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CC SR 20190716 02 - Ab Cove Sewer Charge PUBLIC HEARING Date: July 16, 2019 Subject: Consideration and possible action to adopt an adjustment to the existing annual sewer service charge for the Abalone Cove Sewer System Recommendation: 1) Conduct the public hearing on the proposed levy of the annual Fiscal Year 2019-20 sewer service charge for the Abalone Cove Sewer System; and 2) Adopt Resolution No. 2019-__, 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. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Duhovic 3. Request for Staff Report: Mayor Duhovic 4. Staff Report & Recommendation: Ron Dragoo, City Engineer 5. Council Questions of Staff (factual and without bias): 6. Testimony from members of the public: The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Duhovic 8. Council Deliberation: The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter. 9. Council Action: The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional testimony; continue the matter to a later date for a decision. RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 07/16/2019 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 Abalone Cove Sewer System RECOMMENDED COUNCIL ACTION: (1) Conduct the public hearing on the proposed levy of the annual F iscal Year 2019- 20 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2019-__, 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 FY 19-20 is $53,583.66, and the amount of the subsidy from the City to fully fund the maintenance program is $89,917.21. Amount Budgeted: $149,000 Additional Appropriation: N/A Account Number(s): 225-400-0000-5201 (Abalone Cove Sewer Maintenance- Maintenance Srvs) ORIGINATED BY: Ron Dragoo, PE, Principal Engineer REVIEWED BY: Elias Sassoon, PE, Director of Public Works APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Annual Report – Abalone Cove Sewer Service Charge (page A-1) B. Resolution No. 2019-____ (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, an annual escalator: 1 “by an amount equal to the annual increase in the Consumer Price Index for all Urban Consumers for the Los Angeles-Riverside-Orange County areas (the CPI), including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year, not to exceed a maximum increase of seven (7%) percent per year” for inflationary adjustments was also approved after a noticed public hearing. However, this CPI for Los Angeles-Riverside-Orange County Areas has been discontinued. The notice and protest procedures under Proposition 218 will need to be followed and the Rancho Palos Verdes Municipal Code section 13.06.030 will need to be modified to allow for CPI increases to be applied to the maintenance charge. Accordingly, the CPI for this fiscal year has been determined to be zero. Since inception, the annual revenue from the Charge has ranged from $21,595 (FY 01- 02 and FY 02-03) to $58,113 for FY 17-18. 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 FY 19-20 is $89,917.21. BACKGROUND AND DISCUSSION: To ensure funding for the ongoing operation and maintenance of sewer facilities in the Abalone Cove area, the City Council established the 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 FY 19-20 Engineer’s Report (Attachment A), any fund balances or shortages, and adjusts the rates accordingly. To levy the Charge for FY 19-20, 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 FY 19-20 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 FY 19-20 is $143,500, which is lower than the actual amount for FY 18-19. The decrease, which is within the constraints of Ordinance No. 367U, represents the estimated on-going system maintenance requirements (Attachment E). The historical 2 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 has budgeted funds for FY 19-20 to accommodate a subsidy. Based upon the FY 19-20 Engineer’s Report (Attachment A), the anticipated maintenance needs require a subsidy of $89,917.21. The report groups parcels into various