Item 23 - Public Hearing to Consider Proposed Water and Sewer Rate Adjustments

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WHEREAS, the City Council now desires to establish rates for the Fees, effective May 1, 2026, at the rates and subject to increases on the dates set forth in the schedules included as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The adoption of this Resolution falls within a statutory exemption from environmental review pursuant to sections 15273, 15060(c)(2) of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA), which pertain to the establishment, modification, structuring, restructuring, or approval of rates and charges by public agencies which the public agency finds are for the purpose of meeting operating expenses, and pertain to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under CEQA Regulations. Section 2. After considering the material presented in the Study, the City Council hereby finds as follows: (a) Revenues derived from the Fees do not exceed the funds required to provide the property -related service; (b) Revenues derived from the Fees shall not be used for any purpose other than for which the Fees or charges is imposed; (c) The amount of the Fees imposed upon any parcel or person does not exceed the proportional cost of service attributable to the parcel; (d) The Fees are imposed for services that are actually used by, or immediately available to, the owner of the property upon which the Fees are imposed; and (e) The Fees will not be imposed for general governmental purposes, but only for the costs of operation and maintenance of the City's potable water, recycled water, and sewer systems. Section 3. After receiving public comment and testimony on the new fee structure for water, sewer and recycled water services provided, and absent a majority protest to the proposed fee increases, the new fee schedule for water, sewer and recycled water fees and charges is hereby approved as set forth in Exhibit A attached hereto and incorporated herein by this reference. Section 4. The new fee schedule for water, sewer and recycled water services shall be implemented beginning May 1, 2026, and shall be increased on July 1, 2027 and annually thereafter, up to the maximum rates set forth in Exhibit A. The scheduled adjustments authorized by this Section may be made by the City Manager or designee, without conducting another public hearing or any action on the part of the City Council. Resolution No. 2026-XXX Page 3 of 5