 Table 13: Allocation of Annual Service Charge Revenue Requirement......................................................22 Table 14: Proposed Meter Equivalents.......................................................................................................23 Table 15: Projected Customer Growth & Water Consumption..................................................................24 Table 16: Base Charge Derivation...............................................................................................................26 Table 17: Use Charge Derivation.................................................................................................................27 Table 18: Proposed Monthly Water Rates..................................................................................................28 Table 19: Sample Residential Monthly Water Bill Impacts.........................................................................30 City of Waterford Page 1
Water Rate and Fee Study 2025
SECTION 1: INTRODUCTION AND EXECUTVE SUMMARY

1.1 Background
The City of Waterford (City) is the eighth largest city in Stanislaus County, located in the Central Valley.

The City is east of the City of Modesto, west of Gold Country in the Sierras and sits on the Tuolumne River. The City has a population of over 9,300 residents and encompasses an area of about 2.4 square miles. In 2005, the City began providing water service to the River Pointe system, a subdivision within the City of Waterford, after acquiring it from the developer who constructed it. More recently, in 2015, the City acquired the City of Waterford and Town of Hickman water systems from the City of Modesto, which had been operating them since 1995. The Town of Hickman is a small community of about 750 residents directly across the Tuolumne River from the City of Waterford. Together, the River Pointe, Waterford, and Hickman service areas comprise the Waterford water system.

The primary goal of this Water Rate and Fee study is to determine a rate plan to cover the City’s cost of service for the next five years, beginning in March 2026. The City last conducted a Water Rate Study in 2016 shortly after the Waterford and Hickman systems were acquired. At that time, a series of rate increases were adopted, the most recent of which went into effect July 1, 2021. Since acquiring the Waterford and Hickman systems, the City has invested over $11 million dollars in infrastructure improvements and consolidation costs. The systems came to the City in a state of neglect, and it has been a constant source of financial pressure to address planned and unplanned needs, The strains of previous neglect and extensive cost of capital needs are the driving forces for the proposed adjustments to the water rates. The City’s cost of service also includes operations, maintenance, debt service costs, and maintaining reasonable reserves, all of which must be funded through the proposed rates. In recent years, unplanned costly repairs have strained the Water Fund’s ability to keep up with increasing operating costs while maintaining sufficient cash reserves.

1.2 Requirements of Proposition 218
The implementation of public agency utility rates in California is governed by the substantive and procedural requirements of Proposition 218 the “Right to Vote on Taxes Act” which is codified as Articles XIIIC and XIIID of the California Constitution. The City must follow the procedural requirements of Proposition 218 for all utility rate increases. These requirements include:

1. Noticing Requirement – The City must mail a notice of the proposed rate increases to all affected property owners. The notice must specify the amount of the fees, the basis upon which they were calculated, the reason for the fees, and the date/time/location of a public rate hearing at which the proposed rates will be considered/adopted.

2. Public Hearing – The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.

City of Waterford Page 2
Water Rate and Fee Study 2025

3. Rate Increases Subject to Majority Protest – At the public hearing, the proposed rate increases are subject to majority protest. If more than 50% of affected property owners (counted one per parcel) submit timely written protests against the proposed rate increases, the increases cannot be adopted.

Proposition 218 also established substantive requirements that apply to water rates and charges, including:

1. Cost of Service – Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the “cost of service”.

2. Intended Purpose – Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.

3. Proportional Cost Recovery – The amount of the fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of service attributable to that parcel. Caselaw allows this determination to be made customer class-bycustomer class rather than parcel-by-parcel.

4. Availability of Service – No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property. Standby charges are approved as assessments on real property.

5. General Government Services – No property-related fee or charge may be imposed for general governmental services available to the public at large, as police and some fire services are.

Charges for water service are exempt from additional voting requirements of Proposition 218 for other property-related fees, provided the charges do not exceed the cost of providing service and are adopted pursuant to the procedural requirements of Proposition 218.

1.3 Rate Study Process
A summary of the rate study process is provided in Figure 1.

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Water Rate and Fee Study 2025
Figure 1: Rate Study Process
The following is a brief description of the rate study process:
 Revenue Requirement – Revenue requirements are analyzed via a cash flow projection based on the best information currently available, such as the City’s historical operating results, budgets, audits, and input from staff. The cash flow serves as a roadmap for funding future operating costs and capital expenditures while maintaining long-term fiscal stability, all of which is calculated in this study to produce rates that will be necessary to recover only the projected cost of service per parcel under these proposed rates.
 Cost of Service Allocation - The cost of service process builds on the revenue requirement analysis and assigns water costs to functional cost components: metering and customer service, base demand, and extra demand.
 Rate Design - Rate design involves developing a rate structure that fairly recovers costs from customers but does not exceed the proportional cost of the service attributable to each parcel.

Final rate recommendations are designed to fund the City’s short- and long-term costs of providing service and fairly allocate costs to all customers.

City of Waterford Page 4
Water Rate and Fee Study 2025
The rates recommended in this report are based on the best available information gathered from the City’s budgets, audits, and input from staff and the ratemaking consultant’s professional opinion. The cost allocations proposed herein are based on industry standard practice. The proposed rates are based on the reasonable cost of providing service and do not exceed the proportional cost of the service attributable to each parcel.

1.4 Proposed Rates
Table 1 provides the current and proposed monthly water rates. The same rates apply to customers in all three service areas. It is proposed that the first rate change go into effect on March 1, 2026 with subsequent rate increases effective on March 1 of each year through 2030.

There is one proposed change to the water rate structure. Currently, 3/4” meter customers pay different base charges from 1” meter customers. Most existing residential customers have a 3/4” meter.

However, all new residential customers are required to have 1” meters or larger due to California Building Code regulations. Current City policy is to bill single family residential customers with a 1” meter at the 3/4” rate. It is proposed that these two customer categories be combined into one category in which the same base charge will be applied to all meter sizes up to and including 1”. By combining these categories as proposed, the 3/4” base charge will increase compared to the current 3/4” rate and the 1” base charge will decrease compared to the current 1” rate.

Table 1: Proposed Monthly Water Rates

PROPOSED
Current 2025/26 2026/27 2027/28 2028/29 2029/30
Effective Date Jul 1, 2021 Mar 1, 2026 Mar 1, 2027 Mar 1, 2028 Mar 1, 2029 Mar 1, 2030

BASE CHARGE
Meter Size
3/4" [1] $34.14 $43.23 $52.72 $55.52 $56.85 $58.21
1" [1] $54.30 $43.23 $52.72 $55.52 $56.85 $58.21

USE CHARGE
per HCF [2] $1.92 $3.05 $3.78 $4.04 $4.20 $4.37
1 - The 3/4" and 1" meters are currently billed at different rates, but are proposed to be combined into one category going forward.
2 - 1 HCF = 748 gallons
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Water Rate and Fee Study 2025

1.5 Bill Impacts
Water consumption for the average customer varies throughout the year due to seasonal weather patterns and other factors. Over the whole year, 16 hundred cubic feet (HCF) is the average monthly water usage for the City’s typical customer, a single family residential customer served by a 3/4” meter.

Under current water rates, this equates to a monthly water bill of $64.86. Under the proposed March 1, 2026 rates, the monthly bill for this level of usage will increase to $92.03, an increase of $27.17. Table 2 illustrates the bill impacts to the monthly water bill for a customer with a 3/4” meter over the next five years at various levels of monthly water usage including the average monthly usage (16 HCF), typical winter usage (9 HCF), and typical summer usage (24 HCF).

Table 2: Sample Residential Monthly Water Bill Impacts
Monthly Current PROPOSED
Use (HCF) Bill
Mar 1,
2026
Mar 1,
2027
Mar 1,
2028
Mar 1,
2029
Mar 1,
2030
9 HCF (Winter Bill)
Base Charge - 3/4" $34.14 $43.23 $52.72 $55.52 $56.85 $58.21 Use Charge 9 $17.28 $27.45 $34.02 $36.36 $37.80 $39.33
Monthly Water Bill $51.42 $70.68 $86.74 $91.88 $94.65 $97.54 $ Change $19.26 $16.06 $5.14 $2.77 $2.89
% Change 37.5% 22.7% 5.9% 3.0% 3.1%
16 HCF (Average Bill)
Base Charge - 3/4" $34.14 $43.23 $52.72 $55.52 $56.85 $58.21 Use Charge 16 $30.72 $48.80 $60.48 $64.64 $67.20 $69.92 Monthly Water Bill $64.86 $92.03 $113.20 $120.16 $124.05 $128.13 $ Change $27.17 $21.17 $6.96 $3.89 $4.08
% Change 41.9% 23.0% 6.1% 3.2% 3.3%
24 HCF (Summer Bill)
Base Charge - 3/4" $34.14 $43.23 $52.72 $55.52 $56.85 $58.21 Use Charge 24 $46.08 $73.20 $90.72 $96.96 $100.80 $104.88 Monthly Water Bill $80.22 $116.43 $143.44 $152.48 $157.65 $163.09 $ Change $36.21 $27.01 $9.04 $5.17 $5.44
% Change 45.1% 23.2% 6.3% 3.4% 3.5%
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Water Rate and Fee Study 2025
Figure 2 provides a bill survey which compares the City’s current and proposed average monthly water bills to those charged by other local agencies. Because the City’s 3/4” and 1” meter base charges are proposed to be merged into one category, both the current 3/4” and 1” bills are included on the chart for comparison purposes. All single family residential customers are currently billed at the 3/4” rate, however.

The City of Waterford’s current average bill for 3/4” customers is slightly below average cost for the region. Following the rate increase, the City’s typical bill will fall in the upper range of agencies surveyed.

The proposed rates are comparable to the current rates charged by Manteca and Ceres. Similar to the City of Waterford, many other agencies are likely facing financial pressure to raise rates in the coming years. The rates for other agencies which are included in the chart are based on the most recent publicly available data at the time of this report.

Figure 2: Single Family Residential Water Bill Survey
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Water Rate and Fee Study 2025
SECTION 2: CUSTOMER BASE AND CURRENT RATE REVENUES
The City of Waterford provides water service to over 2,600 service connections within the water system’s three service areas: Waterford, River Pointe, and Hickman. This section provides an overview of the City’s current water rates, customer base, water usage statistics, and current water rate revenues.

2.1 Current Rates
A schedule of current water rates is provided in Table 3. Customers are billed monthly for water service.

Customers in each of the City’s three service areas pay the same rates. The current monthly water rates were adopted pursuant to Proposition 218 requirements as part of a five-year schedule of rate increases established by the City’s 2016 water rate study. The current rates were the last of that series of rate increases and went into effect on July 1, 2021. The water rate structure includes two components – (1) Base Charge and (2) Use Charge.

1. Base Charge
All customers, residential and non-residential, are charged the same fixed base charges based on their meter size ranging from 3/4” up to 6”. The base charge is levied regardless of water consumption and recognizes that even when a customer does not use any water, the City incurs fixed costs associated with maintaining the ability or readiness to serve each connection. The base charge increases as meter size increases. Meter size represents the estimated demand that each customer can place on the water system. A significant portion of a water system’s design, and therefore, the utility’s operating and capital costs, are associated with meeting capacity requirements. Larger meters are charged based on their estimated capacity.

2. Use Charge
All customers are billed a uniform rate for each unit of water consumed. One unit of water, or one hundred cubic feet (HCF), is equal to 748 gallons of water. The use charge is intended to recover costs that vary based on the amount of water consumed, such as utilities and chemicals.

Table 3: Current Monthly Rates
Meter Size
Monthly
Rate
3/4" $34.14
1" $54.30

1.5" $133.66
2" $212.71
3" $465.09
4" $801.99
6" $1,655.86
Use Charge per HCF $1.92
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Water Rate and Fee Study 2025

2.2 Rate Revenues and Water Consumption
Table 4 provides customer counts by meter size and service area, water usage statistics, and estimated annual rate revenues based on the City’s billing data from fiscal year (FY) 2024/25. The City provides water service to about 2,600 accounts. There are about 2,100 connections in the City of Waterford service area, 320 connections in the River Pointe service area, and 180 connections in the Town of Hickman service area. The vast majority of the City’s customers in all three service areas are residential customers, although both Waterford and Hickman serve a small number of commercial customers and there are a small number of landscape customers across all three service areas.

As shown on Table 4, the City generated an estimated $2.46 million in water rate revenues during 2024/25. Approximately 52% of water rate revenues were collected from the fixed base charges and approximately 48% from use charges. Total annual water consumption was about 611,000 hundred cubic feet (HCF). It should be noted that the meter size counts shown in Table 4 represent the meter sizes at which customers are billed, which in some cases differ from the meter size of the actual connection. As described in Section 1.4, current City policy is to bill all single family residential customers at the 3/4” rate regardless of whether they have a 3/4” or 1” meter. This reflects that newer residential construction is required to have 1” meters or larger due to California Building Code regulations, though they would likely only require the smaller 3/4” meter absent these requirements.

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Water Rate and Fee Study 2025
Table 4: Estimated Annual Service Charge Revenues, 2024/25

BASE CHARGES
Meter Size No. of Meters
Monthly
Rate
Estimated Annual
Revenue % of Total
Waterford
3/4" 2,052 $34.14 $840,663 66%
1" 3 $54.30 $1,955 0%

1.5" 8 $133.66 $12,831 1%
2" 28 $212.71 $71,471 6%
3" 3 $465.09 $16,743 1%
4" 6 $801.99 $57,743 5%
6" 3 $1,655.86 $59,611 5%
Subtotal Waterford 2,103 $1,061,018 83%
River Pointe
3/4" 323 $34.14 $132,327 10%
Subtotal River Pointe 323
Hickman
3/4" 171 $34.14 $70,055 5%
1" 0 $54.30 $0 0%

1.5" 1 $133.66 $1,604 0%
2" 3 $212.71 $7,658 1%
3" 0 $465.09 $0 0%
4" 1 $801.99 $9,624 1%
6" 0 $1,655.86 $0 0%
Subtotal Hickman 176 $88,941 7%
Total Fixed Revenues 2,602 $1,282,285 100%

USE CHARGES
All Customers
Annual Consumption
(HCF)
Rate per
HCF
Estimated Annual
Revenue % of Total
Waterford 466,014 $1.92 $894,746 76%
River Pointe 94,621 $1.92 $181,672 15%
Hickman 50,338 $1.92 $96,650 8%
Total Use Charges 610,973 $1,173,068 100%

TOTAL WATER SERVICE CHARGE REVENUES
All Customers
Estimated Annual
Revenue % of Total
Fixed Charges $1,282,285 52%
Use Charges $1,173,068 48%
Total Water Service Charge Revenues $2,455,353 100%
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Water Rate and Fee Study 2025
SECTION 3: COST OF SERVICE
Proposition 218 requires that utility rates be based on the reasonable cost of providing service to customers. This section provides an analysis of water system revenues and expenses to determine the total cost of service to be recovered via water rates. The cost of service is expressed in a cash flow table that illustrates revenue increases needed to keep up with expenses and promote financial health. Over the five-year rate study period, rate increases are proposed so that the City can pay for operating costs, fund capital improvements, meet debt coverage requirements, and maintain reasonable reserves, all of which are calculated in this study to produce rates that will be necessary to recover only the actual cost of the water service per parcel under these proposed water rates.

3.1 Water System Overview
As described in the preceding sections, the City of Waterford’s water system provides service to three service areas consisting of the River Pointe subdivision, the City of Waterford, and the Town of Hickman.

There are about 2,100 connections within Waterford, 320 within River Pointe, and 180 within Hickman.

The water system relies entirely on local groundwater from the underlying deep confined aquifer of the San Joaquin Valley, located in the Modesto subbasin. Groundwater is drawn from 8 wells located in the City of Waterford and 2 wells located in the Town of Hickman. One of the wells in Hickman is in poor condition and has been down and off, however. Pumped groundwater is disinfected by chlorine addition at each wellhead and then discharged directly into the distribution system. The distribution system consists of approximately 32 miles of cast iron, steel, and polyvinyl chloride pipelines.

Since acquiring the Waterford and Hickman systems in 2015, the City has struggled to address system deficiencies and has been working toward achieving full consolidation of the systems as a solution to improving water quality and service. Although the physical interconnection between the River Pointe and Waterford service areas was completed in 2021, the Hickman service area remains physically separate from the City’s other two service areas. However, in 2025, the City entered into a loan agreement with the California Infrastructure and Economic Development Bank (IBank) that will finance the completion of a water pipeline between the Waterford and Hickman service areas. The project is expected to be completed within six months of breaking ground and is the last step needed to consolidate the City’s three service areas into one interconnected system. Full consolidation of the City’s three service areas will reduce dependence on the 2 existing wells in the Town of Hickman which are in poor condition, ensuring that customers in the Hickman service area have access to a safe and reliable water source. Consolidation will also improve the system’s capacity to respond to fires and other emergencies.

Water system demands are primarily residential, but service is also provided to a small number of commercial and landscape customers. As shown on Table 5, total annual water consumption has averaged about 546,000 HCF per year over the past three fiscal years based on the City’s billing data. In 2024/25, there was a significant increase in water consumption compared to the previous two years.

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Water Rate and Fee Study 2025
Table 5: Annual Water Consumption by Service Area
Service Area 2022/23 2023/24 2024/25
3-Year
Average
Waterford 375,316 394,244 466,014 411,858
River Pointe 80,066 86,621 94,621 87,102
Hickman 44,626 47,282 50,338 47,415
Total Usage (HCF) 500,008 528,147 610,973 546,375
Percent Change 5.6% 15.7%

3.2 Revenues
The vast majority of the water system’s revenues are made up of monthly water service charges paid by ratepayers in all three service areas. Additional minor sources of operating revenues include interest earnings and other miscellaneous revenues. To fund the costs described below, a 40% rate revenue increase is proposed to go into effect on March 1, 2026, which is during the 2025/26 fiscal year. Not every customer will receive a rate increase exactly equal to 40% due to proposed cost allocation changes, individual water consumption, and meter size.

For 2025/26, projected service charge revenues are based on the City’s budget in addition to the expected increase from the proposed rate change. The City budgeted for about $2.4 million in projected revenues. If a 40% revenue increase were applied across the entire year, the City would therefore be expected to collect about $3.4 million in rate revenues. Because the increase is proposed to go into effect March 1, it is expected that the City will collect revenues at the existing rates for 8 months and revenues at the proposed increase for 4 months. Total service charge revenues are therefore projected to equal approximately $2.7 million.

3.3 Operations
In 2025/26, water operating expenses total approximately $2.2 million. Major line-items include salaries & benefits, maintenance & operations, professional fees, and materials & supplies. As needed, rate revenue is transferred annually from the Operations Funds to the Capital Funds to pay for facility improvements and make debt service payments. This fiscal year, about $444,000 will be transferred to the Capital Funds. Total expenses for 2025/26 including operating expenses and the transfer to the Capital Funds are about $2.6 million.

Beyond 2025/26, operating expenses are projected to increase annually based on cost escalation factors estimated by City staff. Salaries & benefits are projected to increase according to the City’s adopted MOU for 2025/26 to 2028/29 which consists of annual increases of 4.5%, 4.5%, 4.0%, followed by 3.5%.

An additional $15,000 per year in increased health costs is also expected. 2029/30 onwards, salaries & benefits are projected to increase by 3.0% annually. Maintenance & operations are projected to City of Waterford Page 12
Water Rate and Fee Study 2025
increase by 2.5% annually. Both professional fees and materials & supplies are projected to increase by

3.0% annually.

3.4 Capital
The water system’s Capital Funds are intended to provide cash flow for infrastructure repairs and replacements. Revenues include interest earnings on reserves and transfers of rate revenues from the Operations Funds. The City’s capital improvement plan for 2026/27 through 2030/31, which was developed by City staff, is provided in Table 8. The projects identified are critical for the City to continue to provide safe and reliable water service to customers. Projects include pipe replacements, well improvements, new equipment, and a water master plan. In recent years, the City has dealt with several costly main breaks. Proactively replacing some of the City’s other aging pipelines will reduce the likelihood of future emergency repairs and service interruptions. Over the next five years, $9.4 million in project costs must be funded by ratepayers. $6.3 million of the costs will be funded directly through rate revenues. The remaining $3.1 million in costs is anticipated to be debt funded over 20 years using lowcost loans.

Table 6: Capital Improvement Plan
No. Project 2026/27 2027/28 2028/29 2029/30 2030/31 5-Year Total Rate Funded Projects
3 Downtown Pipe Replacement 750,000 750,000 750,000 750,000 750,000 3,750,000 7 Misc. Well Improvements-Existing 287,500 287,500 287,500 287,500 287,500 1,437,500 8 New Equipment / Supplies 175,000 175,000 175,000 175,000 175,000 875,000 9 Master Plan and Rate Study 0 0 0 0 262,500 262,500
Total Rate Funded Projects 1,212,500 1,212,500 1,212,500 1,212,500 1,475,000 6,325,000 Debt Funded Projects [1]
2 Well 244 Replacement 375,000 2,125,000 0 0 0 2,500,000 6 Surface Water Project 91,875 520,625 0 0 0 612,500
Total Debt Funded Projects 466,875 2,645,625 0 0 0 3,112,500 Total Capital Projects $1,679,375 $3,858,125 $1,212,500 $1,212,500 $1,475,000 $9,437,500 1 - It is anticipated that the City will take on new debt in 2026/27, with payments beginning in 2028/29. The total loan amount will be $4.25M, reflecting the full cost of the Surface Water Project of $1.75M plus $2.5M for the Well 244 Replacement. 65% of the project costs for the Surface Water Project will later be repaid by impact fees as new development occurs.

3.4.1 Debt Service and Debt Service Coverage
The Capital Funds are also responsible for debt service payments for the water system’s debt obligations. The system has two outstanding debt obligations. The first debt obligation is with Umpqua Bank. In 2015, the City took on a loan of about $2.9 million to fund the acquisition of the Waterford and Hickman water systems from the City of Modesto. Annual payments of $262,000 are due each June through 2030. The second existing debt obligation is the City’s loan from the California Infrastructure and Economic Development Bank (IBank). As noted in Section 3.1, the City entered into a loan agreement with the IBank in 2025 to finance the completion of a water pipeline that physically interconnects the City of Waterford with the Town of Hickman. The total amount of the loan is $1.5 City of Waterford Page 13
Water Rate and Fee Study 2025
million. For financial planning purposes, annual payments were estimated at $115,500 and will be due each July through 2044.1
In addition to its existing loans, the water system is anticipated to take on new debt in 2026/27 in the amount of $4.25 million. It is estimated that the City will repay this loan over 20 years at 5% interest, with annual payments of $341,000 beginning during 2028/29. This new debt will be used to fund the Surface Water Project and a new well at Well Site 244, as shown in Table 8. As new development occurs, 65% of the Surface Water Project will be repaid by impact fees. The cost of $3.1 million provided in Table 8 reflects the amount of funding needed from existing ratepayers, and project costs that will be funded through impact fees are excluded from that table.

