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CC SR 20250715 01 - Ab Cove Sewer Charge FY25-26 PUBLIC HEARING Date: July 15, 2025 Subject: Consideration to adjust the existing annual sewer service charge for Fiscal Year (FY) 2025-26 for the Abalone Cove Sewer System. Recommendation: (1) Conduct a public hearing on the proposed levy of the annual FY 2025-26 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2025-__, 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 2025-26 AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Bradley 3. Request for Staff Report: Mayor Bradley 4. Staff Report & Recommendation: Brandon Mesker, Associate Engineer Deanna Fraley, 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 speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Bradley 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: 07/15/2025 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration to adjust the existing annual sewer service charge for Fiscal Year (FY) 2025-26 for the Abalone Cove Sewer System RECOMMENDED COUNCIL ACTION: (1) Conduct a public hearing on the proposed levy of the annual FY 2025-26 sewer service charge for the Abalone Cove Sewer System; and (2) Adopt Resolution No. 2025-__, 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 2025-26 AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL. FISCAL IMPACT: The recommended Council action will result in the collection of approximately $60,173 from users of the Abalone Cove Sanitary Sewer System through tax rolls in FY 2025-26. These funds will offset a portion (~2%) of the FY 2025-26 operating, maintenance, and repair budget for the Abalone Cove Sanitary Sewer System , which totals $3,353,500. The remaining funds of approximately $3,293,327 will be funded from the Capital Improvement Fund and multiple funds transferred in from the General Fund and Abalone Cove Sewer Fund balance. Amount Budgeted: $3,353,500 (Expenditures) $60,200 (Revenue) Additional Appropriation: N/A Account Number(s): 225-400-0000-5201 ($118,500) (Abalone Cove Sewer Maintenance Fund – Repair & Maintenance Service) 225-400-0000-5101 ($11,000) (Abalone Cove Sewer Maintenance Fund – Professional/Technical Services) 330-400-8202-8001 ($25,000) (CIP – Ab Cove Sewer Rehab – Professional/Technical services) 330-400-8202-8802 ($2,750,000) (CIP – Ab Cove Sewer Rehab – Other Improvements) 330-400-8202-8005 ($200,000) 1 (CIP – Ab Cove Sewer Rehab – Engineering Design Services) 330-400-8202-8006 ($25,000) (CIP – Ab Cove Sewer Rehab – Inspection Services) 101-400-3110-41XX ($224,000) (Public Works Administration) VR ORIGINATED BY: Brandon Mesker, Public Works Associate Engineer Deanna Fraley, PE, Public Works Principal Engineer REVIEWED BY: Ramzi Awwad, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2025-____ (page A-1) B. Annual Report – Abalone Cove Sewer Service Charge – Fiscal Year 2025- 26 (page B-1) C. Public Notification issued on July 3 and July 10, 2025 (page C-1) D. Ordinances 367U and 368 Establishing Abalone Cove Sewer Charge (page D-1) E. Public Comment (page E-1) BACKGROUND: To ensure continued funding for the operation and maintenance (O&M) of the sanitary sewer facilities in the Abalone Cove area, the City Council established the Abalone Cove Sewer District (District) and the Sewer Service Charge (charge). The charge ensures a fair and equitable levying of the necessary costs of O&M for the facilities and was established in compliance with the provisions of Proposition 218. At the time, 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 District and charge were 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 O&M of the sewer and sets the District rates for the ensuing fiscal year, which runs between July 1 and June 30. The City Council adjusts the District rates accordingly based on new or updated maintenance costs identified in an engineer’s report (Attachment B) or any fund balances or shortages. The 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 Los Angeles County property taxes for each property. Since its inception, the total annual revenue that the City receives from the charge has ranged from $21,595 (FY 2001-02 and FY 2002-03) to $65,280 (FY 2024-25). Each 2 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 O&M costs to reduce the charges to property owners within the District for FY 2001-02 only, and to review the subsidy each year thereafter 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 within the District using the procedure discussed below. 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 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 described 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 only the estimated maintenance costs for the upcoming fiscal year. The City’s practice has been to not include the cost of capital projects or sewer asset management (i.e. annualized life-cycle component replacement and repair) in that calculation. 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 ensures that the levy assessed for each parcel is commensurate with that parcel’s system use and the associated O&M costs. Since its inception, the charge has been less than the amount needed for the actual and ongoing O&M costs of the sewer system, and the City has subsidized those costs through transfers from the General Fund to the Abalone Cove Sewer Maintenance Fund. Pursuant to Ordinance No. 367U and subsequently Ordinance No. 368 (Attachment D), the annual increase in the Charge can be 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, unless the City went through the Proposition 218 process (a protest public hearing to increase assessments where no more than 50% of the property 3 owners within the District lodge a protest ballot opposing the increased assessment). The March 1 CPI for 2025 is 3.0%. The City Council reviews the current and projected costs for the sewer and sets rates for each fiscal year through an annual Engineer’s Report. The Engineer’s Report includes a budget of estimated expenses, which for FY 2025-26, are estimated to be $3,353,500. Table 1 shows the budget of expenses by cost category. Table 1 – Abalone Cove Sewer Maintenance and Operations Budget for FY 2025-26 Account Description Budget Cost Description Line Maintenance $32,249 Line Jetting, Inspection, Minor Repairs Pump Maintenance & Replacement $86,251 Pump Part Replacement or Repair, Purchase of New Pump, and Install Emergency Repair $2,840,106 Emergency Response to Breaks, Blockages, or Other Failures Emergency Generators $159,893 Generators and Fuel for Lift Stations – Post Electricity Shut Off Professional/Technical Services $11,000 Engineer's Report, Answering Services, etc. Personnel $224,000 Maintenance Employees Salaries & Benefits Total $3,353,500 Total Landslide movement has caused expenses to be much higher than in previous years due to the major repairs needed to keep the system in operation. The higher cost is reflected in a much greater budget for personnel costs (30% of all maintenance staff time) as well as emergency repairs (by contractors) to respond to land movement related issues. The charge for FY 2025-26 is proposed to be $60,173.42, which for a single-family parcel ranges from $214.72 to $941.20 per year, depending on the zone in which the parcel is located. The proposed FY 2025-26 annual charge is an increase of 3%, which is the CPI increase