Agenda Item No: 2.a
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: October 7, 2025
Submitted by: Gabriel Guerrero-Gabany
From: Public Works
Subject:
Public Hearing for 2025 Sewer Rate Adoption
Financial Impact:
Fiscal Impact:
There is no direct fiscal impact to the City's General Fund Budget associated with the recommended actions. City Council approval of the proposed sewer rate adjustments will generate additional revenue into the City's Sewer Enterprise Fund that will help fund the ongoing maintenance and operation of the City's sewer utility, as well as provide additional funds for needed capital improvements to the sewer collection system.
Summary:
The Public Works Department is responsible for administering over 84 miles of gravity sanitary sewer pipeline. In 2021, the City approved a sewer rate increase. This increase was meant to provide sufficient funding to maintain the existing sewer system and budget necessary capital improvements identified in the adopted 2018 Sewer Master Plan. The adopted sewer rate provided an annual increase of 3% per year to account for inflation over 5 years. The annual increase is set to expire at the end of FY 2025-26, after which fees will remain flat until a new sewer fee schedule is adopted. Since that time, the Sewer Enterprise Fund has provided sufficient budget for routine maintenance, but not for capital improvements.
On July 15, 2025, the City Council adopted Resolution Nos. R-2025-40 and R-2025-41, which approved the initiation of the Proposition 218 public hearing process; set a public hearing for October 7, 2025; and adopted written protest procedures. On Friday, August 15, 2025, the required 45-day notice was mailed to 12,930 affected property owners in the City. The notice informed property owners about the proposed rate increases, the scheduled public hearing, and procedures for submitting a written protest (Attachment 5).
This action recommends that the City Council conduct a Public Hearing, tabulate the results of protests received, and, if a majority protest is not received, approve a six-year sewer rate increase effective November 20, 2025.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Open the Public Hearing concerning the proposed sewer rate adjustment; and
2. Receive the Staff Report, consider all public testimony, and ask any questions of Staff; 1 and
3. Close the Public Hearing and direct the City Clerk to tabulate the written protests and report the results of the tabulation to City Council; and
4. Waive full reading, by title only, and introduce for first reading Ordinance No. O-2025-09, an Ordinance of the City Council of the City of Placentia, California, adopting revised Sewer System Service Rates for Sanitary Sewer Service and amending sections of Chapter 5.24 of the Placentia Municipal Code pertaining to the Sewer System Service Fees; and
5. Adopt Resolution No. R-2025-52, a Resolution of the City Council of the City of Placentia, California, declaring the results of a noticed protest proceeding and approving certain actions for rates, fees, and charges for sanitary sewer services.
Strategic Plan Statement:
This item is consistent with the City Council approved 5-Year Strategic Plan Goal 1: By ensuring long-term fiscal sustainability and Strategic Goal 5: By implementing public infrastructure to meet community needs.
Discussion:
Operation and maintenance costs of the City's sewer collection system have been sufficiently covered by the current sewer collection rate adopted in 2021. However, revenues have not been sufficient to cover the capital needs identified in the 2018 Sewer Master Plan. The City, therefore, has a deferred backlog of much needed sewer system capital improvements.
Increases to the rates are recommended in order to provide sufficient funding to expand the capacity of the existing collection system, provide for much needed sewer rehabilitation and to ensure the Sewer Enterprise Fund remains financially solvent.
Background:
The City currently maintains 84 miles of gravity sanitary sewer pipelines and approximately 600 manholes. The City's wastewater is transferred into the Orange County Sanitation District's (OCSD) collection system via 35 separate connections for treatment. Yorba Linda Water District (YWLD) owns and maintains 10 miles of sewer lines within the City's borders.
On April 26, 2002, the Santa Ana Regional Water Quality Control Board (RWQCB) issued Board Order (Order) No. R8-2002-0014, which prohibited the discharge of untreated sewage to any surface water storm or drainage system. This Order included numerous provisions, including the requirement for every agency to prepare a Sewer System Management Plan (SSMP) to address all requirements of the Order by September 30, 2005. In 2005, the City adopted a sanitary sewer fee and established the Sewer Maintenance Enterprise Fund to meet the increased costs and to comply with regulations adopted by the Santa Ana RWQCB.
The City adjusted the sanitary sewer fee rates in March 2005 while costs associated with maintaining the City's sewer system continued to rise. In 2021 the City adopted a revised sewer service fee structure, shown below.
User Class FY 2021-22
(per CCF)
FY 2022-23
(per CCF)
FY 2023-24
(per CCF)
FY 2024-25
(per CCF)
FY 2025-26
(per CCF)
Single Family
Residential $0.72 $0.74 $0.76 $0.79 $0.81
2 Multi-Family
Residential $0.82 $0.84 $0.87 $0.89 $0.92
Commercial $0.96 $0.99 $1.02 $1.05 $1.08
Industrial $0.96 $0.99 $1.02 $1.05 $1.08
Institutional $0.53 $0.54 $0.56 $0.58 $0.59
Government &
Public $0.72 $0.74 $0.76 $0.79 $0.81
The established fees increased at 3% per fiscal year to account for inflation. The annual increase is set to expire after this fiscal year on June 30, 2026, at which point the fee will remain flat until a new sewer fee is established. While the fee revenues have provided sufficient funding for maintenance needs, they have not provided sufficient funding for the ongoing capital improvement needs. Based on the 2018 Sewer Master Plan adopted by City Council, the estimated deferred sewer capital improvement costs are approximately $19M.
2025 Sewer Cost Recovery Fee Rate Study:
The completed analysis reviewed a six-year cost of service to continue ongoing maintenance while providing sufficient funding for capital improvements identified in the 2018 Sewer Master Plan to be completed over the next six (6) years. To mitigate the effects of variable water usage, which led to the unreliability of the current fee structure, Staff is recommending a flat CIP fee be applied to each user category, with multi-family residential users tiered based on a range of units. This would provide a reliable revenue source to ensure capital sewer improvements could be completed. The proposed fee structure will continue to include a portion of the sewer fee based on water consumption per user category and charged on a per hundred cubic foot (CCF) unit.
The analysis was presented to the Sewer Utility, Refuse, and Recycling Ad-Hoc Committee (SURR Committee) at their June 10, 2025 meeting. Staff presented their recommendations and proposed an updated sewer rate structure. Upon a thorough review, the Committee provided Staff direction and recommended that the rates be forwarded to City Council for consideration.
The City Council conducted a Study Session on July 15, 2025, and directed Staff to set the public hearing date and initiate the Proposition 218 process. On July 15, 2025, the City Council adopted Resolutions R-2025-40 and R-2025-41, which approved the initiation of the Proposition 218 public hearing process; set a public hearing for October 7, 2025; and adopted written protest procedures.
The completed Sanitary Sewer Service Fee Analysis and Six-Year Financing Plan (Study) as shown in Attachment 1 includes a six-year financial plan and cost of service analysis as well as development of new sewer rates. The analysis reviewed the current rate structure in determining needed adjustments for the next six (6) years. The study includes the following findings:
The City's current sanitary sewer service fee is outdated and does not reflect the full cost to operate, maintain, and improve the system.
The City's current rates are insufficient to fund ongoing services and necessary capital improvements. The rates have not been adjusted since July 2021.
Without a sanitary sewer system fee adjustment, the City's Sewer Enterprise Fund will not have adequate revenues to cover operations and maintenance of the sewer system 3 and conduct necessary capital improvements and repairs.
