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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 2, 2014 <br />TITLE: <br />AUTHORIZE STAFF TO PREPARE <br />DOCUMENTS FOR PROPOSED WATER <br />AND SEWER RATE ADJUSTMENTS <br />{STRATEGIC PLAN NO. 6, 1, H} <br />0 <br />CITY MANAGE <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <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 />FILE NUMBER <br />Authorize and direct staff to prepare all required documents necessary to proceed with notification <br />of proposed water and sewer rate adjustments in compliance with Proposition 218 requirements, <br />including, but not limited to, all of the following: <br />a) Prepare and mail proposed rate adjustment notices to all Santa Ana property owners in <br />compliance with Proposition 218 requirements; <br />b) Schedule a public hearing at a future Council meeting; <br />c) Prepare all other documents required to proceed with water and sewer rate adjustments. <br />DISCUSSION <br />Background <br />The City owns and operates a water system and a sewer collection system that provides services <br />to a population of over 330,000. The City water system currently consists of 500 miles of mains, <br />10 reservoirs, 7 pumping stations, and 19 active wells. The City sewer system consists of 390 <br />miles of main, 19 miles of Orange County Sanitation District (OCSD) lines (some of which are <br />maintained by the City), 8,000 manholes, and 2 lift stations. <br />In June 2011, the City Council directed staff to perform a comprehensive examination of City <br />assets, capital needs, and financial condition of both the water and sanitary sewer enterprises. At <br />that time, the most recent rate study had been performed in 1995. On October 3, 2011, upon <br />completion of a competitive bid process, the City awarded a contract to Black & Veatch <br />Corporation (B &V) to perform the comprehensive analysis and develop a financial plan to address <br />the City's long -term water and sewer infrastructure needs. <br />65B -1 <br />