from the prior fiscal year. However, the total estimated FY 2025-26 revenue is less than that of FY 2024-25 despite the CPI increase, because 12 parcels with red- tagged homes are no longer charged. The increase of 3% is the maximum allowable rate increase under the ordinance as it limits the annual increase to the annual CPI, not to exceed 7%. An increase above this amount to recover increased expenses associated with maintaining and operating the sewer system would require the City Council to undertake the notice and protest procedures in compliance with Proposition 218. Generally speaking, the Proposition 218 process involves the following and should be completed in time to meet the County’s August 10th deadline to be collected on the tax rolls, if approved: 4 • Preparation of an Engineer’s Report • Mailed notice and ballot to each property owner 45 days before the public hearing • Public hearing During the FY 2025-26 budget workshop process, the City Council was made aware of the increasing maintenance and operation costs of the sanitary sewer system due to accelerated land movement. At the time, the City Council did not indicate an interest in raising the assessments, therefore the deadline for the notice and public hearing process to be in compliance with Proposition 218 for an increase above CPI for FY 2025-26 has passed. However, the City Council can direct staff to initiate the process for FY 2026-27 for those estimated costs to operate and maintain the system. The process should start during the FY 2026-27 budget workshops in early 2026 to allow sufficient time to complete all steps in time for the County’s August 10th deadline. The estimated revenue from the FY 2025-26 charge is approximately 2% of the total estimated cost for FY 2025-26. The Engineer’s Report includes the best estimate of the necessary expenses to safely operate and maintain the system. Because the City may face regulatory fines in the event of sewer overflows, the City must either shut down the system or safely operate and maintain it in order to avoid regulatory fines. Therefore, the City must identify funding sources to continue to safely operate the system and minimize the likelihood of failures. Accordingly, the remaining approximately 98%, or $3,430,792 of the estimated necessary expenses will be funded from the Capital Improvement Fund and a combination of General Fund transfers and the Abalone Cove Sewer Fund balance. ADDITIONAL INFORMATION: Public Notification On July 3 and July 10, 2025, the City published the official notification for tonight’s meeting in the Daily Breeze (Attachment C). An additional courtesy notice was sent via mail to all parcel owners within the Abalone Cove Sewer System District on June 27, 2025. The notification advertised that a public hearing would be conducted on July 15, 2025 at Fred Hesse Jr. Community Park. Public Comments To date, one public comment has been received expressing opposition to the proposed 3% CPI increase to the annual Sanitary Sewer Assessment (Attachment E). Additional public comments received after publishing this report will be provided to the City Council as late correspondence. ALTERNATIVES: In addition to the Staff recommendation s, the following alternative actions are available for the City Council’s consideration: 5 1. Reduce or eliminate the Sanitary Sewer Charge for FY 2025-26, which would require an additional appropriation of up to $60,173 from City funds to offset the reduced revenue. 2. Direct staff to initiate the Proposition 218 notification and hearing process to increase the Sanitary Sewer Assessment for FY 2026-27 in an amount greater than CPI based on an estimate of FY 2026-27 maintenance and operation costs. 3. Take other action, as deemed appropriate. 6 01203.0006 2019588.1 RESOLUTION NO. 2025-__ 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 2025-26, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL Whereas, in 2001 the City Council adopted Ordinance No. 367 -U and Ordinance No. 368 that added Chapter 13.06, to the Rancho Palos Verdes Municipal Code to establish an annual sewer service charge for all parcels connected to the City’s Abalone Cove sanitary sewer system. NOW, 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: 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 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”). A. 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. B. 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 2025-26 (commencing July 1, 2025, and ending June 30, 2026) including an increase of 3.0% based on the March 2025 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. C. The Report provides that the Charge for Fiscal Year 2025-26 be increased from the Charge for the prior Fiscal Year; but the charge does not exceed the maximum amount authorized pursuant to the Ordinance. D. The City Clerk caused notice of a hearing on the Report to be published in the Daily Breeze on July 3, 2025, and July 10, 2025. E. The City Council held a public hearing on the Report on July 15, 2025. At such hearing, the City Council heard and considered all objections and A-1 01203.0006 2019588.1 -2- protests, if any, to the Report and all testimony regarding the proposed levy of the Charge for Fiscal Year 2025-26. Section 2. The City Council hereby overrules any and all objections to the Report; determines that no majority protest against the Report, determined in accordance with Health and Safety Code Section 5473.2, exists; approves and finally adopts the Report as filed; determines that the Charge for Fiscal Year 20 25-26 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 2025-26 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, 2025, 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, 2025, 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 15th day of July, 2025. _____________________________ 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. 2025-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on July 15, 2025. ______________________________ City Clerk A-2 01203.0006 2019588.1 -3- A-3 1 CITY OF RANCHO PALOS VERDES FISCAL YEAR 2025-26 PRELIMINARY ANNUAL REPORT FOR ABALONE COVE SEWER SERVICE CHARGE July 7 Prepared by: 101 Progress, Suite 250 Irvine, CA 92618 www.weareharris.com B-1 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 2 TABLE OF CONTENTS Statement Of Engineer ...............................................................................................................................................2 Introduction ..............................................................................................................................................................4 Cost Estimate .............................................................................................................................................................5 District Diagrams .......................................................................................................................................................6 Method Of Apportionment ........................................................................................................................................7 Sewer Service Charge Roll ........................................................................................................................................ 