rate zones based on the specific combination of sewer subsystems used by each parcel. This year, the charge was adjusted to reflect the addition of four single-family residential units that were provided certificates of occupancy during the past year. The actual usage of these parcels included one Zone B connection and three Zone A connections. The increase to the system resulted in a $619 increase to the Charge. The proposed FY 18-19 charge for a single-family parcel ranges from $176.76 to $747.81. A description of the proposed Charge by zone showing the historic and proposed FY 19-20 charges is shown in Attachment D. The ordinance establishing the Charge also established the maximum service charge that can be levied, which has been adjusted each year based on the estimated cost of maintenance and changes in the Consumer Price Index (CPI). The charge is determined based on the Equivalent Rate Unit (ERU) method. As previously mentioned, the CPI for Los Angeles-Riverside-Orange County Areas has been discontinued. Accordingly, the CPI for this Fiscal Year has been determined to be zero. The maximum service charges by zone for FY 19-20 are as follows: FY 18-19 Proposed Proposed Max. Rates Increase/Zone FY 19-20 Rate Zone A $176.76/ERU $ 0.00 $176.76/ERU Zone B $711.66/ERU -$16.85 $694.81/ERU Zone C $239.93/ERU $ 0.00 $239.93/ERU Zone D $747.81/ERU $ 0.00 $747.81/ERU The City Council has directed Staff to develop a procedure to reduce the City subsidy to zero. Funding and financing alternatives which could reduce the subsidy will be brought forward at a future City Council in the next few months. Funding for this year’s upgrade program for the Abalone Cove Sewer System has been approved through the regular budget process for FY 19-20. 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: 3 In addition to the Staff recommendations, the following alternative actions are available for the City Council’s consideration: 1. Reduce, eliminate or increase the Charge: The proposed FY 19-20 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 the notice and protest procedures in compliance with Proposition 218. 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 maintain the subsidy or be subject to regulatory fines in the event of system failures if the Charge was reduced or eliminated. 2. Discuss and take other actions as appropriate 4 Annual Report for Abalone Cove Sewer Service Charge Fiscal Year 2019-20 prepared for the City of Rancho Palos Verdes Los Angeles County, California June 11, 2019 A-1A-1 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 TABLE OF CONTENTS Certificates .........................................................Pg. 1 Introduction .......................................................Pg. 2 Cost Estimates....................................................Pg. 3 Annual Charge Rate Calculations ......................Pg. 4 APPENDIX Preliminary Sewer Charge Roll A-2 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 Page | 1 Fiscal Year 2019-20 Annual Report City of Rancho Palos Verdes Abalone Cove Sewer Service Charge The undersigned respectfully submits the enclosed report. DATED: June 11, 2019 _________________________ BY: Jeffrey M. Cooper I HEREBY CERTIFY that the enclosed Engineer's Report, was filed with me on the day of _, 2019. Emily Colborn, City Clerk, City of Rancho Palos Verdes Los Angeles County, California By 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 _, 2019. Emily Colborn, City Clerk, City of Rancho Palos Verdes Los Angeles County, California By A-3 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 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. A-4 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 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 Service main Line Cleaning $17,000.00 Install Flow Meter at PVDS MH $12,000.00 $29,000.00 FORCE MAIN SUBSYSTEM Annual Maintenance $20,000.00 Emergency Repairs - $20,000.00 LOW PRESSURE SYSTEM Annual Maintenance $16,000.00 Emergency