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Arcata Faces Steep Water Rate Hikes, 71% Housing Goal Increase; Council Approves Rogers Garage EIR

Arcata residents may soon see significant increases in their water bills to fund critical infrastructure projects, as the City Council reviewed a new rate study on Wednesday. The council also received a report detailing a staggering 71% increase in state-mandated housing goals and controversially approved a contract for an environmental review of the proposed Rogers Garage housing project.

ARCATA, CA – The Arcata City Council grappled with major financial and developmental pressures during its meeting on Wednesday, October 15, reviewing proposals for substantial water rate increases, confronting a dramatic rise in state-mandated housing targets, and approving a key contract for the controversial Rogers Garage housing project.

Water and Wastewater Rate Study

A presentation by consulting firm Bartel Wells Associates outlined the urgent need for rate increases to fund a 10-year financial plan, driven primarily by long-deferred water infrastructure improvements. The city’s water utility has not seen significant investment since the early 1990s, leaving its net assets of just over $6 million far below comparable local jurisdictions.

The council was presented with two scenarios for a five-year rate adjustment. The first, an "immediate revenue recovery" plan, would result in a 14% increase in the combined water and wastewater bill for the average single-family home in the first year, equating to an additional $19.01 per month. A second, "phased-in" option would see an 11% increase, or $8.88 per month, in the first year, but would result in a 5% higher rate by the end of the five-year period compared to the immediate option.

Wastewater rates are proposed to remain flat for the first two years, though the rate structure for residential customers would change from a volumetric system to a single fixed monthly charge to improve predictability for customers and stability for the city. The council took no action, as the item was a staff report, but a public hearing on the proposed rates is anticipated for January 7, 2026, following a 45-day public notice period.

State Mandates 71% Increase in Housing Goal

Deputy Director of Community Development Jennifer Dart presented a sobering update on the 7th cycle of the Regional Housing Needs Allocation (RHNA). Arcata’s state-mandated housing target has surged by 71%, from 610 units in the previous cycle to 1,042 units over the next eight years. This comes despite projections showing a downward trend in the local population.

Dart highlighted significant challenges, including declining federal and state funding for affordable housing, especially for new "acutely low" and "extremely low" income categories. She also noted that major projects like Cal Poly Humboldt’s new student housing do not count toward the city's RHNA goals, despite freeing up other housing stock in the community. With Arcata largely built out, the city must rely on infill development, a strategy often at odds with state requirements to identify vacant land.

Rogers Garage Environmental Contract Approved Amid Opposition

Following a recusal by Councilmember Stacy Atkins-Salazar, the council voted 4-0 to approve a $115,190 contract with Helix Environmental Planning for a "focused" Environmental Impact Report (EIR) for the proposed 44-unit Rogers Garage affordable housing project. The project, located on a contaminated site across from Jacoby Creek School, has drawn persistent opposition from neighbors.

During public comment, residents urged the council to require a more comprehensive EIR, citing concerns about the site's toxicity, a newly discovered wetland, and a 60-year-old drainage pipe running under the school. Speakers argued that approving the contract was premature without a complete project application and an initial study.

Community Development Director David Loya defended the process, stating that a focused EIR is an appropriate starting point that can be expanded if the scoping process uncovers additional issues needing study. He explained that much of the broader analysis, such as traffic impacts, was completed in the city’s 2045 General Plan EIR, from which this project-specific review will "tier."

In Other Business

* **Transportation Safety:** The Transportation Safety Committee presented its annual report, highlighting requests for traffic calming, improved pedestrian crossings, and bicycle safety. The committee recommended new high-visibility crosswalks, a four-way stop at 11th and Q streets, and safety improvements on Janes Road and Giuntoli Lane. Future goals include updating the city’s Bicycle Master Plan.

* **Choose Humboldt:** The council approved a $5,000 contribution to the "Choose Humboldt" campaign, a county-wide shop-local initiative led by Humboldt Made. The 18-month campaign will feature a digital passport app to gamify shopping at local businesses.

* **Local Coastal Program:** A hearing to adopt a comprehensive update to the city's Local Coastal Program was continued to March 4, 2026, as staff continues to work with the California Coastal Commission to resolve policy conflicts related to sea level rise.

* **Public Comment:** The ongoing debate over a proposed sister city relationship with Gaza City dominated the public comment periods, with numerous speakers voicing passionate arguments both for and against the initiative. The City Manager announced that a Cal Poly Humboldt intern is currently developing a formal sister city policy and guidelines for the council's future consideration.

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