11 B-2 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 3 STATEMENT OF ENGINEER AGENCY: CITY OF RANCHO PALOS VERDES PROJECT: ABALONE COVE SEWER SERVICE CHARGE TO: THE CITY COUNCIL FOR THE ABALONE COVE SEWER SERVICE CHARGE CITY OF RANCHO PALOS VERDES STATE OF CALIFORNIA ENGINEER’S REPORT FOR FISCAL YEAR 2025-2026 The preparation of this Annual Report (“Report”) is in accordance with the obligation of the City Council for the City of Rancho Palos Verdes to levy the Abalone Cove Sewer Service Charge for Fiscal Year 2025-2026. The charge applies to each parcel within the Abalone Cove Sewer District that discharges sewage into the District’s sewer system. Services funded by this charge will be provided through June 30, 2026. In conclusion, it is my professional opinion that the costs and expenses of the District have been properly allocated to the lots and parcels within the boundaries in proportion to the estimated benefit received by each parcel from the services provided. DATED 24th of June, 2024 Alison M. Bouley, P.E., Assessment Engineer R.C.E. No. C61383 Engineer of Work County of San Diego State of California B-3 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 4 INTRODUCTION The Abalone Cover Sewer Service Charge District (the “District”) was established to fund the ongoing operation and maintenance of the sewer facilities serving the Abalone Cove area. The detailed plans and specifications of the District improvements for these improvements are on file with the City Engineer and are incorporated into this report by reference. The Abalone Cove Sewer Service Charge is levied under the authority of the California Health and Safety Code, Sections 5471 et seq. (“the Code"). Charges are collected by the County property tax roll and are payable in the same manner and at the same time as property taxes. This report provides the data necessary to establish the annual charge for each parcel and is submitted to the City Clerk for filing. Once filed, the report remains available for public inspection. To ensure a reliable source of funding for the sewer system’s ongoing operation and maintenance, the City Council established the Abalone Cove Sewer Service Charge in compliance with Proposition 218, Article XIIID, Section 6(b) of the California Constitution. The charge was approved following a properly noticed public hearing held on July 17, 2001. As the majority protest threshold was not met, the charge was adopted, including provisions for an annual increase not to exceed 7%, tied to the Consumer Price Index (“CPI”), as outlined in City Code Section 13.06.020. This report has been prepared in accordance with the methodology and rates originally approved by the City Council in 2001. Each year, the Council reviews current and projected costs, evaluates available fund balances, and sets the rates for the upcoming fiscal year, adjusting the charges as necessary to reflect actual and anticipated expenses. B-4 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 5 COST ESTIMATE The estimated annual cost of the Abalone Cove Sewer Service Charge is provided below in Table 1 below. Gravity Subsystem Line Maintenance or replacement $16,124.25 Emergency Work $2,119,416.15 $2,135,540.40 Force Main Subsystem Line Maintenance $0.00 Pump Maintenance or replacement $33,056.62 Emergency Generator and Refueling $159,893.00 Emergency Work $112,609.74 $305,559.36 Low Pressure System Line Maintenance $16,124.25 Pump Maintenance or replacement $53,194.87 Emergency Repairs $608,081.12 $677,400.24 Subtotal $3,118,500.00 Administrative Costs Salaries $224,000.00 Edison $1,093.00 County Charge for Collections $500.00 Professional Technical (Engineer's Report)$6,763.84 Phone Services $2,643.16 Subtotal $235,000.00 Total Maintenance/ Operation Costs $3,353,500.00 Total City Contribution ($3,293,326.57) TOTAL ANNUAL CHARGE TO LEVY $60,173.43 Table 1- Estimated Annual Costs B-5 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 6 DISTRICT DIAGRAM The assessment diagram for the District is on file with the Office of the City Engineer and available for public review. B-6 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 7 METHOD OF APPORTIONMENT Equivalent Residential Units The sewer flow rates used to calculate the user charge are based on standards established by the Los Angeles County Sanitation District (LACSD), as outlined in their Master Service Charge Ordinance of South Bay Cities Sanitation District of Los Angeles County, adopted on March 18, 1998. This ordinance defines user categories and assigns average sewer flow rates for each use type within the District. Under these standards, a single-family residential parcel is assigned an average flow of 260 Gallons Per Day (“GPD”). Accordingly, 260 GPD is defined as one Equivalent Residential Unit (“ERU”). All other parcel types are charged based on their estimated daily sewer flow, divided by 260 GPD to determine the number of ERUs assigned. Vacant and Red-Tagged parcels are considered to have no sewer usage and are therefore assigned zero ERUs. Red-Tagged parcels refer to properties that have been impacted by natural disasters and formally designated by the City as non-habitable. For the Abalone Cove Beach parcels, flow estimates are based on future improvements, which include seven toilet facilities and two showers. Flow rates for these types of facilities were provided by the City of Los Angeles Bureau of Sanitation. Table 2 summarizes the user categories within the District, the flow rates, and the ERU calculation for each use type. Sewer System Components The Abalone Cove sewer system is comprised of three types of components or subsystems: 1. A gravity subsystem 2. A force main subsystem, and 3. A low-pressure subsystem. 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: 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 and/or Red-Tagged Property 0 0 Table 2- ERU Calculation Summary Table B-7 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 8  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 and 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. Land Use Description Parcels Bldg SF ERU's Single Family Home (Including Apartments)110 0 121.00 Church 1 6,144 1.18 School/ Nursery, Beach with 2 ahowers & 7 toilets 0 0 0.00 Recreational 1 0 1.00 Vacant and/or Red-Tagged Property 71 0 0.00 Total:183 6,144 123.18 Table 3 - Land Use Inventory B-8 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 9 Table 5 Provides a summary of the annual Sewer User Charge rates for each of the Rate Zones. Zone ERU's Subsystem ERU's A 42.00 Gravity 123.18 B 38.00 Force Main 48.00 C 33.18 Low Pressure 43.18 D 10.00 Table 4- ERU Distribution by Rate Zone and Subsystem Zone A Zone B Zone C Zone D Rate (Budget/ERU) Gravity- Admin $2,296,467.77 x x x x $18,642.95 Force Main $328,585.32 x x $6,845.53 Low Pressure $728,446.92 x x $16,869.41 $18,642.95 $25,488.48 $35,512.36 $42,357.89 $18,428.23 $24,644.46 $35,220.92 $41,416.69 $214.72 $844.02 $291.44 $941.20 $208.47 $819.44 $282.96 $913.79 $200.45 $787.92 $272.08 $878.64 $193.30 $759.81 $262.34 $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 $726.49Total 2015-16 User Charge ($/ERU) Total 2021-22 User Charge ($/ERU) Total 2020-21 User Charge ($/ERU) Total 2019-20 User Charge ($/ERU) Total 2018-19 User Charge ($/ERU) Total 2017-18 User Charge ($/ERU) Total 2016-17 