A chief covenant for the City to secure loans, grants, or revenue bonds/Certificates of Participation (COPs) is to maintain a specific debt service coverage ratio. A debt service coverage ratio is a financial measure of an agency’s ability to repay outstanding debt. For the water system, the debt service coverage ratio means that annual water net revenues (gross revenues less operating and maintenance expenses) must be at least 1.25 times the combined annual debt service payments on all parity obligations. Failure to meet the debt service coverage ratio on an annual basis is considered to be technical default, thereby making the revenue bonds/COPs callable or payable upon demand. Thus, rates and fees must be set to meet this legal requirement.

3.5 Reserves
In addition to funding budgeted expenses, the cost of service includes the funding of adequate cash reserves. Adequate reserves protect the City when faced with unforeseen financial challenges such as emergency expenses and revenue deficits. Fund reserves are a critical tool that will allow the City to maintain its financial health and positive credit ratings, especially during emergencies. Moreover, funding can be drawn from reserves to supplement rate revenues lost during drought conditions or other unexpected situations. It is acceptable if reserves dip below the target on a temporary basis, provided the City takes action to attain the target over the longer run. The current targeted reserve is 25 percent of total annual operating expenses which is proposed to be continued over the next five years.

Table 6 provides the cash balance in the City’s Operations Funds as of the beginning of fiscal year 2025/26. Total estimated cash reserves are about $319,000, which is below the target balance of $542,000 (Table 9). The rate increases proposed in this report are designed to meet the reserve target over the next five years, beginning in 2026/27.
1 During the rate development process, the City estimated the annual IBank payments to be $115,500. Following rate development, the City learned that the payments will likely be closer to $95,000 per year. The City should invest any savings from its debt service payments into additional repairs and maintenance of the water system.

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Table 7: Cash Balance of Water Operations
Water System
Beginning Cash Balance
(June 30, 2025)
River Pointe (16,550)
Waterford 378,456
Hickman (43,179)
Total Water Operations 318,727
The City also maintains capital reserves separately from operating reserves. The total cash balance in the City’s Capital Funds at the beginning of 2025/26 was about $400,000, see Table 7. Over the next fiscal year, these reserves are proposed to be spent down to finance capital improvements. However, the proposed rates are designed to gradually rebuild the City’s capital reserves beginning in 2027/28.

Table 8: Cash Balance of Capital Reserves
CIP Account
Beginning Cash Balance
(June 30, 2025)
CIP Waterford 444,788
CIP Hickman (44,356)
Total Capital Reserves 400,432

3.6 Cash Flow Projection

3.6.1 Cash Flow Objectives
Over the five-year rate study period, rate increases are proposed such that the following objectives are met, in order of importance:
1) Fund operating costs
2) Fund debt service payments
3) Meet or exceed the debt service coverage requirement of 1.25 times total annual debt payments
4) Fund capital costs via transfers to the Capital Fund 5) The cash fund balance at the end of each year should meet or exceed the operating reserve fund target of 25 percent of annual operating expenses

3.6.2 Operations Fund
The cash flow for the combined operations of the Waterford, River Pointe, and Hickman service areas is provided in Table 9. Although the proposed rate increases only extend through 2029/30, the cash flow projections include 2030/31 as the final year to correspond with the City’s capital improvement planning horizon (Table 8). To cover the cost of providing service and meet the objectives described above, the first rate increase on March 1, 2026 is proposed to be a 40% increase over total current rate revenues.

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However, not every customer will receive exactly a 40% rate increase. The 40% increase represents the average increase across all customers, and the rate change for each individual customer will depend on that customer’s meter size and water usage. Subsequent rate increases of 25%, 8%, 5%, and 5% are proposed to go into effect each March 1 beginning 2027 through 2030.

It should also be noted that the projected service charge revenues shown in the cash flow projection for each fiscal year are prorated based on the March 1 implementation date. During each fiscal year, it is estimated that the City will collect rate revenues at the previous year’s rates for 8 months (July through February) and at the current year's rates for 4 months (March through June). Table 9 includes the estimated prorated revenues during each fiscal year (Service Charges) and the revenues over a full 12 months under each proposed increase (Rate Revenues w/July 1 Increase) for comparison purposes.

The major driver for the rate increase is capital improvement funding. As shown in Table 6 and Table 7, the water system has limited cash reserves available to fund the necessary capital improvements identified in Table 8. In recent years, unplanned costly repairs have strained the City’s ability to keep up with increasing operating costs while maintaining sufficient cash reserves. Rate increases are needed to fully fund upcoming capital improvement projects and meet the City’s financial targets.

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Table 9: Operating Cash Flow
Budget Projected
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Rate Increase % 40% 25% 8% 5% 5% 0%
Rate Increase Effective Date
Mar 1,
2026
Mar 1,
2027
Mar 1,
2028
Mar 1,
2029
Mar 1,
2030
Past 5-year
Timeline
Rate Revenues w/July 1 Increase 3,355,500 4,194,400 4,530,000 4,756,500 4,994,300 4,994,300 BEGINNING CASH BALANCE $318,700 $436,800 $602,400 $816,900 $900,100 $1,024,400

REVENUES
Service Charges [1] 2,716,400 3,635,100 4,306,300 4,605,500 4,835,800 4,994,300 Delinquency (2.5%) (67,900) (90,900) (107,700) (115,100) (120,900) (124,900) Interest Earnings 18,100 13,100 18,100 24,500 27,000 30,700 Other Water Revenue 63,000 64,900 66,800 68,800 70,900 73,000 Subtotal Operations Revenue 2,729,600 3,622,200 4,283,500 4,583,700 4,812,800 4,973,100

EXPENSES
Operating Expenses
Salaries & Benefits 940,000 997,300 1,052,100 1,104,000 1,152,100 1,201,600 Maintenance & Operations 789,600 809,300 829,600 850,300 871,600 893,400 Professional Fees 201,200 207,200 213,400 219,800 226,400 233,200 Materials & Supplies 236,800 243,900 251,200 258,700 266,500 274,500 Subtotal Operating 2,167,600 2,257,700 2,346,300 2,432,800 2,516,600 2,602,700 Net Operating Revenues 562,000 1,364,500 1,937,200 2,150,900 2,296,200 2,370,400 Non-Operating Expenses
Transfer to CIP 443,900 1,198,900 1,722,700 2,067,700 2,171,900 2,276,400 Subtotal Non-Operating 443,900 1,198,900 1,722,700 2,067,700 2,171,900 2,276,400 Total Expenses 2,611,500 3,456,600 4,069,000 4,500,500 4,688,500 4,879,100 Total Net Revenues 118,100 165,600 214,500 83,200 124,300 94,000 Ending Cash Balance $436,800 $602,400 $816,900 $900,100 $1,024,400 $1,118,400 Target Reserve Balance 541,900 564,400 586,600 608,200 629,200 650,700 Target Met? (25% of O&M) no yes yes yes yes yes
1 - Estimated service charge revenues collected each fiscal year are prorated based on the proposed March 1 implementation date. It is projected the City will collect 8 months of revenue at the prior year’s rates and 4 months of revenue at the current year’s rates during each fiscal year (July through June).

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3.6.3 Capital Fund
Table 10 provides the Capital Fund cash flow. Capital project and debt service funding is dependent on transfers of rate revenues from the Operations Fund. As shown in the cash flows, the proposed rate increases will fully fund the capital improvements shown in Table 8, the annual payments on existing debt service, and projected new debt payments which are expected to begin in 2028/29. The Capital Fund is projected to begin 2025/26 with about $400,000 in available cash reserves. Most of this reserve will be spent down in 2026/27 to mitigate the initial rate impacts to customers to the extent possible but will be gradually rebuilt beginning in 2027/28.

Table 10: Capital Cash Flow
Budget Projected
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
BEGINNING CASH BALANCE $400,400 $556,700 $44,200 $51,700 $59,200 $166,700

REVENUES
Interest Earnings 7,500 7,500 7,500 7,500 7,500 7,500
Transfers In from Operations 443,900 1,198,900 1,722,700 2,067,700 2,171,900 2,276,400 Other Transfers 267,500 0 0 0 0 0
Total Revenues 718,900 1,206,400 1,730,200 2,075,200 2,179,400 2,283,900

EXPENSES
Professional Services 50,000 51,500 53,000 54,600 56,200 57,900 Maintenance & Repairs 75,000 77,300 79,600 82,000 84,500 87,000 Capital Purchases 60,000 1,212,500 1,212,500 1,212,500 1,212,500 1,475,000 Total Expenses 185,000 1,341,300 1,345,100 1,349,100 1,353,200 1,619,900 Umpqua Loan 262,100 262,100 262,100 262,100 262,200 0
New IBank Loan Estimate 115,500 115,500 115,500 115,500 115,500 115,500 Future Debt Service [1] 0 0 0 341,000 341,000 341,000
Debt Service 377,600 377,600 377,600 718,600 718,700 456,500 Net Revenues 156,300 (512,500) 7,500 7,500 107,500 207,500 Ending Cash Balance 556,700 44,200 51,700 59,200 166,700 374,200 1 - $4.25M loan to fund the Well 244 Replacement and Surface Water Project over 20 years at 5% interest.

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3.6.4 Debt Service Coverage
Table 11 provides the debt service coverage ratio calculation for the combined Operations and Capital Funds for all three service areas. Net operating revenues are projected to provide coverage in excess of

1.25 times total annual debt service payments for each year of the rate study period.

Table 11: Debt Service Coverage Calculation
Budget Projected
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31
Net Operating Revenues 562,000 1,364,500 1,937,200 2,150,900 2,296,200 2,370,400 Umpqua Loan 262,100 262,100 262,100 262,100 262,200 0
New IBank Loan 115,500 115,500 115,500 115,500 115,500 115,500 Future Debt Service [1] 0 0 0 341,000 341,000 341,000
Total Debt Service 377,600 377,600 377,600 718,600 718,700 456,500 Coverage Ratio (Target is >1.2) 1.49 3.61 5.13 2.99 3.19 5.19 1 - $4.25M loan to fund the Well 244 Replacement and Surface Water Project over 20 years at 5% interest.

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3.6.5 Summary of Combined Cash Flow Results
Figure 3 graphically summarizes the combined Operations and Capital water cash flow projections including the proposed annual revenues in comparison to current revenues. The chart demonstrates that the proposed rate increases will allow the City to pay for the full cost of providing service including operating costs, existing and proposed debt payments, capital projects, and maintaining reasonable reserves. It should be noted that not every customer’s monthly water bill will increase by the exact percentages shown in the chart due to proposed changes to the rate structure, cost allocation, and projected growth in the customer base, all of which are described in further detail in the following sections.

Figure 3: Cash Flow Projection
* The rate change for each customer will not be exactly equal to 40%. The bill impacts to each customer are dependent on each customer’s meter size and water usage. Proposed revenues shown here also include revenues from new customers projected to connect to the system.

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SECTION 4: COST ALLOCATION
The prior section determined the total cost of providing water service to customers. In this section, the total annual revenue requirement is allocated to each rate component (consisting of the base charge and the use charge) based on the actual costs attributable to each to fairly recover costs based on how customers use the system, and in any event, not to exceed the proportional cost of the water service attributable to each parcel.

4.1 Methodology
The American Water Works Association (AWWA) recommends methods to classify costs among various customers. Using the Base-Extra Capacity Method as recommended by the AWWA, water operating expenses are allocated to the following categories: (a) Base, (b) Extra, (c) Meters & Services, and (d) Customer Service. The Base and Extra categories are intended to recover the costs to deliver water to customers, while the Customer Service and Meters & Services categories are intended to recover expenses related to maintaining infrastructure in the system to supply water at all times under the proposed water service rates derived in this study. A summary of the cost allocation categories is provided below:
 Base: Base costs include the expenses related to providing water under average (“base”) demand conditions.
 Extra: The extra category includes costs related to providing water above the system average demand (i.e., related to peak, “extra” usage).
 Meters & Services: These include costs related to maintaining infrastructure and operating capacity to provide service at any time under the proposed water service fee rates in this study.
 Customer Service: This category contains costs associated with serving customers, such as billing and answering customer inquiries.

4.2 Proposed Cost Allocation
The cost allocation determines the percentage of annual revenue to be collected from the base charge and the use charge. The water system’s expenses are allocated to each cost allocation category based on how the City incurs each cost to fairly recover costs based on how customers use the system. The percentage of costs allocated to the Meters & Services and Customer Service categories are proposed to be recovered from the fixed base charge. The percentage of costs allocated to the Base + Extra category is proposed to be recovered from the use charge which is billed per unit of metered consumption. Since the City’s use charge is a uniform rate that does not vary based on the amount of water consumed, the AWWA recommended cost categories of Base and Extra are combined for rate design purposes. Rate design is described in further detail in the next section.

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Table 12 provides the results of the cost allocation with 2026/27 serving as the test year. The base charge is proposed to recover the City’s costs for salaries & benefits, professional fees, debt service, 25% of the costs of maintenance and materials, and 10% of capital expenses. The use charge is proposed to recover the remaining 75% of maintenance and materials costs along with 90% of capital expenses. In total, about 51% of costs are attributable to the base charge (i.e. Meters & Services and Customer Service), and about 49% of costs are attributable to the use charge (i.e. Base + Extra).

Table 12: Cost Allocation
Projected BASE CHARGE USE CHARGE
2026/27 Total
Meters &
Services
Customer
Service Base + Extra
Operating Expenses
Salaries & Benefits $997,300 90.0% 10.0% 0.0% 100%
Maintenance & Operations $809,300 25.0% 0.0% 75.0% 100% Professional Fees $207,200 100.0% 0.0% 0.0% 100%
Materials & Supplies $243,900 25.0% 0.0% 75.0% 100%
Subtotal Operating $2,257,700 $1,368,070 $99,730 $789,900 $2,257,700 Allocation % 60.6% 4.4% 35.0% 100.0%
Non-Operating Expenses
Capital Expenses [1] $1,401,700 10.0% 0.0% 90.0% 100%
Debt Service [1] $529,800 100.0% 0.0% 0.0% 100%
Subtotal Non-Operating $1,931,500 $669,970 $0 $1,261,530 $1,931,500 Allocation % 34.7% 0.0% 65.3% 100.0%
TOTAL EXPENSES $4,189,200 $2,038,040 $99,730 $2,051,430 $4,189,200 Total Allocation % 48.7% 2.4% 49.0% 100.0%
1 - Average 5-year costs
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SECTION 5: RATE DESIGN
Following the allocation of costs, the next step is to derive the total cost responsibility for each customer class by developing unit costs of service for each cost function and then assigning those costs to the customer classes based on the respective service requirements of each.

5.1 Revenue Requirement Allocation
Table 13 calculates the base and use charge revenue requirements for each year by applying the cost allocation percentages from Table 12 to the total annual revenue requirement from Table 9. 48.7% of the total revenue requirement is assigned to the Meters & Services category (recovered through the base charge), 2.4% is assigned to the Customer Service category (also recovered through the base charge), and the remaining 49% is assigned to the combined Base + Extra category (recovered through the use charge).

The total annual revenue requirement is based on the revenues the City would collect over 12 months under each proposed rate increase. However, because the proposed rates will be implemented March 1 of each year, the annual revenue collected on a fiscal year basis (July 1 to June 30) will reflect eight months at the prior year’s rates and four months at the rates implemented March 1 each year.

Table 13: Allocation of Annual Service Charge Revenue Requirement Cost
Allocation %

PROJECTED
2025/26 2026/27 2027/28 2028/29 2029/30
Total Revenue
Requirement [1] $3,355,500 $4,194,400 $4,530,000 $4,756,500 $4,994,300

BASE CHARGES
Meters & Services 48.7% $1,632,451 $2,040,576 $2,203,845 $2,314,037 $2,429,727 Customer Service 2.4% $79,861 $99,827 $107,814 $113,205 $118,864 Total Base Charges 51.0% $1,712,312 $2,140,402 $2,311,659 $2,427,242 $2,548,591

USE CHARGES
Base + Extra 49.0% $1,643,188 $2,053,998 $2,218,341 $2,329,258 $2,445,709 Total Use Charges 49.0% $1,643,188 $2,053,998 $2,218,341 $2,329,258 $2,445,709 TOTAL 100.0% $3,355,500 $4,194,400 $4,530,000 $4,756,500 $4,994,300 1 - From Cash Flow; Total Service Charges revenue requirement if rates were to be in effect for full 12 months per fiscal year
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5.2 Billing Units

5.2.1 Meter Equivalents
The most common method to levy fixed base charges is by meter size. AWWA guidelines recommend using meter equivalents to assign demand-related costs to larger meter sizes. The ratio at which the meter charge increases is typically a function of either meter investment (estimated cost) or the meter’s maximum flow rate, which represents the safe operating capacity of a meter of that size. Larger meters have the ability to place a greater demand on the water system and are therefore charged based on that potential demand. For example, based on the AWWA meter capacity ratios, a customer that has a 3” meter has 14.0 times the capacity equivalency of a customer with a base residential (up to 1”) meter—a 3” meter has a safe operating capacity of 350 gallons per minute (gpm) compared to a base residential meter which has a safe operating capacity of 25 gpm.

Table 14 shows the City’s current number of meters and calculates the number of meter equivalents based on AWWA meter capacity ratios. The current number of meters is taken from the City’s billing data for July 2025, the most recent data available at the time of this report. The City’s existing base charges are based on AWWA ratios, and the ratios used to assign capacity equivalency to larger meter sizes are not proposed to change with this rate update. The only proposed change is the combination of the 3/4” and 1” meters into one category. The meter ratio of each meter size is calculated by dividing the meter’s safe operating capacity (in gallons per minute) by the safe operating capacity of a base residential meter (25 gpm). The total number of meter equivalents is determined by multiplying the number of meters for each meter size by the corresponding meter ratio shown in Table 14. The City currently serves about 2,700 meters or 3,250 meter equivalents.

Table 14: Proposed Meter Equivalents
Meter Size
Number of
Meters [1]
Maximum Flow
Rate (gpm) [2]
Meter
Ratio
Proposed Meter
Equivalents
Base Residential (Up to 1") [3] 2,643 25 1.00 2,643

1.5" 9 100 4.00 36
2" 33 160 6.40 211
3" 3 350 14.00 42
4" 7 600 24.00 168
6" 3 1,250 50.00 150
Total 2,698 3,250
1 - The number of meters is taken from the City's billing data for all three systems for July 2025. 2 - From 2018 Water Rate Study, Table A-17. Intermittent maximum flow rates, AWWA, M6 Water Meters - Fifth Edition, pages 63-65. Gpm = gallons per minute. 3 - The majority of base residential customers have a 3/4" meter. All single family residential customers with a 1" meter are currently billed at the 3/4" rate. The 3/4" and 1" categories are proposed to be combined into one category for billing purposes.

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5.2.2 Projected Growth & Use
Table 15 shows a projected estimate of the total number of water meters, water meter equivalents, and water use for each of the next five years. Based on projections by City staff, it is estimated that the water system’s customer base will grow by 3.0% each year over the next five year. The City’s customer base is predominantly residential, and to be conservative it is assumed that all new customers connecting to the system will also be residential and therefore served by a base residential (1”) meter.

Current estimated water consumption is based on the average billed consumption over the past three years (Table 5) less a 2.5% reduction to account for potential conservation as customers react to increased rates as well as some delinquency. Consumption is estimated to increase by 1.0% each year beginning in 2025/26 as new customers connect to the system.

Table 15: Projected Customer Growth & Water Consumption

CURRENT PROJECTED - RATE STUDY PERIOD
2025/26 2026/27 2027/28 2028/29 2029/30

NUMBER OF METERS
Growth Increase % [1] 3.0% 3.0% 3.0% 3.0% 3.0%
Total Water Meters 2,698 2,779 2,862 2,948 3,036 3,127
Total Meter Equivalents 3,250 3,331 3,414 3,500 3,588 3,679

WATER CONSUMPTION
Annual Increase % 1.0% 1.0% 1.0% 1.0% 1.0%
Total Consumption (HCF) [2] 532,717 538,044 543,424 548,858 554,347 559,890 1 - Per input from City staff, it is estimated that there will be 3% growth in the customer base each year. To be conservative, it is estimated that all new customers connecting to the system will be served by a 1" meter. 2 - Based on average billed consumption from 2022/23, 2023/24, and 2024/25. Reflects estimated conservation + some delinquency of 2.5%.

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5.3 Water Rate Derivation

5.3.1 Base Charge Derivation
Table 16 provides the rate derivation for the proposed base charges using the number of meters and AWWA meter equivalents from Table 14 and the annual revenue requirements for each base charge component from Table 13. As shown in Table 13, the base charge is proposed to recover both the Meters & Services and the Customer Service cost categories from the cost allocation (Table 12).

Consequently, the proposed base charge is derived from two components which are combined into a single monthly base charge that increases based on meter size – (1) Meter Equivalent Charge and (2) Customer Service Charge.

1. Meter Equivalent Charge
The Meter Equivalent Charge is calculated by dividing the Meters & Services revenue requirement for the given year by the total number of projected meter equivalents for that year (Table 15). The proposed Meter Equivalent Charge is then multiplied by the corresponding meter equivalent ratio to generate a charge for each meter size. As noted in the previous section, scaling the charges by meter equivalents ensures that each meter size is charged based on their proportional impact on the system and is consistent with the City’s current rate structure.

2. Customer Service Charge
The Customer Service component of the revenue requirement recovers the City’s expenses for serving customers, which are the same for each customer regardless of meter size. Because of this, the Customer Service Charge is proposed not to vary by meter size. To calculate the Customer Service Charge, the Customer Service revenue requirement for the given year is divided by the projected total number of meters for that year (Table 15).

For 2025/26, the proposed Meter Equivalent Charge of $40.84 is multiplied by the corresponding meter ratio, then added to the Customer Service Charge of $2.39 to calculate the total proposed base charge for each meter size. For base residential meters of up to 1”, the proposed 2025/26 base charge is $43.23.

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Table 16: Base Charge Derivation

PROJECTED
2025/26 2026/27 2027/28 2028/29 2029/30

REVENUE REQUIREMENT
Meters & Services $1,632,451 $2,040,576 $2,203,845 $2,314,037 $2,429,727 Customer Service $79,861 $99,827 $107,814 $113,205 $118,864 Total Base Charge Revenue $1,712,312 $2,140,402 $2,311,659 $2,427,242 $2,548,591

METER EQUIVALENT CHARGE
Meters & Service Rev. Req. 7.8% $1,632,451 $2,040,576 $2,203,845 $2,314,037 $2,429,727 Number of Meter Equivalents 3,331 3,414 3,500 3,588 3,679 Meter Equivalent Charge $40.84 $49.81 $52.47 $53.74 $55.04 Meter Equiv. Charge by Size
Meter Size
Meter
Ratio
Up to 1" 1.0 $40.84 $49.81 $52.47 $53.74 $55.04

1.5" 4.0 $163.36 $199.24 $209.88 $214.96 $220.16
2" 6.4 $261.38 $318.78 $335.81 $343.94 $352.26
3" 14.0 $571.76 $697.34 $734.58 $752.36 $770.56
4" 24.0 $980.16 $1,195.44 $1,259.28 $1,289.76 $1,320.96 6" 50.0 $2,042.00 $2,490.50 $2,623.50 $2,687.00 $2,752.00

CUSTOMER SERVICE CHARGE
Customer Service Rev. Req. 7.8% $79,861 $99,827 $107,814 $113,205 $118,864 Number of Meters 2,779 2,862 2,948 3,036 3,127
Cust. Service Charge per Acct. $2.39 $2.91 $3.05 $3.11 $3.17 TOTAL MONTHLY BASE CHARGE [1]
Current
Meter Size Rates
Up to 1" $34.14 $43.23 $52.72 $55.52 $56.85 $58.21

1.5" $133.66 $165.75 $202.15 $212.93 $218.07 $223.33
2" $212.71 $263.77 $321.69 $338.86 $347.05 $355.43
3" $465.09 $574.15 $700.25 $737.63 $755.47 $773.73
4" $801.99 $982.55 $1,198.35 $1,262.33 $1,292.87 $1,324.13 6" $1,655.86 $2,044.39 $2,493.41 $2,626.55 $2,690.11 $2,755.17 1 - Total Monthly Base Charge is the sum of the "Meter Equivalent Charge" by meter size plus the "Customer Service Charge per Account"
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5.3.2 Use Charge Derivation
Table 17 provides the rate derivation for the proposed use charge using the projected annual water consumption from Table 15 and the annual revenue requirements from Table 13. As shown in Table 13, the use charge is proposed to recover the Base + Extra cost category from the cost allocation (Table 12).

Consistent with the current rate structure, the proposed use charge is a uniform rate at which all customers are charged the same rate per unit of water consumed. The proposed use charge for each year is equal to the annual revenue requirement divided by projected annual consumption. For 2025/26, the proposed consumption rate is $3.05 per HCF.

Table 17: Use Charge Derivation

PROJECTED
2025/26 2026/27 2027/28 2028/29 2029/30

REVENUE REQUIREMENT
Base + Extra $1,643,188 $2,053,998 $2,218,341 $2,329,258 $2,445,709

USE CHARGE DERIVATION
Revenue Requirement $1,643,188 $2,053,998 $2,218,341 $2,329,258 $2,445,709 Projected Consumption (HCF) [1] 538,044 543,424 548,858 554,347 559,890 Use Charge per HCF $3.05 $3.78 $4.04 $4.20 $4.37
* 1 HCF = 748 gallons
1 - Based on average consumption over the past three fiscal years, less 2.5% for estimated conservation and delinquency, and escalated by 1.0% each year.

5.4 Proposed Five-Year Rate Plan
The proposed five-year rate plan is summarized in Table 18. All customers are proposed to be charged according to the proposed rate schedule shown. As described in the previous sections of this report, the rates have been calculated in this study to produce rates that will be necessary to recover only the actual cost of the water service per parcel under the proposed water rates. The first rate change is proposed to take effect on March 1, 2026, with subsequent increases each March 1 through 2030. For any additional connections built out in the City, the rates for the water service fees in Table 18 will also apply to them.

City of Waterford Page 28
Water Rate and Fee Study 2025
Table 18: Proposed Monthly Water Rates

PROPOSED
Current 2025/26 2026/27 2027/28 2028/29 2029/30
Effective Date Jul 1, 2021 Mar 1, 2026 Mar 1, 2027 Mar 1, 2028 Mar 1, 2029 Mar 1, 2030

BASE CHARGE
Meter Size
3/4" [1] $34.14 $43.23 $52.72 $55.52 $56.85 $58.21
1" [1] $54.30 $43.23 $52.72 $55.52 $56.85 $58.21

5.5 Bill Impacts

5.5.1 Water Rate Survey
Figure 4 compares the City’s current and proposed single family residential bill at the average level of monthly water consumption (16 HCF) with the corresponding bill for several surrounding agencies.

Both the City’s current 3/4” and 1” bills are included in the chart for comparison purposes because the two categories are proposed to be merged. All single family residential customers in the City are currently billed at the 3/4” rate, however. A number of the agencies surveyed already bill all customers with meters 1” and smaller at the same rates, which the City of Waterford is proposing to implement.

For a 3/4” meter, the current average water bill is $64.86. March 1, 2026, the water bill for that customer would rise to $92.03, an increase of $27.17. The City’s current water rates are in the midrange of those charged by other local agencies and will move to the upper range following the proposed rate adjustment. Similar to the City of Waterford, many other agencies are likely facing financial pressure to raise rates in the coming years. The rates for other agencies which are included in the chart are based on the most recent publicly available data at the time of this report.

City of Waterford Page 29
Water Rate and Fee Study 2025
Figure 4: Single Family Residential Water Bill Survey

5.5.2 Sample Bill Impacts at Various Levels of Water Use As noted previously, the bill impacts for each individual customer will vary due to the updated rate structure, cost of service allocation, and individual water consumption. Water consumption, particularly for single family customers, typically fluctuates throughout the year due to seasonal variations in weather and/or other factors. Hence, a single family customer could face a range of impacts throughout the year. Additionally, some of the proposed overall rate revenue increase will be offset by the anticipated annual growth in the City’s customer base.

Table 19 on the following page shows the impacts of the proposed rates over the next five years for a single family residential customer at various sample levels of water consumption including the typical monthly average consumption across the whole year (16 HCF), average winter consumption (9 HCF), and average summer consumption (24 HCF). For the base charge, each single family residential customer is currently billed at the 3/4” rate and is proposed to be billed at the base residential (up to 1”) rate. Bill impacts, particularly in the first year of the proposed rate plan, will be higher for customers who use more water.

City of Waterford Page 30
Water Rate and Fee Study 2025
Table 19: Sample Residential Monthly Water Bill Impacts Monthly Current PROPOSED
Use (HCF) Bill
Mar 1,
2026
Mar 1,
2027
Mar 1,
2028
Mar 1,
2029
Mar 1,
2030
9 HCF (Winter Bill)
Base Charge - 3/4" $34.14 $43.23 $52.72 $55.52 $56.85 $58.21 Use Charge 9 $17.28 $27.45 $34.02 $36.36 $37.80 $39.33
Monthly Water Bill $51.42 $70.68 $86.74 $91.88 $94.65 $97.54 $ Change $19.26 $16.06 $5.14 $2.77 $2.89
% Change 37.5% 22.7% 5.9% 3.0% 3.1%
16 HCF (Average Bill)
Base Charge - 3/4" $34.14 $43.23 $52.72 $55.52 $56.85 $58.21 Use Charge 16 $30.72 $48.80 $60.48 $64.64 $67.20 $69.92 Monthly Water Bill $64.86 $92.03 $113.20 $120.16 $124.05 $128.13 $ Change $27.17 $21.17 $6.96 $3.89 $4.08
% Change 41.9% 23.0% 6.1% 3.2% 3.3%
24 HCF (Summer Bill)
Base Charge - 3/4" $34.14 $43.23 $52.72 $55.52 $56.85 $58.21 Use Charge 24 $46.08 $73.20 $90.72 $96.96 $100.80 $104.88 Monthly Water Bill $80.22 $116.43 $143.44 $152.48 $157.65 $163.09 $ Change $36.21 $27.01 $9.04 $5.17 $5.44
% Change 45.1% 23.2% 6.3% 3.4% 3.5%
General Business 5a
December 18, 2025
Tina Envia, Finance Manager
City Council Staff Report
Public Hearing and Election
Resolution: Resolution 2025-69, Declaring Results of Special Landowner Election and Directing the Recording of an Amendment to Notice of Special Tax Lien.

Resolution: Resolution 2025-70, Authorizing Annexation No. 2 into Community Facilities District No. 2019-1 (Maintenance Services), Authorizing the Levy of a Special Tax, and Submitting the Levy of Special Tax to Qualified Electors.

Ordinance: First Reading and Introduction of Ordinance 2025-06 Authorizing the Levyof Special Taxes in Certain Annexation Territory Identified as Annexation No. 2 to Community Facilities District No. 2019-1 (Maintenance Services) SUMMARY:

The City has received a request to annex (annexation 2) the following parcels into Community Facilities District (CFD) 2019-1:

1. 080-023-031-000 5.16 acres Finneman Contracting Inc. (Waterstone D)

2. 080-031-031-000 3.60 acres David J. Hendrick, Trustee of the David J. Hendrick Trust under Trust Agreement Dated April 20, 1981 (Waterstone E)

3. 080-049-002-000 .41 acres and 134-017-032-000 .34 acres PropCen Valley LLC, A California Limited Liability Company
This CFD was established in 2019 to fund the ongoing cost of public services such as streets and street tress; street lighting; landscaping in public areas and medians including turf, trees, shrubs and associated irrigation systems.

Pursuant to the Mello-Roos Community Facilities Act of 1982, this process includes a public hearing, a special landowner election, and adoption of an ordinance to authorize the levy of special taxes on the annexed properties.

ANALYSIS:

CFD 2019-1 was established to ensure that new developments pay their fair share for the public services they require. Annexation No. 2 includes APN 080-023-031-000 (5.16 acres), 080-031-031-000 (3.60 acres), 080-049-002-000 (.41 acres), and 134-017-032-000 (.34 acres) and is being proposed by the property owner/developer in conjunction with their development application. A Resolution of the City Council of the City of Waterford Declaring Its Intention to Annex Territory to the City of Waterford Community Facilities District No. 2019-1 (Maintenance Services) and Adopting a Map of the Area Proposed to be Annexed thereto (Annexation No. 2 to CFD 2019-1) was passed on November 6, 2025.

In accordance with the California Government Code, a public hearing is required to receive public input, followed by a special election for the landowner(s). If approved, the annexation will allow for the levy of special taxes on the new properties within Annexation No. 2.

The following items will be brought before you and acted upon:
• Public Hearing and Election:

The public hearing provides an opportunity for the City Council to hear comments or protests regarding the proposed annexation. As fewer than 12 registered voters reside within the proposed annexation area, a landowner election will be conducted. The City Clerk will canvass and announce the results.
• Resolution Declaring Election Results:

Resolution 2025-XX declares the outcome of the special election. A two-thirds vote in favor is required for approval.
• Resolution Approving Annexation:

Resolution 2025-XX formally annexes the property into CFD 2019-1, contingent upon a successful election result. (CFD 2019-1 Annexation 2)
• Ordinance Authorizing Special Tax Levy:

Ordinance 2025-XX, if introduced and ultimately adopted, authorizes the levy of the special tax on the newly annexed territory. This ordinance will return at the next regular City Council meeting for a second reading and adoption.

FISCAL IMPACT:

The District’s intention is to pay in whole or in part for all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the CFD and the areas adjacent to or in the vicinity of such areas. The services shall include: the maintenance of: (i) streets and street tress; (ii) street lighting; (iii) landscaping in public areas and medians including turf, trees, shrubs and associated irrigation systems; as well as the provision of other public services authorized to be funded under Section 53313(d) or (e) of the California Government Code. The base rate per parcel on creation of the original District was $210.12 per single family detached property. That rate has an annual escalation factor of 3%.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

If the City does not wish to authorize the intention to establish the district and approve the vote then the full maintenance and infrastructure costs of the area involved would be the responsibility of the City’s General Fund rather than the individual property owners.

ATTACHMENTS:

1. Exhibit A – Map of Annexation No. 2 to CFD 2019-1

2. Resolution No. 2025-69 – Declaring Election Results

3. Resolution No. 2025-70 – Approving Annexation No. 1 to CFD 2019-1

4. Ordinance No. 2025-06 – Authorizing Levy of Special Tax

5. Notice of Public Hearing

RESOLUTION 2025-69

WATERFORD CITY COUNCIL
RESOLUTION NO. 2025-69

A RESOLUTION OF THE CITY COUNCIL OF CITY OF WATERFORD, DECLARING RESULTS

OF A SPECIAL LANDOWNER ELECTION AND DIRECTING THE RECORDING OF AN

AMENDMENT TO NOTICE OF SPECIAL TAX LIEN

NOW, THEREFORE BE IT RESOLVED,

1. The foregoing recitals are true and correct.

2. The issue presented at the special election was the levy of a special tax within the territory annexed to the District, to be levied in accordance with the formula heretofore approved by this City Council, all as described in Resolution No. 2025-59, entitled “A Resolution of the City Council of City of Waterford, Declaring its Intention to Annex Territory to Community Facilities District No. 2019-1 (Maintenance Services) Adopting a Map of the Area Proposed to be Annexed Thereto (Annexation No. 2)” adopted by this City Council on November 6, 2025.

3. Pursuant to the Canvass on file with the Clerk, the issue presented at the special election was approved by the landowners of the territory annexed to the District by more than two-thirds (2/3) of the votes cast at the special election.

4. Pursuant to the voter approval, the annexed territory is hereby declared to be fully annexed to and part of the District and this City Council may levy special taxes therein as heretofore provided in these proceedings.

5. It is hereby found that all prior proceedings and actions taken by this City Council with respect to the District and the territory annexed thereto were valid and in conformity with the Act.

6. Within 15 days of the date of adoption hereof, the Clerk shall execute and cause to be recorded in the office of the County Recorder of the County of Stanislaus, an Amendment to Notice of Special Tax Lien, as required by Section 3117.5 of the California Streets and Highways Code.

7. This Resolution shall take effect upon its adoption.

The foregoing Resolution was passed and adopted by the City Council of the City of Waterford at a regular meeting thereof held on the 18th day of December 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF WATERFORD

CHARLIE GOEKEN
Mayor
ATTEST: APPROVED AS TO FORM:

PATRICIA KRAUSE CORBETT J. BROWNING
City Clerk City Attorney

EXHIBIT A

CITY OF WATERFORD
Community Facilities District No. 2019-1 (Maintenance Services) Annexation No. 2

CANVASS AND STATEMENT OF RESULT

OF ELECTION
I hereby certify that on December 18, 2025, I canvassed the returns of the election held on December 18, 2025, for the City of Waterford, Community Facilities District No. 2019-1 (Maintenance Services), Annexation No. 2 and the total number of ballots cast in such election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes
Votes
Cast
Votes
YES
Votes
NO
City of Waterford, Community Facilities
District No. 2019-1 (Maintenance Services),
Annexation No. 2 Special Tax Election,
December 18, 2025 __ ___ _____ _____ _____
BALLOT MEASURE: Shall the City of Waterford be authorized to annually levy a special tax solely on lands within the Community Facilities District No. 2019-1 (Maintenance Services) Annexation No. 2 in accordance with the Rate and Method of Apportionment of Special Tax contained in the Resolution Authorizing Annexation No. 2 into Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council of the District on December 18, 2025 and attached to this ballot as Attachment “A”, commencing in the District’s fiscal year 2025/26, to pay the costs of construction, operation, maintenance and servicing of water quality features and appurtenant facilities, the costs of the District in administering the CFD and County charges, until no longer required to pay for the services or until otherwise terminated by the voters or by the City of Waterford, or until ended by the voters, and shall the annual appropriations limit of the CFD be established in the amount of $1,000,000.00?
Yes: __________
No: __________
By execution in the space provided below, you also indicate your waiver of (i) the time limit pertaining to the conduct of the election, (ii) any requirement for analysis and arguments with respect to the ballot measure, and (iii) any irregularity in the proceedings that may be claimed as a result of this vote or the application of such waivers.

Assessor’s Parcel Nos.
080-023-031-000
1 Parcel
Acreage: 5.16 Gross Acres
Number of Votes: 6
Property Owner:

Finneman Contracting Inc, a California
Corporation
By: ___________________________

Title: _______________________
Mailing Address:
424 Tim Bell Road
Waterford, CA 95386-9428
By execution in the space provided below, you also indicate your waiver of (i) the time limit pertaining to the conduct of the election, (ii) any requirement for analysis and arguments with respect to the ballot measure, and (iii) any irregularity in the proceedings that may be claimed as a result of this vote or the application of such waivers.

Assessor’s Parcel Nos.
080-031-031-000
1 Parcel
Acreage: 3.60 Gross Acres
Number of Votes: 4
Property Owner:

David J. Hendrick, Trustee of the David J.

Hendrick Trust under Trust Agreement Dated
April 20, 1981
By: ___________________________

Title: _______________________
Mailing Address:
13424 Bentley Street
Waterford, CA 95386-9449
By execution in the space provided below, you also indicate your waiver of (i) the time limit pertaining to the conduct of the election, (ii) any requirement for analysis and arguments with respect to the ballot measure, and (iii) any irregularity in the proceedings that may be claimed as a result of this vote or the application of such waivers.

Assessor’s Parcel Nos.
080-049-002-000
134-017-032-000
2 Parcels
Acreage: .41 and .34 Gross Acres
Number of Votes: 2
Property Owner:

PropCenValley LLC, A California Limited
Liability Company
By: ___________________________

Title: _______________________
Mailing Address:

Managing Member: Elias Cortez
1404 Del Mar Avenue
Modesto, CA 95350
Attachment “A”

CITY OF WATERFORD
Community Facilities District No. 2019-1 (Maintenance Services) Annexation No. 2

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on December 18, 2025.

By:

PATRICIA KRAUSE
City Clerk
RESOLUTION 2025-70

WATERFORD CITY COUNCIL
RESOLUTION NO. 2025-70

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD, AUTHORIZING ANNEXATION NO. 2 INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES), AUTHORIZING THE LEVY OF A SPECIAL TAX, AND SUBMITTING THE LEVY OF SPECIAL TAX TO QUALIFIED ELECTORS.

CITY OF WATERFORD
Community Facilities District No. 2019-1 (Maintenance Services) Annexation No. 2
WHEREAS, under the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), the City Council of the City of Waterford (the “City Council”) previously conducted proceedings to establish the City of Waterford Community Facilities District No. 2019-1 (Maintenance Services) (the “District”), and
WHEREAS, on November 6, 2025, the adopted Resolution No. 2025-59 entitled “A Resolution of the City Council of City of Waterford, Declaring its Intention to Annex Territory to Community Facilities District No. 2019-1 (Maintenance Services) Adopting a Map of the Area Proposed to be Annexed Thereto (Annexation No. 2)” (the “Resolution of Intention”), stating its intention to annex territory into the District, pursuant to the Act; and WHEREAS, a copy of the Resolution of Intention, incorporating a description and map of the proposed boundaries of the territory to be annexed to the District and the Rate and Method of Apportionment of the Special Tax to be levied within the District, including Attachment A showing the special tax rate for Annexation No. 2, to pay for the services is on file with the Clerk of the City Council (the “Clerk”) and the provisions thereof are fully incorporated herein by this reference as if fully set forth herein; and
WHEREAS, on the date hereof, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed annexation of territory to the District; and
WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the annexation of territory to the District and the levy of special taxes within the area proposed to be annexed were heard and a full and fair hearing was held; and WHEREAS, written protests with respect to the formation of the District, the furnishing of specified types of services and the Rate and Method of Apportionment of the Special Taxes have not been filed with the Clerk by fifty percent (50%) or more of the registered voters residing within the territory proposed to be annexed into the District or property owners of one-half (1/2) or more of the area of land proposed to be annexed into the District and not exempt from the proposed special taxes; and
WHEREAS, the special tax to be levied in the territory proposed to be annexed into the District has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the annexation territory of the District or the owners of one-half (1/2) or more of the area of land within the annexation territory of the District and not exempt from the special taxes.

WHEREAS, Annexation Map No. 2 of the District has been filed with the County Recorder of the County of Stanislaus, which map shows the territory to be annexed in these proceedings, and a copy of the map is on file with the Clerk.

NOW, THEREFORE BE IT RESOLVED,

1. The foregoing recitals are true and correct.

2. All prior proceedings taken by this City Council with respect to the District and the proposed second annexation of territory thereto have been duly considered and are hereby determined to be valid and in conformity with the Act and the District has been validly established pursuant to the Act.

3. The boundaries of the territory to be annexed to the District, as set forth in the map entitled “Map of Proposed Boundaries of City of Waterford Community Facilities District No. 2019-1 (Maintenance Services) Annexation No. 2, on file with the Clerk and heretofore recorded in the Stanislaus County Recorder’s Office on November 7, 2025, in Volume 7 at Page 74 of Maps of Assessment and Community Facilities Districts, are hereby finally approved, are incorporated herein by this reference, and shall be included within the boundaries of the District, and said territory is hereby ordered annexed to the District, subject to voter approval of the levy of the special taxes therein as hereinafter provided.

4. The provisions of the Resolution of Intention are by this reference incorporated herein as if fully set forth herein.

5. Pursuant to the provisions of the Act, the proposition of the levy of the special tax within the territory to be annexed to the District shall be submitted to the qualified electors of the area to be annexed to the District at an election called therefore as hereinafter provided.

6. This City Council hereby finds that fewer than 12 persons have been registered to vote within the territory proposed to be annexed to the District for each of the 90 days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these annexation proceedings. Accordingly, and pursuant to Section 53326 of the Act, this City Council finds that the qualified electors for purposes of the annexation election are the landowners within the territory proposed to be annexed to the District and that the vote shall be by said landowners, each having one vote for each acre or portion thereof such landowner owns in the territory proposed to be annexed to the District.

7. This City Council hereby calls a special election to consider the measure described in Section 5 above, which election shall be held in the meeting room of the City Council immediately following adoption of this Resolution. The Clerk is hereby designated as the official to conduct said election. It is hereby acknowledged that the Clerk has on file the Resolution of Intention, a certified map of the proposed boundaries of the territory to be annexed to the District, and a sufficient description to allow the Clerk to determine the boundaries of the territory to be annexed to the District.

