Title
Public Hearing to Consider Introduction of Ordinance Revising the City's Sewer Service Charges. (Public Works 501)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) owns and operates a sewer collection system. Sewer service charges are viewed as property-related fees and are subject to specific requirements of the California Constitution Article XIII D Section 6(a), commonly referred to as Proposition 218 (Prop 218). The fees must only cover expenses to provide service to the customer assessed, including salaries and benefits, contractual services, materials, equipment and infrastructure rehabilitation. Prop 218 allows a multi-year schedule of fee increases for up to five years and requires an increase in the fee(s) to be approved by the customers under a protest-ballot procedure, where all affected property owners are notified and given the opportunity to protest the increase in writing or at a public hearing. A majority protest prohibits the increase.
In September 2024, staff contracted with NBS to conduct a sewer financial plan and rate study (Exhibit 1). Based on an evaluation of sewer funding needs and revenue sources, the report recommends an annual 3% rate revenue increase through Fiscal Year (FY) 2030. A comparison of monthly sewer service charges with regional agencies shows that City rates are at the low end and are projected to remain low over the next five years with the proposed rate increase. On April 1, 2025, City Council approved the Sewer Rate Study and adopted a resolution declaring the City's intent to revise the sewer service charge. The resolution also established procedures for accepting protests pursuant to Article XIID, Section 6 (a) of the California Constitution Regarding Property-Related Fees and Charges. On April 14, 2025, NBS mailed 19,243 properties written notice, in accordance with Prop 218, announcing the proposed sewer service...
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