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San Leandro council adopts 5-year wastewater rate plan to cover $55M in upgrades
Summary
The San Leandro City Council unanimously adopted a rate schedule for wastewater services that city staff said is needed to fund roughly $55 million in capital improvements and new regulatory projects, including a $10 million nutrient removal program; rates would take effect July 1, 2025.
San Leandro City Council on May 5 voted unanimously to adopt a five-year schedule of wastewater rates and fees the city says are needed to fund capital repairs, regulatory projects and debt service in the sewer enterprise.
City staff framed the proposal as a funding fix for an aging system and new regulatory requirements. "The first and primary objective is the financial sufficiency. We need to fund all the costs while maintaining prudent reserves," said Hayes Morehouse, the city's water pollution control manager, during the council presentation.
The council took the item after a public hearing required under California Proposition 218. City Clerk Kelly Clancy told the council the city mailed 14,589 Prop 218 notices and as of the meeting had received 151 written protests; the clerk noted 7,295 protests would be required to block the increase. "The city sent out 14,589 notices, and we needed to receive 7,295 protests back. And so far, the city has received 151 protest letters," Clancy said.
Why it matters: Staff said the sewer enterprise must pay for about $55 million in capital improvements over five years and identified a roughly $10 million nutrient-optimization project required under regional water board rules to remove nitrogen from discharge. To meet those needs and maintain reserves, staff proposed an initial rate increase of about 8% in year one, followed by roughly 9% per year in subsequent years of the five-year plan. Staff also proposed rebalancing commercial rates to better align charges with cost of service across customer classes.
Public comment during the hearing was limited; one remote speaker flagged concern about rate and contract-line items included on the consent calendar, asking the council to “steward the people's money responsibly.” Council members asked clarifying questions about how notices were mailed and to whom they were addressed; staff explained the notices went to parcel owners within the San Leandro sewer district.
Action and next steps: Council member Bolt moved and Council member Azevedo seconded the resolution to adopt the rate schedule and related amendments to the city's Wastewater Code. The motion passed 7–0. The changes are scheduled to take effect July 1, 2025, if implemented as presented.
Clarifying details captured at the hearing: staff estimated about $55,000,000 in capital repair and replacement needs over five years; $10,000,000 was allocated for a nutrient-removal project; proposed rate increases began at approximately 8% in the first year and then about 9% in later years; notices were mailed to 14,589 parcels in the San Leandro sewer district and 151 written protests had been received by the meeting.
What the council did not decide tonight: The council adopted the rate resolution; the meeting record does not show additional, separate changes to the spending plan or specific project schedules beyond the high-level figures and the adoption of the rates.