8. The voted ballots shall be returned to the Clerk no later than immediately following the adoption of this Resolution; and when the qualified electors have voted, the election shall be closed.

9. Pursuant to Section 53327 of the Act, the election shall be conducted by handdelivered ballot pursuant to the California Elections Code.

10. This City Council acknowledges that the Clerk has caused to be delivered to the qualified electors of the District a ballot in the form set forth in Exhibit “A” hereto. The ballot indicated the number of votes to be voted by each landowner.

11. The ballot was accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot was enclosed with the ballot, had the return postage prepaid, and contained the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature, and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing Board.

12. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

13. The Clerk shall accept the ballots of the qualified electors in the City Council meeting room upon and prior to the adoption of this Resolution, whether the ballot is personally delivered or is received by mail. The Clerk shall have ballots available which may be marked at said location on the election day by the qualified electors.

14. This City Council hereby further finds that the provision of Section 53326 of the Act requiring a minimum of 90 days following the adoption of this Resolution to elapse before said special election is for the protection of the qualified electors of the territory to be annexed to the District. The ballots to be executed by the qualified electors of the area to be annexed to the District contain a waiver of any time limit pertaining to the conduct of the election and a waiver of any requirement for ballot measure analysis and arguments in connection with the election.

Accordingly, this City Council finds and determines that, to the extent that the qualified elector submits its ballot, the qualified elector will have been fully apprised of and have agreed to the shortened time for the election and waiver of ballot measure analysis and arguments and will have thereby been fully protected in these proceedings. This City Council also finds and determines that the Clerk has concurred in the shortened time for the election.

15. This Resolution shall take effect upon its adoption The foregoing Resolution was passed and adopted by the City Council of the City of Waterford at a regular meeting thereof held on the 18th day of December 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF WATERFORD

CHARLIE GOEKEN
Mayor
ATTEST: APPROVED AS TO FORM:

PATRICIA KRAUSE CORBETT J. BROWNING
City Clerk City Attorney

EXHIBIT A

CITY OF WATERFORD
Community Facilities District No. 2019-1 (Maintenance Services) Annexation No. 2

OFFICIAL BALLOT

SPECIAL TAX ELECTION
I hereby certify that on December 18, 2025, I canvassed the returns of the election held on December 18, 2025, for the City of Waterford, Community Facilities District No. 2019-1 (Maintenance Services), Annexation No. 2 and the total number of ballots cast in such election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Assessor’s Parcel Nos.
080-023-031-000
1 Parcel
Acreage: 5.16 Gross Acres
Number of Votes: 6
Property Owner:

Finneman Contracting Inc, a California
Corporation
By: ___________________________

Assessor’s Parcel Nos.
080-031-031-000
1 Parcel
Acreage: 3.60 Gross Acres
Number of Votes: 4
Property Owner:

David J. Hendrick, Trustee of the David J.

Hendrick Trust under Trust Agreement Dated
April 20, 1981
By: ___________________________

Assessor’s Parcel Nos.
080-049-002-000
134-017-032-000
2 Parcels
Acreage: .41 and .34 Gross Acres
Number of Votes: 2
Property Owner:

PropCenValley LLC, A California Limited
Liability Company
By: ___________________________

Title: _______________________
Mailing Address:

Managing Member: Elias Cortez
1404 Del Mar Avenue
Modesto, CA 95350
Attachment “A”

CITY OF WATERFORD
Community Facilities District No. 2019-1 (Maintenance Services) Annexation No. 2

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax shall be levied and collected in City of Waterford Community Facilities District No. 2019-1 (Maintenance Services) (the “District”) each Fiscal Year, in an amount determined by the application of the procedures described below. All the Taxable Property (as defined below) in the District, unless exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

I. DEFINITIONS
The terms used herein shall have the following meanings:
“Accessory Dwelling Unit” means a secondary residential unit of limited size (e.g., granny cottage, second unit) that shares a Parcel with a Unit of Single Family Detached Property. "Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event the Assessor’s Parcel Map or Assessor’s Data shows no acreage, the Acreage for any Assessor’s parcel shall be determined by the CFD Administrator based upon the applicable final map, parcel map, condominium plan, or other recorded County parcel map or calculated using available spatial data and GIS. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter

2.5, Division 2 of Title 5 of the Government Act of the State of California. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of the District: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in the District. Administrative Expenses shall also include costs related to the formation of the District and of annexing territory to the District as well as any amounts advanced by the City for any administrative purposes of the District and an allocable share of the salaries of City staff and an allocable portion of City overhead costs relating to the foregoing, or costs of the City in any way related to the establishment or administration of the District.
“Affordable Housing Property” means, in any Fiscal Year, all or a portion of any Assessor’s Parcel within the boundaries of the District that is subject to a deed restriction, resale restriction, or regulatory agreement recorded in favor of the City that restricts Unit rents or prices chargeable to lower income households.
“Affordable Multi-Family Property” means Multi-Family Property that is also Affordable Housing
Property.
“Affordable Single Family Property” means Single Family Property that is also Affordable Housing Property.
“Annual Services Costs” means the amounts required to fund services authorized to be funded by the District.
“Annual Special Tax Requirement” means that amount with respect to the District determined by the Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, (3) any amount required to establish or replenish any reserve or replacement fund established in connection with the District, and (4) reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. “Assessor’s Data” means Acreage or other Parcel information contained in the records of the County Assessor.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessment’s Parcel by the County for purposes of identification. “Boundary Map” means that map recorded with the County recorder’s office on April 29, 2019 in Book 5 at Page 84 as Document Number 2019-0025772-00. “City” means the City of Waterford, County of Stanislaus. “Council” means the City Council of the City, acting as the legislative body of the District. “County” means the County of Stanislaus, California.
“Developed Property” means, in any Fiscal Year, all Taxable Property in the District for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year, but not prior to June 1, 2019.
“District” means the City of Waterford Community Facilities District No. 2019-1 (Maintenance Services).
“District Administrator” means an official of the City, or designee or agent or consultant, responsible for administering the Special Tax in accordance with this Rate and Method of Apportionment.
“Exempt Property” means all property located within the boundaries of the District which is exempt from the Special Tax pursuant to Section V below. “Fiscal Year” means the period from July 1
st of any calendar year through June 30th of
the following
calendar year.
“Maximum Special Tax Rate” means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section III. “Multi-Family Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit has been issued for construction of a residential structure with five or more Units that share a single Assessor’s Parcel Number, are offered for rent to the general public, and cannot be purchased by individual homebuyers. “Non-Residential Property” means all property that is not used for people to live in and does not include Public Property.
“Proportionately” means, in any Fiscal Year, that the ratio of the actual Special Tax to the Maximum Special Tax Rate is equal for all Assessor’s Parcels authorized to be levied in that Fiscal Year.
“Public Property” means any property within the boundaries of the District owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public or private road right-of-way making the property unusable for any other purpose has been granted to the federal government, the State of California, the County, the City, or any local government or other public agency.
“Single Family Attached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit was issued for construction of a residential structure consisting of two or more Units that share common walls, have separate Assessor’s Parcel Numbers assigned to them (except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), and may be purchased by individual homebuyers (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125.
“Single Family Detached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a building permit was issued for construction of a Unit that does not share a common wall with another Unit.
“Special Tax” means the amount levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “Tax Escalation Factor” means a factor of 3 percent that will be applied annually after Fiscal Year 2019/20 to increase the Maximum Special Tax Rates shown in Section III. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All of the Taxable Property within the District at the time of its formation is within a Tax Zone as specified on the District Boundary Map. Additional Tax Zones may be created when property is annexed to the District, and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to the District shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation. “Taxable Property” means all Parcels within the boundary of the District that are not Exempt Property, exempt from the Special Tax pursuant to the Act or Section V below. “Unit” means an individual single family detached or attached home, townhome, condominium, apartment, or other residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure. An Accessory Dwelling Unit that shares a Parcel with a Unit of Single Family Detached Property shall not be considered a separate Unit for purposes of calculating the Special Tax.

II. DETERMINATION OF TAXABLE PARCELS
On or about July 1 of each Fiscal Year, the District Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within the District. If any Assessor’s Parcel Numbers are no longer valid from the previous Fiscal Year, the District Administrator shall determine the new Assessor’s Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new Assessor’s Parcels pursuant to Section III. The District Administrator shall also determine:
(i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property.
(iii) the number of Units each Parcel contains; and (iv) the Annual Special Tax Requirement for the Fiscal Year.

III. ANNUAL SPECIAL TAX - METHOD OF APPORTIONMENT All Taxable Property shall be subject to a Special Tax defined as follows.

The Special Tax shall be levied each Fiscal Year by the District Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel of Developed Property within the District by the method shown below.

First: Determine the Annual Special Tax Requirement.

Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax Rate described in the tables below to satisfy the Annual Special Tax Requirement.

TABLE 1
SPECIAL TAX RATES – TAX ZONE NO.
1 FISCAL YEAR 2019/20*
Property Type Special Tax
Rate
Per
Single Family Detached Property $210.12 Unit
*On each July 1, commencing on July 1, 2019, the
Maximum Special Tax Rate for each Tax Zone shall be
increased by 3%, the Tax Escalation Factor.

IV. A different Maximum Special Tax Rate may be identified in Tax Zones added to the District because of future annexations. In some instances, an Assessor’s Parcel of Developed Property may contain more than one type of property. The Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Units located on that Assessor’s Parcel.

V. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS The Special Tax may not be prepaid.

VI. EXEMPTIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Taxes shall be levied on Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.

VII. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax.

VIII. MANNER AND DURATION OF SPECIAL TAX The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of the District, and may collect delinquent Special Taxes through foreclosure or other available methods. A Special Tax shall continue to be levied and collected within the District, as needed to fund the Annual Special Tax Requirement, in perpetuity.

IX. APPEAL OF SPECIAL TAX LEVY Any property owner may file a written appeal of the Special Tax with the District Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The District Administrator shall review the appeal, meet with the appellant if the District Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the District Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the District Administrator or subsequent decision by the City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Taxes, but an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on December 18, 2025.

By:

PATRICIA KRAUSE
City Clerk
ORDINANCE 2025-06

WATERFORD CITY COUNCIL
ORDINANCE NO. 2025-06

AN ORDINANCE OF THE CITY COUNCIL OF CITY OF WATERFORD, AUTHORIZING THE

LEVY OF SPECIAL TAXES IN CERTAIN ANNEXATION TERRITORY IDENTIFIED AS ANNEXATION NO. 2 TO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE

SERVICES)

CITY OF WATERFORD
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE

SERVICES)
ANNEXATION NO. 2
WHEREAS, the City Council of the City of Waterford (the “City Council”) has conducted proceedings pursuant to the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”) to establish the City of Waterford Community Facilities District No. 2019-1 (Maintenance Services) (the “District”); and WHEREAS, the rate and method of apportionment of special tax for the District showing the special tax rate for Annexation No. 2 is set forth in Exhibit B to the City Council Resolution entitled “A Resolution of the City Council of City of Waterford, Declaring its Intention to Annex Territory to Community Facilities District No. 2019-1 (Maintenance Services) Adopting a Map of the Area Proposed to be Annexed Thereto (Annexation No. 2)” (the “Resolution of Intention to Annex Territory”), which was adopted on November 6th, 2025; and WHEREAS, the City Council has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”), the City Council, on December 18, 2025, adopted a Resolution entitled “A Resolution of the City Council of the City of Waterford Declaring Results of a Special Annexation Landowner Election and Directing the Recording of an Amendment to Notice of Special Tax Lien” for Annexation No. 2 into the District.

NOW, THEREFORE BE IT RESOLVED,

1. The foregoing recitals are true and correct.

2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within the District, including the Annexation Territory, pursuant to the Act, at the rate and in accordance with the rate and method of apportionment of special tax set forth in the Resolution of Intention to Annex Territory, which rate and method is by this reference incorporated herein. The special tax has previously been levied in the original territory of the District beginning in fiscal year 2019/20 pursuant to Ordinance No. 2019-04 passed and adopted by the City Council on July 18, 2019, and the special tax is hereby levied commencing in Fiscal Year 2025/26 in the District, including the Annexation Territory identified as Annexation No. 2 and in each fiscal year thereafter to pay for the authorized services of the District and the costs of administering the District.

3. The City Council or designee or employee or consultant of the City of Waterford is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, including the ORDINANCE 2025-06
Annexation Territory, in the manner and as provided in the rate and method of apportionment of special tax.

4. Exemptions from the levy of the special tax shall be as provided in the rate and method of apportionment of special tax showing the special tax rate for Annexation No. 2 and the applicable provisions of the Act. In no event shall the special tax be levied on any parcel within the District more than the maximum special tax specified in the rate and method of apportionment of special tax.

5. All the collections of the special tax shall be used as provided in the Act, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City of Waterford in administering the District, and the costs of collecting and administering the special tax.

6. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The City Manager of the City of Waterford is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Stanislaus in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of Stanislaus for Fiscal Year 2025/26 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated voters or by the City of Waterford.

7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, including the Annexation Territory, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District, including the Annexation Territory, shall not be affected.

8. The Mayor of the City Council shall sign this Ordinance and the Clerk shall cause the same to be published immediately after its passage at least once in a newspaper of general circulation for the City of Waterford.

9. This Ordinance shall take effect 30 days from the date of final passage.

INTRODUCED and first read on the 18th day of December, 2025; and PASSED AND ADOPTED this 15th day of January 15th, 2026.

CITY OF WATERFORD

CHARLIE GOEKEN
Mayor
ORDINANCE 2025-06
ATTEST: APPROVED AS TO FORM:

PATRICIA KRAUSE CORBETT J. BROWNING
City Clerk City Attorney

NOTICE OF HEARING ON RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WATERFORD DECLARING INTENTION TO ANNEX TERRITORY TO CITY OF WATERFORD COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 2 TO CFD 2019-1)
NOTICE IS HEREBY GIVEN that on November 6, 2025, the City Council of the City of Waterford (“City Council) adopted Resolution No. 2025-59, declaring the intention of the City Council to annex territory to the City of Waterford Community Facilities District No. 2019-1 (Maintenance Services), County of Stanislaus, State of California (the “District”), and fixing the time and place of a public hearing thereon for 6:30 p.m., or as soon thereafter as the matter may be heard, on December 18, 2025. The public hearing will be conducted at the Council Chambers, 101 E. Street, Waterford, California. The virtual location will be identified on the agenda. During the public hearing, the City Council will hear the testimony of all interested persons for or against the annexation of said territory to the District or the levying of special taxes within such territory to pay the costs of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property.

Resolution No. 2025-59 provides in summary as follows:

1. The City Council declared its intention to conduct proceedings for the annexation to the District of the territory described in Exhibit “A” to Resolution No. 2025-59. The City Council determined that the public convenience and necessity require that such territory be annexed to the District.

2. The territory which is included in the District is described on the map of the District recorded on April 29, 2019, at 8:33 a.m. as Document No. 2019-0025772-00 in Book 5 of Assessment and Community Facilities Districts at Page 84 in the official records of the Office of the County Recorder of the County of Stanislaus, State of California. The territory proposed to be annexed to the District is described on the map thereof entitled “Annexation Map No. 2 of City of Waterford Community Facilities District No. 2019-1 (Maintenance Services), City of Waterford, County of Stanislaus, State of California,” which is on file with the City Clerk of the City of Waterford.

3. The types of public services to be provided within the District are as follows:

The services to be provided and financed by the District include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the CFD and areas adjacent to or in the vicinity of such areas. More specifically, the services shall include, but not be limited to, the maintenance of: (i) streets and street tress; (ii) street lighting; (iii) landscaping in public areas and medians including turf, trees, shrubs and associated irrigation systems; as well as the provision of other public services authorized to be funded under Section 53313(d) or (e) of the California Government Code. The CFD may fund any of the following related to the services described in the preceding sentence: obtaining, constructing, furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of services. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. The District -2-
shall also finance costs associated with the determination of the amount of and the levy and collection of special taxes which are levied to provide such services and costs otherwise incurred in order to carry out its authorized purposes. The services described above shall be provided, as needed, throughout the District and the territory proposed to be annexed thereto for the benefit of all owners of property and residents of the District and the territory proposed to be annexed thereto. All owners of taxable parcels of property within the District and the territory proposed to be annexed thereto shall pay special taxes to finance the annual cost of providing such services.

The services to be provided and financed by the District, are necessary to meet increased demands placed upon the City as a result of development occurring within the District and the territory to be annexed thereto.

4. Special taxes sufficient to pay the costs of the services described in Section 3 above and the annual administrative expenses of the City and the District in determining, apportioning, levying and collecting such special taxes, shall be annually levied within the territory proposed to be annexed to the District. The special taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided however, that the District may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. The rates and method of apportionment of said special taxes shall be as set forth in Exhibit “C” to Resolution No. 2025-59.

The maximum amounts of special taxes which may be annually levied are as follows:

DETERMINATION OF TAXABLE PARCELS
On or about July 1 of each Fiscal Year, the District Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within the District. If any Assessor’s Parcel Numbers are no longer valid from the previous Fiscal Year, the District Administrator shall determine the new Assessor’s Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new Assessor’s Parcels pursuant to Section III. The District Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property; (iii) the number of Units each Parcel contains; and (iv) the Annual Special Tax Requirement for the Fiscal Year.

SPECIAL TAX - METHOD OF APPORTIONMENT
All Taxable Property shall be subject to a Special Tax defined as follows.

First: Determine the Annual Special Tax Requirement.

Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax Rate described in the tables below to satisfy the Annual Special Tax Requirement.
-3-
TABLE 1
SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2019/20*
Property Type Special Tax
Rate
Per
Single Family Detached Property $210.12 Unit
*On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone shall be increased by 3%, the Tax Escalation Factor.

FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS
The Special Tax may not be prepaid.

EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Taxes shall be levied on Public Property, except as otherwise provided.

Additionally, Welfare Exempt Property, shall be reimbursed for Special Tax levied and paid. A property owner must provide documentation of the exemption within one calendar year after having paid the Special Taxes for which an exemption has been granted. A refund of the amount of Special Taxes paid for the Fiscal Year the exemption has been granted will be provided to the owner of Welfare Exempt Property who was granted the exemption.

INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.

Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax.

MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of the District, and may collect delinquent Special Taxes through foreclosure or other available methods.

A Special Tax shall continue to be levied and collected within the District, as needed to fund the Annual Special Tax Requirement, in perpetuity.

APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the District Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made.
-4-
The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The District Administrator shall review the appeal, meet with the appellant if the District Administrator deems necessary, and advise the appellant of its determination.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

5. A public hearing on the proposed annexation of said territory to the District shall be held at 6:30 p.m. on December 18, 2025, in the City of Waterford, City Council, 101 E.

Street, Waterford, California.

6. The City Clerk shall publish a notice of the time and place of said hearing and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and landowner within the territory proposed to be annexed to the District. Said notice shall be published at least seven (7) days and mailed at least 15 days before the date of the hearing.

7. The voting procedures to be followed in conducting the election on the proposition with respect to the levy of special taxes within the territory proposed to be annexed to the District to pay the costs of services to be financed by the District shall be as follows:
(a) If at the time of the close of the public or protest hearing at least 12 persons are registered to vote within the territory proposed to be annexed to the District, the election shall be conducted by the City Clerk, and shall be held on a date selected by the City Council, and the ballots for the election shall be distributed to the qualified electors of the territory proposed to be annexed to the District by mail with return postage prepaid and the election shall be conducted as a mail ballot election. (b) If at the time of the close of the protest hearing, and for at least the preceding 90 days, less than 12 persons have been registered to vote within the territory proposed to be annexed to the District the vote is therefore to be by the landowners of that territory, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns, and the election shall be conducted by the City Clerk as follows:
(1) The election shall be held on the earliest date following the conclusion of the protest hearing upon which it can be held which may be selected by the City Council, or such earlier date as the owners of land within the territory proposed to be annexed to the District and the City Clerk agree and concur is acceptable.
(2) The election may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the territory proposed to be annexed to the District waive the time limits for conducting the election by unanimous written -5-
consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors.
(3) Ballots for the election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (4) The City Clerk shall mail to each qualified elector an official ballot, and shall also mail to all such qualified electors other required election documents, including a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots. (5) The information-to-voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5:00 o’clock p.m. on the date of the election.
(6) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the election, and shall file a statement with the City Council at its next regular meeting regarding the results of such canvass and the election.

Resolution No. 2025-59 contains other provisions which are not summarized above. A copy of Resolution No. 2025-59 may be reviewed or obtained at the office of the City Clerk of the City of Waterford located at 101 E. Street, Waterford, California or by emailing the City Clerk at [email protected]
NOTICE IS FURTHER GIVEN that at the time and place of said hearing, all persons interested for or against the annexation of said territory to the District or the levying of special taxes within such territory to pay the costs of providing certain services within the territory proposed to be annexed to the District will be heard. At the hearing, protests against the proposals described in Resolution No. 2025-59 may be made by any interested person. Any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularities or defects to which objection is made. All written protests shall be filed with the City Clerk prior to the time fixed for the hearing. The City Council may waive any irregularities in the form or content of any written protests and at the hearing may correct minor defects in the proceedings. Written protests may be withdrawn in writing at any time before the conclusion of the hearing.

If the owners of one-half or more of the area of land in the territory included in the existing district, or if the owners of one-half or more of the area of land in the territory proposed to be annexed to the District file written protests against the proposed annexation of such territory to the District, and protests are not withdrawn so as to reduce the protest to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of decision of the City Council on the issues discussed at the hearing. -6-
The hearing may be continued from time to time, but shall be completed within 30 days. At the conclusion of the hearing, the City Council may abandon the proceedings or may, after passing upon all protests, submit the question of levying the special tax within the area proposed to be annexed to the District to the qualified electors of the area proposed to be annexed.

DATED: ______________________
___
City Clerk
General Business 6a
December 18, 2025
Michael Pitcock, City Manager
City Council Staff Report
Resolution: Resolution 2025-71, Adopting a Groundwater use Management Program in the Modesto Groundwater Subbasin
SUMMARY:

The Council is being asked to adopt the Groundwater Use Management Program (GWUMP) developed for the Modesto Groundwater Subbasin authorize its implementation. Adoption of the GWUMP fulfills commitments made in prior Council actions and advances compliance with the Sustainable Groundwater Management Act (SGMA).

