Loading...
HomeMy WebLinkAbout2026-02-09 UVWA PacketPage 1 of 3 Water Executive Committee Special Meeting AGENDA Ukiah Valley Conference Center ♦ 200 South School Street ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/83268733029 Alternatively, you may view the meeting (without participating) by clicking on the date and name of the meeting at www.cityofukiah.com/meetings, then go to the media tab. February 9, 2026 - 5:00 PM 1. CALL TO ORDER AND ROLL CALL 2. PUBLIC HEARING 2.a. Conduct of Public Hearing for Proposed Water Rate Adjustments, Adoption of Written Determinations, and Direction to Adopt Separate Rate Resolutions Pursuant to Government Code Section 66016 (AB 2257) Recommended Action: It is recommended that the UVWA Executive Committee: 1. Conduct the public hearing for proposed water rate adjustments for the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District; 2. Receive and consider the written objections submitted in connection with the proposed water rate adjustments; 3. Determine and accept the final protest count for each service area pursuant to Proposition 218, based on the number of valid written protests received as compared to the total parcels subject to the proposed rates; 4. Adopt the written determinations responding to the objections pursuant to Government Code section 66016 (AB 2257); 5. Recommend adoption of the proposed water rate adjustments for the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District through separate rate adoption resolutions for each agency, subject to the protest count determination made at the conclusion of the public hearing; and 6. Direct that the written objections, written determinations, protest count determination, and adopted resolutions be included as part of the official administrative record. Attachments: 1. Objection Letters_Redacted 2. AB 2257 Determination Resolution w Exhibit 3. Rate_Resolution_Ukiah Page 1 of 57 Page 2 of 3 4. Rate_Resolution_Willow 5. Rate_Resolution_Millview 6. Rate_Resolution_Redwood_Valley 7. UVWA Public Hearing Feb 9 2025 12.11.25 abridged 3. APPROVAL OF MINUTES 3.a. Approval of the Minutes for the January 8, 2026, Regular Meeting. 4. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The Ukiah Valley Water Authority (UVWA) / Water Executive Committee Members welcomes input from the audience. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments on non-agenda items. If you wish to submit written comments, please provide information to the UVWA, located at 300 Seminary Avenue, Ukiah, CA, 95482. 5. NEW BUSINESS 6. UNFINISHED BUSINESS 7. ADMINISTRATIVE AND OPERATIONAL REPORTS 7.a. Report on Status of Application for SAFER Planning Grant. 7.b. General Management Report. 8. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS 9. SET NEXT MEETING DATE 9.a. Discussion, Consideration, and Scheduling of Next Regular Meeting for March 5, 2026, at 5:00 p.m., with the Meeting to be Held at the Ukiah Valley Conference Center, 200 South School Street, Ukiah, CA 95482. 10. CLOSED SESSION 10.a. Conference with Real Property Negotiators Property: 1850 Talmage Rd., Ukiah, CA 95482 Agency Negotiator: Jared Walker and Sean White Negotiating Parties: Ukiah Valley Water Authority, Member Agencies, and Rogina Municipal Water Company Under Negotiation: Price and Terms 10.b. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9 One Case 11. ADJOURNMENT Please be advised that the Ukiah Valley Water Authority (UVWA)/ Water Executive Committee needs to be notified 24 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. UVWA complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on Page 2 of 57 Page 3 of 3 this Agenda submitted to the UVWA Committee Members after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 48 hours in advance of the meeting; for handouts, please include 10 copies. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California; and at the Ukiah Valley Conference Center, located at 200 South School Street, Ukiah, California; not less than 24 hours prior to the meeting set forth on this agenda. Kristine Lawler, CMC/CPMC UVWA Clerk Dated: 2/6/26 Page 3 of 57 Page 1 of 4 Agenda Item No: 2.a. MEETING DATE/TIME: 2/9/2026 ITEM NO: 2026-42 WATER EXECUTIVE COMMITTEE STAFF REPORT SUBJECT: Conduct of Public Hearing for Proposed Water Rate Adjustments, Adoption of Written Determinations, and Direction to Adopt Separate Rate Resolutions Pursuant to Government Code Section 66016 (AB 2257) PREPARED BY: Dan Buffalo, Finance Director, Jared Walker, Redwood and Millview Water Districts General Manager PRESENTER: Dan Buffalo, Finance Director; Jared Walker, Water Resources Director ATTACHMENTS: 1. Objection Letters_Redacted 2. AB 2257 Determination Resolution w Exhibit 3. Rate_Resolution_Ukiah 4. Rate_Resolution_Willow 5. Rate_Resolution_Millview 6. Rate_Resolution_Redwood_Valley 7. UVWA Public Hearing Feb 9 2025 12.11.25 abridged Summary: The Ukiah Valley Water Authority (UVWA) Executive Committee is asked to conduct the required public hearing for proposed water rate adjustments for the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District, to receive and consider written protests and written objections submitted in connection with those proposed adjustments, to determine and accept the final protest count for each service area pursuant to Proposition 218, and to adopt written determinations pursuant to Government Code section 66016 (AB 2257). A total of five (5) objection letter files were received prior to or during the public hearing process. In addition, written protests were received pursuant to Proposition 218 and are reflected in the protest count determination. Objections were received from customers within the Millview County Water District (MCWD), Redwood Valley County Water District (RVCWD), and Willow County Water