Repairs $20,000.00 Pump Maintenance $22,000.00 Pump Replacement $25,000.00 $83,000.00 Subtotal= $132,000.00 ADMINISTRATIVE COSTS Salaries $10,300.00 Edison $3,600.00 County Charge for Collections $500.00 Professional Technical (Engineer's Report) $5,500.00 Fund Balance (as of June 30) -$8,400.00 Subtotal= $11,500.00 Total Maintenance/Operation Cost= $143,500.00 Zone A City Contribution= ($5,665.05) Zone B City Contribution= ($0.00) Zone C City Contribution= ($62,948.36) Zone D City Contribution= ($21,303.80) Total City Contribution= ($89,917.21) Total Annual Charge to Levy = $53,583.66 *Note: A difference of $0.87 is due to rounding. A-5 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 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 (GDP) ERU Calc. Single Family Home 260 / home 1 / home Church 50 / 1000 bldg 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. A-6 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 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. A-7 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 Page | 6 Table 3 – Land Use Inventory Land use Description Parcels Bldg sf ERUs Single Family Home 115 127 Church 1 6,144 1.17 School/Nursery 1 2,301 1.77 Beach with 2 showers & 7 toilets 1 3.88 Vacant 62 0 Total: 180 8,445 133.82 Table 4 – ERU Distribution by Rate Zone and Subsystem Total: 133.82 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 Zone Zone Zone Rate A B C D $/ERU Gravity + Admin. $40,500.00 X X X X $302.65 Force Main $20,000.00 X X $392.16 Low Pressure $83,000.00 X X $1,601.70 Total 2019-20 User Charge without contribution ($/ERU) $302.65 $694.81 $1,904.35 $2,296.51 Contribution ($/ERU) $125.89 $0.00 $1,664.42 $1,521.70 Total 2019-20 User Charge ($/ERU) $176.76 $694.81 $239.93 $774.81 Total 2018-19 User Charge ($/ERU) $176.76 $711.66 $239.93 $774.81 Total 2017-18 User Charge ($/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 Table 6 provides the annual charge rates for Fiscal Year 2019-20 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%). However, the CPI for Los Angeles, Riverside, Orange County Areas has been discontinued. Accordingly, the CPI for this Fiscal Year has been determined to be zero (0%). Zone ERU's A 45 B 37 C 37.82 D 14 Subsystem ERU's Gravity 133.82 Force Main 51 Low Pressure 51.82 A-8 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 Page | 7 Table 6 – Summary of Abalone Cove Sewer Service Charge Rates Fiscal Year 2018-19 Fiscal Year 2019-20 Fiscal Year 2019-20 Zone Max. Rates Max. Rates Actual Rates A $176.76 / ERU $176.76 / ERU $176.76 / ERU B $711.66 / ERU $694.81 / ERU $694.81/ ERU C $239.93 / ERU $239.93 / ERU $239.93 / ERU D $774.81 / ERU $774.81 / ERU $774.81 / ERU CPI Increase = 0.0% Table 7 – Sample Calculations Land Use Rate Zone A Rate Zone B Rate Zone C Rate Zone D Fiscal Year 2019-20 Rate: $176.76/ERU $694.81/ERU $239.93/ERU $774.81/ERU Residential $176.76/Dwelling $694.81/Dwelling $239.93/Dwelling $774.81/Dwelling Church n/a n/a $239.93/ERU n/a School/Nursery n/a n/a $239.93/ERU n/a Beach with 2 showers & 7 toilets n/a n/a $930.93 / 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 2019-20, is provided in the Appendix. A-9 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 Appendix Preliminary Sewer Service Charge Roll A-10 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 Preliminary Sewer Service Charge Roll Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2019-20 Proposed Charge Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2019-20 Proposed Charge 7572001005 A VAC 0 $0.00 7572010025 A SFR 1 $176.76 7572002017 B SFR 1 $694.81 7572010026 A SFR 1 $176.76 7572002018 B SFR 1 $694.81 7572010027 A SFR 1 $176.76 7572002019 B SFR 1 $694.81 7572011005 B SFR 1 $694.81 7572002020 B VAC 0 $0.00 7572011006 D SFR 1 $774.81 7572002021 A APT 12 $2,121.12 7572011007 D VAC 0 $0.00 7572002021 D APT 1 $774.81 7572011008 B SFR 1 $694.81 7572002024 B SFR 1 $694.81 7572011009 B VAC 0 $0.00 7572002025 B SFR 1 $694.81 7572011010 D SFR 1 $774.81 