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Swithin Lindbeck <br /> March 10, 2026 <br /> Page 2 <br /> size of the meter serving the parcel. Additionally, the primary incremental cost supporting <br /> the two tiers is source of supply, with tier one paying for groundwater costs, and tier two <br /> paying for imported water. Costs for peaking are factored into the fixed charges applicable <br /> to each customer, which vary based on the size of the meter serving the parcel. <br /> Finally, the City uses meter equivalents for sewer rates based on average winter water <br /> use rations for each meter size. These ratios reflect sewer flow differences attributable to <br /> each meter size, and serves as an effective proxy for projecting flows that return to the <br /> sewer. <br /> Importantly, Coziahr v. Otay Water District and Patz v. City of San Diego took issue with <br /> creating customer classes, as opposed to consolidating them. Additionally, Dreher V. City <br /> of Los Angeles Department of Water and Power reinforces that agencies have flexibility <br /> and discretion in establishing rate structure, so long as the rate within each tier reflects <br /> the cost of service within such tier. The City's rate study clearly demonstrates that this is <br /> the case. <br /> The letter includes additional claims that the City's Proposition 218 notice understates bill <br /> impacts. The City provides bill impacts as a courtesy, but this information is not required <br /> under article Xlll D, section 6 of the California Constitution. As such, the notice meets all <br /> constitutional limitations and requirements. Similarly, nothing in Proposition 218 <br /> mandates that an agency implement any particular frequency in billing. As such, there is <br /> no violation of Proposition 218 resulting from the transition to monthly billing. <br /> As explained clearly in the City's Proposition 218 notice, the deadline for submitting an <br /> objection is March 10, 2026, to allow the City to review and provide a timely response. <br /> While the City is always happy to listen to any additional concerns you may have, no <br /> further objections or legal arguments will be considered for purposes of exhausting <br /> administrative remedies after the deadline of March 10, 2026, set forth in the Proposition <br /> 218 notice. <br /> If you have specific questions about the impacts of the proposed rates on your parcel, <br /> please feel free to call 714-647-3320, and City staff would be happy to walk through your <br /> particular circumstances. <br /> Sincerel <br /> odolfo Rosas, P.E. <br /> Acting Executive Director of Public Works <br /> SANTA ANA CITY COUNCIL <br /> Valerie Amezcua David Pena€oza Thai Viet Phan Benjamin Vazquez Jessie Lopez Phil 13acerra Johnathan Ryan Hernandez <br /> Maynr Mayor Pro Tem-Ward 6 Ward? Ward Ward Ward Wards <br /> vamezcua santa-ana.cr dpenalozaOsapts-sna.ora 1 han. sarta-ana orc pyazGUezr&sanla-ana.orq lessielopez(n�santa-ana.orq phacema@santa-ana_om anhemandez santa-ana.oi <br />