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Placentia moves to initiate Proposition 218 process for proposed sewer fee update to fund $19M in repairs
Summary
Council heard a detailed sewer-fee presentation outlining about $19 million in deferred capital needs, emergency repairs, and a proposed flat CIP fee; council directed staff to set a Proposition 218 hearing and potential November effective date.
City staff presented a 2025 Sewer Fee Update on July 15, telling the council that Placentia owns roughly 84 miles of gravity sewer lines (about 20% of lines pre-date 1970) and that deferred capital projects total about $19 million over seven years.
Deputy director Gable Guerrero explained the city conveys wastewater to the Orange County Sanitation District through 35 connection points and does not treat wastewater. Staff showed images from recent emergency repairs with significant pipe deformation and said two recent emergency fixes cost about $150,000 and $170,000 respectively. Because water usage declined since prior assumptions, the existing usage-based fee structure no longer covers capital needs, staff said.
To address the shortfall, staff proposed a combination of a flat CIP fee and modest usage changes: an example single-family residential monthly bill under the proposal would be $18.80 (about $6 more per month from current shown levels, totaling roughly $72 a year), with the CIP fee rising in $2 increments in later years. The proposed schedule showed a roughly 40% relative increase across user classes in the first fiscal year, with revenue projections designed to build a fund balance to meet larger projects in fiscal years 27-28 and 28-29.
Council members praised the factual presentation and voted unanimously to adopt a resolution setting a public hearing under Proposition 218 and to direct staff to begin community outreach and required notices. Council also asked staff to continue evaluating whether transferring sewer operations to a specialized agency (for example, the Yorba Linda Water District) would be appropriate.
Staff said the Proposition 218 noticing process could include a hearing in October and a potential effective rate date of November 7, 2025, if the steps and protest thresholds permit. The city will publish detailed rate tables and the Proposition 218 notice as part of the outreach.
