CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
7/13/2026
1 SUBJECT:
Resolution Accepting the Report of Sewer Service Charges for Fiscal Year 2026-2027 and Directing the Filing of Charges for Collection by the County Controller.
RECOMMENDED ACTION:
Adopt the Resolution titled, "Resolution of the City Council of the City of Pacifica accepting the report of Sewer Service Charges for Fiscal Year 2026-2027, and directing the filing of charges for collection by the County Controller" to place the assessment charges on the County of San Mateo Property Tax Roll.
STAFF CONTACT:
Marisol Gómez, Director of Finance and Administrative Services 650-501-0257
[email protected]
Melissa Tigbao, P.E., Director of Public Works
(650) 738-3767
[email protected]
Desmond Barca, Interim Deputy Director of Public Works - Wastewater 650-446-4704
[email protected]
Daniel Patten, P.E., Engineering Manager – Wastewater
650-922-7248
[email protected]
BACKGROUND/DISCUSSION:
On May 9, 2022, the City Council approved Ordinance 879-C.S., which established a methodology for the collection of sewer service charges and enacted a new five-year rate structure with a maximum annual rate increase for the City’s Wastewater Program service charges from Fiscal Years 2022-23 through 2026-27. A second reading of the ordinance was conducted and approved at the May 23, 2022, meeting. The Ordinance amended sections 6-6.403 through 6-
6.408 of Chapter 6 Title 6 (Sewer Charges) of the Pacifica Municipal Code to reflect the new rate structure. The revenues generated by this rate structure are the main source of revenue for the City’s Wastewater Program to address its future capital and operating needs as detailed below:
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July 13, 2026
Table 1 - Summary of Residential Rate Modifications
Maximum Rate
2022-23 2023-24 2024-25 2025-26 2026-27
Percent Increase 3.5% 3.5% 3.5% 3.5% 3.5%
Rate* $19.47221 $20.15374 $20.85912 $21.58919 $22.34481 Minimum Annual
Rate
$934.66 $967.38 $1001.24 $1036.28 $1072.55
*Unit calculated by multiplying total use by a factor of 0.9 Table 2 - Summary of Commercial Rate Modifications
Maximum Rate
2022-23 2023-24 2024-25 2025-26 2026-27
Percent Increase 3.5% 3.5% 3.5% 3.5% 3.5%
Rate* $19.47221 $20.15374 $20.85912 $21.58919 $22.34481 Minimum Annual
Rate
$934.66 $967.38 $1001.24 $1036.28 $1072.55
* Unit calculated by total use multiplied by strength factor (see Table 3) Table 3 - City of Pacifica Proposed Commercial Strength Factors Customer Class Current
Car Washes 0.9
Cleaners 1.2
Laundromats 0.75
Restaurants with Grease Traps 1.6
Restaurants without Grease Traps 1.8
Gymnasiums 0.9
All Other Commercial Use 1.0
This resolution implements the sewer service charges for Fiscal Year 2025-2026 (see Attachment A) and reflects a rate increase of 3.5% above the 2025-26 rates. As previously presented in the Sewer Rate Study this 3.5% increase is based on the following:
• Anticipated 2026-2027 expenditures for the operations, maintenance, repair, and management of the City’s Wastewater Program;
• Maintaining a reserve for contingencies which funds operations and maintenance costs for 90 days;
• Construction of wastewater capital projects;
• Providing the Wastewater Enterprise Fund with the appropriate debt service coverage (net operating revenue over debt service payments).
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July 13, 2026
The new rate structure and the 2026-27 rate proposal are supported by a detailed rate study conducted by Bartle Wells Associates dated January 26, 2022. The Proposition 218 review/process is not required for this resolution since the City adhered to this process as part of the approval of the 5-year rate cycle approved on May 23, 2022. The City has selected Bartle Wells Associates on April 15, 2025, through a qualification-based selection process to work on the Sewer Rate Study for FY2027-2032, and the new study may impact future rates.
The charges presented in this report have been calculated in accordance with the amended Municipal Code Section 6-6.404. A list of sewer charges applied to each parcel is kept in the Finance Department at City Hall and public inspection and verification can be arranged by appointment.
ALTERNATIVE ACTION:
The City Council may elect not to adopt the resolution approving the sewer service charges for FY 2026-27 and defer rate increases or lower the rates from what is being proposed. This will result in a significant decrease in Wastewater revenues and may result in insufficient wastewater treatment services and delays in the implementation of the Capital Improvement Projects included in the rate study assumptions.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Adopting the resolution approving the sewer service charges for FY 2026-27 is consistent with the following Council adopted Goals:
• GOAL #1 “Enhance organizational and Fiscal Stability” and GOAL # “Improve and Steward City Infrastructure, streets and facilities”
FISCAL IMPACT:
The Finance Department reviewed water usage per assessor's parcel number (APN) by meter type for the timeframe of March 2025 through February 2026 and applied the proposed rates in order to calculate the sewer charges that will be submitted to the County for the tax roll. Other considerations are factored in such as leakages reported to North Coast County Water District (NCCWD), businesses that have opened and or closed, and parcel changes reported by the San Mateo County Assessor's Office within the timeframe reviewed. The Finance Department continues to work with PCF, the City's sewer parcel management system, NCCWD, and the County to incorporate any feedback prior to submitting the final list for the property tax roll. The proposed 3.5% rate increase is expected to generate approximately $0.2 million in additional revenue, bringing total Wastewater Fund revenues to a maximum of $20.7 million as included in the FY 2026-27 Budget. This increase will enable the Fund to meet projected expenditures.
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
Sewer Service Charges FY 2026-27 - Attachment A(PDF)
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July 13, 2026
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA ACCEPTING THE REPORT OF SEWER SERVICE CHARGES FOR FISCAL YEAR 2026-2027 AND DIRECTING
THE FILING OF CHARGES FOR COLLECTION BY THE COUNTY CONTROLLER WHEREAS, pursuant to Section 6-6.502 of the Pacifica Municipal Code and Section 5473 of the California Health & Safety Code, the City has received a report of sewer charges for Fiscal Year 2026-27, computed in conformity with the City’s schedule of sewer charges (“Report”) on file in the Office of the City Clerk and available for public inspection, and is incorporated herein by reference; and
WHEREAS, the City Council desires to approve the Report and to submit the charges described therein to the San Mateo County Controller for collection on the 2026-2027 tax roll; NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves the Report as submitted; and
BE IT FURTHER RESOLVED that the City Clerk hereby adopts the FY 2026-2027 sewer service charges to a maximum of $20.7 million and directs staff to file the necessary documents with the Controller to ensure that the said fees are included on the County of San Mateo Property Tax Roll for Tax Year 2026-2027.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 13th day of July, 2026, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney