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CC SR 20240702 01 - Ab Cove Sewer Charge FY24-25 PUBLIC HEARING Date: July 2, 2024 Subject: Consideration and possible action to adjust the existing annual sewer service charge for Fiscal Year 2024-25 for the Abalone Cove Sewer System. Recommendation: (1) Conduct a public hearing on the proposed levy of the annual FY 2024-25 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2024-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A REPORT IN CONNECTION WITH THE SEWER SERVICE CHARGE ESTABLISEHD PURSUANT TO CHAPTER 13.06 OF THE RANCHO PALOS VERDES MUNICIPAL CODE, DETERMINING THE AMOUNT OF SUCH CHARGE FOR FISCAL YEAR 2024-25, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Cruikshank 3. Request for Staff Report: Mayor Cruikshank 4. Staff Report & Recommendation: Brandon Mesker, Associate 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 Cruikshank 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: 07/02/2024 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to adjust the existing annual sewer service charge for Fiscal Year 2024-25 for the Abalone Cove Sewer System. RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on the proposed levy of the annual FY 2024-25 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2024-__, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A REPORT IN CONNECTION WITH THE SEWER SERVICE CHARGE ESTABLISEHD PURSUANT TO CHAPTER 13.06 OF THE RANCHO PALOS VERDES MUNICIPAL CODE, DETERMINING THE AMOUNT OF SUCH CHARGE FOR FISCAL YEAR 2024 - 25, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL. FISCAL IMPACT: The recommended Council action will result in the collection of approximately $65,280 from users of the Abalone Cove Sewer System through tax rolls in FY 2024-25. The remaining funding of approximately $317,095 will be funded from multiple funds in the General Fund, fund balance in Abalone Cove Sewer Fund, and Improvement Authority Abalone Cove. The total operating and general maintenance budget is $382,375. VR Amount Budgeted: $382,375 Additional Appropriation: N/A Account Number(s): 101-400-3160-5201 $($52,175) (Sewer Maintenance – Repair & Maintenance Service) 225-400-0000-5201 ($115,700) (Abalone Cove Sewer Maintenance Fund – Repair & Maintenance Service) 225-400-0000-5304 ($4,000) (Abalone Cove Sewer Maintenance Fund – Electricity) 795-400-0000-5304 ($2,500) (Abalone Cove Improvement Authority – Electricity) 225-400-0000-5101 ($36,000) (Abalone Cove Sewer Maintenance Fund – Professional/Technical Services) 101-400-3110-41XX ($172,000) (Public Works Administration) VR 1 ORIGINATED BY: Brandon Mesker, Associate Engineer REVIEWED BY: Ramzi Awwad, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2024-____ (page A-1) B. Annual Engineer’s Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 (page B-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 maj ority 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 $62,297 (FY 2023-24). 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 zone and charge for each parcel using the procedure discussed below. 2 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 subsystems with different operations and maintenance (O&M) needs. Some parcels use multiple subsystems, so each parcel is assigned to one of four zones. These zones are established based on the combination of subsystems 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, force main, and low-pressure subsystem 3) The O&M costs of each zone are calculated using the estimated maintenance costs for the upcoming fiscal year. The City’s practice has been to not include capital projects or sewer asset management (i.e. annualized life-cycle component replacement and repair). 4) The proportional cost for each parcel is determined by applying the fractional flow generated by that parcel to the zone’s O&M costs, 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 transfers from the General Fund to the Abalone Cove Sewer Maintenance Fund, and this is budgeted to continue in FY 2024-25 in the amount of $317,095. 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 2024 is 4.0%. The annual engineer’s report for FY 2024-25 shows that the total O&M cost for the sewer system is estimated to be $382,375. Due to an error, two parcels were not included in last year’s Abalone Cove Sewer Charge, however, they have been included in this year’s. Table 1 on the next page shows the budget by cost category. 3 Table 1 – Abalone Cove Sewer Maintenance and Operations Budget for FY 2024-25 Account Description Budget Cost Description Preventative Line Maintenance $17,100 Line Jetting and Inspection Preventative Pump Maintenance $8,300 Pump Part Replacement and Install Pump Replacement $33,000 Purchase and Install of New Pumps Emergency Repair $134,900 Emergency Response to Breaks, Blockages, or Other Failures Electricity $6,500 Electricity Costs for Lift Stations Professional/Technical Services $10,700 Engineer's Report, Answering Services, etc. Personnel $171,800 Employee Salaries & Benefits Total $382,300 The budget for FY 2024-25 is estimated to be much higher than has historically been the case because there has been a major increase in repair costs due to landslide movement affecting the system. Table 2 on the next page shows the operating and maintenance costs going back to FY 2020-21. The estimated higher