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CC SR 20230606 01 - Ab Cove Sewer Charge FY23-24 PUBLIC HEARING Date: June 6, 2023 Subject: Consideration and possible action to adjust the existing annual sewer service charge for Fiscal Year 2023-24 for the Abalone Cove Sewer System. Recommendation: (1) Conduct a public hearing on the proposed levy of the annual FY 2023-24 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2023-__, 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 2023-24, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Ferraro 3. Request for Staff Report: Mayor Ferraro 4. Staff Report & Recommendation: Ramzi Awwad, Director of Public Works 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 Ferraro 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: 06/06/2023 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to adjust the existing annual sewer service charge for Fiscal Year 2023-24 for the Abalone Cove Sewer System. RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on the proposed levy of the annual FY 2023-24 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2023-__, 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 2023 - 24, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL. FISCAL IMPACT: The recommended Council action will result in the collection of $62,297 from users of the Abalone Cove Sewer System through tax rolls in FY 2023-24. The remaining funding of $100,403 for operating and maintenance expenditures will be funded from a combination of General Fund transfers and the Abalone Cove Sewer’s fund balance. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Ramzi Awwad, Director of Public Works REVIEWED BY: Same as above APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2023-__ (page A-1) B. Annual Report – Abalone Cove Sewer Service Charge – FY 2023-24 (page B- 1) C. Portuguese Bend Community Association letter (page C-1) 1 BACKGROUND: To ensure funding for the operation and maintenance of the sanitary sewer facilities in the Abalone Cove area, the City Council established the Abalone Cove Sewer Service Charge. The Sewer Service Charge ensures a fair and equitable levying of the necessary costs of operating and maintaining the facilities and was established in compliance with the provisions of Proposition 218. Mailed notices were sent to all affected property owners and a public hearing was held on July 17, 2001. Since there was not a majority of written protests, the charge was established. Additionally, the establishment of the charge included an annual increase commensurate with inflation, not-to-exceed a maximum of 7%. 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 , which runs between July 1 and June 30. In setting the annual rates, the City Council considers new or updated maintenance costs identified in an engineer’s report (Attachment B), any fund balances or shortages, and adjusts the rates accordingly. The Abalone Cove Sewer Charge is levied under the authority of the California Health and Safety 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. Since its inception, the annual revenue from the charge has ranged from $21,595 (FY 2001-02 and FY 2002-03) to $60,074 (FY 2022-23). 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 District s. Vacant parcels are assigned a sewage flow rate of zero. 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 parcel s 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: 2 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 the maintenance and repairs needed for the upcoming fiscal yea r. 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. 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 Abalone Cove Sewer Fund, and this is budgeted to continue in FY 2023-24. 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-Long Beach-Anaheim Area (CPI), as of March 1 of each year; not to exceed a maximum increase of 7% per year. The March 1 CPI for 2023 is 3.7%. The annual engineer’s report for FY 2023-24 shows that the total operating and maintenance cost for the sewer system is estimated to be $162,700. The proposed total annual charge is $62,297, which is approximately 38% of the total estimated operating and maintenance cost for FY 2023-24. The remaining approximately 62%, or $100,403, will be funded from a combination of General Fund transfers and the Abalone Cove Sewer Fund balance. The proposed FY 2023-24 annual charge is an increase of 3.7% from the prior fiscal year. The charge for a single-family parcel ranges from $200.45 to $878.64 per year, depending on the zone in which the parcel is located. This represents an increase of $7.15 to $31.35 from FY 2022-23, 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 a 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. 3 ADDITIONAL INFORMATION: Public Notification On May 11 and May 18, 2023, 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 June 6 at Fred Hesse Jr. Community Park. 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 May 23, 2023. Portuguese Bend Community Association On May 11, 2023, the Portuguese Bend Community Association (PBCA) Board of Directors submitted a letter (Attachment C) to the City Council, City Manager, and Director of Public Works regarding this agenda ite m. In the letter, the PBCA states that it will formally file a protest to any increase in the current sewer fee schedule and will protest the City passing on the subsidy to the property owners. City Council Goal For a number of years, the City Council h as had the goal of developing a proposal to reduce the City subsidy of the sewer system. This goal has been deferred for the FY 2023-24 goals due to other priorities. To develop a proposal to reduce the City’s subsidy of the sewer system , 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 their opinion of the lifetime operating, maintenance, repair, and rehabilitation costs based on the current condition and anticipated useful life. The consultant is also identifying 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 FY 2024-25, should the reduction of the sewer system subsidy become a City Council goal again. 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 2023-24 charges are at the maximum allowable rates under the ordinance, and to 4 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. 5 RESOLUTION NO. 2023-__ 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 2023-24, 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 conne cted 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 2023-24 (commencing July 1, 2023, and ending June 30, 2024) including an increase of 3.7% based on the March 2023 CPI for the Los Angeles-Long-Beach-Anaheim 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 2023-24 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 May 11, 2023, and May 18, 2023. F. The City Council held a public hearing on the Report on June 6, 2023. At such hearing, the City Council heard and considered all objections and protests, if any, to the Report and all testimony regarding the propos ed levy of the Charge for Fiscal Year 2023-24. 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 Resolution No. 2023-__ Page 2 of 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 Yea r 2023-24 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 2023-24 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, 2023, 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, 2023, 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 6th day of June, 2023. _____________________________ Barbara Ferraro, Mayor ATTEST: _________________________ Teresa Takaoka, 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. 