REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Alvin Papa, Deputy Director of Public Works-Utilities
Subject:
title
Public Hearing to Consider Water and Sewer Rate Adjustments
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Statement of Issue:
Huntington Beach Municipal Code (HBMC) Sections 14.22.040 and 14.54.040 state that the City is authorized to adopt rates and charges for the acquisition, construction, reconstruction, maintenance, and operation of water facilities and sewerage system. Rates shall be set via resolution adopted by a two-thirds vote of the members of the City Council.
Submitted for City Council consideration are proposed adjustments to the City's fixed water meter rate, capital charge, private service fire line (PSFL) charge, commodity rate, and sewer service charge. This topic was the subject of a Council Study Session held on January 16, 2024.
Financial Impact:
The proposed water and sewer rate adjustments will be effective over five fiscal years, beginning July 1, 2024. In the first fiscal year alone (FY 2024-25), total additional water revenue is estimated at $4.57M and total additional sewer revenue is estimated at additional $1.86M. Adoption of the proposed rate adjustments will help ensure the long-term sustainability and reliability of water and sewer services, as well as to comply with regulatory requirements and to cover the costs of maintaining the water and sewer infrastructure. Additionally, the proposed rate adjustments will make sure the City replenishes its water and sewer reserves to target levels by the end of the 5-year period.
Recommended Action:
recommendation
A) Adopt Resolution No. 2024-18 "A Resolution of the City Council of the City of Huntington Beach Readopting and Revising the City's Water Commodity Rates";
B) Adopt Resolution No. 2024-20 "A Resolution of the City Council of the City of Hunt...
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