Public Hearing - Ordinance No. 1454 An Ordinance granting a Water Franchise to Bellflower-Somerset Mutual Water Company to transmit and distribute potable water within the City’s public right-of-way
April 13, 2026
1 Franchise Agreement Overview
In April 2001, the City granted a Franchise Agreement to Bellflower-Somerset Mutual Water Company (BSMWC) for the purpose of transmitting and distributing potable water within the City’s public right-of-way.
The agreement expired in 2021, however, BSMWC has continued to operate its water system and make the required annual franchise fee payments per the agreement.
The proposed Ordinance would grant a new Water Franchise to BSMWC for a period of 25 years – retroactive to May 2021.
Similar to the previous agreement, BSMWC will continue to pay an annual franchise fee to the City per P.U.C. Section 6231 which defines the franchise fee as the amount equal to 2% of BSMWC’s gross annual receipts from retail water sales.
The new agreement will also update insurance requirements and terminology as well as revise the payment date of the franchise fee from January 2nd each year to January 15th each year.
2 Public Notification
On March 9, 2026, City Council adopted Resolution No. 26-07 to set a Public Hearing regarding the intent to grant a Water Franchise to Bellflower-Somerset Mutual Water Company The Notice of Public Hearing was published twice in the Legal Advertisements Section of the Los Cerritos Community News on Friday, March 13, 2026, and again on Friday March 20, 2026.
If approved tonight, the second reading and adoption of Ordinance No. 1454 will be scheduled for the April 26, 2026, City Council meeting.
3 Recommended Action
Open the public hearing; take testimonial and documentary evidence, and after considering the evidence, introduce Ordinance No. 1454 granting a Water Franchise to Bellflower-Somerset Mutual Water Company; or
Alternatively, discuss and take other action related to this item
4