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ATTY/RESO.0109/CC RESO WATER RATES REV: 11-05-25 MI Page 4 of 5 maintenance expenses of the aforementioned services; and (ii) the charges constitute the creation of a funding mechanism/other governmental fiscal activity which does not involve any commitment to any specified project which may result in a potentially significant physical impact of the environment. The documents and materials that constitute the record of proceedings on which these findings have been based are located in the Office of the City Clerk, located at 1017 Middlefield Road, Redwood City, CA 94063. The custodian for these records is the City Clerk. 3. The City Council finds that the procedures followed and the water rates referenced herein are in compliance with Proposition 218 and Government Code sections 53755, 53756, 53759, and 53759.1. 4. During the public hearing on November 10, 2025, the City Council considered all timely, written objections and the City's written responses to those objections. The City Council determined that the written objections and the City's written responses to those objections do not warrant any clarifications to or reductions in the proposed water service rates set forth in the Water Rate Study, and therefore, the City could proceed with the protest hearing under Proposition 218. 5. The City Council hereby approves and adopts the Water Rate Cost-of-Service Study, dated July 8, 2025 and revised October 17, 2025 set forth as Exhibit A to the Resolution, and is incorporated by this reference. 6. The City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Water Rate Study and the Staff Report and attachments thereto: a. Revenues derived from the proposed water rates will not exceed the funds required to provide water service, respectively. b. Revenues derived from the proposed water rates will not be used for any purpose other than that for they were imposed. c. The amount of the water rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel. d. The water rates are imposed for a service or services that are actually used by, or immediately available to, the owner of the property in question. e. The water rates are not being imposed for general government services. 7. The City Council hereby amends Resolution No. 14648 and approves and adopts a policy to annually escalate the capital reserve target according to the year-over year change in the Construction Cost Index for the San Francisco Bay Area, as provided by Engineering News Record.