Oakdale council approves contract for water and wastewater rate study after extended debate

The Oakdale City Council on Monday approved a $34,200 contract with Tuckfield & Associates to conduct a comprehensive water and wastewater rate study, voting 4–1 after more than an hour of questions from council members and public commenters.

City staff told the council the study would assess revenue sufficiency, cost allocation and customer impacts for the city’s water and sewer enterprises and would ensure compliance with Proposition 218’s notice and protest procedures. Staff said the project cost would be split evenly between the Water Operations Fund and the Sewer Fund ($17,100 from each) and that the study would be completed in fiscal year 2025–26.

Council members and members of the public pressed staff on timing and the likely effect on household bills. Several council members argued delaying the study could leave the city vulnerable to larger, later increases or require subsidies from the general fund; others said economic pressure on residents warranted postponement. City staff and the interim city manager said the consultant would analyze operational and capital needs and that the council would not be required to adopt any rate change unless it chose to do so after the study.

Staff outlined a timeline that would take about four to six months for the consultant’s analysis, followed by staff review and a public hearing process. Under Proposition 218, staff said, the notice and protest period requires at least 45 days, meaning a decision on any rate adjustment could come nine months or more after the contract is awarded.

The contract award was the final action after several motions earlier in the meeting to delay or table the item; the council later withdrew the tabling motion and considered the presentation. After discussion the council’s roll call produced four votes in favor and one opposed. The council clarified that the contract funds come from the designated utility enterprise accounts and that any future rate changes would return to council for approval and be subject to required public notice and protest rights.

The council also asked staff to prepare clear public communications about the study, including social media posts and bill inserts, and to return to council with the consultant’s full report and timing for a public hearing should the study recommend rate adjustments.

Votes and next steps: the contract with Tuckfield & Associates was approved. Staff estimated the consultant phase would take roughly 4–6 months; following that, council-directed public notice and a hearing would be required before any rate change could take effect.