cost for FY24-25 is reflected in a much greater budget for personnel costs as well as emergency repairs to respond to land movement-related issues. Approximately one-sixth of all maintenance staff time is estimated to be dedicated to the Abalone Cove Sanitary Sewer during FY 2024-25. The budget for repairs and the amount of staff time allocated to the sanitary sewer is expected to decrease in future years as land movement slows in response to measures being implemented by the Abalone Cove Landslide Hazard Abatement District (ACLAD). CONTINUED ON THE NEXT PAGE 4 Table 2 – Abalone Cove Sewer Maintenance and Operations Actual Costs Account Description FY2019- 20 Actual FY2020- 21 Actual FY2021- 22 Actual FY2022- 23 Actual FY2023-24 Estimated Repair and Maintenance $98,100 $62,000 $81,100 $75,200 $58,400 Emergency Repair $0 $0 $0 $0 $134,900 Electricity $2,100 $3,400 $3,800 $2,800 $6,500 Professional Technical Services $7,000 $19,200 $27,000 $71,300 $10,700 Personnel $17,100 $15,500 $15,700 $15,900 $171,800 Total $124,300 $100,100 $127,600 $165,200 $382,300 The proposed total annual charge is $65,280, which is approximately 17% of the total estimated operating and maintenance cost for FY 2024-25. The remaining approximately 83%, or $317,095, will be funded from General Fund, General Fund Transfers-In, and Abalone Cove Sewer Fund, as shown in Table 3 below. Table 3 – Abalone Cove Sewer Maintenance and Operations FY2024-25 General Fund – Administration/Sewer Maintenance $88,895 General Fund – Transfers- In $70,000 Abalone Cove Sewer District Fund – Electricity, Repairs & Maintenance, Professional and Technical $155,700 IA Abalone Cove Sewer -Electricity $2,500 Total $317,095 The proposed FY 2024-25 annual charge is an increase of 4.0% from the prior fiscal year. The charge for a single-family parcel ranges from $208.47 to $913.79 per year, depending on the zone in which the parcel is located. This represents an increase of $8.02 to $35.15 from FY 2023-24, depending on the zone. ADDITIONAL INFORMATION: 5 Wayfarers Chapel According to the assessment formula discussed earlier in this staff report, Wayfarers Chapel is assessed $300 annually for use of the Abalone Cove Sewer System. At this time, the City is aware that Wayfarers Chapel is closed to the public and the chapel has been deconstructed. The Engineers Report (Attachment B) assumed the continued use of plumbing within the overall campus. If that use changes, Wayfarers Chapel may submit a request to the City to discontinue the sewer charge, and the request will be processed at that time. Public Notification On June 13 and June 20, 2024, 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 2 at Fred Hesse Jr. Community Park. An additional public notice of tonight’s meeting was sent to property owners within the Abalone Cove Sewer District by U.S. Mail on June 13, 2024. 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 2024-25 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 operation and maintenance costs to minimize the likelihood of system failures and avoid regulatory fines in the event of system failures. 2. Take other action, as deemed appropriate. 6 01203.0006/993516.1 RESOLUTION NO. 2024-__ 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 2024-25, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL WHEREAS, the California Government Code requires that fees for services charged by municipalities not exceed the cost of providing the service for which the fee is levied and that no fee or service charge or increase in an existing fee or charge may be levied without the public having an opportunity to make oral or written public comment at a regularly scheduled City Council meeting; and WHEREAS, the Abalone Cove Sewer System is owned, operated, and maintained by the City of Rancho Palos Verdes; and WHEREAS, on August 7, 2001, the City Council of the City of Rancho Palos Verdes adopted Ordinance No. 368, which established sewer maintenance fees for the Abalone Cove Sewer System as set forth in Chapter 13.06 (Sewer Service Charges – Abalone Cove Landslide Abatement District) of Title 13 (Public Services) of the Rancho Palos Verdes Municipal Code (“RPVMC”); and WHEREAS, current sewer maintenance fees collected by the City do not adequately cover the full operation and maintenance costs for the Abalone Cove Sewer System; and WHEREAS, Government Code Sections 66013 and 66016 authorize the City to impose sewer connection fees (“Charge”); and WHEREAS, City Staff has determined that an Engineer’s Report is necessary to determine the Charge for Fiscal Year 2024-25 and the Charge be increased from the Charge for the prior Fiscal Year; but to have the charge not exceed the maximum amount authorized pursuant to the Ordinance; and WHEREAS, City Staff desires to file a written report (the “Engineer’s Report”) 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 2024-25 (commencing July 1, 2024, and ending June 30, 2025) including an increase of 4.0% based on the March 2024 Consumer Price Index 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; and WHEREAS, on June 13, 2024, a public notice announcing the City Council’s public hearing and review of the proposed amendment to establish a sewer connection A-1 01203.0006/993516.2 -2- fee for new connections to the Abalone Cove Sewer System was published in the Palos Verdes Peninsula News.; and