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HomeMy WebLinkAboutRES 2025-32 - Board Docusign Envelope ID:29766744-5BC5-46AF-B044-4FEF1E9182B7 ■ UCKEE r Public Utility District 0 Resolution No. 2025-32 RESPONDING TO TIMELY FILED WRITTEN OBJECTIONS TO THE PROPOSED INCREASE IN WATER RATES PURSUANT TO THE REQUIREMENTS OF AB 2257 AND MAKING DETERMINATIONS REQUIRED BY AB 2257 WHEREAS, Truckee Donner Public Utility District ("District") operates and maintains a public potable water system, including approximately 13 deep wells,25 pump stations, 32 storage tanks, and more than 220 miles of pipeline, that serves approximately 13,750 customers; and WHEREAS, water systems are expensive to build and maintain and the District's system is more complex and costlier than many other systems because of the District's large geographic area, mountain terrain, winter weather, and need to size the system to have water to fight fire and meet the maximum daily demand for water during the relatively brief peak summer season; and WHEREAS, costs to operate the District's water system are rising due to many reasons, including increasing system maintenance costs, increasing capital infrastructure costs and compliance with state and federal regulations; and WHEREAS, the District does not receive property tax and relies almost entirely on rate revenue to fund the operation, repair, maintenance and improvement of its water system and to continue to reliably provide water services; and WHEREAS,the District contracted with DOWL Engineering for the development of an updated 10-year capital improvement plan ("CIP"), which revealed that the District would require significant increases in rate-funded capital expenditures over the next 10 years in order to address increasing construction costs,the ongoing need to harden water system reliability, construction of additional pipeline for system redundancy, continued maintenance of critical water system facilities, and replacing other facilities approaching the end of their useful life; and WHEREAS, at its regular meeting on July 16, 2025, the District's Board of Directors received a presentation from DOWL Engineering on the draft CIP; and WHEREAS, the District retained an independent rate consultant, HDR Engineering, Inc., to develop a comprehensive water rate study, the 2025 Water Rate Study, for the District to provide cost-based and proportional rates based on the District's specific system and customer characteristics by developing a revenue requirement, cost of service, and proposed rates that generate sufficient revenue to prudently fund the operating and capital needs of the District that comply with the requirements of applicable law, including California Constitution,Article XIII 1 Docusign Envelope ID:29766744-5BC5-46AF-B044-4FEF1E9182B7 D, section 6 ("Proposition 218"),using generally accepted methodologies of the American Water Works Association; and WHEREAS, on September 25, 2024, Governor Newsom signed into law State Assembly Bill 2257, codified as California Government Code sections 53759.1 and 53759.2 and made effective January 1, 2025 ("AB 2257); and WHEREAS, AB 2257 creates an exhaustion of administrative remedies requirement that, if implemented by a local public agency, requires ratepayers to timely submit a written objection regarding a proposed water rate change prior to the deadline established by the local public agency in order to have exhausted administrative remedies to thereafter potentially challenge a rate change under Proposition 218 and applicable law; and WHEREAS, at its regular meeting on September 3, 2025, the District's Board of Directors reviewed the 2025 Water Rate Study prepared by HDR Engineering, Inc., established proposed water rates for the years 2026-2030 in accordance with the 2025 Water Rate Study, determined to begin the rate adoption process in accordance with Proposition 218, and scheduled a public hearing for November 19, 2025; and WHEREAS, at its regular meeting on September 17, 2025, the District's Board of Directors adopted the CIP; and WHEREAS, on September 23, 2025, the District, pursuant to Proposition 218, provided Notice of Public Hearing: Proposed Water Rate Increases for 2026-2030 ("Notice") to property owners whose properties receive water service from the District; and WHEREAS, the Notice provided detailed instructions on how to file a protest and how to file an objection to the proposed rates; and WHEREAS, the Notice provided at least 45 days for property owners to review the proposed rates,the written basis for the rates, including the 2025 Water Rate Study, and to timely submit to the District a written objection pursuant to AB 2257 that specifies the grounds for alleging noncompliance with Proposition 218 or applicable law on or before 5:OOpm on November 7, 2025; and WHEREAS, the Notice provided at least 45 days, to review the proposed rates, the written basis for the rates, including the 2025 Water Rate Study, and to timely submit a protest to the proposed rates by the close of the public hearing on November 19, 2025; and WHEREAS, the District posted on its internet website, www.tdpud.org, the Notice, the written basis for the rates, including the 2025 Water Rate Study, the Prop 218 Written Objection Form, and other information pertaining to the proposed rates; and 2 Docusign Envelope ID:29766744-5BC5-46AF-B044-4FEF1E9182B7 WHEREAS, the Notice stated that the District offered to mail or email the written basis to any person upon request; and WHEREAS, the Notice included a prominently displayed statement that provided (a) all written objections must be submitted by 5:OOpm on November 7, 2025, and that failure to timely object or failure to submit a completed objection form bars any right to challenge the rates through a legal proceeding; and (b) all substantive and procedural requirements, including the requirement to fully complete a written objection form, and to timely and properly submit a written objection; and WHEREAS, as of 5:OOpm on November 7, District received twenty(20)written objections to the proposed water rate increases as set forth in the Notice and are attached to this Resolution in redacted form as Exhibit A("Objections"); and WHEREAS, this Resolution, as required by AB 2257, sets forth in Exhibit B the District's substantive basis for retaining the proposed rates in response to the Objections; and WHEREAS, this Resolution, as required by AB 2257, responds in writing to the Objections, including the grounds for which an Objection is not resulting in clarification of the proposed rates, reduction of the proposed rates, or further review, and that the District will continue with the protest hearing required by Proposition 218. NOW,THEREFORE,BE IT RESOLVED by the Board of Directors of the Truckee Donner Public Utility District as follows: 1. The recitals set forth in this Resolution are true and correct statements,and together with Exhibits A and B, are incorporated as operative parts of this Resolution and findings and determinations of the Board of Directors. 2. The Board of Directors finds the District has completed all requirements of AB 2257, including completing the procedures described in paragraphs (1) to (6) of subdivision (c) of Government Code section 53759.1. Consequently, any person or entity that has not timely submitted a written objection, or any person or entity that timely submitted an objection but did not properly complete a written objection form as described in Exhibit B, is prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for the proposed rates. 3. In exercising its legislative discretion, the Board of Directors of the District determines that: (1)the Objections and the District's responses thereto as set forth in Exhibit B do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the Objections; (3)based on the Objections no further review is necessary before making a determination on whether clarification or 3 Docusign Envelope ID:29766744-5BC5-46AF-B044-4FEF1E9182B7 reduction is needed; and (4) to proceed with the protest hearing required under Proposition 218, section 6 of Article XIII D of the California Constitution. 4. District staff is directed to mail a copy of this Resolution to each person who submitted a timely Objection to the address listed on the Objection. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a regular meeting thereof duly called and held within said District on the nineteenth day of November 2025 by the following roll call vote AYES: Murrell, Randall, Bender, Laliotis, Finn NOES: none ABSTAIN: none ABSENT: none Attachments Exhibit A—Written Objections (Redacted) Exhibit B —Responses to Written Objections TRUCKEE DONNER PUBLIC UTILITY DISTRICT: Signed by: r,�AVlsx FlIVU& 11/24/2025 AIFSDD2E6BFC4EC... Christa Finn, President of the Board of Directors Date Attest: Signed by-9... Martina Rochefort, District Clerk/ Executive Assistant to the General Manager 4 Exhibit A To Resolution No. 2025-32 Written Objections (Redacted) 4rTRUCKEE DONPJ,ER Public Proposi.�ion 218 Wriften Objection Form REQUIREMENTS.- (1 ) Each past of this form must be filled out completely. (2) To exhaust administrative remedies pursuant to government code section 53759. 1 all objections must be timely received by the Truckee Donner Public Utility District by 5 : 00 p.m. on November 7, 2025. Failure to timely submit a written abjection , with original signature, using this form bars any right to challenge the new rates through a Jegal proceeding alleging noncompliance with Article XI I D of the California constitution for these proposed new water rates. (3) General'Ized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-filled, noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: 1 OWNER OR RATEPAYER'S APN OF PROPERTY: 1 1 . Describe the Provision(s) of law that form the basis of your abjection, with specific reference to statutes, rules, constitutional previsions, regulations, and/or cases that alleged to be violated if the proposed rats are adapted. (Attach additional pages as nec.essary.) D, r-O 'k4v S+ pos' ke, CA... (t 2. Describe, with reference to your property and usage of water, haw the proposed rates violate the provisions of law you cited above. (Attach additianal pages as necessary.) CA It 45 (54!:�; U 0 Cat 3. Describe haw Truckee Donner Public Utility District may correct the alleged violations of law you stated above. Provide amendments to the proposed rues and the written basis for the amendments. (Attach additional pages as necessary.) Signature: Print Name: I 7a�— � tJ Date: 422 PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FARM WITH AN ORDINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 QQNNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED ( NOT POSTMARKED) BY 5:00 P.M . ON fVOVEt'Jf BER 7, 2025. ADDITIONAL PAGE (OPTIONAL) (Please number your responses) '40"TRUCKEE DONNER V Public Utility District Proposition 218 Written Objection Form REQUIREMENTS; ( 1 ) Each part of this form must be filled out completely. (2) To exhaust administrative remedies pursuant to government rode section 53759 . 1 III objections must be timely received by the Truckee Donner Public Utility District by 5_00 p.m. on November 7 , 2025. Failure to firnely submit a written objection, with. original signature, using this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XIII D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they Intend to pursue in a judicial action or proceeding. (4) Late-filed , noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER : LLY OWNER OR RATEPAYER'S ADDRESS: (Must be subject to proposed rates) :1 APN OF PROPERTY: 1 1 . Describe the provision(s) of law that form the basis of your objection, with specific reference to statutes, rules, constitutional provisions , regulations, andlor cases that are alleged to be violated if the proposed rites are adapted . Attach additional pales as necessary.) . ro 4-C -5+ -ro 4-e- t- r� clLflg e 2. Describe, with reference to your property and usage of water, how the proposed rates Violate the provisions of law you cited move. (Attach additional pages as necessary.) t&L , d t4p\. p rc) /-t7 U 6<je w Y 3 . Describe how Truckee Donner Public Utility District may correct the alleged violations of law you stated above. Provide amendments to the proposed rates and the written basis for the amendments_ (Attach additional pages as necessary.) L C�t r? 2 _'1*1 k. Signature: Print Name: *044 Date- C> C;� PLEASE HAND DELIVER DURING BUSINESS FOURS OR MAIL THIS COMPLETED OBJECTION FORM WITH AN QRGINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DQNIVER PASS ROAD, TRUCKEE, CALIFORNiA 96161 . TO BE CONSIDERED TIMELY, AVAILED OBJECTIONS MUST BE RECEIVED (NET POSTMARKED) BY 5 -00 P_ M_ ON NUVEMBER 7, 2025. ADDITIONAL PAGE (OPTIONAL) (Please number your responses) 3 TRUCKEE DONNER Public Utility District Proposnit&ion 218 Written Obiect'ion Form REQUIREMENTS: (1 ) Each part of this farm must be filled out completely. (2) To exhaust administrative remedies pursuant to govemment jade section 53759,. 1 III objections must be timely received by the Truckee Donner Public Utility District by 5:00 p.m. on November T, 2025. Failure to timely submit a written objection, with original signature, using this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XIII D of the California Constitution for these proposed new water rates. (3) generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-fled, nonc,ornpliant, ar incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: 0 Love- (—. OWNER. OR RATEPAYER'S ADDRESS: Must be subject t4 proposed rats) R 0 1 APN OF PROPERTY: t 1 . describe the provision(s) of few that form the basis of your objection, with specific reference to statutes, rules, constitutional provisions, regulations, andlor cases that are alleged to be violated if the proposed rates are adopted. (Attach additional pages as necessary.) A c- re., cc &rvcO (� Ov) SOC-tM"'-QJ a W/? UQ 14h ( i N Nqo 1% +lcd , n L oyr&- S�a� A�b I C., 2.. Describe, with reference to your property and usage of water, haw the proposed rakes violate the provisio-ns of taw you cited above. (Attach additional pages as necessary.) Ct r te Ca rc, J- C 4 3. Describe how Truckee Donner Public Utility District may correct the alleged violations of law you stated above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary.) R C-CXVJL , 1 Signature: - Print Name; �Date: 1 2 PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FORM VIIfTH AN dRGINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 , TO BE CONSIDERED TAMELY, MAILED OBJECTIONS MIDST BE RECEIVED (NOT POSTMARKED) BY 5:00 P.M. ON NOVEMBER 7, ADDITIONAL PAGE (OPTIONAL) (Please number your responses) Nc4, O'cs- e16 t",Ilt' rc rt TRUCKEE DONNER Public Utiiit District Propositsiaon 21 .8 Writ-ten -Objection Forrr� REQUIREMENTS: (1 ) Each part of this farm mast be Filled out completely. (2) To exhaust administrative remedies pursuant to govefnment code section 53759.1 all objections must be timely received by the Truckee Danger Public Utility District by S:Qa p.m. on November 7, 2025_ Failure to fimeiy submit a written abjectian, with original signaturer using this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XIII D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecling parties must present the exact issue (5) that they intend to pursue in a judicial action or proceeding. (4) Late-filed, noncornpiiant, or incomplete written objections without an angina signature will not be considered as satisfying the exhaustion of administrative remedies requirement.. NAME OF PROPERTY OWNER OR RATEPAYER: 117--: 4 cz W I ry�_. OWNER OR RATEPAYER'S ADDRESS: (Must be subject to proposed rate) IEA �'famper-t- 1. APN OF PROPERTY: 1 1 . Describe the provision(s) of law that form the basis of your objection, with specific reference to statutes, rules, Constitutional provisions, regulations, andlor cases that are alleged to be violated if the proposed rates are adapted . (Attach additional pages as -necessary.) 2. Describe, with reference to your p-roperty and usage of water, how the proposed rates violate the provisions of law you cited above. (Attach addidonal pages as necessary.) enc4os-ect 3. Describe Mow Truckee Danner Pubic Ufility District may correct the alleged violations of Law you staid above. Provide amendments to the proposed gates and the written basis for the amendments. (Attach additional pages as necessary. anclo&aA . • 1 Signature: Print fame: MM (am jo0+ � ��'' � cm ro'An . r 9 Dace: 1 0 , b • 2s PEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FORM Vll{TH AN ORGINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS ROAD, TRUCKLE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, i1JtiA1LE0 OBJECTIONS MUST BE RECEIVES (NOT POSTMARKED) BY S.Ofl P.M. ON NC?VEMBER 7, 2025. ADDITIONAL PAGE (OPTIONAL) (Please number your responses) 3 + 1 i ..T A.- w �- 4 ~Y { s� w CLCD CD ry Q. f CD ` ,-. 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Party sit doll &rs j *46 . 00 ) biaaAthly . Fe en will 16a payable , is advance , on May 1 , July 1 , September 1 . November 1 . JanuwrF 1 and March 1 ,, These fees will be considered delinquent 30 dmLFs after f -e billing date sac Rules & Regulations , page 13 , Article 111 , " Fee Stracturo " ) , Accounts that become delinquent are anaeased a five d9ijar, .5 . 0 ) late charge at thirty ( 30 ) -days iin4l 10 t 00 Red Tag Fee at forty five 4 ) days . Commercial and metered reeident. ial customers re111 be bi f led the following r06teG based on meter size ,effective May 1 * 1996 : . 4sa- ls meters 44 . O bimonthly , IS , 000 gallon blnonthly allotment ; 1 jr/4 W APO meters $ SS . 