User Charge ($/ERU) Total 2022-23 User Charge ($/ERU) Table 5- Summary of Annual Charge Rates per ERU Subsystem & Budget Total 2025-26 User Charge without Contribution ($/ERU) City Contribution ($/ERU) Total 2024-25 User Charge ($/ERU) Total 2023-24 User Charge ($/ERU) Total 2025-26 User Charge ($/ERU) B-9 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 10 As shown in Table 6 below, and pursuant to Ordinance No. 367U and subsequently Ordinance No. 368, the annual increase in the Sewer User Charge rates 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 2025 CPI for is equal to 3.0%. Zone Fiscal Year 2024-25 Max Rates (per ERU)CPI Fiscal Year 2025-26 Max Rates (per ERU) A $208.47 3%$214.72 B $819.44 3%$844.02 C $282.96 3%$291.44 D $913.79 3%$941.20 Table 6- Summary of Abalone Cove Sewer Service Charge Rates Land Use Description Zone A Zone B Zone C Zone D Fiscal Year 2025-26 Rate per ERU $214.72 $844.02 $291.44 $941.20 Single Family Home, per dwelling $214.72 $844.02 $291.44 $941.20 Church (per ERU)-- -- $291.44 -- School/ Nursery (per ERU)-- -- $291.44 -- Beach (2 showers; 7 toilets) (per parcel)-- -- $0.00 -- Vacant and/or Red-Tagged Property -- -- -- -- Table 7- Sample Calculations B-10 Financial Report Abalone Cove Sewer Service Charge City of Rancho Palos Verdes Fiscal Year 2025-26 11 SEWER SERVICE CHARGE ROLL The following pages present the Preliminary Sewer Service Charge Roll for FY 2025-26. www.WeAreHarris.com Donna Segura Project Manager Donna.Segura@WeAreHarris.com P: 949.536.2512 B-11 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy 7572001005 A Vacant 0.00 $0.00 7572002017 B Residential 1.00 $844.02 7572002018 B Residential 1.00 $844.02 7572002019 B Residential 1.00 $844.02 7572002020 B Vacant 0.00 $0.00 7572002021 A Residential 12.00 $2,576.64 7572002021 D Residential 1.00 $941.20 7572002025 B Residential 1.00 $844.02 7572002026 B Residential 1.00 $844.02 7572002027 B Residential 1.00 $844.02 7572002029 B Vacant 0.00 $0.00 7572002030 B Residential 1.00 $844.02 7572002032 B Residential 1.00 $844.02 7572002033 B Residential 1.00 $844.02 7572009007 A Residential 1.00 $214.72 7572009009 A Residential 1.00 $214.72 7572009010 A Residential 1.00 $214.72 7572009011 A Vacant 0.00 $0.00 7572009012 A Residential 1.00 $214.72 7572009013 A Residential 1.00 $214.72 7572009014 A Vacant 0.00 $0.00 7572009015 A Vacant 0.00 $0.00 7572009016 A Residential 1.00 $214.72 7572009017 A Residential 1.00 $214.72 7572009018 A Vacant 0.00 $0.00 7572009019 A Residential 1.00 $214.72 7572009020 A Residential 1.00 $214.72 7572009021 A Residential 1.00 $214.72 7572009022 A Vacant 0.00 $0.00 7572009023 A Residential 1.00 $214.72 7572009024 A Residential 1.00 $214.72 7572009029 A Residential 1.00 $214.72 7572009030 A Vacant 0.00 $0.00 7572010009 B Residential 1.00 $844.02 7572010010 A Vacant 0.00 $0.00 7572010011 A Residential 1.00 $214.72 7572010012 A Residential 1.00 $214.72 7572010013 A Vacant 0.00 $0.00 7572010014 A Vacant 0.00 $0.00 7572010015 A Residential 1.00 $214.72 7572010016 C Residential 1.00 $291.44 7572010017 C Residential 1.00 $291.44 7572010018 C Residential 1.00 $291.44 7572010019 A Vacant 0.00 $0.00 7572010020 C Residential 1.00 $291.44 PRELIMINARY TAX ROLL B-12 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy PRELIMINARY TAX ROLL 7572010021 A Vacant 0.00 $0.00 7572010022 A Residential 1.00 $214.72 7572010023 A Vacant 0.00 $0.00 7572010024 A Residential 1.00 $214.72 7572010025 A Residential 0.00 $0.00 7572010026 A Residential 0.00 $0.00 7572010027 A Residential 0.00 $0.00 7572011005 B Residential 1.00 $844.02 7572011006 D Residential 1.00 $941.20 7572011007 D Vacant 0.00 $0.00 7572011008 B Residential 1.00 $844.02 7572011009 B Residential 1.00 $844.02 7572011010 D Residential 1.00 $941.20 7572011011 D Residential 1.00 $941.20 7572011012 B Residential 1.00 $844.02 7572011013 B Vacant 0.00 $0.00 7572011014 D Residential 1.00 $941.20 7572011015 D Vacant 0.00 $0.00 7572011016 B Residential 1.00 $844.02 7572011017 B Vacant 0.00 $0.00 7572011018 D Vacant 0.00 $0.00 7572011019 D Residential 1.00 $941.20 7572011020 B Residential 1.00 $844.02 7572011021 B Residential 1.00 $844.02 7572011022 D Residential 1.00 $941.20 7572011023 D Vacant 0.00 $0.00 7572011024 B Residential 1.00 $844.02 7572011025 B Residential 1.00 $844.02 7572011026 B Residential 1.00 $844.02 7572011027 B Residential 1.00 $844.02 7572011028 B Vacant 0.00 $0.00 7572011029 B Residential 1.00 $844.02 7572011030 B Residential 1.00 $844.02 7572011031 B Residential 1.00 $844.02 7572012016 A Recreational 1.00 $214.72 7572012017 A Residential 1.00 $214.72 7572012018 C Residential 1.00 $291.44 7572012019 C Vacant 0.00 $0.00 7572012020 C Residential 1.00 $291.44 7572012021 C Vacant 0.00 $0.00 7572012022 C Residential 1.00 $291.44 7572012023 C Residential 1.00 $291.44 7572012026 C Church 0.66 $344.35 7572012028 A Vacant 0.00 $0.00 7572013001 B Residential 1.00 $844.02 B-13 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy PRELIMINARY TAX ROLL 7572013002 A Vacant 0.00 $0.00 7572013003 A Vacant 0.00 $0.00 7572013004 B Residential 1.00 $844.02 7572013005 B Residential 1.00 $844.02 7572013006 B Vacant 0.00 $0.00 7572013007 A Vacant 0.00 $0.00 7572013008 A Vacant 0.00 $0.00 7572013009 A Vacant 0.00 $0.00 7572013010 A Residential 1.00 $214.72 7572013011 B Residential 0.00 $0.00 7572013012 A Residential 1.00 $214.72 7572013013 B Residential 1.00 $844.02 7572013014 B Residential 1.00 $844.02 7572013015 B Residential 1.00 $844.02 7572013016 B Residential 1.00 $844.02 7572013017 B Vacant 0.00 $0.00 7572013018 B Residential 1.00 $844.02 7572013019 B Residential 1.00 $844.02 7572014012 A Residential 1.00 $214.72 7572014013 A Residential 0.00 $0.00 7572014014 A Residential 1.00 $214.72 7572014015 A Residential 1.00 $214.72 7572014016 A Vacant 0.00 $0.00 7572014017 C Vacant 0.00 $0.00 7572014018 C Residential 1.00 $291.44 7572014019 C Vacant 0.00 $0.00 7572014020 C Residential 1.00 $291.44 7572014021 C Residential 1.00 $291.44 7572014022 B Residential 1.00 $844.02 7572014023 B Residential 1.00 $844.02 7572014024 B Residential 1.00 $844.02 7572014025 C Vacant 0.00 $0.00 7572014026 C Residential 1.00 $291.44 7572014027 C Residential 1.00 $291.44 7572014028 C Residential 1.00 $291.44 7572014029 A Residential 1.00 $214.72 7572014030 A Residential 1.00 $214.72 7572014031 A Residential 1.00 $214.72 7572014032 A Residential 1.00 $214.72 7572014033 A Residential 0.00 $0.00 7572015010 C Vacant 0.00 $0.00 7572015011 C Residential 1.00 $291.44 7572015012 C Residential 1.00 $291.44 7572015013 C Residential 1.00 $291.44 7572015014 C Vacant 0.00 $0.00 B-14 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy PRELIMINARY TAX ROLL 7572015015 C Vacant 0.00 $0.00 7572015016 C Vacant 0.00 $0.00 7572015017 C Vacant 0.00 $0.00 7572015018 C Vacant 0.00 $0.00 7572016002 C Vacant 0.00 $0.00 7572016003 C Residential 1.00 $291.44 7572016004 C Residential 0.00 $0.00 7572016005 C Residential 1.00 $291.44 7572016006 C Residential 1.00 $291.44 7572016007 C Vacant 0.00 $0.00 7572016008 C Vacant 0.00 $0.00 7572016009 C Residential 1.00 $291.44 7572016010 B Vacant 0.00 $0.00 7572016011 B Vacant 0.00 $0.00 7572016012 B Residential 1.00 $844.02 7572016013 B Residential 1.00 $844.02 7572016014 B Vacant 0.00 $0.00 7572016015 D Residential 0.00 $0.00 7572016016 D Residential 0.00 $0.00 7572016018 D Residential 1.00 $941.20 7572016020 