ANALYSIS:

On February 16, 2017, the Stanislaus and Tuolumne Rivers Groundwater Basin Association (STRGBA) Groundwater Sustainability Agency (GSA) was formed. Member agencies include the City of Modesto, Modesto Irrigation District, City of Oakdale, Oakdale Irrigation District, City of Riverbank, City of Waterford, and Stanislaus County. The GSA collaboratively manages groundwater in the Modesto Subbasin pursuant to SGMA requirements.

The STRGBA GSA partnered with the County of Tuolumne GSA to develop a single, coordinated Groundwater Sustainability Plan (GSP) for the Modesto Subbasin. The final GSP was submitted to the Department of Water Resources (DWR) on January 31, 2022. Following DWR’s Incomplete Determination, the GSAs prepared a 2024 GSP Amendment, which DWR approved on February 27, 2025 but added the need to revise the GSP to include a reasonable means to arrest groundwater level declines and stop the overdraft that is continuing to occur in the Subbasin. Specifically, the GSAs should describe feasible, effective proposed projects and management actions that are commensurate with the level of understanding of groundwater conditions in the Subbasin and provide sufficient details for DWR staff to be able to clearly evaluate how the Plan’s projects and management actions will ensure achieving the sustainability goal in the Subbasin. In responding to this Corrective Action, in the Revised July 2024 GSP, the Stanislaus & Tuolumne Rivers Groundwater Basin Association (STRGBA) GSA and the County of Tuolumne GSA (Tuolumne GSA) committed to preparing management actions consisting of a Pumping Management Framework (including a groundwater allocation and pumping management program, groundwater extraction and surface water reporting program, groundwater extraction fee and groundwater pumping credit market and trading program), Demand Reduction Strategies (consisting of voluntary conservation and/or land use fallowing and conservation practices), and a Dry Well Mitigation Program. In response, this Groundwater Use Management Program (GWUMP or Program) was prepared, incorporating a pumping management framework and demand reduction strategies.

The City previously recognized the need for both projects and demand management actions to achieve groundwater sustainability by 2042. On June 20, 2024, the City adopted a resolution committing to develop and implement demand management actions by 2026–2027. This commitment was incorporated into the 2024 Amended GSP and approved by DWR.

The STRGBA GSA has developed the GWUMP through collaboration among member agencies and stakeholder input received during three public workshops. The GWUMP establishes a framework to allocate the sustainable yield of the Modesto Subbasin among management areas. The plan also outlines tools, adaptive measures, and an implementation schedule that management area stewards may refine as conditions evolve.

The GWUMP acknowledges potential uncertainties—such as hydrologic variability, precipitation, snowpack, and water supply—and identifies demand-management actions to ensure the subbasin remains on track to achieve SGMA sustainability goals. The plan is intended to adapt to improving or worsening groundwater conditions.

Each GSA partner is being asked to adopt the attached resolution. Through the resolution, City of Waterford:
• Recognizes the need to implement demand-management actions to maintain sustainable groundwater conditions by 2042.
• Acknowledges that groundwater conditions beyond the City's control may result from actions by other entities within the GSA.
• Commits to collaborating with STRGBA member agencies and the County of Tuolumne GSA to carry out the GWUMP.
• Supports the development of action plans ensuring implementation of demand management by January 31, 2027.

Staff has reviewed the GWUMP and recommends Council adoption.

FISCAL IMPACT:

Implementation of the GWUMP may require various funding mechanisms, which could include:
• Proposition 218–compliant processes
• GSA fees and assessments
• Landowner groundwater pumping fees and penalties
• Agency funds
• State/Federal grant funding
Costs associated with GWUMP implementation may vary depending on required actions, future demand-management programs, and funding availability. Some costs may require approval through Proposition 218 proceedings.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. The Council could choose not to adopt the GWUMP. This is not recommended as the city is a partner of the GSA and the GWUMP is a requirement of DWR.

2. The Council could direct Staff to return with further options for consideration. This option would further delay the rate implementation plan as outlined in the existing options.

ATTACHMENTS:
• Resolution 2025-71
• Final Draft GWUMP
RESOLUTION 2025-71

WATERFORD CITY COUNCIL
RESOLUTION 2025-71

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERFORD

ADOPTING A GROUNDWATER USE MANAGEMENT PROGRAM IN THE MODESTO

GROUNDWATER SUBBASIN
A. WHEREAS, the Stanislaus and Tuolumne Rivers Groundwater Basin Association (STRGBA) Groundwater Sustainability Agency (GSA), consisting of the City of Modesto, Modesto Irrigation District, City of Oakdale, Oakdale Irrigation District, City of Riverbank, City of Waterford and County of Stanislaus was formed on February 16, 2017, for the purpose of sustainably managing groundwater in the Modesto Subbasin, within its jurisdictional boundaries, pursuant to the requirements of the Sustainable Groundwater Management Act (SGMA); B. WHEREAS, the STRGBA GSA coordinated with the County of Tuolumne GSA to develop a single, coordinated groundwater sustainability plan (GSP) for the Modesto Subbasin which was approved by both the STRGBA GSA and County of Tuolumne GSA; C. WHEREAS, the final Modesto Subbasin GSP was submitted to the Department of Water Resources (DWR) on January 31, 2022;
D. WHEREAS, a revised 2024 GSP Amendment for the Modesto Subbasin was developed by the STRGBA GSA and County of Tuolumne GSA in response to an Incomplete Determination by DWR;
E. WHEREAS, the 2024 Amended GSP for the Modesto Subbasin was approved by DWR on February 27, 2025;
F. WHEREAS, the City of Waterford acknowledges that during the 20-year GSP implementation period it will be necessary to implement projects and management actions to achieve and maintain sustainable groundwater conditions in the Modesto Subbasin on or before 2042;
G. WHEREAS, the City of Waterford acknowledges that successful implementation of planned GSP projects to achieve their intended recharge benefits during the 20-year GSP implementation period (prior to 2042) is dependent in part on uncertainties related to hydrologic conditions, including precipitation and snowpack, and available water supply during that time period;
H. WHEREAS, the City of Waterford acknowledges that implementation of demand management actions will be necessary to offset these uncertainties related to project implementation and project benefits to ensure that sustainable groundwater conditions are achieved in the subbasin by or before 2042;
I. WHEREAS, on June 20, 2024, the City of Waterford adopted a resolution committing to the development of demand management actions by January 31, 2026, with implementation of those demand management actions by January 31, 2027; J. WHEREAS, the June 20, 2024, resolution was incorporated into the 2024 Amended GSP for the Modesto Subbasin, which was submitted and approved by DWR; RESOLUTION 2025-71
K. WHEREAS, the STRGBA GSA has developed a Groundwater Use Management Program (GWUMP), as set forth in Exhibit “A” to this resolution, through collaboration of the STRGBA GSA and its member agencies with input from stakeholders through 3 public workshops;
L. WHEREAS, the GWUMP provides the framework to allocate the sustainable yield of the Modesto Subbasin by management area. The GWUMP also allows each management area steward to take actions to allocate the management area’s portion of the sustainable yield and to take actions to meet the allocation. The GWUMP is an adaptive plan that provides tools for the management area steward(s) to respond and take various actions and an implementation schedule that may be further refined in the future; M. WHEREAS, the City of Waterford acknowledges that the GWUMP is a framework to implement necessary demand management actions, and groundwater supply and allocations, which may be revisited as groundwater conditions improve or decline within the Modesto Subbasin;
N. WHEREAS, the City of Waterford acknowledges that it cannot control groundwater conditions caused by actions not taken by the GSA; O. WHEREAS, the City of Waterford commits to the implementation of this GWUMP in collaboration with the STRGBA GSA, its member agencies and the County of Tuolumne GSA; and
P. WHEREAS, funding sources for implementation of the GWUMP and any associated action plans may be subject to the Proposition 218 process and may include GSA fees and assessments, landowner groundwater pumping fees and penalties, agency funds, and grant funding.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Waterford finds as follows:

1. The City of Waterford authorizes collaboration with the STRGBA GSA, its member agencies, consultants, stakeholders and the County of Tuolumne GSA to take such actions as may be reasonably necessary to:
a. Approve and implement the GWUMP for the Modesto Subbasin to ensure longterm groundwater sustainability. b. Develop action plans which ensure the demand management actions identified in the GWUMP are under implementation beginning January 31, 2027.

The foregoing Resolution was passed and adopted by the City Council of the City of Waterford, County of Stanislaus, State of California, at a regular meeting thereof held on the 18th day of December, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RESOLUTION 2025-71
City of Waterford,
Charlie Goeken, Mayor
ATTEST:

APPROVED AS TO FORM:

Patricia Krause, CMC, City Clerk Corbett J. Browning
City Attorney
Modesto
Subbasin
Groundwater
Use
Management
Program
DRAFT
0012848.00

STRGBA GSA
November 10, 2025
woodardcurran.com
801 T Street
Sacramento, CA 95811
800.426.4262
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TABLE OF CONTENTS
SECTION PAGE NO.

1. PURPOSE AND BACKGROUND......................................................................................................1-1

1.1 Purpose ...............................................................................................................................................................1-1

1.2 Background .......................................................................................................................................................1-1

1.2.1 Modesto Subbasin .............................................................................................................................1-1

1.2.2 Determination Letter and Commitments ..................................................................................1-3

2. GROUNDWATER ALLOCATION FRAMEWORK .............................................................................2-1

2.1 Groundwater Allocation Framework .......................................................................................................2-1

2.1.1 Sustainable Yield.................................................................................................................................2-2

2.1.2 Special Considerations......................................................................................................................2-2

2.1.2.1 Developed Water Supply Users.....................................................................................2-3

2.1.2.2 De Minimis Water Users ...................................................................................................2-4

2.1.2.3 Municipal Water Users......................................................................................................2-4

2.1.3 Allocation Framework Methodology ..........................................................................................2-5

3. IMPLEMENTATION .........................................................................................................................3-9

3.1 Adaptive Management Strategies.........................................................................................................3-12

4. IMPLEMENTATION SCHEDULE ......................................................................................................4-1 TABLES
Table 1: Modesto Subbasin Stewards
Table 2: Developed Supply in the Modesto Subbasin
Table 3: Baseline Modesto Subbasin Groundwater Allocations Table 4: Collaborative Management of Groundwater Allocations Table 5: NDE Management Area Reduction Schedule

FIGURES
Figure 1: Modesto Subbasin Management Areas
Figure 2: GWUMP Response Levels
Figure 3: Management Area Action Plan Development Process Figure 4: Action Plan Content
Figure 5: GWUMP Implementation Schedule
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1. PURPOSE AND BACKGROUND

1.1 Purpose
On January 18, 2024, the California Department of Water Resources (DWR) issued an Incomplete Determination letter to the Modesto Groundwater Subbasin (Subbasin) for their 2022 Groundwater Sustainability Plan (GSP or Plan). In that letter, DWR stated that the Groundwater Sustainability Agencies (GSAs) “…should revise the GSP to include a reasonable means to arrest groundwater level declines and stop the overdraft that is continuing to occur in the Subbasin. Specifically, the GSAs should describe feasible, effective proposed projects and management actions that are commensurate with the level of understanding of groundwater conditions in the Subbasin and provide sufficient details for DWR staff to be able to clearly evaluate how the Plan’s projects and management actions will ensure achieving the sustainability goal in the Subbasin.” In responding to this Corrective Action, in the Revised July 2024 GSP, the Stanislaus & Tuolumne Rivers Groundwater Basin Association (STRGBA) GSA and the County of Tuolumne GSA (Tuolumne GSA) committed to preparing management actions consisting of a Pumping Management Framework (including a groundwater allocation and pumping management program, groundwater extraction and surface water reporting program, groundwater extraction fee and groundwater pumping credit market and trading program), Demand Reduction Strategies (consisting of voluntary conservation and/or land use fallowing and conservation practices), and a Dry Well Mitigation Program. In response, this Groundwater Use Management Program (GWUMP or Program) was prepared, incorporating a pumping management framework and demand reduction strategies. A Dry Well Mitigation Program was prepared as a separate, stand-alone program.

While it is still the goal of the Subbasin GSA to first implement supply projects to reach basin sustainability, this GWUMP is a management action intended to respond to direction provided by DWR and outlines the demand management actions that will be taken as long as supply actions are not effective in meeting overall basin sustainability goals. Nothing in this framework is intended to be a determination of water rights and is not evidence for or against any claim of a water right that can be used in any adjudication of water rights.

1.2 Background

1.2.1 Modesto Subbasin
The Modesto Groundwater Subbasin (5-22.02) is a high-priority basin covering approximately 245,253 acres in the northern San Joaquin Valley Groundwater Basin. The Subbasin is bounded by the Stanislaus River on the north, the Tuolumne River on the south, the San Joaquin River on the west, and the crystalline basement rocks of the Sierra Nevada Foothills on the east. The Modesto Subbasin relies on two primary sources of water supply – surface water from the Stanislaus and Tuolumne Rivers and groundwater pumped from the principal aquifers described in the GSP. About 64 percent of the Modesto Subbasin is agricultural, with major crop types including almonds and other deciduous trees, corn, grains, pasture, vines, citrus and truck crops. Urban areas cover about 13 percent of the Subbasin. Remaining lands consist of non-agriculture, non-irrigated agriculture, undeveloped areas, and surface water (23 percent). Most of the undeveloped land is in the eastern portion of the Subbasin. A significant expansion of irrigated agriculture occurred in the Subbasin during the GSP study period. In 1996, irrigated agriculture covered approximately 46 percent of the Subbasin (approximately 111,946 acres). Over the next 20 years, irrigated agriculture expanded by about 40 percent, and by 2017 had added another 45,965 acres (totaling 157,911 acres, approximately 64 percent of the Subbasin). The increase in irrigated agriculture primarily resulted from a conversion of pasture and STRGBA GSA (0012848.00) 1-2 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 previously non-irrigated and undeveloped areas to deciduous/almond orchards. Much of this expansion occurred in the eastern portion of the Subbasin – outside of Modesto Irrigation District (MID) and Oakdale Irrigation District (OID) service areas – where groundwater is the primary source of water supply.

The GSP delineates four separate Management Areas (MAs) to reflect areas of similar water supplies, streamlining coordination of water management and prioritizing areas for GSP project implementation.

These management areas include the Modesto Management Area, Oakdale Management Area, NonDistrict East (NDE) Management Area, and Non-District West (NDW) Management Area as shown on Figure

1. FIGURE 1: MODESTO SUBBASIN MANAGEMENT AREAS
The Non-District West Management Area contains lands along the western rim of the Subbasin, where both groundwater and surface water are available for beneficial uses. The Non-District East Management Area includes lands outside of MID and OID service areas in the eastern portion of the Subbasin where groundwater is the primary water supply. The Modesto and Oakdale Management Areas coincide with the service area boundaries of their respective irrigation districts. MID manages Tuolumne River water and groundwater conjunctively, and OID manages Stanislaus River water and groundwater conjunctively. The Non-District East and Non-District West Management Areas cover remaining lands outside of MID and OID jurisdiction, where Stanislaus County is the lead member agency.

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1.2.2 Determination Letter and Commitments
The Revised 2024 Modesto Subbasin GSP was approved by DWR in 2025 and is currently being implemented by the STRGBA GSA and the Tuolumne GSA. The goal of the GSP is to achieve sustainability by 2042 in compliance with the Sustainable Groundwater Management Act (SGMA).

As described in the Revised 2024 GSP, long-term declines in groundwater levels have occurred in the NDE Management Area and currently are impacting groundwater levels in the Oakdale Management Area. As a result, 2027 Interim Milestones (IMs) below the Minimum Threshold (MT) have been developed for representative monitoring wells in those management areas. The anticipated decline between adoption of the initial GSP in 2022 and 2027 (the first interim milestone) depends on future unknown hydrologic conditions. Since drought conditions began in Water Year (WY) 2013, dry hydrologic conditions have persisted in the Subbasin with five out of seven water years between WY 2014 and WY 2020 having been categorized as below normal, dry, or critically dry. Water level declines associated with the last seven years may continue if hydrologic conditions do not improve, and/or if the aquifer response to GSP project implementation is delayed or overestimated. To evaluate and prevent undesirable results, 2027 IMs have been developed for monitoring sites based on groundwater level declines observed over the last seven years. Based on modeling completed in support of the GSP, by 2032, projects and management actions are expected to support water level recovery; therefore, the 2032 IMs were set as the MT. If needed, the IMs for 2037 have been defined as the halfway point between the MT and the Measurable Objective (MO).

In general, there are two principal ways to reach the Subbasin IMs and ultimately achieve basin wide sustainability as the GSP is implemented:

1. Increase supply; or

2. Decrease demand; or
Reducing groundwater demand can be done through a variety of strategies, including changes to cropping patterns, land fallowing, land repurposing, and conservation in response to numeric groundwater allocations, which would be less than those currently extracted. Strategies to increase supply have been identified by the GSA and are included as projects in Chapter 8 of the Revised 2024 Subbasin GSP. These projects are proposed to either recharge groundwater with surface water or provide surface water to meet groundwater demand so that groundwater pumping is reduced without changing the land use or total water demand (in-lieu recharge). To date, the GSP has focused on implementing projects to address overdraft. However, the schedule of implementation, source, and timing of the funding, design, and construction of the supply projects poses uncertainties in terms of realizing the benefits in the expected timeline. Recognizing these uncertainties, the GSA acknowledges that more timely reductions in groundwater use will be required to meet the planned IMs. For this reason, the GSA has developed this GWUMP as a backstop to prevent significant and unreasonable impacts related to groundwater level decline.

The GWUMP, as outlined herein, is the first step in demand management. The GSAs may adjust the GWUMP as projects are implemented and further develop additional aspects of the overall Program as it is implemented and evolves.

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2. GROUNDWATER ALLOCATION FRAMEWORK
GSAs have the authority to develop and implement management actions within their GSPs that are based on local conditions, priorities, and management objectives. Under the California Water Code, a GSA has the authority to regulate, limit, or suspend groundwater extractions from individual wells or other facilities within a groundwater basin.0F
1 As a result, the STRGBA GSA has developed this Groundwater Allocation Framework which equitably distributes the sustainable yield amongst the Management Areas (Allocation Framework) to achieve groundwater sustainability consistent with SGMA. Any demand reductions actions must be approved by the STRGBA GSA and would be implemented by Management Area Stewards if authorized and directed by the STRGBA GSA.

This Allocation Framework is intended to be an adaptive program, modified over time to reflect changing hydrologic conditions and implementation of water supply projects. Nothing in this framework is intended to be a determination of water rights, and is not evidence for or against a water right that can be used in any adjudication of water rights.

2.1 Groundwater Allocation Framework
The STRGBA GSA developed a groundwater allocation framework based on the estimated sustainable yield of the Subbasin as documented in the GSP and considering developed supply and local groundwater use.

The goal of the framework is to equitably distribute the sustainable yield to each Management Area throughout the Subbasin and allow the Management Area Stewards to decide how to implement components of the framework in their respective management areas as needed to operate within those allocations.

As used herein, the Management Area Steward is defined as the GSA member agency/agencies from each Subbasin management area. The Modesto Subbasin Stewards are shown below in Table 1.

TABLE 1: MODESTO SUBBASIN STEWARDS
Management Area Stewards
Modesto Management Area
Modesto Irrigation District
City of Modesto
City of Waterford
Oakdale Management Area
Oakdale Irrigation District
City of Oakdale
Non-District West Management Area
Stanislaus County
City of Riverbank
Non-District East Management Area Stanislaus County
1 CWC § 10726.4(a)(2)
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Draft Groundwater Use Management Program November 10, 2025 Overall, the process of developing the Allocation Framework included establishing the sustainable yield, accounting for special considerations of allocatable groundwater, determining the volume of developed water, allocating the sustainable yield of native groundwater, and establishing measures for management area stewardship by the GSA member agencies.

2.1.1 Sustainable Yield
Sustainable yield is defined under SGMA as “the maximum quantity of water, calculated over a base period representative of long-term conditions in the basin and including any temporary surplus, that can be withdrawn annually from a groundwater supply without causing an undesirable result.”1F 1 The sustainable
yield for the Modesto Subbasin was calculated to be 267,000 acre-feet per year (AFY). Sustainable yield for the Subbasin was calculated using a C2VSimTM numerical modeling scenario in which the long-term (50- year) sustainable management criteria are maintained. The development of sustainable yield incorporates the reduction of groundwater demand from net groundwater extractors, which forms the basis for the Allocation Framework. Additional information on the methodology utilized to determine the sustainable yield is presented in Section 5.3 of the Revised 2024 GSP.2F 2 While the sustainable yield provides the basis for the volume of allocatable water within the Subbasin, special considerations for certain entities were considered and incorporated into the Allocation Framework (see Section 2.1.2). The amount of water allocatable to applicable entities is termed “native sustainable yield”, which is discussed further in Section 2.1.3.

2.1.2 Special Considerations
Special considerations for the Allocation Framework were evaluated by the STRGBA GSA and included legal considerations and local management objectives. The following entities were determined to have limited requirements under the Allocation Framework:
• Federal & Tribal Lands (not present)
• Adjudicated Areas (not present)
• Developed Water Supplies
• De Minimis Water Users
• Municipal Water Use
Federal lands, tribal lands, and adjudicated areas are not present within the Subbasin. As a result, developed water, supplies for de minimis water users, and municipal water use were the only entities with special considerations or limitations under the Allocation Framework. Additional information on developed water supplies, de minimis water users, and municipal water users are discussed further herein. 1 CWC §10721(w))
2 Modesto Subbasin GSP, Revised July 2024, Section 5.3, pp. 303-310 STRGBA GSA (0012848.00) 2-3 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025

2.1.2.1 Developed Water Supply Users
Developed supplies are water that is intentionally sourced, imported and made available for use through human-made systems. California law recognizes imported water that is added to and withdrawn from an underground basin and credits this ‘developed water’ to the importer bringing the water into the basin.

California law also recognizes that a party who imports water into a basin or develops new supplies may retain rights to that water, including the right to recapture that water. As such, Developed Supply is controlled by the entity that developed the imported water supply.

Developed supply systems in the Modesto Subbasin include:
• Imported Water: Surface water brought into the basin from external sources, such as through canals, pipelines, or water transfers.
• Recycled Water: Wastewater or other non-traditional water sources that are treated to meet specific quality standards for reuse.
• Artificial Recharge Projects: Groundwater replenishment efforts using intentionally captured and injected water.

Recovery of imported and recycled water includes seepage resulting from storage, conveyance and/or land application. Recovery of water from artificial recharge projects correlates to the volume of water recharged by the project.

