Agenda Report
Fullerton City Council
MEETING DATE: APRIL 1, 2025
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, p.e., public works director PREPARED BY: TODD LE, P.E., PRINCIPAL WATER ENGINEER
GAR HUANG, ASSOCIATE ENGINEER
SUBJECT: 2025 WATER MASTER PLAN
SUMMARY
Receive and file the 2025 Water Master Plan prepared by Stantec Consulting Services, Inc. and designate the Infrastructure and Natural Resources Advisory Committee to develop Water Rate Study.
PROPOSED MOTION
Receive and file the March 2025 Water Master Plan prepared by Stantec Consulting Services, Inc.
Appoint the Infrastructure and Natural Resources Advisory Committee or subcommittee comprised of Infrastructure and Natural Resources Advisory Committee members to oversee Water Rate Study development.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Reject Water Master Plan and direct staff otherwise
Create an ad-hoc committee to develop a Water Rate Study with members from other committees or as nominated by City Council Do not create a committee to develop the Water Rate Study Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends approving the Study and appointment of INRAC (or sub-committee of INRAC to serve as a review body on the Water Rate study.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Public Safety
Infrastructure and City Assets.
FISCAL IMPACT
The City budgeted $950,000 for Water Master Plan Project 53390 and $200,000 for Water Rate Study Project 53001 in the City Capital Improvement Program (CIP) Budget within the Water Fund (Fund 44).
The City awarded a professional services agreement to perform the Water Master Plan Update and Water Rate Study Stantec Consulting Services, Inc. (Stantec) in September 2022. The Water Master Plan expended $929,221.17 and the Water Rate Study expended $11,985.52, leaving a combined $208,793.31 balance for both reports. The Stantec Purchase Order for both reports has a $173,900.75 balance leaving $34,892.56 for remaining Water Master Plan expenses, including staff time for project management, overhead and future unforeseen change orders.
BACKGROUND AND DISCUSSION
The City last updated the Water Master Plan (WMP) in 1997. The 2025 update would provide a roadmap for the short-term (five year), near-term (ten year) and long-term (20 year) water facility Capital Improvement Program (CIP) by addressing water system aging infrastructure, future water demands and existing water resources. The updated WMP would help the City provide a reliable water supply to customers and deliver adequate flow and pressure for fire protection and system reliability while meeting regulatory requirements.
Stantec completed the updated WMP which consists of twelve chapters examining and analyzing the city water system and any identified deficiencies. These chapters include:
Executive Summary
Existing System Facilities
Water Supply
Water Quality
Water Use
Planning and Evaluation Criteria
Model Development and Calibration
Water System Evaluation
Planning Scenarios
Facility Condition Assessment
Risk Assessment
Capital Improvement Program.
The final chapter lists capital improvement projects and water system deficiencies recommended that the City address. These include improvements for:
new and existing water wells
existing booster pump stations
existing reservoirs
fire protection
system reliability
future developments.
The 2022 Stantec contract award includes a Water Rate Study to develop a financing plan to evaluate options and recommend alternatives for addressing deficiencies. The Water Rate Study develops a five-year and ten-year financial management plan. The Study projects revenue, operations and maintenance costs, capital improvement costs, groundwater and imported water costs, reserve funding and debt service costs. The Study recommends specific rate structures to equitably recover the cost of service while minimizing financial impact to ratepayers and meeting Proposition 218 and other legal requirements.
The City completed the last Water Rate Study in 2019. City Council appointed a Water Rate Study Ad Hoc Committee to work with staff to evaluate multiple alternative CIP project schedules. Staff intends to follow the same process to develop the updated Water Rate Study and has begun work on a financing plan. Staff recommends City Council appoint a committee to discuss options and approaches to financing these recommendations.
Staff recommends assigning this responsibility to the Infrastructure and Natural Resources Advisory Committee or a sub-committee comprised of Infrastructure and Natural Resources Advisory Committee members. The Committee would hold informational workshops with the consultant and staff to review water rate models and potential rate increases. The Committee would discuss this item during regular meetings or properly noticed special meetings. A subcommittee would set meeting dates and times convenient for sub-committee members and in compliance with City and State public meeting procedures. The public could attend all meetings. Staff anticipates presenting committee recommendations to City Council for final action in Winter 2025.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – Water Master Plan
Attachment 3 – Water Master Plan Appendices
cc: City Manager Eric J. Levitt
2025 Water Master Plan
April 1, 2025 - Page 2