D Vacant 0.00 $0.00 7572016021 D Residential 0.00 $0.00 7572016022 D Vacant 0.00 $0.00 7572016023 D Residential 1.00 $941.20 7572016024 D Vacant 0.00 $0.00 7572016026 C Vacant 0.00 $0.00 7572016027 D Residential 0.00 $0.00 7572017001 C Vacant 0.00 $0.00 7572017002 C Residential 1.00 $291.44 7572017003 C Vacant 0.00 $0.00 7572017004 C Vacant 0.00 $0.00 7572017005 C Vacant 0.00 $0.00 7572017006 C Residential 1.00 $291.44 7572017007 C Residential 1.00 $291.44 7572017009 C Residential 0.00 $0.00 7572017010 C Residential 1.00 $291.44 7572017011 C Residential 1.00 $291.44 7572017013 C Residential 1.00 $291.44 7572017014 C Vacant 0.00 $0.00 7572017015 C Residential 1.00 $291.44 7572017016 A Residential 1.00 $214.72 7572017018 D Residential 1.00 $941.20 7572017028 C Residential 1.00 $291.44 7572017029 C Residential 1.00 $291.44 7572017034 C Residential 1.00 $291.44 B-15 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy PRELIMINARY TAX ROLL 7572018900 C Recreational 0.00 $0.00 7572019005 C Residential 1.00 $291.44 181 Unique Parcels $60,173.43 B-16 NPH for Ab Cove Sewer Charge Levy - Page 2 of 2C-1 ORDINANCE NO. 367U AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING AN ANNUAL SEWER SERVICE CHARGE AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE AND DECLARING THE URGENCY THEREOF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council finds: 1.1 The City of Rancho Palos Verdes (the "City") is empowered by Health and Safety Code Section 5471 and Government Code Section 54344 to prescribe and collect rates and charges, including sewer service charges, for services and facilities furnished by the City in connection with its sewerage system. 1.2 In January 1981, the City Council formed the Abalone Cove Landslide Abatement District (the "District") pursuant to the provisions of Division 17 of the California Public Resources Code. The properties included in the District are set forth on the map attached hereto as Exhibit A and incorporated herein by this reference. Properties in the District are assessed annually to pay for the cost of maintaining landslide mitigation improvements, including but not limited to, drainage culverts and dewatering wells, within the District. 1.3 To further mitigate potential landslide hazards in the District, the City recently installed sanitary sewers. The City is responsible for maintaining and operating all sanitary sewers within its boundaries. The amount of money from ad valorem taxes available to the City is inadequate to fund the cost of sewer service in the District. 1.4 Pursuant to Health and Safety Code Section 5473, the City Council may elect to have such sewer service charges collected on the County of Los Angeles tax roll in any forthcoming fiscal year 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 in the manner prescribed by Sections 5473.1 to 5473.11, inclusive, of said Code. 1.5 The City Council has determined that the sewer service charges should be collected on the tax roll. Pursuant to Section 5473.1 of the Health and Safety Code, the City Council has caused a written report ("Written Report") to be prepared and filed with the City Clerk containing a description of each parcel of real property within the District to which the sewer service charges D-1 are applicable and the amount of the sewer service charge for each such parcel for fiscal year 2001-02. 1.6 On June 1, 2001, the City Clerk caused a notice of filing of the Written Report and proposed Ordinance and of the time and place of the hearing thereon to be mailed the owner of each parcel of real property to be charged as reflected in the last equalized assessment roll available on the date the Written Report was prepared, and at the address shown on the assessment roll or otherwise known to the City Clerk. On June 28, 2001, and July 5, 2001, the City Clerk further caused a notice of filing of the Written Report and proposed Ordinance and of the time and place of the hearing thereon to be published pursuant to Section 6066 of the Government Code. 1.7 On July 17, 2001, at the time and day set forth in the notice, the City Council conducted a hearing on the Written Report and the Ordinance and heard and considered all objections and protests thereto. Section 2. Title 13 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new chapter 13.06 to read as follows: Chapter 13.06 Sewer Service Charges — Abalone Cove Landslide Abatement District. 13.06.010. Purpose. This chapter establishes an annual sewer service charge for all parcels of real property in the Abalone Cove Landslide Abatement District connected to the sanitary sewer system. The City is responsible for providing sewer service within its boundaries. The amount of money from ad valorem taxes available to the City is inadequate to fund the cost of service for the sanitary sewers. The City's sewer service in the District must be continued without interruption in order to reduce the potential landslide hazard and to protect the public health, safety and welfare of the residents therein and the general public. The purpose of this chapter is to provide financing for the ongoing maintenance and operation of the Abalone Cove Landslide Abatement District sanitary sewer system. 13.06.020. Creation of Rate Zones. The sewer system in the District is comprised of three types of subsystems: (i) a gravity subsystem; (ii) a force main subsystem; and (iii) a low-pressure subsystem. Sewer service to each parcel in the District is provided through one or more of these subsystems. Each subsystem requires different levels of operations maintenance and, therefore, has different maintenance costs associated with it. The District has been divided into four zones as shown in Table A set out in Section Ordinance No. 367U Page 2of7 D-2 13.06.050 below and on the Abalone Cove Rate Zone Map on file with the Department of Public Works. Each zone corresponds to the specific combination of subsystems used by the parcels located in that zone. 13.06.030. Charges Levied. An annual sewer service charge is levied upon each parcel of real property in the District, as shown on the map adopted by the City Council on January 6, 1981, attached as Exhibit A to Resolution No. 81-4 and on file with the City Clerk, and connected to the sanitary sewer system. The annual sewer service charge is necessary to pay for the cost for services and facilities furnished by the City beginning October 2001. The amount of the sewer service charge shall be computed by multiplying the Equivalent Residential Units ("ERUs") for the current land use on the parcel, as of the 1st day of March of each year, as shown on Table B, set out in Section 13.06.060 below, by the maximum annual charge per ERU for the applicable zone as shown in Table C, set out in Section 13.06.070 below. For the purposes of this Chapter, the land uses within the District have been assigned sewer flow rates, expressed in ERUs, based on the Los Angeles County Sanitation District standards, as set forth in the Master Service Charge Ordinance of South Bay Cities Sanitation District of Los Angeles County as adopted March 18, 1998. The flow rates for the Abalone Cove Beach property are based on information provided by the City of Los Angeles Bureau of Sanitation. The sewer service charge may be increased annually by an amount equal to the annual increase in the Consumer Price Index for all Urban Consumers for the Los Angeles-Anaheim-Riverside Area (the "CPI"), including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year, not to exceed a maximum increase of seven percent (7%) per year. For any fiscal year that the sewer service charge is not increased by the allowable increase in the CPI for that year, the City may add the increase for that year to the CPI increase in subsequent years. 