Resolution No. 2026-XXX
RESOLUTION NO. 2026-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ADJUSTING RATES FOR WATER AND
SEWER SERVICES PROVIDED BY THE CITY OF SANTA
ANA
WHEREAS, Chapter 39 of the Santa Ana Municipal Code, Article 11, Sections 39- 19 and 39 -36, authorize the City to set and charge fees for the provision of water to customers within the City of Santa Ana and to establish those fees by resolution; and
WHEREAS, Chapter 39 of the Santa Ana Municipal Code, Article Ill, Sections 39-
55.1, 39-55.2, and 39-55.4, authorize the City to set and charge fees for the provision of sewer services to customers; and
WHEREAS, this Resolution adjusting water and sewer service rates shall apply only to Chapter 39 of the Santa Ana Municipal Code, Water and Sewers; and
WHEREAS, the City previously retained Robert D. Niehaus, Inc. , independent financial consultants, to review the City’s water and sewer utilities to determine whether rates for service charges are sufficient to meet increase costs of service, and to prepare a cost of service analysis and rate study (the “Study”); and
WHEREAS, based on the results of the Study, which was presented to City Council on January 20, 2026 (a copy of which is available for inspection at the City and was also posted on the City's website), increases to the rates for water and sewer service fees and charges are necessary; and
WHEREAS, the proposed water rate structure includes a variable water usage charge and a fixed monthly water utility charge, both billed on a monthly basis. T he proposed variable water rates are based on the amount of total water used, measured per hundred cubic feet ("CCF"). The fixed monthly water utility charge is independent of the amount of water used and is determined based on the size of the meter servin g the property, as measured in inches; and
WHEREAS, the proposed water rate structure also includes an updated to the Pass-Through Adjustment Policy to permit increases to City Water Usage Charges to offset future i ncreases in the cost of purchasing whol esale water needed to supply the City's water system that may be imposed on the City by the Orange County Water District or the Metropolitan Water District; and
WHEREAS, the proposed sewer utility charge is a fixed, monthly charge, based on the size of the meter serving the property, as measured in inches; and
Resolution No. 2026-XXX
WHEREAS, the proposed rate structures are for a period of five years, and are proposed to take effect May 1, 2026, and to increase each July 1 thereafter commencing July 1, 2027, through and including July 1, 2030; and
WHEREAS, the proposed water and sewer service fees (collectively, the "Fees") are property-related fees within the meaning of Article XIII D of the California Constitution; and
WHEREAS, the revenues derived from the Fees will not exceed the funds required to provide the services for which the Fees are imposed, and will be used exclusively for the operation and maintenance of the City's water and sewer systems; and
WHEREAS, the Fees are equitable to all customer classes; and
WHEREAS, the amount of the Fees will not exceed the proportional cost of the service attributable to each parcel upon which they are proposed for imposition; and
WHEREAS, the Fees will not be imposed on a parcel unless the service for which such Fees are imposed, is actually used by, or immediately available to, the owner of the parcel; and
WHEREAS, the Fees will not be imposed for general governmental purposes, but only for the costs of operation and maintenance of the City's water and sewer systems; and
WHEREAS, Article XIII D, section 6 of the California Constitution ("Article XIII D") requires that prior to imposing any increase to the Fees, the City shall provide written notice (the "Notice") by mail of the new or increased Fees to the record owner of each parcel upon which the Fees are proposed for imposition and any tenant directly liable for payment of the Fees, the amount of the Fees proposed to be imposed on each parcel, the basis upon which the Fees were calculated, the reason for the Fees, and t he date time and location of a public hearing (the "Hearing") on the proposed Fees; and
WHEREAS, on January 31, 2026, the City distributed notices as required by Article XIII D regarding the City Council's consideration of the proposed rate adjustments to the Fees at the March 17, 2026, public hearing to all owners of record and utility customers in accordance with Article XIII D, Section 6(a)(1) of the California Constitution and Government Code Section 53755; and
WHEREAS, on March 17, 2026, the City Council held a duly noticed public hearing on the proposed Fees contained in this Resolution, and at that time invited oral and written comments from the public; and
WHEREAS, upon close of said public hearing, the City did receive ____ written protests to the proposed Fees and therefore there has been no majority protest; and
Resolution No. 2026-XXX
WHEREAS, the City Council now desires to establish rates for the Fees, effective May 1, 2026, at the rates and subject to increases on the dates set forth in the schedules included as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:
Section 1. The adoption of this Resolution falls within a statutory exemption from environmental review pursuant to sections 15273, 15060(c)(2) of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA), which pertain to the establishment, modification, structuring, restructuring, or approval of rates and charges by public agencies which the public agency finds are for the purpose of meeting operating expenses, and pertain to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under CEQA Regulations.
Section 2. After considering the material presented in the Study, the City Council hereby finds as follows:
(a) Revenues derived from the Fees do not exceed the funds required to provide the property-related service;
(b) Revenues derived from the Fees shall not be used for any purpose other than for which the Fees or charges is imposed;
(c) The amount of the Fees imposed upon any parcel or person does not exceed the proportional cost of service attributable to the parcel;
(d) The Fees are imposed for services that are actually used by, or immediately available to, the owner of the property upon which the Fees are imposed; and
(e) The Fees will not be imposed for general governmental purposes, but only for the costs of operation and maintenance of the City's potable water, recycled water, and sewer systems.