District (WCWD) service areas. All written objections have been reviewed, categorized, and evaluated for materiality under AB 2257. Written protests submitted pursuant to Proposition 218 have been counted and evaluated solely for purposes of determining whether a majority protest exists. Objections raising issues related to cost of service, proportionality, and rate-setting methodology require substantive written determinations, while objections raising procedural, policy, affordability, or legally incorrect assertions have been reviewed and may be addressed through acknowledgment and clarification. Background: Page 4 of 57 Page 2 of 4 The Ukiah Valley Water Authority provides water service through its member agencies, including the City of Ukiah, the Millview County Water District, the Redwood Valley County Water District, and the Willow County Water District. In order to ensure the continued safe, reliable, and financially sustainable operation of these systems, the UVWA prepared updated water financial plans and proposed water rate adjustments. In accordance with Proposition 218, notices of the proposed water rate adjustments were mailed to affected property owners and customers within the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District, and a public hearing was scheduled to receive oral and written protests. Consistent with Government Code section 66016 (AB 2257), written objections submitted prior to or during the hearing must be reviewed and addressed before final action on the proposed rates. Supporting documentation, including the UVWA water financial plans, rate schedules, and public hearing presentation materials, was made publicly available prior to the hearing. Discussion: Attachments and Exhibits The following documents are attached to and incorporated into this Staff Report by reference: 1. Written Objection Letters – All non-duplicated written objections received in connection with the public hearing. 2. Resolution Adopting Written Determinations Pursuant to Government Code Section 66016 (AB 2257) – Including the Objections and Protest Matrix as an exhibit. 3. City of Ukiah Water Rate Adoption Resolution. 4. Willow County Water District Water Rate Adoption Resolution. 5. Millview County Water District Water Rate Adoption Resolution. 6. Redwood Valley County Water District Water Rate Adoption Resolution. 7. Abridged Review of Presentation Given to All Boards and the UVWA Executive Committee Objections Received Staff received five (5) unique written objections after accounting for duplicate submissions, in connection with the public hearing for the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District. Objections were received from customers in the following service areas: • Millview County Water District: 1 unique objection • Redwood Valley County Water District: 2 unique objections • Willow County Water District: 2 unique objections Final protest counts by district will be confirmed at the conclusion of the public hearing and reflected in the final record. Pursuant to Proposition 218, each written protest is counted once for each affected parcel (one parcel gets one protest irrespective of how many protests are received applicable to the parcel), and the proposed rates may not be adopted for a service area if written protests are submitted by a majority of the parcels subject to the proposed rates. Only valid written protests received prior to the close of the public hearing are counted for purposes of this majority protest determination. The total number of parcels in each agency jurisdiction are noted below. If the protest threshold for an agency is exceeded (protests received total Page 5 of 57 Page 3 of 4 greater than 50% of all parcels in the agency jurisdiction), then the proposed rates for that agency cannot be adopted. The protest process would need to be repeated for new, higher rates to be adopted. Protest Count as of February 6, 2026 (to be completed following close of public hearing): Service Area Total Parcels Subject to Rate Valid Written Protests Received Protest Threshold City of Ukiah 5,018 27 2,510 Willow County Water District 1,146 29 574 Millview County Water District 1,777 66 889 Redwood Valley County Water District 1,885 38 943 Categorization of Objections For purposes of AB 2257 compliance, objections were grouped into the following categories: • Category A – Cost of Service, Nexus, and Proportionality • Category B – Methodology, Assumptions, and Rate Structure • Category C – Procedural, Notice, and Transparency Issues • Category D – Affordability, Equity, and Policy Concerns • Category E – Legal Misstatements or Incorrect Assertions Only objections in Categories A and B require substantive written determinations under AB 2257. Objections in Categories C through E were reviewed and considered but do not identify material defects in the proposed rates. Written Determinations Pursuant to Government Code Section 66016 (AB 2257) General Findings 1. Five (5) unique written objection letters received. 2. All written objections were reviewed and considered by the UVWA Executive Committee. 3. Written objections raising issues related to cost of service and rate-setting methodology require substantive determinations under AB 2257. 