The Study recommends the implementation of an updated sewer service fee structure that includes two (2) separate fees: a usage fee and a flat capital improvement fee. The usage fee will fund operating and maintenance costs of the sewer system. The capital fee will fund sewer replacement, rehabilitation, and capacity enhancement improvements through a series of capital projects that are necessary to replace and upgrade the sewer system. The capital fee was developed utilizing the City's Sewer Master Plan. The Sewer Master Plan, prepared by Dudek in 2018, identified over $19 million in needed rehabilitation and capacity improvement projects.
The table in Attachment 2 provides a summary and breakdown of the proposed sewer fee rates over the next six years.
Proposition 218 Process
The City's ability to adjust rates is governed by Proposition 218. In 1996, California voters approved Proposition 218, which requires a specific process for cities to impose or increase certain types of fees. The provisions of Proposition 218, set forth in Article XIII D of the California Constitution provide that certain types of "Property Related Fees" are subject to a "majority protest" process.
The provisions of Proposition 218 set criteria for property-related fees for refuse, water, and sewer services. The fees must be set so that:
The revenues generated by the fee do not exceed the cost of service No property owner's fee exceeds his/her proportionate share of the costs The City does not impose a property-related fee for a service that is not available to the property owner
Upon incorporation of the City Council's recommendations and direction to send Proposition 218 notices, pursuant to California Constitution Article XIII D, Section 6, Staff sent notices to all property owners (and as a courtesy, to all customers, i.e., tenants) that receive sewer service from the City. There was a 45-day public notice period during which time property owners and customers could send written protests for consideration by the City Council.
Protests from property owners will be tallied at the public hearing set for October 7, 2025.
Notwithstanding a majority protest, City Council can consider verbal testimony from anyone and written protests from non-property owners and decide to approve the rates.
The procedures govern the conduct of a public hearing and the submission and tabulation of written protests in connection with the City Council's consideration of the proposed increases to sewer service charges, in compliance with the requirements of Proposition 218. If the City Council determines at the close of this public hearing that written protests have been presented, and not withdrawn by the Record Owners or Customers of Record of a majority of Identified Parcels, the City shall not impose the fee or charge (i.e., there is a majority protest), and the proposed increases shall not be approved. If the City Council determines at the close of the public hearing that there is not a majority protest, the City Council may adopt, by a majority vote of the members of the City Council, the proposed increase(s). A total of 6,360 protests must be received to constitute a majority.
Staff recommends that the City Council consider public comments on the proposed rate increases, tabulate the protests received, and, if no majority protest exists, adopt the attached 4 Ordinance No. O-2025-09 and Resolution No. R-2025-52 adopting the sewer rates as proposed.
Fiscal Impact Summary:
There is no direct General Fund fiscal impact associated with the requested actions. The cost for providing sanitary sewer services to the City's residents and businesses is covered by the customer rates established by the City and paid by those receiving said services. The proposed rate increase will be included in the proposed Fiscal Year 2026-27 Budget for the Sewer Enterprise Fund. The increased rates will provide additional funding for the Sewer Enterprise Fund to continue maintaining and operating the City's sewer collection system, as well as provide additional revenues to fund the cost of needed capital improvements to the City's sewer collection system.
Attachments
Attachment 1 - Placentia Sanitary Sewer Service Fee Study 2025.pdf Attachment 2 - Proposed 2025 Sewer Rates.pdf
Attachment 3 - Ordinance No. O-2025-09 Sewer Rates.docx Attachment 4 - Resolution No. R-2025-52 Sewer Rates.docx Attachment 5 - Public Hearing Notice.pdf
5 CITY OF PLACENTIA
SANITARY SEWER SERVICE FEE
ANALYSIS AND SIX-YEAR FINANCING
PLAN
Updated: July 15, 2025
6
INTRODUCTION
The City of Placentia (“City”) provides sanitary sewer collection to the majority of parcels within the City through approximately 84 miles of gravity sanitary sewer pipelines. All untreated sanitary waste collected by the City’s sanitary sewer system is conveyed to the Orange County Sanitation District (“OCSD”) for treatment. As a result, the City’s primary focus is the cleaning, management, and maintenance of the collection lines within the City’s sanitary service area.
The operation and maintenance of the City’s sewer system is funded through the Sewer Enterprise Fund which is separate from the City’s General Fund. The City has not adjusted the sanitary sewer fee rates since 2021. Since that time, the Sewer Enterprise Fund has provided sufficient budget for routine maintenance but not for critical capital improvements. Without a sanitary sewer service fee adjustment, the City’s Sewer Enterprise Fund will not have adequate revenues to cover operations and maintenance of the sewer system and conduct necessary capital improvements and repairs. The existing rates are shown in Figure 1 below.
FIGURE 1 - CURRENT SANITARY SEWER
SERVICE RATES
User Class
Unit 1
Fee per Unit
Single-Family Residential
CCF $0.81
Multi-Family Residential CCF $0.92
Commercial CCF $1.08
Industrial CCF $0.59
Institutional CCF $0.81
Government &
Public
CCF $0.81
1 CCF is an abbreviation for 100 cubic feet which is a normal unit of measure for water consumption and is equal to 748 gallons.
The current rates are insufficient to fund ongoing services and necessary capital improvements.
This Sanitary Sewer Service Fee Analysis and Financing Plan was prepared pursuant to the California Constitution Article XIII D, Section 6 (“Proposition 218”), and Placentia Municipal Code Chapter 5.24. The purpose of the Fee Analysis is to update the City’s sanitary sewer service fees to ensure they are sufficient to meet the City’s service obligations for ongoing operation and maintenance and capital improvements while maintaining prudent reserves.
7
The proposed sanitary sewer service fee will raise an amount of revenue that does not exceed the amount required to operate, maintain and build out the sanitary sewer system. The proposed rates are based on the cost of service, follows generally accepted rate design criteria, and adheres to the substantive requirements of Proposition 218. The City believes that the proposed rates are fair and reasonable to the City’s customers.
SUMMARY OF KEY FINDINGS AND RECOMMENDATIONS
Based on the findings presented in this analysis, the following recommendations are presented:
1. Beginning October 7, 2025, the sewer usage fee should be set at the rates below for every one hundred cubic feet of water consumption. Additionally, the City should establish a new CIP flat fee to fund necessary capital improvements to the sewer system.
Figure 2 - Proposed Sanitary Sewer Service Fees, FY25-26
User Class
Unit 1
Usage
Fee CIP Fee
Single-Family Residential CCF $0.55 $10.00
Multi-Family Residential CCF $0.89 $10.00/unit
Commercial CCF $1.05 $30.00
Industrial CCF $0.58 $30.00
Institutional CCF $0.55 $30.00
Government and Public CCF $0.55 $30.00
1 CCF is an abbreviation for 100 cubic feet which is a normal unit of measure for water consumption and is equal to 748 gallons.