13.06.040 Collection of Charges. The sewer service charge shall be 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. For any fiscal year that the sewer service charge is not collected on the tax roll, the City may collect all or a portion of the sewer service charge for such year on the tax roll in the following fiscal year or years. Ordinance No. 367U Page 3 of 7 D-3 13.06.050. Rate zones — Table A. TABLE A Rate Zones Zone Sewer Subsystem Components A Gravity subsystem only B Gravity & Force Main subsystems C Gravity & Low-Pressure subsystems D Gravity & Force Main & Low Pressure subsystems 13.06.060. ERUs for various land uses — Table B. TABLE B Number of ERUs by Land Use Land Use ERU Single Family Residential ERU = 1 Church ERU = 0.19/1000 sq. ft. of building School/Nursery ERU = 0.77/1000 sq. ft. of building Beach toilet ERU = 0.46/toilet Beach shower ERU = 0.33/shower Vacant ERU = 0 13.06.070. Maximum Annual Charge per ERU by Rate Zone —Table C. TABLE C Maximum Annual Charge per ERU by Rate Zone— Fiscal Year 2001-02 Zone Maximum Charge per ERU (FY 2001-02) A 119.07 B 479.39 C 161.61 D 521.93 Section 3. The City provides sanitary sewer service within the boundaries of the District. The amount of money from ad valorem taxes available to the City is inadequate to fund the cost of this service. The City's sanitary sewer service must be continued without interruption in order to protect the public health, Ordinance No. 367U Page 4 of 7 D-4 safety and welfare of the residents therein and the general public. Therefore, it is necessary to impose a sewer service charge upon the properties within the District. In order to avoid the substantial costs of establishing a billing system for the collection of the sewer service charge, the City Council has previously determined that the sewer service charge should be collected on the tax roll. In order for the sewer service charge to be collected without interruption of service, the City must submit the fee to the County of Los Angeles for collection on the tax roll prior to August 10th each year. Because of the County's August 10th deadline, there is insufficient time for this ordinance to become effective without a single reading and immediate effectiveness. It is therefore urgent that the establishment of sewer service charge effected by this ordinance become effective immediately to prevent an interruption in the sanitary sewer service provided by the City. An interruption in such service is of great public concern. The sanitary sewer system in the District was installed to reduce the risk of landslide activity in the area. It is imperative that the City's sewer service in the District be continued without interruption in order to achieve this purpose and adequately protect the public health, safety and welfare of the residents therein and the general public. An interruption in sanitary sewer service in the District may create an increased risk of landslide activity, may create a public nuisance, or lead to other problems affecting the health, welfare and safety of the residents of the City and surrounding cities. This ordinance is necessary for the immediate preservation of the public health, safety and welfare, declares the facts constituting the urgency, and is passed by at least a four-fifths vote of the City Council. Accordingly, this measure is adopted immediately upon introduction pursuant to Government Code Section 36934 and shall take effect immediately pursuant to Government Code Section 36937(b). Section 4. Commencing with fiscal year 2001-2002, the annual sewer service charge shall be collected on the tax roll, in the same manner, by the same persons and at the same time as, together and not separately from, the general taxes of the City in the amounts shown in the Written Report. In subsequent tax years, the City Council shall cause a written report to be prepared and filed with the City Clerk on or before June 1st of each year. The City Council shall further hold a duly noticed public hearing on the Written Report and hear and consider all objections and protests thereto. If a majority protest is not received, the City Council may adopt the Written Report and may order the annual sewer service charge shall be collected on the tax roll, in the same manner, by the same persons and at the same time as, together and not separately from, the general taxes of the City in the amounts shown in the Written Report. Section 5. On or before August 10th of each year, commencing with Fiscal Year 2001-2002, the City Clerk shall file a copy of the Written Report with the City Treasurer with a statement endorsed on said Written Report over the City Clerk's signature that the report has been finally adopted by the City Council. Upon receipt of the Written Report from the City Clerk, the City Treasurer shall Ordinance No. 367U Page 5 of 7 D-5 enter the amount of the charges against the parcels as they appear on the current assessment roll. Section 6. On or before August 10th of each year, the City Clerk shall file with the County Auditor of the County of Los Angeles a copy of the Written Report, with a statement endorsed thereon over the City Clerk's signature that the Written Report has been finally adopted by the City Council, with a certified copy of this Ordinance. Section 7. If any section, subsection, subdivision, sentence, clause, p hrase, or portion of this ordinance, or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. Section 8. The City Clerk is directed to certify to the enactment of this Ordinance and to cause this Ordinance to be posted as required by law. PASSED, APPROVED AND ADOPTED THIS 17th DAY OF JULY, 2001. 1/ T ayor ATTEST: City Cerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss CITY OF RANCHO PALOS VERDES ) I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 367U was duly and regularly adopted by the City Council of said City at a regular meeting thereof held on July 17, 2001 and that the same was passed and adopted by the following roll call vote: Ordinance No. 367U Page 6 of 7 D-6 AYES: Gardiner, McTaggart, Stern, and Mayor Lyon NOES: None ABSENT: Ferraro ABSTAIN: None L CITY CLERK Ordinance No. 367U Page 7 of 7 D-7 1.' Si• ip ,'• r P *R. N. •1 CL• 1•1. t t ''.. 'jb0.0.iii 0010 1..7 PI"' is. •••°.4s:..)•7 • 71% ic 4„; \' t." . 0 t Off' \ , b. ____......- 4, . 