During the development of the Allocation Framework, estimates of developed supplies were refined into seepage from canals, reservoirs, drainage, and deep percolation of applied surface waters. Quantified values of developed water were sourced from MID’s and OID’s 2020 Agricultural Water Management Plans and are summarized below in Table 2.

TABLE 2: DEVELOPED SUPPLY IN THE MODESTO SUBBASIN
Developed Supply (AF) MID1 OID2
Deep Percolation of Applied Surface
Water 51,5003 14,8003
Canal and Reservoir Seepage 39,400 13,100
Drainage Seepage -- 3,700
Total 90,900 31,600
Notes:
1 Includes 2018 as a representative water year
2 Average value covering water years 2006-2019 3 estimated based on the fraction of applied surface water MID generates approximately 90,900 AFY of recharge from their developed supply, and OID generates approximately 31,600 AFY of recharge from their developed supply. These estimations were incorporated into the Allocation Framework and the Management Areas’ demand reduction targets, which are discussed STRGBA GSA (0012848.00) 2-4 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 further in Section 2.2.2 and Section 2.2.3. These values were estimated using the most recent data available and will be refined as the GWUMP is periodically re-evaluated.

2.1.2.2 De Minimis Water Users
De minimis extractors are classified as water users that extract two (2) acre-feet (AF) or less of groundwater per year.3F
1 De minimis water use totals approximately 13,800 AFY within the Subbasin. During the development of the Allocation Framework, the STRGBA GSA determined that de minimis extractors should be exempt from receiving allocations and reducing their groundwater use.

2.1.2.3 Municipal Water Users
Municipal water use refers to the provision of water for residential, commercial, and public services within a city. Municipal water users within the Subbasin include the City of Modesto, City of Oakdale, City of Riverbank, and the City of Waterford. These entities account for approximately 35,000 AFY of groundwater use. During development of the Allocation Framework, the STRGBA GSA designated municipal water users as a special case and limited their future groundwater use to their historical groundwater use. This decision was supported by several local and state requirements for implementing water use efficiency programs.

These requirements include:
• Making Conservation as a California Way of Life – a State regulation that establishes efficiency goals and Urban Water Use Objectives (UWUOs) for urban water suppliers to reduce municipal demands. The regulation requires urban water suppliers to determine their water use objectives and demonstrate compliance annually.4F
2 • Growth Obligations – Municipalities have State mandated housing and population growth targets that drive water demand.
• Public Service Constraints – Cities are non-profit entities that typically operate with limited flexibility in pricing for the purchase of water supplies. • Supply Limitations – Groundwater supplies are limited and meeting future demand will require surface water development, recharge projects, additional conservation, or purchased allocation credits.

Under this Allocation Framework, groundwater allocations are set at current groundwater use quantities per annum for municipalities, and the municipalities will be required to conserve water or provide other water supplies in order to supply future growth. If additional lands are annexed into municipal water provider’s service areas, those lands will be removed from the overlying allocation of the sustainable yield in future updates of the GWUMP, and the special case allocation to municipal water users will remain unchanged.
1 CWC § 10721(e)
2 23 CCR, § 966
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2.1.3 Allocation Framework Methodology
Multiple approaches to Subbasin groundwater allocation were considered by the STRGBA GSA to determine the best method for reducing groundwater demand to achieve the Subbasin’s sustainability goals. The approaches included allocations based on consumptive use (amount of water used and not returned to the Subbasin), pumping (total volume extracted), and other metrics such as crop type, economic value, or negotiated agreements. Ultimately, pumping, or the total volume of groundwater extracted by user, was selected as the basis for the Allocation Framework as it was both directly measurable and could easily be estimated by other means in cases where metering data were not available.

A proportional allocation by the overlying area, excluding those urban and domestic areas where the service area was provided a special consideration, was selected as the approach for distributing allocatable yield by management area within the Subbasin. This method was selected as it facilitates resource pooling in management areas that are more reliant on groundwater, eliminates the ‘double allocation’ of water to municipal and de minimis areas, and promotes equity across all overlying users, despite their intended use.

Following the selection of the Allocation Framework’s basis and distribution method, estimations of allocations for the Subbasin and each Management Area (as defined in the Revised 2024 GSP) were made.

As previously discussed, allocations are calculated by distributing the allocatable yield (i.e., non-special considerations) across the Subbasin’s overlying area, where:

𝐴𝐴𝐴𝐴 = 𝑆𝑆 − 𝐷𝐷 − 𝑀𝑀 − 𝐷𝐷
AY = Allocatable Yield
SY = Sustainable Yield
D = De minimis Users
M = Municipal Users
DS = Developed Supply
The allocatable yield calculated for the Modesto Subbasin was determined to be 95,700 AFY.

Overlying Allocation: The Subbasin-wide overlying allocation of 95,700 AFY was subsequently distributed amongst the Management Areas using a proportional allocation methodology based on each zone’s overlying land area minus the area covered by urban and domestic land uses (referred to herein as Overlying, Non-Urban Area). This equitable distribution approach ensures that water allocations correspond directly to the spatial extent of overlying land use within each Management Area without ‘double allocating’ water to urban and domestic land areas. The proportional distribution method calculates each Management Area's share by dividing its overlying non-urban acreage by the total subbasin overlying acreage, then multiplying this percentage by the total overlying allocation. An illustrative calculation demonstrating how individual Management Area overlying allocations are determined is presented below.

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Draft Groundwater Use Management Program November 10, 2025 𝑂𝑂𝑂𝑂𝑂𝑂𝑀𝑀𝑀𝑀 = (𝑂𝑂𝑂𝑂𝑂𝑂𝑆𝑆)(
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝑀𝑀𝑀𝑀
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝑆𝑆
)
OVRMA = Overlying Allocation of the Management Area
OVRS = Overlying Allocation of the Subbasin
AreaMA = Overlying Non-Urban Area of the Management Area Areas = Total Area of the Subbasin
Table 3, below, summarizes the ‘baseline’ allocations for the individual management areas as calculated using the above methodology.

TABLE 3: BASELINE MODESTO SUBBASIN GROUNDWATER ALLOCATIONS Subbasin
TOTAL Modesto MA Oakdale MA
NDW
MA
NDE
MA
Developed Supply1 122,500 90,900 31,600 0 0
Special Cases1 48,800 33,700 8,900 6,200 0
Overlying Use1 95,700 35,300 23,200 5,500 31,700
Total Allocation1 267,000 159,900 63,700 11,700 31,700
Total Historical
Pumping1 317,600 173,000 39,800 15,100 89,700
Reduction Required1 50,600 13,100 -23,900 3,400 58,000
Total Allocation
(Percent of Historical) 84% 92% 160% 77% 35%
1 Volumes are presented in acre-feet.

NDW – Non-District West
NDE – Non-District East
The initial allocation estimations (“Baseline Allocations”) indicate an average annual reduction of Total Historical Pumping by approximately 16% is needed. However, allocations applied to certain management areas, such as the Oakdale Management Area, were greater because of OID’s development and use of surface water and thus appear in Table 3 as negative required reductions. To collaborate and assist in easing reductions in other Management Areas, and to allow supply projects to be constructed, OID has agreed to redistribute the portion of its developed supply that is not anticipated to be used by OID in the near term to other Management Areas on a temporary basis, not to exceed five years (2027-2031), at no cost to the beneficiaries. The reallocation option, referred to herein as ‘Collaborative Management, is presented below STRGBA GSA (0012848.00) 2-7 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 in Table 4. It is important to note that any potential ‘reallocation’ of the native sustainable yield would have to be agreed upon by the STRGBA GSA. However, reallocation of developed supply is controlled by the entity that developed the imported water supply. Any such redistribution of OID’s developed water is not a forfeiture of the right or claim of right in the future. Furthermore, by reallocating developed supply to another party under this Framework, the potential pumping reduction in other management areas is reduced from what it may have to be in the future. OID specifically hereby disclaims that by approving this Plan it waives any of its water rights and/or the rights of its landowners; but rather, affirms that it puts all water to which it or its landowners have a right to full beneficial use.

TABLE 4: COLLABORATIVE MANAGEMENT OF GROUNDWATER ALLOCATIONS Subbasin
TOTAL
Modesto
Management
Area
Oakdale
Management
Area
NDW
Management
Area
NDE
Management
Area
Base Allocation1 267,000 159,900 63,700 11,700 31,700
Historical Pumping1 317,600 173,000 39,800 15,100 89,700 Developed Water1 - 0 -23,900 0 0
Redistribution of
Developed Water1 0 11,700 -23,900 1,800 10,400
Allocation with
Redistribution of
Developed Water1
267,000 171,600 39,800 13,500 42,100
Reduction Required1,2 50,600 1,400 0 1,600 47,600
Allocation with
Redistribution2 (Percent
of Historical)
84% 99% 100% 89% 47%
1 Volumes are presented in acre-feet. 2Assumes long-term use of Redistributed Developed Water.

NDW – Non-District West
NDE – Non-District East
Long-term redistribution of developed water would result in smaller reduction targets for the Modesto, Non-District West, and Non-District East Management Areas - 7%, 12%, and 12%, respectively. However, OID has only agreed to allow temporary utilization of their developed water for the first five years of implementation (2027-2031).

The STRGBA GSA prepared an implementation schedule for meeting the allocation targets while allowing groundwater users the opportunity to adapt to reductions in groundwater use. The implementation schedules for the Management Areas are presented in Section 4. Distribution of these allocations to groundwater users will be completed by Management Area “Stewards”, as discussed in Section 2.1.4.

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Draft Groundwater Use Management Program November 10, 2025 However, it is important to keep in mind that this framework is one of the Subbasin’s first steps towards achieving groundwater sustainability, and this Program will continue to be reviewed and adjusted as needed in future updates.

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Draft Groundwater Use Management Program November 10, 2025

3. IMPLEMENTATION
Member agencies of the STRGBA GSA determined that the GWUMP would be best implemented locally in the individual Management Areas within the Subbasin. The Management Areas are defined in the Revised 2024 GSP as areas of similar water supplies and similar ongoing water management activities.5F 1 As discussed
in Section 2 and shown in Figure 1, four management areas are present within the Modesto Subbasin:

Modesto Management Area, Oakdale Management Area, Non-District West Management Area, and NonDistrict East Management Area. These management areas and their Stewards (agencies with jurisdiction) are shown in Table 1.

Following the adoption of this GWUMP, the Management Area Stewards will distribute allocations as credits to groundwater users no later than January 31, 2027, per the Revised 2024 Modesto Subbasin GSP. The total allocations, per Management Area, in the first five years of implementation will be consistent with the “Collaborative Management” allocation volumes presented in Table 4. Management Area Stewards will monitor and evaluate groundwater use and the assigned allocations on a regular basis to ensure groundwater users are operating within their assigned allocations. The STRGBA GSA will also continue to independently assess groundwater use in each management area as part of its annual reporting process and procedures.

The intent of localized management by the Management Area Steward is to achieve sustainable management criteria, such as interim milestones and measurable objectives, as established in the GSP and prevent the occurrence of undesirable results, but to do so in a fashion that is achievable within the characteristics of each individual area. Should groundwater data and parameters, such as groundwater levels, indicate that a particular management area is not achieving their sustainable management objectives, Management Area Stewards will develop a Management Area Action Plan for STRGBA GSA approval as a corrective course of action and may, at their discretion, escalate the allocation implementation schedule to comply with these sustainable management criteria if needed. Non-compliance with these criteria may trigger other additional management strategies. Figure 2 outlines the methodology the Management Area Stewards will follow in implementing the GWUMP. For the purposes of this GWUMP, non-compliance is defined as two (2) consecutive years of not meeting the GWUMP-mandated allocations and/or not having a GSA-approved Action Plan implemented within two (2) years. 1 Modesto Subbasin GSP, Revised July 2024, Section 6.2.3, p. 317 STRGBA GSA (0012848.00) 3-10 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 FIGURE 2: GWUMP RESPONSE LEVELS
If, based on the Subbasin’s monitoring program and annual analysis, it is determined that a Management Area Action Plan is required, the following steps will be implemented in developing that plan (Figure 3).

Should a Management Area move into Response Level 3 as a result of non-compliance, the STRGBA GSA would follow the State’s probationary emergency protocols/measures to meter groundwater extractions and assess fees while the GSA drafts and executes a GSA Action Plan for the Management Area(s) and returns the Management Area(s) to the planned path towards sustainability.

STRGBA GSA (0012848.00) 3-11 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 FIGURE 3: MANAGEMENT AREA ACTION PLAN DEVELOPMENT PROCESS The content of the Action Plan will vary depending on the Management Area, hydrologic condition, situation and other parameters, but in general, Actions Plans will include the following content (Figure 4).

FIGURE 4: ACTION PLAN CONTENT
Section 3.1 provides a list of potential adaptive management strategies that the Management Area Stewards may choose to implement to ensure the Subbasin progresses towards sustainability. In the event the Management Area Stewards are unable to progress towards sustainability (i.e., failure to achieve interim milestones or continuously exceeding minimum thresholds), the STRGBA GSA will implement additional measures to prevent the occurrence of undesirable results.

STRGBA GSA (0012848.00) 3-12 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 While the GWUMP will be reassessed no less than once every five years (see Section 4 for further discussion), the condition of the Subbasin will be evaluated annually as part of the SGMA-mandated annual report process. If identified as part of that reporting process and as needed, the Management Area Stewards may opt to modify their Action Plan with STRGBA GSA approval between GWUMP assessments to proactively address any negative trends identified at that time. However, any planned regulation, limitation or suspensions of groundwater extractions from individual wells or other facilities by Management Area Stewards will require prior approval by the GSA.

3.1 Adaptive Management Strategies
While the groundwater allocation framework discussed above in Section 2 is intended to move the Subbasin towards sustainability, it is recognized that Subbasin hydrogeology and future hydrologic conditions will impact the success of the program. As the GWUMP is envisioned, the Management Area Stewards will be responsible for monitoring progress towards achieving the Interim Milestones set forth in the Revised 2024 GSP, and for implementing adaptive management strategies and responses as needed to achieve the desired results.

Adaptive management is a key component of the GWUMP. A program that is flexible and developed to adapt to changing conditions will be the most effective. The unknown factors in meeting the demand management goals may include, but are not limited to, the following:
• Hydrology of the next five years: The benefits (recharge) accrued from planned projects vary based on the availability of surface and storm water over the next few years. Projects that rely on excess surface water to be implemented may not produce the same level of benefits in drought years. • Implementation schedule of planned projects: It is unknown what legal, financial, or environmental hurdles could delay the implementation of the identified projects. These delays could be specific to a GSA, management area, or the Subbasin as a whole.
• Estimation of Project Contributions: Not all projects may be able, once implemented, to produce the anticipated benefits estimated during the planning process, even without project delays. • Model Uncertainty: Through future monitoring, the GSAs will be able to assess model uncertainty and improve model estimations as new data becomes available.

To aid the Management Area Stewards with adaptively managing their areas, the following is a list of some potential strategies that may be employed to help reduce groundwater use and support achieving the Subbasin Interim Milestones and ultimately groundwater basin sustainability. This list is not intended to be all inclusive.
• Implementation of voluntary or mandatory conservation measures including, but not limited to:
o Land repurposing to enhance groundwater recharge
o Land repurposing for habitat restoration (recreational use, GDE benefit, etc.) o Land repurposing for clean energy incentives (i.e., solar power fields) o Replacing higher value/water using crops with lower value/water using crops or replanting or repurposing with crops/agriculture requiring lower water demands o Fallowing – total or partial crop removal, rotational fallowing, dry farming STRGBA GSA (0012848.00) 3-13 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 • Acceleration of the allocation reduction schedule
• Implementation of groundwater extraction fees
• Increased groundwater use reporting requirements to quarterly or monthly • Prioritization of implementation of Supplemental Projects (Group 3) • Incentivization of surface water deliveries/in-lieu recharge • Implementation of targeted pumping reductions or restrictions • Reduction of allocations beyond base allocation limits • Restriction of pumping in areas where MTs have been exceeded • Required flowmeter installation on extraction wells
• Invasive species removal
• Urban retrofitting and/or irrigation improvements to reduce water loss and use It will be at the Management Area Stewards discretion and responsibility to effectively use some or all of these and potentially other measures to achieve the targeted groundwater use extractions and reach Interim Milestones, and it will be the responsibility of the STRGBA GSA to ensure there is consistency amongst the Management Areas with respect to implementation and application of adaptive management measures.

STRGBA GSA (0012848.00) 4-1 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025

4. IMPLEMENTATION SCHEDULE
As previously described, in response to Recommended Corrective Action #2 of DWR’s 2025 Determination letter, the STRGBA GSA committed to developing this GWUMP by no later than January 31, 2026, and will implement the program beginning no later than January 31, 2027. To meet this schedule and achieve the Interim Milestones established in the Revised 2024 GSP, the GWUMP will be the primary tool to guide the Subbasin towards sustainability as additional projects and management actions are implemented to offset continued groundwater use.

This Program is the first step towards achieving long-term sustainability. It is designed to effectively manage groundwater use while allowing growers the flexibility to adapt to new policies and frameworks within the Subbasin. Ultimately, however, groundwater management will be driven by observed groundwater level data relative to the Minimum Thresholds and Interim Milestones established in the Revised 2024 GSP and will be supported through adaptive management. The timeline for achieving Interim Milestones, as set forth in the Revised 2024 GSP, is as follows:
2027 - Arrest overdraft and groundwater level decline
2032 - Raise groundwater levels to Minimum Thresholds
2037 - Raise groundwater levels to halfway between Minimum Thresholds and Measurable Objectives
2042 - Raise groundwater level to Measurable Objectives It is important to recognize that the allocations presented in this GWUMP are based on the best available data at this time. The STRGBA GSA will continue to gather data and refine the allocations presented herein in future updates to the GWUMP. However, even with the temporary redistribution of the OID developed water supply in the first five years of program implementation and considering historical groundwater level trends, the NDE Management Area will begin the GWUMP Phase 1 implementation period in the Phase 2 Response Level and therefore will require a Management Area Action Plan in addition to initiating reductions in groundwater use.

Following implementation of this GWUMP in January of 2027, reductions in groundwater extractions will ‘ramp up’ in five-year increments as necessary to arrest overdraft and raise groundwater levels to the Measurable Objectives identified in the GSP. Table 5, below is the implementation schedule for the NDE Management Area.

STRGBA GSA (0012848.00) 4-2 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 TABLE 5: NDE MANAGEMENT AREA REDUCTION SCHEDULE
Year Percent Reduction of
Target Allocation
Required Reduction (AcreFeet)
2027-2030
34% of total reduction
required less 10,400 AF of
Redistributed Developed
Water
16,000
2030-2035 67% 39,000
2035-2040 100% 58,000
While some pumping reduction is indicated to be required in the Modesto Management Area, the reduction volume after redistribution of developed water in the first five-year implementation period is less than 1% of the Base Allocation and Historical Pumping. Additionally, groundwater levels in a majority of the monitoring wells in the MID and City of Modesto service areas are relatively stable. Continued assessment of data and groundwater/surface water operations in the Modesto Management Area is needed to ensure overdraft does not occur in the future; and no Action Plan is required in the Modesto Area at this time.

Although some reduction in groundwater pumping is indicated for the Non-District West Management Area in the first five-year implementation period, observed groundwater levels in a majority of the monitoring wells in the western upper and lower principal aquifers in the Management Area are currently at or above the measurable objective. Additionally, there are no indications of any long-term water level declines in the Non-District West Management Area, therefore, no Action Plan is required in the NonDistrict West Management Area at this time.

Even though OID’s development and use of surface water results in a surplus of developed supply, groundwater levels in the eastern portion of the Oakdale Management Area continue to decline due to the influence of overdraft in the Non-District East Management Area. No reductions or Action Plan are required for the eastern portion of the Oakdale Management Area at this time.

Per SGMA, every five years, the Subbasin GSP is re-evaluated and a Periodic Evaluation is prepared for submission to DWR. Evaluation of, and any necessary revisions to, the GWUMP will occur prior to and in parallel with each GSP review and Periodic Evaluation. Additionally, other related management actions and tools, such as the development of a groundwater banking and trading program, may be developed by the STRGBA GSA in the future to further support sustainable management of the Subbasin. Figure 5 below is the planned implementation and review schedule for the GWUMP.

STRGBA GSA (0012848.00) 4-3 Woodard & Curran, Inc.

Draft Groundwater Use Management Program November 10, 2025 FIGURE 5: GWUMP IMPLEMENTATION SCHEDULE
woodardcurran.com
General Business 6b
December 18, 2025
Michael Pitcock, City Manager
City Council Staff Report
Resolution: Resolution 2025-72, Adopting a Well Mitigation Plan in the Modesto Groundwater Subbasin
SUMMARY:

The Council is being asked to adopt the Well Mitigation Plan developed for the Modesto Groundwater Subbasin authorize its implementation. Adoption of the Well Mitigation Plan fulfills commitments made in prior Council actions and advances compliance with the Sustainable Groundwater Management Act (SGMA).

ANALYSIS:

The focus of this Program is on mitigation for drinking water wells that have experienced adverse impacts due to declining groundwater levels resulting from basin management actions during the GSP implementation period (defined as ending in 2042 by SGMA legislation). Drinking water wells are defined here as any well used to supply potable water to a household, including domestic wells that supply water for potable, minor irrigation, and other domestic purposes. It may also include state small water systems with between 5 and 14 connections.

Staff has reviewed the Well Mitigation Plan and recommends Council adoption.

FISCAL IMPACT:

Agency partners will equally fund and maintain a well mitigation account in the amount of $300,000.

Actual cost to the City of Waterford is unknown as it depends on how many wells need mitigation.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

1. The Council could choose not to adopt the Well Mitigation Plan. This is not recommended as the city is a partner of the GSA and the Well Mitigation Plan is a requirement of DWR. .

