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Ukiah council approves sewer-rate increase after Proposition 218 hearing
Summary
Following a Proposition 218 protest hearing and consultant presentation, the council adopted a resolution to adjust sewer service rates, citing inflation, capital needs and system maintenance; staff reported 12 protests were received.
The Ukiah City Council adopted a resolution to adjust sewer service rates after a Proposition 218 protest hearing and presentations by finance staff and the city’s rate consultant.
Finance Director Dan Buffalo described the rate proposal as a 6% increase in the first year followed by successive 4% increases to rebuild reserves and fund capital projects. He told the council that staff also identified assistance resources for customers struggling to pay.
Consultant Mark Hildebrand explained how the city balances fixed and variable components of wastewater rates, saying the current revenue mix is roughly 65% fixed and 35% variable and that aligning fixed costs with fixed revenue helps protect the utility from volatility. “You do want to try to recover fixed cost through your fixed revenue,” Hildebrand said.
Staff reported the city had received 12 written protests as part of the Proposition 218 process; that number did not approach the threshold required to block council action. Several members of the public asked about the city’s wastewater viral surveillance program and whether it would resume; staff said the city had opted out of a statewide voluntary monitoring program several years ago because it proved time-consuming and of limited operational value.
Council members expressed sympathy for ratepayers and concern about impacts on residents on fixed incomes but also emphasized that failing to maintain the sewer system could lead to regulatory penalties and greater costs to ratepayers later. On a roll-call vote council adopted the rate-adjustment resolution.
The staff report presented the timing of the first increase as Oct. 1 with a year listed in the presentation materials; the staff presentation itself did not provide further date clarification at the hearing. Staff said they had included alternatives to put reserves to use to mitigate short-term rate impacts and emphasized customer-assistance options for those with difficulty paying.
Next steps: the rate schedule will be implemented according to the adopted resolution and staff will continue outreach to ratepayers about assistance options and timing.
