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BARTLE WELLS ASSOCIATES 5 | Pag e City of San Leandro Draft 2024 Wastewater Rate Study ruled, includes rates imposed for water delivered through pipes connected to property. Article 13D, Section 6 establishes both a) procedural requirements for imposing or increasing property-related charges, and b) substantive requirements for those charges. Article 13D requires voter approval for new or increased property- related charges but exempts rates for water, wastewater, and garbage service from this voting requirement if rates are adopted by the appropriate procedure and meet the substantive requirements. This report recommends water rates designed to comply with the substantive requirements of Proposition 218. The substantive requirements of Article 13D, section 6 requires property-related charges, such as the City’s water and wastewater rates, to meet the following conditions: 1) Revenues derived from the fee or charge shall not exceed the costs required to provide the property- related service. 2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed. 3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. 4) No fee or charge may be imposed for a service unless that service is used by, or immediately available to the property in question. 5) No fee or charge may be imposed for general governmental services, such as police or fire services, where the service is available to the public at large in substantially the same manner as it is to property owners. 2.4 Statute of Limitations Pursuant to California Government Code 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fees. This statute of limitations applies to the wastewater rates proposed in this rate study and is included in the Proposition 218 Notice.