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Council authorizes RFP for water, wastewater and solid-waste rate studies

Port Hueneme City Council · December 3, 2024
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Summary

Council authorized staff to issue a request for proposals to study water, wastewater and solid-waste rates and return with analysis; wastewater and solid-waste funds were noted as having low reserves and staff expects a rate-analysis report in early 2025.

The Port Hueneme City Council authorized staff to issue an RFP to retain an expert to analyze water, wastewater and solid-waste utility rates.

City staff explained that rate studies are customary every three to five years, and that the wastewater and solid-waste funds were last analyzed about 15 years ago and currently have declining reserves; staff said both funds are down to less than $2 million in reserves and recommended an RFP to evaluate fund balances, capital needs and potential rate adjustments. The RFP timeline anticipates responses by Jan. 15 and a return to council with findings and recommendations around March–April 2025.

Councilmembers asked for fund-balance charts and comparisons to help communicate the need to residents; staff agreed to include trend visuals and cost-of-failure scenarios when returning with analysis. The council voted unanimously to authorize the RFP; authorization does not itself start a rate-increase process but begins the analysis that could lead to future recommendations.