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CC SR 20170620 02 - Ab Cove Sewer FeeCITY OF RANCHO PALOS VERDES PUBLIC HEARING Date: June 20, 2017 Subject: Consideration and Possible Action to Adopt an Adjustment to the Existing Annual Sewer Service Charge for the Sewer System of the Abalone Cove Landslide Abatement District (ACLAD) Subject Property: Citywide 1. Report of Notice Given: City Clerk Colborn 2. Request for Staff Report: Mayor Campbell 3. Staff Report & Recommendation: Principal Engineer Dragoo 4. Council Questions of Staff (factual only, no opinions): 5. Declare the Hearing Open: Mayor Campbell 6. Public Testimony: Mayor Campbell invites brief comments from the public. Appellant: N/A Applicant: N/A 8. Rebuttal: N/A 9. Declare Hearing Closed: Mayor Campbell 10. Council Deliberation: Questions of staff in response to testimony 11. Council Action: RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/20/2017 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Consideration and possible action to adopt an adjustment to the existing annual sewer service charge for the sewer system of the Abalone Cove Landslide Abatement District (ACLAD) RECOMMENDED COUNCIL ACTION: (1) Conduct the public hearing on the proposed levy of the annual FY17-18 sewer service charge for the ACLAD sewer system; and, (2) Adopt Resolution No. 2017-, a Resolution of the City Council of the City of Rancho Palos Verdes approving a report in connection with the sewer service charge established pursuant to Chapter 13.06 of the Rancho Palos Verdes Municipal Code, and ordering that such charge be collected on the tax roll. FISCAL IMPACT: The amount estimated to be collected from the property owners that pay the charge for FY16-17 is $58,113, and the amount of the subsidy from the City to fully fund the maintenance program is $167,887. Amount Budgeted: $232,100 Additional Appropriation: N/A Account Number(s): 225-400-0000-5201-11.1j" ORIGINATED BY: Ron Dragoo, PE, Principal Engineer REVIEWED BY: Terry Rodrigue, PE, Interim Director of Public Works APPROVED BY: Doug Willmore, City Manager M -10 - ATTACHED SUPPORTING DOCUMENTS: A. Annual Report — Abalone Cove Sewer Maintenance Fee (page A-1) B. Resolution No. 2017- (page B-1) C. Operation & Maintenance, City Contribution & Total Charge (page C-1) D. Parcel Charges by Zone (page D-1) E. ACLAD Sewer System Work Plan (page E-1) EXECUTIVE SUMMARY: The Abalone Cove Sewer Service Charge (Charge) has been in existence since July 2001. The Charge was enacted pursuant to Ordinance No. 367U on August 7, 2001, in compliance with the procedures set forth under Proposition 218. Pursuant to said Ordinance No. 367U, a 7% annual escalator for inflationary adjustments was also approved after a noticed public hearing. Revenues collected through the Charge help 1 pay for maintenance of the sewer system within ACLAD. Since inception, the annual revenue from the Charge has ranged from $21,595 (FY01-02 and FY02-03) to $56,419 for FY16-17. Each parcel is charged pursuant to the specific subsystems used by each parcel. At the inception of the Charge, the City established a policy of subsidizing the cost of maintenance of the system in an effort to reduce the charges to property owners and provide funding to adequately maintain the system. However, in 2010, the City Council directed Staff to develop a procedure that would ultimately eliminate the taxpayer subsidy. The proposed subsidy for FY17-18 is $167,887. BACKGROUND AND DISCUSSION: To ensure funding for the on-going operation and maintenance of the sewer facilities in the Abalone Cove area, the City Council established the Sewer Service Charge (Charge) in July 2001. The Charge ensures a fair and equitable levying of the necessary costs of operating and maintaining the facilities. The City Council annually reviews the current and projected costs for operating and maintaining the sewer facilities and sets rates for the ensuing fiscal year. In setting the annual rates, the City Council considers any new or updated maintenance costs identified in the FY17-18 Engineer's Report (Attachment A), any fund balances or shortages, and adjusts the rates accordingly. To levy the Charge for FY17-18, the City holds a public hearing. An estimate of the total annual operating costs and the corresponding Charge required of each property is provided in Attachment A. The Charge for FY17-18 will be submitted to the County for collection through the tax rolls. To that end, the City Council annually adopts a resolution approving the report and ordering collection