Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Resolution Establishing Administrative Remedies Procedure for Challenges to Fees, Charges, and Assessments (AB 2257)
REPORT IN BRIEF
Considers adopting a resolution establishing administrative remedies procedure for challenges to fees, charges, and assessments (AB 2257).
RECOMMENDATION
City Council - Adopt a motion adopting Resolution 2026-09, a Resolution Establishing the Administrative Remedies Procedure for Challenges to Fees, Charges, and Assessments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Modify or refer to staff for reconsideration of specific items (specific items to be addressed in motion); or,
3. Deny; or,
4. Continue to a future meeting (date and time to be specified in motion).
AUTHORITY
Government Code Sections 53759.1 and 53759.2, Chapter 561, Statues of 2024 (Assembly Bill No. 22574).
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
Assembly Bill 2257 (AB 2257) provides clarification and procedural flexibility for local agencies adopting water and sewer rates under Article XIII D of the California Constitution ("Proposition 218"). The City's implementation of AB 2257 is intended to strengthen legal defensibility of the rate-setting process while preserving all constitutional ratepayer protection. The purpose of this Resolution is to document the processes the City will follow in considering proposed new or increased fees, charges and assessments, as it relates to the exhaustion of administrative procedures under AB 2257. These procedures supplement the City's compliance with Article XIII D of the California Constitution ("Proposition 218").
Importantly, AB 2257 does not alter the majority protest standard under Proposition 218.
It creates a formal process for exhausting administrative remedies for would-be rate litigants and establishes a formal written objection procedure for ratepayers to raise su...
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