65 bimonthly , 31 , 230 gmllon blmontbly allntaent ; 1 1 " meters $ 66 , 78 bimonthly , 37 , SOG gallon bilsonthly al latment ; .2W meters * 39 v 94 bimonthly , 50 , 000 gallon bimonthly al latmont ; and .30 aeters $ 133 . 56 bimonthly , 75 , 000 gallon bimonthly allctmeiat . Tatar 000duMption in excess of the a l totment s indicated will be 1� 1 1 led the following excess consumption rates per each additional one thousand gallons or portion thereur In addition to the regular bimonthly rate jp-er meter size I to 20 , 00 a l a . . F , . ,. . . 60 1000 gallons 70 t Q00 to 40 , 000 Hal fans . . . . . . 70 / 1000 g.allann 40 , 940 and gallons Excess consumption fees will be tilled tim-antbly . RATES IH ADDITION TQ W*T R PB _A AHOIJAL AS. RSIMB11113 ; Unit 1 1ces 829000 Meter 3 4 * ( per Board M-tS . 8 35 92 ) 1 27 . GO Meter I " ( per Board Htg . 3 92 ) 19810.0 Cannection In,spectian Fee So , ao Meter Boxes 4" g iax l e ( when approved by G11WC- ) 4 . GG- 41 Double 49740 3 4'R Double /Double 440 * 00 10 Single ( when approved by GMWC ) 427 ,600 Service Call ( ituring office hours ) 20stO Disconnect for company Treasons 3 . 8 Obsolete Account ( m.in . 12 months ) 10 . 00 Transfer Fee ( change in awnershi p ) 10 .6 00 R e t urfted Check Fee 1 3 F QO Stack Forfeiture Fec 100W00 Pire Hydraat , meter deposit 600000 Fire hrdrantf metered water rate 2 . 75 1000 Sallone Fire hydrant , no-n-metered grater rate . 00 t ruck 1 a&A * * AFTER HHUR CHARGE9 WILL BE DOUBLE THE ABDV19 RATES * V PRICES ARE SUBJECT TO CHANG8 ADOPTED 1 6 RESOLUTION 96- 004 1997 .ATE SCHEDULE The following rates are levied in addition to annual asses- anent feeR an shares of qp t o FL T A BE-SIDE S' L : Forty six doll -arm ( 46 . GO) 'bimonthly , Fees will he pay-able , in advaar,* , an May 1 , July 1 m September 1 , November 1 , I&nvary 1 and itarelt I , Theme fees a i 1 1 'be considered delinquent 30 days after the Uilling date ( see Rules & Beg-u1ations , Page 13 , Article I 1 I . " Fee S tru ture " ) .. Accounts that become delinquent are assessed a five dollar $ . d0 ) 1ste charge at thirty ( 30 ) days and 410600 Reed Tag Fee at forty five ( 4 5 ) days 4 Late Fees , Red Tag Fees , and Shut -off fees become a Fart of your water h i l l i ag . Balances that remain unpaid into the next billing period wi11 be charged -additional late fees . COMMENCjAl_ .A AND _ E.RED ]RESIDENTIAL RATE : Commercial and aetered residential Customers will be billed the following rates based on meter size effective May 19 199 : - 1 met r . 0 t` �i onthl. 2 , 000 gallon 1r�isnnthlF allatitenVAOWWWON r Y 4 " meter 55 . 6S bisontlr 1 y ,. 32 , 250 ga 1 lon bimonthly a 1 lotaent 1 t 2 " meters S 66 . 79 bimonthly , 37 , 500 galleon biaon -thly allotment ; " mate-rig $ 99 . 04 bimonthly . 50 , 000 gallon biaonthly ai lotaent ; and 30 meters $ 133 . S6 bimonthly , 75 , 000 gallon bimonthl7 allotment , Water consumption in excess of the allotments indicated will he billed the f0110.wing excess eonsumption rates per each additional one thousand gal ionp or Portion thereof is addition to the regular bimonthly rate per meter sire : 20 , 000 to 40 , 006 gat ions . ■ . ■ t * . ; $ . 70/ 1000 gallons 40 } 000 and ga1101"s Excoee c0neuaptio-tt fees will Ibic billed b2imanthlF . BATES IN ADI)ITIOX ,TO WAT13H Eg R ANNUAL S.SES.0 ENTB : Unit 1 Face 829 . 00 Meter 3 /4 " ( -per Board Utg , 5 / 92 ) 121 . 00 Meter I " ( per Board Ut * / I 0 ) 188 . 00 Connection 1napection Fee 50 . 00 1[eter7� e ; 3 4 " Single ( when aipproved by GVVC ) 294 . 00 3 41 Double .97 . -0 3 4 " Doable/Double 440 . 00 1 " Single ( when approved by GUW ) 427 , 00 Service Call ( during office hours ) 20 . 00 Disconnect for 400agan reaaan s 25 , 00 Glosolate Account ( aino 12 months ) 10 . 00 Transfer Fee ( chanXe in ownership ) 10 . 00 Late Fee , Bloth Water & Assessment Accts . 5 . 00 Red Tag Fee , Both water Assat . Aec tow 10 . 0-0 Returned Check Fee 13 ■ 00 Stock Forfeiture Fee 100 . 00 Fire Hydrant , meter deposit .600 . 00 Fire hydrant , acterad Vatc r rate . 7 1001D gallons Fire bFdrant ,. non-metered water rate 2 . 00 truck load a 2 AFTER HOUR CHARGES WILL BE DOUBLB THE ABOVE RATES * 0 PRICES ARE SUBJECT TO CHANGE ADOPTED 04 2 / 97 REBOLUTIGN 97 - 003 # i-. 14630 Glenshire Drive R.O. Box. 62 Truckee, CA 96160 916•587■44 1 * 7 e49 (FAX) OMMMUMENNER.1% - - LV MWEEN&N. Op- -IEqmpm- Op-�-NNNNP� --Mvmp� MkTJAL11WATL8 COM'PANY :�l d & Marlon Kr tai E Dear PTO ert Owner(s) t It has come to our attention that you are the new owner ( s ) of the referenced lot of the GlenshirelDevonshire Subdivis - nn Truckee , California . Glenshire Mutual Water COMpany operates on behalf of the lot owners in Glenshirer Devonshire , The Meadows and Cambridge Estates . For each lot in these areas which is appurtenant to the property . The share appurtenant your land has been t �p t � transferred into your name , and the enclosed certificatei' s evidence of Your ownership in the Glenshire Mutual Water Copan n pr i u s. certificates have been cancelled on the books of the corporation and are no longer al id Whilethe share of stock is evidence of your right to re i . . water fOr your land and vote as a -shareholder to choose the Board of Directors , it also carries the responsibilityr id ' o � the necessary financing to operate and maintain the water system . Each share is subject to pay debts and expenses either incurred� a r estimated to be incurred , and for the creation of reserves annual and continued operation and maintenance of the water company . These assessments are used to keep the water company operational and to insure water availability at the time you develop your lot . All shareholders are equally responsible for the assessments even if they are not hooked u to the � water system and using water . Water users pay are additional fee to cover water delivery expenses . Currently , the annual assessment i $ 100 - 00 and is levied each May I t , with remittance due upon receipt , Non - payment of the assessment results in forfeiture of the ownership of the stock and right to water service . The Board of Directors may file application with the Department n rt nt of Corporations for redemption of these shares at the sole expense of the owner r ut in the � harp issuance , but the Board of Directors are not required t Our Articles of Incorporation authorize the company to sell water onlY to owners f our stock . This means that each homeowner i responsible for all water charges even i f the home is leased to another party . Larch 18 , 17 Page Two The Water company can direct the bimonthly billing tat m t to the tenant with written instructions from the owner ; however , this method of collection does not release the property owner from the -responsibility of payment . The homeowner will still be liable for all unpaid charges , including but not limited to late , red tag and reconnection fees . As the owner of this property , it i your responsibility to keep the cbmpan informed of your current address to insure receipt of all billings and commmunications . In the event you sell. your property , please return your share certificate and notify us immediately of the new wner " name and address so that we may issue a new certificate and apply the • assessment accordingly . You can instruct the title Qo an to do this for you through Crow Procedure. t the time your decide to build on your lot , you wili he required to complete and sign an application for water service , and pay the required fees . Applications will not be approved without the property owner7s signature , payment of all fees and any delinquent amounts due the water company . After the appliQation has been processed , and the service connection and lateral line inspected by our operations personnel , water service will be initiated . Services hooked up without an approved application and .inspection will be subjeQt to a penalty , and the connection will have to he uncovered at the owner ' s expense for inspection , Specifioa i n for installing the hook-up and the Company Operating Operati' ng Rules and Regulations will be provided at the time of application or upon request . We anticipate your interest in the organization . I f you have any questions or Irish additional information , please feel free to contact Sincerely , LE H I E MUTUAL WATER COMPANY , I Bill w i t nr General Manager BDws Enclosures file 4 r7 'r TRUCKEE DONNER Public Utl ity District Proposition 218 Wr*ltten abjection Fornn REQUIREMENTS: (1 ) Each part of this farm must be filled out completely. (2) T4 exhaust administrative remedies pursuant to government code section 53759. 1 all objections must be timely received by the Truckee Dinner Public Utility District by 5- 00 p.m. on November 7, 2025- Failure to timely submit a written objection, with original signature, using this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XI II D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-filed, nonccampliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: Crump, Christopher & Evangelita Trste OWNER OR RATEPAYER'S ADDRESS: (Must be subject to proposed rates ARN OF PROPERTY: 1 _ I _ Describe the provision(s) of law that form the basis of your abjection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted. (Attach additional pages as necessary.) This proposed rats increase appears to violate multiple provisions of mow: California Constitution., Article XIII D, S6(a)(1 )-(3) : Revenues may not exceed service casts and must be proportional. Government Cade S53756: Prohibits automatic or ongoing rate adjustments not tied to cost-of-service. Relevant Case Law: Howard Jarvis Taxpayers Assn. v. City of Fresno (2005),. 2. Describe, with reference to your property and usage of water, how the proposed rakes violate the provisions of law you cited above. (Attach addftionai pages as necessary.) Our property is a singi-e-family homy with moderate water consumption and conservation measures. Despite this, the proposed 6.5°/a annual increase would raise our bill significantly. The District has not provided a detailed cost-of-service analysis demonstrating that the cyst to supply, treat, and deliver water has increased proportionally- Some proposed revenue appears to fund capital projects or administrative costs unrelated to our service, and the automatic escalator violates government Code S53756. 3. Describe how Truckee Donner Public Utility District may correct the alleged vi6atfions of lava you stated above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary.) Please see attached memo dated October 16, 2025 Signature. Print Name va-- t- eLc IrL. , Cr ..� Date: PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FORM WITH AN ORGINAL SiGNATURE TO TRUCKEE ❑►QNNER PUBLIC UTILITY DISTRICT AT 11570 DC)NNER BASS ROAD, TRUCKEE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED (NOT POSTMARKED) BY 5:00 P.M . UN NQVEMBER 7, 2025. ADDITIONAL PAGE (OPTIONAL) (Please number your responses) } F alp 4 Date October 16, 2025 Truckee Danner Public Utility District 11570 Donner Pass Road Road Tnickee, California - 1 1 hristpe+er & Evangellita Crump Subject: Proposition 218 Protest - Objection to Proposed 6.5% Annual Water Rate Increase Pursuant to Article XI II D, Section 6 of the Galifomia Constitution (Proposition 1 ) and Government Code S53750 et. seq., M hereby submit this formal written protest and objection to the Truckee Donner Public Utility District's proposed 6.5% annual increase in water service rates. This proposed rate increase appears to violate multiple provisions of Law: California Constitution, Article XM D, S a l -( )4 Revenues may not exceed service costs and must be proportional. Government Code S537564 Prohibits automatic or ongoing rate adjustments not tied to cost-of-service. Relevant Case Law: Froward ,brie Taxpayers Assn. v. City of Fresno (2005), Capistrano Taxpayers Assn. v. City of Sate Juan Capistrano (2015), Bighorn-Desert Vier 'water Agency v. Vedil (2005). How the Proposed Fates Violate the Law as Applied to Our Property Our property is a single-family home with moderate water consumption and conservation measures. Despite this, the proposed 6.5% annual increase would raise our hill significantly. The District has not provided a detailed cost-of-service analysis demonstrating that the cost to supply, treat, and deliver water has increased proportionally. Some proposed revenue appears to fund capital projects or administrative costs unrelated to our service, and the automatic escalator violates Government Code S53756. Hoar Tahoe Donner Public Utility May correct the alleged Violatin To bring the proposed fates into compliance Wth Proposition 218 and related law, the following amendments are recommended: Y r 1 . Publish a Comprehensive Cost-of-Service Stuffy - Article Xa II d, 86(a)(1 )-(3). 2. Remove or aev'(se the Automatic 6.5 Escalator - Government Code S53756_ 3: Align Rates with Proportional Cost of Service - ArticJe XIII D, S6{a}(3). 4, Exclude Costs Unrelated to Current Service - Article XIII D, S6(a)(1 ), (4). 5. Conduce Independent Audit and Public Hearing - ArticEe XIII D, S6(a)(5). For these reasons, we respectfully request that TDPUD withdraw or revise the proposal to ensure compliance with Proposition 218 by providing full cost-of-service Justification, removing automatic escalators, and ensuring proportionality by Customer class- Sin ely,�n , � Christopher and Evangelita Crump �'TRUCKEE DONNER I Public Utility District Proposition 218 Wr*lften Objection Form REQUIREMENTS: ( 1 ) each part of this form must be filled out completely, (2) To exhaust administrative remedies pursuant to government code section 53759. 1 all objections must be timely received by the Truckee Donner Public Utility District by 5:00 p. m . on November ? , 2025_ Failure to timely submit a written objection , with original signature, using this form bars any right to challenge the new rues through a legal proceeding alleging noncompliance with Article X11 I D of the California Constituton for these proposed new water rates. (3) Generalized objectwons are insufficient. To satisfy this exhaustion of administrative remedies requirem ents , objecting parties must present the exact issue (s) that they intend to pursue in a judicial .action or proceeding. (4) Late-filed, noncompliant, or incomplete written objections without an origi:nal signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: Vicki Henry OWNER OR RATEPAYER'S ADDRESS. (Must be subject to proposed rates) APN OF PROPERTY: l .r 1 . Describe the provision( f I-aw that form the basis of your objection , With specific reference to statutes, rules, constitutional provisions, regulations, ndl r cases that are alleged to be violated if the proposed rates are adopted . (Attach additional pages a necessary.) Violation of Article l XIII D b) — Use of fees for general government purposes The inclusion of "General Manager," "Administrative Services," and "Board of Directors" operating costs in the grater rate base (as shown in the -draft rate study) suggests that rate revenue is being used for nan-water-reWed overhead, contrary to constitutional limits. Failure to comply with procedural transparency under Prop 218 The mailed notice and online materials om it key analytical tables (capital reserve balances, depreciation schedulles, and comparative t-per-gallon metrics) necessary for meaningful public review. Prop 218 mandates that ` the agency shall provide written riot-ice containing sufficient information to identify the amount, basis., and reason for the fee." TDPUD's notice provides only aggregated percentage increases. . Describer with reference to your property and usage of water, how the proposed rates violate the provisions of law you cited above. (Attach additional pages as necessary . ) Unlawful compounding and pre-authorization of future rates the Board seeks to approve five years of rate increases in one vote, binding future ratepayers and Boards without annual public recalculation f cost of service, violating Prop 218's requirement that each rate adjustment be independently justified. Disproportionate fixed charge component The Base Charge represents the "vast majority" of all residential bills (TDPUD"S own mailer confirms this). A high fixed charge, unrelated to actual water use, penalizes conservation and may be inconsistent with State Water Board efficiency policies and Prop 218's proportionality clause. . Describe how Truckee Donner Public Utility District may correct the alleged -violations of law you stated above. Provide mend nt to the pro-posed rates and the written basis for the amendments. (Attach additional pages as necessary.) t C E) Signature: Z-Jz VW1 116WJr[Pf___ )K. .. - - Print Name: ff ,` c- k Date: � D� 2ozz-P PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FORM WITH AN ORDINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DpNNER PASS READ , TRUCKEE, CALIFORNIA 96161 . TO 6E CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED (NET POSTMARKED) BY 5:00 P.M . ON NQ'UENIBER 7, 2025. ADDITIONAL PAGE (OPTIONAL) ( Please number your responses) Sec 3 : suspend adoption at the 2026-2030 rate schedule ; Direct HDR to prepare a revised, transparent, per-class cost-of-service report and updated capital needs assessment; Hold a new public hearing with at [east 45 days' native and full data disclosure; Adopt only -one-year adjustments, subject to independent audit and inflation verif ication . l 1 vv� TRUCKEE DONNER Public Utility District Proposition 218 Written Objection Form REQUIREMENTS: (1 ) Each park of this faun must be filled out completely, (2) To exhaust administrative remedies pursuant to government code section 53759. 