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Atascadero council starts Prop 218 process for sewer rate increase; hearing set for May 12
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Summary
Council voted 4–0 to begin the Prop 218 majority‑protest process for a proposed 18.5% sewer service charge increase (second of two planned increases). Staff said the wastewater plant is at 99% capacity and that studies and classification work will continue to refine future rates and customer classifications.
The Atascadero City Council voted unanimously to begin the Prop 218 notification and protest process for a proposed sewer service charge increase, setting a public hearing for May 12.
City Manager Jim Lewis and Public Works analyst Mr. Betts told the council that the city’s wastewater system faces capacity and regulatory challenges and that the treatment plant is effectively full. Lewis said the plant “is at 99% capacity,” and that the city must plan for a major replacement or retrofit that could cost in the tens of millions of dollars.
Mr. Betts outlined the customer impact under staff’s proposal: the current monthly charge of $57.06 would rise roughly $10.54 to about $67.60 per month under an 18.5% increase, and staff estimates the change would generate a little over $1,000,000 in additional annual revenue. He also described the Prop 218 schedule: if council approves the notices, the city will mail 45‑day protest notices to property owners and hold the public hearing on May 12, at which the clerk will report any protests received.
Council members pressed staff on cost controls and fairness. Council member Funk said she supported starting the Prop 218 process but urged staff to pursue grants and other cost‑sharing and to prepare assistance programs for residents and businesses that would struggle with rate increases. Funk moved to direct staff to administer the Prop 218 majority‑protest process, send proposed‑rate notices to all property owners connected to the sewer system, and set the May 12 hearing; Council member Peake seconded the motion. The council approved it on a 4–0 vote with the mayor pro tem absent.
Staff told the council that additional technical work is already underway: an inflow and infiltration (I&I) study to quantify rainwater and groundwater entering the sewer system and a plant alternatives analysis to identify more cost‑effective treatment options. Those studies will feed a broader rate classification study to better match sewer charges to water use and types of customers.
Next steps: if staff completes mailings and the 45‑day period, the council will consider the protest tally at the May 12 public hearing and may then decide whether to adopt the proposed rates or modify the approach. Until then, staff said, the city will continue the technical studies and explore funding and mitigation options.
Action recorded: motion to administer the Prop 218 notice and set the hearing (moved by Council member Funk; seconded by Council member Peake). Vote: Funk—yes; Peake—yes; Newsom—yes; Mayor Barbot—yes. Motion passed 4–0 (Mayor Pro Tem absent).
