City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Kevin Jorgensen II, Director of Engineering/City Engineer |
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Prepared by: |
Somporn Boonsalat, Deputy Director of Engineering |
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Date: |
December 17, 2024 |
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Subject: |
Approve the Notice of Intent, Initiate Proposition 218 Proceedings, and Schedule a Public Hearing to Consider increases to the Monthly Water User Rates |
Recommendation:
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Adopt a resolution approving the Notice of Intent to increase the Monthly Water User Rates, initiating proceedings under Proposition 218, scheduling a public hearing to consider updates and increases to the Monthly Water User Rates, and authorizing the City Manager or designee to take all appropriate actions necessary to carry out the purpose and intent of the resolution.
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Background:
On March 5, 2024, the City of Manteca (City) adopted the 2024 Final Water Master Plan (2024 WMP). With completion of the 2024 WMP, staff now has an accurate accounting of the funding needed for the maintenance and operation of existing assets and development of future assets.
The Manteca Municipal Code imposes on water customers the requirement to pay water rates to cover the City’s costs of providing water services. The City worked with its consultants at Raftelis to develop the draft 2024 Water Rate Study (Attachment 4). The 2024 Water Rate Study includes a comprehensive cost of services review and analysis of the City’s water rates and a new rate structure that is compliant with all legal requirements, including Article XIII-D, Section 6 of the California Constitution (“Proposition 218”).
Prior to extending, imposing or increasing water rates, the City must hold a public hearing to consider the rates and mail written notice of the public hearing (“Proposition 218 Notice”) (Attachment 3) to property owners at least 45 days prior to the public hearing. Under Proposition 218, ratepayers and owners of property receiving City water services may protest the proposed rates by submitting a written protest, prior to the close of the public hearing. While both ratepayers and property owners may submit protests, only one protest per parcel will be counted. If a majority of parcels receiving water service submit written protests against the rate update, the City Council cannot adopt the proposed rates.
Additionally, the City is choosing to comply with Assembly Bill 2257, which requires any property owner or ratepayer that may wish to bring a judicial action challenging the rates to submit an objection to the proposed water rates to the City Council’s attention prior to the deadline established by the Council as part of the ratemaking process. The objection must include all of the information specified in the Proposition 218 Notice and it must be submitted separately from any protest. Prior to or during the public hearing, the City must respond to all of the objections, in writing, including the grounds for which a challenge is not resulting in amendments to the proposed rates. Any judicial action or proceeding to challenge the water rates shall be subject to the requirements set forth in Government Code section 53759.2.
After reviewing the objections and the City’s responses, prior to adopting the rates, the City Council must determine one of the following:
• Whether the written objections and the agency’s response warrant clarifications to the proposed fee or assessment.
• Whether to reduce the proposed fee or assessment.
• Whether to further review before making a determination on whether clarification or reduction is needed.
• Whether to proceed with the protest hearing and adopt the rates
Below is the tentative schedule of events:
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Date |
Event |
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12/17/2024 |
Adopt Resolution Initiating Proposition 218 Process |
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1/16/2025 |
Mail Proposition 218 Notice |
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1/29/2025 |
Community Meeting #1, 2:00 pm, at the Transit Center, 220 Moffat Blvd. Manteca CA, 95366. |
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2/26/2025 |
Community Meeting #2, 2:00 pm, at the Transit Center, 220 Moffat Blvd. Manteca CA, 95366. |
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3/3/2025 |
Assembly Bill 2257 Protest Deadline |
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3/5/2025 |
Community Meeting #3, 2:00 pm, at the Transit Center, 220 Moffat Blvd. Manteca CA, 95366. |
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3/18/2025 |
First Reading/Public Hearing |
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4/15/2025 |
Second Reading/Public Hearing |
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5/15/2025 |
Fees in Place |
Below is the Proposed Monthly Water User Rate:
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Description |
FY 2025 Current |
FY 2025 Proposed |
FY 2026 Proposed |
FY 2027 Proposed |
FY 2028 Proposed |
FY 2029 Proposed |
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Effective Date |
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5/15/2025 |
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7/1/2026 |
7/1/2027 |
7/1/2028 |
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Monthly Fixed Charge (per meter size) |
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¾” |
$17.15 |
$21.23 |
$21.23 |
$27.6 |
$32.57 |
$34.53 |
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1” |
$26.50 |
$30.95 |
$30.95 |
$40.24 |
$47.49 |
$50.34 |
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1½” |
$49.65 |
$55.26 |
$55.26 |
$71.84 |
$84.78 |
$89.87 |
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2” |
$77.55 |
$84.43 |
$84.43 |
$109.76 |
$129.52 |
$137.30 |
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3” |
$142.70 |
$176.79 |
$176.79 |
$229.83 |
$271.20 |
$287.48 |
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4” |
$235.80 |
$312.91 |
$312.91 |
$406.79 |
$480.02 |
$508.83 |
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6” |
$468.20 |
$784.46 |
$784.46 |
$1,019.80 |
$1,203.37 |
$1,275.58 |
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8” |
$747.25 |
$1,367.81 |
$1,367.81 |
$1,778.16 |
$2,098.23 |
$2,224.13 |
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Volume Charge (per hcf1) |
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All Volume |
N/A |
$2.47 |
$2.47 |
$3.22 |
$3.80 |
$4.03 |
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Tier 1 (1-20 hcf) |
$1.03 |
N/A |
N/A |
N/A |
N/A |
N/A |
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Tier 2 (21-300 hcf) |
$1.35 |
N/A |
N/A |
N/A |
N/A |
N/A |
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Tier 3 (over 300 hcf) |
$2.72 |
N/A |
N/A |
N/A |
N/A |
N/A |
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1 hcf = hundred cubic foot = 748 gallons
The average single family residential user consumes 16 hundred cubic-feet of water (approximately 12,000 gallons) each month. For the average single family residential customer, the proposed rates would result in an increase of $27.12 each month starting in FY 2025.
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Description |
FY 2025 Current |
FY 2025 Proposed |
FY 2026 Proposed |
FY 2027 Proposed |
FY 2028 Proposed |
FY 2029 Proposed |
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Effective Date |
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5/15/2025 |
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7/1/2026 |
7/1/2027 |
7/1/2028 |
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Average Monthly Residential Bill (16 hcf1) |
$33.63 |
$60.75 |
$60.75 |
$78.98 |
$93.19 |
$98.78 |
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Average Monthly Residential Bill Increase |
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$27.12 |
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$18.23 |
$14.22 |
$5.59 |
1 hcf = hundred cubic foot = 748 gallons
If approved, the proposed rates would become effective on May 15, 2025.
Fiscal Impact:
There is no direct fiscal impact associated with this recommendation.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Notice of Intent
3. Attachment 3 - Exhibit “A” to Resolution - Proposition 218 Notice
4. Attachment 4 - Draft 2024 Water Rate Study
5. Attachment 5 - Power Point Presentation