8
Figure 3 - Proposed Six-Year Sewer Rate Schedule ($/ccf) User Class Current
Rates
FY 25-26
Proposed
FY 25-26
Proposed
FY 26-27
Proposed
FY 27-28
Proposed
FY 28-29
Proposed
FY 29-30
Proposed
FY 30-31
Single-Family
Residential
$0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55
Multi-Family
Residential
$0.92 $0.89 $0.89 $0.89 $0.89 $0.89 $0.89
Commercial/
Industrial
$1.08 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05
Institutional $0.59 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58 Government &
Public
$0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55
CIP Residential
Fee
$10.00 $12.00 $12.00 $12.00 $12.00 $14.00
CIP Multi Family
(per unit)
$10.00/unit $12.00/unit $12.00/unit $12.00/unit $12.00/unit $14.00/unit CIP
Non-Residential
Fee
$30.00 $30.00 $30.00 $30.00 $30.00 $30.00
2. The proposed six-year total sanitary sewer service fees should be adopted in accordance with the procedures for new or increased fees or charges outlined in Article XIIID of the California Constitution (“Proposition 218”).
3. Proposition 218 allows agencies to implement rates and charges lower than those approved via the Proposition 218 hearing process. If annual cost increases are less than projected, the City can increase rates and charges by less than the maximum rates stated in the Proposition 218 notice.
4. For the Sewer Enterprise Fund, the City should maintain a working capital reserve of at least three months of operating expenses and a capital improvement reserve equal to three percent of net depreciable capital assets.
5. The six-year financing plan and associated sanitary sewer services rates reflect assumptions and estimates that are believed reasonable at present. However, conditions change. It is recommended that the City review the financial condition of the Sewer Enterprise Fund annually as part of the budget process and perform a comprehensive financial plan and sewer fee update every six years, unless otherwise needed sooner.
9
SIX YEAR FINANCING PLAN
This section describes the six-year financial plan (“Plan”) and related recommendations for the City’s Sewer Enterprise Fund. The Plan is used to determine annual sanitary sewer revenue requirements. The annual revenue requirement is the amount of revenue needed from sanitary sewer service fees to cover anticipated operating, maintenance, and capital improvement program costs while working to achieve the reserve goals by FY 2030-31.
Plan Assumption/Objectives
Base Year - The Plan uses fiscal year 2025-26 as both the budget year and the base year. The base year is a term used to describe the fiscal year’s expenses with which the sanitary sewer rates are set. The planning period is FY 2025-26 through FY 2030-31.
Inflationary Assumption - The Plan includes a general cost and construction cost inflation adjustment of 3.0 percent per fiscal year. General inflation is currently about 3.0 percent per year, as reported by the Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim area.
Construction inflation, as indicated by the Engineering News Record’s 20-Cities Construction Cost Index, has ranged between 2.3 and 3.9 percent for the past five years. Each of these inflation assumptions has been reviewed with City staff and is reasonable for financial planning purposes.
Revenue Requirements
The following page details the City’s six-year financing plan through 2030-31. The Plan depicts the projected operating revenues and expenses, along with the source and uses of capital improvement funds for the six-year period. The financing plan assumes the proposed new sewer rates (to be discussed in the next section) will become effective in October 2025.
To adequately fund the sanitary sewer system, each of the various cost centers was identified, and an analysis of the required revenue for an initial six-year period was performed. It is desired that the sanitary sewer fee raise enough revenue during this six-year period to cover all anticipated system costs.
The City proposes to fund capital improvement projects to rehabilitate the sewer system through a new CIP flat fee. The City proposes to fund approximately $1,040,000 of capital improvement projects in FY 2025-26 and an average of approximately $3,500,000 annually for the subsequent five fiscal years of the Plan.
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COST OF SERVICE ANALYSIS
The next step in the rate-setting process is to evaluate the cost of providing service. Sewer rate calculations contained herein are intended to generate the level of revenue commensurate with the revenue required from the City’s sewer customers. The way each customer is responsible for the sewer utility’s costs is the subject of the cost-of- service analysis.
Under Proposition 218, the City’s sewer service rates must be based on the cost of providing sewer collection and conveyance. Sewer service costs consist of the following:
Operating costs including administration and maintenance Capital improvement costs including but not limited to replacements and improvements to gravity pipelines and connections
Costs related to maintaining adequate reserves
The City's goal in defining sanitary sewer service rates is to establish a rate structure to equitably distribute the sanitary sewer system costs while ensuring that all customers contribute their fair share toward the financial obligation of the system. This goal allows customers to pay their proportionate share based upon individual use while allowing customers control over the amount of their bill and maintaining that all customers pay their fair share of the financial obligation of the system.
Since the return flow contributed to the sanitary sewer system varies greatly based upon the type of application for the users being served, there are separate for six major classes of sanitary users are defined below.
“Single-Family Residential” means a single structure designed for and containing living, sleeping, cooking, and eating facilities. For an account to be considered a single-family residential, water must be provided to the dwelling unit through a dedicated meter for the exclusive water use of the residence within and around the residence
“Multi-Family Residential” means a structure or set of structures containing multiple dwelling units designed for and containing living, sleeping, cooking, and eating facilities. The structures may be made up of one-family houses attached to one or more houses and buildings constructed for occupancy by two or more families (e.g., duplexes, apartments, townhouses, row-houses, condominiums, and boarding and rooming houses) and all residential mobile homes or trailers. “Commercial” means the use of the sanitary sewer system related to the 12
operation of any business, commerce, or trade.
“Industrial” means the use of the sanitary sewer system related to manufacturing or processing activities. Identified in the 1997 U.S. North American Industrial Classification System in the following categories: 11xx- Agriculture, Forestry, Fishing, and Hunting; 21xx- Mining; 22xx- Utilities; 31xx to 33xx- Manufacturing; 48xx to 49xx- Transportation and Warehousing and 562x- Waste Management and Remediation Services. “Institutional” means the use of the sanitary sewer system related to private/public schools, junior colleges, colleges/universities, cemeteries, hospitals, garden and agriculturally zoned property, and public land agencies.
“Governmental” means the use of the sanitary sewer system by a city, county, state, federal government, or subdivision of any of the aforementioned.
“Public” means the use of the sanitary sewer system related to predominantly general public use. Examples include museums, historical sites, religious organizations, charitable organizations, social advocacy organizations, civic and social organizations that are not operated for profit or operated under any governmental agency.
SANITARY SEWER SERVICE FEE DETERMINATION
Revenue derived from the sanitary sewer service fee and imposed upon customers connected to the City’s sanitary sewer system (“system”) is used to pay the costs of operation and maintenance and capital improvements. The proposed sewer rate service fee consists of two fees – the Usage Fee and the CIP Fee. The rates are formed in a manner that is proportionate to the customer’s estimated sewer discharge and cost of providing the service.
Cost per Unit
Based on existing revenue and expenditure data previously discussed. Revenues produced from the current usage fee structure are sufficient to support ongoing maintenance and operations costs for the next six fiscal years. According to projected maintenance and operation expenses over the next six fiscal years the usage fee will be reduced for all users.
To support existing capital project needs, $19 million is necessary over the next 6 years. This cost was split between multi-family residential, single family residential and non-residential users based on how many services currently exist. This data was provided by the water agencies that 13
currently assess sewer service fees to the customer. It was determined that non-residential customers currently use approximately three times more water than residential users. The CIP fee assessed to non-residential users was then proportionality applied.
Residential and Non-Residential Usage
User Class Usage 1 Service Count Annual Usage per Service Proportionate Usage Residential 1,715,671 14,342 120 1
Non-Residential 861,842.33 1,866 462 3.85
1 CCF is an abbreviation for 100 cubic feet which is a normal unit of measure for water consumption and is equal to 748 gallons.
