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CC RES 2025-088 RESOLUTION NO. 2025-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING, NUNC PRO TUNC, AN UPDATED 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. 367U 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; and WHEREAS, on July 15, 2025, at a duly noticed public hearing, the City Council set the charge for FY 2025-26 at $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 charge was an increase by 3%, which is the CPI increase from the prior fiscal year. The total estimated FY 2025-26 revenue is less than that of FY 2024-25 despite the CPI increase, because 12 parcels with homes that were red-tagged due to landslide movement are no longer charged as they no longer use the sanitary sewer system; and, WHEREAS, it has come to the attention of the City that a red-tagged property was inadvertently included in the "ENGINEER'S REPORT FOR FISCAL YEAR 2025- 2026," prepared by Harris & Associated; and Whereas, the City Council wishes to up-date and correct such report nunc pro tunc to exclude a single red-tagged property from the annual assessment inadvertently included in the original report. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS: Section 1. The foregoing recitals are true and correct and incorporated herein by this reference. The City Council finds: Section 2. The City Council hereby adopts the attached "UPDATED ENGINEER'S REPORT FOR FISCAL YEAR 2025-2026," nunc pro tunc, to reflect the deletion of a single red-tagged residential property from the sewer assessment previously adopted as Resolution No. 2025-50, and hereby approves and re-adopts such updated report; deems the same as filed and dated; determines that the Charge for Fiscal Year 2025-26 against each parcel described in such update report shall be as 111 described in such 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. 01203 0006 2019588 1 Section 3. The City Clerk is directed to file a copy of the "UPDATED ENGINEER'S REPORT FOR FISCAL YEAR 2025-2026," with a statement endorsed on such report over the City Clerk's signature that Such report has been approved and finally adopted, with the City Treasurer on or before December 31, 2025, pursuant to Section 5 of the Ordinance. Section 4. The City Clerk is directed to file a copy of the "UPDATED ENGINEER'S REPORT FOR FISCAL YEAR 2025-2026," with a statement endorsed on the Report over the City Clerk's signature that such report has been approved and finally adopted, with the County Auditor of the County of Los Angeles on or before December 31, 2025, pursuant to Section 6 of Ordinance No. 367U and Ordinance No. 368. Section 5. The City Clerk is authorized to take such other action as is required to implement this Resolution. PASSED, APPROVED AND ADOPTED this 16th day of December, 2025. __-------- 7 _ Paul .Seo,- yo r A TEST: -City C le,rk 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. 2025-88 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on December 16, 2025. , Agtak___j City Clerk I 01203.0006 2019588 1 Resolution No.2025-88 Page 2 of 2 1 CITY OF RANCHO PALOS VERDES FISCAL YEAR 2025-26 PRELIMINARY ANNUAL REPORT FOR ABALONE COVE SEWER SERVICE CHARGE September 2025 Prepared by: 101 Progress, Suite 250 Irvine, CA 92618 www.weareharris.com 2025-88 Attachment 1 Page 1 of 14 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 2025-88 Attachment 1 Page 2 of 14 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 25th September, 2025 Alison M. Bouley, P.E., Assessment Engineer R.C.E. No. C61383 Engineer of Work County of San Diego State of California 2025-88 Attachment 1 Page 3 of 14 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. 2025-88 Attachment 1 Page 4 of 14 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 ($3,293,618.01) TOTAL ANNUAL CHARGE TO LEVY $59,881.99 Table 1- Estimated Annual Costs 2025-88 Attachment 1 Page 5 of 14 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. 