7572002026 B SFR 1 $694.81 7572011011 D SFR 1 $774.81 7572002027 B SFR 1 $694.81 7572011012 B SFR 1 $694.81 7572002029 B VAC 0 $0.00 7572011013 B VAC 0 $0.00 7572002030 B SFR 1 $694.81 7572011014 D SFR 1 $774.81 7572009007 A SFR 1 $176.76 7572011015 D VAC 0 $0.00 7572009009 A SFR 1 $176.76 7572011016 B SFR 1 $694.81 7572009010 A SFR 1 $176.76 7572011017 B VAC 0 $0.00 7572009011 A VAC 0 $0.00 7572011018 D VAC 0 $0.00 7572009012 A SFR 1 $176.76 7572011019 D SFR 1 $774.81 7572009013 A SFR 1 $176.76 7572011020 B SFR 1 $694.81 7572009014 A VAC 0 $0.00 7572011021 B SFR 1 $694.81 7572009015 A VAC 0 $0.00 7572011022 D SFR 1 $774.81 7572009016 A SFR 1 $176.76 7572011023 D VAC 0 $0.00 7572009017 A SFR 1 $176.76 7572011024 B SFR 1 $694.81 7572009018 A VAC 0 $0.00 7572011025 B SFR 1 $694.81 7572009019 A SFR 1 $176.76 7572011026 B SFR 1 $694.81 7572009020 A SFR 1 $176.76 7572011027 B SFR 1 $694.81 7572009021 A SFR 1 $176.76 7572011028 B VAC 0 $0.00 7572009022 A VAC 0 $0.00 7572011029 B SFR 1 $694.81 7572009023 A SFR 1 $176.76 7572011030 B SFR 1 $694.81 7572009024 A SFR 1 $176.76 7572011031 B SFR 1 $694.81 7572009029 A VAC 0 $0.00 7572012016 A REC 1 $176.76 7572009030 A VAC 0 $0.00 7572012017 A SFR 1 $176.76 7572010009 B SFR 1 $694.81 7572012018 C SFR 1 $239.93 7572010010 A VAC 0 $0.00 7572012019 C VAC 0 $0.00 7572010011 A SFR 1 $176.76 7572012020 C SFR 1 $239.93 7572010012 A VAC 0 $0.00 7572012021 C VAC 0 $0.00 7572010013 A VAC 0 $0.00 7572012022 C SFR 1 $239.93 7572010014 A VAC 0 $0.00 7572012023 C SFR 1 $239.93 7572010015 A SFR 1 $176.76 7572012026 C CCH 6,144 1.17 $280.72 7572010016 C SFR 1 $239.93 7572012028 A VAC 0 $0.00 7572010017 C SFR 1 $239.93 7572013001 B SFR 1 $694.81 7572010018 C SFR 1 $239.93 7572013002 A VAC 0 $0.00 7572010019 A VAC 0 $0.00 7572013003 A VAC 0 $0.00 7572010020 A SFR 1 $176.76 7572013004 B SFR 1 $694.81 7572010021 A VAC 0 $0.00 7572013005 B SFR 1 $694.81 7572010022 A SFR 1 $176.76 7572013006 B VAC 0 $0.00 7572010023 A VAC 0 $0.00 7572013007 A VAC 0 $0.00 7572010024 A VAC 0 $0.00 7572013008 A VAC 0 $0.00 A-11 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2019-20 June 11, 2019 Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2019-20 Proposed Charge Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2019-20 Proposed Charge 7572013009 A VAC 0 $0.00 7572016008 C VAC 0 $0.00 7572013010 A SFR 1 $176.76 7572016009 C SFR 1 $239.93 7572013011 B SFR 1 $694.81 7572016010 B VAC 0 $0.00 7572013012 A SFR 1 $176.76 7572016011 B VAC 0 $0.00 7572013013 B SFR 1 $694.81 7572016012 B SFR 1 $694.81 7572013014 B SFR 1 $694.81 7572016013 B SFR 1 $694.81 7572013015 B SFR 1 $694.81 7572016014 B VAC 0 $0.00 7572013016 B SFR 1 $694.81 7572016015 D SFR 1 $774.81 7572013017 B VAC 0 $0.00 7572016016 D SFR 1 $774.81 7572013018 B SFR 1 $694.81 7572016018 D SFR 1 $774.81 7572013019 B SFR 1 $694.81 7572016020 D VAC 0 $0.00 7572014012 A SFR 1 $176.76 7572016021 D SFR 1 $774.81 7572014013 A SFR 1 $176.76 7572016022 D VAC 0 $0.00 7572014014 A SFR 1 $176.76 7572016023 D SFR 1 $774.81 7572014015 A SFR 1 $176.76 7572016024 D VAC 0 $0.00 7572014016 A VAC 0 $0.00 7572016026 C VAC 0 $0.00 7572014017 C VAC 0 $0.00 7572016027 D SFR 1 $774.81 7572014018 C SFR 1 $239.93 7572017001 C VAC 0 $0.00 7572014019 C VAC 0 $0.00 7572017002 C EXE 0 $0.00 7572014020 C SFR 1 $239.93 7572017003 C VAC 0 $0.00 7572014021 C SFR 1 $239.93 7572017004 C VAC 0 $0.00 7572014022 B SFR 1 $694.81 7572017005 C VAC 0 $0.00 7572014023 B SFR 1 $694.81 7572017006 C SFR 1 $239.93 7572014024 B SFR 1 $694.81 7572017007 C SFR 1 $239.93 7572014025 C VAC 0 $0.00 7572017009 C SFR 1 $239.93 7572014026 C SFR 1 $239.93 7572017010 C SFR 1 $239.93 7572014027 C SFR 1 $239.93 7572017011 C SFR 1 $239.93 7572014028 C SFR 1 $239.93 7572017013 C SFR 1 $239.93 7572014029 A SFR 1 $176.76 7572017014 C VAC 0 $0.00 7572014030 A SFR 1 $176.76 7572017015 C SFR 1 $239.93 7572014031 A SFR 1 $176.76 7572017016 A SFR 1 $176.76 7572014032 A SFR 1 $176.76 7572017018 D SFR 1 $774.81 7572014033 A SFR 1 $176.76 7572017028 C SFR 1 $239.93 7572015010 C VAC 0 $0.00 7572017029 C SFR 1 $239.93 7572015011 C SFR 1 $239.93 7572017034 C SFR 1 $239.93 7572015012 C SFR 1 $239.93 7572018900 C SCH 2,301 1.77 $424.68 7572015013 C SFR 1 $239.93 7572018900 C BCH 3.88 $930.93 7572015014 C VAC 0 $0.00 7572019005 C SFR 1 $239.93 7572015015 C VAC 0 $0.00 133.82 $53,583.66 7572015016 C VAC 0 $0.00 LANDUSE LEGEND RATE ZONE LEGEND 7572015017 C VAC 0 $0.00 SFR = Residential A - Gravity only 7572015018 C VAC 0 $0.00 VAC = Vacant B - Gravity + Force Main 7572016002 C VAC 0 $0.00 REC = Recreational C - Gravity + Low Pressure 7572016003 C SFR 1 $239.93 SCH = School D - Gravity + Force Main 7572016004 C SFR 1 $239.93 BCH = Beach + Low Pressure 7572016005 C SFR 1 $239.93 CCH = Church 7572016006 C VAC 0 $0.00 EXE = Exempt (not connected to sewer) 7572016007 C VAC 0 $0.00 A-12 RESOLUTION NO. 2019-__ 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 2019-20, 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 ongoing 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 th e 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 201 9-20 (commencing July 1, 2019, and ending June 30, 2020), 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 2019-20 not be increased from the Charge for the prior Fiscal Year; but the charge does not exceed t he 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 27, 2019, and July 5, 2019. F. The City Council held a public hearing on the Report on July 16, 2019. 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 2019-20. 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 2019-20 against B-1 -2- each parcel described in the Report shall be as described in the Report; and orders that the Charge shall be collected for Fiscal Year 2019-20 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, 2019, 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, 2019, 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 16th day of July, 2019. _____________________________ 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. 2019-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on July 16, 2019. ______________________________ City Clerk B-2 Attachment C Operation & Maintenance, City Contribution & Total Charge FY 01-02 & FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Operation & Maintenance $56,595 $52,221 $52,221 $52,221 $52,221 $53,421 $57,348 $56,888 $82,487 $62,231 City 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 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 Actual Actual Actual Actual Actual Actual Actual Proposed Operation & Maintenance $60,070 $96,380 $104,580 $137,780 $234,200 $226,000 $205,100 $143,500 City Contribution $10,700 $40,050 $47,686 $80,829 $177,781 $167,887 $152,135 $89,917 Total Charge $49,370 $56,330 $56,894 $56,591 $56,419 $58,113 $52,965 $53,584 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 f or 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 reflect s 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 implementing 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: 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 FY 12-13 Actual FY 13-14 Actual FY 14-15 Actual FY 15-16 Actual FY 16-17 Actual FY 17-18 Actual FY 18-19 Actual FY 19-20 Proposed City Contribution ($10,700) ($40,050) ($60,386) ($47,686) ($177,112) ($167,887) ($152,135) ($89,917.21) Zone A $ 161.82 $ 163.92 $ 165.56 $165.73 $166.13 $170.62 $176.76 $176.76 Zone B $ 491.76 $ 660.00 $ 666.60 $667.27 $668.87 $686.93 $711.66 $711.66 Zone C $ 219.65 $ 222.51 $ 224.74 $224.96 $225.50 $231.59 $239.93 $239.93 Zone D $ 709.35 $ 718.57 $ 725.76 $726.49 $728.23 $747.89 $747.81 $747.81 D-1 Attachment E Abalone Cove Landslide Abatement District Sewer System Work Plan Fiscal Year 2019-20 During FY 19-20, 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 a flow meter at Palos Verdes Drive South lift station Force main pump replacements Installation of a supervisory control and data acquisition system (SCADA) for lift stations E-1