SEWER BILL IMPACTS
A summary of the current sanitary sewer services rates by user class and an average bill for a customer within that user class is provided in the figure below. The average monthly bill for the same user classes under the proposed total sanitary sewer service fees are shown, effective October 7, 2025. For a typical single-family residential customer using 16 CCF of water per month, the monthly sewer fee will increase by $5.84. For a typical multi-family residential customer using 8 CCF of water per month, the monthly sewer fee will increase by $9.76 per unit.
AVERAGE MONTHLY SEWER FEE BY USER
User Class Average Monthly Water
Consumption in CCF
Current Average Monthly
Sewer Fee
Proposed Average Monthly
Sewer Fee
Single-Family
Residential
16 ccf $12.96 $18.80
Multi-Family
Residential
8 ccf $7.36 $17.12
Commercial 66 ccf $71.28 $99.30
Industrial 63 ccf $68.04 $96.15
Institutional 430 ccf $253.70 $279.40
Government &
Public
42 ccf $34.02 $53.10
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IMPLEMENTATION
Procedural Requirements for Fee Adoption
In order to adopt the proposed five-year sanitary sewer service rates, the City will need to follow the procedural requirements contained in Article XIII D of the California Constitution (“Proposition 218”). These requirements include a notice of public hearing to be mailed to all affected property owners and customers at least 45 days prior to a public hearing.
Annual Review of Revenue and Rates
Whenever a public agency adopts new utility rates, those new rates should be closely monitored over the next several years to ensure the revenue generated is sufficient to meet the annual revenue requirements. Changing economic and drought-related water consumption patterns underscore the need for this review, as well as potential and unseen changing revenue requirements, particularly those related to environmental regulations that can significantly affect capital improvements and repair and replacement costs.
15 Proposed 2025 Sewer Cost Recovery Rates Rate Class Current (FY 2025-26) FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Single Family Residential1 $0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 Multi Family Residential1 $0.92 $0.89 $0.89 $0.89 $0.89 $0.89 $0.89 Commercial/Industrial1 $1.08 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Institutional1 $0.59 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58 Government and Public1 $0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 CIP Residential Fee2 $10.00 $12.00 $12.00 $12.00 $12.00 $14.00 CIP Multi Family (per unit) 2 $10.00 $12.00 $12.00 $12.00 $12.00 $14.00 CIP Non-Residential Fee2 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 1Fee per CCF (100 cubic feet of water) 2Flat fee per month 16
Ordinance No. O-2025-09
ORDINANCE NO. O-2025-09
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, ADOPTING REVISED SEWER
SYSTEM SERVICE RATES FOR SANITARY SEWER
SERVICE AND AMENDING SECTIONS OF CHAPTER 5.24
OF THE PLACENTIA MUNICIPAL CODE PERTAINING TO
THE SEWER SYSTEM SERVICE FEES
City Attorney Summary
This Ordinance amends Title 5 (Schedule of Fees) of the City of Placentia Municipal Code amending certain provisions of Chapter 5.24 (Public Works Department) to increase the City's sanitary sewer rates set forth in Title 5 of the Placentia Municipal Code.
A. Recitals
(i) The City of Placentia ("City") intends to ensure that sufficient revenues are collected to adequately maintain, operate, and construct capital improvements to the City's sanitary sewer system facilities; and
(ii) In 2025, the City prepared a sewer rate study to analyze the current cost to the City of providing sewer services and recommend an adjustment to the current sanitary sewer rates; and
(iii). On July 15, 2025, the City Council held a Study Session to review and discuss the 2025 Sewer Cost Recovery Fee Rate Study; and
(iv). On July 15, 2025, the City Council set a public hearing and authorized mailing of notices to property owners of record, to inform them of the proposed sanitary sewer system rates and to open the 45-day notice period in accordance with Proposition 218; and
(v) On August 15, 2025, the City mailed the Notice, including the protest ballot, by first class mail to a total of 12,930 property owners of record of parcels to which the proposed sanitary sewer system rates for sanitary sewer services would apply, informing them of the October 7, 2025, public hearing; and
(vi) On October 7, 2025, the City Council of the Placentia of Placentia ("City Council") held a public hearing on the proposed sanitary sewer rates in accordance with California Constitution Article XIII D, Section 6, more commonly referred to as Proposition 218, and determined that no majority protest against the proposed rates had occurred; and
(vii) The City's current sanitary sewer rates are codified in section 5.24.140 (Sanitary Sewer System Service Fee) of the Placentia Municipal Code ("PMC"). On 17 Ordinance No. O-2025-09
October 7, 2025, the City Council introduced Ordinance No. O-2025-09 to amend PMC Section 5.24.140 to adopt the proposed sanitary sewer rates as presented.
B. Ordinance
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND ORDAIN AS FOLLOWS:
SECTION 1. Section 5.24.140(b) (Sanitary Sewer System Service Fee) of the Placentia Municipal Code is hereby amended to read as follows:
(b) Sanitary Sewer System Service Fee Established. Except as exempted in subsection (c) of this section, there shall be imposed upon every individual, partnership, association, corporation, or agency of government that has connected or is connecting their building, structure, or fixture to the city sanitary sewer system, a sanitary sewer system service fee based upon the volume of usage of the system as measured by metered water service and a flat CIP fee. All sanitary sewer system service fees imposed pursuant to this subsection shall be due and payable at the time and in the manner provided by the water purveyor for payment of water utility bills but shall be listed as a separate line item on the water utility bill.
The fee shall be applied based upon the water use category applicable to the system user as follows:
User Category
Effective On
or After
November 20,
2025
Effective
July 1,
2026
Effective
July 1, 2027
Effective
July 1,
2028
Effective
July 1,
2029
Effective
July 1,
2030
Single-Family
Residential1
$0.55 $0.55 $0.55 $0.55 $0.55 $0.55
Multi-Family
Residential1 $0.89 $0.89 $0.89 $0.89 $0.89 $0.89
Commercial/
Industrial1 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05
Institutional1 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58
Government &
Public1
$0.55 $0.55 $0.55 $0.55 $0.55 $0.55
CIP Residential
Fee2 $10.00 $12.00 $12.00 $12.00 $12.00 $14.00
CIP Multi Family
(per unit) 2 $10.00 $12.00 $12.00 $12.00 $12.00 $14.00
CIP Non-
Residential Fee2 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 1Fee per CCF (100 cubic feet of water)
2Flat fee per month
SECTION 2. The sewer rates and fees include multi-year rate adjustments 18 Ordinance No. O-2025-09
effective November 20, 2025, and thereafter July 1 for 2026, 2027, 2028, 2029 and 2030.
SECTION 3. Any provision of the Placentia Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance.
SECTION 4. This Ordinance is exempt from review under the California Environmental Quality Act (Cal. Pub. Res. Code§ 21000, et seq "CEQA") and modifies, structures, restructures, and approves rates and charges for meeting operating expenses; purchasing supplies, equipment, and materials; meeting financial requirements; and obtaining funds for capital projects needed to maintain service within existing service areas. This Ordinance, therefore, is categorically exempt from CEQA review under Cal. Code Regs. Title 14, § 15273 and does not constitute a "project" that requires environmental review.
SECTION 5. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affe ct the validity of the remaining portions of this Ordinance. The City Council of the City of Placentia hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 6. The Mayor shall sign, and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption.