4. The written objections are attached to this staff report as exhibits and are incorporated into the administrative record. Category A — Cost of Service, Nexus, and Proportionality The Executive Committee finds that the proposed water rates are supported by the UVWA water financial plans, recover the reasonable cost of providing water service, establish a reasonable relationship between rates and service costs, avoid cross-subsidization between systems, and that fixed charges reasonably recover fixed system costs. The objections do not identify material defects in cost-of-service or proportionality. Category B — Methodology, Assumptions, and Rate Structure The Executive Committee finds that the assumptions and methodologies underlying the proposed rates are documented, reasonable, and lawful, that multi-year and phased rate adjustments are an accepted practice, and that the objections reflect policy disagreement rather than legal or methodological defects. Category C — Procedural, Notice, and Transparency Issues Page 6 of 57 Page 4 of 4 The Executive Committee finds that notice requirements were satisfied, supporting materials were made publicly available, and the record contains sufficient information to proceed. Category D — Affordability, Equity, and Policy Concerns The Executive Committee acknowledges affordability concerns but finds that applicable law requires rates to be based on cost of service rather than individual ability to pay. Category E — Legal Misstatements or Incorrect Assertions The Executive Committee finds that assertions regarding taxes, voter approval, or misuse of revenues are based on incorrect legal premises. Conclusion Based on the foregoing, the Executive Committee finds that all written objections have been reviewed and considered, that no objection identifies a material defect requiring modification of the proposed water rates, and that the proposed rates comply with applicable legal requirements. Recommended Action: It is recommended that the UVWA Executive Committee: 1. Conduct the public hearing for proposed water rate adjustments for the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District; 2. Receive and consider the written objections submitted in connection with the proposed water rate adjustments; 3. Determine and accept the final protest count for each service area pursuant to Proposition 218, based on the number of valid written protests received as compared to the total parcels subject to the proposed rates; 4. Adopt the written determinations responding to the objections pursuant to Government Code section 66016 (AB 2257); 5. Recommend adoption of the proposed water rate adjustments for the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District through separate rate adoption resolutions for each agency, subject to the protest count determination made at the conclusion of the public hearing; and 6. Direct that the written objections, written determinations, protest count determination, and adopted resolutions be included as part of the official administrative record. Page 7 of 57 Page 8 of 57 Page 9 of 57 Page 10 of 57 Page 11 of 57 Page 12 of 57 Page 13 of 57 Page 14 of 57 Page 15 of 57 Page 16 of 57 Page 17 of 57 Page 18 of 57 Page 19 of 57 RESOLUTION NO. ____ A RESOLUTION OF THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE ADOPTING WRITTEN DETERMINATIONS RESPONDING TO OBJECTIONS PURSUANT TO GOVERNMENT CODE SECTION 66016 (AB 2257) WHEREAS, The Ukiah Valley Water Authority ("UVWA") provides wholesale and coordinated water service through its member agencies, including the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District; and WHEREAS, The UVWA Executive Committee conducted a public hearing pursuant to Proposition 218 on February 9, 2026 regarding proposed water rate adjustments applicable to the City of Ukiah, Willow County Water District, Millview County Water District, and Redwood Valley County Water District; and WHEREAS, In connection with the Proposition 218 public hearing, written objections were submitted prior to the hearing process; and WHEREAS, Government Code section 66016 (commonly referred to as AB 2257) requires the legislative body of a local agency to consider written objections to proposed fees or charges and to issue written determinations responding to those objections; and WHEREAS, The UVWA Executive Committee has reviewed and considered all written objections received, together with the administrative record, including the UVWA water financial plans, rate schedules, public hearing materials, and the staff report prepared for this item; and WHEREAS, Staff prepared an Objections and Protest Matrix summarizing each objection, the category of objection, and the recommended written determination, which matrix is attached hereto as Exhibit A and incorporated herein by this reference; Attachment 2 Page 20 of 57 NOW, THEREFORE, BE IT RESOLVED by the Ukiah Valley Water Authority Executive Committee as follows: 1. Consideration of Objections. The Executive Committee hereby finds that all written objections submitted in connection with the proposed water rate adjustments have been received, reviewed, and considered in compliance with Government Code section 66016. 2. Adoption of Written Determinations. The Executive Committee hereby adopts the written determinations responding to the objections, as set forth in the Staff Report and summarized in the Objections and Protest Matrix attached as Exhibit A to this Resolution. 3. Findings. The Executive Committee finds that: o The proposed water rates are supported by the UVWA water financial plans and recover the reasonable cost of providing water service; o The rate design and methodologies establish a reasonable relationship between the rates charged and the cost of service attributable to customer classes and systems; o The objections do not identify material defects in the proposed rates under Proposition 218 or Government Code section 66016; and o Procedural, affordability, policy, or legally incorrect assertions raised in certain objections do not require modification or withdrawal of the proposed rates. 4. Administrative Record. This Resolution, together with the Staff Report, written objections, and Exhibit A, shall be included as part of the official administrative record for the proposed water rate adjustments. 