Section 3 . After receiving public comment and testimony on the new fee structure for water, sewer and recycled water services provided, and absent a majority protest to the proposed fee increases, the new fee schedule for water, sewer and recycled water fees and charges is hereby approved as set forth in Exhibit A attached hereto and incorporated herein by this reference.
Section 4. The new fee schedule for water, sewer and recycled water services shall be implemented beginning May 1, 2026, and shall be increased on July 1, 2027 and annually thereafter, up to the maximum rates set forth in Exhibit A. The scheduled adjustments authorized by this Section may be made by the City Manager or designee, without conducting another public hearing or any action on the part of the City Council.
Resolution No. 2026-XXX
Section 5 . Pursuant to the City’s pass -through policy, for Fiscal Years 2026- 2027 through 2030-2031, the water usage charge component of the water service rates may be further adjusted by the City in an amount equal to any increase in the cost of purchasing wholesale water needed to supply the City's water system that may be imposed on the City by the Orange County Water District or the Metropolitan Water District. The increase in rates may not exceed the cost of providing water service and in no event shall the pass -through adjustment exceed 15% in any given year . The adjustments authorized by this Section may be made by the City Manager or designee, without conducting another public hearing or any action on the part of the City Council.
However, the City shall provide written notice to all affected owners and customers of record not less than thirty (30) days prior to the effective date of the rate increase, pursuant to California Government Code Section 53756.
Section 6. T
his Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. To the extent any other resolution of the City conflicts with the provisions set forth herein, it is the explicit intent of the City Council that the provisions of this Resolution shall supersede.
A
DOPTED this ____ day of ___________________, 2026.
Valerie Amezcua
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
Kyle Nellesen
Assistant City Attorney
AYES:
Councilmembers
NOES:
Councilmembers
ABSTAIN:
Councilmembers
NOT PRESENT:
Councilmembers _
Resolution No. 2026-XXX
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2026-_____ to be the original R esolution adopted by the City Council of the City of Santa Ana on _____________________, 2026.
Date:
City Clerk
City of Santa Ana
EXHIBIT A
Water Service Rates
Monthly Fixed Charges for All Customers by Meter Size
Retail Fixed Charges
Meter Size 2026 2027 2028 2029 2030
5/8" X 3/4" $26.71 $29.11 $31.73 $34.59 $37.36
3/4" $39.10 $42.62 $46.45 $50.63 $54.68
1" $63.87 $69.62 $75.89 $82.72 $89.33
1 1/2" $125.81 $137.13 $149.48 $162.93 $175.96
2" $200.14 $218.15 $237.78 $259.18 $279.92
3" $435.50 $474.70 $517.42 $563.99 $609.11
4" $782.36 $852.77 $929.52 $1,013.18 $1,094.23
6" $1,612.34 $1,757.45 $1,915.62 $2,088.02 $2,255.07
8" $2,974.99 $3,242.74 $3,534.58 $3,852.69 $4,160.91
10" $5,204.78 $5,673.21 $6,183.79 $6,740.34 $7,279.56
Fire Line Fixed Charges
Meter Size 2026 2027 2028 2029 2030
2" $3.90 $4.25 $4.63 $5.05 $5.45
3" $7.63 $8.32 $9.07 $9.88 $10.67
4" $14.07 $15.34 $16.72 $18.23 $19.69
6" $37.20 $40.55 $44.20 $48.17 $52.03
8" $77.08 $84.02 $91.58 $99.83 $107.81
10" $137.08 $149.42 $162.87 $177.52 $191.72
12" $220.23 $240.05 $261.66 $285.21 $308.02
Monthly Tier 1 Widths for All Customers, 2026 to 2030
Meter Size
Tier 1 Width
(ccf)
5/8" X 3/4" 21
3/4" 32
1" 53
1 1/2" 105
2" 168
3" 369
4" 663
6" 1,369
8" 2,527
10" 4,423
Variable Rates for All Customers
Variable Charges per hcf
Tier 2026 2027 2028 2029 2030
Tier 1 $3.16 $3.44 $3.75 $4.09 $4.42
Tier 2 $5.12 $5.58 $6.08 $6.63 $7.16
Recycled $3.60 $3.92 $4.28 $4.66 $5.03
Sewer Utility Rates
Monthly Fixed Sewer Rates
Sewer Fixed Charges
Meter Size 2026 2027 2028 2029 2030
5/8" X 3/4" $10.56 $11.98 $13.18 $14.50 $15.95
3/4" $10.56 $11.98 $13.18 $14.50 $15.95
1" $16.47 $18.69 $20.56 $22.61 $24.88
1 1/2" $36.16 $41.04 $45.15 $49.66 $54.63
2" $79.49 $90.22 $99.25 $109.17 $120.09
3" $280.39 $318.24 $350.06 $385.07 $423.58
4" $494.09 $560.79 $616.87 $678.55 $746.41
6" $1,088.89 $1,235.89 $1,359.48 $1,495.43 $1,644.98
8" $1,088.89 $1,235.89 $1,359.48 $1,495.43 $1,644.98
10" $1,088.89 $1,235.89 $1,359.48 $1,495.43 $1,644.98
Sewer FOG Charges