of the Charge on the tax rolls (Attachment B). The estimated annual cost to operate and maintain the Abalone Cove Sewer System for FY17-18 is $226,000, which is lower than the actual amount for FY16-17. The decrease, which is within the constraints of Ordinance No. 367U, represents on-going system maintenance requirements (Attachment E). The historical Operation and Maintenance costs, City contributions (subsidy), and the charges for past fiscal years are shown in Attachment C. Through the current budget process, the City is budgeting funds for FY17-18 to accommodate a subsidy of $226,000. Based upon the FY17-18 Engineer's Report (Report), the anticipated maintenance needs require a subsidy of $167,887. The Report groups parcels into various rate zones based on the specific combination of sewer subsystems used by each parcel. The proposed FY17-18 charge for a single- family parcel ranges from $170.62 to $747.89. The charges for all zones (A, B, C and D) are at the maximum allowable rates. The proposed increases for these zones range from $4.49 to $19.66 per parcel. A description of the proposed Charge by zone, and a chart showing the historic and proposed FY17-18 charges, are shown in Attachment D. 2 The Ordinance establishing the Charge also established the maximum service charge that can be levied, which is adjusted each year based on changes in the Consumer Price Index (CPI) and is determined based on the Equivalent Rate Unit (ERU) method. The maximum service charges by zone for the FY17-18 are as follows: The City Council has directed Staff to develop a procedure to reduce the City subsidy to zero. Staff is working to bring the ACLAD sewer system into an operating condition consistent with Los Angeles County standards. Following this work, the plan to reduce the subsidy will be brought forward. Funding for a sewer system upgrade program for the Abalone Cove Sewer System is being approved through the regular budget process for FY17-18. The public hearing is being conducted pursuant to Health and Safety Code Section 5473 for the purpose of electing to collect the Charge on the County Tax Roll. Should there be a majority protest, the City Council is still authorized to collect the Charge (since it is within the confines of Ordinance No. 367U), but will have to provide an alternative method of collection at a subsequent meeting. ALTERNATIVES: In addition to the Staff recommendations, the following alternative actions are available for the City Council's consideration: 1. Reduce or eliminate the Charge: The proposed FY17-18 charges are at the maximum allowable rates under the Ordinance, and to increase the charges above these rates would require the City Council to undertake increase proceedings in compliance with Proposition 218. 2. Reduce, eliminate or increase the subsidy: The City is required by law to ensure the safe operation and maintenance of the sewer systems it owns. The Engineer's Report includes the best estimates of the necessary revenues to operate and maintain the system. Thus, the City would need to increase the subsidy or be subject to regulatory fines in the event of system failures if the Charge was reduced or eliminated. 9 FY16-17 Max. Rates Proposed Increase/Zone Proposed FY17-18 Rate Zone A $166.13/ERU $ 4.49 $170.62/ERU Zone B $668.87/ERU $18.06 $686.93/ERU Zone C $225.50/ERU $ 6.09 $231.59/ERU Zone D $728.23/ERU $19.66 $747.89/ERU The City Council has directed Staff to develop a procedure to reduce the City subsidy to zero. Staff is working to bring the ACLAD sewer system into an operating condition consistent with Los Angeles County standards. Following this work, the plan to reduce the subsidy will be brought forward. Funding for a sewer system upgrade program for the Abalone Cove Sewer System is being approved through the regular budget process for FY17-18. The public hearing is being conducted pursuant to Health and Safety Code Section 5473 for the purpose of electing to collect the Charge on the County Tax Roll. Should there be a majority protest, the City Council is still authorized to collect the Charge (since it is within the confines of Ordinance No. 367U), but will have to provide an alternative method of collection at a subsequent meeting. ALTERNATIVES: In addition to the Staff recommendations, the following alternative actions are available for the City Council's consideration: 1. Reduce or eliminate the Charge: The proposed FY17-18 charges are at the maximum allowable rates under the Ordinance, and to increase the charges above these rates would require the City Council to undertake increase proceedings in compliance with Proposition 218. 