Cotati council accepts draft water and sewer rate study, starts Proposition 218 notice and sets May 27 hearing

The Cotati City Council voted unanimously to accept a draft water and sewer rate study and directed staff to begin the Proposition 218 public-noticing process for proposed rate adjustments, setting a public hearing for May 27, 2025.

The action follows a presentation by Craig Scott, Cotati public works director and city engineer, and Mark Hildebrand of Hildebrand Consulting, who told the council that rising costs for purchased water and a near-term spike in capital projects require rate increases and, for water, short-term debt financing to avoid service shortfalls.

Hildebrand summarized the legal framework at the start of his presentation, saying: “There is a law, that’s commonly known as Proposition 218, that dictates how the city has to charge its rates,” and reminding the council that the measure both limits charges to the cost of service and requires a public-notice and protest process before adoption. Scott and Hildebrand said the city last completed a rate update in 2022 and that updated forecasts show both utilities now facing higher-than-expected costs and capital needs.

Key study findings and proposals shown to the council included: - Water capital: the consultant presented a schedule of near-term capital work totaling about $8,600,000 over the next six years. Hildebrand also referenced a larger projection at one point in the presentation ($10,400,000) while reviewing changes since 2022; the council discussion noted the discrepancy and asked staff to clarify the final capital total before coming back with a final recommendation. - Water rates: the draft recommendation presented to the council proposed increases greater than the prior 6%-per-year…