DATE: February 18, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Utility Rate Adjustments: Adopt Resolutions Amending the Master Fee Schedule and Approving the Proposed FY 2026 through FY 2030 Sewer Rates and FY 2026 and FY 2027 Connection Fees, and Finding the Actions are Exempt from CEQA Review
End
RECOMMENDATION
Recommendation
That the Council adopts resolutions amending the Master Fee Schedule and approving the proposed sewer rates (Attachment II), proposed connection fees (Attachment III), and finding the actions exempt from CEAQ review.
End
SUMMARY
In response to the adoption of the 3rd Nutrient Watershed Permit Order No. R2-2024-0013 (Watershed Permit), on July 10, 2024 by the San Francisco Bay Regional Water Quality Control Board (Regional Water Board), and its mandate of nutrients reduction, the City must substantially expand the wastewater treatment plant to meet these requirements, currently estimated to cost approximately $488 million.
No grants or other sources of funding are available. All costs are solely the responsibility of the Wastewater Enterprise Fund. As such, cost-of-service analyses have been prepared for providing sewer service to Hayward residents and businesses to calculate appropriate sewer service charges for FY 2026 through FY 2030. The analyses were prepared by Water Resources Economics, LLC (WRE), a consulting firm that specializes in financial advising for utilities and public agencies. Staff brought the proposed rates to Council to obtain comments during a work session on December 3, 2024, after which the appropriate and necessary public noticing procedures were implemented in accordance with state law prior to the public hearing. If approved, the adopted rate adjustments would take effect annually from July 1, 2025, to July 1, 2029.
The Sewer Rate Study documents the City's sewer cost-of-service requirements for FYs 2026 to 2030, which, if ...
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