2. Reduce, eliminate or increase the subsidy: The City is required by law to ensure the safe operation and maintenance of the sewer systems it owns. The Engineer's Report includes the best estimates of the necessary revenues to operate and maintain the system. Thus, the City would need to increase the subsidy or be subject to regulatory fines in the event of system failures if the Charge was reduced or eliminated. 9 -I/ - Annual Report for Abalone Cove Sewer Service Charge Fiscal Year 2017-18 prepared for the City of Rancho Palos Verdes Los Angeles County, California May 18, 2017 = � Harris & Associates A-1 City of Rancho Palos Verdes May 18, 2017 Annual Report — Abalone Cove Sewer Service Charge — Fiscal Year 2017-18 TABLE OF CONTENTS Certificates................................................................. Pg. 1 Introduction............................................................... Pg. 2 Cost Estimates............................................................ Pg. 3 Annual Charge Rate Calculations ............................... Pg. 4 APPENDIX Preliminary Sewer Charge Roll Harris & Associates A-2 City of Rancho Palos Verdes Annual Report — Abalone Cove Sewer Service Charqe — Fiscal Year 2017-18 Fiscal Year 2017-18 Annual Report City of Rancho Palos Verdes Abalone Cove Sewer Service Charge The undersigned respectfully submits the enclosed report. DATED: May 18, 2017 y BY: K. Dennis -4i ngel'W/fler R.C.E. No. 50255 I HEREBY CERTIFY that the enclosed Engineer's Report, was filed with me on the )2017. Emily Colborn, City Clerk, City of Rancho Palos Verdes Los Angeles County, California May 18, 2017 Paqe 1 day of I HEREBY CERTIFY that the enclosed Engineer's Report, was approved and confirmed by the City Council of the City of Rancho Palos Verdes, California, on the day of 2017. Emily Colborn, City Clerk, City of Rancho Palos Verdes Los Angeles County, California 0 Harris & Associates A-3 City of Rancho Palos Verdes May 18, 2017 Annual Report — Abalone Cove Sewer Service Charge — Fiscal Year 2017-18 Page 2 INTRODUCTION To insure a flow of funds for the on-going operation and maintenance of the sewer facilities in the Abalone Cove area, the City Council formed the Abalone Cove Sewer Service Charge. This Sewer Service Charge ensures a fair and equitable levying of the necessary costs of operating and maintaining of the facilities and was established in compliance with the provisions of Proposition 218, Article XIIID of the California Constitution, Section 6(b). Mailed notices were sent to all affected property owners and the Public Hearing was held on July 17, 2001. Since there was not a majority of written protests, the charge was established with a not to exceed maximum increase of seven percent (7%) each year. This report, as signed and presented to the Council for approval, has been prepared according to the methodology and rates approved by the City Council in 2001. The City Council annually reviews the current and projected year's costs for the operation and maintenance of the sewer facilities and sets the rates for the ensuing fiscal year, which runs between July 1 and June 30. In setting the annual rates, the City Council will consider any new or updated maintenance costs, any fund balances or shortages, and adjust the rates accordingly. The Abalone Cove Sewer Service Charge is levied under the authority of the California Health and Safety Code, Sections 5471 et seq. (the "Code"). Payment of the charges for each parcel will be made in the same manner and at the same time as payments are made for county property taxes for each property. This report contains the necessary data required to establish the annual charge rates and is submitted to the City Clerk for filing in the office of the City Clerk where it shall remain open for public inspection. Harris & Associates A-4 City of Rancho Palos Verdes May 18, 2017 Annual Report — Abalone Cove Sewer Service Charge — Fiscal Year 2017-18 Page 3 COST ESTIMATE The estimated annual cost of the Abalone Cove Sewer System is provided below in Table 1. Table 1— Estimated Annual Costs GRAVITY SUBSYSTEM Annual Maintenance $5,500 Service main Line Cleaning $17,000 Install Flow Meter at PVDS Manhole $12,000 Zone D City Contribution = $34,500 FORCE MAIN SUBSYSTEM Annual Maintenance $35,500 SCADA Purchase and Installations $10,500 Pump Replacement $18,000 Emergency Repairs $14,000 $78,000 LOW PRESSURE SUBSYSTEM Annual Maintenance $16,000 Pump Replacement $18,000 Pump