1 all objections must be timely received by the Truckee Donner Public Utility District by 5:00 p. m. on November ?, 2025. Failure to timely submit a written objection, with original signature , using this farm bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XII! D of the California Constitution for these proposed new water rites. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requi;rernents, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-filed , noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY CHIN R 4R RATEPAYER., STf s Q1N 'S AQQR t be ject to proposed rates) i i APIV OF PROPERTY: 1 1 . Describe the prov'lsion(s) of law that firm the basis of your abjection, with specific reference to statutes, rules, constitutional provisions, regulations., and/or cases that are alleged to be violated 'if the proposed rates are adopted. (Attach additional pages as necessary. ) TkId � wpm, C R Q IVL Veaf-es CV ems- �p�✓ W"� fhx&&,( 1- �j.� Ca �.a� GDP r f 2. Describe, with reference to your property and usage of water, how the proposed rats violate the provisions of law you cited above. Attach additional pages as necessary.) o A A) 3. Describe how Truckee Donner Public Utility District may correct the alleged violations of lava you stated above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary. ) f � y 2 Signature: Print Name : Date: � PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OS,lECTtON FORM WITH ,AN QRGINAL SIGNATURE TO TRUCKEE [?ONNER PUBLIC UTILITY DISTRICT AT 11510 DONNER PASS ROAD, TRUCF{EE, CALIFORNIA 96161 . TO BE CONSIDERED T-IMELY, MAILED OBJECTIONS MUST BE RECEIVED (NET POSTMARKED) BY S:QQ P.M .. ON N0VEhIiBER 7, 2a2S. ADDITIONAL PACE (OPTIONAL) (Please number your responses � in rn rn nn m .-1 � M s� TRUCKEE DONNER D ;k Public Utility istrioct I Proposition 218 Written Objection Form REQUIREMENTS: ( 1 ) Each part of this firm must be filled out completely. (2) To exhaust administrative remedies pursuant to government code section 5375-9. 1 all objections must be timely received by the Truckee Donner Public Utility District by 5:00 p.m. on November 7, 2025. Failure to timely submit a wrl"tten objection, with originl signature , using this form bars any right to challenge the new rates trough a legal proceeding alleging noncamplia.nce vvsth Article XI1I D of the Cafiforni-a Constitution for these proposed new weer rues. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue- in a judicial action or proceeding . (4) Late-filed, nancompliant, or incomplete written objections without an anginal signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: Janet Coombs OWNER OR RATEPAYER'S ADDRESS: (Must be subject to proposed rates) F1 - - 1 - - . - - I APN OF PROPERTY.- l 1 . [describe the pr i i n(s) of law that form the basis of your objection, with specific reference. to statutes , rules, constitutional provisions, regulations, and/or r cases that are alleged to. be violated if the proposed rates are adopted . (Attach additional pages as necessary.) Prop 218 requires voter approval for new r increased property-related fees, including water rates. It mandates that water rate structures be based on the t of providing service and can not be unjustified or inflated . . Describe, with reference to your property and usage of water, how the proposed rates viol-ate the provisions of law you cited above. tfh additional pages as necessary.) My property is at the bottom of TD and in Zone 2. My water use fluctuates monthly based on my use. In the winter months it 'is almost nil. I am already being charged pump charge, base rate and cornmodily changes The proposed annual increases do not reflect the true cost of providing service. 3. Describe how Truckee Donner Pub II C Utility District may correct the alleged violations of law you stated above. Provide amendments to the proposed rates and the rritt n basis for the amendments . (Attach additional pages as necessary.) 2 Signature: Print Name: � ��� b S. Date: I D— 3 .-- PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FARM WITH AN ORDINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11510 DONNER PASS ROAD , TRUCKEE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED (NOT POSTMARKED) BY 5:00 P. M . ON NOVEMBER 7 , 2025. ADDITIONAL PACE (OPTIONAL) (Please number your responses) 3 n 6'� TRUCKEE DONNER Public Utility District Proposition Form REQUIREMENTS: ( 1 ) Each part of this form must be filled out completely. (2) To exhaust administrative remedies pursuant to government code section 53759. 1 II objections must be timely received by the Truckee Donner Public Utility District b 5:00 p. m . are November 7, 2025. Failure to timely submit a written objection, with original signature ' using this form bars any right to challenge the new rates through legal proceeding alleging noncompliance with Article XIII D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue that they intend to pursue in a judicial action or pr - din - t Late-filed , noncompliant, or incc)rnplete written objections without an original signaturewill not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY T OWNER RATEPAYER: David and Nancy Tattersall OWNER OR RATEPAYER'S ADDRESS : (Must be subject to proposed rates) APN OF PROPERTY: 1 1 , Describe the provision(s) o law that form the basis of your objection , with specific reference to statutes: rules} constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted . ttach additional pages as necessary_) No basis has been described for why the rates should be increased so much. W have received no detailed information supporting the rate increase. . Describe, with reference to your property and usage of water, how the proposed rates violate the provisions of law you cited above. (Attach additional pages as necessary. ) The higher rates to be applied to part time residents is a clear case of discrimination. Part time residents will pay the same base fee as full time residents. There is no basi-SI for charging a higher just because you are a part time resident. . Describe how Truckee Donner Public Utility District may correct the alleged violations f law you stated above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary. ) 2 Signature '. Prim Name: Date- � P� PLE SE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTIONFORM WITH AN ORGINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNE DONNER PASS ROADI TRUC EE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS MUST E RECEIVED (NOT T POSTMARKED) BY 5:00 P. M . ON NOVEMBER 7, 2025. ADDITIONAL PAGE (OPTIONAL ) (Please number your responses) 3 TRUCKEE DONNER Pub ,lic Utility Distr 'ict Propos 'ition 218 Written Objection For�n REQUIREMENTS : ( 1 ) Each park of this form must be filled out completely. (2). To exhaust administrative remedies pursuant to government code section 53759. 1 all objections must be timely received by the Truckee Dinner Public Utility District by 5 : 00 p.m . on November 7 , 2025. Failure to timely submit a written objection, with original signature, wing this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XI! ! D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient, To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-filed , noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY 01NNER 4R RATEPAYER : Joshua Ridless OWNER OR RATEPAYER'S ADDRESS: (Must be subject to proposed rates) APN OF PROPERTY: 1 ■ 1 . Describe the Provision(s) of law that fora the basis of your objection, with specific reference to statutes, rules, constitutional provisions, rui[ati , and/or cases that are alleged to be violated if the proposed rates are -@idc-pt d . (Attach additional pages as necessary.) . Describe with reference to your property and usage of water, how the proposed rates violate the provisions of law you cited above. (Attach addition a] pages as necessary.) . Describe how Truckee Donner Public Utility District may correct the alleged violations of law you stated above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as n - r . r 2 `1 Signature-. _ Print Name. Joshua Ridless Date : 9128t25 PLEASE HAND DELIVER DURING BUSINESS HOURS OR N1A,1L THIS COMPLETED OBJECTION FORM VIJiTH AN ORGINp,L SIGNATURE TO TRIJCICEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS READ, TRUCKEE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS [MUST BE RECEIVED SNOT POSTMARKED) BY 6:00 P . M. ON NOVEN1BER 7, 2025. ADDITIONAL PAGE (OPTIONAL) (Please number your responses) i TRUCK'E' E DONNER X Publmc Utifit ra I St. I Ct PV Proposit.- ion 218 Wrloften Objection Forrr� REQUIREMENTS: ( 1 ) Each pert of this form must be filled out completely. (2) To exhaust administrative remedies pursuant to government code section 53759. 1 all objections must be timely received by the Truckee Donner Public Utility District by 5:00 p.m. an November a, 2025. Failure to timely submit a written objection, with original signature, using this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article III! D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-filed, noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: Erika Frick OWNI YER'S ADDRESS: (Must be subject to proposed rates) APN OF PROPERTY-. 1 1 . Describe the provision(s) of haw that form the basis of your obj-ection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted. (Attach additional pages as necessary.) he step increases likely violate Art. Xffl [], §6(b) of the CA Constitubon (Prop 218), hfch bars rates exceeding proportional service costs or generating excess revenue. he lack of detailed financial data also raises concerns under Gov. Grade §66013, hich requires capital charges to reflect actual pasts, and under PUC §§ 1 ;28111 12823, mandating fair, reasonable, non-discriminatory rates. The structure may urther violate Art. X, §2 of the CA ConstItution by discouraging beneficial water use hrough excessive p(ming. Additionally, the increases raise equal protection issues rider federal and state Constitutions dui to their disproportionate impact on certain eographicleleva#ian-based customer groups without sufficient justification. Though �t�ce was given, it lacked the clarity and specificity needed for meaningful pubic a rticipation, potentially violating Prop 218 and the CA Public Records Act, 2. Describe, with reference to your property and usage of water, how the proposed rats violate the provisions of Iorrr you cited above. (Attach additional pages as necessary.) rdhe resident in Pump Zone 4, my property is subject 10 even higher water charges in district. No clear Cost-of-service data or justificafion was provided for these ispraportivnate rate hikes, which far exceed 'Inflation and expend years into the future itnout oasis. This lack of transparency violates Art. xiii a, §6(b) (Prop. 218), equiring fees to match proportional service costs, and PUC §§12811 , 128239 andating fair, reasonable rates. Base rates for all zones have already risen. sharp4y n recent years, and proposed multi-year increases continue this excessive trend. bsent clear evidence linking hikes to actual service tests, they appear to violate fop 218, Gov. Code §66013, and equal protection principles byirnposing unjustified urdens, especially on higher-elevation customers. 3. Describe how Truckee Donner Public Utility district may correct the alleged violations of law you stag above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional' pales as necessary.) Firm is not workirtg . Please see Box on page 3 for this answer. 2 Signature: Oda Print Name:: Date.: --- � ��j � ►�� � . . .__��._ PLEASE HAND DELIVER DURING 'BUSINESS HOURS OR MAIL 'THIS COMPLETED OBJECTi0N FORM WITH AN dRGINAL SIGNATURE TO TRUCKLE DONiVER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED (NOT POSTMARKED) BY 5:00 P.M. ON NQVEMBER 7, 20-25. ADDITIONAL PAGE (OPTIONAL.) (Please number your responses) nswer to quesflon 3 above. DPlli3 should cancel all proposed rats increases. Recent hikes have already far exceeded inflation with no clear cost justification. No further ncreases are warranted, mendment: reeze rates at Current levels Trough the proposed period. 8l5: aSt increases have been excessive and unsupported by transparent data, urther hikes Irkely viol ate Prop 218, Gov. Cade §66013, and PUC §§1281 # , 12823. OPUD :shoukd focus on better fiscW management, net higher rates. 3 TRUCKEE DONNER Publ -Ic Utility 'District Proposition 218 W Objection For REQUIREMENTS: ( 1 ) Each part of this farm must be filed out completely. (2) To exhaust administrative remedies pursuant to go-vernment cede section 53759. 1 all objections must be timely received by the Truckee Donner Public Utility District by 5: 00 p. m . on November 7, 2025. Failure to timely submit a written objection, with original signature, using this form bars any tight to challenge the new rates through a legal proceeding alleging noncompliance with Article XI I 10 of the CaEifornia Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-filed , noncompliant, or incomplete written objections without an original signature will not be cansidered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: Flavio SCarra OWNER DR RATEPAYER' S ADDRESS: Must be subject to proposed rates) APN OF PROPERTY: 1 . Describe the provision(s) of law that fora the basis of your objectim, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violatedif the proposed rates are adopted. (Attach additional pages as necessary. ) I am writing to formally object to the proposed water rate increases scheduled through 2030, which would raise the rate from 103. 03 to 139- 58 — a substantial increase of approximately 35%. This significant escaJatlon will pl'ace a considerable financial burden on all households, regardless of their actual grater usage* . Describe, with reference to your property and usage of water, how the proposed rates v(olate the provisions of law you cited above. (Attach additional pages as necessary- ) strongly urge you to reconsider the structure. of these rate increases. Specifically, I recommend that the policy be revised to avoid penalizing households with loner consumption , such as those using their property as a vacation home or families who actively conserve water. The current li-cy discourages conservation and disproportionately impacts those who use less water, which may raise questions regarding its fairness and legality. 3. Describe how Truckee Donner Public Utility District may correct the alleged violations of law you stated above. Provide m ndm nt to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary. ) Pie RN Qtnlmwr Ihig:�i;SP ee M- 11anal xMMOFI M V G Vi Wn 10 rQPFOPO W RIM4c W I{e pgP 116 Ur rggjvgl rrr<1 ymr rQu,ow and 21 wdr hd ttroi'4 F adwacsta to a fad a0olkcw LhaL ocher rpRHE m equtable vreairr.erl and inc@nbNrea wacar t]n§�titf i{ii 2 Signatur . Print Name: f Ln v i �� c, c� ,, R JR,09~ Date, PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FORM WITH AN ORDINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS READ, TRUGKEE , CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED (NOT POSTMARKED) BY S: OD P.M . 01V NOVEMBER 7, 2025. ADDITIONAL PAGE ( OPTIONAL) (Please number your response) 3 7 TRUCKEE DONNER Public rr Proposi:tion 218 Written Obj' ect'ion Form REQUIREMENTS: (1 ) Each part of this farm must be filled out completely. (2) To exhaust administrative remedies pursuant to government cede section 53759. 1 all objections mutt be timely received by the Truckee Donner Public Utility District by 5.00 p.m . on November 7, 2925, Failure to timeiy submit a written objection, with original signature, using this farm bars any ri ght to challenge the new rats through a legal proceeding alleging noncompliance with Article Xfll D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must present the exact issue (s) that they intend to pursue in a judicial action or proceeding- (4) Late-filed , noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER- Terrence Conway Q11V1VER OR RATEPAYER' S ADDRESS: (Must be subject to proposed rats) APN OF PROPERTY, I . Describe the provision(s) of law that form the basis of your objection, with specific reference to statutes, rules, constitutional provisions, regulations: and/or cases that are alleged to be violated if the proposed rates are adopted. (Attach additional page. as necessary. The proposed TDPLJD water rate increases vioiate provisions of Article xiii C), sect-Ion 6 of tl ai-Itornia constitution (Proposition 18), whicti requires that pr p r-ty-related charges such as grater rate Not exceed the funds f ouired to provide the service (Section (b)(I )): Be used only for the cost of providing the service (Section 6(0)(2)), Be proportional to the cost of service attributable to each parcel (Sector (b)( ))a and Not impose fees for ser%kes not Cirectly recelved by the parcel ( e on (1 (5))� The proposed rate arras ; I=u-o' g t v tin-uas ci "cu m p -zone, sucma(ges. appeal to violate tt -e con!3titutirj n at provisions ty sh-Ittiq excessive and disproportionate costs onto certain customers without clear and trap p r m . [describe, with reference. to your property and usage of welter, how the proposed rates violate the provisions of law you cited above, (Attach additional pages as necessary, l reside are Pump Zone 4, which is subject to are additional $3.06 per 1 ,000 llon surcharge on top of base and commodity water rates. This surcharge i scheduled to increase further under the proposed 0 — 0 0 rate plan. These 9 vati n-based charges ciisproportionately impact my property aTid others in higher zones by imposing hundreds of dollars per year in additional cotes unreiated to actual water usage or service q alfty- Th-e compounding %— .5% annual rate i nc reases furth r a mp lity t his inequit , resulting in totai rate g rowth far aWve inflation a vri-thout sufficient demonstration that these revenues are necmary to provide service to 'MY proprt . therefore, the proposed rates are not proportional to the cost of service, exceed the rr a ors t)1e cost to serve - Describe how Truckee Donner Public Utility District may correct the alleged violations of law you stated Above_ Provide -amendments to the proposed rates and the written bas'Is for the amendments. (Attach additional pages as necessary. ) 7 o co rrect these violations ancl comp ith Proposition 21 a, Me Distric!"m0-U_ Suspend implementation of the proposed 0 — 0 0 water rate increases until revised} transparent cost-of-service study is completed and publicly reviewed„ Reevaluate the elevation-based Vump zone"' surcharges to ensure they are strictly proportional to the actual incremental cost of purnping water to each zone, supported by verifiable data, Provide clear documentation detailing how projected revenues will be used exclusively for water service costs, consistent with Article XIII D , Section (b) ) . Conduct meaningful community engagement and public workshops before adopting any new long-term rate adjustments. These actions would restore compliance with Proposition 218 and ensure the rate 4 2 Signature: f Print dame: q CcO v)4 �L Date: i2cA, PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FCIRIUI WITH AN ORG[NAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 . TO BE CONSIDERED TIMELY, MAiLED OBJECTIONS MUST BE RECEIVED SNOT POSTMARKED} BY 5:00 P .M_ ON NOVEMBER 7, 2025. ADDITIONAL PAGE ( OPTIONAL) ( Please number your responses 3 Data: 10- 1 - To: Board of Directors, Truckee Donner Public Utility District From: Michael T. Shellito Service Address: Subject: Written Objection Form in Protest of Proposed Water late Increases for 2026-2030 pursuant nt to Government Code section . 