ATTACHMENTS:
• Resolution 2025-72
• Final Draft Well Mitigation Plan
RESOLUTION 2025-72

WATERFORD CITY COUNCIL
RESOLUTION 2025-72

RESOLUTION ADOPTING A WELL MITIGATION PLAN IN THE MODESTO

GROUNDWATER SUBBASIN
A. WHEREAS, the Stanislaus and Tuolumne Rivers Groundwater Basin Association (STRGBA) Groundwater Sustainability Agency (GSA), consisting of the City of Modesto, Modesto Irrigation District, City of Oakdale, Oakdale Irrigation District, City of Riverbank, City of Waterford and County of Stanislaus was formed on February 16, 2017, for the purpose of sustainably managing groundwater in the Modesto Subbasin, within its jurisdictional boundaries, pursuant to the requirements of the Sustainable Groundwater Management Act (SGMA); B. WHEREAS, the STRGBA GSA coordinated with the County of Tuolumne GSA to develop a single, coordinated groundwater sustainability plan (GSP) for the Modesto Subbasin which was approved by both the STRGBA GSA and County of Tuolumne GSA; C. WHEREAS, the final Modesto Subbasin GSP was submitted to the Department of Water Resources (DWR) on January 31, 2022;
D. WHEREAS, a revised 2024 GSP Amendment for the Modesto Subbasin was developed by the STRGBA GSA and County of Tuolumne GSA in response to an Incomplete Determination by DWR;
E. WHEREAS, the 2024 Amended GSP for the Modesto Subbasin was ultimately approved by DWR on February 27, 2025;
F. WHEREAS, 2027 Interim Milestones (IMs) were established in the Modesto Subbasin GSP to acknowledge the continued groundwater level decline anticipated to occur temporarily during the initial years of GSP implementation; G. WHEREAS, the City of Waterford acknowledges that during the 20-year GSP implementation period, in particular within the initial IM timeline, it is possible for wells to be negatively impacted by continued groundwater level decline; H. WHEREAS, on June 20, 2024, the City of Waterford adopted a resolution committing to the development and implementation of a Well Mitigation Plan by January 31, 2026;
I. WHEREAS, the June 20, 2024, resolution was incorporated into the 2024 Amended GSP for the Modesto Subbasin, which was submitted and approved by DWR; J. WHEREAS, the STRGBA GSA has developed a Well Mitigation Plan, as set forth in Exhibit “A,” through the collaboration of the STRGBA GSA and its member agencies with input from stakeholders through 3 public workshops; K. WHEREAS, the STRGBA GSA has established a baseline funding source of $300,000 from the member agencies to begin implementing the Well Mitigation Plan; RESOLUTION 2025-72
L. WHEREAS, the Well Mitigation Plan provides the framework for the following elements:
(a) an application process and well mitigation program parameters for landowners of impacted wells;
(b) establishment of a Well Mitigation Program Committee and Technical Review Committee to oversee the claim process; and
(c) STRGBA GSA will contract with Self-Help Enterprises for coordination of emergency water supplies, well assessment, and well replacement; M. WHEREAS, the City of Waterford acknowledges that it cannot control groundwater conditions or well failures caused by actions not taken by the GSA; N. WHEREAS, the City of Waterford commits to the implementing this Well Mitigation Plan in collaboration with the STRGBA GSA, its member agencies and the County of Tuolumne GSA; and
O. WHEREAS, the STRGBA GSA will provide annual funding for implementation of the Well Mitigation Plan, and the member agencies will meet and confer in good faith, as needed, to determine the appropriate funding mechanisms.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Waterford finds as follows:

AYES:

NOES:

ABSENT:

ABSTAIN:

RESOLUTION 2025-72
City of Waterford,
Charlie Goeken, Mayor
ATTEST:

APPROVED AS TO FORM:

Patricia Krause, CMC, City Clerk Corbett J. Browning
City Attorney
Stanislaus & Tuolumne Rivers
Groundwater Basin Association
Groundwater Sustainability Agency
Draft
Modesto Subbasin
Well Mitigation Plan
November 5, 2025 Draft
GSA Adoption Anticipated January 14, 2026
ii
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TABLE OF CONTENTS
Introduction.................................................................................................................................1 Background..............................................................................................................................1 Purpose ...................................................................................................................................2 Program Management..................................................................................................................3 Partnerships with Existing Programs ..........................................................................................3 Program Development Committee ............................................................................................4 Technical Review Committee ....................................................................................................4 Program Process..........................................................................................................................5 Eligibility ..................................................................................................................................5 Application Process..................................................................................................................6 Process for Establishing STRGBA GSA-Related Well Impacts......................................................9 Process for Implementing Mitigation Measures..........................................................................9 Emergency Water Supply.......................................................................................................9 Interim Solution ..................................................................................................................10 Long-term Solutions ...........................................................................................................10 Plan Outreach............................................................................................................................10 Funding and Anticipated Costs...................................................................................................11 iii
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ACRONYMS
CV-SALTS Central Valley Salinity Alternatives for Long-Term Sustainability DWR California Department of Water Resources
GSA Groundwater Sustainability Agency
GSP Groundwater Sustainability Plan
NGOs non-governmental organizations
PMAs Projects and Management Actions
SAFER Safe and Affordable Funding for Equity and Resilience SHE Self-Help Enterprises
SGMA Sustainable Groundwater Management Act
STRGBA GSA Stanislaus and Tuolumne Rivers Groundwater Basin Association Groundwater Sustainability Agency
SWRCB State Water Resources Control Board
TAC Technical Advisory Committee
WY Water Year (October 1 through September 30)
VWC Valley Water Collaborative
1 Draft Well Mitigation Plan
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Introduction
Background
In September 2014, the Governor of California signed legislation creating the Sustainable Groundwater Management Act (SGMA) “to provide local groundwater sustainability agencies with the authority and technical and financial assistance necessary to sustainably manage groundwater” (Water Code, § 10720.1(d)). Groundwater Sustainability Agencies (GSAs) were provided the authority to adopt rules, regulations, ordinances, and resolutions for the sustainable management of a groundwater basin and to conduct and carry out activities necessary to achieve and maintain sustainable conditions.

The Modesto Subbasin (5-22.02) (Subbasin), a high-priority basin as defined by the Department of Water Resources (DWR), is subject to SGMA and is being managed in compliance with SGMA.

Groundwater management within the Stanislaus County footprint of the Modesto Subbasin is being coordinated and overseen by the Stanislaus and Tuolumne Rivers Groundwater Basin Association Groundwater Sustainability Agency (STRGBA GSA), consisting of the following member agencies: the City of Modesto, Modesto Irrigation District, City of Oakdale, Oakdale Irrigation District, City of Riverbank, City of Waterford and County of Stanislaus. The STRGBA GSA is governed by a Committee (GSA Committee) made up of one designated staff member from each of the seven member agencies. The STRGBA GSA was formed on February 16, 2017, for the purpose of sustainably managing groundwater in the Modesto Subbasin, within its jurisdictional boundaries and pursuant to the requirements of SGMA. The STRGBA GSA coordinated with the County of Tuolumne GSA to develop a single, coordinated groundwater sustainability plan (GSP) for the Modesto Subbasin, which was submitted to DWR on January 31, 2022.

In January 2024, DWR determined the GSP to be incomplete and identified two deficiencies.

The County of Tuolumne and STRGBA GSAs submitted a revised GSP to DWR on July 12, 2024 (Revised GSP). The Revised GSP, which was approved by DWR on February 27, 2025, is responsive to DWR-defined Corrective Actions and incorporates additional details, analyses, projects, and management actions. The STRGBA GSA also committed to development and implementation of a Well Mitigation Program (Program) no later than January 31, 2026. This Well Mitigation Plan (Plan) provides the framework for the Program to address Management Action 7 described in the Revised GSP.

Initial conception of the Program is described in the Revised GSP. This description addresses domestic wells drilled in the Subbasin and the Sustainable Management Criteria (SMC), including Minimum Thresholds, which define undesirable results based on those wells affected by groundwater level declines. An analysis of the number of wells that could potentially go dry with additional groundwater level declines is described in Revised GSP Section 6.3.3.1. A 2 Draft Well Mitigation Plan
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description of the conceptual Program is provided in Revised GSP Section 8.1.3. In addition, Appendix C of the Revised GSP presents the Resolution Adopting a Revised Groundwater Sustainability Plan and Documenting the Commitment to Develop and Implement a Well Mitigation Program and Demand Management Actions in the Modesto Groundwater Subbasin.

The projects and management actions in the Revised GSP are intended to achieve sustainability and to reduce the potential for more wells to go dry. Modeling of the Projects and Management Actions (PMAs) in the Revised GSP demonstrates the feasibility of achieving sustainability by 2042. However, the STRGBA GSA recognizes that the GSP objectives in arresting groundwater level declines quickly could be hindered by significant drought cycles or other factors.

Purpose
The purpose of the Program is to provide mitigation for drinking water wells that have experienced adverse impacts due to declining regional groundwater levels associated with groundwater pumping during the GSP implementation period, since January 31, 2022. As described in the Modesto Subbasin Revised GSP (Section 6.3.3.1), an analysis was conducted that included all 4,563 water supply wells (municipal, industrial, domestic and agricultural) with available construction information in the Modesto Subbasin. This analysis showed potential impacts to water supply wells due to groundwater levels declining below established Minimum Thresholds (MTs). Potential impacts are expected to be limited to an interim period before planned Projects and Management Actions are fully implemented.

Drinking water wells are defined here as any well used to supply potable water to a household, including domestic wells that supply water for potable, minor irrigation, and other domestic purposes. It may also include state small water systems with between 5 and 14 connections.

The Revised GSP analysis also considered potential impacts to water quality and land subsidence. The analysis indicated that groundwater levels declining below the MTs during the implementation period would not likely have an impact on groundwater quality or on land subsidence. Consequently, this Program focuses on the direct impacts of drinking water wells going dry. In general, a well is considered to be going dry when water can no longer be pumped in sufficient quantity to meet domestic water demands because groundwater levels have fallen too low for the well to produce the required groundwater quantities. While the well is going dry, this typically results in diminished well yield or unreliable productivity. Once groundwater levels have fallen below the pump intake, the well is considered dry and does not produce any water.

In some cases, it may be possible to lower the pump to restore sufficient yield, but in other cases, the well must be deepened or a new, deeper well must be constructed. 3 Draft Well Mitigation Plan
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The purpose of this document is to describe a detailed process for mitigating impacts on drinking water wells adversely affected by declining groundwater levels during the GSP implementation period.

Program Management
This document establishes a framework for the mitigation of drinking water wells demonstrated to have been adversely affected by declining groundwater levels resulting from basin management activities during the SGMA implementation period. It has been developed in consideration of recommendations found in the following two public documents: Framework for a Drinking Water Well Impact Mitigation Program (Self-Help Enterprises, et al.) and Considerations for Identifying and Addressing Drinking Water Well Impacts (CA Department of Water Resources).

Partnerships with Existing Programs
There are local non-governmental programs that offer support for those affected by impaired access to drinking water within the Modesto Subbasin and across the San Joaquin Valley. During implementation of the Program, additional agencies or non-governmental organizations (NGOs) may be identified for potential collaboration that have interest in or authority over drinking water. The Valley Water Collaborative (VWC), for example, was formed to address nitrate groundwater contamination in private domestic wells used for drinking water in the Modesto and Turlock Subbasins. VWC provides well testing and replacement water or water treatment systems for nitrate contamination to all qualifying applicants, regardless of income level.

Self-Help Enterprises (SHE) is another NGO that offers emergency drinking water supplies, longterm mitigation support, and well stewardship educational resources for those who qualify under their program in Stanislaus County. SHE is a non-profit in the San Joaquin Valley that can provide water quality testing and emergency water service (including bottled water, outdoor tank and hauled water support) for eligible landowners (see https://www.selfhelpenterprises.org). When first contacted for assistance with a dry well, SHE establishes basic eligibility (e.g., well / land ownership); the eligible applicants must then submit an application to SHE with information on the well, property, and household, including income.

SHE provides emergency response (e.g., bottled water) within 24 hours and conducts an onsite well assessment. If a well replacement is warranted, the process includes completion of a grant agreement between SHE and the well owner. SHE provides a well modification/replacement grant for qualifying landowners who make 80% or less of the mean household income and are willing to not sell their property for a 5-year period after well replacement. Currently, the SHE grants (funded by the SWRCB) can amount to nearly $60,000.

The STRGBA GSA has coordinated this Program with SHE to minimize overlapping efforts. The STRGBA GSA will enter into an agreement to reimburse SHE for costs associated with program 4 Draft Well Mitigation Plan
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administration (including bilingual communications and well stewardship educational services), emergency and interim drinking water supplies, and long-term mitigation measures for all drinking water well applications that qualify for Modesto Subbasin mitigation. SHE serves as the contract mediator and lender for the applicants to make arrangements with contractors such as well drillers, pump companies, and plumbers to perform the long-term mitigation.

Program Development Committee
The STRGBA GSA has established a Well Mitigation Program Committee (WMP Committee) and will continue to appoint Committee members at its discretion. This WMP Committee will include representatives from STRGBA GSA member agencies. This WMP Committee will further develop and refine this Plan and recommend approval by the STRGBA GSA when modifications are needed. Upon approval of this Program by the STRGBA GSA, the WMP Committee will implement the Program as defined in the Plan.

Consistent with the stated purpose of this Program, the WMP Committee will have the responsibility for development and implementation of the Program, including but not limited to the following:
• Recommendations to the STRGBA GSA to engage in public outreach. • Recommendations to the STRGBA GSA to collaborate and contract with nongovernmental organizations to assist with outreach and/or well mitigation services. • Coordination with County Office of Emergency Services to provide well mitigation services.
• Development and oversight of the process for affected well owners to apply for mitigation.
• Development and oversight of the procedures for application review, decision, and appeal including decisions to provide complete or partial mitigation or to reject an application.
• Establishment of a Well Mitigation Technical Review Committee (TR Committee) to review each application for eligibility and potential mitigation. • Development and oversight of the process for well owner agreements for mitigation. • Keeping the STRGBA GSA informed of Program implementation and any claims that are received.

Technical Review Committee
The WMP Committee will establish a Technical Review Committee for each claim under this Program. The TR Committee will consist of the following members:
• A STRGBA GSA member agency representative where the well is located or a County representative if the well is within a non-district area or outside City limits. • A registered Environmental Health Specialist from the Stanislaus County Environmental Health Department or Environmental Resources Department. 5 Draft Well Mitigation Plan
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• At the WMP Committee and/or STRGBA GSA’s discretion and designation, a qualified technical representative (e.g., Professional Geologist or Engineer) that is not part of the STRGBA GSA member agency where the well is located.

The TR Committee will document the eligibility and submit a recommendation regarding STRGBA GSA mitigation to the WMP Committee.

Program Process
Eligibility
The Program is intended to address impacts to drinking water wells from declining groundwater levels associated with groundwater pumping during the GSP implementation period. Drinking water wells are defined as any well used to supply potable water to a household, including domestic wells that supply water for potable, landscape irrigation and other domestic purposes to several homes or parcels. It may also include state small water systems with between 5 and 14 connections. Mitigation for other types of supply wells (e.g., agricultural irrigation, industrial or stock wells) or for non-domestic uses may be considered under this Program by the STRGBA GSA on a case-by-case basis.

At this time, emergency drinking water supplies can be requested in Stanislaus County (and elsewhere in the San Joaquin Valley) via online request or telephone call to an NGO, such as VWC or SHE, which establishes basic information (e.g., well location) and eligibility to receive emergency bottled water under those programs and then requires additional information in an application.

This Program is being coordinated with non-governmental programs, such as SHE, in order to avoid duplication of efforts. As noted above, this Program has been developed to address well impacts due to declining groundwater levels associated with groundwater pumping during the GSP implementation period. To be eligible for mitigation assistance from the STRGBA GSA’s Program, the WMP Committee will require that an application from the well owner be submitted to SHE. SHE will then review the application to determine whether the well impacts (including failure or diminished well yields such that reasonable demands can no longer be met) occurred on or after January 31, 2022, and are attributable to sustainable groundwater management under the Subbasin GSP. January 31, 2022, is the date that the GSP was adopted by the STRGBA GSA and submitted to DWR.

The County of Tuolumne and STRGBA GSAs manage groundwater levels in the Modesto Subbasin in accordance with the GSP, including as it may be amended or revised in the future.

Wells eligible for the Program are those that have experienced adverse impacts due to declining groundwater levels as a result of basin management under the Subbasin GSP. 6 Draft Well Mitigation Plan
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At its discretion, the WMP Committee may also review an application and recommend that the Well Mitigation Technical Advisory Committee address other aquifer problems affecting a well, such as water quality problems caused by STRGBA GSA basin management actions that occurred after January 31, 2022. Water quality problems that are not the result of STRGBA GSA basin management actions will not be eligible for mitigation under this Program.

Application Process
The Program application will be available on the SHE website. A link to the application will also be posted on the STRGBA GSA website (STRGBA.org). If requested, designated STRGBA GSA and/or SHE staff will assist applicants with filing the application.

The Program Application Process involves the following steps that begin with completion and submittal of an application by the well owner.

Completion and Submittal of Application. The well owner will fill out an application form and submit it to SHE. The application will request available information from the well owner that includes, but may not be limited to, the following:
• Well owner and contact information
• Well location and age
• Well construction information such as location and access, total well depth, screen interval depths, annular seal depth, and pump type and depth • Inspection reports from a licensed well driller or pump and well contractor identifying the cause of the well failure
• Any other evidence in applicant’s possession that the well failure was caused by STRGBA GSA basin management actions occurring after January 31, 2022 (e.g., depth to water measurements from nearby wells, etc.)
Applicants are encouraged to provide evidence, such as a well assessment report from a licensed well driller identifying the cause of the well failure, other certification from a qualified professional, and all other evidence in applicant’s possession to demonstrate that the failure was caused by STRGBA GSA basin management actions. Applicants must allow onsite inspection of their well facilities as necessary by staff of SHE, the TR Committee and the WMP Committee to be eligible for assistance. A right-of-entry agreement granting SHE access to the property is required to be completed.

The WMP Committee is authorized to summarily reject any application if the well failure can be remedied by implementing mechanical or construction solutions that are not related to Subbasin management (such as replacing failed electrical or mechanical pump components with no need to re-drill the well). This Program does not apply to a well installed after January 31, 2022, if the well was installed with a screened interval depth shallower than minimum threshold levels as designated in the Modesto Subbasin GSP. 7 Draft Well Mitigation Plan
Modesto Subbasin Todd Groundwater
Limitations Period. All applications brought under this Program must have had well impacts that occurred after January 31, 2022, and were caused by STRGBA GSA basin management activities.

Applications for impacts that occurred between January 31, 2022, and the adoption of this Program must be submitted within six months of the date of adoption of this Program. The limitations period for applications submitted after the adoption of this policy will be the limitations process and period provided by the California Government Tort Claims Act (Government Code Section 810 and following).

Assessment of Eligibility. SHE will initially review the applications and if an application is potentially eligible for the STRGBA GSA’s Program, SHE will forward the application to the WMP Committee. The TR Committee, assigned by the WMP Committee, will then be responsible for reviewing applications (including attachments) to assess the applicant’s eligibility to receive mitigation under the Program. Participation in the STRGBA GSA’s Program will not be limited or otherwise dictated by the well owner’s income. The TR Committee will have the authority to conduct an independent investigation of the evidence (at their discretion and at the STRGBA GSA’s expense), including, but not limited to, engaging hydrogeologists and well drillers, well inspection and testing, research of county well records, and requesting records from the applicant.

The TR Committee will provide written documentation to the WMP Committee of its determination regarding the applicant’s eligibility for mitigation and a recommendation of whether to mitigate and how to mitigate. Upon concurrence with the TR Committee’s recommendation, the WMP Committee will forward this decision to SHE. Otherwise, should the WMP Committee decide that further review and discussion is warranted, the TR Committee’s determination and recommendation will be forwarded to the STRGBA GSA for final direction to SHE. In either case, SHE will communicate the final decision to the well owner.

The WMP Committee may decide to provide complete or partial mitigation for a particular application based on the TR Committee’s determination of whether the well failure was related to the STRGBA GSA’s groundwater management as opposed to other contributing factors, such as the construction of the well.

An applicant may appeal a decision of the WMP Committee by submitting a written appeal by email to the STRGBA GSA at [email protected] within 30 days of the decision. The appeal shall contain a copy of the original application, the decision, and a statement of the basis for the appeal. The STRGBA GSA Chair will include the appeal on the agenda for the next STRGBA GSA meeting and provide written notice and the agenda to the appellant. The STRGBA GSA will act on the appeal and issue a written decision. The decision of the STRGBA GSA will be final.

Well Owner Agreement. After application, eligibility, and mitigation development (coordinated with SHE), any mitigation must be accompanied by an agreement between the well owner and SHE. The agreement will include but is not limited to the following:
8 Draft Well Mitigation Plan
Modesto Subbasin Todd Groundwater
• Priority. The Program will be operated on a first-come, first-serve basis as of the date a completed and submitted application is received by SHE. • Well access agreement (consistent with SHE agreement). • Mitigation Award. To the extent sufficient funding exists, the maximum mitigation award provided under the Program will be $40,000. In no case, is the maximum mitigation award guaranteed and the STRGBA GSA retains exclusive control over the determination of the maximum mitigation award. The STRGBA GSA will be responsible for the maximum mitigation award or the actual cost of the mitigation, whichever is less. The well owner may seek additional and/or alternate funding beyond the mitigation provided by the Program. Eligible mitigation in excess of $40,000 will be reviewed by the TR Committee on a case-by-case basis with review of the following criteria:
a. Receipt and review of multiple bids with comparable construction means and methods yielding an estimated mitigation cost exceeding $40,000. b. System consolidation yielding new domestic water service to two or more domestic water users.
c. Construction means and methods review, including, but not limited to required depth and required casing diameter.
d. Occurrence of additional associated costs (e.g., pump replacement). • Grant term. SHE requires a 5-year grant term during which the well owner must (1) maintain continuous residence on the well site property (if owner occupied), and (2) not transfer the title of the property within 5 years, otherwise the grant would need to be repaid.
• Preferred Contractors. The STRGBA GSA intends that all analysis, inspection, and eligible mitigation be completed by competent and qualified contractors. SHE maintains a list of approved contractors for program participants to select from and requires the following from each contractor: a contractor application, W-9 Form, C57 contractor license for drillers, proof of workers compensation insurance, proof of general liability insurance, and Federal contractor suspension and debarment check.
• Recordation of Mitigation Award. Eligible mitigation provided under the Program for diminished yield (dry well) issues will only occur once per drinking water well and will run with the land. This Agreement will be recorded with the County of Stanislaus and will bind the well owner and/or their heirs and assigns. Recordation will not occur until mitigation is complete.
• Post-mitigation Responsibility. Once the mitigation work is completed, the well owner will be responsible for operation, maintenance, and repair of the water well. • Continuing Education. Through execution of the agreement with SHE, the well owner will acknowledge and confirm having successfully completed education on well maintenance (e.g., SHE’s education program).
• Monitoring. The well owner will agree to allow the STRGBA GSA, at the STRGBA GSA’s sole discretion, to access and monitor groundwater levels in the new or modified well. 9 Draft Well Mitigation Plan
Modesto Subbasin Todd Groundwater
The well owner will agree to the public use of groundwater level data that may be collected for the purposes of complying with SGMA or as deemed appropriate by the STRGBA GSA.
• Indemnification of the STRGBA GSA consistent with then applicable agreement. • Easement or land use permissions consistent with then applicable agreement. No mitigation, except for interim and emergency solutions, will commence until the well owner has executed an agreement with SHE.