Maintenance $22,000 Emergency Repairs $38,000 $94,000 Subtotal = $206,500 ADMINISTRATIVE COSTS City Administration and Overhead $10,300 Edison $3,600 Professional Services $5,100 Fund Balance $0 Operating Reserve $0 County Charge for Collection $500 Subtotal = $19,500 Total Maintenance & Operation Costs = $226,000 Zone A City Contribution = ($7,360) Zone B City Contribution = ($34,548) Zone C City Contribution = ($61,818) Zone D City Contribution = ($64,160) Total City Contribution = ($167,887) Total Annual Charge to Levy = $58,113 Harris & Associates A-5 City of Rancho Palos Verdes May 18, 2017 Annual Report — Abalone Cove Sewer Service Charge — Fiscal Year 2017-18 Page 4 ANNUAL CHARGE RATE CALCULATIONS The rate structure for the Sewer Service Charge is based on the amount of sewage flow generated by each parcel of land within the sewer system service area. Equivalent Residential Units The sewer flow rates used to calculate this User Charge are based on the Los Angeles County Sanitation District (LACSD) standards, as outlined in their Master Service Charge Ordinance of South Bay Cities Sanitation District of Los Angeles County, as adopted on March 18, 1998. This ordinance describes the user categories and mean loading of sewer usage for flow in the South Bay Cities Sanitation District of Los Angeles County. Using these standards, residential parcels with single family homes are assigned a flow rate of 260 Gallons Per Day (GPD). Therefore, 260 GPD is defined as 1 Equivalent Residential Unit (ERU) and all other parcels are charged based on the number of ERUs calculated on their property for their particular use. The total flow rate for each parcel is divided by 260 to calculate the number of ERUs assigned to the parcel. Vacant parcels have no sewer flow associated with them and therefore would be assigned 0 ERUs. The Abalone Cove Beach property flow rate was calculated based on the future improvements to the beach (consisting of 7 toilet facilities and 2 showers). The flow rates for these facilities were based on information provided by the City of Los Angeles Bureau of Sanitation, and are shown below in Table 2. Table 2 provides a summary of the user categories in the Abalone Cove sewer service area, the assigned flow rates, and the ERU calculation for each. Table 2 — ERU Calculation Summary Table Land Use Description Flow GPD ERU Calc. Single Family Home 260 / home 1.00 / home Church 50 / 1000 bldq sf 0.19 / 1000 bldg sf School/Nursery 200 / 1000 bldg sf 0.77 / 1000 bldg sf Beach Toilet 120 / toilet 0.46 /toilet Beach Shower 85 / shower 0.33 / shower Vacant 0 0 Sewer System Components The Abalone Cove sewer system is comprised of three types of components or subsystems: ♦ a gravity subsystem, ♦ a force main subsystem, and ♦ a low-pressure subsystem. Harris & Associates A-6 City of Rancho Palos Verdes May 18, 2017 Annual Report — Abalone Cove Sewer Service Charge — Fiscal Year 2017-18 Page 5 These different and integrated subsystems collect flows from the sewer service area and ultimately convey it to the LACSD outfall. Flows generated by each parcel are conveyed through one or more of these subsystems. Each of these subsystems requires different levels of operation and maintenance and, therefore, have different costs associated with them. Parcels that contribute flow to a subsystem will be charged for the operation and maintenance of that subsystem. Because the entire Abalone Cove sewer system flows into the Palos Verdes Drive Pump Station and the 6 -inch force main and gravity system between the pump station and the LACSD outfall, all users of the system will be charged for the operation and maintenance of these facilities. The following describes each subsystem: ♦ Gravity Subsystem. Gravity systems are the most basic of sewer systems and require minimal routine maintenance. Parcels connected to the Gravity Subsystem would be responsible for sharing the costs associated with maintenance of the gravity system. All parcels within the service area contribute to this subsystem, as sewage flows contributed by each parcel are eventually discharged into the gravity subsystem. ♦ Force Main Subsystem. Force main subsystems include pump station and pressurized pipes in addition to gravity lines. Parcels connected to the Force Main Subsystem would be responsible for sharing the additional costs associated with the operation and maintenance of those components. The pump stations for these lines are located at Thyme Place, Sweetby East and Sweetby at Altimira Canyon. ♦ Low Pressure Subsystem. Low pressure subsystems