5. No Rate Adoption. Adoption of this Resolution constitutes adoption of written determinations only and does not itself adopt water rates, which shall be considered through separate rate adoption resolutions for each affected agency. Attachment 2 Page 21 of 57 PASSED AND ADOPTED by the Ukiah Valley Water Authority Executive Committee on February 9, 2026. _____________________________________________________ Tom Schoeneman, Chair UVWA Executive Committee ATTEST: _____________________________________________________ Kristine Lawler, Clerk UVWA Executive Committee Attachment 2 Page 22 of 57 Exhibit A Category Category Definition Specific Objection District Material Under AB 2257?Recommended Determination A Cost of service, nexus, and proportionality Rates exceed cost of service / lack proportionality RVCWD Yes RVCWD has met its burden of proving that the proposed water rates proportionately recover costs from ratepayers based on the cost to provide service as demonstrated by the 2025 Water Rate Study, which can be found here: https://cityofukiah.com/utility- services/ A Cost of service, nexus, and proportionality Rates exceed cost of service / lack proportionality RVCWD Yes RVCWD has met its burden of proving that the proposed water rates proportionately recover costs from ratepayers based on the cost to provide service as demonstrated by the 2025 Water Rate Study, which can be found here: https://cityofukiah.com/utility- services/ A Cost of service, nexus, and proportionality Parcel-level proof required RVCWD No RVCWD has met its burden of proving that the proposed water rates proportionately recover costs from ratepayers based on the cost to provide service as demonstrated by the 2025 Water Rate Study, which can be found here: https://cityofukiah.com/utility- services/ A Cost of service, nexus, and proportionality Cross-subsidization between systems RVCWD Yes The City of Ukiah as Administrative Agent to UVWA, on behalf of RVCWD, maintains its accounts in accordance with Generally Accepted Accounting Principles (GAAP) for the revenue received and expenses incurred in providing water service to its customers, which includes ensuring water rate revenue in one system is not used to pay for costs of other systems for which it receives no commensurate benefit. A Cost of service, nexus, and proportionality Cross-subsidization between systems RVCWD Yes The City of Ukiah as Administrative Agent to UVWA, on behalf of RVCWD, maintains its accounts in accordance with Generally Accepted Accounting Principles (GAAP) for the revenue received and expenses incurred in providing water service to its customers, which includes ensuring water rate revenue in one system is not used to pay for costs of other systems for which it receives no commensurate benefit. A Cost of service, nexus, and proportionality Fixed monthly charges not tied to fixed costs RVCWD Yes RVCWD has met its burden of proving that the proposed water rates proportionately recover costs from ratepayers based on the cost to provide service as demonstrated by the 2025 Water Rate Study, which can be found here: https://cityofukiah.com/utility- services/ B Methodology, assumptions, and rate structure Financial assumptions unsupported or speculative RVCWD Yes The proposed rates are based on a financial plan that uses reasonable assumptions to estimate the cost of providing water service. B Methodology, assumptions, and rate structure Financial assumptions unsupported or speculative RVCWD Yes The proposed rates are based on a financial plan that uses reasonable assumptions to estimate the cost of providing water service. B Methodology, assumptions, and rate structure Capital projects insufficiently disclosed RVCWD Limited The proposed rates are based on a financial plan that uses reasonable assumptions to estimate the cost of providing water service. B Methodology, assumptions, and rate structure Capital projects insufficiently disclosed RVCWD Limited The proposed rates are based on a financial plan that uses reasonable assumptions to estimate the cost of providing water service. B Methodology, assumptions, and rate structure Front-loaded rate increases unreasonable RVCWD Limited The proposed rates are based on a financial plan that uses reasonable assumptions to estimate the cost of providing water service. Attachment 2 Page 23 of 57 Exhibit A B Methodology, assumptions, and rate structure Multi-year increases excessive WCWD No The proposed rates are based on a financial plan that uses reasonable assumptions to estimate the cost of providing water service. B Methodology, assumptions, and rate structure Magnitude and duration excessive WCWD No Affordability concern; no cost-of-service defect. C Procedural, notice, and transparency issues Insufficient access to rate study / financial plans RVCWD Limited Documents posted at https://cityofukiah.com/utility-services/ prior to hearing. C Procedural, notice, and transparency issues Insufficient access to rate study / financial plans RVCWD Limited Documents posted at https://cityofukiah.com/utility-services/ prior to hearing. C Procedural, notice, and transparency issues Rate study outdated or unavailable WCWD Limited Current financial plans govern this rate action. C Procedural, notice, and transparency issues Notice insufficient for evaluation RVCWD Limited Notices summarized rates and directed public to website. C Procedural, notice, and transparency issues Request for continuance or deferral RVCWD No Continuance discretionary; record sufficient. C Procedural, notice, and transparency issues Request for continuance or deferral RVCWD No Continuance discretionary; record sufficient. D Affordability, equity, and policy concerns Rates unaffordable / hardship MCWD No Affordability concerns acknowledged; policy issue. D Affordability, equity, and policy concerns Rates unaffordable / seniors / fixed income WCWD No Policy concern only. D Affordability, equity, and policy concerns Rates unaffordable / magnitude excessive WCWD No Policy disagreement. D Affordability, equity, and policy concerns Consolidation unfair or improper MCWD No Governance issue outside AB 2257 scope. D Affordability, equity, and policy concerns Consolidation unfair or improper WCWD No Governance issue outside AB 2257 scope. E Legal misstatements or incorrect assertions Rates are taxes WCWD No Incorrect legal premise; Prop 218 applies. E Legal misstatements or incorrect assertions Two-thirds vote required WCWD No No voter approval required for water rates. E Legal misstatements or incorrect assertions Rates used to backfill City budget WCWD No Utility revenues restricted to water purposes. E Legal misstatements or incorrect assertions Improper sharing of water revenues WCWD No Financial plans show system-specific use. SUMMARY NOTES Unique written objection letters 5 Unique objection sets requiring response 5 Objection categories requiring substantive AB 2257 response Categories A and B only Objector(s) Joyce & Pierre Archain Raymond, Priscilla & Stephanie Yeh; Six Madley Letters by District: MCWD (Millview) RVCWD (Redwood Valley) WCWD (Willow)Jim Donnelly; Melissa Dale Attachment 2 Page 24 of 57 RESOLUTION NO. ____ A RESOLUTION OF THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE ADOPTING WATER RATE ADJUSTMENTS FOR THE CITY OF UKIAH FOLLOWING COMPLETION OF A PROPOSITION 218 PUBLIC HEARING AND CONSIDERATION OF WRITTEN DETERMINATIONS PURSUANT TO GOVERNMENT CODE SECTION 66016 (AB 2257) WHEREAS, The City of Ukiah owns and operates a municipal water utility and is a member agency of the Ukiah Valley Water Authority ("UVWA"); and WHEREAS, The Ukiah Valley Water Authority Executive Committee conducted a Proposition 218 public hearing on February 9, 2026, regarding proposed water rate adjustments applicable to the City of Ukiah; and WHEREAS, Written objections submitted in connection with the proposed rate adjustments were reviewed and written determinations were adopted by the Ukiah Valley Water Authority Executive Committee pursuant to Government Code section 66016 (AB 2257); and WHEREAS, The proposed water rate schedule for the City of Ukiah is set forth in Exhibit A to this Resolution and is based on the UVWA water financial plans and related cost-of-service analyses; NOW, THEREFORE, BE IT RESOLVED THAT THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE HEREBY: 1.Finds that the Proposition 218 public hearing conducted on February 9, 2026, has been completed in compliance with applicable law. 2.Finds that the written determinations adopted pursuant to Government Code section 66016 support adoption of the proposed water rates. 3.Adopts the water rate schedule for the City of Ukiah as set forth in Exhibit A, effective as specified therein. Attachment 3 Page 25 of 57 4. Directs staff to implement the adopted rates and include this Resolution in the administrative record. PASSED AND ADOPTED on February 9, 2026. __________________________________________________________ Tom Schoeneman, Chair Ukiah Valley Water Authority Executive Committee ATTEST: __________________________________________________________ Kristine Lawler, Clerk Ukiah Valley Water Authority Executive Committee Attachment 3 Page 26 of 57 Exhibit A Water Rate Schedule: City of Ukiah Current March 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 Water Usage Rate ($/CCF) All Water Usage $4.18 $4.43 $4.61 $4.79 $4.98 Monthly Service Charge 3/4" meter $51.30 $54.38 $56.56 $58.82 $61.17 1" meter $82.15 $87.08 $90.56 $94.18 $97.95 1 1/2" meter $158.61 $168.13 $174.86 $181.85 $189.12 2" meter $250.72 $265.76 $276.39 $287.45 $298.95 3" meter $465.81 $493.76 $513.51 $534.05 $555.41 4" meter $773.02 $819.40 $852.18 $886.27 $921.72 6" meter $1,540.35 $1,632.77 $1,698.08 $1,766.00 $1,836.64 Attachment 3 Page 27 of 57 RESOLUTION NO. ____ A RESOLUTION OF THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE ADOPTING WATER RATE ADJUSTMENTS FOR THE WILLOW COUNTY WATER DISTRICT FOLLOWING COMPLETION OF A PROPOSITION 218 PUBLIC HEARING AND CONSIDERATION OF WRITTEN DETERMINATIONS PURSUANT TO GOVERNMENT CODE SECTION 66016 (AB 2257) WHEREAS, The Willow County Water District ("WCWD") owns and operates a water utility and is a member agency of the Ukiah Valley Water Authority ("UVWA"); and WHEREAS, The Ukiah Valley Water Authority Executive Committee conducted a Proposition 218 public hearing on February 9, 2026, regarding proposed water rate adjustments applicable to the WCWD; and WHEREAS, Written objections submitted in connection with the proposed rate adjustments were reviewed and written determinations were adopted by the Ukiah Valley Water Authority Executive Committee pursuant to Government Code section 66016 (AB 2257); and WHEREAS, The proposed water rate schedule for the WCWD is set forth in Exhibit A to this Resolution and is based on the UVWA water financial plans and related cost-of-service analyses; NOW, THEREFORE, BE IT RESOLVED THAT THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE HEREBY: 1.Finds that the Proposition 218 public hearing conducted on February 9, 2026, has been completed in compliance with applicable law. 2.Finds that the written determinations adopted pursuant to Government Code section 66016 support adoption of the proposed water rates. 