1 and in accordance with California Proposition 218. 1 hereby submit this formal written protest against the proposed water rate increases for 2026-2030 as described in TDPUD's Notice of Public Hearing . I do not support the adoption f the proposed rate schedule. 1 . [describe the provision(s) of law -that form the basis of your objection, with specific reference to. statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted. (Attach. additional pages as necessary.) Pursuant to California Government Code § 53759. 1 and Article X111 L , Sections 2 & 6 of the California Constitution, I hereby object on the following legal and factual grounds: Violation of Article X111 D § 6(b)(1 ) - Lack of proportionality and nexus t -cost of service The proposed . co annual in-crease appears uniform across all customer classes and years without a demonstrated cost-of-service analysis per class or zone. Prop 218 requires fees to be no greater than the proportional cost of service attributable to each parcel. The HDP rate study projects uniform increases regardless of Consumption , service elevation, or infrastructure depreciation schedule, which may constitute an illegal cross-subsidy between customer classes. Failure to demonstrate actual financial necessity The HDR 2025 draft study assumes expenditure growth (administrative, IT, conservatrIon , "interdepartmental rent") exceeding inflation and without line-item justification . The report shows expenditures growing faster than revenues, suggesting 1'nfl t d internal cost allocations and seif- created def icits rather than verifiable system costs. Violation of Article XI11 D § b)(3) - Use of fees for general government purposes The inclusion of "General Manager, " "Administrative Services, " and " Board of Directors" operating costs in the water rate base (as shown in the draft rate study) suggests that rate revenue is being used for ran-water-related overhead, contrary to constitutional limits. Failure to comply with procedural transparency under Prop 218 The railed notice and online materials omit key analytical tables (capital reserve balances, depreciation schedules, and comparative cost-per-gal lon metrics) necessary for meaningful public review. Prop 218 mandates that "the agency shall provide written notice containing sufficient information to. identify the amount, basis, and reason for the fee, " TDPUD"s notice provides only aggregated percentage increases. Inconsistent with Prop b)( - Excessive reserve Binding The study references " rate-funded capital's f - ' .6 million per year, which appears to exceed current-year depreciation and may establish unauthorized reserves beyond reasonable p- rati nal need. Failure to re-evaluate after material assumptions. han Section 5.7 of the HDR Draft Report admits that "should ould these assumptions charge, the proposed rate adjustments may also need to be revised .." Inflation, growth , and capital project costs have already shifted since the 2024-2025 base data. Adoption without an updated financial test constitutes arbitrary and capricious action under administrative law. Unlawful compounding and re-authorization of future rates The Board seeks t approve five years of rate increases in one vote, binding future ratepayers and Boards without annual public recalculation of cost of service, violating Prop 21 8's re irrnt that each rate adjustment be independently justified. . Describe, with reference to your property and usage of water, how the road rates violate the provisions of law you cited above. Disproportionate fixed charge component The Base Charge- represents the `.`vast majority" of all residential bills (TIDPLID's own mailer corlirms this). A high h fixed charge, unrelated to actual water use, penalizes conservation and may be inconsistent walth State Water~ Board efficiency policies and Prop 218's proportionality clause, 3. Describe how Truckee Donn r Public Utility District may correct the alleged violations of law you stated above. Provide amendments to the proposed rates and the written basis for the amendments. I request that the Board : Suspend adoption of the 2026-2-030 rate scheduler Direct HDR to prepare a revised , transparent, per-class cost-of-service report and updated capital needs assessment; Hold a new public hearing with at least 45 days' notice and full data disclosure; Adopt only one-year adjustments, subject to independent audit and inflation verification . i n tUr � - - -3rint lame: Michael T. Sh ll ito Date: 10-13-2025 i� TRUCXEE DONNER FF Public Utollity District Proposition 218 Wirmitten Objection Form REQUIREMENTS ( 1 ) Each part of this form must be filledout completely. (2) To exhaust administrative remedies pursuant to government code section 53759. 1 all objections rnu t be timely received by the Truckee Conner Public Utility District b .5AP-00 p.m. on November 7 , 2025. Failure to timely submit a written objection, with original signature, -ire th form bars any right to challenge the new rates through legal proceeding allegirg noncompliance wit h Article X I I I D of the California Constitution -for these proposed new water rates. (3) Generalized objections are insufficient- To satisfy this exhaustion of dmini tr ti remedies requirements} objecting parties must present the exact issue that they intend to pursue in a judicial action or proceeding , (4) Late-fled , noncompliant, or incomplete written objer0ons without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. TAME OF PROPERTY T WIE RATEPAYER: JDerrek Horn 0VVNER OR RATEPAYER'S ADDRESS- (Must be subject to proposed rates) APN OF PROPERTY- I . Describe the ro i -Ion(s) of law that fora the basis of your objection, with specific reference to statutes, rui -, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted. (Attach additional pages a necessary) The. proposed 0 0 water rate increases violate Article X111 D, SeOw (b)(1 ) of the ',Calffomia Constitution bemuse -the rates are not proporkmal to the acWai cosl of service 16r each parcel or customer class. The proposed increases also violate Artide X111 D$ Section (h)( ) bemuse system revenues are bei'ng allocated toward administraUve and overhead uses nol directly tad to water serAce delivery. Additionally, the District is attemptng to pre-authorize uld-year compounded rate increases without recalculatrng cost-of-service annually, Mich ts inconsistent with Proposkion 218 procedural and transparency requirements and Government Code § 53759. 1 . . Describe, with reference to your propel and usage of water, how the proposed rates violate the provisions of law you cited above. (Attach additional pages as necessary. ) The majority of my bill is determined the fixed Base Charge, which does not reflect my actual - water usage, This caul" one to pay more than the proporhonai cost of senAice required #c serve my parcel. Because the rate structure -relies hoavily on fixed charges rather than usage-based costs, I am financially penalized despite oonserving water. This ates the requirement that fees not exceed the proportional cost of sere f6r my paroel. The uniform annual increases also do not r tlect y p 's spec demand I evel, elevation zone costs, or meter ca ac , and therefore lack the consthuflonally required cost-of-service nexus. . Describe how Truckee Donner Public Utility District may correct the alleged violations of lam you stated above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary. ) TM Dom"a M'O"~,Map die PMN"b" sir""&W kid .O*A!* ilk i�wre��� �.����.ae� � ��F Mr+�r�.+4 Tray amu" —�On wow 2 Signature: Print � �� ee�rr7eeHrr� �i Date: 11 /4/2025 PLEASE HAND DELtVER DURING BUSINESS HOURS OR MAIL THIS COMPLE.TED OBJECTION FORM WITH AN ORGINAL SIGNATURE TO TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570. DONNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 _ TO SE CONSIDERED T[MEL , MAILED OBJECTIONS MUST BE RECEIVED (NOT POSTMARKED) P. M. ON NOVEMBER7, 2025 . ADDITIONAL PAGE (OPTIONAL) (Please number your responses) (added the 'Describe how- TDPUD may correct the violations here due t formatting :issues) The District should suspend adoption of the proposed five-year rate schedule and ire # adopt only a single-year rate adjustment that i tied to updated, transparent,, and independently verified cost-of-service calculations.. The District trict ould revise the rate structure to reduce the fixed Base Charge and increase the volurrietric rate component so that charges more closely -reflect actual u-sage and parcel- specific cost of service, revised cost-of-service analysis must be publicly released with line-item operating, capital} administrative, and reserve allocation detail prior to any new h a ring and rate adopfion. TRUCKEE DONNER Public Utility District 11F Proposition 2�18 Writ��n Objection Form REQUIREMENTS : ( 1 ) Each part of this form must be filled out completely. (2) To exhaust administrative remedies pursuant to government caste section 53759. 1 all objections must be timely received by the Truckee Donner Public Utility District by S:Ob p.m. an November 7, 2025_ Failure to timely submit a written objection , ►nr th original signature , using this form bars any right to challenge the new rakes through a legaa proceeding alleging noncompliance with Article 7CII1 D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties mist present the exact issue (s) that they intend to pursue in a judicial action or proceeding . (4) Late-filed , noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement. NAME 4F PROPERTY OWNER OR RATEPAYER : Terrance Oliver OWNER OR RATEPAYER'S ADDRESS : (Must be subject to proposed rates APN OF PROPERTY: l 1 . Describe the provision(s) of law that form the basis f your objection , with specific reference to statutes, rules, constitutional provisions} regulations, rid/or cases that are alleged to be iolated if the proposed rates are adopted . (Attach additional pages necessary.) I am concerned that proposed rate increases (e.g . water rates, utilities, or tax assessments) will place an undue financial burden on residents in Truckee particularly those on fixed or moderate incomes. . Describe,, with reference to your property and usage of water, how the proposed rates violate the provisions of law you cited above. (Attach additional pages as necessary.) Because property values and assessments in our area have already been rising substantially, further increases in rates will magnify housing cost pressures. Many homeowners and renters are already stretched . A rate hike may lead to increased pushback or public dissatisfaction, and could reduce trust in local governance if residents feel sudden increases are not justified . . Describe how Truckee Donner Public Utility District may correct the alleged violations of law you stated above, Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary.) I Uw r&nueSl*&IN tilt r L+rWF-OMte 8fW vied ft eMf'e OWU214115.0 OWW Oft 047-MAMPA Wrte 4t d8 WM WWRIS 1W W bbaf bN8WOvrhB 48 C. inrrMWA iON."WW".WrWW-£!5WE 3uOINY�4512-AM m6d hr.OLAh"b 2 f Signature: Print Name: Date: A>/ev �2' <-- .1 /1_00 PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAIL THIS COMPLETED OBJECTION FORM WITH AN ORGINAL SIGNATURE TO TRUGKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS RQAL, TRUCKED , CALIF_C]RNIA969fi1 . TO BE CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED (NOT POSTMARKED) 8Y 5:00 P . M , ON NOVEMBER 7, 2Q25 . ADDITIONAL PAGE (OPTIONAL) (Please number your responses) 3 Protest - For inclusion in public count under Prop 218 am the owner/ratepayer of the property located at: Service Address - Name: Jennifer Sanchez Signature-.,, Date: 10-1 - 0 I hereby submil this formal written protest against the proposed water rate increases for 0 - 0 0 as described in TDPUD's Notice of Public Hearing . do not support the adoption of the proposed rate schedule. From my understanding the proposed plan to raise our rates by more than 1 % every year for the next five years. That's a % increase in five years. The consumer price index for California hovers around % per year for increases in utilities . This proposed rate is too vouch! 11 _ Legal Objection and Grounds for Challenge Pursuant to California Government Code § 53759 . 1 and Article X111 D, Sections 2 & 6 of the California Constitution, I hereby object on the following legal and factual grounds-. Violation of Article XIII D § b 1 - Lack of proportionality and :nexus to cost of service The proposed _ % annual increase appears uniform across all customer classes and years without a demon tr ted cost-of-service analysis per class or zone. Prop 218 requires fees to be no greater than the proportional cost of service attributable to each parcel . The HDR rate -study projects uniform, increases regardless of consumption, service elevation, or infrastructure depreciation schedule, which may constitute an illegal cross-subsidy between customer classes . Failure to der on trace actual financial necessity The HDR 2025 draft study assumes expenditure growth (administrative, IT, conservation, "interdepartmental rent") exceeding inflation and without lire-item justification . The report shows expenditures growing faster than revenues, suggesting inflated internal cost allocations and self-created deficits rather than verifiable system costs_ Violation of Article XII11 D § - Use of fees for general gGvernment purposes The inclusion of f'General Manager,"' "Administrative Services,"' and "Board of Directors" operating costs in the water rate base shown in the draft rate study) suggests that rate revenue is being used for non- water-related overhead, contrary to constitutional limits_ Failure to comply with procedural transparency under Prop 218 The mailed notice and online materials omit key analytical table (capital reserve balances, depreciation schedules, and comparative co i-per-gallon metrics) necessary for meaningful public review. Prop 218 mandates that "the agency shall provide written notice containing sufficient information to identify the amount, basis, and reason for the fee." TDPUD's notice provides only aggregated percentage increases . Inconsistent with Prop 218 § b - Excessive reserve funding The study references Odrate-funded capital Op of -7. 6 million per year, which appears to exceed current-year depreciation and may establish hi unauthorized reserves beyond reasonable operational need . Failure to re-evaluate after material assumptions change Section 5.7 of the HDR Draft Deport admits that "should these assumptions change, the proposed rate adjustments may also need to he revised ." Inflation, growth, and capital project costs have already shifted since the 2024- 2025 base data. Adoption without an updated financial test constitutes arbitrary and capricious action under administrative law. Unlawful compounding and pre-authorization of future rates The Board seeks to approve five years of rate increases in one vote, binding future ratepayers and Boards without annual public recalculation of cost of service, violating Prop 21 8's reg u irement that each rate adj u iment be independently justified . Disproportionate fixed charge com ponent The Base Charge represents the r`vasi majority" of all residential bills (TDPUD's own mailer confirms this) . A high fixed charge, unrelated to actual water use, penalizes conservation and may be inconsistent with State Water Board efficiency policies and Prop 21 8's proportionality clause. . Requested Remedies To cure these deficiencies, I request that the Board: Suspend adoption of the — 0 0 rate schedule; Direct HDR to prepare a revised, transparent, per-class cost-of-service report and updated capital needs assessment, Hold a new public hearing with at least 45 days' notice and full data disclosure; Adopt only one-year adjustments, subject to independent audit and inflation verification- IV. Signature for Legal Standing I understand that failure to submit this objection with original signature and by : 00 P on November 7, 2025 may waive my right to legal challenge. This objection is therefore submitted in full compliance with Government Code § 53759 . 