include grinder pumps at each user connection to the system as well as low pressure pipes. Parcels connected to the Low Pressure Subsystem would be responsible for sharing the associated operation and maintenance costs of those components. A few parcels that are connected to the gravity subsystem or the force main subsystem require the use of a grinder pump to get their flow into the system. These parcels share in the cost of grinder pump maintenance and are considered to be a part of the low pressure subsystem. Rate Zones A system of zones was developed to identify the specific combination of subsystems used by each contributing parcel. These zones are as follows: Zone A - Gravity subsystem only Zone B - Gravity & Force Main subsystems Zone C - Gravity & Low Pressure subsystems Zone D - Gravity & Force Main & Low Pressure subsystems Inventory of Parcels Table 3 and Table 4, on the following page, were compiled from information obtained from the Los Angeles County Assessor's Roll, Assessor's Parcel Maps, and the City of Rancho Palos Verdes. Harris & Associates A-7 City of Rancho Palos Verdes May 18, 2017 Annual Report - Abalone Cove Sewer Service Charqe - Fiscal Year 2017-18 Paqe 6 Table 3 - Land Use Inventory Land use Description Parcels Bldg sf ERUs Single Family Home 110 37.82 123.00 Church 1 6,144.00 1.17 School/Nursery 1 2,301.00 1.77 Beach with 2 showers & 7 toilets 1 Low Pressure $94,000 3.88 Vacant 67 X 0.00 Total: 180 8,445.00 129.82 Table 4 - ERU Distribution by Rate Zone and Subsystem Zone ERU's A 30.00 B 35.00 C 37.82 D 27.00 Total: 129.82 Subsystem ERU's Gravity 129.82 Force Main 62.00 Low Pressure 64.82 Table 5 provides a summary of the annual Sewer User Charge rates for each of the Rate Zones. Table 5 - Summary of Annual Charge Rates per ERU Subsystem & Budget Zone A Zone B Zone C Zone D Rate $/ERU Gravity + Admin. $54,000 X X X X $415.96 Force Main $78,000 X X $1,258.06 Low Pressure $94,000 X X $1,450.17 Total 2017-18 User Charge without contribution ($ / ERU $415.96 $1,674.03 $1,866.13 $3,124.19 Contribution ($ / ERU) ($245.34) ($987.10) ($1,634.54) ($2,376.30) Total 2017-18 User Charge ($ / ERU) $170.62 $686.93 $231.59 $747.89 Total 2016-17 User Charge ($ / ERU) $166.13 $668.87 $225.50 $728.23 Total 2015-16 User Charge ($ / ERU) $165.73 $667.27 $224.96 $726.49 Total 2014-15 User Charge ($ / ERU) $165.56 $660.60 $224.74 $725.76 Total 2013-14 User Charge ($ / ERU) $163.92 $660.00 $222.51 $718.57 Table 6 provides the annual charge rates for Fiscal Year 2017-18 and shows the calculated maximum rates. The maximum rates, which may be levied for each ERU, shall be increased automatically by the annual increase in Consumer Price Index for all Urban Consumers (CPI) for the Los Angeles, Riverside, Orange County Areas, not to exceed seven percent (7%). Harris & Associates A-8 City of Rancho Palos Verdes May 18, 2017 Annual Report - Abalone Cove Sewer Service Charge - Fiscal Year 2017-18 Page 7 Table 6 - Summary of Abalone Cove Sewer Service Charge Rates Zone Fiscal Year 2016-17 Max. Rates Fiscal Year 2017-18 Max. Rates Fiscal Year 2017-18 Actual Rates A $166.13 / ERU $170.62 / ERU $170.62 / ERU B $668.87 / ERU $686.93 / ERU $686.93 / ERU C $225.50 / ERU $231.59 / ERU $231.59 / ERU D $728.23 / ERU $747.89 / ERU $747.89 / ERU CPI Increase = 2.70% Table 7 - Sample Calculations Land Use Rate Zone A Rate Zone B Rate Zone C Rate Zone D Fiscal Year 2017-18 Rate: $170.62 / ERU $686.93 / ERU $231.59 / ERU $747.89 / ERU Residential $170.62 / Dwelling $686.93 / Dwelling $231.59 / Dwelling $747.89 / Dwelling Church $32.42 / 1000 bldg sf $130.52 / 1000 bldg sf $44.00 / 1000 bldg sf $142.10 / 1000 bldg sf School/Nursery $131.38 / 1000 bldg sf $528.94 / 1000 bldg sf $178.32 / 1000 bldg sf $575.88 / 1000 bldg sf Beach with 2 showers & 7 toilets n/a n/a $898.57 / parcel n/a Vacant $0.00 / Lot $0.00 / Lot $0.00 / Lot $0.00 / Lot The Preliminary Sewer Charge Roll, which is a listing of each parcel within this sewer charge area and its proposed sewer charge for Fiscal Year 2017-18, is provided in the Appendix. Harris & Associates A-9 City of Rancho Palos Verdes May 18, 2017 Annual Report — Abalone Cove Sewer Service Charqe — Fiscal Year 2017-18 Paqe 8 Appendix Preliminary Sewer Service Charge Roll Harris & Associates A-10 City of Rancho Palos Verdes Annual Report - Abalone Cove Sewer Service Charge - Fiscal Year 2017-18 14 May 18, 2017 Page 9 Parcel Number Map Ref Rate Zone Land Use Preliminary Sewer Service Charge Roll Fiscal Year 2017-18 Bldg Proposed Parcel Map Rate Land Bldg Sq Ft ERU Char a Number