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ATTY/RESO.0109/CC RESO WATER RATES REV: 11-05-25 MI Page 1 of 5 RESOLUTION NO.16368 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDWOOD CITY ADOPTING THE WATER RATE COST-OF-SERVICE STUDY, APPROVING THE WATER RATE INCREASES AS IDENTIFIED IN THE STUDY, AMENDING THE WATER RATES AND CHARGES BEGINNING ON JANUARY 1, 2026, JANUARY 1, 2027, AND JANUARY 1, 2028, AND AMENDING RESOLUTION NO. 14648 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, in compliance with all legal requirements, including Article XIII-D, Section 6 of the California Constitution (“Proposition 218”), the City produced a Water Rate Cost-of-Service Study, dated July 8, 2025 (“Water Rate Study”), which recommends increases to the water service rates on January 1, 2026, January 1, 2027, and January 1, 2028; and WHEREAS, the Water Rate Study sets forth proposed water rates that do not exceed the City’s cost to provide water service and proportionately allocates those costs to the City’s water service customers in compliance with Proposition 218; and WHEREAS, the Water Rate Study was revised in October 2025 to correct typographical errors. The Water Rate Study and the revised Water Rate Study are attached hereto as Exhibit A and hereby incorporated by reference; and WHEREAS, the City Council adopted Ordinance No. 2531 on December 18, 2023, which amended Resolution No. 14648, and approved and adopted a policy to maintain the Water Enterprise operating reserve target at an amount equal to 25% of annual operations and maintenance (O&M) expenses and a capital reserve target of $2 million to provide working capital for pay-as-you-go construction projects; and WHEREAS, Government Code section 53756 allows public utility providers to adopt a schedule for inflation and wholesale rate pass-throughs provided they do not apply for more than five-years and that the utility provider gives 30 days written notice to ratepayers each time a pass-through is implemented; 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 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