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JAN.tS,tW,I,D-8 All RANCHO PALOS VERDES STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS AFFIDAVIT OF POSTING CITY OF RANCHO PALOS VERDES) The undersigned, being first duly sworn, deposes and says: That at all times herein mentioned, she was and now is the appointed City Clerk of the City of Rancho Palos Verdes; That on July 31, 2001 she caused to be posted the following document entitled: ORDINANCE NO. 367U AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING AN ANNUAL SEWER SERVICE CHARGE AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE AND DECLARING THE URGENCY THEREOF. a copy of which is attached hereto, in the following locations: City Hall Hesse Park 30940 Hawthorne Blvd. 29301 Hawthorne Blvd Rancho Palos Verdes Rancho Palos Verdes Ladera Linda Community Center Ryan Park 32201 Forrestal Drive 30359 Hawthorne Blvd., Rancho Palos Verdes Rancho Palos Verdes I certify under penalty of perjury that the foregoing is a true and correct affadavit of posting.ji 0 #to l ,f ' Ci y Clerk W:\FORMS\Form 150-Affadavit of Posting Ordinances.doc 30940 Hawthorne Boulevard/Rancho Palos Verdes,CA 90275-5391 /(310)377-0360/Fax(310)544-5291 www.palosverdes.com/rpv D-9 ORDINANCE NO. 368 AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING AN ANNUAL SEWER SERVICE CHARGE AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council finds: 1.1 The City of Rancho Palos Verdes (the "City") is empowered by Health and Safety Code Section 5471 and Government Code Section 54344 to prescribe and collect rates and charges, including sewer service charges, for services and facilities furnished by the City in connection with its sewerage system. 1.2 In January 1981, the City Council formed the Abalone Cove Landslide Abatement District (the "District") pursuant to the provisions of Division 17 of the California Public Resources Code. The properties included in the District are set forth on the map attached hereto as Exhibit A and incorporated herein by this reference. Properties in the District are assessed annually to pay for the cost of maintaining landslide mitigation improvements, including but not limited to, drainage culverts and dewatering wells, within the District. 1.3 To further mitigate potential landslide hazards in the District, the City recently installed sanitary sewers. The City is responsible for maintaining and operating all sanitary sewers within its boundaries. The amount of money from ad valorem taxes available to the City is inadequate to fund the cost of sewer service in the District. 1.4 Pursuant to Health and Safety Code Section 5473, the City Council may elect to have such sewer service charges collected on the County of Los Angeles tax roll in any forthcoming fiscal year 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 in the manner prescribed by Sections 5473.1 to 5473.11, inclusive, of said Code. 1.5 The City Council has determined that the sewer service charges should be collected on the tax roll. Pursuant to Section 5473.1 of the Health and Safety Code, the City Council has caused a written report ("Written Report") to be prepared and filed with the City Clerk containing a description of each parcel of real property within the District to which the sewer service charges are applicable and the amount of the sewer service charge for each such parcel for fiscal year 2001-02. 1.6 On June 1, 2001, the City Clerk caused a notice of filing of the Written Report and proposed Ordinance and of the time and place of the hearing thereon to be mailed the owner of each parcel of real property to be charged as reflected in the last equalized assessment roll available on the date the Written Report D-10 was prepared, and at the address shown on the assessment roll or otherwise known to the City Clerk. On June 28, 2001, and July 5, 2001, the City Clerk further caused a notice of filing of the Written Report and proposed Ordinance and of the time and place of the hearing thereon to be published pursuant to Section 6066 of the Government Code. 1.7 On July 17, 2001, at the time and day set forth in the notice, the City Council conducted a hearing on the Written Report and the Ordinance and heard and considered all objections and protests thereto. Section 2. Title 13 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new chapter 13.06 to read as follows: Chapter 13.06 Sewer Service Charges -- Abalone Cove Landslide Abatement District. 13.06.010. Purpose. This chapter establishes an annual sewer service charge for all parcels of real property in the Abalone Cove Landslidegpp Abatement District connected to the sanitary sewer system. The City is responsible for providing sewer service within its boundaries. The amount of money from ad valorem taxes available to the City is inadequate to fund the cost of service for the sanitary sewers. The City's sewer service in the District must be continued without interruption in order to reduce the potential landslide hazard and to protect the public health, safety and welfare of the residents therein and the general public. The purpose of this chapter is to provide financing for the ongoing maintenance and operation of the Abalone Cove Landslide Abatement District sanitary sewer system. 13.06.020. Creation of Rate Zones. The sewer system in the District is comprised of three types of subsystems: (i) a gravity subsystem; (ii) a force main subsystem; and (iii) a low-pressure subsystem. Sewer service to each parcel in the District is provided through one or more of these subsystems. Each subsystem requires different levels of operations maintenance and, therefore, has different maintenance costs associated with it. The District has been divided into four zones as shown in Table A set out in Section 13.06.050 below and on the Abalone Cove Rate Zone Map on file with the Department of Public Works. Each zone corresponds to the specific combination of subsystems used by the parcels located in that zone. 13.06.030. Charges Levied. An annual sewer service charge is levied upon each parcel of real property in the District, as shown on the map adopted by the City Council on January 6, 1981, attached as Exhibit A to Resolution No. 81-4 and on file with the City Clerk, and connected to the sanitary sewer system. The annual sewer service charge is necessary to Ordinance 368 Page 2 - D-11 pay for the cost for services and facilities furnished by the City beginning October 2001. The amount of the sewer service charge shall be computed by multiplying the Equivalent Residential Units ("ERUs") for the current land use on the parcel, as of the 1st day of March of each year, as shown on Table B, set out in Section 13.06.060 below, by the maximum annual charge per ERU for the applicable zone as shown in Table C, set out in Section 13.06.070 below. For the purposes of this Chapter, the land uses within the District have been assigned sewer flow rates, expressed in ERUs, based on the Los Angeles County Sanitation District standards, as set forth in the Master Service Charge Ordinance of South Bay Cities Sanitation District of Los Angeles County as adopted March 18, 1998. The flow rates for the Abalone Cove Beach property are based on information provided by the City of Los Angeles Bureau of Sanitation. The sewer service charge may be increased annually by an amount equal to the annual increase in the Consumer Price Index for all Urban Consumers for the Los Angeles-Anaheim-Riverside Area (the "CPI"), including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year, not to exceed a maximum increase of seven percent (7%) per year. For any fiscal year that the sewer service charge is not increased by the allowable increase in the CPI for that year, the City may add the increase for that year to the CPI increase in subsequent years. 