Ref Zone Use Sq Ft ERU Fiscal Year 2017-18 Proposed Charge 7572009023 1 A SFR 1 $170.62 7572011023 50 D VAC 0 $0.00 7572009022 7572009021 2 3 A A VAC SFR 0 1 $0.00 $170.62 7572011022 7572011019 51 52 D D SFR SFR 1 1 $747.89 $747.89 7572009020 4 A SFR 1 $170.62 7572011018 53 D VAC 0 $0.00 7572009019 5 A SFR 1 $170.62 7572011015 54 D VAC 0 $0.00 7572009018 6 A VAC 0 $0.00 7572011014 55 D SFR 1 $747.89 7572009017 7 A SFR 1 $170.62 7572011011 56 D SFR 1 $747.89 7572009016 8 A SFR 1 $170.62 7572011010 57 D SFR 1 $747.89 7572009015 9 A VAC 0 $0.00 7572011007 58 D VAC 0 $0.00 7572009010 14 A SFR 1 $170.62 7572013018 7572017034 63 C SFR 1 $231.59 7572009009 15 A SFR 1 $170.62 $231.59 7572011005 64 B SFR 1 $686.93 7572009024 16 A SFR 1 $170.62 1 7572011008 65 B VAC 0 $0.00 7572009007 17 A VAC 0 $0.00 SFR 7572011009 66 B VAC 0 $0.00 7572009030 18 A VAC 0 $0.00 A 7572011012 67 B SFR 1 $686.93 7572009029 19 A VAC 0 $0.00 31 7572011013 68 B VAC 0 $0.00 7572010027 20 A SFR 1 $170.62 7572010025 7572011016 69 B SFR 1 $686.93 7572010014 21 A VAC 0 $0.00 7572013008 7572011017 70 B VAC 0 $0.00 7572010013 22 A VAC 0 $0.00 $0.00 7572011020 71 B SFR 1 $686.93 7572010015 26 A SFR 1 $170.62 7572013018 7572011028 75 B VAC 0 $0.00 7572002021 7572010016 27 C SFR 1 $231.59 88 7572011029 76 B SFR 1 $686.93 40 7572010017 28 C SFR 1 $231.59 B 7572011030 77 B SFR 1 $686.93 B 7572010018 29 C SFR 1 $231.59 SFR 7572011031 78 B SFR 1 $686.93 VAC 7572010019 30 A VAC 0 $0.00 1 7572013001 79 B SFR 1 $686.93 1 7572010026 31 A VAC 0 $0.00 $170.62 7572013004 80 B SFR 1 $686.93 $686.93 7572010025 32 A VAC 0 $0.00 7572013005 81 B SFR 1 $686.93 7572013008 7572010024 33 A VAC 0 $0.00 7572002020 7572013006 82 B VAC 0 $0.00 95 7572010009 38 B SFR 1 $686.93 7572013018 87 B SFR 1 $686.93 7572002021 39 D SFR 14 $10,470.46 7572013019 88 B SFR 1 $686.93 7572002030 40 B SFR 1 $686.93 7572013014 89 B SFR 1 $686.93 7572002027 41 B SFR 1 $686.93 7572013013 90 B SFR 1 $686.93 7572002029 43 B VAC 0 $0.00 7572013012 91 A SFR 1 $170.62 7572002024 44 B SFR 1 $686.93 7572013010 92 A SFR 1 $170.62 7572002025 45 B SFR 1 $686.93 7572013009 93 A VAC 0 $0.00 7572002026 46 B SFR 1 $686.93 7572013008 94 A VAC 0 $0.00 7572002020 47 B VAC 0 $0.00 7572013007 95 A VAC 0 $0.00 LANDUSELEGEND SFR = Residential VAC = Vacant SCH = School BCH = Beach CCH = Church EXE = Exempt (property not connected to sewer) RATE ZONE LEGEND A - Gravity only B - Gravity + Force Main C - Gravity + Low Pressure (grinder pumps) D - Gravity + Force Main + Low Pressure (grinder pumps) Harris & Associates A-11 City of Rancho Palos Verdes Annual Report - Abalone Cove Sewer Service Charqe - Fiscal Year 2017-18 May 18, 2017 Paqe 10 Parcel Number Map Ref Rate Zone Land Bldg Use Sq Ft ERU Fiscal Year 2017-18 Proposed Charge Parcel Number Map Ref Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2017-18 Proposed Charge 7572014012 98 A SFR 1 $170.62 7572017009 148 C SFR 1 $231.59 7572014013 99 A SFR 1 $170.62 7572017010 149 C SFR 1 $231.59 7572014014 100 A SFR 1 $170.62 7572017011 150 C SFR 1 $231.59 7572014015 101 A SFR 1 $170.62 7572017014 151 C VAC 0 $0.00 7572014016 102 A VAC 0 $0.00 7572017015 152 C SFR 1 $231.59 7572014017 103 C VAC 0 $0.00 7572017016 153 A SFR 1 $170.62 7572014018 104 C SFR 1 $231.59 7572017013 154 C SFR 1 $231.59 7572014019 105 C VAC 0 $0.00 7572017028 155 C SFR 1 $231.59 7572014020 106 C SFR 1 $231.59 7572017029 156 C SFR 1 $231.59 7572014021 107 C SFR 1 $231.59 7572015010 157 C VAC 0 $0.00 7572014022 108 B SFR 1 $686.93 7572015011 158 C SFR 1 $231.59 7572014023 109 B SFR 1 $686.93 7572015016 159 C VAC 0 $0.00 7572014024 110 B SFR 1 $686.93 7572015017 160 C VAC 0 $0.00 7572014025 111 C VAC 0 $0.00 7572015018 161 C VAC 0 $0.00 7572014026 112 C SFR 1 $231.59 7572015013 162 C SFR 1 $231.59 7572014027 113 C SFR 1 $231.59 7572015015 163 C VAC 0 $0.00 7572014028 114 C SFR 1 $231.59 7572015012 164 C SFR 1 $231.59 7572014029 115 A SFR 1 $170.62 7572015014 165 C VAC 0 $0.00 7572014030 116 A SFR 1 $170.62 7572019005 166 C SFR 1 $231.59 7572014031 117 A SFR 1 $170.62 7572018900 167 C SCH 2,301 1.77 $409.91 7572014032 118 A SFR 1 $170.62 7572018900 167 C BCH 3.88 $898.57 7572014033 119 A SFR 1 $170.62 7572012026 168 C CCH 6,144 1.17 $270.96 7572016011 120 B VAC 0 $0.00 7572012028 169 A VAC 0 $0.00 7572016013 121 B SFR 1 $686.93 7572012023 171 C SFR 1 $231.59 7572016012 122 B SFR 1 $686.93 7572012022 172 C SFR 1 $231.59 7572016010 123 B VAC 0 $0.00 7572012021 173 C VAC 0 $0.00 7572016022 124 D VAC 0 $0.00 7572012020 174 C SFR 1 $231.59 7572016014 125 B VAC 0 $0.00 7572012019 175 C VAC 0 $0.00 7572016021 126 D SFR 1 $747.89 7572012018 176 C SFR 1 $231.59 7572016015 127 D SFR 1 $747.89 7572012017 177 A SFR 1 $170.62 7572016016 128 D SFR 1 $747.89 7572012016 178 A SFR 1 $170.62 7572016027 129 D SFR 1 $747.89 7572016023 179 D SFR 1 $747.89 7572016018 130 D SFR 1 $747.89 7572016024 180 D VAC 0 $0.00 7572016026 131 C VAC 0 $0.00 7572001004 181 A VAC 0 $0.00 7572016002 132 C VAC 0 $0.00 7572017018 182 D SFR 1 $747.89 7572016003 7572016004 7572016005 7572016006 7572016007 7572016008 7572016009 7572016020 7572017001 7572017002 7572017003 7572017004 7572017005 7572017006 7572017007 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 C C C C C C C D C C C C C C C SFR SFR SFR VAC VAC VAC SFR VAC VAC EXE VAC VAC VAC SFR SFR 1 1 1 0 0 0 1 0 0 0 0 0 0 1 1 $231.59 $231.59 $231.59 $0.00 $0.00 $0.00 $231.59 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $231.59 $231.59 129.82 $58,112.91 LANDUSELEGEND SFR = Residential VAC = Vacant SCH = School BCH = Beach CCH = Church EXE = Exempt (property not connected to sewer) RATE ZONE LEGEND A - Gravity only B - Gravity + Force Main C - Gravity + Low Pressure (grinder pumps) D - Gravity + Force Main + Low Pressure (grinder pumps) Harris & Associates A-12 RESOLUTION NO. 2017- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A REPORT IN CONNECTION WITH THE SEWER SERVICE CHARGE ESTABLISHED PURSUANT TO CHAPTER 13.06 OF THE RANCHO PALOS VERDES MUNICIPAL CODE, DETERMINING THE AMOUNT OF SUCH CHARGE FOR FISCAL YEAR 2017-18, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS: Section 1. The City Council finds: A. Pursuant to Chapter 13.06 of the Rancho Palos Verdes Municipal Code and Ordinance No. 367U (the "Ordinance"), the City levies an annual sewer service charge (the "Charge") on each parcel of real property in the Abalone Cove Landslide Abatement District that is connected to the sanitary sewer system. The Charge is levied to finance the costs of on-going operation and maintenance of sewer facilities and services ("Sewer Services"). B. As authorized by Section 5473 of the California Health and Safety Code, the Charge is collected for each fiscal year on the County of Los Angeles tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, the general taxes of the City. C. A written report (the "Report") has been filed with the City Clerk, containing a description of each parcel of real property receiving Sewer Services and the amount of the Charge for each such parcel for Fiscal Year 2017-18 (commencing July 1, 2017, and ending June 30, 2018), computed in conformity with the Ordinance. Such Report is on file in the office of the City Clerk and incorporated herein by reference. D. The Report provides that the Charge for Fiscal Year 2017-18 be increased from the Charge for the prior Fiscal Year; but the charge does not exceed the maximum amount authorized pursuant to the Ordinance. E. The City Clerk caused notice of a hearing on the Report to be published in the Palos Verdes Peninsula News on June 8, 2017, and June 15, 2017. F. The City Council held a public hearing on the Report on June 20, 2017. At such hearing, the City Council heard and considered all objections and protests, if any, to the Report and all testimony regarding the proposed levy of the Charge for Fiscal Year 2017-18. Section 2. The City Council hereby overrules any and all objections to the Report; determines that no majority protest against the Report, determined in accordance with Health and Safety Code Section 5473.2, exists; approves and finally adopts the Report as filed; determines that the Charge for Fiscal Year 2017-18 against each parcel described in the Report shall be as described in the Report; and orders that the Charge shall be collected for Fiscal Year 2017-18 on the County of Los Angeles tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, the general taxes of the City. Section 3. The City Clerk is directed to file a copy of the Report, with a statement endorsed on the Report over the City Clerk's signature that the Report has been approved and finally adopted, with the City Treasurer on or before August 10, 2017, pursuant to Section 5 of the Ordinance. Section 4. The City Clerk is directed to file a copy of the Report, with a statement endorsed on the Report over the City Clerk's signature that the Report has been approved and finally adopted, with the County Auditor of the County of Los Angeles on or before August 10, 2017, pursuant to Section 6 of the Ordinance. Section 5. The City Clerk is authorized to take such other action as is required to implement this