3.Adopts the water rate schedule for the WCWD as set forth in Exhibit A, effective as specified therein. Attachment 4 Page 28 of 57 4. Directs staff to implement the adopted rates and include this Resolution in the administrative record. PASSED AND ADOPTED on February 9, 2026. __________________________________________________________ Tom Schoeneman, Chair Ukiah Valley Water Authority Executive Committee ATTEST: __________________________________________________________ Kristine Lawler, Clerk Ukiah Valley Water Authority Executive Committee Attachment 4 Page 29 of 57 Exhibit A Water Rate Schedule: Willow County Water District Existing March 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 Water Usage Rates (per TGAL) Residential Zone 1 $2.36 $2.81 $3.15 $3.53 $3.95 Commercial $2.36 $2.81 $3.15 $3.53 $3.95 Residential Zone 2 $3.38 $4.02 $4.50 $5.04 $5.64 Residential Zone 3 $4.08 $4.86 $5.44 $6.09 $6.82 Residential Zone 4 $4.58 $5.45 $6.10 $6.83 $7.65 Irrigation $2.36 $2.81 $3.15 $3.53 $3.95 Fixed Monthly Base Charges 3/4"$24.78 $29.49 $33.03 $36.99 $41.43 1"$39.94 $47.53 $53.23 $59.62 $66.77 1.5"$77.85 $92.64 $103.76 $116.21 $130.16 2" $123.33 $146.76 $164.37 $184.09 $206.18 3"$229.47 $273.07 $305.84 $342.54 $383.64 4"$381.08 $453.49 $507.91 $568.86 $637.12 Attachment 4 Page 30 of 57 RESOLUTION NO. ____ A RESOLUTION OF THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE ADOPTING WATER RATE ADJUSTMENTS FOR THE MILLVIEW COUNTY WATER DISTRICT FOLLOWING COMPLETION OF A PROPOSITION 218 PUBLIC HEARING AND CONSIDERATION OF WRITTEN DETERMINATIONS PURSUANT TO GOVERNMENT CODE SECTION 66016 (AB 2257) WHEREAS, The Millview County Water District ("MCWD") owns and operates a water utility and is a member agency of the Ukiah Valley Water Authority ("UVWA"); and WHEREAS, The Ukiah Valley Water Authority Executive Committee conducted a Proposition 218 public hearing on February 9, 2026, regarding proposed water rate adjustments applicable to the MCWD; and WHEREAS, Written objections submitted in connection with the proposed rate adjustments were reviewed and written determinations were adopted by the Ukiah Valley Water Authority Executive Committee pursuant to Government Code section 66016 (AB 2257); and WHEREAS, The proposed water rate schedule for the MCWD is set forth in Exhibit A to this Resolution and is based on the UVWA water financial plans and related cost-of-service analyses; NOW, THEREFORE, BE IT RESOLVED THAT THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE HEREBY: 1.Finds that the Proposition 218 public hearing conducted on February 9, 2026, has been completed in compliance with applicable law. 2.Finds that the written determinations adopted pursuant to Government Code section 66016 support adoption of the proposed water rates. 3.Adopts the water rate schedule for the MCWD as set forth in Exhibit A, effective as specified therein. Attachment 5 Page 31 of 57 4. Directs staff to implement the adopted rates and include this Resolution in the administrative record. PASSED AND ADOPTED on February 9, 2026. __________________________________________________________ Tom Schoeneman, Chair Ukiah Valley Water Authority Executive Committee ATTEST: __________________________________________________________ Kristine Lawler, Clerk Ukiah Valley Water Authority Executive Committee Attachment 5 Page 32 of 57 Exhibit A Water Rate Schedule: Millview County Water District Current March 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 Water Usage Rate ($/TGAL) All customers $3.42 $3.94 $4.49 $5.12 $5.84 Monthly Service Charge 5/8" Meter $15.72 $18.08 $20.61 $23.50 $26.79 3/4" Meter $21.64 $24.89 $28.37 $32.34 $36.87 1" Meter $33.46 $38.48 $43.87 $50.01 $57.01 1.5" Meter $63.01 $72.46 $82.60 $94.16 $107.34 2" Meter $98.48 $113.25 $129.11 $147.19 $167.80 3" Meter $181.23 $208.41 $237.59 $270.85 $308.77 4" Meter $299.46 $344.38 $392.59 $447.55 $510.21 6" Meter $595.01 $684.26 $780.06 $889.27 $1,013.77 8" Meter $949.67 $1,092.12 $1,245.02 $1,419.32 $1,618.02 10" Meter $1,363.45 $1,567.97 $1,787.49 $2,037.74 $2,323.02 Private Fire Service $25.00 $28.75 $32.78 $37.37 $42.60 Temp. Construction Service $44.63 $51.32 $58.50 $66.69 $76.03 Attachment 5 Page 33 of 57 RESOLUTION NO. ____ A RESOLUTION OF THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE ADOPTING WATER RATE ADJUSTMENTS FOR THE REDWOOD VALLEY COUNTY WATER DISTRICT FOLLOWING COMPLETION OF A PROPOSITION 218 PUBLIC HEARING AND CONSIDERATION OF WRITTEN DETERMINATIONS PURSUANT TO GOVERNMENT CODE SECTION 66016 (AB 2257) WHEREAS, The Redwood Valley County Water District ("RVWD") owns and operates a water utility and is a member agency of the Ukiah Valley Water Authority ("UVWA"); and WHEREAS, The Ukiah Valley Water Authority Executive Committee conducted a Proposition 218 public hearing on February 9, 2026, regarding proposed water rate adjustments applicable to the RVWD; and WHEREAS, Written objections submitted in connection with the proposed rate adjustments were reviewed and written determinations were adopted by the Ukiah Valley Water Authority Executive Committee pursuant to Government Code section 66016 (AB 2257); and WHEREAS, The proposed water rate schedule for the RVWD is set forth in Exhibit A to this Resolution and is based on the UVWA water financial plans and related cost-of-service analyses; NOW, THEREFORE, BE IT RESOLVED THAT THE UKIAH VALLEY WATER AUTHORITY EXECUTIVE COMMITTEE HEREBY: 1.Finds that the Proposition 218 public hearing conducted on February 9, 2026, has been completed in compliance with applicable law. 2.Finds that the written determinations adopted pursuant to Government Code section 66016 support adoption of the proposed water rates. 