Council adopts sewer rate ordinance after expert presentation; consultants caution on bedroom-count method

National City's City Council adopted an ordinance establishing sewer service charges for fiscal years 2026 through 2030 after a public hearing and a detailed presentation from city staff and consultant Carmen Kastner.

The council unanimously approved the ordinance following technical testimony that argued a rate structure with a substantial flat component is more defensible and administrable than a bedroom-count methodology or a pure flow-based billing approach.

Why it matters: Sewer service charges fund both operations and long-term capital investments for wastewater systems. The council was asked to adopt a multi-year rate schedule that staff says is needed to maintain the system and meet bond and regulatory obligations.

What staff told the council

Assistant Director of Engineering and Public Works Martha Juarez and consultant Carmen Kastner walked the council through the rate-study choices: flat rates, flow-based rates (metered volumetric billing), and hybrid models. Kastner told the council that many neighboring agencies use a hybrid; she said, however, that a bedroom-count method is rare among municipal sewer agencies and poses equity and administration problems. "There is no one that I could find that uses this methodology [bedroom-count]" she said, and added that apartment complexes sometimes use bedroom counts internally but public utilities generally do not.

Kastner also noted implementation complexity: flow-based billing requires accurate meter-to-property mapping and will still have a large fixed component to cover operations and capital costs. Juarez confirmed the city's operational constraints and presented program-level numbers: "In those 19 months, we've provided over 40,000 rides" — a comment offered in the same staff presentation sequence while describing other operational programs — and outlined that the proposed sewer increases average roughly 3% a year over five years per the adopted rate study.

Public comments and council deliberation

Members of the public asked clarifying questions about bill impacts on accessory dwelling units and multifamily properties. Staff told the council the city had issued 47 ADU certificates of occupancy in the past three years and that ADUs showed about a 50% increase in water use, an input considered for rate calculations.

Councilmembers pressed staff on defensibility and operational overhead. Several said they appreciated the additional analysis staff provided between the introduction and second reading, noting the city lacked the internal capacity some larger agencies use for meter-based billing. One councilmember said La Mesa was a comparable agency; staff confirmed La Mesa employs a dedicated financial analyst largely for wastewater billing.

Outcome and next steps

The council voted unanimously to adopt the ordinance. Staff will update billing systems and property tax roll charges as necessary and return annual reports per the city's rate schedule and state requirements.

Provenance (transcript span)

Topic intro: s=5215.215 (Assistant Director Juarez introduces the item) Topic finish: s=5864.975 (motion approved unanimously)