13.06.040 Collection of Charges. The sewer service charge shall be 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. For any fiscal year that the sewer service charge is not collected on the tax roll, the City may collect all or a portion of the sewer service charge for such year on the tax roll in the following fiscal year or years. 13.06.050. Rate zones —Table A. TABLE A Rate Zones Zone Sewer Subsystem Components A Gravity subsystem only B Gravity & Force Main subsystems C Gravity & Low-Pressure subsystems D Gravity & Force Main & Low Pressure subsystems 13.06.060. ERUs for various land uses —Table B. TABLE B Ordinance 368 Page 3 - D-12 Number of ERUs by Land Use Land Use ERU Single Family Residential ERU = 1 Church ERU = 0.19/1000 sq. ft. of building School/Nurse ry ERU = 0.77/1000 sq. ft. of building Beach toilet ERU = 0.46/toilet Beach shower ERU = 0.33/shower Vacant ERU = 0 13.06.070. Maximum Annual Charge per ERU by Rate Zone —Table C. TABLE C Maximum Annual Charge per ERU by Rate Zone— Fiscal Year 2001-02 Zone Maximum Charge per ERU (FY 2001-02) A 119.07 B 479.39 C 161.61 D 521.93 Section 3. The City provides sanitary sewer service within the boundaries of the District. The amount of money from ad valorem taxes available to the City is inadequate to fund the cost of this service. The City's sanitary sewer service must be continued without interruption in order to protect the public health, safety and welfare of the residents therein and the general public. Therefore, it is necessary to impose a sewer service charge upon the properties within the District. In order to avoid the substantial costs of establishing a billing system for the collection of the sewer service charge, the City Council has previously determined that the sewer service charge should be collected on the tax roll. In order for the sewer service charge to be collected without interruption of service, the City must submit the fee to the County of Los Angeles for collection on the tax roll prior to August 10th each year. Because of the gCounty's August 10th deadline, there is insufficient time for this ordinance to become effective without a single reading and immediate effectiveness. It is therefore urgent that the establishment of sewer service charge effected by this ordinance become effective immediately to prevent an interruption in the sanitary sewer service provided by the City. An interruption in such service is of great public concern. The sanitary sewer system in the District was installed to reduce the risk of landslide activity in the area. It is imperative that the City's sewer service in the District be continued without interruption in order to achieve this purpose and adequately protect the public health, safety and welfare of the residents therein and the general public. An interruption in sanitary sewer service in the District may create an increased risk of landslide activity, Ordinance 368 Page 4 - D-13 may create a public nuisance, or lead to other problems affecting the health, welfare and safety of the residents of the City and surrounding cities. This ordinance is necessary for the immediate preservation of the public health, safety and welfare, declares the facts constituting the urgency, and is passed by at least a four-fifths vote of the City Council. Accordingly, this measure is adopted immediately upon introduction pursuant to Government Code Section 36934 and shall take effect immediately pursuant to Government Code Section 36937(b). Section 4. Commencing with fiscal year 2001-2002, the annual sewer service charge shall be collected on the tax roll, in the same manner, by the same persons and at the same time as, together and not separately from, the general taxes of the City in the amounts shown in the Written Report. In subsequent tax years, the City Council shall cause a written report to be prepared and filed with the City Clerk on or before June 1st of each year. The City Council shall further hold a duly noticed public hearing on the Written Report and hear and consider all objections and protests thereto. If a majority protest is not received, the City Council may adopt the Written Report and may order the annual sewer service charge shall be collected on the tax roll, in the same manner, by the same persons and at the same time as, together and not separately from, the general taxes of the City in the amounts shown in the Written Report. Section 5. On or before August 10th of each year, commencing with Fiscal Year 2001-2002, the City Clerk shall file a copy of the Written Report with the City Treasurer with a statement endorsed on said Written Report over the City Clerk's signature that the report has been finally adopted by the City Council. Upon receipt of the Written Report from the City Clerk, the City Treasurer shall enter the amount of the charges against the parcels as they appear on the current assessment roll. Section 6. On or before August 10th of each year, the City Clerk shall file with the County Auditor of the County of Los Angeles a copy of the Written Report, with a statement endorsed thereon over the City Clerk's signature that the Written Report has been finally adopted by the City Council, with a certified copy of this Ordinance. Section 7. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. Section 8. The City Clerk is directed to certify to the enactment of this Ordinance and to cause this Ordinance to be posted as required by law. Ordinance 368 Page 5 - D-14 PAS SED, APPROVED AND ADOPTED THIS 17th DAY OF JULY, 2001. Hy( a r ATTEST: Cit, Clerk CITY CLERK STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss CITY OF RANCHO PALOS VERDES ) I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 368 p assed first reading on July 17, 2001, was duly and regularly yadoptedb the City Council of said City at a regular meeting thereof held on August 7, p y 2001 and that the same was passed and adopted by the following roll call vote: AYES: Ferraro, Gardiner, McTaggart, and Mayor Lyon NOES: None ABSENT. Stern 1 CITY LERK Ordinance 368 Page 6 - D-15 1.' Si• ip ,'• r P *R. N. •1 CL• 1•1. t t ''.. 'jb0.0.iii 0010 1..7 PI"' is. •••°.4s:..)•7 • 71% ic 4„; \' t." . 0 t Off' \ , b. ____......- 4, . Q, 00 4 9 mac. 5,0",.S vir 6.").. 4,.. _ bus: •. 1 .\24.5.1 L...-- , r' r` r 64S 'b Ng ev l dV T R kra: . 4---• it 0 1 tI I-: ---- ' m I . 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JAN.tS,tW,I,D-16 II RANCHO PALOS VERDES STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS AFFIDAVIT OF POSTING CITY OF RANCHO PALOS VERDES) The undersigned, being first duly sworn, deposes and says: That at all times herein mentioned, she was and now is the appointed City Clerk of the City of Rancho Palos Verdes; That on October 16, 2001 she caused to be posted the following document entitled: ORDINANCE NO. 368 AN ORDINANCE OF THE CITYCOUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING AN ANNUAL SEWER SERVICE CHARGE AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE. a copy of which is attached hereto, in the following locations: City Hall Hesse Park 30940 Hawthorne Blvd. 29301 Hawthorne Blvd Rancho Palos Verdes Rancho Palos Verdes Ladera Linda Community Center Ryan Park 32201 Forrestal Drive 30359 Hawthorne Blvd., Rancho Palos Verdes Rancho Palos Verdes I certify under penalty of perjury that the foregoing is a true and correct affidavit of posting. City Clerk 30940 Hawthorne Boulevard/Rancho Palos Verdes,CA 90275-5391/(310) 377-0360/Fax(310)544-5291 www.palosverdes.com/rpv D-17 E-1 E-2