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Seal Beach council adopts proposed water and sewer rate package after contentious public hearing
Summary
After a multi-hour public hearing with dozens of speakers and hundreds of written protests, the Seal Beach City Council adopted the city's staff-recommended water and sewer rates (Option 1) with a 3-2 vote; written protests did not reach a majority of affected parcels.
Seal Beach 'The City Council on Aug. 11 adopted a set of water and sewer rate adjustments staff said are needed to stabilize the utility enterprise and fund a multi-year capital program.
The 3-2 vote approves the staff-recommended package (Option 1) and the associated resolutions that staff presented for council consideration; the rates are scheduled to take effect Sept. 1, 2025, if legal-administrative steps are met. Mayor Pro Tem Steel, Council member Wong and Council member Kalmick voted to approve the package; Council member Senecal and Mayor Eilisa Landau voted no.
The meeting reopened a public hearing that began July 14 and drew sustained public comment Aug. 11. Director of Public Works Lee and staff described a utility enterprise that has run operating deficits, exhausted reserves and faces aging pipelines and facilities. "The enterprise fund only pays for that portion of the support related to the water and sewer related enterprise functions," Lee said during staff remarks, explaining staff time allocations and shared-services charges to the utility.
Why it matters: Staff and the city's consultants told the council the proposed rates are intended to (1) stabilize the water and sewer enterprise, (2) fund immediate and near-term capital projects and (3) put the utilities in a position to borrow for construction when needed. Opponents argued the plan leans too heavily on single-family homeowners, would create generational debt and lacks sufficient cost-allocation detail; many urged a phased, smaller program or more study.
Key details: The city clerk reported that written protests against the proposed water rates came from 431 parcels out of 5,614 parcels subject to the water rate (not a majority). Written protests against the sewer rate represented 426 parcels out of 5,070 parcels subject to the sewer rate (not a majority). Director Lee asked the council, if a majority protest did not exist, to adopt the following resolutions: a procedural resolution responding to timely-filed written objections, and resolutions establishing water and sewer rates effective Sept. 1, 2025; staff also asked council to receive and file the Raftelis financial plan and rate study dated June 17, 2025.
Public comment: More than a dozen speakers urged alternatives, questioned staff time allocations charged to the utility, warned of long-term debt and pressed for a smaller, prioritized project list. Patty Campbell (College Park East) said neither staff option was "best for our city" and urged a third, phased option. Teresa Miller (Old Town) said the adopted plan would lock residents into "decades of crushing costs" and called it "reckless." Supporters including former city officials and some residents said delaying work would raise long-term costs and risk failures in the system.
Council action and next steps: After deliberation and two competing motions, the council voted to adopt the staff-recommended Option 1 (3-2). Staff said adoption would allow the city to move forward with the package necessary to qualify for and place construction financing; staff will return with implementing resolutions, and construction timelines and council retained the ability to approve or defer individual projects before borrowing occurs. Staff also described plans to improve public reporting (project website and periodic updates) and to solicit more detailed cost-of-service and master-plan studies as follow-ups.
Votes at a glance: Motion to adopt Option 1 (staff-recommended water and sewer financial plan and rates effective Sept. 1, 2025): mover Mayor Pro Tem Steel; second Council member Wong. Vote: Yes — Mayor Pro Tem Steel, Council member Wong, Council member Kalmick; No — Council member Senecal, Mayor Eilisa Landau. Outcome: approved 3-2.
Context: The hearing followed months of outreach and a prior continued hearing. Speakers repeatedly cited Proposition 218 / local-tax rules and asked the council for more detailed, parcel-level cost allocation studies before approving full rate adjustments. Staff and consultants said such studies are planned but that immediate capital needs and exhausted reserves require near-term rate actions.
Ending: The council approved the staff-led package while directing additional reporting and further cost-of-service work; staff will present implementing language and schedules to the council and post project-tracking materials online.
