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Adopt a resolution establishing guidelines for the submission and tabulation of protests in connection with rate hearings conducted pursuant to Article XIID, Section 6 of the California Constitution (Proposition 218)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends the Board adopt a resolution establishing guidelines for the submission and tabulation of protests in connection with rate hearings conducted pursuant to Article XIID, Section 6 of the California Constitution (Proposition 218).
SUMMARY:
The Department of Resource Management is requesting that the Board of Supervisors adopt a resolution establishing formal guidelines for the submission, validation, and tabulation of written protests submitted in connection with public hearings conducted pursuant to Proposition 218.
Proposition 218 requires local agencies to conduct protest proceedings prior to adopting or increasing certain property-related fees or charges. While Article XIII D of the California Constitution mandates that written protests be considered, neither the Constitution nor the related statutory provisions prescribe all administrative details necessary to ensure a consistent and transparent tabulation process.
Adoption of standardized County procedures in advance of any future Proposition 218 hearings will promote fairness, clarity, uniformity and legal defensibility in the County’s rate-setting process. The guidelines adopted by this resolution include rules governing notice delivery, protest submittal, validation, withdrawal, tabulation and majority protest determinations.
FINANCIAL IMPACT:
There is no fiscal impact associated with adopting the resolution. Local governments adopt Proposition 218 procedures in advance of the public hearing for transparency in the process and the County’s compliance with California law. The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2025/26 Working Budget.
DISCUSSION:
In 1996, California voters approved Proposition 218, which added Articles XIII C and XIII D to the California Constitution. Proposition 218 imposes procedural and substantive requirements on local agencies, including counties, before they may adopt or increase certain property-related fees or charges.
Article XIII D, Section 6 applies to “property-related fees,” which generally include charges imposed upon parcels for services such as water, wastewater, stormwater, solid waste or other services provided directly to property.
Under Proposition 218, prior to adopting or increasing a covered fee, the County must:
• Provide written notice to affected property owners (and, in some cases, customers of record);
• Hold a public hearing; and
• Consider written protests submitted by affected parties.
In addition to the constitutional requirements of Proposition 218, the Legislature has adopted implementing statutes governing these proceedings, including the Proposition 218 Omnibus Implementation Act (Government Code section 53750 et seq.). These statutes provide further procedural direction to local agencies conducting protest hearings, including some rules regarding the tabulation of protests.
A central safeguard in Proposition 218 is the majority protest process. If written protests are submitted by affected property owners or customers of record representing a majority (50% plus one) of parcels subject to the proposed fee, the County is prohibited from imposing the fee or increase. Accordingly, accurate protest tabulation procedures are essential to ensuring the County’s compliance with both:
• Article XIII D of the California Constitution, and
• Government Code section 53750 et seq.
The resolution therefore establishes clear rules for determining when a majority protest exists.
Although Proposition 218 and the implementing statutes impose the requirement for notice and majority protest proceedings, they do not spell out every administrative step necessary to conduct an orderly protest hearing. For example, neither the Constitution nor Government Code section 53750 et seq. provides detailed instructions regarding:
• How protests must be delivered or signed;
• Whether emailed or photocopied protests may be counted;
• How withdrawals must be handled;
• How protests should be validated when signatures or parcel identification are unclear;
• When and how tabulation should occur; or
• Procedures for public transparency and record disclosure.
To address these procedural gaps, local agencies commonly adopt formal guidelines in advance of protest hearings. Adoption of Countywide procedures ensures the County’s process is predictable, consistent, transparent to the public and defensible in the event of challenge.
The resolution establishes such standards, including clear requirements for protest submittal, signature verification, parcel identification, confidentiality and tabulation procedures.
ALTERNATIVES:
The Board could choose not to adopt the resolution establishing Proposition 218 guidelines. However, this is not recommended as the proposed guidelines support efficient implementation of constitutionally and statutorily required protest hearings and reduces the risk of procedural challenges.
OTHER AGENCY INVOLVEMENT:
County Counsel assisted the Department of Resource Management in developing the Proposition 218 procedures.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION