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TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: DIRECTOR OF PUBLIC WORKS
DATE: JULY 6, 2004
SUBJECT: ABALONE COVE SEWER MAINTENANCE FEE
Staff Coordinator: Ron Dragoo, Sr. Engineer
To insure funding for the on-going operation and maintenance of the sewer facilities in the Abalone Cove area, the City Council established the Abalone Cove Sewer Service charge on July 17, 2001. This Sewer Maintenance Fee ensures a fair and equitable levying of the necessary costs of operating and maintaining the facilities.
The City Council annually reviews the Fiscal Year’s current and projected costs for operating and maintaining the sewer facilities and sets rates for the ensuing fiscal year, which begins July 1, 2004 and ends June 30, 2005. 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.
The Abalone Cove Sewer service charge is levied under the authority of the California Health and Safety Code, Sections 5471 et seq. (the "Code"). Payment of the charge for each parcel will be made in the same manner and at the same time as payments are made for property taxes for each property.
To levy the sewer charge for fiscal year 2004-2005, the City must hold a public hearing. The attached Engineer’s report was prepared to analyze costs and determine the amounts. This report estimates the annual operating costs of the Abalone Cove Sewer System and the corresponding fee required of each property.
The estimated annual cost to maintain the Abalone Cove Sewer System for FY 2004-2005 is $52,221. This amount is equal to FY 2003-2004, and slightly less than the budgeted amount of $56,595 for FY’s 2001-2002 and 2002-2003:
When the Abalone Cove Sewer service charge was established, the City Council agreed to have the City subsidize sewer maintenance in an effort to reduce fees to property owners and to bring uniformity to the annual service charges. The City annual subsidy for FY 2001-2002 and FY 2002-2003 was $35,000 and for FY 2004-2005 it was $17,500. The City subsidy is reviewed each year and may be reduced, altered, or otherwise discontinued, as the City Council deems appropriate. Through the most recent budget process, the City Council requested staff reduce the City subsidy by 40%, to no more than $10,540. This reduction in subsidy will result in increased fees to property owners.
The FY 2004-05 Engineer’s Report groups parcels in the Abalone Cove sewer service area into various rate zones based on the specific combination of sewer subsystems utilized by each parcel. The proposed FY 2004-05 fees for a single-family parcel ranges from $129.46 to $567.50. For all parcels in the Abalone Cove sewer service area, the FY 2004-2005 fee is greater than the FY 2003-2004 fee. The Fee for Zones A, C, and D are at the maximum allowable rates, Zone B is not higher than the maximum charges authorized pursuant to Section 13.06.070 of the City’s Municipal Code. A description of the various zones and their historic and proposed fees are as follows:
The proposed fee varies by zone. The zones with the highest fees, Zones B and D, are the zones with the highest per parcel cost for maintenance. For the Abalone Cove Sewer System, the in-street pump stations have the highest per parcel costs to maintain, and thus those properties, which utilize these in-street pump stations, have the highest fees. A system of zones was developed to identify the specific combination of subsystems used by each contributing parcel.
The percent increase also varies by zone. The zones with the highest increase, Zones B and D, have historically received the highest per parcel subsidy. Therefore, when the subsidy is reduced, Zones B and D will be impacted the most.
The Ordinance which established the Abalone Cove Sewer Service District also established the maximum service charge that can be levied, which is increased each year based on the Consumer Price Index (CPI) If the service charge proposed is greater than the maximum service charge as established through City Ordinance, a new or revised Ordinance would be required in order to re-establish the new maximum service charge that can be levied. The maximum service charges for the FY 2004-05 are as follows:0
The City Council is required to conduct a public hearing and adopt a resolution (confirming the annual sewer service charge) prior to collecting fees through the tax roll. By adopting staff’s recommendation, Council will be levying single-family parcels between $129.46 to $567.50.
Revise the City subsidy, which will revise the proposed fees.
By adopting the staff recommendation, Council will be approving a total sewer service charge of $41,686, and a City subsidy of $10,535 in General Funds to maintain the FY 2004-2005 Abalone Cove Sewer System. No additional funding is required since the General Fund subsidy is allocated in the FY 2004-2005 budget.
The recommended action included the adoption of a budget resolution to provide the General Funds for the City’s subsidy. In FY 2003/04 the following adjustment to the General Fund have been approved.
Dean E. Allison
Director of Public Works
Attachments: FY 2004-2005Engineer’s Report
Resolution No. 2004-______
RESOLUTION NO. 2004-_____
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 2004-05, AND ORDERING THAT SUCH CHARGE BE COLLECTED ON THE TAX ROLL
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City Council finds:
Section 2. The City council overrules any and all objections to the Report; determines that no majority protest against the Report exists; adopts the Report as filed; determines that the Charge for Fiscal Year 2004-05 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 2004-05 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 the City Treasurer on or before [VERIFY DATE] August 10, 2004 pursuant to Section 5 of the Ordinance.
Section 4. The City Clerk is directed to file a copy of the Report with the County Auditor of the County of Los Angeles on or before [VERIFY DATE] August 10, 2004 pursuant to Section 6 of the Ordinance.
Section 5. The City Clerk is authorized to take such other action as is required to implement this Resolution.
PASSED, APPROVED and ADOPTED this 6th day of July 2004.
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, hereby certify that the above Resolution No. 2004-_____ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on July 6, 2004.
Resolution No. 2004-_____
RESOLUTION NO. 2004-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, AMENDING RESOLUTION 2004-45, THE BUDGET APPROPRIATION
FOR FISCAL YEAR 2004-05, FOR A BUDGET ADJUSTMENT TO THE CITY’S ABALONE COVE SEWER MAINTENANCE FUND AND GENERAL FUND
WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council; and
WHEREAS, on June 1, 2004, the City Council of the City of Rancho Palos Verdes adopted Resolution 2004-45, approving a spending plan and authorizing a budget appropriation for the 2004-05 fiscal year; and
WHEREAS, it is necessary for the City to allocate additional funds to subsidize the Abalone Cove Sewer Maintenance Fee; and
WHEREAS, a budget increase in the Abalone Cove Sewer Maintenance Fund is necessary to authorize the expenditure of additional funds for maintenance services.
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:
The following adjustments be made to the following funds:
Abalone Cove Sewer Maintenance 125-325-30 Maintenance $ 2,221
Abalone Cove Sewer Maintenance 125-311-10 Revenue ($10,540)
Abalone Cove Sewer Maintenance 125-391.10 Transfer In $2,221
General Fund 001-391.20 Transfer Out $2,221
PASSED, APPROVED, AND ADOPTED THE 6th DAY OF July, 2004.
Resolution No. 2004-
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, hereby certify that the above Resolution No. 2004- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on July 6, 2004.
CITY OF RANCHO PALOS VERDES
Resolution No. 2004-