2023-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 6, 2023. ______________________________ Teresa Takaoka, City Clerk A-2 ANNUAL REPORT Abalone Cove Sewer Service Charge Fiscal Year 2023-24 Prepared for the City of Rancho Palos Verdes Los Angeles County, California June 6, 2023 B-1 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2023-24 June 6, 2023 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 2023-24 June 6, 2023 Page | 1 Fiscal Year 2023-24 Annual Report City of Rancho Palos Verdes Abalone Cove Sewer Service Charge The undersigned respectfully submits the enclosed report. DATED: June 6, 2023 _________________________ BY: Jeffrey M. Cooper, P.E. I HEREBY CERTIFY that the enclosed Engineer's Report, was filed with me on the day of _, 2023. 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 _, 2023. 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 2023-24 June 6, 2023 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 2023-24 June 6, 2023 Page | 3 Service main Line Cleaning $ 5,800 Annual Maintenance $ 10,000 $ 15,800 FORCE MAIN SUBSYSTEM Annual Maintenance $ 18,000 Pump Replacement $ 9,000 Emergency Repairs $ 20,000 $ 47,000 LOW PRESSURE SYSTEM Emergency Repairs $ 65,000 Pump Maintenance $ 8,000 Pump Replacement $ 15,000 $ 88,000 Subtotal= $ 150,800 ADMINISTRATIVE COSTS Salaries $ 10,300 Edison $ 3,600 County Charge for Collections $ 500 Professional Technical (Engineer's Report) $ 7,500 Fund Balance (as of June 30) $ (10,000) Subtotal= $ 11,900 Total Maintenance/Operation Cost= $ 162,700 Zone A City Contribution= $ (25) Zone B City Contribution= $ (12,043) Zone C City Contribution= $ (62,278) Zone D City Contribution= $ (26,058) Total City Contribution=(100,403)$ Total Annual Charge to Levy = $ 62,297 GRAVITY SUBSYSTEM COST ESTIMATE The estimated annual cost of the Abalone Cove Sewer System is provided below in Table 1. Table 1 – Estimated Annual Costs B-5 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2023-24 June 6, 2023 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 2023-24 June 6, 2023 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 the annual estimated maintenance costs. 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 2023-24 June 6, 2023 Page | 6 Zone A Zone B Zone C Zone D Rate (Budget/ERU) Gravity + Admin 27,700.00$ X X X X 200.99$ Force Main 47,000.00$ X X 903.85$ Low Pressure 88,000.00$ X X 1,635.07$ 200.99$ 1,104.84$ 1,836.06$ 2,739.91$ 0.54$ 316.92$ 1,563.98$ 1,861.27$ 200.45$ 787.92$ 272.08$ 878.64$ 193.30$ 759.81$ 262.37$ 847.29$ 180.65$ 710.10$ 245.21$ 791.86$ 176.76$ 694.81$ 239.93$ 774.81$ 176.76$ 694.81$ 239.93$ 774.81$ 176.76$ 711.66$ 239.93$ 774.81$ 170.62$ 686.93$ 231.59$ 747.89$ 166.13$ 668.87$ 225.50$ 728.23$ 165.73$ 667.27$ 224.96$ 726.49$ Total 2019-22 User Charge ($/ERU) Total 2018-19 User Charge ($/ERU) Total 2017-18 User Charge ($/ERU) Total 2016-17 User Charge ($/ERU) Total 2015-16 User Charge ($/ERU) Subsystem & Budget Total 2023-24 User Charge without contribution ($/ERU) City Contribution ($/ERU) Total 2021-22 User Charge ($/ERU) Total 2020-21 User Charge ($/ERU) Total 2023-24 User Charge ($/ERU) Total 2022-23 User Charge ($/ERU) Table 3 – Land Use Inventory Table 4 – ERU Distribution by Rate Zone and Subsystem 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 Table 6 provides the annual charge rates for Fiscal Year 2023-24 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 3.7%. Land Use Description Parcels Bldg SF ERU's Single Family Home (Including Aptartments)119 131 Church 1 6,144 1.17 School/Nursery 1 2,301 1.77 Beach with 2 showers & 7 toilets 1 3.88 Vacant 58 0 Total:180 8,445 137.82 Subsystem ERU's Gravity 137.82 Force Main 52 Low Pressure 53.82 Zone ERU's A 46 B 38 C 39.82 D 14 Total:137.82 B-8 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2023-24 June 6, 2023 Page | 7 Land Use Rate Zone A Rate Zone B Rate Zone C Rate Zone D Fiscal Year 2023-24 Rate:$200.45/ERU $787.92/ERU $272.08/ERU $878.64/ERU Residential $200.45/Dwelling $787.92/Dwelling $272.08/Dwelling $878.64/Dwelling Church n/a n/a $272.08 /ERU n/a School/Nursery n/a n/a $272.08 /ERU n/a Beach with 2 showers & 7 toilets n/a n/a $1,055.67/Parcel n/a Vacant $0.00 / Lot $0.00 / Lot $0.00 / Lot $0.00 / Lot Fiscal Year 2021-22 Fiscal Year 2022-23 Fiscal Year 2023-24 Zone Actual Rates Max. Rates Max. Rates A $180.65 $193.30 $200.45 / ERU B $710.10 $759.81 $787.92 / ERU C $245.21 $262.37 $272.08 / ERU D $791.86 $847.29 $878.64 / ERU 2023-24 CPI Increase = 3.7% Table 6 – Summary of Abalone Cove Sewer Service Charge Rates Table 7 – Sample Calculations 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 2023-24, is provided in the Appendix. B-9 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2023-24 June 6, 2023 Page | 8 Appendix Preliminary Sewer Service Charge Roll B-10 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2023-24 June 6, 2023 Page | 9 Preliminary Sewer Service Charge Roll Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2023-24 Proposed Charge Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2023-24 Proposed Charge 7572001005 A VAC 0 0 7572010025 A SFR 1 $200.45 7572002017 B SFR 1 $787.92 7572010026 A SFR 1 $200.45 7572002018 B SFR 1 $787.92 7572010027 A SFR 1 $200.45 7572002019 B SFR 1 $787.92 7572011005 B SFR 1 $787.92 7572002020 B VAC 0 0 7572011006 D SFR 1 $878.64 7572002021 A APT 12 2405.40 7572011007 D VAC 0 0 7572002021 D APT 1 878.64 7572011008 B SFR 1 $787.92 7572002024 B SFR 1 $787.92 7572011009 B SFR 1 $787.92 7572002025 B SFR 1 $787.92 7572011010 D SFR 1 $878.64 7572002026 B SFR 1 $787.92 7572011011 D SFR 1 $878.64 7572002027 B SFR 1 $787.92 7572011012 B SFR 1 $787.92 7572002029 B VAC 0 0 7572011013 B VAC 0 0 7572002030 B SFR 1 $787.92 7572011014 D SFR 1 $878.64 7572009007 A SFR 1 $200.45 7572011015 D VAC 0 0 7572009009 A SFR 1 $200.45 7572011016 B SFR 1 $787.92 7572009010 A SFR 1 $200.45 7572011017 B VAC 0 0 7572009011 A VAC 0 0 7572011018 D VAC 0 0 7572009012 A SFR 1 $200.45 7572011019 D SFR 1 $878.64 7572009013 A SFR 1 $200.45 7572011020 B SFR 1 $787.92 7572009014 A VAC 0 0 7572011021 B SFR 1 $787.92 7572009015 A VAC 0 0 7572011022 D SFR 1 $878.64 7572009016 A SFR 1 $200.45 7572011023 D VAC 0 0 7572009017 A SFR 1 $200.45 7572011024 B SFR 1 $787.92 7572009018 A VAC 0 0 7572011025 B SFR 1 $787.92 7572009019 A SFR 1 $200.45 7572011026 B SFR 1 $787.92 7572009020 A SFR 1 $200.45 7572011027 B SFR 1 $787.92 7572009021 A SFR 1 $200.45 7572011028 B VAC 0 0 7572009022 A VAC 0 0 7572011029 B SFR 1 $787.92 7572009023 A SFR 1 $200.45 7572011030 B SFR 1 $787.92 7572009024 A SFR 1 $200.45 7572011031 B SFR 1 $787.92 7572009029 A VAC 0 0 7572012016 A REC 1 $200.45 7572009030 A VAC 0 0 7572012017 A SFR 1 $200.45 7572010009 B SFR 1 $787.92 7572012018 C SFR 1 $272.08 7572010010 A VAC 0 0 7572012019 C VAC 0 0 7572010011 A SFR 1 $200.45 7572012020 C SFR 1 $272.08 7572010012 A SFR 1 $200.45 7572012021 C VAC 0 0 7572010013 A VAC 0 0 7572012022 C SFR 1 $272.08 7572010014 A VAC 0 0 7572012023 C SFR 1 $272.08 7572010015 A SFR 1 $200.45 7572012026 C CCH 6,144 1.17 $318.3336 7572010016 C SFR 1 $272.08 7572012028 A VAC 0 0 7572010017 C SFR 1 $272.08 7572013001 B SFR 1 $787.92 7572010018 C SFR 1 $272.08 7572013002 A VAC 0 0 7572010019 A VAC 0 0 7572013003 A VAC 0 0 7572010020 C SFR 1 $272.08 7572013004 B SFR 1 $787.92 7572010021 A VAC 0 0 7572013005 B SFR 1 $787.92 7572010022 A SFR 1 $200.45 7572013006 B VAC 0 0 7572010023 A VAC 0 0 7572013007 A VAC 0 0 7572010024 A SFR 1 $200.45 7572013008 A VAC 0 0 B-11 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2023-24 June 6, 2023 Page | 10 Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2023-24 Proposed Charge Parcel Number Rate Zone Land Use Bldg Sq Ft ERU Fiscal Year 2023-24 Proposed Charge 7572013009 A VAC 0 0 7572016008 C VAC 0 0 7572013010 A SFR 1 $200.45 7572016009 C SFR 1 $272.08 7572013011 B SFR 1 $787.92 7572016010 B VAC 0 0 7572013012 A SFR 1 $200.45 7572016011 B VAC 0 0 7572013013 B SFR 1 $787.92 7572016012 B SFR 1 $787.92 7572013014 B SFR 1 $787.92 7572016013 B SFR 1 $787.92 7572013015 B SFR 1 $787.92 7572016014 B VAC 0 0 7572013016 B SFR 1 $787.92 7572016015 D SFR 1 $878.64 7572013017 B VAC 0 0 7572016016 D SFR 1 $878.64 7572013018 B SFR 1 $787.92 7572016018 D SFR 1 $878.64 7572013019 B SFR 1 $787.92 7572016020 D VAC 0 0 7572014012 A SFR 1 $200.45 7572016021 D SFR 1 $878.64 7572014013 A SFR 1 $200.45 7572016022 D VAC 0 0 7572014014 A SFR 1 $200.45 7572016023 D SFR 1 $878.64 7572014015 A SFR 1 $200.45 7572016024 D VAC 0 0 7572014016 A VAC 0 0 7572016026 C VAC 0 0 7572014017 C VAC 0 0 7572016027 D SFR 1 $878.64 7572014018 C SFR 1 $272.08 7572017001 C VAC 0 0 7572014019 C VAC 0 0 7572017002 C EXE 0 $0.00 7572014020 C SFR 1 $272.08 7572017003 C VAC 0 0 7572014021 C SFR 1 $272.08 7572017004 C VAC 0 0 7572014022 B SFR 1 $787.92 7572017005 C VAC 0 0 7572014023 B SFR 1 $787.92 7572017006 C SFR 1 $272.08 7572014024 B SFR 1 $787.92 7572017007 C SFR 1 $272.08 7572014025 C VAC 0 0 7572017009 C SFR 1 $272.08 7572014026 C SFR 1 $272.08 7572017010 C SFR 1 $272.08 7572014027 C SFR 1 $272.08 7572017011 C SFR 1 $272.08 7572014028 C SFR 1 $272.08 7572017013 C SFR 1 $272.08 7572014029 A SFR 1 $200.45 7572017014 C VAC 0 0 7572014030 A SFR 1 $200.45 7572017015 C SFR 1 $272.08 7572014031 A SFR 1 $200.45 7572017016 A SFR 1 $200.45 7572014032 A SFR 1 $200.45 7572017018 D SFR 1 $878.64 7572014033 A SFR 1 $200.45 7572017028 C SFR 1 $272.08 7572015010 C VAC 0 0 7572017029 C SFR 1 $272.08 7572015011 C SFR 1 $272.08 7572017034 C SFR 1 $272.08 7572015012 C SFR 1 $272.08 7572018900 C SCH 2,301 1.77 $481.58 7572015013 C SFR 1 $272.08 7572018900 C BCH 3.88 $1055.67 7572015014 C VAC 0 0 7572019005 C SFR 1 $272.08 7572015015 C VAC 0 0 137.82 $62,296.85 7572015016 C VAC 0 0 7572015017 C VAC 0 0 7572015018 C VAC 0 0 7572016002 C VAC 0 0 7572016003 C SFR 1 $272.08 7572016004 C SFR 1 $272.08 7572016005 C SFR 1 $272.08 7572016006 C SFR 1 $272.08 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 May 11, 2023 City of Rancho Palos Verdes City Council Mayor Ferraro, Barbara.ferraro@rpvca.gov Councilman Alegria, eric.alegria@rpvca.gov Councilman Bradley, David.bradley@rpvca.gov Councilman Cruikshank, john.cruikshank@rpvca.gov Councilman Seo, paul.seo@rpvca.gov Ara Mihranian, City Manager, AraM@rpvca.gov Ramzi Awwad, Public Works Director, rawwad@rpvca.gov Re: June 6th, 2023 Agenda Item: Levy of Annual Sewer Service Charge (ACLAD) for Fiscal Year 2023/24 The Portuguese Bend Community Association Board of Directors represents the property owners within the Abalone Cove Sewer Maintenance District. We will formally file a protest to any increase in our current sewer fee schedule due to higher than normal maintenance costs, and will protest the City passing on the subsidy onto the property owners. These expenses are caused by improperly engineered and installed equipment, inequitable assessments to different property owners within the district and the fact th at our sewer fees over the course of the years have been well above other Rancho Palos Verdes resident’s sewer fees for equal service. The Abalone Cove Sewer Collection System is owned, operated and maintained by the City separately from the rest of the City’s sewer system, which is operated and maintained by the LA County Sewer Maintenance District ((CSMD). History 1974 Frank Vanderlip Jr. sold 40 acres at Abalone Cove to LA County. 1975 LA County Department of Beach & County Engineers study for toilet facilities and drainage and sewage requirements 1978 County of Los Angeles sewer improvement project for Narcissa Drive, a draft resolution for the County to do the project was presented and approved by the Mayor Dyda of RPV and the City Council on December 18, 1978. 1978 Abalone Cove Landslide activated 1984 Redevelopment Agency formed, funded by tax increment, RDA is comprised of RPV City Council Members C-1 1984 Liens which are labeled bonds by the City of RPV, Portuguese Bend Residents had liens on our homes to fund the projects from the panel of experts appointed by the RDA. 1987 Horan Settlement, to purchase $10 million worth of assessment bonds to pay for landslide abatement improvements within the Abalone Landslide Abatement District boundaries. 1989 EIR report of Abalone Cove Landslide Stabilization Project done by the County of Los Angeles Public Works, construct domestic sewers to connect to the County Sanitation District 1989 RPV City Council passed a Resolution to place bonded liens on PB residents’ homes to fund projects deemed necessary by the RDA (City Council Members) 1992 Letter from PBCA Board of Directors to Judge Chernow, presiding Judge of Horan Lawsuit. Letter is in opposition to the liens placed on PB property owners who were not involved in the Horan lawsuit, liens range from $21,000 to $93,000 of resident’s homes. The letter also states the Panel of Experts appointed by the RDA are expanding their activities to the Portuguese Bend Landslide, which these funds are restricted to use for the Abalone Cove Landslide only. At the date of this letter April 23, 1992, of t he $10 million award (bonds/liens), only $6 million remained in the fund abatement measures and yet no abatement work has commended as of the date of the April 23, 1992 letter. 1993 April 28th RPV Agenda, Panel of Experts Priority list of improvements f rom the Horan Settlement Funds for landslide abatement projects. #1 Additional dewatering wells $300,000; #2 Drainage Facilities $1 to $1.5 million (never done); #3 Shoreline Protection $5 million (never done); #4 Domestic Sewers $1 million; #5 Toe berm and shoreline protection $7 million to $9 million (never done) Note that the Panel of Experts deemed the sewers not a high priority. 1994 Rancho Palos Verdes formation of Sewer Maintenance District for Abalone Cove Sanitary Sewers funded by the RDA. Which is funded by Horan Settlement, bonds described in the 1987 settlement agreement. 1996 Panel of Experts’ priorities concerning landslide abatement for Abalone Cove Landslide, remains as stated above in 1992, Sewers are #4 on the list of 5 items. 1998 Letter from the City of RPV to PB residents dated September 22, 1998, stating that they will be installing the sewer system along with the storm drains. Note the storm drain project never happened. 2000 City awards contract for construction of the Abalone Cove Combined Pressure/Gravity Sewer System. Portuguese Bend residents had no input on the design nor did the PB residents give approval of the sewer design. 2001 Letter from City of RPV to PB residents dated June 1st stating that the City Council has agreed to contribute 47% of the estimated costs. 2002 Completed the Abalone Cove Sewer System, RDA advises ACLAD that they did not have adequate funds to proceed with the Altamira Canyon Drainage Project, which on the Panel of Experts was #2. C-2 2017 City of Rancho Palos Verdes Update Study – Abalone Cove Sewer Maintenance Fee. A-34 page 31 under Grinder Pump Systems states “It is typical for an e-one pump to have a service life of approximately seven to ten years. However, due to service requirements, the pumps at some locations require replacement at 3 to 4 year intervals.” This grinder pump replacement is part of the subsidy the City of RPV pays for. Where else in the City of RPV does a resident have to replace sewer parts every 3 to 4 years at the cost of $10,000 to $15,000? It is unjust for the City of RPV to pass on this expense to the PB residents when the City of RPV designed and installed the substandard sewer system that we did not request to have. Example: My home has 3 adults with low use of the system, and the grinder pumps last approximately 6 years. (Claudia Gutierrez) The RPV City Council at past meetings have asked the question,” how did we get stuck with these sewers.” The answer is: Abalone Cove Shoreline Park was acquired from the County of Los Angeles by Rancho Palos Verdes Redevelopment Agency on October 13, 1987. Remember in the timeline above in 1975 Los Angeles County Engineers were already designing a sewer and drainage system for Abalone Cove, then in 1978 Los Angeles County engineers presented a sewer system designed which included Narcissa Drive in the PB community along with Abalone Cove beach sewer system, which was approved by Mayor Dyda and the City Council on December 18, 1978. In order for the City of Rancho Palos Verdes to obtain title to Abalone Cove Shoreline Park the City of RPV had to take the responsibility for the construction of the Abalone Cove sewer system. Otherwise, ownership of Abalone Cove Shoreline Park title would remain with Los Angeles County and then Los Angeles County would be responsible for the Abalone Cove Sewer System. By the City of RPV choosing the design as they did ( different that the 1975 LA County sewer design), the City of RPV have excluded the possibility of the L.A. County Sanitation District from taking over maintenance. This precludes the Abalone Cove Sewer District’s landowners from benefiting with the economy of scale of fees the Sanitation District charge with similar neighborhoods. As a result, the cost of the Abalone Cove Sewer System is in some cases 3 times higher than the rest of RPV. Property owners were enticed to accept the sewer system based upon a fixed cost with a CPI inflation factor. To increase the fee and place all of the maintenance costs of a deficient system on the property owners would be unfair. As stated in the City of RPV’s letter to PB landowners on June 1, 2001. The City in their April 2015 Abalone Cove Sewer System Management Plan acknowledges that the system is jointly funded through Abalone Cove Sewer Maintenance District and augmented with an annual City subsidy. This has always been the understanding of the property owners , to change this agreement with a fee increase to the property owners in order to cover a deficient system would be unfair. Note part of the subsidy amount the City of RPV pays is for Administrative expense of $21,948. The property tax revenue the City of RPV receives from property in Portuguese Bend should be con sidered to offset the subsidy the City of RPV funds for the sewers. Homes in the Sewer District are selling for $3 million to $5 million, vacant lots in Zone 2 are selling for $1 million. The PBCA pays for our roads and gates 100%, no City funds are ever used. Portuguese Bend does not have City lights, the two light posts at our entry gates, we pay for. PBCA pays for fire and weed abatement in our community. The City of RPV owns 16 vacant lots within the PBCA and they do not do weed abatement on their vacant lots. The Portuguese Bend landowners did not petition the City of RPV to install the sewer system. Sewer Rates for FY 2020 to 2021 Portuguese Bend Residents on the Abalone Cove Sewer System pay: C-3 Zone A $176.76 Zone B $694.81 Zone C $262.37 Zone D $774.81 Portuguese Bend Residents also pay on to the LA County Sanitation District: $171.00 Portuguese Bend Residents pay to ACLAD for dewatering wells: $620.00 up to thousands of dollars, depends on the square footage of the home and square footage of the parcel. You will find attached to this email the ongoing list of road sinkholes, gas leaks, water pipe breaks, sewage leaks on the West Side of Portuguese Bend, which have the sewer system. Also attached is a graph of the land movement on the West Side of Portuguese Bend as documented by the City Geologist. Sincerely, Portuguese Bend Community Association Board of Directors Kent Attridge, President, City Liaison, kent.pbca@gmail.com Claudia Gutierrez, VP, Treasurer, Roadside West & East, claudia.pbca@gmail.com Claire Leon, Secretary, claire.pbca@gmail.com Ben