3.Adopts the water rate schedule for the RVWD as set forth in Exhibit A, effective as specified therein. Attachment 6 Page 34 of 57 4. Directs staff to implement the adopted rates and include this Resolution in the administrative record. PASSED AND ADOPTED on February 9, 2026. __________________________________________________________ Tom Schoeneman, Chair Ukiah Valley Water Authority Executive Committee ATTEST: __________________________________________________________ Kristine Lawler, Clerk Ukiah Valley Water Authority Executive Committee Attachment 6 Page 35 of 57 Exhibit A Water Rate Schedule: Redwood Valley County Water District Current March 1, 2026 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 Water Usage Rate ($/TGAL) Domestic $6.91 $8.98 $10.06 $10.66 $10.98 $11.31 Irrigation $0.92 $1.20 $1.34 $1.42 $1.46 $1.50 Monthly Service Charge Non-Potable Meters 2" Meter $59.43 $77.26 $86.53 $91.72 $94.47 $97.30 4" Meter $180.94 $235.22 $263.45 $279.26 $287.64 $296.27 6" Meter $359.62 $467.51 $523.61 $555.03 $571.68 $588.83 Domestic Meters Residential Dwelling Units $28.08 $36.50 $40.88 $43.33 $44.63 $45.97 3/4" and 1" Meters $28.08 $36.50 $40.88 $43.33 $44.63 $45.97 2" Meter $84.90 $110.37 $123.61 $131.03 $134.96 $139.01 3" Meter $167.57 $217.84 $243.98 $258.62 $266.38 $274.37 4" Meter $260.57 $338.74 $379.39 $402.15 $414.21 $426.64 Attachment 6 Page 36 of 57 Ukiah Valley Water Authority (UVWA)2025 Rate Increase Public Hearing February 9, 2026 Attachment 7 Page 37 of 57 2 Agenda 1.Ukiah Valley Water Authority 2.Rate Setting Process 3.Financial Plans & Proposed Rates Increases •City of Ukiah •Millview •Redwood Valley •Willow Attachment 7 Page 38 of 57 3 Ukiah Valley Water Authority Joint Powers Authority (JPA) between 5 water utilities: -City of Ukiah -Calpella County Water District -Millview County Water District -Redwood Valley County Water District -Willow County Water District The City provides each member agency with operating and administrative services through a Joint Services Agreement (JSA). For now, each utility will maintain a separate accounting of finances and reserves. Calpella did not participate in the current rate study since a study was completed in 2024. Attachment 7 Page 39 of 57 The Rate Setting Process Compares the revenues of the utility to its expenses to determine the overall level of rate adjustment Equitably allocates the revenue requirements between the various customer classes of service Design rates for each class of service to meet the revenue needs of the utility, along with any other rate design goals and objectives Revenue Requirements Cost-of-Service Rate Design 4* While the current project phase is focused solely on revenue requirements, UVWA will continue to actively work towards updating the cost-of-service analysis and eventually developing consolidated rates for UVWA * Attachment 7 Page 40 of 57 5 Legal Requirements for Setting Water Rates In California Proposition 218 (Article XIIID, Section 6 of California Constitution) •Revenues shall not exceed funds required to provide service; nor used for another purpose •Amount shall not exceed the proportional cost of the service attributable to the parcel •Service must be actually used or immediately available •Approval process includes 45-day notice, public hearing, and written majority protest. Does not require a voting process (unlike taxes). Attachment 7 Page 41 of 57 6 City of Ukiah Water Utility Capital Spending Recycled Water Phase 4 Average annual budget = $1.9 million Attachment 7 Page 42 of 57 City of Ukiah Water UtilityFinancial Forecast & Proposed Rate Revenue Increases 7 Non Rate Revenue Operating Expenses Debt Service Existing Rate Revenue Cash Capital Additional Rate Revenue Debt Service FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 Rate Revenue Increase:6.0% 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Debt Coverage Ratio:2.12 1.59 1.62 1.54 1.59 1.65 1.78 1.84 1.91 1.98 Proposed Forecasted $0 $2 $4 $6 RE S E R V E S ( $ M ) Projected Fund Balance Minimum Reserves Target Reserves $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 TO T A L R E V E N U E / E X P E N S E S ($ M ) Ex p e n s e s Re v e n u e s Attachment 7 Page 43 of 57 8 Millview County Water DistrictCapital Spending Average Annual Spending = $890 thousand $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Th o u s a n d s Past Cash Budgeted Spending Attachment 7 Page 44 of 57 Millview County Water DistrictFinancial Forecast & Proposed Rate Revenue IncreasesWith proposed capital spending ($890k per year) 9 Non Rate Revenue Operating Expenses Debt Service Existing Rate Revenue Cash Capital Additional Rate Revenue Debt Service Attachment 7 Page 45 of 57 10 Redwood Valley County Water DistrictCapital Spending Proposed Average Annual Spending = $270 thousand for five years, then $370 thousand for five years $0 $100 $200 $300 $400 $500 Th o u s a n d s Budgeted Spending Actual Spending Attachment 7 Page 46 of 57 Redwood Valley County Water DistrictFinancial Forecast & Rate Revenue Increases With proposed capital spending ($270K per year, then $370K per year) 11 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 Rate Revenue Increase:30.0% 12.0% 6.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Proposed Forecasted $0.0 $1.0 $2.0 RE S E R V E S ($ M ) Projected Fund Balance Minimum Reserves Target Reserves $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 TO T A L R E V E N U E / E X P E N S E S ($ M ) E x p e n s e s Re v e n u e s Attachment 7 Page 47 of 57 12 Willow County Water DistrictCapital Spending Proposed Average Annual Spending = $226 thousand $0 $50 $100 $150 $200 $250 $300 $350 Th o u s a n d s Budgeted Spending Actual Spending Attachment 7 Page 48 of 57 Willow County Water DistrictFinancial Forecast & Proposed Rate Revenue Increases 13* Assumes sale of fleet for $200K and sale of building for $500K * FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 Rate Revenue Increase 19.0% 0.0% 12.0% 12.0% 12.0% 5.0% 5.0% 5.0% 5.0% 5.0% ForecastedProposed $0.0 $0.5 $1.0 $1.5 RE S E R V E S ($ M ) Projected Fund Balance Minimum Reserves Target Reserves $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 TO T A L R E V E N U E / E X P E N S E S ( $ M ) Re v e n u e s Ex p e n s e s Non Rate Revenue Operating Expenses Existing Rate Revenue Cash Capital Additional Rate Revenue