Adjustments to Water and Wastewater Rates in Accordance with the Cost of Service Studies and Proposition 218

The City of San Diego is initiating a regulatory action to adjust water and wastewater rates to ensure full cost recovery for the operation, maintenance, and capital improvements of its water and wastewater systems, in compliance with Proposition 218 and the 2025 Water and Wastewater Cost of Service Studies. These rate adjustments account for all associated expenses, including estimated charges from the San Diego County Water Authority for water purchases, and are designed to maintain financial sustainability while adhering to state law requirements for public notice and protest procedures. The action is being processed under a categorical exemption per CEQA Guidelines Section 15273, which allows for rate changes that reflect the actual cost of providing utility services without requiring a full environmental impact report. The filing includes a certified exemption determination and a Notice of Exemption, both submitted to the California Natural Resources Agency with a $50 administrative fee paid to the San Diego County Clerk’s Office. The project is administered by the City of San Diego Public Utilities Department with oversight from the City Planning Department, and has no federal procurement components or contractor involvement. There are no contract clauses, solicitation numbers for competitive bidding, evaluation factors, or delivery schedules as this is not a federal contract but a municipal regulatory process. Payment for the filing is made by check to the County Clerk’s Office, and no electronic invoicing, barcoding, packaging, or military standards apply. Key contacts include Elena Pascual, Senior Planner, and Adam Jones, Deputy Director, who serve as the primary points of contact for the filing and implementation. The rate changes will become effective upon City Council approval and are to be applied citywide, with no separate physical delivery or inspection requirements, as the deliverable is the implementation of new utility rates under established legal and environmental compliance frameworks.