HomeMy WebLinkAboutCC Res 7668 2025-08-11 RESOLUTION 7668
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
RESPONDING TO TIMELY FILED WRITTEN OBJECTIONS TO
PROPOSED ADJUSTMENTS TO THE RATES FOR THE CITY'S
WATER AND SEWER SERVICE CHARGES PURSUANT TO THE
REQUIREMENTS OF STATE ASSEMBLY BILL 2257
WHEREAS, the City of Seal Beach maintains a municipal Water Utility that
provides water services and a municipal Sewer Utility that provides wastewater
(sewer) collection services to residents and businesses; and,
WHEREAS, the City's Water Utility and Sewer Utility operational and capital
improvement costs have increased substantially since the last rate adjustment,
and are estimated to continue increasing significantly; and,
WHEREAS, the City's currently established water and sewer rates are not
adequate to meet increasing operations and maintenance and capital
improvements costs without compromise to system operations; and,
WHEREAS, on June 12, 2023, the City retained Raftelis Financial Consultants,
Inc. to conduct a Water and Wastewater Financial Plan and Rate Study (2025
Financial Plan) to analyze the cost of providing water and sewer services and
recommend appropriate water and sewer rate adjustments; and,
WHEREAS, on May 12, 2025, an overview of the draft 2025 Financial Plan,
including recommendations for proposed water and sewer rate adjustments were
presented to the City Council; and,
WHEREAS, in order to adjust the water and sewer rates, the City must comply
with Article XIIID of the Constitution, more commonly known as Proposition 218;
and,
WHEREAS, on September 25, 2024, Governor Newsom approved State
Assembly Bill 2257 (AB 2577), effective January 1, 2005, which added Sections
53759.1 and 53759.2 to the California Government Code; and,
WHEREAS, AB 2257 creates an exhaustion of administrative remedies
requirement that, if implemented by a local public agency, requires persons and
entities to submit a written objection that specifies the grounds for alleging
noncompliance of proposed water and sewer rates with Proposition 218 prior to
the deadline established by the local public agency, or be barred from any right to
challenge the water and sewer rates through a legal proceeding; and,
WHEREAS, on May 12, 2025, City Council adopted Resolution 7645 to provide for
an exhaustion of administrative remedies requirement pursuant to AB 2257 in
connection with the proposed water and sewer rate adjustments and set July 7,
2025 at 5:00 p.m., as the deadline for the submittal of written objections; and,
WHEREAS, on May 12, 2025, City Council adopted Resolution 7644 setting a
public hearing on the proposed water and sewer rate adjustments on July 14, 2025
(the "Public Hearing"), and directing staff to initiate the Proposition 218 majority
protest process for the proposed water and sewer rate adjustments; and,
WHEREAS, in accordance with the requirements of AB 2257 and Proposition 218,
the City provided mailed notice of the Public Hearing, which notice includes,
among other information, the substantive and procedural requirements for
submitting a written objection to the proposed water and sewer rate adjustments
and a statement that the failure to timely object in writing to the proposed water
and sewer rate adjustments bars any right to challenge the proposed rate
adjustments through a legal proceeding; and,
WHEREAS, the City complied with the provisions set forth in AB 2257 for
establishing an exhaustion of remedies requirement in connection with the
proposed water and sewer rate adjustments, including, among other things,
providing not less than 45 days from the date of the mailing the notice of the Public
Hearing for persons and entities to submit a written objection to the proposed water
and sewer rate adjustments; and,
WHEREAS, as of the July 7, 2025, 5:00 p.m. deadline for submitting written
objections, the City received three (3) written objections to the proposed water rate111
adjustments and/or the proposed sewer rate adjustments, which objections are set
forth in Exhibit A, attached hereto and incorporated herein (Objections); and,
WHEREAS, this Resolution, as required by AB 2577, responds in writing to the
Objections, and the responses to the Objections are set forth in Exhibit B, attached
hereto and incorporated herein (Responses); and,
WHEREAS, each Response includes the grounds for which a challenge is not
resulting in amendments to the proposed water rate adjustments and/or proposed
sewer rate adjustments, as applicable, and an explanation of the substantive basis
for retaining or altering the proposed water rate adjustments and/or proposed
sewer rate adjustments, as applicable in response to the Objection.
NOW, THEREFORE, the Seal Beach City Council does resolve, declare,
determine and order as follows:
Section 1. The City Council finds the Recitals set forth in this Resolution are
true and correct and are incorporated by reference.
Section 2. The City Council hereby adopts the Responses set forth in Exhibit B,
attached hereto.
Section 3. In considering the Responses, the City Council determined (1)
whether the Objections and the Responses warrant clarifications to
the proposed water rate adjustments and/or proposed sewer rate
adjustments; (2) whether to reduce the proposed water rates and/or
proposed sewer rates; (3) whether to undertake further review before
making a determination on whether clarification or reduction is
needed; and (4) whether to proceed with the Public. If any part of
this Ordinance or its application is deemed invalid by a court of
competent jurisdiction, the City Council intends that such invalidity
will not affect the effectiveness of the remaining provisions or their
application and, to this end, the provisions of this Ordinance are
severable.
Section 4. If any provision of this Resolution or its application is deemed invalid
by a court of competent jurisdiction, the City Council intends that
such invalidity will not affect the effectiveness of the remaining
provisions or their application and, to this end, the provisions of this
Resolution are severable.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 11th day of August 2025 by the following vote:
AYES: Council Members Kalmick, Wong, Steele
NOES: Council Members Senecal, Landau
ABSENT: Council Members
ABSTAIN: Council Members
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Gloria D. Harper, City Clerk Ji0;';(48.ER 2 1,,__-cps
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7668 on file in the office of
the City Clerk, passed, approved, and adopted by the City Council at a regular
meeting held on the 11th day of August 2025.
Gloria D. Harper, City Clerk
Exhibit A—Written Objections (redacted)
Exhibit B — Responses to Written Objections
EXHIBIT A
IWritten Objections (redacted)
EXHIBIT B
Responses to Written Objections