INTRODUCED at a regular meeting of the City Council of the City of Placentia held on October 7, 2025.
PASSED, APPROVED AND ADOPTED this 21st day of October 2025
Kevin Kirwin, Mayor
ATTEST:
_________________________________
Robert S. McKinnell, City Clerk
19 Ordinance No. O-2025-09
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Placentia, held on the 7th day of October 2025, and adopted at a regular meeting of the City, held on the 21st day of October 2025, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
______________________________
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
________________________________
Christian L. Bettenhausen, City Attorney
20 Resolution No. R-2025-52
RESOLUTION NO. R-2025-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, DECLARING THE RESULTS
OF A NOTICED PROTEST PROCEEDING AND
APPROVING CERTAIN ACTIONS FOR RATES, FEES,
AND CHARGES FOR SANITARY SEWER SERVICES
A. Recitals
(i). The City Council called and duly held a noticed protest proceeding for the purpose of presenting to the qualified rate payers the proposition of adjusting rates, fees, and charges for sanitary sewer, and trash services pursuant to Section 6, of Article XIII D of the California Constitution; and
(ii). In 2025, the City prepared a sewer rate study in order to analyze the current cost to the City of providing sewer services and recommend an adjustment to the current sanitary sewer rates; and
(iii). On July 15, 2025, the City Council held a Study Session to review and discuss the 2025 Sewer Cost Recovery Fee Rate Study; and
(iv). On July 15, 2025, the City Council set a public hearing and set a public hearing and authorized mailing of notices to property owners of record, to inform them of the proposed sanitary sewer system rates and to open the 45-day notice period in accordance with Proposition 218; and
(v). On August 15, 2025, the City mailed the Notice, including the protest ballot, by first class mail to a total of 12,930 property owners of record of parcels to which the proposed sanitary sewer system rates for sanitary sewer services would apply, informing them of the October 7, 2025, public hearing; and
(vi). On October 7, 2025, following a public hearing held in conformity with Proposition 218, the City Council determined that no majority protest against the proposed sewer rates and charges existed; and
(vii). The total number of valid written protests was , which is less than 50 percent of the total number of valid written protests that could legally be presented; and
(viii). After hearing public testimony, the City Council considered whether to adopt the proposed sanitary sewer rates; and
(ix). On October 21, 2025, the City Council will conduct a second reading and adopt Ordinance No. 2025-09 amending Chapter 5.24 (Water Rates and Charges) of the Placentia Municipal Code to adjust the City's existing sanitary sewer rates; and 21 Resolution No. R-2025-52
(x). Based upon the testimony provided at the public hearing, the City Council hereby establishes sanitary sewer rates effective November 20, 2025, and for each of the following years through July 1, 2030, pursuant to the schedule attached hereto as Exhibit "A" and incorporated herein by this reference.
B. Resolution
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. In all respects as set forth in the Recitals, Part A., above.
2. The City Council does hereby establish the sanitary sewer rates effective November 20, 2025, and for each of the following years through July 1, 2030, as identified in Exhibit "A." The water rates and charges shall become effective according to the schedule in Exhibit "A" which is incorporated herein by this reference. The City Council directs staff to include the newly established sewer system rates and phased-in increases thereto, as adopted by this resolution, in the City's Schedule of Fees, or other successor document thereto as amended from time to time.
3. If any section, subsection, sentence, clause, or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
APPROVED and ADOPTED this 7th day of October 2025.
__________________________
Kevin Kirwin, Mayor
ATTEST:
_________________________
Robert S. McKinnell, City Clerk
22 Resolution No. R-2025-52
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 7th day of October 2025, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
________________________________
Christian L. Bettenhausen, City Attorney
23 Resolution No. R-2025-52
EXHIBIT A
Placentia Rate Adjustments (Effective November 20, 2025)
1Fee per CCF (100 cubic feet of water)
2Flat fee per month
User Category
Effective On
or After
November 20,
2025
Effective
July 1,
2026
Effective
July 1, 2027
Effective
July 1,
2028
Effective
July 1,
2029
Effective
July 1,
2030
Single-Family
Residential1
$0.55 $0.55 $0.55 $0.55 $0.55 $0.55
Multi-Family
Residential1 $0.89 $0.89 $0.89 $0.89 $0.89 $0.89
Commercial/
Industrial1 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05
Institutional1 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58
Government &
Public1
$0.55 $0.55 $0.55 $0.55 $0.55 $0.55
CIP Residential
Fee2 $10.00 $12.00 $12.00 $12.00 $12.00 $14.00
CIP Multi Family
(per unit) 2 $10.00 $12.00 $12.00 $12.00 $12.00 $14.00
CIP Non-
Residential Fee2 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 24 PRSRT STD
U.S. Postage
PAID
KES Mail, Inc.
City of Placentia
401 East Chapman Avenue
Placentia, CA 92870
CITY OF PLACENTIA
NOTICE OF PUBLIC HEARING FOR
PROPOSED SEWER SYSTEM RATES
To Property Owner:
NOTICE IS HEREBY GIVEN that on Tuesday, October 7, 2025, at 7:00 p.m., at or as soon thereafter as may be heard, the City Council of the City of Placentia will hold a Public Hearing in the Council Chambers of the Placentia City Hall located at 401 E. Chapman Avenue to consider proposed increases to the City's sewer system rates. If approved by the City Council, the proposed rate increases will be effective for sewer system collection services provided on or after October 7, 2025.
This notice is being provided to you pursuant to Article XIIID, Section 6 of the California Constitution (Proposition 218), adopted by the electorate in 1996 as part of Proposition 218 which requires that notification be sent 45 days in advance of the public hearing to all affected property owners with respect to the proposed increases to the City’s sewer system rates and to inform you of opportunity to protest the rate increase by submitting a written protest prior or during this public hearing.
The public also receives wastewater treatment services from Orange County Sanitation District’s (OCSD), which is responsible for setting its own rates, sending separate notices of public hearings, and holding a separate public hearing.
WHY ARE RATE CHANGES BEING CONSIDERED?
The City of Placentia provides wastewater collection services to the majority of parcels within the 6.6 square mile City limits through approximately 84 miles of gravity sanitary sewer pipelines. The City’s wastewater collection system conveys untreated wastewater to OCSD’s trunk sewer mainlines via 35 separate connections. OCSD conveys, treats, and disposes of the City’s wastewater flows via OCSD Plants.
The operation and maintenance of the City’s sewer system is funded through the Sewer Enterprise Fund which is separate from the City’s General Fund. The City has not adjusted the sanitary sewer fee rates since 2021. Since that time, the Sewer Enterprise Fund has provided sufficient budget for routine maintenance but not for critical capital improvements. Without a sanitary sewer service adjustment, the City’s Sewer Enterprise Fund will not have adequate revenues to cover operations and maintenance of the sewer system and conduct necessary capital improvements and repairs.
BASIS OF PROPOSED RATES
The City is required by State Law, City standards and practices, and Enterprise Fund requirements, to collect revenues sufficient to fund current and future costs of operating, maintaining, and administering the existing sewer facilities, and fund capital improvements and infrastructure replacement programs. These revenues allow the City to protect public health and safely and reliably collect and convey wastewater for treatment. By State law, the City may not collect more revenue than is necessary to recover the total costs of providing services. The proposed rates were developed through a comprehensive Sewer Cost Recovery Fee Rate Analysis designed to meet all legal requirements and fairly and equitably recover the required revenue from all customer classes. The 2025 Sewer Cost Recovery Fee Rate Analysis is available for review at www.placentia.org/sewerrates .
