Council weighs new 'special services' water rate to give cemeteries a larger base allowance

Oakley City Council on March 11 reviewed a staff proposal to create a new water-rate classification designed to accommodate the unique, seasonal irrigation needs of the city’s cemetery district and similar public-service entities.

Staff explained legal limits on flat, amortized charges and said state law requires a conservation element in any retail water rate structure. To comply, staff proposed a "special services district" classification that would provide a larger base allowance (amortized over 12 months) and retain tiered overage pricing to encourage conservation.

Using 2025 usage data for Oakley’s three cemeteries, staff presented a model that amortizes high summer use into an annual baseline and proposed giving each cemetery a base allowance equivalent to 100,000 gallons. Staff presented the base monthly charge at "$37.32 a month" under the staff proposal; any usage above the baseline would be charged at the city’s current higher-tier rates (tier 3 or tier 4), which staff said are $4.48 per thousand gallons (tier 3) and $11.94 per thousand gallons (tier 4) in the current structure.

Staff noted an operational issue: some meters and accounts appear to be misattributed among the three cemeteries and said meter checks and a public-works review will be necessary this spring to confirm which meters serve which cemetery circuits. Staff asked for council direction and set an adoption timeline: staff requested council pick an option at the March 25 meeting and conduct the required public hearing and adoption before winter overages roll onto the system, noting a target adoption date of about April 15.

Council members discussed whether a single overage tier or a two-tier approach would better protect the cemetery district while preserving a conservation incentive, and they asked staff to invite the cemetery district to a follow-up discussion and to resolve meter attributions before a final vote.