1 . Signature L I - Service Address - : Name: Jennifer Sanchez Tr TRUCKEE DONNER Public Utility District Proposition 218 Wr'Itten -Object'ion Form REQUIREMENTS: (1 ) Each part of this farm mist be filled out completely. (2) To exhaust administrative remedies pursuant to government code section 53759, 1 all objections must be timely received by the Truckee Donner Public Utility District by 5:00 .p.m . an November 7, 2025. Failure to timely submit a written objection , with originsl signature, using this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XIII D of the California Constitution for these proposed new water rates. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties must preset the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-fled, noncompliant, or incomplete written objections without an original signature will not be considered as satisfying the exhaustion of administrative remedies requirement, NAME OF PROPERTY OWNER OR RATEPAYER: OWNER OR RATEPAYER'S ADDRESS: (Must be subject to proposed rates APN OF PROPERTY: l • 1 . Describe the provision(s) of law that form the basis of your objection, with SpeCIfIC reference to statutes, rules, constitutional provisions, regulations, andlor cases that are alleged to be violated if the proposed rates are adopted. (Attach additional pages as necessary.) r 2. Describe, with reference to your property and usage of water, haw the proposed rates violate the provisions cf law you cited above. (Attach additional pages as necessary.) -L4�5 YY\9— C/konj '71 3 . Describe how Truckee Donner Public Utility District may correct the alleged violations of law you stated above. Provide amendments to the proposed sakes and the written basis for the amendments. (Attach additional pages as necessary.) Signature: vp Print Name.: date: ICA�j � PLEASE HAND DELIVER DURING BUSINESS HOURS OR MAID. THIS COMPLE'TED OBJECTION FARM VIf9TH AN OFtGINAL SIGNATURE TO TRUCKEE DQNNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 . TO 6E CONSIDERED TIMELY, MAILED OBJECTIONS MUST BE RECEIVED (NOT POSTMARKED) BY 5 :00 P.M. ON NOVEMBER 7, 2Q25. ADDITIONAL PAGE (OPTIONAL) Please number your responses) 3 I I/ D /I TRUCKEE DONNER Public Utility District Proposition 218 Wr'l'tten Objection Form REQUIREMENTS: (1 ) each part of this form must be filled out completely. (2) To exhaust administrative remedies pursuant to govemment code section 53759. 1 all objections must be timely received by the Truckee Donner Pubic Utift District by 5:00 p.m, on November 7, 2025. Failure to timely submit a written objection, with original signature, using this form bars any right to challenge the new rates through a legal proceeding alleging noncompliance with Article XIII D of the California Constitution for thus proposed new water rites. (3) Generalized objections are insufficient. To satisfy this exhaustion of administrative remedies requirements, objecting parties mush present the exact issue (s) that they intend to pursue in a judicial action or proceeding, (4) Late fled, noncompliant, or incomplete wriften objections without an original signature will net be considered as satisfying the exhauskGon of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: I.Jennifer Wilson F - OWNER OR RATEPAYER'S ADDRESS: (Must be subject t4 proposed rates) APhJ OF PROPERTY; I 1 - Desch-be the provision(s) of law that farm the basis of your objection, with specft reference to statutes, rues, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rues are adapted. (Attach additional pages as necessary. ) Article XIIII G, of the California Constitution and its progeny of Gasetaw CA. Constitution Article XIIII D, section 6 2. Describe, with reference to your property and usage of water, hoer the proposed rates violate the provisions of law you cited above. (Attach additional pages as necessary.. ) Proportionality: proposed assessment is the same as that for larger homes, despite a clear diff erence in property size and presumed benefit. This is a violation of the proportionality requirement, as the increase in fees exceeds the proportional share of the actual special benefit received. The burden of proof is an the town to demonstrate its proposed tiered wader fees are proportional to the cost of smi+ce attributable to each custorn8r's parcel. General v. Special Benefits: fails to separate and quantify the general and special benefits received to each parcel . Assessments can only be imposed for a special benefft conferred directly upon a specific parcel of property., not general governmental services that benefit the public at large. 3. Describe how Truckee Danner Public Utility District may correct the alleged violations of law you stag above. Provide amendments to the proposed rates and the written basis for the amendments. (Attach additional pages as necessary-) FronTDPU�Dneeds tv comply with Prop 218, aid connect water usage and the services uired to the increase in tees. TDPUD must comp)y with substanhve and procedural requirements justifying their cost and need to local property owners and taxpayers. Truckee must demonstrate that the increase in the tiered rates are based on the actual cast of providing water at different usage levels. Patz v. City of S. D. There is likewise no demonstrablelink to encouraging conservation. LP Signalure: Print Name: _ _ `�►���� 1" �t� '� Date-. 1=� P4.FASE HAND DELIVER DURING BUSINESS HOURS OR SAIL THIS COMPLETED OBJECTION FORM WITH AN ORGINAL SIGNATURE T4 TRUCKEE DONNER PUBLIC UTILITY DISTRICT AT 11570 DONNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 . TO BE CONSIDERED TrMELY, MAIL 0 IONS MUST BE RECEIVED (NOT POSTMARKED) BY 5:00 P. W ON NOVEMBER 7, 2025. ADDITIONAL PAGE (flRTiQNAL) (Please number your responses) #2, Exceeds the cost of providing the service. As an individual who often is far ender my aNlotment of water under the current #ee Structure, this increase is, in effect, punishing those who are more conservative with their water usage. Conservative use of a wader resource should inure a benefit to those who are conscientious with the use of tfiiS precious resource. Improper use of fps: There is not a proper demonstration that the use of Bees will be. used for specific use_ 91W �-� TRUCKEE DONNER L Public Utility District Preposition 218 W. , rittren Ob.. jection Form, REQUIREMENTS- (1 ) Each dart of this form must be filled out completely, (2) To exhaust administrative remedies pursuant to government code section 53759. 1 all objections must be timely received by the Truckee Danner Public Utility District by 5:00 p.m. an November 7, 2025. Failure to timely submit a written objection, wfth original signature, using Chas form bars any right to challenge the new rates through a legal praceeding alleging noncompliance with Article X11I D of the Califomia Constitution for these proposed new water rates. (3) Generalized objections are insuFficient. To satisfy this exhaus#gin of administrative remedies requirements, objecting parties m ust present the exact issue (s) that they intend to pursue in a judicial action or proceeding. (4) Late-filed, nonca pliantr or incomplete written objections without an original signature will riot be considered as satisfying the exhaustion of administrative remedies requirement. NAME OF PROPERTY OWNER OR RATEPAYER: EWhim:eyK. MCBride OWNER OR RATEPAYER' S AD] rates) APN OF PROPERTY: 1 . Describe the provision(s) of law that form the bads of your objection, wi#h specEfic reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to he violated if the proposed rates are adopted- (Attach additional pages as necessary. ) A rticle X611i D, of the California Conslitufion and its progeny o6 caselaw A Constitution Article X1111 D, section fi 2. Describe I with reference to your Property and usage of water, how the proposed rites violate the provisionsof law you cited above. (Attach additional pages as necessary. ) ProportionalitY: Proposed assessment is the same as that for larger homes, despite a clear difference in property size and presumed benefit. This is a violation of the proportionality requirement, as the increase in fees exceeds the proportional share of the actual special benefit received. the burden of proof is on the town to demonstrate its proposed tiered water fees are proportional to the cost of service attributable to each customer's parcel. General v. Special Benefits.- fuels to separate and quantify the general and special benefits received to each parcel. Assessments can only be iMposed for a special benefit conferred directly upon a specific parcel of properly, not general govemmental services that benefit the public at urge. 3, Describe how Truckee Donner Public !!1ilfiy District may correct the alleged violations Of law you stated above. Provide amendments to the proposed rates and the written basis for the amendments- (Attach additional pages as necessarl+'•) TDPUD needs to comply with Prop 218, and connect water usage and the services required to the incre-ase' in fees: TDPUD muse Conrrply with substantive and procedural requirements justifying #heir, cost and neec! to local property owners and taxpayers. Truckee must demonstrate that the increase in the tiered rates are based on the actual COS# of providing water at different usage Ievels. Patz v. pity of S_D_ There is likewise no demonstrable link to encouraging conservation. 2- Signature: Print dame: PLEASE HAND DELIVER DURING BUSINESS FlpURS OR MAIL THIS COMPLETED OBJECTION FARM WITH AN ORGINAL SIGNATURE TO TRUCKEE DINNER PUBLIC UTILITY DISTRICT AT 11570 D(?NNER PASS ROAD, TRUCKEE, CALIFORNIA 96161 _ TO BE CONSIDERED TIMELY, MAILED OBjECTIONS MUST BE RECEIVED (NOT POSTMARKED) BY 5:00 P.M. ON NOVEAl1BER 7, 2025. ADDITIONAL PAGE (OPTIONAL) (Please number your responses) #2 Exceeds the cost of providing the service: As an individual who often is tar under my allotment of water ender the current fee structure, this increase is, in effect, punishing those who are more conservative with their water wage. Conservative use of a water resource should inure a benefit to those who are � conscientious with the use of this precious resource. Improper use of fees: There is not a proper demonstration tha# the use of fees will be used for specific use. Exhibit B To Resolution No. 2025-32 Responses to Written Objections 1. Hilly Objection (First Hilly Objection - 52) Procedural Requirements The First Hilly Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The First Hilly Objection states in Box#1, "I protest the proposed rate increase", in Box #2 that"There was no charge for water when I bought this house and The rates have already skyrocketed. This is excessive and unfair", and on the Additional Page that, "This is a protest letter!". The First Hilly Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) states generalized objections; (2) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions,regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and (3) does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The First Hilly Objection states a policy-based objection, i.e. —that rates should not be increased as proposed because the rates have already skyrocketed and that it is excessive and unfair and does not state any legal basis for objecting to the proposed rates. Because the First Hilly Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. Because the First Hilly Objection states, "I protest the proposed rate increase" and "This is a Protest letter!" it will be counted as a protest to the proposed rates. Conclusion and Reservation of Rights With respect to the First Hilly Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1) the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. 1 The District reserves all rights, claims, and defenses in the event of litigation with respect to the First Hilly Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the First Hilly Objection and used to defend against any action based on the First Hilly Objection. 2. Hilly Objection (Second Hilly Objection - 64) Procedural Requirements The Second Hilly Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Second Hilly Objection states in Box#1, "I protest the proposed rate increase", in Box#2 that"we started in prosser/truckee w/no water charge and the proposed 5 year hike is unsupportable for my income", and on the Additional Page that, "This is a protest letter!". The Second Hilly Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) states generalized objections; (2) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(3) does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The Second Hilly Objection states a policy-based objection, i.e. —that rates should not be increased as proposed because the proposed rates are unsupportable for the objector's income and does not state any legal basis for objecting to the proposed rates. Because the Second Hilly Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. Because the Second Hilly Objection states, "I protest the proposed rate increase" and"This is a Protest letter!" it will be counted as a protest to the proposed rates. Conclusion and Reservation of Rights With respect to the Second Hilly Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1) the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. 2 District reserves all rights, claims, and defenses in the event of litigation with respect to the Second Hilly Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Second Hilly Objection and used to defend against any action based on the Second Hilly Objection. 3. Moyer Objection Procedural Requirements The Moyer Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Moyer Objection states in Box#1, "A rate increase for Seniors on Social Security is unsustainable with limited income.", in Box#2 that"Seniors will be forced to choose between utilities and basic necessities, ie. food healthcare etc.", and on the Additional Page, "Just one more reason Truckee is not a place to retire. I plan to move."The Moyer Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) states generalized objections; (2) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(3) does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The Moyer Objection states a policy-based objection, i.e. —that rates should not be increased as proposed because the rate increase is not sustainable for seniors on Social Security with a limited income and that seniors will be forced to choose between utilities and basic necessities. Because the Moyer Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. Conclusion and Reservation of Rights With respect to the Moyer Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Moyer Objection.Any and all of the District's responses to the other Objections set forth 3 in this Exhibit B may also be applicable to the Moyer Objection and used to defend against any action based on the Moyer Objection. 4. Krampert Objection Procedural Requirements The Krampert Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Krampert Hilly Objection states in Box#'s 1, 2, and 3, ""Documents enclosed". The documents enclosed with the Objection include, (1) Three (3) Share Certificates of the Glenshire Mutual Water Company, one was signed in 1996 and two were signed in 1997; (2) a 1996/1997 Rate Schedule; (3) a 1997/1998 Rate Schedule; and (4) a two-page letter to the objector from the Glenshire Mutual Water Company. The Krampert Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) does not present the exact issue(s) that the objector intends to pursue in a judicial action or proceeding; (3) is incomplete; (2) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(4) does not describe,with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The Krampert Objection does not state any objection or provide any legal basis for the objection; it only provides documents that do not pertain to the proposed rates and is incomplete. Because the Krampert Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. Conclusion and Reservation of Rights With respect to the Krampert Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Krampert Objection.Any and all of the District's responses to the other Objections set 4 forth in this Exhibit B may also be applicable to the Krampert Objection and used to defend against any action based on the Krampert Objection. 5. Crump Objection Procedural Requirements The Crump Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Crump Objection generally describes the provisions of law that form the basis for the Objection as including: (1) California Constitution, Article XIII D,S6(a)(1)-(3); (2) Revenues may not exceed service costs and must be proportional. Government Code S53756: Prohibits automatic or ongoing rate adjustments not tied to cost-of-service. (4)Relevant case law stated in the Objection: Howard Jarvis Taxpayers Assn. v.City of Fresno (2005), Capistrano Taxpayers Assn. v. City of San Juan Capistrano (2015), Bighorn-Desert View Water Agency V. Verjil (2005). The Crump Objection describes how the proposed rates violate the law cited above with respect to the Frick property as follows: Our property is a single-family home with moderate water consumption and conservation measures. Despite this, the proposed 6.5% annual increase would raise our bill significantly. The District has not provided a detailed cost-of-service analysis demonstrating that the cost to supply, treat, and deliver water has increased proportionally. Some proposed revenue appears to fund capital projects or administrative costs unrelated to our service, and the automatic escalator violates Government Code S53756. District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses, to provide water service. There are no costs included that do not provide a benefit to water service. Both operating and capital costs are incurred to maintain the system and provide water service. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to 5 provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the rate study. 6. A public hearing is scheduled for November 19, 2025 as required. 7. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 8. Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) is not violated because there is no unlawful transfer of funds, the rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 9. Capistrano Taxpayers Assn. v. City of San Juan Capistrano (2015) is not violated because the District calculated the cost of water service for tiered consumption. 10. Bighorn-Desert View Water Agency v. Verjil (2005) is not violated because the District understands that its water service is a property-related service as defined Proposition 218 and the proposed new water rates are being adopted in accordance with the procedural and substantive requirements of Proposition 218. Conclusion and Reservation of Rights With respect to the Crump Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Crump Objection.Any and all of the District's responses to the other Objections set forth 6 in this Exhibit B may also be applicable to the Crump Objection and used to defend against any action based on the Crump Objection. 6. Henry Objection Procedural Requirements The Henry Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Henry Objection generally describes the provisions of law that form the basis for the Objection as including: Article XIII D § 6(b)(3)because " The inclusion of"General Manager," "Administrative Services," and"Board of Directors" operating costs in the water rate base (as shown in the draft rate study) suggests that rate revenue is being used for non-water-related overhead, contrary to constitutional limits. Failure to comply with procedural transparency under Prop 218 The mailed notice and online materials omit key analytical tables (capital reserve balances, depreciation schedules, and comparative cost-per-gallon metrics) necessary for meaningful public review. Prop 218 mandates that"the agency shall provide written notice containing sufficient information to identify the amount, basis, and reason for the fee." TDPUD's notice provides only aggregated percentage increases." The Henry Objection describes how the proposed rates violate the law cited above with respect to the Henry property as follows: "Unlawful compounding and pre-authorization of future rates "The Board seeks to approve five years of rate increases in one vote,binding future ratepayers and Boards without annual public recalculation of cost of service, violating Prop 218's requirement that each rate adjustment be independently justified. Disproportionate fixed charge component The Base Charge represents the "vast majority" of all residential bills (TDPUD's own mailer confirms this). A high fixed charge, unrelated to actual water use, penalizes conservation and may be inconsistent with State Water Board efficiency policies and Prop 218's proportionality clause." District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 7 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The cost of service analysis provides the basis for the fixed charge and tiered consumption charges for the proposed water rates, and specifically the average unit costs. The development of the average unit costs, and proposed rates, reflects industry standard cost of service principles based on the District's specific costs and customer characteristics to meet the proportionality requirements of Proposition 218. 7. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 8. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 9. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 10. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 11. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs 8 more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 12. A public hearing is scheduled for November 19, 2025 as required. 13. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 14. The holding in Moore v. City of Lemon Grove(2015) 237 Cal.App.4t1'363 is not violated because all revenue from the proposed rates for administrative costs are related to water service and are well documented in the 2025 Water Rate Study. 15. The holding in Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) 127 Cal.AppAth 914 is not violated because there is no unlawful transfer of funds, the rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 16. The holding in Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586 is not violated because the Districts rates and charges may fund efforts to identify and design future projects, identifying and funding futures needs of the District is part of the present-day services, and costs of planning for such future needs may be recovered from charges imposed in current users. Conclusion and Reservation of Rights With respect to the Henry, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1) the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Henry Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Henry Objection and used to defend against any action based on the Henry Objection. 7. Reid Objection Procedural Requirements 9 The Reid Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Reid Objection states in Box# 1 that"The basis of my objection is that you're attempting to set rate increases for 5 years. You don't know what future economic, financial, + revenue conditions will be in 5 years out so how can you claim to know how much the increases should be??You [cant]", and in Box#2 "I OBJECT. I shouldn't have to be in law school to object."The Reid Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) is incomplete; (2) does not describe the provision(s) of law that form the basis of the objection,with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(3) does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The Reid Objection states policy-based objections and does not provide any legal basis for the objection, is incomplete, does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted, and does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. Because the Reid Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. The District responds further as follows: 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 10 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 7. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 8. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. Conclusion and Reservation of Rights With respect to the Reid Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Reid Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Reid Objection and used to defend against any action based on the Reid Objection. 8. Coombs Objection Procedural Requirements The Coombs Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. 11 Substantive Requirements The Coombs Objection generally describes the provisions of law that form the basis for the Objection as including: Prop 218 requires voter approval for new or increased property- related fees, including water rates. It mandates that water rate structures be based on the cost of providing service and cannot be unjustified or inflated. The Coombs Objection describes how the proposed rates violate the law cited above with respect to the Coombs property as follows: My property is at the bottom of TD and in Zone 2. My water use fluctuates monthly based on my use. In the winter months it is almost nil. I am already being charged a pump charge, base rate and commodity charge. The proposed annual increases do not reflect the true cost of providing service. District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the rate study specifically outlines the costs, both operating and capital expenses to provide water service. 3. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates. 4. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefitting customers. 5. The cost of service analysis provides the basis for the fixed charge and tiered consumption charges for the proposed water rates, and specifically the average unit costs. The development of the average unit costs, and proposed rates, reflects industry standard cost of service principles based on the District's specific costs and customer characteristics to meet the proportionality requirements of Proposition 218. 6. Proposition 218 requires a protest vote to implement water rates. If there is not a majority protest received prior to the close of the public hearing on November 13, 2025, the District Board may adopt the proposed rates as outlined in the customer notification. 7. Proposition 218 does not require voter approval for new or increased property related fees, including water rates. Proposition 218 has a majority protest procedure for water rates. The District can't adopt the proposed new rates if a majority of the property owners or customers protest the proposed new rates. The proposed new 12 rates are based on the cost of service as demonstrated in the comprehensive 2025 Water Rate Study. 8. The proposed new rates are based on the cost of service as demonstrated in the comprehensive 2025 Water Rate Study. Conclusion and Reservation of Rights With respect to the Coombs Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1) the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Coombs Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Coombs Objection and used to defend against any action based on the Coombs Objection. 9. Tattersall Objection Procedural Requirements The Tattersall Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Tattersall Objection states in Box# 1 that"No basis has been described for why the rates should be increased so much. We have received no detailed information supporting the rate increase.", and in Box#2 "The higher rates to be applied to part time residents is a clear case of discrimination. Part time residents will pay the same base fee as full time residents. There is no basis for charging a higher just because you are a part time resident." The Tattersall Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) is incomplete; (2) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(3) does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response 13 The Tattersall Objection does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted, and does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. Because the Tattersall Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. The District responds further as follows: 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 7. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 8. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any 14 inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. Conclusion and Reservation of Rights With respect to the Tattersall Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1) the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4) to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Tattersall Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Tattersall Objection and used to defend against any action based on the Tattersall Objection. 10. Ridless Objection Procedural Requirements The Ridless Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Ridless Objection does not state an objection or provide any information. Box#'s 1, 2, and, 3, and the Additional Page are empty. The Ridless Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) does not present the exact issue(s) that the objector intends to pursue in a judicial action or proceeding; (2) is incomplete; (3) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(4) does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The Ridless Objection does not state any objection or provide any legal basis for the objection, is incomplete, does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted, and does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the 15 provisions of law the objector cited. Because the Ridless Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. Conclusion and Reservation of Rights With respect to the Ridless Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Ridless Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Ridless Objection and used to defend against any action based on the Ridless Objection. 11. Frick Objection Procedural Requirements The Frick Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Frick Objection generally describes the provisions of law that form the basis for the Objection as including: (1)proposed rated likely violate Proposition 218 because they exceed the proportional service costs or generate excess revenue; (2)there is a lack of financial data that raises concerns under Gov. Code §66013, which requires capital charges to reflect actual costs, and under PUC §§12811, 12823, mandating fair, reasonable, non-discriminatory rates; (3) the proposed rates may further violate Art. X, §2 of the CA Constitution by discouraging beneficial water use through excessive pricing; (4)the proposed rates raise equal protection issues under federal and state Constitutions due to their disproportionate impact on certain geographic/elevation-based customer groups without sufficient justification; and(5)the notice lacked the clarity and specificity needed for meaningful public participation, potentially violating Prop 218 and the CA Public Records Act. The Frick Objection generally describes how the proposed rates violate the law cited above with respect to the Frick property as follows: (1) As a resident in Pump Zone 4, my property is subject to even higher water charges in the district; (2)No clear cost-of-service data or justification was provided for these disproportionate rate hikes,which far exceed inflation and extend years into the future without basis (3) This lack of transparency violates Art. XIII D, §6(b)(Prop 218), requiring fees to match proportional service costs, and PUC §§12811,12823, 16 mandating fair, reasonable rates; (4) Base rates for all zones have already risen sharply in recent years, and proposed multi-year increases continue this excessive trend; and (5) Absent clear evidence linking hikes to actual service costs, they appear to violate Prop 218, Gov. Code §66013,and equal protection principles by imposing unjustified burdens, especially on higher- elevation customers. District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 7. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 8. Government Code Section 66013 applies to mitigation fees and not to rates; it does not apply to this proposed rate increase. 17 9. Public Utility Code Sections 12811 and 12823 apply to municipal utility districts and not to public utility districts; they do not apply to the District or this proposed rate increase. 10. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 11. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 12. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. Conclusion and Reservation of Rights With respect to the Frick Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1) the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Frick Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Fick Objection and used to defend against any action based on the Frick Objection. 12. Scara Objection Procedural Requirements The Scara Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements 18 The Scara Objection states in Box# 1 that rates should not be increased as proposed because they will place a considerable financial burden on all households regardless of their actual water usage, and in Box#2 that the proposed rates should be revised to avoid penalizing households with lower consumption, such as those using their property as a vacation home or those who actively conserve water and the current policy discourages conservations and disproportionately impacts those who use less water, which may raise questions regarding fairness and legality. The Scara Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) does not present the exact issue(s) that the objector intends to pursue in a judicial action or proceeding; (2) is incomplete; (3) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(4) does not describe,with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The Scara Objection states policy-based objections and does not provide any legal basis for the objection, is incomplete, does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted, and does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. Because the Scara Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. Conclusion and Reservation of Rights With respect to the Scara Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Scara Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Scara Objection and used to defend against any action based on the Scara Objection. 