2025 SEWER COST RECOVERY FEE RATE ANALYSIS
The City’s Sewer, Refuse and Recycling Ad-Hoc Committee has noted that the Sewer Enterprise Fund generates insufficient revenues to support critical capital improvement needs. The Committee also noted that actions should be taken by the City to ensure there are sufficient funds to properly administer the City’s sewer system. In 2018, the City completed a Sewer Master Plan (Master Plan) which identified approximately $19 million in needed Capital Improvement Program (CIP) sewer system rehabilitation and capacity improvement projects. The City’s recently completed 2025 Sewer Cost Rate Analysis developed a financial plan that guides investment in the City’s sewer system over the next six years. The analysis recommends the implementation of an updated sewer service fee structure that includes the implementation of a flat CIP fee. The existing usage fee established back in 2021 was unreliable and did not generate the revenues previously projected. The usage fee will continue to fund ongoing operating and maintenance costs of the sewer system. The CIP flat fee will fund sewer replacement, rehabilitation, and capacity enhancement improvements through a series of capital projects that are necessary to replace and upgrade an aging sewer collection system.
The proposed rate changes are needed to continue the safe operation of the City’s sewer system and will 1) fully fund operations and maintenance costs and 2) support necessary capital improvement projects to upgrade the City’s aging sewer system and meet the future system capacity needs of the City.
PRESORTED STD.
US POSTAGE
PAID
PERMIT #26
ANAHEIM, CA
City of Placentia
401 East Chapman Avenue
Placentia, CA 92870
CITY OF PLACENTIA
NOTICE OF PUBLIC HEARING FOR
PROPOSED SEWER SYSTEM RATES
To Property Owner:
NOTICE IS HEREBY GIVEN that on Tuesday, October 7, 2025, at 7:00 p.m., at or as soon thereafter as may be heard, the City Council of the City of Placentia will hold a Public Hearing in the Council Chambers of the Placentia City Hall located at 401 E. Chapman Avenue to consider proposed increases to the City's sewer system rates. If approved by the City Council, the proposed rate increases will be effective for sewer system collection services provided on or after October 7, 2025.
This notice is being provided to you pursuant to Article XIIID, Section 6 of the California Constitution (Proposition 218), adopted by the electorate in 1996 as part of Proposition 218 which requires that notification be sent 45 days in advance of the public hearing to all affected property owners with respect to the proposed increases to the City’s sewer system rates and to inform you of opportunity to protest the rate increase by submitting a written protest prior or during this public hearing.
The public also receives wastewater treatment services from Orange County Sanitation District’s (OCSD), which is responsible for setting its own rates, sending separate notices of public hearings, and holding a separate public hearing.
WHY ARE RATE CHANGES BEING CONSIDERED?
The City of Placentia provides wastewater collection services to the majority of parcels within the 6.6 square mile City limits through approximately 84 miles of gravity sanitary sewer pipelines. The City’s wastewater collection system conveys untreated wastewater to OCSD’s trunk sewer mainlines via 35 separate connections. OCSD conveys, treats, and disposes of the City’s wastewater flows via OCSD Plants.
The operation and maintenance of the City’s sewer system is funded through the Sewer Enterprise Fund which is separate from the City’s General Fund. The City has not adjusted the sanitary sewer fee rates since 2021. Since that time, the Sewer Enterprise Fund has provided sufficient budget for routine maintenance but not for critical capital improvements. Without a sanitary sewer service adjustment, the City’s Sewer Enterprise Fund will not have adequate revenues to cover operations and maintenance of the sewer system and conduct necessary capital improvements and repairs.
BASIS OF PROPOSED RATES
The City is required by State Law, City standards and practices, and Enterprise Fund requirements, to collect revenues sufficient to fund current and future costs of operating, maintaining, and administering the existing sewer facilities, and fund capital improvements and infrastructure replacement programs. These revenues allow the City to protect public health and safely and reliably collect and convey wastewater for treatment. By State law, the City may not collect more revenue than is necessary to recover the total costs of providing services. The proposed rates were developed through a comprehensive Sewer Cost Recovery Fee Rate Analysis designed to meet all legal requirements and fairly and equitably recover the required revenue from all customer classes. The 2025 Sewer Cost Recovery Fee Rate Analysis is available for review at www.placentia.org/sewerrates .
2025 SEWER COST RECOVERY FEE RATE ANALYSIS
The City’s Sewer, Refuse and Recycling Ad-Hoc Committee has noted that the Sewer Enterprise Fund generates insufficient revenues to support critical capital improvement needs. The Committee also noted that actions should be taken by the City to ensure there are sufficient funds to properly administer the City’s sewer system. In 2018, the City completed a Sewer Master Plan (Master Plan) which identified approximately $19 million in needed Capital Improvement Program (CIP) sewer system rehabilitation and capacity improvement projects. The City’s recently completed 2025 Sewer Cost Rate Analysis developed a financial plan that guides investment in the City’s sewer system over the next six years. The analysis recommends the implementation of an updated sewer service fee structure that includes the implementation of a flat CIP fee. The existing usage fee established back in 2021 was unreliable and did not generate the revenues previously projected. The usage fee will continue to fund ongoing operating and maintenance costs of the sewer system. The CIP flat fee will fund sewer replacement, rehabilitation, and capacity enhancement improvements through a series of capital projects that are necessary to replace and upgrade an aging sewer collection system.
The proposed rate changes are needed to continue the safe operation of the City’s sewer system and will 1) fully fund operations and maintenance costs and 2) support necessary capital improvement projects to upgrade the City’s aging sewer system and meet the future system capacity needs of the City.
PRESORTED STD.
US POSTAGE
PAID
PERMIT #26
ANAHEIM, CA
To Property Owner:
NOTICE IS HEREBY GIVEN that on Tuesday, October 7, 2025, at 7:00 p.m., at or as soon thereafter as may be heard, the City Council of the City of Placentia will hold a Public Hearing in the Council Chambers of the Placentia City Hall located at 401 E. Chapman Avenue to consider proposed increases to the City’s sewer system rates. If approved by the City Council, the proposed rate increases will be effective for sewer system collection services provided on or after October 7, 2025.
This notice is being provided to you pursuant to Article XIIID, Section 6 of the California Constitution (Proposition 218), adopted by the electorate in 1996 as part of Proposition 218 which requires that notification be sent 45 days in advance of the public hearing to all affected property owners with respect to the proposed increases to the City’s sewer system rates and to inform you of opportunity to protest the rate increase by submitting a written protest prior or during this public hearing.
The public also receives wastewater treatment services from Orange County Sanitation District’s (OCSD), which is responsible for setting its own rates, sending separate notices of public hearings, and holding a separate public hearing.
WHY ARE RATE CHANGES BEING CONSIDERED?
The City of Placentia provides wastewater collection services to the majority of parcels within the 6.6 square mile City limits through approximately 84 miles of gravity sanitary sewer pipelines. The City’s wastewater collection system conveys untreated wastewater to OCSD’s trunk sewer mainlines via 35 separate connections. OCSD conveys, treats, and disposes of the City’s wastewater flows via OCSD Plants.
