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BACKGROUND <br />Water and sewer user rates are subject to Proposition 218 (Nov. 1996 "Right to Vote on <br />Taxes ") amendments to the California Constitution. This includes specific notice, <br />hearing and protest provisions for rate increases. After voters approved Prop. 218, the <br />state legislature adopted some clarifying statutes regarding general notice provisions. <br />(See AB 1260 in 2007.) <br />DISCUSSION <br />Later this year, the City Council will consider changes to water, drought, recycled water <br />and sewer rates. <br />The attached resolution includes more specific guidelines for submission and tabulation <br />of any rate protests. The guidelines, if adopted, would apply to future water and sewer <br />rate adjustments subject to Proposition 218. The proposed guidelines address. issues <br />such as: (a) how notice is delivered; (b) how protests are submitted; (c) protest <br />requirements; (d) protest withdrawal; (e) how to handle multiple customers of record on <br />one parcel; (f) how to treat multiple parcels in control of a single owner; (g) when <br />records are made public; (h) when protests are invalid; (i) defining a majority protest; <br />and (j) how final tabulation is reported. These specific guidelines are intended to avoid <br />confusion, provide clarity in advance of any rate hearing, and address issues <br />encountered by other public agencies which are not addressed in Proposition 218 or <br />state law. <br />Daniel S ith <br />Director of <br />Operation Services <br />Attachments: <br />1. Proposed resolution <br />Larissa Seto <br />Assistant City Attorney <br />Page 2 of 2 <br />Approve ; by: <br />Nelson Fialho <br />City Manager <br />