RESOLUTION NO. 2025-05-6875
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, ESTABLISHING RATES FOR WATER SERVICE FEES AND TAKING OTHER ACTIONS RELATED THERETO WHEREAS, the City of Signal Hill operates a municipal water system through which it delivers water to parcels within the City’s service area; and WHEREAS, the costs of operating the City’s water system, including utilities, contract services, water treatment supplies, and general supplies and materials needed for the maintenance and repair of the City’s water system, have increased substantially since the City’s last five year rate adjustment in January of 2020, and are estimated to continue increasing significantly as a result of inflation and changed market conditions; and WHEREAS, since the last water rate increase in 2020, the City’s Water Department has completed several capital improvement projects, such as the 33rd Street Water Main Replacement Project, construction of the Temple Disinfection Station and the chlorine generator replacement, and the Water Master Plan recommends several capital improvement projects to the water system which will require ongoing capital investment to fund the recommended water system improvements; and WHEREAS, costs charged by other agencies have also increased significantly, including rate increases imposed on the City by the Water Replenishment District of Southern California, Central Basin Municipal Water District, and California Joint Powers Insurance Agency; and WHEREAS, the City retained an independent rate consultant to conduct a cost of service analysis and rate study, which has been available for at least 45 days prior to the date of the public hearing (“Study”), and the Study shows that the existing rate structures are insufficient to meet current and future costs of service; and WHEREAS, the Study recommends increased rates for water service fees, and proposes a rate structure that complies with the substantive requirements of article XIII D, section 6 of the California Constitution; and WHEREAS, on December 10, 2024 the City Council appointed a Water Rate Subcommittee to review a preliminary financial analysis of the Water Fund and the Water Master Plan draft; and WHEREAS, on January 27, 2025 the Subcommittee reviewed the Water Master Plan draft, Water Rate Study, preliminary financial analysis and the proposed water rate adjustment scenarios; and WHEREAS, the Public Works Department conducted one City Council workshop and one community workshop to obtain Council and community input to determine appropriate increases to the water rates and has prepared a Water Rate Study about the rate increases; and WHEREAS, in order to increase rates, the City must comply with Article XIIID of the Constitution, more commonly known as Proposition 218; and WHEREAS, On March 25, 2025 City Council directed staff to conduct the Proposition 218 Protest Hearing on May 27, 2025; and WHEREAS, on April 4, 2025, the Public Works Department caused to be mailed the notice of public hearing to be held on May 27, 2025, relating to the increased water charges and the method of protest in accordance with California Constitution Article XIIID Section 6; and WHEREAS, on May 27, 2025, the City Council held a public hearing to conduct a Proposition 218 Protest Hearing on the proposed water rate structure and to receive public comments; and WHEREAS, the written protests against the fees have not been filed by more than fifty percent of the record owners and renters of identifiable parcels subject to the proposed water rates; and WHEREAS, on May 13, 2025 the City Council adopted Ordinance No. 2025-04-1554, authorizing future rates for water service fees to be adopted by resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, DOES RESOLVE AS FOLLOWS:
Section 1. The Recitals set forth above are true and correct, and by this reference are incorporated and made an operative part of this Resolution.
Section 2. The City Council hereby adopts the following maximum rates for the City’s water service fees. The rates will be effective for services provided on and after July 1, 2025, and will be increased each July 1 thereafter as set forth in the tables below.
Monthly Meter Service Charges ($/Month)
Water Usage Rates ($/CCF)
Monthly Fire Service Charges ($/Month)
Section 3. The City Council finds that the administration, operation, maintenance, and improvements of the water system, which are to be funded by the rates as set forth herein, are necessary to maintain service within the City. The City Council further finds that the administration, operation, maintenance and improvements of the water system, to be funded by the rates, will not expand such system. The City Council further finds that the adoption of the rates is necessary and reasonable to fund the administration, operation, maintenance and improvements of the water system. Based on these findings, the City Council determines that the adoption of the rates established herein are exempt from the requirements of the California Environmental Quality Act pursuant to section 21080(b)(8) of the Public Resources Code and section 15273(a) of the State CEQA Guidelines. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City offices: 2175 Cherry Avenue, Signal Hill, CA 90755.
Section 4. The City Council hereby finds that all requirements set forth in Government Code section 53759 and section 53759.1 have been met, and all valid legal objections timely received by the City have been responded to.
Section 5. To the extent any provisions of this Resolution conflict with any previously adopted resolution, order, or motion of the City, such resolution, order, or motion is hereby superseded to the extent of the conflict. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Signal Hill, California, on this 27th day of May 2025. _____
KEIR JONES
MAYOR
ATTEST:
DARITZA GONZALEZ
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF SIGNAL HILL )
I, DARITZA GONZALEZ, City Clerk of the City of Signal Hill, California, hereby certify that the foregoing Resolution No. 2025-05-6875 was adopted at a regular meeting of the City Council of the City of Signal Hill held on the 27th day of May 2025 by the following vote.
AYES:
NOES:
ABSTAIN:
ABSENT:
DARITZA GONZALEZ
CITY CLERK
Resolution No. 2025-05-6875
May 27, 2025