Resolution. PASSED, APPROVED AND ADOPTED this 20th day of June, 2017. Mayor ATTEST: City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, EMILY COLBORN, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2017-_ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 20, 2017. City Clerk -2- Attachment C Operation & Maintenance, City Contribution & Total Charge C-1 FY01 /02 & FY13/14 FY14/15 FY15/16 FY16/17 FY 17/18 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FY 11/12 Operation & Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Operation & $60,070 $96,380 $104,580 $137,780 $234,200 $226,000 Maintenance $56,595 $52,221 $52,221 $52,221 $52,221 $53,421 $57,348 $56,888 $82,487 $62,231 City $10,700 $40,050 $47,686 $80,829 $177,781 $167,887 Contribution $35,000 $17,500 $10,535 $10,000 $8,414 $8,699 $11,160 $10,700 $32,149 $8,190 Total Charge $21,595 $34,721 $41,686 $42,699 $43,807 $44,722 $46,188 $46,188 $50,338 $54,041 C-1 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY 17/18 Actual Actual Actual Actual Actual Proposed Operation & Maintenance $60,070 $96,380 $104,580 $137,780 $234,200 $226,000 City Contribution $10,700 $40,050 $47,686 $80,829 $177,781 $167,887 Total Charge $49,370 $56,330 $56,894 $56,591 $56,419 $58,113 C-1 Attachment D The proposed Charge varies by zone. The system of zones was developed to identify the specific combination of subsystems used by each contributing parcel. The zones with the highest charges, Zones B and D, are the zones with the highest per parcel cost for maintenance. For the ACLAD Sewer System, the in -street pump stations historically have the highest per parcel costs to maintain and therefore these properties have had the highest charges and subsidies. Previous projects which retrofitted two single-phase lift station pumps with three-phase pumps and the associated electrical control system reduced the cost of operating Zone D. However two lift stations still operate with single-phase pumps and the maintenance estimate for this Zone D still reflects anticipated maintenance. This year Zone C, which includes the low-pressure systems, is anticipated to have high maintenance costs until all the pumps have been fully purchased and replaced. The low-pressure pumps are reaching the end of their useful life and need replacing. Following replacement of pumps, Public Works anticipates putting in place a low-pressure pump program to help lower the cost of repairing and replacing the low-pressure pumps which should result in a cost savings over previous years. The cost of other maintenance associated with the low-pressure systems is expected to remain constant over the next year; however the condition of the low-pressure galvanized piping is currently being evaluated. The results of the evaluation will reveal whether the galvanized piping will require replacement, resulting in a need for a higher subsidy for this Zone. Parcel Charges by Zone: D-1 FY 01/02 FY 02/03 Actual FY 03/04 Actual FY 04/05 Actual FY 05/06 Actual FY 06/07 Actual FY 07/08 Actual FY 08/09 Actual FY 09/10 Actual FY 10/11 Actual FY 11/12 Actual City Contribution ($35,000) ($17,500) ($10,540) ($9,522) ($8,414) ($8,699) ($11,160) ($10,700) ($32,149) ($8,190) Zone A $ 119.07 $ 127.13 $ 129.46 $ 134.64 $ 140.97 $ 146.33 $ 151.16 $ 151.16 $ 154.03 $ 158.65 Zone B $ 209.15 $ 372.84 $ 454.20 $ 454.21 $ 454.21 $ 454.21 $ 461.35 $ 461.35 $ 561.01 $ 638.75 Zone C $ 129.71 $ 172.57 $ 175.73 $ 182.76 $ 191.35 $ 198.62 $ 205.17 $ 205.17 $ 209.07 $ 215.34 Zone D $ 219.79 $ 418.28 $ 567.50 $ 590.20 $ 617.94 $ 631.62 $ 662.59 $ 662.59 $ 675.18 $ 695.44 D-1 FY 12/13 Actual FY 13/14 Actual FY 14/15 Actual FY 15/16 Actual FY 16/17 Actual FY 17/18 Proposed City Contribution ($10,700) ($40,050) ($60,386) ($47,686) ($177,112) ($167,887) Zone A $ 161.82 $ 163.92 $ 165.56 $165.73 $166.13 $170.62 Zone B $ 491.76 $ 660.00 $ 666.60 $667.27 $668.87 $686.93 Zone C $ 219.65 $ 222.51 $ 224.74 $224.96 $225.50 $231.59 Zone D $ 709.35 $ 718.57 $ 725.76 $726.49 $728.23 $747.89 D-1 ACLAD Sewer System Work Plan 2017/18 During FY 2017/18 the following maintenance work is anticipated to the ACLAD Sewer System: Lift Station pump replacement, maintenance and repairs, Grinder pump maintenance and repairs, Purchasing and installing new grinder pumps, Sewer Mainline cleaning and television inspection, Installation of flow meter at PVDS lift station, Installation of a supervisory control and data acquisition system (SCADA) for lift stations Low -Pressure flexible line replacement, Galvanized low pressure line replacement. Attachment E E-1