The operation and maintenance of the City’s sewer system is funded through the Sewer Enterprise Fund which is separate from the City’s General Fund. The City has not adjusted the sanitary sewer fee rates since 2021. Since that time, the Sewer Enterprise Fund has provided sufficient budget for routine maintenance but not for critical capital improvements.
Without a sanitary sewer service adjustment, the City’s Sewer Enterprise Fund will not have adequate revenues to cover operations and maintenance of the sewer system and conduct necessary capital improvements and repairs.
BASIS OF PROPOSED RATES
The City is required by State Law, City standards and practices, and Enterprise Fund requirements, to collect revenues sufficient to fund current and future costs of operating, maintaining, and administering the existing sewer facilities, and fund capital improvements and infrastructure replacement programs. These revenues allow the City to protect public health and safely and reliably collect and convey wastewater for treatment. By State law, the City may not collect more revenue than is necessary to recover the total costs of providing services. The proposed rates were developed through a comprehensive Sewer Cost Recovery Fee Rate Analysis designed to meet all legal requirements and fairly and equitably recover the required revenue from all customer classes. The 2025 Sewer Cost Recovery Fee Rate Analysis is available for review at www.placentia.org/sewerrates . 2025 SEWER COST RECOVERY FEE RATE ANALYSIS
The City’s Sewer, Refuse and Recycling Ad-Hoc Committee has noted that the Sewer Enterprise Fund generates insufficient revenues to support critical capital improvement needs.
The Committee also noted that actions should be taken by the City to ensure there are sufficient funds to properly administer the City’s sewer system. In 2018, the City completed a Sewer Master Plan (Master Plan) which identified approximately $19 million in needed Capital Improvement Program (CIP) sewer system rehabilitation and capacity improvement projects. The City’s recently completed 2025 Sewer Cost Rate Analysis developed a financial plan that guides investment in the City’s sewer system over the next six years.
The analysis recommends the implementation of an updated sewer service fee structure that includes the implementation of a flat CIP fee. The existing usage fee established back in 2021 was unreliable and did not generate the revenues previously projected. The usage fee will continue to fund ongoing operating and maintenance costs of the sewer system. The CIP flat fee will fund sewer replacement, rehabilitation, and capacity enhancement improvements through a series of capital projects that are necessary to replace and upgrade an aging sewer collection system.
The proposed rate changes are needed to continue the safe operation of the City’s sewer system and will 1) fully fund operations and maintenance costs and 2) support necessary capital improvement projects to upgrade the City’s aging sewer system and meet the future system capacity needs of the City. 25 PROPOSED SEWER RATES:
Currently, the City currently charges a per hundred cubic feet (ccf) volumetric fee for all customers. This fee is based on a customer’s water usage and it is included in your monthly water bill from the Golden State Water Company or Yorba Linda Water District. The proposed rates will reduce the volumetric fee for all customers and include a flat CIP fee which will be applied to all users. The following tables show the proposed sewer service rates for the next six fiscal years. The rates reflect the sewer discharge rate for each user.
The total proposed sewer rate will consist of two components: the volumetric fee and flat CIP fee.
PROPOSED SEWER RATES:
Currently, the City currently charges a per hundred cubic feet (ccf) volumetric fee for all customers. This fee is based on a customer’s water usage and it is included in your monthly water bill from the Golden State Water Company or Yorba Linda Water District. The proposed rates will reduce the volumetric fee for all customers and include a flat CIP fee which will be applied to all users. The following tables show the proposed sewer service rates for the next six fiscal years. The rates reflect the sewer discharge rate for each user. The total proposed sewer rate will consist of two components:
the volumetric fee and flat CIP fee.
PROPOSED SIX-YEAR SEWER RATE SCHEDULE ($/ccf)
User Class Current
Rates
(FY 25-
26)
Proposed
FY 25-26
Proposed
FY 26-27
Proposed
FY 27-28
Proposed
FY 28-29
Proposed
FY 29-30
Proposed
FY 30-31
Single-Family
Residential $0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55
Multi-Family
Residential $0.92 $0.89 $0.89 $0.89 $0.89 $0.89 $0.89
Commercial/Industrial $1.08 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Institutional $0.59 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58 Government & Public $0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 CIP Residential Fee* $10.00 $12.00 $12.00 $12.00 $12.00 $14.00 CIP Multi Family (per
unit)* $10.00/unit $12.00/unit $12.00/unit $12.00/unit $12.00/unit $14.00/unit CIP Non-Residential
Fee* $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
*The CIP fee is applied monthly
HOW WILL THE PROPOSED RATES IMPACT PROPERTY OWNERS?
The City estimates that for a typical single-family residential customer using 16 ccf of water per month, their monthly sewer fee will increase by $5.84. For a typical multi-family residential customer using 8 ccf of water per month, their monthly sewer fee will increase by $9.76 per unit.
Below is a table that summarizes the monthly bill impact for the various customers based on average water consumption.
AVERAGE MONTHLY SEWER FEE ($/CCF)
User Class Average Monthly Water
Consumption in CCF
Current Average Monthly
Sewer Fee
Proposed
Average Monthly Sewer Fee
Single-Family Residential 16 ccf $12.96 $18.80
Multi-Family Residential 8 ccf $7.36 $17.12
Commercial 66 ccf $71.28 $99.30
Industrial 63 ccf $68.04 $96.15
Institutional 430 ccf $253.70 $279.40
Government & Public 42 ccf $34.02 $53.10
HOW CAN I PROTEST?
Proposition 218 allows property owners to respond to the proposed fees prior to or during the public hearing. Consistent with Proposition 218 and California Government Code § 53755, this notice has been mailed to all property owners within the service area based on the most current information published by the Orange County Assessor. Any record owner of a parcel upon which the Sewer Rates are proposed for imposition and any tenant directly liable for the payment of Sewer Rates (i.e., a customer of record) may submit a written protest to the proposed rate increases; provided, however, only one written protest will be counted per identified parcel. If you object to the proposed fees as described in this Notice you may file a written protest with the City Clerk at or before the time set for the public hearing. Written protest may be hand delivered or mailed to the City Clerk at 401 East Chapman Avenue, Placentia, CA 92870. To be valid, written protests must include the following:
1. The name of the record owner or owners of the property
2. Service address and assessor’s parcel number (APN)
3. A statement of protest/opposition to the proposed increase (“I protest” will suffice); and
4. The original signature of the protesting owner or owners (photocopies will not be accepted).
If the City receives timely written protests in excess of 50 percent of the parcels receiving sewer service from the City, the City will not adopt the proposed rates. Please note that each property will be counted as a single vote, regardless of the number of owners. If there are two record owners, both must sign the written protest. If there are more than two owners, the protest must be signed by a majority of the owners.
Multiple protests returned for a single property will be disallowed and the City Clerk will only accept one protest per property. Email, fax, telephone, or oral protests of any kind will not be counted. Mailed protests received after the close of the public hearing will not be counted, even if they were postmarked earlier.
WHERE DO I FIND ADDITIONAL INFORMATION REGARDING THE PROPOSED RATES? Additional information regarding the basis for the public hearing, and proposed rate increases are set forth in the analysis, staff reports, and supporting documents provided to the City Council for its meeting on July 15, 2025 is available for public review at the City’s website at:
www.placentia.org/sewerrates .
