Following a public hearing, the Avalon City Council on May 19 unanimously adopted the rate study for saltwater, sewer, and solid waste fees. The study set the maximum rates that can possibly be set. The council will vote on the actual rates at the next meeting.
According to the city clerk, Avalon received 23 written protests against the proposed rate increases. Opponents needed 630 written protests to prevent the council from going forward.
The process
Before the public hearing, City Attorney Scott Campbell explained the requirements set up by California Proposition 218.
According to Campbell, the city mailed a notice of the rate hearing to property owners and tenants who are directly liable to pay the rates. The hearing had to be held in less than 45 days after the notices were mailed. Property owners and tenants were allowed to submit written protests against the proposed rate increases. The council would then determine whether the written protests were a majority of the rate payers.
“In order to be counted, the protest must be in writing, state that you are protesting the proposed sewer, salt water, and solid waste increases. include the name of the property owner or tenant, the parcel number, the assessor’s parcel number, or the service address, and the signature of the person submitting the written request. Any protest submitted by emails or other electric means will not be accepted as a formal written protest,” Campbell said.
If the council find the protests represented a majority, the council could not go ahead with rate increases.
“If there is not a majority protest, the city council may impose the rate increases, but is not required to,” Campbell said.
A representative of the city’s rate consultant later explained that a majority was 50% plus one.
According to Campbell, by state law, only one written protest per parcel could be counted.
According to both Campbell and City Manager David Maistros, only written protests received before the public hearing was closed would be counted.
The background
“The proposed rates were designed to produce the minimum revenue needed to cover projected operating costs, including direct operating expenses, administrative costs, and ongoing capital improvement repairs, replacements, and upgrades, while establishing adequate reserves,” according to the staff report by Finance Director Matthew Baker.
“The proposed rates represent the maximum amount that may be charged per year, with increases scheduled and spread out over the next five years. City Staff will propose to set the rates for the next fiscal year at a public hearing to be scheduled in June 2026,” Baker wrote.
Josiah Close of HDR Engineering, the company that did the rate study for Avalon, gave a presentation to the council before the public hearing. According to Close, the proposal was to use reserves in all three areas—saltwater, sewer, and solid waste (trash)—to “take the edge off” rate changes over the next five years.
In 2028-28, Avalon will take out reserves for the construction of the wall to increase the life of the Avalon landfill, according to Close.
“We also put together a combined residential bill impact uh for your consideration for all three utilities. It moves up 7-and-a-half % for about three years and then 6% for two years,” Close said.
Public hearing
“With the increased with the sewage, it’s quite a big in increase, especially for the bars and shops and especially the hotels,” said Fred Gilbride. “They’re going to have to raise their rates if this goes through.”
He said the hospital gets $1 for everyone taking the boat to Avalon. He suggested butting a similar initiative for the utilities.
According to City Attorney Campbell, the State Land Commission saw the possibility that someone coming to Avalon by boat might need to use the hospital, so that was a legitimate use of harbor money.
“We had to get approval from the state for that rate increase,” Campbell said.
Jessica Hickman said she had a letter of protest to submit.
“You need to budget because you’re going to push the middle class down if you keep raising things,” Donna Lopez said.
Susanna Gutierrez suggested putting more of the cost burden on hotels and other businesses as opposed to residents.