Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 

FROM: DIRECTOR OF PUBLIC WORKS

DATE: AUGUST 6, 2002

SUBJECT: ABALONE COVE SEWER MAINTENANCE FEE

Staff Coordinator:  Judy A. Huey, Senior Administrative Analyst

RECOMMENDATION

1. Conduct a public hearing on the proposed levy and collection of the annual sewer maintenance fees for the Abalone Cove Sewer System for Fiscal Year 2002-03.

2. Authorize a $19,125 City subsidy of the annual Abalone Cove sewer maintenance fees.

3. Adopt Resolution No. 2002-____, 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 2002-03, and ordering that such charge be collected on the tax roll.

BACKGROUND

On July 17, 2001 the City Council formed the Abalone Cove Sewer Maintenance Fee to insure a flow of funds for the on-going operation and maintenance of the sewer facilities in the Abalone Cove area.  The City of Rancho Palos Verdes annually collects sewer service charges for all parcels of real property in the Abalone Cove Landslide Abatement District connected to the sanitary sewer system.  The Abalone Cove Sewer Maintenance Fee is levied under the authority of the California Health and Safety Code, Sections 5471 et seq. (the “Code”). 

The City Council annually reviews the current and projected year’s costs for the operation and maintenance of the sewer facilities and sets the rates for the ensuing fiscal year, which runs between July 1 and June 30.  In setting the annual rates, the City Council will consider any new or updated maintenance costs, and any fund balances or shortages, and adjust the rates accordingly.

To establish the proposed sewer fees, the City must hold a public hearing.  The attached engineer’s report was prepared to determine the fee amounts.  This report estimates the annual operating costs of the Abalone Cove sewer system and the corresponding fee for each property. 

ANALYSIS

The estimated annual cost to maintain the Abalone Cove sewer system for FY 2002-03 is $40,720.  The proposed total annual sewer maintenance fee is $21,595.  The total City contribution to subsidize the annual sewer maintenance costs is $19,125. When the Abalone Cove Sewer Maintenance Fee was formed, the City Council agreed to have the City subsidize sewer maintenance in an effort to bring more uniformity to the annual maintenance fees.  The subsidized fees were in effect for FY 2001-02 only.  The City subsidy is reviewed each year and may be discontinued, reduced, or otherwise altered as the City Council deems appropriate.

The FY 2002-03 Engineer's Report groups parcels in the Abalone Cove sewer service area into various rate zones based on the specific combination of sewer subsystems used by each contributing parcel. The proposed FY 2002-03 fees for a single family parcel range from $119.07 to $219.79.  For all parcels in the Abalone Cove sewer service area the FY 2002-03 fee is equal to the FY 2001-02 fee.

CONCLUSION

To levy fees for maintenance of the Abalone Cove sewer system the City Council is required to conduct a public hearing and adopt a resolution confirming the annual sewer maintenance fees.  By adopting the staff recommendation Council will be levying single family parcels between $119.07 to $219.79. 

FISCAL IMPACT

By adopting the staff recommendation, Council will be approving total annual fees of

$21,595 and a City subsidy of $19,125 in general funds to maintain the Abalone Cove sewer system.  No additional funding is required since the general fund subsidy is allocated in the FY 2002-03 budget.

Respectfully submitted,                                           

Dean Allison
Director of Public Works                                         

Reviewed,

Les Evans
City Manager

Attachments:
FY 2002-03 Engineer’s Report
Resolution No. 2002-_______