2015 Water Rate Study

Rate Setting Process

in 2015, Brea staff worked for over a year with water rate technical consultant, Raftelis Financial Consultants, Inc. (RFC), gathering consumption history, water purchases, maintenance costs, etc., to determine an appropriate rate structure for Brea. Subsequently, in-depth reports were prepared and this topic was placed on multiple City Council agendas.

Recent questions have been answered to help explain aspects of Brea's water operation.

Since spring of 2015, Brea’s City Council has conducted five public discussions regarding water rates. The first meeting took place on May 5, 2015 followed by August 25, 2015, October 3, 2015, and November 17, 2015. A public hearing regarding proposed rate adjustments was held at the February 2, 2016 City Council meeting.

Many documents and presentations have been distributed to interested participants and posted on the website for reference. In addition, on-demand viewing of council meetings has been available online. A Notice of the public hearing was mailed directly to all customers and property owners. You may use live links below to see related documents and presentations.

Council Meeting May 5, 2015

May 5, 2015 - Study Session Presentation

May 5, 2015 - Water Study Session Memo

Council Meeting August 25, 2015

August 25, 2015 - Revised Water Rate Study

Council Meeting October 5, 2015

October 6, 2015 - Water Rate Study Presentation

October 6, 2015 - Staff Report

October 6, 2015 - Attachment - non residential rates

Council Meeting November 17, 2015

November 17, 2015 - Rate Study Presentation

November 17, 2015, Staff Report

Public Hearing Official Notice

Council Meeting February 2, 2016

February 2, 2016 - Public Hearing Presentation

February 2, 2016 - Final Staff Report

February 2, 2016 - proposed water rate resolution

Council Meeting May 17, 2016
May 17, 2016 - Public Hearing Presentation

 Staff Report

The City of Brea takes management of its water utility operation through the Public Works Department very seriously. Certified water professionals are highly conscientious in the daily distribution of water to over 13,000 customers and for quality maintenance to 197 miles of potable pipeline and the associated pump stations and reservoirs. The entire community relies on this vital utility for its health and economic stability.

Brea’s water utility is financially structured as a non-profit enterprise within the overall City of Brea budget for delivery of approximately 10,770 acre feet of water annually. Responsible managers strive to control costs while holding adequate reserves to enable critical capital improvements that protect the quality and reliability of the overall system. The City has always closely monitored operations and it routinely evaluates costs in order to offer fair rates that cover operational needs.

Although California’s record drought does have major implications for the acquisition and distribution of water, Brea’s current review process was triggered as part of a routine cycle of careful management. Fixed costs to build, operate and maintain the system are examined in addition to actual purchase prices for the water commodity. Adjustments are required to maintain healthy finances and to meet legal requirements showing actual costs of delivery.

This analytical process becomes very timely given State of California mandates for increased water conservation in recent months. State mandates impact every jurisdiction, not only Brea's reduction requirement. Close resource management by all water utilities will be essential to assure ongoing future service throughout the entire State.

Per discussion at a City Council meeting, the proposed effective date was moved to March 9, 2016, with a secondary adjustment on July 1, 2016 to align with the usual annual review and adjustment timing.

Projected Impact of Proposed Rates