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HomeMy WebLinkAboutCC Reso 2025-48 - Adopting Sewer Service Rate AdjustmentsRESOLUTION NO. 2025-48 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING SEWER SERVICE RATE ADJUSTMENTS FOR THE FIVE-YEAR PERIOD OCTOBER 1, 2025 THROUGH JUNE 30, 2030 WHEREAS: 1. The City of Ukiah operates and maintains a municipal wastewater collection and treatment system that must recover its costs from customer charges as a self-supporting enterprise fund; and 2. The report entitled "City of Ukiah 2025 Sewer Rate Study" prepared by Hildebrand Consulting, LLC, and the accompanying 2025 Sewer Financial Plan were presented to the City Council on July 16, 2025, and provide a comprehensive analysis of the sewer utility's revenues, expenses, reserve targets, and proposed rate adjustments; and 3. On July 16, 2025, the City Council adopted Resolution No. 2025-33 initiating proceedings under Article XIII D, Section 6 of the California Constitution (Proposition 218) and directed staff to mail written notice of the proposed sewer service rate adjustments to all affected property owners and customers of record at least 45 days in advance of the public hearing; and 4. Such written notices, in English and Spanish, were mailed the week of July 20, 2025, in compliance with Proposition 218, providing the amount of the proposed fee or charge, the basis for calculation, the reason for the charge, and the date, time, and location of the public hearing; and 5. On September 17, 2025, the City Council conducted the duly noticed public hearing, received the consultant's presentation, heard and considered all oral and written testimony, and tabulated all written protests; and 6. The City Council finds that written protests were not submitted by a majority of the affected parcels; and 7. The City Council further finds that the proposed sewer service rates comply with Article XIII D of the California Constitution in that (1) revenues will not exceed the cost to provide service; (2) revenues will not be used for any purpose other than that for which the rates are imposed; (3) the rates are proportional to the cost of service attributable to each parcel; and (4) the services are actually used by, or immediately available to, the parcels subject to the charge. NOW, THEREFORE, BE IT RESOLVED that: 1. Supersession of Prior Rates: This resolution supersedes and replaces all prior resolutions establishing sewer rates in the City of Ukiah. 2. Residential Users: "Residential users' are defined as a residential dwelling unit, consisting of each single-family dwelling, each occupiable unit in a duplex, tri-plex, four- plex, or apartment Page 1 of 4 complex, and each occupied space in a mobile home park. This user category shall pay a monthly Service Charge per dwelling unit at the rate established in Exhibit A. 0 3. Commercial Users. "Commercial users" are defined as all non-residential accounts, including public utilities and public agency facilities. This category shall pay a monthly Service Charge per Equivalent Sewer Service Flow Unit (ESSFU), calculated annually as the average winter water use of residential dwelling units during the months of January through March. A commercial account's ESSFU assignment shall be determined by dividing its average winter water usage by the ESSFU value, with a minimum of one (1) ESSFU per account. If a connection receives water from a source other than an established metered system, special metering or another approved method must be used to establish consumption. 4. Commercial Classifications: Commercial accounts shall be classified and charged in accordance with the following strength categories. Classification Description Examples Commercial 1 — Low strength users Professional offices, retail, Low Strength hospital/convalescent, schools/colleges, car wash, laundromat Commercial 2 — Moderate strength users Hotel without dining, service Moderate Strength station, auto repair shop Commercial 3 — Medium strength users Hotel with dining, market with food Medium Strength service, coffee/tea shop Commercial 4 — High strength users Restaurants, mortuary, bakery, High Strength high -strength industrial 5. Adoption of Rates: Sewer service charges for all categories of users shall be adjusted as set forth in Exhibit A — Sewer Rate Schedule, which is incorporated by reference and attached hereto. 6. Effective Date: The first rate adjustment shall take effect on October 1, 2025, with subsequent scheduled adjustments effective on July 1 of each fiscal year through July 1, 2029, unless superseded by further Council action. 7. The City Council reaffirms that the rates adopted herein are consistent with the findings of the 2025 Sewer Rate Study and Financial Plan, are necessary to recover the costs of providing service, and comply with all applicable provisions of state law, including Article Xlli D of the California Constitution and Government Code § 53756. Page 2 of 4 I I PASSED AND ADOPTED this 17th day of September 2025, by the following roll call vote: AYES: Councilmembers Rodin, Criss, Orozco, Sher, and Mayor Crane. NOES: None. ABSENT: None. ABSTAIN: None. Douglas F. Vane, Mayor ATTEST: niLLW- kX0-i4'Lawler, City Clerk I Page 3 of 4 Exhibit A - City of Ukiah Sewer Rate Schedule 0 October 1, July 1, July 1. July 1. July 1, Current Rates 2025 2026 2027 2028 2029 Monthly Service Charge': $59.71 $63.29 $65.82 $68A5 $71.19 $74.04 Consurnptions Rate (per HCF) Residential: $4.12 $4.58 $4.76 $4.95 $5.15 $5.36 Commerical 1: $4.32 $4.58 $4.76 $4.95 $5.15 $5.36 Commercial2: $4.71 $4.99 $5.19 $5A0 $5.62 $5.84 Commercial A: $9.39 $9.95 $10.35 $10.76 $11.19 $11.64 Commercial 4: $12.49 $13.24 $13.77 $1432 $14.89 $15.49 a I Page 4 of 4