For further information about the proposed rate increase, please contact the Public Works Department at (714) 993-8250
EN ESPAÑOL: Para recibir una copia de este aviso en español sobre los aumentos propuestos a la tarifa de servicio de alcantarillado, llame al (714) 993-8250, de lunes a jueves de 7:30 a.m. a 6:00 p.m.
HOW WILL THE PROPOSED RATES IMPACT PROPERTY OWNERS?
The City estimates that for a typical single-family residential customer using 16 ccf of water per month, their monthly sewer fee will increase by $5.84. For a typical multi-family residential customer using 8 ccf of water per month, their monthly sewer fee will increase by $9.76 per unit. Below is a table that summarizes the monthly bill impact for the various customers based on average water consumption.
PROPOSED SEWER RATES:
Currently, the City currently charges a per hundred cubic feet (ccf) volumetric fee for all customers. This fee is based on a customer’s water usage and it is included in your monthly water bill from the Golden State Water Company or Yorba Linda Water District. The proposed rates will reduce the volumetric fee for all customers and include a flat CIP fee which will be applied to all users. The following tables show the proposed sewer service rates for the next six fiscal years. The rates reflect the sewer discharge rate for each user. The total proposed sewer rate will consist of two components:
the volumetric fee and flat CIP fee.
PROPOSED SIX-YEAR SEWER RATE SCHEDULE ($/ccf)
User Class Current
Rates
(FY 25-
26)
Proposed
FY 25-26
Proposed
FY 26-27
Proposed
FY 27-28
Proposed
FY 28-29
Proposed
FY 29-30
Proposed
FY 30-31
Single-Family
Residential $0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55
Multi-Family
Residential $0.92 $0.89 $0.89 $0.89 $0.89 $0.89 $0.89
Commercial/Industrial $1.08 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Institutional $0.59 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58 Government & Public $0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 CIP Residential Fee* $10.00 $12.00 $12.00 $12.00 $12.00 $14.00 CIP Multi Family (per
unit)* $10.00/unit $12.00/unit $12.00/unit $12.00/unit $12.00/unit $14.00/unit CIP Non-Residential
Fee* $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
*The CIP fee is applied monthly
HOW WILL THE PROPOSED RATES IMPACT PROPERTY OWNERS?
The City estimates that for a typical single-family residential customer using 16 ccf of water per month, their monthly sewer fee will increase by $5.84. For a typical multi-family residential customer using 8 ccf of water per month, their monthly sewer fee will increase by $9.76 per unit.
Below is a table that summarizes the monthly bill impact for the various customers based on average water consumption.
AVERAGE MONTHLY SEWER FEE ($/CCF)
User Class Average Monthly Water
Consumption in CCF
Current Average Monthly
Sewer Fee
Proposed
Average Monthly Sewer Fee
Single-Family Residential 16 ccf $12.96 $18.80
Multi-Family Residential 8 ccf $7.36 $17.12
Commercial 66 ccf $71.28 $99.30
Industrial 63 ccf $68.04 $96.15
Institutional 430 ccf $253.70 $279.40
Government & Public 42 ccf $34.02 $53.10
HOW CAN I PROTEST?
Proposition 218 allows property owners to respond to the proposed fees prior to or during the public hearing. Consistent with Proposition 218 and California Government Code § 53755, this notice has been mailed to all property owners within the service area based on the most current information published by the Orange County Assessor. Any record owner of a parcel upon which the Sewer Rates are proposed for imposition and any tenant directly liable for the payment of Sewer Rates (i.e., a customer of record) may submit a written protest to the proposed rate increases; provided, however, only one written protest will be counted per identified parcel. If you object to the proposed fees as described in this Notice you may file a written protest with the City Clerk at or before the time set for the public hearing. Written protest may be hand delivered or mailed to the City Clerk at 401 East Chapman Avenue, Placentia, CA 92870. To be valid, written protests must include the following:
1. The name of the record owner or owners of the property
2. Service address and assessor’s parcel number (APN)
3. A statement of protest/opposition to the proposed increase (“I protest” will suffice); and
4. The original signature of the protesting owner or owners (photocopies will not be accepted).
If the City receives timely written protests in excess of 50 percent of the parcels receiving sewer service from the City, the City will not adopt the proposed rates. Please note that each property will be counted as a single vote, regardless of the number of owners. If there are two record owners, both must sign the written protest. If there are more than two owners, the protest must be signed by a majority of the owners.
Multiple protests returned for a single property will be disallowed and the City Clerk will only accept one protest per property. Email, fax, telephone, or oral protests of any kind will not be counted. Mailed protests received after the close of the public hearing will not be counted, even if they were postmarked earlier.
WHERE DO I FIND ADDITIONAL INFORMATION REGARDING THE PROPOSED RATES? Additional information regarding the basis for the public hearing, and proposed rate increases are set forth in the analysis, staff reports, and supporting documents provided to the City Council for its meeting on July 15, 2025 is available for public review at the City’s website at:
www.placentia.org/sewerrates .
For further information about the proposed rate increase, please contact the Public Works Department at (714) 993-8250
EN ESPAÑOL: Para recibir una copia de este aviso en español sobre los aumentos propuestos a la tarifa de servicio de alcantarillado, llame al (714) 993-8250, de lunes a jueves de 7:30 a.m. a 6:00 p.m.
HOW CAN I PROTEST?
Proposition 218 allows property owners to respond to the proposed fees prior to or during the public hearing. Consistent with Proposition 218 and California Government Code § 53755, this notice has been mailed to all property owners within the service area based on the most current information published by the Orange County Assessor. Any record owner of a parcel upon which the Sewer Rates are proposed for imposition and any tenant directly liable for the payment of Sewer Rates (i.e., a customer of record) may submit a written protest to the proposed rate increases; provided, however, only one written protest will be counted per identified parcel. If you object to the proposed fees as described in this Notice you may file a written protest with the City Clerk at or before the time set for the public hearing. Written protest may be hand delivered or mailed to the City Clerk at 401 East Chapman Avenue, Placentia, CA 92870. To be valid, written protests must include the following:
1. The name of the record owner or owners of the property
2. Service address and assessor’s parcel number (APN)
3. A statement of protest/opposition to the proposed increase (“I protest” will suffice); and
4. The original signature of the protesting owner or owners (photocopies will not be accepted).
If the City receives timely written protests in excess of 50 percent of the parcels receiving sewer service from the City, the City will not adopt the proposed rates. Please note that each property will be counted as a single vote, regardless of the number of owners. If there are two record owners, both must sign the written protest. If there are more than two owners, the protest must be signed by a majority of the owners. Multiple protests returned for a single property will be disallowed and the City Clerk will only accept one protest per property. Email, fax, telephone, or oral protests of any kind will not be counted. Mailed protests received after the close of the public hearing will not be counted, even if they were postmarked earlier.
WHERE DO I FIND ADDITIONAL INFORMATION REGARDING THE PROPOSED RATES? Additional information regarding the basis for the public hearing, and proposed rate increases are set forth in the analysis, staff reports, and supporting documents provided to the City Council for its meeting on July 15, 2025 is available for public review at the City’s website at: www.placentia.org/sewerrates .
For further information about the proposed rate increase, please contact the Public Works Department at (714) 993-8250 EN ESPAÑOL: Para recibir una copia de este aviso en español sobre los aumentos propuestos a la tarifa de servicio de alcantarillado, llame al (714) 993-8250, de lunes a jueves de 7:30 a.m. a 6:00 p.m.