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ATTY/RESO.0072/CC RESO INITIATING PROP 218 PROCESS TO ADOPT WATER RATES REV: 07 -09-25 MI Page 1 of 4 RESOLUTION NO.16339 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDWOOD CITY TO INITIATE PROCEEDINGS UNDER PROPOSITION 218 BY SCHEDULING A PUBLIC HEARING TO CONSIDER ADOPTING PROPOSED WATER RATES, AUTHORIZING THE MAILING OF NOTICE OF THE PUBLIC HEARING, AND ESTABLISHING PROCEDURES FOR CONSIDERING OBJECTIONS TO THE PROPOSED WATER RATES WHEREAS, the City of Redwood City (“City”) Municipal Code imposes on water customers the requirement to pay water rates to cover the City’s costs of providing water services; and WHEREAS, the City worked with HF&H Consultants, LLC, a California limited liability company (“HF&H”), to develop a water rate study (“Rate Study”) that 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”); and WHEREAS, the Rate Study sets forth proposed water rates that do not exceed the City’s cost to provide water service and proportionally allocates those costs to the City’s water service customers in compliance with Proposition 218; and WHEREAS, pursuant to the provisions of Proposition 218, prior to extending, imposing or increasing water rates, property owners shall be provided mailed, written notice (“Proposition 218 notice”) at least 45 days prior to the public hearing to consider such modifications to the water rates together with an explanation of: •The amount of the proposed water rates; and •The basis on which the rates or charges are calculated; and •The reason for the rate modifications; and •The date, time, and place of a public hearing to consider the rate modifications; and WHEREAS, pursuant to AB 2257 (2024), the City is following the procedures in Government Code section 53759.1, such that any person who wishes to object to these proposed water rates must bring an objection regarding the proposed rates to the City Council’s attention prior to the deadline established by the Council as part of the rate making process, and any judicial action or proceeding to review, invalidate, challenge, set aside, rescind, void, or annul the water rates will be subject to the requirements set forth in Government Code section 53759.2; and WHEREAS, to comply with the requirements in Government Code section 53759.1, the City intends to do the following as part of the Proposition 218 process to consider the proposed water rates: