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CC SR 20210720 03 - Ab Cove Sewer Charge PUBLIC HEARING Date: July 20, 2021 Subject: Consideration and possible action to adjust the existing annual sewer service charge for Fiscal Year 2021-22 for the Abalone Cove Sewer System. Recommendation: (1) Conduct a public hearing on the proposed levy of the annual FY 2021-22 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2021-__, 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 FY 2021-22, and ordering that such charge be collected on the tax roll. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Alegria 3. Request for Staff Report: Mayor Alegria 4. Staff Report & Recommendation: Ron Dragoo, Principal 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 spea kers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Alegria 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. CITY COUNCIL MEETING DATE: 07/20/2021 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to adjust the existing annual sewer service charge for Fiscal Year 2021-22 for the Abalone Cove Sewer System. RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on the proposed levy of the annual FY 2021-22 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2021-__, 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 FY 2021-22, and ordering that such charge be collected on the tax roll. FISCAL IMPACT: The expenditures budgeted for FY 2021-22 is $157,500; of which approximately $50,000 will be collected from users of the Abalone Cove Sewer System through tax rolls, and the remaining balance of $107,500 will come from the Abalone Cove Sewer fund balance. Amount Budgeted: $157,500 Additional Appropriation: N/A Account Number(s): 225-400-0000-XXXX (Abalone Cove Sewer Fund – various accounts) ORIGINATED BY: Ron Dragoo, Principal Engineer, Public Works REVIEWED BY: Ramzi Awwad, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2021-____ (page A-1) B. Annual Engineer’s Report – Abalone Cove Sewer Service Charge (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) 1 BACKGROUND: The Abalone Cove Sewer Service Charge has been in existence since July 2001 to provide funding for the ongoing operation and maintenance of sewer facilities in the Abalone Cove area. The charge was enacted pursuant to Ordinance No. 367U on August 7, 2001, in compliance with the procedures set forth under Proposition 218 , to ensure a fair and equitable levying of the necessary projected 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 the maintenance costs identified in an engineer’s report, any fund balances, or shortages, and adjusts the rates accordingly. Since its inception, the annual revenue from the charge has ranged from $21,595 (FY 2001-02 and FY 2002-03) to $53,647 (FY 2020-21). Each parcel is charged pursuant to the specific subsystem of the overall sanitary sewer system used by that parcel as established in the Council-adopted ordinance. At the inception of the charge, the then-City Council agreed to subsidize the cost of maintaining the system to reduce the charges to property owners for FY 2001-02 only, and to review the subsidy each year thereafter, during the budget process to determine if it should be discontinued, reduced or otherwise altered as deemed appropriate by the City Council. To date, the City’s subsidy has continued. DISCUSSION: An annual engineer’s report (Attachment B) determines the assessment for each parcel using the following procedure: 1) The amount of sewage flow generated by a parcel is calculated using a standard formula from the Los Angeles County Sanitation Districts. 2) The components of the Abalone Cove Sanitary Sewer System used by that parcel are identified. This is necessary because the sewer system is comprised of sub- systems with different operating and maintenance needs (ranging from gravity pipes only to pump stations and pressurized pipes). Some parcels use multiple sub-systems, so each parcel is assigned to one of four zones based on the combination of sub-systems used. The zones are as follows: a. Zone A – Gravity subsystem b. Zone B – Gravity and force main subsystem c. Zone C – Gravity and low pressure subsystem d. Zone D – Gravity and force main and low pressure subsystem 3) The cost to maintain and operate the sewer system in each zone is calculated by estimating maintenance and repairs needed for the upcoming fiscal year. The City’s practice has been to not include capital projects or asset management of the sewer system (i.e. annualized life-cycle component replacement and repair). 4) The proportional cost for each parcel is determined by applying the fraction of flow generated by that parcel to the overall cost to maintain and operate the zone to which that parcel belongs. 2 The procedure outlined above assures that the levy assessed to each parcel is commensurate with that parcel’s system use; and therefore, operating and maintenance costs. Since its inception, the charge has been less than the amount needed to operate and maintain the sewer system. The City has subsidized the operation and maintenance of the sewer system through the General Fund and this is budgeted to continue in FY 2021- 22. Additionally, pursuant to Ordinance No. 367U and subsequently Ordinance No. 368, the annual increase in the charge has been no greater than the annual increase in the U.S. Bureau of Labor Statistics’ Consumer Price Index for all Urban Consumers for the Los Angeles-Anaheim-Riverside Area (CPI), as of March 1 of each year; not to exceed a maximum increase of 7% percent per year. The March 1 CPI for FY 2020-21 is 2.2%. The annual engineer’s report for FY 2021-22 shows that the total operating and maintenance cost for the sewer system is estimated to be $152,400. The proposed total annual charge is $55,253.24, which is approximately 36% of the total estimated operating and maintenance cost for FY 2021-22. The remaining approximately 64%, or $97,146 will be subsidized by the General Fund. The FY 2021-22 estimated operating and maintenance cost is an increase of approximately $19,000, or 14%, from FY 2020-21. The increase is generally attributed to higher labor and material costs, as well as an increased need for maintenance and repairs as the system ages. The proposed charge is an increase of 2.91% from the prior fiscal year. The increase is greater than 2.2% because a parcel was developed and added to the sewer system, which will add that parcel’s contribution. The charge for a single-family parcel ranges from $180.65 to $791.86, depending on the zone in which the parcel is located. This represents an increase of $3.89 to $17.05 from FY 2020 -21, depending on the zone. A public hearing is required to levy the charge pursuant to Ordinance No . 368. The City has historically collected the charge through the Los Angeles County tax rolls. A public hearing is required, pursuant to Health and Safety Code Section 5473, to collect the charge on the county tax roll. To that end, the City Council annually adopts a resolution approving the report, levying the charge, and ordering collection of the charge on the tax rolls (Attachment A). 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. 368) but will have to provide an alternative method of collection at a subsequent meeting. ADDITIONAL INFORMATION: Public Notification On June 24 and July 1, 2021, the City published the official notification for tonight’s meeting in the Palos Verdes Peninsula News. The notification advertised that a public hearing would be conducted on July 20 at Fred Hesse Community Park 29301 Hawthorne 3 Blvd. An additional public notice of tonight’s meeting was sent to property owners served by the Abalone Cove Sewer System by U.S. Mail on July 7, 2021. City Council Goal Pursuant to City Council Goal No. 7b, the City Council has directed Staff to develop a proposal to reduce the City subsidy of the sewer system. To accomplish this, a more accurate picture of operating and maintenance costs needs to be developed because the current year-by-year approach can have very high variation as the needs for one year may be vastly different from another; particularly if major rehabilitation is needed in a given year. Therefore, staff has hired a consultant to review the condition of sewer system components and provide an opinion of their lifetime operating, maintenance, repair, and rehabilitation costs based on current the condition and anticipated useful life. The consultant will also identify any deficiencies in the design or construction of the sewer system that may cause higher operating or maintenance costs. This information will provide the City Council with a comprehensive picture of the cost to correct any deficiencies, and the estimated average annual cost to operate and maintain the sewer system. Staff anticipates presenting this information to the City Council in the fall of 2021. ALTERNATIVES: In addition to the Staff recommendation s, the following alternative action is available for the City Council’s consideration: 1. Reduce, eliminate or increase the charge. The proposed FY 2021-22 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 continue to fund the estimated operations and maintenance to minimize the likelihood of system failures and avoid regulatory fines in the event of system failures. 4 RESOLUTION NO. 2021-__ 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 2021-22, 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 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 2021-22 (commencing July 1, 2021, and ending June 30, 2022) including an increase of 2.2% based on the March 2021 CPI for the Los Angeles-Anaheim-Riverside Area, 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 2021-22 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 24, 2021, and July 1, 2021. F. The City Council held a public hearing on the Report on July 20, 2021. 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 2021-22. Section 2. The City Council hereby overrules any and all objections to the Report; determines that no majority protest against the Report, determined in A-1 -2- accordance with Health and Safety Code Section 5473.2, e xists; approves and finally adopts the Report as filed; determines that the Charge for Fiscal Year 2021-22 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 2021-22 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, 2021, 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, 2021, 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 July, 2021. _____________________________ Mayor ATTEST: _________________________ City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, TERESA TAKAOKA, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2021-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on July 20, 2021. ______________________________ City Clerk A-2 ANNUAL REPORT Abalone Cove Sewer Service Charge Fiscal Year 2021-22 Prepared for the City of Rancho Palos Verdes Los Angeles County, California June 17, 2021 B-1 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 Page | 2 TABLE OF CONTENTS Certificates .........................................................Pg. 1 Introduction .......................................................Pg. 2 Cost Estimates....................................................Pg. 3 Annual Charge Rate Calculations ......................Pg. 4 APPENDIX Preliminary Sewer Charge Roll B-2 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 Page | 1 Fiscal Year 2021-22 Annual Report City of Rancho Palos Verdes Abalone Cove Sewer Service Charge The undersigned respectfully submits the enclosed report. DATED: June 17, 2021 _________________________ BY: Jeffrey M. Cooper, P.E. I HEREBY CERTIFY that the enclosed Engineer's Report, was filed with me on the day of _, 2021. Teresa Takaoka, 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 _, 2021. Teresa Takaoka, City Clerk, City of Rancho Palos Verdes Los Angeles County, California By B-3 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 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. B-4 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 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 $19,000.00 Install Flow Meter at PVDS MH $7,500.00 $26,500.00 FORCE MAIN SUBSYSTEM Annual Maintenance $17,000.00 Pump Replacement $9,000.00 Emergency Repairs $5,000.00 $31,000.00 LOW PRESSURE SYSTEM Emergency Repairs $30,000.00 Pump Maintenance $30,000.00 Pump Replacement $25,000.00 $85,000.00 Subtotal= $142,500.00 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) ($10,000.00) Subtotal= $9,900.00 Total Maintenance/Operation Cost= $152,400.00 Zone A City Contribution= ($3,930.81) Zone B City Contribution= ($6,132.53) Zone C City Contribution= ($63,796.88) Zone D City Contribution= ($23,286.54) Total City Contribution= ($97,146.76) Total Annual Charge to Levy = $55,253.24 *Note: A difference of $0.32 is due to rounding. B-5 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 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. B-6 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 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. B-7 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 Page | 6 Table 3 – Land Use Inventory Land use Description Parcels Bldg sf ERUs Single Family Home 117 129 Church 1 6,144 1.17 School/Nursery 1 2,301 1.77 Beach with 2 showers & 7 toilets 1 3.88 Vacant 60 0 Total: 180 8,445 135.82 Table 4 – ERU Distribution by Rate Zone and Subsystem Total: 135.82 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. $36,400.00 X X X X $268.00 Force Main $31,000.00 X X $607.84 Low Pressure $85,000.00 X X $1,579.34 Total 2021-22 User Charge without contribution ($/ERU) $268.00 $875.84 $1,847.34 $2,455.18 Contribution ($/ERU) $87.35 $165.74 $1,602.13 $1,663.32 Total 2021-22 User Charge ($/ESU) $180.65 $710.10 $245.21 $791.86 Total 2020-21 User Charge ($/ESU) $176.76 $694.81 $239.93 $774.81 Total 2019-20 User Charge ($/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 2021-22 and shows the calculated maximum rates. The maximum rates, which may be levied for each ERU, may be increased automatically by the annual increase in Consumer Price Index, as described in the City’s Code 13.06.030. Accordingly, the CPI for this Fiscal Year has been determined to be 2.2%. Zone ERU's A 45 B 37 C 39.82 D 14 Subsystem ERU's Gravity 135.82 Force Main 51 Low Pressure 53.82 B-8 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 Page | 7 Table 6 – Summary of Abalone Cove Sewer Service Charge Rates Fiscal Year 2019-20 Fiscal Year 2020-21 Fiscal Year 2021-22 Actual Rates Zone Max. Rates Max. Rates Actual Rates A $176.76 / ERU $176.76 / ERU $180.65 / ERU B $694.81 / ERU $694.81 / ERU $710.10 / ERU C $239.93 / ERU $239.93 / ERU $245.21 / ERU D $774.81 / ERU $774.81 / ERU $791.86 / ERU 2021-22 CPI Increase = 2.2% Table 7 – Sample Calculations Land Use Rate Zone A Rate Zone B Rate Zone C Rate Zone D Fiscal Year 2021-22 Rate: $180.65/ERU $710.10/ERU $245.21/ERU $791.86/ERU Residential $180.65/Dwelling $710.10/Dwelling $245.21/Dwelling $791.86/Dwelling Church n/a n/a $245.21 /ERU n/a School/Nursery n/a n/a $245.21 /ERU n/a Beach with 2 showers & 7 toilets n/a n/a $951.41/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 2021-22, is provided in the Appendix. B-9 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 Page | 8 Appendix Preliminary Sewer Service Charge Roll B-10 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 Page | 9 Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2021-22 Proposed Charge Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2021-22 Proposed Charge 7572001005 A VAC 0 0 7572010025 A SFR 1 $180.65 7572002017 B SFR 1 $710.10 7572010026 A SFR 1 $180.65 7572002018 B SFR 1 $710.10 7572010027 A SFR 1 $180.65 7572002019 B SFR 1 $710.10 7572011005 B SFR 1 $710.10 7572002020 B VAC 0 0 7572011006 D SFR 1 $791.86 7572002021 A APT 12 2168 7572011007 D VAC 0 0 7572002021 D APT 1 792 7572011008 B SFR 1 $710.10 7572002024 B SFR 1 $710.10 7572011009 B VAC 0 0 7572002025 B SFR 1 $710.10 7572011010 D SFR 1 $791.86 7572002026 B SFR 1 $710.10 7572011011 D SFR 1 $791.86 7572002027 B SFR 1 $710.10 7572011012 B SFR 1 $710.10 7572002029 B VAC 0 0 7572011013 B VAC 0 0 7572002030 B SFR 1 $710.10 7572011014 D SFR 1 $791.86 7572009007 A SFR 1 $180.65 7572011015 D VAC 0 0 7572009009 A SFR 1 $180.65 7572011016 B SFR 1 $710.10 7572009010 A SFR 1 $180.65 7572011017 B VAC 0 0 7572009011 A VAC 0 0 7572011018 D VAC 0 0 7572009012 A SFR 1 $180.65 7572011019 D SFR 1 $791.86 7572009013 A SFR 1 $180.65 7572011020 B SFR 1 $710.10 7572009014 A VAC 0 0 7572011021 B SFR 1 $710.10 7572009015 A VAC 0 0 7572011022 D SFR 1 $791.86 7572009016 A SFR 1 $180.65 7572011023 D VAC 0 0 7572009017 A SFR 1 $180.65 7572011024 B SFR 1 $710.10 7572009018 A VAC 0 0 7572011025 B SFR 1 $710.10 7572009019 A SFR 1 $180.65 7572011026 B SFR 1 $710.10 7572009020 A SFR 1 $180.65 7572011027 B SFR 1 $710.10 7572009021 A SFR 1 $180.65 7572011028 B VAC 0 0 7572009022 A VAC 0 0 7572011029 B SFR 1 $710.10 7572009023 A SFR 1 $180.65 7572011030 B SFR 1 $710.10 7572009024 A SFR 1 $180.65 7572011031 B SFR 1 $710.10 7572009029 A VAC 0 0 7572012016 A REC 1 $180.65 7572009030 A VAC 0 0 7572012017 A SFR 1 $180.65 7572010009 B SFR 1 $710.10 7572012018 C SFR 1 $245.21 7572010010 A VAC 0 0 7572012019 C VAC 0 0 7572010011 A SFR 1 $180.65 7572012020 C SFR 1 $245.21 7572010012 A VAC 0 0 7572012021 C VAC 0 0 7572010013 A VAC 0 0 7572012022 C SFR 1 $245.21 7572010014 A VAC 0 0 7572012023 C SFR 1 $245.21 7572010015 A SFR 1 $180.65 7572012026 C CCH 6,144 1.17 $286.89 7572010016 C SFR 1 $245.21 7572012028 A VAC 0 0 7572010017 C SFR 1 $245.21 7572013001 B SFR 1 $710.10 7572010018 C SFR 1 $245.21 7572013002 A VAC 0 0 7572010019 A VAC 0 0 7572013003 A VAC 0 0 7572010020 C SFR 1 $245.21 7572013004 B SFR 1 $710.10 7572010021 A VAC 0 0 7572013005 B SFR 1 $710.10 7572010022 A SFR 1 $180.65 7572013006 B VAC 0 0 7572010023 A VAC 0 0 7572013007 A VAC 0 0 7572010024 A SFR 1 $180.65 7572013008 A VAC 0 0 Preliminary Sewer Service Charge Roll B-11 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2021-22 June 17, 2021 Page | 10 Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2021-22 Proposed Charge Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2021-22 Proposed Charge 7572013009 A VAC 0 0 7572016008 C VAC 0 0 7572013010 A SFR 1 $180.65 7572016009 C SFR 1 $245.21 7572013011 B SFR 1 $710.10 7572016010 B VAC 0 0 7572013012 A SFR 1 $180.65 7572016011 B VAC 0 0 7572013013 B SFR 1 $710.10 7572016012 B SFR 1 $710.10 7572013014 B SFR 1 $710.10 7572016013 B SFR 1 $710.10 7572013015 B SFR 1 $710.10 7572016014 B VAC 0 0 7572013016 B SFR 1 $710.10 7572016015 D SFR 1 $791.86 7572013017 B VAC 0 0 7572016016 D SFR 1 $791.86 7572013018 B SFR 1 $710.10 7572016018 D SFR 1 $791.86 7572013019 B SFR 1 $710.10 7572016020 D VAC 0 0 7572014012 A SFR 1 $180.65 7572016021 D SFR 1 $791.86 7572014013 A SFR 1 $180.65 7572016022 D VAC 0 0 7572014014 A SFR 1 $180.65 7572016023 D SFR 1 $791.86 7572014015 A SFR 1 $180.65 7572016024 D VAC 0 0 7572014016 A VAC 0 0 7572016026 C VAC 0 0 7572014017 C VAC 0 0 7572016027 D SFR 1 $791.86 7572014018 C SFR 1 $245.21 7572017001 C VAC 0 0 7572014019 C VAC 0 0 7572017002 C EXE 0 $0.00 7572014020 C SFR 1 $245.21 7572017003 C VAC 0 0 7572014021 C SFR 1 $245.21 7572017004 C VAC 0 0 7572014022 B SFR 1 $710.10 7572017005 C VAC 0 0 7572014023 B SFR 1 $710.10 7572017006 C SFR 1 $245.21 7572014024 B SFR 1 $710.10 7572017007 C SFR 1 $245.21 7572014025 C VAC 0 0 7572017009 C SFR 1 $245.21 7572014026 C SFR 1 $245.21 7572017010 C SFR 1 $245.21 7572014027 C SFR 1 $245.21 7572017011 C SFR 1 $245.21 7572014028 C SFR 1 $245.21 7572017013 C SFR 1 $245.21 7572014029 A SFR 1 $180.65 7572017014 C VAC 0 0 7572014030 A SFR 1 $180.65 7572017015 C SFR 1 $245.21 7572014031 A SFR 1 $180.65 7572017016 A SFR 1 $180.65 7572014032 A SFR 1 $180.65 7572017018 D SFR 1 $791.86 7572014033 A SFR 1 $180.65 7572017028 C SFR 1 $245.21 7572015010 C VAC 0 0 7572017029 C SFR 1 $245.21 7572015011 C SFR 1 $245.21 7572017034 C SFR 1 $245.21 7572015012 C SFR 1 $245.21 7572018900 C SCH 2,301 1.77 $434.02 7572015013 C SFR 1 $245.21 7572018900 C BCH 3.88 $951.41 7572015014 C VAC 0 0 7572019005 C SFR 1 $245.21 7572015015 C VAC 0 0 135.82 $55,252.92 7572015016 C VAC 0 0 7572015017 C VAC 0 0 7572015018 C VAC 0 0 7572016002 C VAC 0 0 7572016003 C SFR 1 $245.21 7572016004 C SFR 1 $245.21 7572016005 C SFR 1 $245.21 7572016006 C SFR 1 $245.21 7572016007 C VAC 0 0 CCH = Church EXE = Exempt (not connected to sewer) REC = Recreational C - Gravity + Low Pressure SCH = School D - Gravity + Force Main BCH = Beach + Low Pressure LANDUSE LEGEND RATE ZONE LEGEND SFR = Residential A - Gravity only VAC = Vacant B - Gravity + Force Main B-12 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 FY 20/21 FY 21/22 Actual Actual 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 $133,400 $152,400 City Contribution $10,700 $40,050 $47,686 $80,829 $177,781 $167,887 $152,135 $89,917 $79,753 $97,147 Total Charge $49,370 $56,330 $56,894 $56,591 $56,419 $58,113 $52,965 $53,584 $53,647 $55,253 C-1 Attachment D The Proposed Charges 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 Abalone Cove 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 singl e- 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 reflec ts 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 revea l 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 Actual FY 20/21 Actual FY 21/22 Proposed City Contribution ($10,700) ($40,050) ($60,386) ($47,686) ($177,112) ($167,887) ($152,135) ($89,917) ($79,753) ($97,146.76) Zone A $ 161.82 $ 163.92 $ 165.56 $165.73 $166.13 $170.62 $176.76 $176.76 $176.76 $180.65 Zone B $ 491.76 $ 660.00 $ 666.60 $667.27 $668.87 $686.93 $711.66 $694.81 $694.81 $710.10 Zone C $ 219.65 $ 222.51 $ 224.74 $224.96 $225.50 $231.59 $239.93 $239.93 $293.93 $245.21 Zone D $ 709.35 $ 718.57 $ 725.76 $726.49 $728.23 $747.89 $747.81 $774.81 $774.81 $791.86 D-1 Attachment E Abalone Cove Landslide Abatement District Sewer System Work Plan For Fiscal Year 2021-22 During FY 21-22, the following maintenance work is anticipated to the ACLAD Sewer System: • Low Pressure System pump replacement, maintenance and repairs • Force Main System pump replacement, maintenance and repairs • Sewer mainline cleaning • Installation of a flow meter at Palos Verdes Drive South Manhole E-1