STAFF REPORT
City of Lancaster
CC 11
5/26/2026
TN
Date: May 26, 2026
To: Mayor Parris and City Council Members
From: Patti Garibay, Director - Community Development
Nicole Jones, Manager – Community Development
Subject: Proposed Sewer Service Charge Increases and Initiation of Proposition 218 Majority Protest Proceedings
Recommendation:
1. Adopt Resolution No. 26-___ declaring the City Council’s intention to consider proposed sewer service charge increases, directing notice of a public hearing, and setting the time and place for a public hearing pursuant to Article XIII D of the California Constitution; and
2. Direct staff to proceed with Proposition 218 noticing procedures regarding the proposed sewer service charge increases.
G.C. Section 84308: No
Fiscal Impact:
The proposed maximum annual sewer service charge unit rate is approximately $164.70 per Sewage Unit (SU). Estimated annual sewer service charge revenue under the proposed enhanced sewer program with capital replacement is approximately $9.5 million annually and would fund operation, maintenance, repair, rehabilitation, replacement, administration, capital improvements, reserves, and regulatory compliance associated with the City’s sewer collection and conveyance system.
Background:
The City of Lancaster owns and operates a sewer collection and conveyance system consisting of sewer pipelines, laterals, manholes, lift stations, and related appurtenant facilities. 2 3
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The City’s existing sewer service charges have not been substantially updated since the City assumed responsibility for the sanitary sewer collection system in 2008.
The City retained Harris & Associates to prepare a preliminary engineering analysis and Sewer Service Charge Analysis evaluating existing infrastructure, operating costs, deferred maintenance, capital replacement requirements, reserve needs, regulatory compliance obligations, and updated cost-of-service methodologies consistent with Proposition 218.
The preliminary analysis identified aging infrastructure, deferred preventative maintenance, below-target inspection frequencies, increasing operating costs, and the need for enhanced rehabilitation and replacement programs to maintain long-term system reliability and regulatory compliance.
The proposed sewer service charge methodology utilizes Sewage Units (SUs) based on estimated wastewater generation and flow characteristics associated with land use classifications. The methodology aligns cost recovery with proportional system demand and service requirements.
The proposed sewer service charges would fund continued operation, maintenance, repair, rehabilitation, replacement, inspection, regulatory compliance, capital improvements, and reserves necessary to maintain a safe and reliable wastewater collection system.
The proposed sewer service charges may include annual CPI-U adjustments for the Los Angeles-Long Beach-Anaheim region.
Pursuant to Proposition 218, notices of the proposed sewer service charge increases and public hearing will be mailed to affected property owners and customers of record at least forty-five (45) days prior to the public hearing.
Attachments:
Resolution No. 26-___ – Sewer Service Charges Resolution of Intention Preliminary Sewer Service Charge Analysis and Engineer’s Report Notice of Public Hearing