Process for Establishing STRGBA GSA-Related Well Impacts The TR Committee will review the application provided by SHE via the WMP Committee and, with the authority to conduct an independent investigation, will provide a recommendation about the condition of the well and the cause(s) of the well failure. The TR Committee will consider other contributing factors, such as the condition and use of the well, or the condition of pumping equipment, in determining the degree to which an applicant is eligible for mitigation. The TR Committee will make a recommended determination of the cause of well failure and whether or not an application is eligible for mitigation, which the WMP Committee may adopt in its decision. The WMP Committee will consider the recommendation of the TR Committee and may also consider other contributing factors. Upon concurrence with the TR Committee’s recommendation, the WMP Committee will forward this decision to SHE.

Otherwise, should the WMP Committee decide that further review and discussion is warranted, the TR Committee’s determination and recommendation will be forwarded to the STRGBA GSA for final direction to SHE. In either case, SHE will communicate the final decision to the well owner. If appealed to the STRGBA GSA, the STRGBA GSA will take all relevant factors into consideration in making a final decision.

Process for Implementing Mitigation Measures
Mitigation measures may include emergency water supply, interim solutions, and long-term solutions. Emergency water supplies will be provided by SHE after receiving an eligible request and application. To continue emergency water supply or to access interim or long-term solutions funded by the STRGBA GSA, the landowner must provide authorization to allow for well access.

Emergency Water Supply
SHE will ensure that an emergency water supply is provided to all applicants who have submitted a complete application with a reasonable complaint for damages. An emergency water supply consists of bottled water intended to meet drinking water and cooking needs while the application is reviewed and processed. If the application is approved, SHE will ensure that an interim emergency water supply will continue at the STRGBA GSA’s expense until the mitigation is complete.
10 Draft Well Mitigation Plan
Modesto Subbasin Todd Groundwater
Interim Solution
Interim solutions may include ongoing deliveries of bottled drinking water and/or temporary provision and filling of a water tank (hauled water) to meet drinking water, hygiene, and cooking needs while the application is reviewed and processed. Every effort will be made to process applications in a timely manner and to provide adequate domestic water supply to applicants while applications are verified, site-specific mitigation eligibility and requirements are determined, and mitigation is implemented and completed. If the application is found to be ineligible under this plan, the WMP Committee and/or SHE may refer the application to another agency or program for additional assistance, if possible.

Long-term Solutions
Following review and initial approval of the application, the most appropriate long-term mitigation measure will be selected. Long-term mitigation measures may include setting the well pump at a deeper depth, replacing the well pump, deepening the well, or replacing the well (including destruction of the existing well). As an alternative to well replacement, a mitigation measure could involve connection to a nearby municipal or public water system. The TR Committee will make a recommendation for long-term mitigation. Upon concurrence with the TR Committee’s recommendation, the WMP Committee will forward this decision to SHE.

Otherwise, should the WMP Committee decide that further review and discussion is warranted, the TR Committee’s recommendation will be forwarded to the STRGBA GSA for final direction to SHE. In either case, SHE will communicate the final decision to the well owner. If appealed to the STRGBA GSA, the STRGBA GSA will take all relevant factors into consideration in making a final decision.

Plan Outreach
Plan Outreach will be coordinated with SHE or other consultant and the STRGBA GSA. The WMP Committee will recommend staff or representatives for the STRGBA GSA’s approval to engage in public outreach that will inform well owners and residents of their opportunity to request assistance under this Program, and how to apply for assistance.

Outreach during Program development may include, but is not limited to:
• Discussion of the Plan at public STRGBA GSA meetings and at workshops. • Establishment of Program-specific information on the STRGBA GSA website (English and Spanish) https://www.strgba.org/. This will include a link to the SHE website.

Outreach during Program implementation will be coordinated with SHE and include information about when and how to submit an application, and the subsequent assessment process. It will include the following:
11 Draft Well Mitigation Plan
Modesto Subbasin Todd Groundwater
• Maintenance of the Program-specific information on the STRGBA GSA website. • Regular update and discussion at public STRGBA GSA meetings. • Regular reporting in Annual Reports of mitigation efforts and accomplishments.

Funding and Anticipated Costs
A Well Mitigation Fund (Fund) has been established to finance program implementation. The purpose of the Fund is twofold: to support implementation of the Program as described above, and to provide funding for well mitigation in response to eligible applications at the discretion of the STRGBA GSA as described below.

Initial Funding. The Program is initially being funded by the STRGBA GSA as part of their respective annual budgets and apportioned between the STRGBA GSA using the existing annual budget allocation methodology.

Baseline Fund. To initiate implementation of the Program, the STRGBA GSA has established a baseline Well Mitigation Fund amounting to three hundred thousand dollars ($300,000).

Annual Funding. The STRGBA GSA has agreed to fund the Program on an annual basis as may be required to address the needs of the Program until groundwater sustainability is achieved. The STRGBA GSA member agencies will meet and confer in good faith to determine the appropriate funding mechanism, replenishment amount, and STRGBA GSA member allocation methodology prior to Fund replenishment. Funding for the Program will be recommended by the WMP Committee and approved by the STRGBA GSA.

According to DWR’s Dry Well Reporting System, 15 domestic wells were reported dry or failed since the GSP was adopted (13 in 2022, 2 in 2023, and 0 in 2024). However, it is unclear whether these dry or failed wells were due to GSA management of groundwater levels. As such, it is not possible to estimate the number of future eligible claims and annual costs.

It is anticipated that the Program funding will come from one, or a combination, of the following sources established by the Parties:
• STRGBA GSA funds
• One or more STRGBA GSA member agencies
• Funds generated through implementation of projects and management actions (e.g., fines and/or penalties)
• County/state/federal funding, as available
• Other sources, as identified.

Accounting. Annual funding will be placed in STRGBA GSA’s account. 12 Draft Well Mitigation Plan
Modesto Subbasin Todd Groundwater
Funding Cycle. The budget cycle of the Program will be on a calendar year basis.

Funding and Implementation Review. Not less than once per year, the STRGBA GSA will convene a joint meeting of WMP Committee to review Program implementation progress in that year and plan for Program implementation in the subsequent year.

In-Kind Services. Each STRGBA GSA member agency is likely to provide in-kind services and subsequently incur in-kind costs as part of continued Program development and management.

These costs will be the responsibility of each STRGBA GSA member agency unless otherwise agreed to in writing.

Supplemental Funding.

SHE provides a well modification/replacement grant for qualifying landowners who make 80% or less of the mean household income and are willing to not sell their property for a 5-year period after well replacement. Currently, the SHE grants (funded by the SWRCB) can amount to nearly $60,000. If an applicant does not qualify for mitigation through STRGBA GSA’s Program, then the applicant may be eligible for mitigation by SHE.

General Business 6c
December 18, 2025
Lonnie Statzer Public Works Director
City Council Staff Report
Resolution: Approving Resolution 2025-73, Approving Contract Change Order #1 and Accepting Improvements for Project No. 2025-07,” G Street Improvement Project” and Authorizing the City Engineer to File a Notice of Completion with the Stanislaus County Recorder’s Office.

SUMMARY:

City Council is being asked to accept the improvements and authorize the City Engineer to file a Notice of Completion with the Stanislaus County Recorder’s Office.

ANALYSIS:

This project was located on G Street between Church Street at Rose Way and Yosemite Boulevard.

This Project included pavement widening, sidewalk infill and pavement resurfacing on G Street and all work was performed within the existing City right-of-way. The sidewalk infill included the removal and replacement of 750 linear feet of sidewalk, 5 driveways, 855 linear feet of full frontage improvements (curb, gutter, sidewalk/driveway), and one (1) pedestrian inline ramp. The concrete repairs included removing and replacing two (2) non-compliant pedestrian ramps. The pavement work included several miscellaneous locations of repairs (9,000 square feet) and the road widening between Dorsey and Bentley (6,500 square feet). The final surface treatment throughout the Project limits was a 2-inch profile grind and overlay (79,000 square feet). For utility work, this Project included installation of a 24- inch French drain (160 linear feet), under the new sidewalk, with a drain inlet near the northeast corner of G and Bentley.
.

The table below provides the City Council of an accounting of funding approved to date; Action Scope of Work Approval Amount
Award of Bid Original Contract City Council $643,579.50 Change Order #1 Remove existing
pavement, Remove
existing concrete, 2”
AC/ 6”AB, 4” Concrete
Sidewalk, 6” Concrete
Driveway and 6”
Vertical Curb and
Gutter
City Council >10% $71,801.81
Final Contract Price $715,381.31
All work has been completed in accordance with the Plans, Specifications and Standard Plans. Staff recommends City Council approve Change Order #1 and accept the improvements and authorize the City Engineer to file a Notice of Completion with the Stanislaus County Recorder’s Office.

FISCAL IMPACT
Funding for this project came from CDBG Funding & Measure L Funding for fiscal year 2024/2025.

The project budget is as follows:

Expenses
Total Project Cost Construction
Contract Change Order #1
Construction
Engineering &
Inspection
Preliminary
Engineering
$758,170.56 $643,579.50 $71,801.81 $25,673.51 $17,115.74 Project Revenue Included in FY 2024/2025 Budget
Fund Fund Number Amount
**CDBG 280-460-8290 $580,034.38
Measure L 6320-320-9250 $178,136.18
Total $758,170.56
ENVIRONMENTAL REVIEW:

This project is categorically exempted according to Title 14, Chapter 3, Article 19 of the Guidelines for Implementation of the California Environmental Quality Act (CEQA), in accordance with Section 15301 “Existing Facilities.”
ALTERNATIVES:

1. Council could choose not to accept the NOC.

ATTACHMENTS:
• Resolution 2025-73
• Notice of Completion
• Change Order #1
RESOLUTION 2025-73

Page 1 of 2 ends

WATERFORD CITY COUNCIL
RESOLUTION # 2025-73
APPROVING RESOLUTION 2025-73, ACCEPTING IMPROVEMENTS FOR PROJECT NO. 2025-07, “G STREET IMPROVEMENT PROJECT” AND

AUTHORIZING THE CITY ENGINEER TO FILE A NOTICE OF COMPLETION WITH THE STANISLAUS COUNTY RECORDER’S OFFICE.

WHEREAS, the City Council of the City of Waterford previously approved the “G Street Improvement Project” bid documents; and
WHEREAS, on or around August 7, 2025, a Contract was duly executed by and between Central Valley Demolition. Contractor, and the City of Waterford, California, a Municipal Corporation to have certain public improvements constructed and installed to the satisfaction of the City Engineer; and
WHEREAS, it is the City Engineer’s opinion the improvements have been constructed and installed in accordance with the contract, approved specifications and plans; and WHEREAS, security securing the payment to the contractor, his subcontractors, and to persons furnishing labor, materials, or equipment may be released six (6) months from receipt by the City of the recorded Notice of Completion, provided no claims have been filed with the City; and
WHEREAS, the performance security to remain in effect for (1) year guaranteeing that the completed work remains satisfactory during the required one (1) year warranty period and may be released upon correction, by Contractor, of any defects in the work existing at the end of the warranty period.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATERFORD DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The City Council of the City of Waterford accepts the public improvements into the City of Waterford maintained infrastructure system, such having been inspected by the City Engineer of the City of Waterford.

Section 2. The City Council of the City of Waterford authorizes the City Engineer to prepare the Notice of Completion and cause same to be recorded in the Official Records of Stanislaus County, California.

Section 3. The adoption of this resolution does not release any improvement securities which have been provided in accordance with the above-referenced Contract.

Such shall remain in full force and effect as set forth above.

RESOLUTION 2025-73

Page 2 of 2 ends

PASSED, APPROVED, AND ADOPTED by the Waterford City Council of the City of Waterford at a regular meeting this 18th day of December 2025, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF WATERFORD
Charlie Goeken, Mayor
ATTEST: APPROVED AS TO FORM:

PATRICIA KRAUSE, CMC CORBETT J. BROWNING
City Clerk City Attorney

RECORDING REQUESTED BY

CITY OF WATERFORD
WHEN RECORDED MAIL TO:

City Engineer
City of Waterford
101 “E” Street
Waterford, California 95386
SPACE ABOVE THIS LINE FOR RECORDER’S USE
Notice of Completion
Notice is hereby given that:

1. The undersigned is a representative of the owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the owner is the City of Waterford.

3. The full address of the owner 101 E Street, Waterford, California, 95386

4. The nature of the title of the owner is: In fee.

5. A work of improvement on the property hereinafter described was completed on October 31, 2025.

6. The name of the contractor, for such work of improvement was Hensley’s Paving & General Engineering Inc.

7. The nature of the work of improvement was G Street Improvement Project.

8. The property on which said work of improvement was completed is in the city of Waterford, county of Stanislaus, state of California, and is described as follows: G Street between Church Street at Rose Way and Yosemite Boulevard.

9. The street address of said property is none.

I, Robert B. Marler, declare under penalty of perjury, under the laws of the State of California that the foregoing is true and correct.

Signing on behalf of City of Waterford
Dated: __ ___ By _________________________________________ Robert B. Marler, Waterford City Engineer

VERIFICATION:

I, Robert B. Marler, the undersigned, declare under penalty, under the laws of the State of California that I am the owner, or agent of the owner, of the interest or estate in the property described in the above notice; that I have read the notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Executed on ___ ____ , at Manteca, California.

Signing on behalf of City of Waterford

_________________________________________
Robert B. Marler, Waterford City Engineer
Change Order No. 1 Date: 11/4/2025
Project:

City Project Number: 2025-07 Federal Project Number: n/a Contractor: Hensley's Paving and General Engineering, Inc.

Quantity Unit Unit Price Cost
20,857.0 SF 0.39$ $ 8,134.23
546.0 SF 3.08$ $ 1,681.68
20,857.0 SF 4.50$ 93,856.50 $
76,550.0 SF (0.55) $ (42,284.00) $
(123.4) SF 12.00$ $ (1,480.80)
440.3 SF 14.00$ $ 6,164.20
114.6 LF 50.00$ $ 5,730.00
Total Change Order: $ 71,801.81
Original Contract / Bid Amount: $ 643,579.50
Amount of Previous Change Orders: $ -
Revised Contract Amount: $ 715,381.31
Recommended: Date: 11/4/2025
Accepted: Date:

Authorized: Date:

7. Increase Bid Item #8 - 6" Vertical Curb & Gutter

4. Partial Credit for Bid Item #5 for using standard
pavement instead of rubberized pavement

3. Increase Bid Item #4 - 2"AC/6"AB

2. Increase Bid Item #3 - Remove Existing Concrete

5. Decrease Bid Item #6 - 4" Concrete Sidewalk

6. Increase Bid Item #7 - 6" Concrete Driveway

1. Increase Bid Item #32 - Remove Existing Pavement

CHANGE ORDER
Reason for Change: (1) Final quantities were measured at the conclusion of the project and are shown below.

Description
G Street Improvements
City Engineer
Contractor
City Administrator
11/4/2025
Informational Items 8
December 18, 2025
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Informational Items.

SUMMARY:

Items included in this section provide City Council with updates on business not requiring a full report.

FISCAL IMPACT:

N/A
ANALYSIS:

All items under this category are considered for informational purpose only.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

N/A
ATTACHMENTS:
8a: City Project List
8b: MyWaterford Report
Streets
Name Owner Priority Estimated Cost Update
Yosemite Ave. Pedestrian Project (Caltrans) Michael Pitcock Lonnie Statzer High $6,000,000 (SHOPP) Complete
F Street Overlay Michael Pitcock
Lonnie Statzer High $1,500,000 (Measure L) Complete
F Street Improvements at Western Michael Pitcock
Lonnie Statzer High $300,000 (STBG and CMAQ) Complete
Dorsey, Pecan and Western Pedestrian and Roadway Improvements Michael Pitcock Lonnie Statzer High $300,000 (CDBG) Complete
Yosemite Pedestrian Improvements Reinway to Eucalyptus Michael Pitcock Lonnie Statzer High $946,000 (ATP) Complete
Yosemite at Pasadena Signal Improvements Michael Pitcock Lonnie Statzer High $600,000 (CMAQ) Complete
Skyline Road Improvements Michael Pitcock
Lonnie Statzer High $450,000 (STBG) Complete
E Street Improvements Michael Pitcock
Lonnie Statzer High $600,000 (SB1) In Construction. Waiting on Streetlights G Street Improvements Michael Pitcock
Lonnie Statzer High $600,000 (CDBG) Complete
Measure L Cape Seal Project Michael Pitcock
Lonnie Statzer High $960,000 (Measure L Complete
Tim Bell Pedestrian Improvements Michael Pitcock
Lonnie Statzer High $1,993,000 (ATP) Grant was approved/awarded to Waterford Housing Development
Name Owner Priority Estimated Cost Update
Bentley Estates Michael Pitcock High NA Property was listed for sale.

Reinway North of Moon School Annexation Michael Pitcock High NA Application received. The developer is looking at a potential 98 homes
Waterstone A Michael Pitcock High NA Final Map for 27 Single Family Homes Approved. Homes in Construction
City Projects
Waterstone C Michael Pitcock High NA
Tentative Map Approve for 52 Single Family
Homes. Public Improvements are in
Construction
Waterstone D Michael Pitcock High NA Tentative Map Application received for 37 Single Family Homes
Waterstone E Michael Pitcock High NA Tentative Map Application received for 19 Single Family Homes
Moe Jawad Michael Pitcock High NA Tentative Map for 53 Single Family Homes Approved
Lake Pointe Michael Pitcock High NA Application for Phase 1 received. The developer is looking at a potential 217 homes
Economic Development
Name Owner Priority Estimated Cost Update
F St and Yosemite Fuel Station Michael Pitcock High N/A Complete E Street Public Storage Michael Pitcock High N/A In Construction Facilities / Property
Name Owner Priority Estimated Cost Update
ADA Transition Plan Implementation Lonnie Statzer Low Varies Ongoing Local Hazardous Mitigation Plan Update Lonnie Statzer Low N/A Complete Council Chambers Equipment Upgrade Patricia Krause High $52,000 Complete Public Safety
Name Owner Priority Estimated Cost Update
License Plate Reader Program Michael Pitcock High
$10,000 up front and $3,300
monthly for maintenance and
monitoring.

Complete
Utilities
Name Owner Priority Estimated Cost Update
Water Rate Study Lonnie Statzer
Tina Envia High $40,000 Study approved. Prop 218 process in progress WWTP Biosolids Screening Upgrade - Self Help Enterprises Grant
Michael Pitcock
Lonnie Statzer High $500,000 Unfunded On Hold
Water System Consolidation - Hickman Michael Pitcock
Lonnie Statzer High $3,000,000 Unfunded City approved a $1.2 million loan with Ibank and awarded a construction contract.

Biosolids Removal 2024 Michael Pitcock
Lonnie Statzer High $250,000 Complete
Drying Bed Monitoring Well Michael Pitcock
Lonnie Statzer High $50,000 Complete
Tim Bell Water and Sewer Extension to Vineyard Michael Pitcock Lonnie Statzer High $2,500,000 (ARPA) Complete
WWTP Road Repair Michael Pitcock
Lonnie Statzer High $1,100,000 (FEMA) Complete
Parks and Trails
Name Owner Priority Estimated Cost Update
Triangle Parcel - Neighborhood Park Lonnie Statzer Low Unknown Application Submitted S. Reinway Sports Complex Lonnie Statzer Low Unfunded On hold (No Funding) Dog Park (Prop 68 Per Capita Grant) Lonnie Statzer High $250,000 Grant and Park Impact Fees Complete
Beard Park Improvements (Prop 68 Competitive Grant) Lonnie Statzer Low $1,000,000 Million Unfunded Grant Denied. Waiting to see if another cycle to apply is available.

Tennis (Pickle Ball) Court Remodel Lonnie Statzer High $200,000 Budgeted In Construction Community Center Remodel Michael Pitcock
Lonnie Statzer High $800,000 (General Fund) Complete
Other Projects
Name Owner Priority Estimated Cost Update
Adding Cameras at Community Center Lonnie Statzer High Undetermined at this time Complete Request # Topic Status Date Entered Description
467 Water - Other Issue Closed 11/25/2025
Customer came in and noticed her usage made a huge jump, can you check to make sure there is no leak. thank you. Helen (209) 585-9017
468 Potholes Open 11/26/2025
a resident came in to the office and let us know that there was a big pothole in the alley between Dorsey & Summers, would we be able to fill that in?
469 Graffiti Closed 11/30/2025 graffit on the walls in the alleyway. 470 Facility / Park Maintenance Closed 12/1/2025
the camera's on the exterior of the building have become blurry and may need to have their domes cleaned. Thanks!
471 Sprinklers / Irrigation - Streets Closed 12/1/2025
a resident came in and said there are some damaged sprinklers here that have been leaking and making it slippery to walk by.
472 Community Center Rentals Open 12/2/2025 FOR WATERFORD HIGH SCHOOL FORMAL - ENTERED BY SAMUEL LEE 473 Community Center Rentals Open 12/2/2025 ENTERED BY SAMUEL LEE 474 Water leaks Open 12/2/2025
Customer called in and said there is water coming up through the asphalt and collecting in the gutter. Rachael (209)499-6357
475 No Water Closed 12/4/2025 inquiring about water disruption and eta for activation 476 Water - Other Issue Open 12/4/2025
This meter has been reading 0 since July 2024. Can we change out meter/register when someone has a chance. They have not been charged for water consumption. Thank you! 477 Water - Other Issue Open 12/5/2025
Please check meter for any possible leaks, customer called to inquire about billing being higher than usual and the only difference is water usage. 12217 Kadota Ave #2. Meter #232375488. I can call her back. Maria (209)497-2615 *Spanish*
478 Abandoned vehicle Open 12/5/2025
Box truck that has been sitting on Kadota at Becky Way in road broken down for a month now. It is sitting out in the road with hood up and radiator out of truck. Itâ€™s an obstruction if you are turning off of Becky and you can not see oncoming traffic until you pull out into the road. I have seen car almost get hit because of this.

Waterford City CouncilDecember 18, 2025

Waterford City Council
December 18, 2025