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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 17, 2019 <br />TITLE: <br />AUTHORIZE STAFF TO PREPARE <br />DOCUMENTS FOR PROPOSED WATER <br />AND SEWER RATE ADJUSTMENTS AT A <br />COST NOT TO EXCEED $75,000 <br />(STRATEGIC PLAN NO. 6, 1H) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />Uiaa r <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />51111PETIIM7 . <br />Authorize and direct staff to prepare all required documents necessary to proceed with <br />notification of proposed water and sewer rate adjustments in compliance with Proposition 218 <br />requirements, including, but not limited to, the following: <br />a) Prepare and mail proposed rate adjustment notices to all Santa Ana property owners in <br />compliance with Proposition 218 requirements at cost not to exceed $75,000; <br />b) Schedule a public hearing at a future Council meeting, on or after November 5, 2019; <br />c) Prepare all other documents required to proceed with proposed water and sewer rate <br />adjustments. <br />d) Explore the feasibility of implementing a water and sewer low-income assistance program. <br />DISCUSSION <br />Background <br />The City owns and operates a water distribution system and a sewer collection system that <br />provides services to a community of nearly 350,000 residents and 5,000 businesses. The City <br />water system consists of approximately 480 miles of mains, 10 reservoirs, 7 pumping stations, <br />and 20 active wells. The City sewer system consists of 398 miles of main, 8,000 manholes, and 2 <br />lift stations. The cost to keep these critical assets operational and invest in their replacement <br />comes from the water and sewer rates charged to and collected from the community they serve. <br />The California Constitution, via Proposition 218, ensures that all revenue collected from water <br />and sewer charges is used for water and sewer operations and infrastructure related expenses. <br />The City last performed a cost of service and rate study in 2014. The last adopted rate <br />adjustment took effect on July 1, 2018. Due to various factors, including the drought conditions <br />65B-1 <br />