Attachment 7 Page 49 of 57 14 Summary of Proposed Water Rate Increasesfor UVWA member agencies March 1, 2026 July 1, 2026 July 1, 2027 July 1, 2028 July 1, 2029 City of Ukiah 6.0% 0.0% 4.0% 4.0% 4.0% Millview 15.0% 0.0% 14.0% 14.0% 14.0% Redwood Valley 30.0% 12.0% 6.0% 3.0% 3.0% Willow 19.0% 0.0% 12.0% 12.0% 12.0% Calpella * NA**14.0% 12.0% 10.0%(TBD) * Previously adopted ** A 14% increase was implemented in July 2025 Attachment 7 Page 50 of 57 15 Summary of Rate Increase Drivers •All agencies are facing cost inflation pressures •All agencies (except the City of Ukiah) are significantly increasing capital re-investment •Millview •Has not raised its rates in over 14 years •Redwood Valley •Has unique operational and water supply challenges •Willow •Significant shift from former role as operations service provider Attachment 7 Page 51 of 57 16 Current Monthly water bill comparisons among selected regional water agencies Single Family Homes with ¾” meter using 7,000 gallons per month Attachment 7 Page 52 of 57 17 Proposed Year 1 Monthly water bill comparisons among selected regional water agencies Single Family Homes with ¾” meter using 7,000 gallons per month Attachment 7 Page 53 of 57 $125.14 $107.77 $94.52 $77.75 $74.43 $69.08 Redwood Valley City of Ukiah Calpella Millview County Hopland Willow County $- $20 $40 $60 $80 $100 $120 $140 Fixed (Service Charge) Usage 18 Proposed Year 5 Monthly water bill comparisons among selected regional water agencies Single Family Homes with ¾” meter using 7,000 gallons per month * * Year 4 rate because Year 5 rate is TBD Attachment 7 Page 54 of 57 19 Project Schedule Oct. 15 – Oct. 23 Presented findings to all member agencies (4 meetings) December 4 Presented recommendations to UVWA Executive Committee Mid-December Mailed the 218 notices January 26 Objection Due Date February 9 Public Hearing March 1 First rate increases Attachment 7 Page 55 of 57 Agenda Item 3a Page 1 of 2 water WATER EXECUTIVE COMMITTEE MINUTES Regular Meeting UKIAH VALLEY CONFERENCE CENTER 200 South School Street, Ukiah, CA 95482 Virtual Meeting Link: https://us06web.zoom.us/j/83268733029. Ukiah, CA 95482 January 8, 2026 5:00 p.m. 1. CALL TO ORDER AND ROLL CALL The Water Executive Committee (WEC) met at a Regular Meeting on January 8, 2026, having been legally noticed on January 5, 2026. The meeting was held in person and virtually at the following link: https://us06web.zoom.us/j/83268733029. Chair Schoeneman called the meeting to order at 5:02 p.m. Roll was taken with the following Members Present: Juan Orozco, Douglas Crane, Gary Nevill, Devin Gordon, Adam Gaska, Steve Bogart, Tim Prince, and Tom Schoeneman. Members Absent by Prearrangement: Tami Baarsch-Bogart. Staff Present: Jared Walker, Ukiah Water Resources Director and Kristine Lawler, UVWA Clerk. Also Present: Phil Williams, Legal Counsel. CHAIR SCHOENEMAN PRESIDING. Chair Schoeneman led a moment of silence to honor departed member Jerry Cardoza for the service he gave to the Redwood Valley Water District, the Ukiah Valley Water Authority, and to his community. 2. APPROVAL OF MINUTES a.Approval of the Minutes for the December 4, 2025, Regular Meeting. Motion/Second: Crane/Gaska to approve the minutes for the December 4, 2025, Regular Meeting, as submitted. Motion carried by the following roll call votes: AYES: Orozco, Crane, Nevill, Gordon, Bogart, Prince, and Chair Schoeneman. NOES: None. ABSENT: Baarsch-Bogart. ABSTAIN: Gaska. 3. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No public comment was received. 4. NEW BUSINESS No new business items were placed on the agenda. 5. UNFINISHED BUSINESS a.Discussion and Possible Adoption of Policy for Rotating Officers. Presenter: Phil Williams, Legal Counsel. Motion/Second: Gaska/Bogart to adopt the policy for rotating officers. Motion carried by the following roll call votes: AYES: Orozco, Crane, Nevill, Gordon, Gaska, Bogart, Baarsch-Bogart*, Prince, and Chair Schoeneman. NOES: None. ABSENT: None*. ABSTAIN: None. *Member Bogart voted for Member Baarsch-Bogart per the UVWA JPA, Section 5(C)(1). Page 56 of 57 Water Executive Committee Minutes for January 8, 2026, Continued: Page 2 of 2 6. ADMINISTRATIVE AND OPERATIONAL REPORT a. Report on Status of Application for SAFER Planning Grant. Presenter: Jared Walker, Ukiah Water Resources Director. Report was received. b. General Management Report. Presenter: Jared Walker, Ukiah Water Resources Director. Report was received. 7. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS Presenter: Member Bogart. 8. SET NEXT MEETING DATE a. Discussion, Consideration, and Scheduling of Next Regular Meeting for February 5, 2026, at 5:00 p.m., with the Meeting to be Held at the Ukiah Valley Conference Center, 200 South School Street, Ukiah, CA 95482. Presenter: Chair Schoeneman. Member Consensus to hold the next meeting following the Special Public Hearing scheduled for February 9, 2026, at 5:00 p.m. Note: The meeting and hearing will both be noticed for a 5:00 p.m. start time, but the meeting will take place after the public hearing has concluded. DIRECTORS ADJOURNED TO CLOSED SESSION AT 5:20 P.M. 9. CLOSED SESSION a. Conference with Real Property Negotiators Property: 1850 Talmage Rd., Ukiah, CA 95482 Agency Negotiator: Jared Walker and Sean White Negotiating Parties: Ukiah Valley Water Authority, Member Agencies, and Rogina Municipal Water Company Under Negotiation: Price and Terms b. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9, One Case Legal Counselor Phil Williams reported out of Closed Session that the Committee met in Closed Session for real property negotiations and anticipated litigation and took no reportable action. 10. ADJOURNMENT There being no further business, the meeting adjourned at 7:26 p.m. ________________________________ Kristine Lawler, UVWA Clerk Page 57 of 57