WHEREAS, based upon 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, as of March 1, the City Council now desires to increase the Abalone Cove Sewer System service fee by 4% for FY 2024-25. THEREFORE, 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 “Engineer’s 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 20 24-25 (commencing July 1, 2024, and ending June 30, 2025) including an increase of 4.0% based on the March 2024 Consumer Price Index (“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 Engineer’s Report provides that the Charge for Fiscal Year 2024-25 be increased from the Charge for the prior Fiscal Year; but the charge does not exceed the maximum amount authorized pursuant to the Ordinance. E. The City Clerk caused notice of a hearing on the Report to be published in the Palos Verdes Peninsula News on June 13, 2024, and June 20, 2024. F. The City Council held a public hearing on the Engineer’s Report on July 2, 2024. 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 2024-25. Section 2. The City Council hereby overrules any and all objections to the Engineer’s Report; determines that no majority protest against the Engineer’s Report, determined in accordance with Health and Safety Code Section 5473.2, exists; approves and finally adopts the Engineer’s Report as filed; determines that the Charge A-2 01203.0006/993516.2 -3- for Fiscal Year 2024-25 against each parcel described in the Engineer’s Report shall be as described in the Engineer’s Report; and orders that the Charge shall be collected for Fiscal Year 2024-25 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 Engineer’s Report, with a statement endorsed on the Engineer’s Report over the City Clerk’s signature that the Engineer’s Report has been approved and finally adopted, with the City Treasurer on or before August 10, 2024, pursuant to Section 5 of the Ordinance. Section 4. This resolution is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15378 of the CEQA Guidelines because the sewer Charge constitutes a government funding mechanism or other government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Section 5. The City Clerk is directed to file a copy of the Engineer’s Report, with a statement endorsed on the Engineer’s Report over the City Clerk’s signature that the Engineer’s Report has been approved and finally adopted, with the County Auditor of the County of Los Angeles on or before August 10, 2024, pursuant to Section 6 of the Ordinance. Section 6. The City Clerk is authorized to take such other action as is required to implement this Resolution. PASSED, APPROVED AND ADOPTED this 2nd day of July, 2024. _____________________________ 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. 2024-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on July 2, 2024. ______________________________ City Clerk A-3 ANNUAL REPORT Abalone Cove Sewer Service Charge Fiscal Year 2024-25 Prepared for the City of Rancho Palos Verdes Los Angeles County, California June 18, 2024 B-1 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 June 18, 2024   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 2024-25 Fiscal Year 2024-25 Annual Report City of Rancho Palos Verdes Abalone Cove Sewer Service Charge The undersigned respectfully submits the enclosed report. DATED : June 18, 2024 June 18, 2024 '/i...., I HEREBY CERTIFY that the enclosed Engineer's Report, was filed with me on the / f' day of ~ n.t..-2024. Teresa Takaoka, City Clerk, City of Rancho Palos Verdes Los Angeles County, California 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 / f""-day of ~ , 2024. Teresa Takaoka, City Clerk, City of Rancho Palos Verdes Los Angeles County, California Page I 1 8-3 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 June 18, 2024   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).   The maximum rates, which may be levied for each Equivalent Residential Unit (ERU), may be increased  automatically by the annual increase in Consumer Price Index (CPI), as described in the City’s Code  13.06.020. Additionally, 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 2024-25 June 18, 2024   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        B-5 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 June 18, 2024   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 2024-25 June 18, 2024   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, Sweetbay East and  Sweetbay at Altamira 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 2024-25 June 18, 2024   Page | 6       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 2024‐25 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 13.06.020. Accordingly, the CPI  for this Fiscal Year has been determined to be 4.0%. B-8 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 June 18, 2024             Page | 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 2024‐25, is provided in the Appendix.  B-9 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 June 18, 2024             Page | 8                     Appendix    Preliminary Sewer Service Charge Roll  B-10 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 June 18, 2024             Page | 9         Preliminary Sewer Service Charge Roll     B-11 City of Rancho Palos Verdes Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2024-25 June 18, 2024             Page | 10         B-12