Zask, Access Control, Roads East, bzask.pbca@gmail.com Dave Zelhart, Roads West, dave.pbca@gmail.com C-4 PORTUGUESE BEND LEAKS – LIST IS CONSTANTLY BEING UPDATED 09/09/2019 Sinkhole at Sweetbay & Narcissa, Cal Water leak PBCA repaired $15,136.35 09/16/2020 Cracks on the road, lower Cinnamon from 1 to 3 Cinnamon, PBCA repaired $21,184.00 10/08/20 Cal Water break on Burma Trail, mud and water flowed onto Narcissa all the way down to Sweetbay. Residents used their own Bobcats to direct the flow of mud away from homes. Road damage, Cal Water refuses to pay for. 3/19/2021 Sinkhole at Clovetree, Cal Water leak. PBCA repaired $23,868.00 03/19/2021 Gas leak on Clovetree 02/2021 Gas leak on Cinnamon near Clovetree 02/2021 Cal Water break on Cinnamon near Clovetree 07/17/2021 Cal Water break above Vanderlip 10/17/2021 Cal Water break at Fruit Tree and Narcissa 10/21/2021 Gas leak on Cinnamon 11/02/2021 large crack in the road on Cinnamon in front of Shears vacant lot 11/11/2021 Pipe break at Narcissa gate lot, sprinkler pipe stretched and leaking 11/24/2021 Cal water break at Vanderlip Trail 11/30/2021 main line break at 28 Narcissa, end of pipe separated 1.5” due to land movement 12/02/2021 Cal Water break at 5 corners, (Ginger Root, Narcissa & Cinnamon) 12/02/2021 Gas leak at Clovetree, also detected on lower Cinnamon 12/05/2021 Sewer alarms going off at Sweetbay Pump Station, night crew working 12/05/2021 Raw sewage leaking out of pipes near 28 and 30 Cinnamon, crews working all night and the next day 12/06/2021 Sewage smell reported on lower Narcissa C-5 12/07/2021 Gas smell reported at 1 Cinnamon 12/19/2021 Sewer smell reported and repaired near 20 Narcissa 12/20/2021 Gas smell repair work again at 1 Cinnamon 1/4/2022 Pipe break at Narcissa gate lot, sprinkler pipe stretched and leaking 1/5/2022 RPV Sewer line on PV Drive South near Wayfarer’s Chapel/Smell 4/13/2022 Cal Water pipe leak on Vanderlip Trail (Upper Cinnamon no water) 5/31/22 Cal Water pipe leak in front of 5 Cinnamon in the road 7/2/2022 Cal Water leak at 1 Narcissa 7/5/2022 Cal Water leak on Vanderlip Drive, Cal Water overflow for 7 days 7/26/2022 Gas leaks at 16 and 22 Cinnamon repair work 8/19/2022 (several days prior) 7/28/2022 Raw sewage leak in front of 1 Cinnamon Lane 8/9/2022 RPV Sewer Sweetbay Pumping Station, alarm sounding, repair work being done 8/12/2022 Cal Water leak 30 Narcissa 8/18/2022 Cal Water leak 39 Narcissa near new fire hydrant, road damage May have been old ACLAD discharge line, not confirmed 9/8/2022 City of RPV road repair in front of Wayfarer’s Chapel 1/6/2023 Cal Water Shut off to find where pressure is being lost; pipe break at Figtree & Narcissa, replacing a stretch of pipe there 1/12/2023 Narcissa Gate Lot Park sprinkler system, pipe stretched and broke 1/24/2023 ACLAD discharge line leak, near where old Well #10 was. 2/9/2023 ACLAD discharge line break Narcissa Gate lot park 2/28/2023 Gas leak at the corner near 1 Cinnamon, Narcissa & Figtree 3/7/2023 Cal Water leak corner of Cinnamon, Narcissa & Figtree 3/21/2023 Water break at Narcissa Gate lot, stretching of the pipes C-6 4/26/2023 Cal Water leak, 3 breaks on Burma and Vanderlip trails 5/4/2023 Cal Water leak in vault near 88 Narcissa 5/4/2023 RPV Sewer leak from the road, near the curve at 25 Narcissa C-7 Annual (Oct 1-Sept 30) Precipitation (Inches):Bean Field @ Inspiration Point Sweetbay @ WW8 PV Drive South, East of Narcissa Cinnamon and CloveTree Annual Movement (Feet)McGee Point ID: 9.3 6.2 18 3.5 17 13 4.7 8.9 Data Collection Period:9/19/2014 - 10/8/2015 10/8/2015 - 4/19/2016 10/5/2016 - 10/4/2017 10/4/2017 - 10/10/2018 10/10/2018 - 11/1/2019 11/1/2019 - 9/24/2020 9/24/2020 - 9/28/2021 9/28/2021 - 10/10/2022 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 2015 2016 2017 2018 2019 2020 2021 2022 2023 Portuguese Bend Horizontal Land Movement AB20 AB50 AB53 AB68 10/10/2022 - 3/13/2023 C-8