2024-04-15 City Council - Full Agenda-Special Meeting

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ITEM NO. 1 STAFF REPORT DATE: APRIL 15, 2024 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: BILL SMITH, CITY MANAGER PREPARED BY: BRIAN DICKINSON, PUBLIC WORKS DIRECTOR SUBJECT: WATER AND WASTEWATER RATE STUDY RECOMMENDED ACTION Staff recommends that the City Council take the following action: Approve Water and Wastewater Rate studies, and set future Public Hearing date for the regular City Council meeting of June 18, 2024, Proposed Adjustment to Water and Wastewater Rates. BACKGROUND The City of Colton Public Works and Utility Services Department operates and maintains the water and wastewater systems. The Water system consists of approximately 158 miles of pipelines ranging in size from 2 inches to 30 inches in diameter, within four distinct pressure zones. Water supply consists of 100% groundwater produced from X active wells, 3 booster pump stations, and 5 storage reservoirs with 11.3 million gallons capacity, to meet max day and peak hour demands and fire flows. The Wastewater system consists of approximately 170 miles of gravity flow pipelines up to 30 inches diameter, of which approximately 126 miles are City of Colton, and approximately 41 miles are the City of Grand Terrace, which Colton operates and maintains under agreement. The Cit y also operates and maintains 9 pumping lift stations, a Wastewater Treatment Facility and also is a participant with the City of San Bernardino in the RIX facility. The City and Colton Utility Authority’s (CUA) water rates pay for all operating expenses as well as fund, on a pay-as-you go basis, capital projects and debt services (annual principal + interest payments on outstanding debt and any future debt obligations). When the City and CUA issued bonds in the past to fund significant capital projects, the City and CUA guaranteed, and committed in these agreements, to establish and maintain water rates at levels sufficient to cover 1 Packet Pg. 5