2025-88 Attachment 1 Page 6 of 14 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 2025-88 Attachment 1 Page 7 of 14 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)109 0 120.00 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 72 0 0.00 Total:183 6,144 122.18 Table 3 - Land Use Inventory 2025-88 Attachment 1 Page 8 of 14 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 122.18 B 38.00 Force Main 48.00 C 32.18 Low Pressure 42.18 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 $18,795.54 Force Main $328,585.32 x x $6,845.53 Low Pressure $728,446.92 x x $17,269.33 $18,795.54 $25,641.07 $36,064.87 $42,910.40 $18,580.82 $24,797.05 $35,773.43 $41,969.20 $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) 2025-88 Attachment 1 Page 9 of 14 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 2025-88 Attachment 1 Page 10 of 14 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 2025-88 Attachment 1 Page 11 of 14 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy 7572002017 B Residential 1 $844.02 7572002018 B Residential 1 $844.02 7572002019 B Residential 1 $844.02 7572002021 A Residential 12 $3,517.84 7572002025 B Residential 1 $844.02 7572002026 B Residential 1 $844.02 7572002027 B Residential 1 $844.02 7572002030 B Residential 1 $844.02 7572002032 B Residential 1 $844.02 7572002033 B Residential 1 $844.02 7572009007 A Residential 1 $214.72 7572009009 A Residential 1 $214.72 7572009010 A Residential 1 $214.72 7572009012 A Residential 1 $214.72 7572009013 A Residential 1 $214.72 7572009016 A Residential 1 $214.72 7572009017 A Residential 1 $214.72 7572009019 A Residential 1 $214.72 7572009020 A Residential 1 $214.72 7572009021 A Residential 1 $214.72 7572009023 A Residential 1 $214.72 7572009024 A Residential 1 $214.72 7572009029 A Residential 1 $214.72 7572010009 B Residential 1 $844.02 7572010011 A Residential 1 $214.72 7572010012 A Residential 1 $214.72 7572010015 A Residential 1 $214.72 7572010016 C Residential 1 $291.44 7572010017 C Residential 1 $291.44 7572010018 C Residential 1 $291.44 7572010020 C Residential 1 $291.44 7572010022 A Residential 1 $214.72 7572010024 A Residential 1 $214.72 7572011005 B Residential 1 $844.02 7572011006 D Residential 1 $941.20 7572011008 B Residential 1 $844.02 7572011009 B Residential 1 $844.02 7572011010 D Residential 1 $941.20 FINAL TAX ROLL 2025-88 Attachment 1 Page 12 of 14 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy FINAL TAX ROLL 7572011011 D Residential 1 $941.20 7572011012 B Residential 1 $844.02 7572011014 D Residential 1 $941.20 7572011016 B Residential 1 $844.02 7572011019 D Residential 1 $941.20 7572011020 B Residential 1 $844.02 7572011021 B Residential 1 $844.02 7572011022 D Residential 1 $941.20 7572011024 B Residential 1 $844.02 7572011025 B Residential 1 $844.02 7572011026 B Residential 1 $844.02 7572011027 B Residential 1 $844.02 7572011029 B Residential 1 $844.02 7572011030 B Residential 1 $844.02 7572011031 B Residential 1 $844.02 7572012016 A Recreational 1 $214.72 7572012017 A Residential 1 $214.72 7572012018 C Residential 1 $291.44 7572012020 C Residential 1 $291.44 7572012022 C Residential 1 $291.44 7572012023 C Residential 1 $291.44 7572012026 C Church 1.181538462 $344.34 7572013001 B Residential 1 $844.02 7572013004 B Residential 1 $844.02 7572013005 B Residential 1 $844.02 7572013010 A Residential 1 $214.72 7572013012 A Residential 1 $214.72 7572013013 B Residential 1 $844.02 7572013014 B Residential 1 $844.02 7572013015 B Residential 1 $844.02 7572013016 B Residential 1 $844.02 7572013018 B Residential 1 $844.02 7572013019 B Residential 1 $844.02 7572014012 A Residential 1 $214.72 7572014014 A Residential 1 $214.72 7572014015 A Residential 1 $214.72 7572014018 C Residential 1 $291.44 7572014020 C Residential 1 $291.44 2025-88 Attachment 1 Page 13 of 14 CITY OF RANCHO PALOS VERDES ABALONE COVE SEWER SERVICE CHARGE FY 2025-26 APN Zone Classification ERU's Levy FINAL TAX ROLL 7572014021 C Residential 1 $291.44 7572014022 B Residential 1 $844.02 7572014023 B Residential 1 $844.02 7572014024 B Residential 1 $844.02 7572014026 C Residential 1 $291.44 7572014027 C Residential 1 $291.44 7572014028 C Residential 1 $291.44 7572014029 A Residential 1 $214.72 7572014030 A Residential 1 $214.72 7572014031 A Residential 1 $214.72 7572014032 A Residential 1 $214.72 7572015011 C Residential 1 $291.44 7572015012 C Residential 1 $291.44 7572015013 C Residential 1 $291.44 7572016003 C Residential 1 $291.44 7572016005 C Residential 1 $291.44 7572016006 C Residential 1 $291.44 7572016009 C Residential 1 $291.44 7572016012 B Residential 1 $844.02 7572016013 B Residential 1 $844.02 7572016018 D Residential 1 $941.20 7572016023 D Residential 1 $941.20 7572017002 C Residential 1 $291.44 7572017006 C Residential 1 $291.44 7572017007 C Residential 1 $291.44 7572017010 C Residential 1 $291.44 7572017011 C Residential 1 $291.44 7572017013 C Residential 1 $291.44 7572017015 C Residential 1 $291.44 7572017016 A Residential 1 $214.72 7572017018 D Residential 1 $941.20 7572017028 C Residential 1 $291.44 7572017029 C Residential 1 $291.44 7572017034 C Residential 1 $291.44 Totals: 110 parcels 121.18 $59,881.98 2025-88 Attachment 1 Page 14 of 14