13. Conway Objection Procedural Requirements 19 The Conway Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Conway Objection generally describes the provisions of law that form the basis for the Objection as including: "Article XIII D Section 6 of the California Constitution(Proposition 218)which requires that property-related charges such as water rates: Not exceed the funds required to provide the service (Section 6(b)(1)); Be used only for the cost of providing the service (Section 6(b)(2)); Be proportional to the cost of service attributable to each parcel (Section 6(b)(3)); and Not impose fees for services not directly received by the parcel (Section 6(b)(5)). The proposed rate increases, including elevation-based "pump zone" surcharges, appear to violate these constitutional provisions by shifting excessive and disproportionate costs onto certain customers without clear and transparent." The Conway Objection describes how the proposed rates violate the law cited above with respect to the Henry property as follows: "I reside in Pump Zone 4, which is subject to an additional $3.06 per 1,000 gallons surcharge on top of base and commodity water rates. This surcharge is scheduled to increase further under the proposed 2025-2030 rate plan. These elevation-based charges disproportionately impact my property and others in higher zones by imposing hundreds of dollars per year in additional costs unrelated to actual water usage or service quality. The compounding 7%-6.5% annual rate increases further amplify this inequity, resulting in total rate growth far above inflation and without sufficient demonstration that these revenues are necessary to provide service to my property. Therefore, the proposed rates are not proportional to the cost of service, exceed the reasonable cost to serve" District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 20 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 7. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 8. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 9. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 10. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 11. A public hearing is scheduled for November 19, 2025 as required. 12. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 21 13. The holding in Moore v. City of Lemon Grove(2015) 237 Cal.App.4th 363 is not violated because all revenue from the proposed rates for administrative costs are related to water service and are well documented in the 2025 Water Rate Study. 14. The holding in Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) 127 Cal.AppAth 914 is not violated because there is no unlawful transfer of funds, the rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 15. The holding in Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.AppAth 586 is not violated because the Districts rates and charges may fund efforts to identify and design future projects, identifying and funding futures needs of the District is part of the present-day services, and costs of planning for such future needs may be recovered from charges imposed in current users. Conclusion and Reservation of Rights With respect to the Conway Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Conway Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Conway Objection and used to defend against any action based on the Conway Objection. 14. Shellito Objection Procedural Requirements The Shellito Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Shellito Objection generally describes the provisions of law that form the basis for the Objection as including: (1) California Government Code § 53759.1 and Article XIII D, Sections 2&6 of the California Constitution, specifically Article XIII D § 6(b)(1)due to lack of proportionality and nexus to cost of service because the proposed 6.5%annual increase appears uniform across all customer classes and years without a demonstrated cost-of-service analysis per class or zone and failure to demonstrate actual financial necessity; (2)Article XIII D § 6(b)(3)due to 22 use of fees for general government purposes because the inclusion of"General Manager," "Administrative Services,"and"Board of Directors"operating costs in the water rate base suggests that rate revenue is being used for non-water-related overhead,contrary to constitutional limits; (3) failure to comply with procedural transparency under Prop 218 because the mailed notice and online materials omit key analytical tables(capital reserve balances,depreciation schedules, and comparative cost-per-gallon metrics)necessary for meaningful public review; (4)Prop 218 § 6(b)(5)due to excessive reserve funding,citing Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586,and failure to re-evaluate after material assumptions change; and(5)Proposition 218 Omnibus Implementation Act [53750 - 53758] due to unlawful compounding and pre- authorization of future rates. The Shellito Objection generally describes with reference to the Shellito property and usage of water, how the proposed rates violate the provisions of law cited above as follows: "Disproportionate fixed charge component The Base Charge represents the "vast Majority" of all residential bills (TDPUD's own mailer confirms this). A high fixed charge, unrelated to actual water use, penalizes conservation and may be inconsistent with State Water Board efficiency policies and Prop 218's proportionality clause." District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 23 6. The cost of service analysis provides the basis for the fixed charge and tiered consumption charges for the proposed water rates, and specifically the average unit costs. The development of the average unit costs, and proposed rates, reflects industry standard cost of service principles based on the District's specific costs and customer characteristics to meet the proportionality requirements of Proposition 218. 7. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 8. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 9. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 10. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 11. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 12. A public hearing is scheduled for November 19, 2025 as required. 13. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 14. The holding in Moore v. City of Lemon Grove(2015) 237 Cal.App.4th 363 is not violated because all revenue from the proposed rates for administrative costs are related to water service and are well documented in the 2025 Water Rate Study. 15. The holding in Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) 127 Cal.AppAth 914 is not violated because there is no unlawful transfer of funds, the 24 rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 16. The holding in Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586 is not violated because the Districts rates and charges may fund efforts to identify and design future projects, identifying and funding futures needs of the District is part of the present-day services,and costs of planning for such future needs may be recovered from charges imposed in current users. Conclusion and Reservation of Rights With respect to the Shellito Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4) to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Shellito Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Shellito Objection and used to defend against any action based on the Shellito Objection. 15. Horn Objection Procedural Requirements The Horn Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Horn Objection generally describes the provisions of law that form the basis for the Objection as including Article XIII D Section 6 of the California Constitution and Government Code § 53759.1 because "The proposed 2026-2030 water rate increases violate Article XIII D, Section 6(b)(1) of the California Constitution because the rates are not proportional to the actual cost of service for each parcel or customer class. The proposed increases also violate Article XIII D, Section 6(b)(3)because system revenues are being allocated toward administrative and overhead uses not directly tied to water service delivery. Additionally, the District is attempting to pre-authorize multi-year compounded rate increases without recalculating cost-of-service annually, which is inconsistent with Proposition 218 procedural and transparency requirements and Government Code § 53759.1." 25 The Horn Objection describes how the proposed rates violate the law cited above with respect to the Horn property as follows: "The majority of my bill is determined by the fixed Base Charge, which does not reflect my actual water usage. This causes me to pay more than the proportional cost of service required to serve my parcel. Because the rate structure relies heavily on fixed charges rather than usage-based costs, I am financially penalized despite conserving water. This violates the requirement that fees not exceed the proportional cost of service for my parcel. The uniform annual increases also do not reflect my property's specific demand level, elevation zone costs, or meter capacity, and therefore lack the constitutionally required cost-of-service nexus." District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The cost of service analysis provides the basis for the fixed charge and tiered consumption charges for the proposed water rates, and specifically the average unit costs. The development of the average unit costs, and proposed rates, reflects industry standard cost of service principles based on the District's specific costs and customer characteristics to meet the proportionality requirements of Proposition 218. 26 7. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 8. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 9. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 10. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 11. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 12. A public hearing is scheduled for November 19, 2025 as required. 13. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 14. The holding in Moore v. City of Lemon Grove(2015) 237 Cal.App.4th 363 is not violated because all revenue from the proposed rates for administrative costs are related to water service and are well documented in the 2025 Water Rate Study. 15. The holding in Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) 127 Cal.App.4th 914 is not violated because there is no unlawful transfer of funds, the rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 16. The holding in Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586 is not violated because the Districts rates and charges may fund efforts to identify and design future projects,identifying and funding futures needs of the District is 27 part of the present-day services,and costs of planning for such future needs may be recovered from charges imposed in current users. 17. Government Code § 53759.1 sets forth the requirements to exhaust administrative remedies and not procedural or transparency requirements for the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years. Conclusion and Reservation of Rights With respect to the Horn Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Horn Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Horn Objection and used to defend against any action based on the Horn Objection. 16. Oliver Objection Procedural Requirements The Oliver Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Oliver Objection states in Box# 1 that the proposed rates "will place an undue financial burden on residents in Truckee particularly those on fixed or moderate incomes", and in Box#2 "that because property values and assessments in our area have already been rising substantially, further increases in rates will magnify housing cost pressures. Many homeowners and renters are already stretched. A rate hike may lead to increased pushback or public dissatisfaction and could reduce trust in local governance if residents feel sudden increases are not justified". The Oliver Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) does not present the exact issue(s) that the objector intends to pursue in a judicial action or proceeding; (2) is incomplete; (3) does not describe the provision(s) of law that form the basis of the objection,with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted; and(4) does not describe,with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. 28 District's Response The Oliver Objection states policy-based objections and does not provide any legal basis for the objection, is incomplete, does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted, and does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. Because the Oliver Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. Conclusion and Reservation of Rights With respect to the Oliver Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Oliver Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Oliver Objection and used to defend against any action based on the Oliver Objection. 17. Sanchez Objection Procedural Requirements The Sanchez Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies. The Sanchez Objection was not submitted using the District's Proposition 218 Written Objection Form. The Sanchez states at the very top of the first page, "Protest—For inclusion in public count under Prop 218". It does not state that it is an objection. However, it later addresses the legal objection and grounds for challenge and requested remedies, similar to eh information requested on the District's Objection Form. Substantive Requirements The Sanchez Objection generally describes the provisions of law that form the basis for the Objection as including: (1) California Government Code § 53759.1 and Article XIII D, Sections 2&6 of the California Constitution, specifically Article XIII D § 6(b)(1)due to lack of proportionality and nexus to cost of service because the proposed 6.5%annual increase appears uniform across all customer classes and years without a demonstrated cost-of-service analysis per class or zone and failure to demonstrate actual financial necessity; (2)Article XIII D § 6(b)(3)due to 29 use of fees for general government purposes because the inclusion of"General Manager," "Administrative Services,"and"Board of Directors"operating costs in the water rate base suggests that rate revenue is being used for non-water-related overhead,contrary to constitutional limits; (3) failure to comply with procedural transparency under Prop 218 because the mailed notice and online materials omit key analytical tables(capital reserve balances,depreciation schedules, and comparative cost-per-gallon metrics)necessary for meaningful public review; (4)Prop 218 § 6(b)(5)due to excessive reserve funding,citing Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586,and failure to re-evaluate after material assumptions change; and(5)Proposition 218 Omnibus Implementation Act [53750 - 53758] due to unlawful compounding and pre- authorization of future rates. The Sanchez Objection does not describe how the proposed rates violate the law cited above with respect to the Sanchez property. District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The cost of service analysis provides the basis for the fixed charge and tiered consumption charges for the proposed water rates, and specifically the average unit costs. The development of the average unit costs, and proposed rates, reflects industry 30 standard cost of service principles based on the District's specific costs and customer characteristics to meet the proportionality requirements of Proposition 218. 7. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 8. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 9. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 10. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 11. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 12. A public hearing is scheduled for November 19, 2025 as required. 13. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 14. The holding in Moore v. City of Lemon Grove(2015) 237 Cal.App.4th 363 is not violated because all revenue from the proposed rates for administrative costs are related to water service and are well documented in the 2025 Water Rate Study. 15. The holding in Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) 127 Cal.App.4th 914 is not violated because there is no unlawful transfer of funds, the rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 31 16. The holding in Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586 is not violated because the Districts rates and charges may fund efforts to identify and design future projects, identifying and funding futures needs of the District is part of the present-day services, and costs of planning for such future needs may be recovered from charges imposed in current users. The Sanchez Objection does not comply with the District's procedural requirements for properly submitting a written objection because it: (1)it does not state that it is an objection. The Sanchez Objection does not comply with the District's substantive requirements for properly submitting a written objection because it does not describe, with reference to the Sanchez property and usage of water, how the proposed rates violate the provisions of law cited. Conclusion and Reservation of Rights With respect to the Sanchez Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Sanchez Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Sanchez Objection and used to defend against any action based on the Sanchez Objection. 18. Delatorre Objection Procedural Requirements The Delatorre Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Delatorre Objection states in Box# 1 that, "The rate increase is based on ONE opinion or analysis. TDPUD needs to do own study", and in Box#2, "My home is 45 years old and your asking me to fund new homes. There needs to have a GRANDFATHER clause."The Delatorre Objection does not comply with the District's substantive requirements for properly submitting a written objection because it: (1) does not present the exact issue(s)that the objector intends to pursue in a judicial action or proceeding; (2) is incomplete; (3) does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed 32 rates are adopted; and(4) does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. District's Response The Delatorre Objection states policy-based objections and does not provide any legal basis for the objection, is incomplete, does not describe the provision(s) of law that form the basis of the objection, with specific reference to statutes, rules, constitutional provisions, regulations, and/or cases that are alleged to be violated if the proposed rates are adopted, and does not describe, with reference to the objector's property and usage of water, how the proposed rates violate the provisions of law the objector cited. Because the Delatorre Objection is noncompliant it does not satisfy the exhaustion of administrative remedies. The District responds further as follows: 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 33 7. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 8. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 9. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 10. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 11. A public hearing is scheduled for November 19, 2025 as required. 12. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. Conclusion and Reservation of Rights With respect to the Delatorre Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4) to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Delatorre Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Delatorre Objection and used to defend against any action based on the Delatorre Objection. 19. Wilson Objection 34 Procedural Requirements The Wilson Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The Wilson Objection states in Box# 1 that the provisions of law that form the basis of the objection are, "Article XIIII D, of the California Constitution and progeny of caselaw, CA. Constitution Article XIIII D, section 6". The Wilson Objection states in Box#2, "Proportionality:proposed assessment is the same as that for larger homes, despite a clear difference in property size and presumed benefit. This is a violation of the proportionality requirement, as the increase in fees exceeds the proportional share of the actual special benefit received. The burden of proof is on the town to demonstrate its proposed tiered water fees are proportional to the cost of service attributable to each customer's parcel. General v. Special Benefits: fails to separate and quantify the general and special benefits received to each parcel.Assessments can only be imposed for a special benefit conferred directly upon a specific parcel of property, not general governmental services that benefit the public at large. Exceeds the cost of providing the service:As an individual who often is far under my allotment of water under the current fee structure, this increase is,in effect,punishing those who are more conservative with their water usage. Conservative use of a water resource should inure abenefit to those who are conscientious with the use of this precious resource. Improper use of fees:There is not aproper demonstration that the use of fees will be used for specific use." The Wilson Objection states in Box# 3, "TDPUD needs to comply with Prop 218, and connect water usage and the services required to the increase in fees. TDPUD must comply with substantive and procedural requirements justifying their cost and need to local property owners and taxpayers. Truckee must demonstrate that the increase in the tiered rates are based on the actual cost of providing water at different usage levels. Patz v. City of S.D. There is likewise no demonstrable link to encouraging conservation." District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water 35 service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 6. The cost of service analysis provides the basis for the fixed charge and tiered consumption charges for the proposed water rates, and specifically the average unit costs. The development of the average unit costs, and proposed rates, reflects industry standard cost of service principles based on the District's specific costs and customer characteristics to meet the proportionality requirements of Proposition 218. 7. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 8. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 9. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 10. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 36 11. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 12. A public hearing is scheduled for November 19, 2025 as required. 13. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 14. The holding in Moore v. City of Lemon Grove(2015) 237 Cal.App.0,363 is not violated because all revenue from the proposed rates for administrative costs are related to water service and are well documented in the 2025 Water Rate Study. 15. The holding in Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) 127 Cal.AppAth 914 is not violated because there is no unlawful transfer of funds, the rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 16. The holding in Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586 is not violated because the Districts rates and charges may fund efforts to identify and design future projects,identifying and funding futures needs of the District is part of the present-day services, and costs of planning for such future needs may be recovered from charges imposed in current users. 17. The holding in Patz v. City of San Diego 113 Cal.App.Sth 225 (2025) is not violated because the District has demonstrated that the proposed rates bare a reasonable relationship to the proportional cost of service attributable to the parcel and specifically that the rates were not designed primarily to encourage water conservation rather than to reflect actual costs of service and the tiered structure is applied to all residential customers. 18. The Objection sates that that the law that forms the basis of the objection is, "Article XIIII section 6 of the California Constitution". There is no "Article XIIII section 6. Article XIV of the California Constitution pertains to labor relations and has nothing to do with the District's proposed water rates. If the reference to "Article XIIII D. section 6" is a typographical error and the reference was intended to be to "Article XIII D, section 6 of the California Constitution", then the District is complying with Article XIII D, section 6 of the California Constitution which pertains to property related fees and the District's proposed water rates as set forth above. 37 19. The District is proposing to increase water rates pursuant to Article XIIII D, Section 6 of the California Constitution. The District to not proposing to adopt or increase any assessment pursuant to Article XIIII D Sections 4 and 5 of the California Constitution and the provisions of Sections 4 and 5 do not have anything whatsoever to do with the District's proposed water rates. There is no requirement under Article XIII D, Section 6 of the California Constitution for the District to separate and/or quantify the general and special benefits received to or by each parcel or that rates for water service must only be imposed or increased for a special benefit conferred directly upon a specific parcel of property and not for general governmental services that benefit the public at large. Conclusion and Reservation of Rights With respect to the Wilson Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision(d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and (4)to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. The District reserves all rights, claims, and defenses in the event of litigation with respect to the Wilson Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the Wilson Objection and used to defend against any action based on the Wilson Objection. 20. McBride Objection Procedural Requirements The McBride Objection was timely received prior to the District's November 7, 2025, deadline to submit objections to exhaust administrative remedies and was submitted using the District's Proposition 218 written objection form. Substantive Requirements The McBride Objection states in Box# 1 that the provisions of law that form the basis of the objection are, "Article XIIII D, of the California Constitution and progeny of caselaw, CA. Constitution Article XIIII D, section 6". The McBride Objection states in Box#2, "Proportionality:proposed assessment is the same as that for larger homes, despite a clear difference in property size and presumed benefit. This is a violation of the proportionality requirement, as the increase in fees exceeds the proportional share of the actual special benefit received. The burden of proof is on the town to demonstrate its proposed tiered water fees are proportional to the cost of service attributable to each customer's parcel. 38 General v. Special Benefits: fails to separate and quantify the general and special benefits received to each parcel.Assessments can only be imposed for a special benefit conferred directly upon a specific parcel of property, not general governmental services that benefit the public at large. Exceeds the cost of providing the service:As an individual who often is far under my allotment of water under the current fee structure, this increase is,in effect,punishing those who are more conservative with their water usage. Conservative use of a water resource should inure abenefit to those who are conscientious with the use of this precious resource. Improper use of fees:There isnot aproper demonstration that the use of fees will be used for specific use." The McBride Objection states in Box# 3, "TDPUD needs to comply with Prop 218, and connect water usage and the services required to the increase in fees. TDPUD must comply with substantive and procedural requirements justifying their cost and need to local property owners and taxpayers. Truckee must demonstrate that the increase in the tiered rates are based on the actual cost of providing water at different usage levels. Patz v. City of S.D. There is likewise no demonstrable link to encouraging conservation." District's Response 1. A comprehensive water rate study developed by HDR Engineering, Inc, 2025 Water Rate Study, was completed and the study, including a technical appendix with the rate study exhibits, is available on the District's website -www.tdpud.org. 2. The revenue requirement analysis completed as part of the 2025 Water Rate Study specifically outlines the costs, both operating and capital expenses to provide water service, and does not generate excess revenue. Further, the revenues are specifically identified and used to fund water service and are not used for other District purposes. 3. The cost of service analysis completed as part of the 2025 Water Rate Study specifically addresses the issue of proportionality for the District's water customers to meet the requirements of Proposition 218. In this case the customer classes are for residential customers, non-residential customers, and pump zone based on the cost to provide service and develop the proposed fixed and consumption charges for each class. 4. The cost of service analysis provided the basis for the fixed charge and tiered consumption charges for the proposed water rates for each customer class of service. The fixed charge is based on the capacity of each meter size to reflect the demands and impacts on the system. The proposed rates by tier are based on the costs to provide service at the identified tier sizes. 5. Pump zone charges are based on the cost of pumping water to each zone and reflect the additional costs for each pump zone as the water is pumped through and to the next pump zone to the benefiting customers. 39 6. The cost of service analysis provides the basis for the fixed charge and tiered consumption charges for the proposed water rates, and specifically the average unit costs. The development of the average unit costs, and proposed rates, reflects industry standard cost of service principles based on the District's specific costs and customer characteristics to meet the proportionality requirements of Proposition 218. 7. The 2025 Water Rate Study outlines the cost basis for the proposed rates for each of the proposed five-years that reflect the funding of the District's water utility operating and capital costs over the specified time period. 8. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years as outlined in the 2025 Water Rate Study. 9. There are no violations of the United States Constitution or California Constitution based on the cost of service completed to provide proportional rates by class of service and all customers in the same rate classification and at similar elevations are treated the same. Customers in high elevations pay more because it costs more to provide water service to them because of the specific pumping costs associated with pumping water to their elevation that are incurred to serve those customers. 10. Notice of the proposed new rates sent more than 45 days prior to the public hearing as required by Proposition 218. 11. All customers in the same rate classification and at similar elevations are treated the same.As noted in the cost of service analysis, and the specific costs incurred by the District to provide service, customers in high elevations pay more because it costs more to provide water service to them because of the pumping costs associated with pumping water to their elevation.Accordingly, there is no violation of equal protection principles. 12. A public hearing is scheduled for November 19, 2025 as required. 13. Government Code Section 53756 authorizes the adoption of a schedule of fees with automatic adjustments for a period not to exceed five years provided that any inflation adjustment does not exceed the cost of providing the service. There is not an automatic escalator/inflator, the rate revenue adjustments in each year reflect the costs to provide water service in each of the proposed rate years. 14. The holding in Moore v. City of Lemon Grove(2015) 237 Cal.App.4th 363 is not violated because all revenue from the proposed rates for administrative costs are related to water service and are well documented in the 2025 Water Rate Study. 15. The holding in Howard Jarvis Taxpayers Assn. v. City of Fresno (2005) 127 Cal.AppAth 914 is not violated because there is no unlawful transfer of funds, the 40 rates include administrative costs required to provide water service and no other costs and water rates are otherwise compliant with Proposition 218. 16. The holding in Griffith v.Pajaro Valley Water Management Agency(2014)220 Cal.App.4th 586 is not violated because the Districts rates and charges may fund efforts to identify and design future projects, identifying and funding futures needs of the District is part of the present-day services,and costs of planning for such future needs may be recovered from charges imposed in current users. 17. The holding in Patz v. City of San Diego 113 Cal.App.5th 225 (2025) is not violated because the District has demonstrated that the proposed rates bare a reasonable relationship to the proportional cost of service attributable to the parcel and specifically that the rates were not designed primarily to encourage water conservation rather than to reflect actual costs of service and the tiered structure is applied to all residential customers. 18. The Objection sates that that the law that forms the basis of the objection is, "Article XIIII section 6 of the California Constitution". There is no "Article XIIII section 6. Article XIV of the California Constitution pertains to labor relations and has nothing to do with the District's proposed water rates. If the reference to "Article XIIII D. section 6" is a typographical error and the reference was intended to be to "Article XIII D, section 6 of the California Constitution", then the District is complying with Article XIII D, section 6 of the California Constitution which pertains to property related fees and the District's proposed water rates as set forth above. 19. The District is proposing to increase water rates pursuant to Article XIIII D, Section 6 of the California Constitution. The District to not proposing to adopt or increase any assessment pursuant to Article XIIII D Sections 4 and 5 of the California Constitution and the provisions of Sections 4 and 5 do not have anything whatsoever to do with the District's proposed water rates. There is no requirement under Article XIII D, Section 6 of the California Constitution for the District to separate and/or quantify the general and special benefits received to or by each parcel or that rates for water service must only be imposed or increased for a special benefit conferred directly upon a specific parcel of property and not for general governmental services that benefit the public at large. Conclusion and Reservation of Rights With respect to the McBride Objection, in exercising its legislative discretion, the District's Board of Directors determines pursuant to subdivision (d) of Government Code section 53759.1: (1)the objection and the District's response thereto do not warrant a clarification of the proposed rates; (2) not to reduce the proposed rates based on the objection; (3)based on the objection no further review is necessary before making a determination on whether clarification or reduction is needed; and(4) to proceed with the protest hearing required under section 6 of Article XIII D of the California Constitution. 41 The District reserves all rights, claims, and defenses in the event of litigation with respect to the McBride Objection.Any and all of the District's responses to the other Objections set forth in this Exhibit B may also be applicable to the McBride Objection and used to defend against any action based on the McBride Objection. 42