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HomeMy WebLinkAboutRES 15-6972 (SEWER SERVICE CHARGE)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 ?9 RESOLUTION NO. 15-6972 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING THE ANNUAL SEWER SERVICE CHARGE AND AUTHORIZING THE CHARGE FOR FISCAL YEAR 2015-2016 TO FUND MAINTENANCE, OPERATION, SERVICING AND IMPROVEMENTS TO THE CITY'S SEWER COLLECTION SYSTEM THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AND ORDER AS FOLLOWS: SECTION 1. Recitals. A. On April 28, 2015, the Hermosa Beach City Council initiated proceedings to consider adoption of a sewer service charge. The purpose of the charge is to collect funds to cover the expenses for the overall operation, maintenance and servicing of the City -owned sewer system as well as the funds deemed appropriate and necessary to pay for capital improvements and reserves. B. At its April 28th meeting, the City Council adopted Resolution No. 15-6954 which adopted the City of Hermosa Beach Sewer Service Charges Commencing Fiscal Year 2015- 2016 Preliminary Engineer's Report ("Engineer's Report") for the proposed sewer charge and set a majority protest hearing as required under Article XIIID of the California Constitution (Proposition 218). C. On April 28th, the City Council also decided to set the proposed base charge at $115/Equivalent Sewage Unit (ESU). D. On or around May 7, 2015, the City mailed notices of the proposed sev service charge and majority protest hearing to the record owners at the service address and different, also to the record owner's mailing address (as set forth on the last equalized roll). Page 1 of 5 15-6972 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 ?R E. A total of 6919 parcels were notified of the proposed sewer charge and majority protest hearing. F. The actual Parcel Charges (a listing of the Assessor's Parcel Numbers and the amount to be levied on each parcel) has been made available in the Hermosa Beach City Clerk's Office in an electronic format. G. The City held a community meeting on May 27, 2015 to present the public with information on the proposed charge and to allow the public an opportunity to ask questions. H. On June 23, 2015, the City Council held a duly noticed protest hearing with respect to the proposed sewer service charge. All affected properties were given notice of the hearing and given an opportunity to file a written protest. SECTION 2. Updated Engineer's Report. The Engineer's Report has been revised based on the City Council's decision to set the proposed fee at $115/ESU. After reviewing and considering the revised Engineer's Report, the City Council hereby adopts the City of Hermosa Beach Sewer Service Charges Commencing Fiscal Year 2015-2016 Engineer's Report dated June 23, 2015 as an accurate and complete analysis of the proposed service charge. The June 23, 2015 report is attached hereto and incorporated herein by reference. SECTION 3. Majority Protest. 6919 parcels will be affected by the proposed Sewer Service Charge. The City written protests for 560 properties prior to the protest hearing and an additional 47 written protests were received at the public hearing. A total of 607 written protests were received before the close of the June 23, 2015 hearing. The number of written protests received was not sufficient to constitute a majority protest under Proposition 218. The City Clerk has certified the tabulation of written protests. Page 2 of 5 15-6972 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 IR SECTION 4. Adopting Annual Sewer Service Charge. A. The City Council hereby accepts the City Clerk's certification of the results the protest hearing and adopts the Sewer Service Charge of $115/ESU per year, as set forth in the June 23, 2015 Engineer's Report. The charge will commence in fiscal year 2015-2016 and shall be increased annually for inflation by the annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers -in the Los Angeles -Riverside -Orange County, CA Area (CPI), including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year, not to exceed two percent (2%) per year. An annual notice will be provided before an annual inflation increase will be applied. The annual increase for inflation is authorized through fiscal year 2019-2020. After the five-year period, the City may conduct another majority protest hearing to authorize inflation increases for an additional period not to exceed five years. This charge will also be codified in Hermosa Beach Municipal Code Chapter 13.12. B. The parcels within the Sewer Service Charge Area consist of all lots, and subdivisions of land within the City of Hermosa Beach, as set forth in the Boundary I in Part D of the Engineer's Report. C. The charge is in compliance with the provisions of Article XIIID of California Constitution and the City Council has complied with all laws pertaining to the levy an annual charge pursuant to Article XIIID of the California Constitution (Proposition 218). SECTION 5. Confirming Charge for Fiscal Year 2015-2016. A. The City Council declares that the Boundary Diagram and Sewer Service Charge, as presented to the City Council in the Engineer's Report is hereby confirmed as filed. B. The purpose of the charge is to collect funds to cover the expenses for the overall operation, maintenance and servicing of the City -owned sewer system as well as the funds deemed appropriate and necessary to pay for capital improvements and reserves. Page 3 of 5 15-6972 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 7R C. The adoption of this Resolution constitutes the levy of the charge against the parcels within the Sewer Service Charge Area for the fiscal year commencing July 1, 2015 and ending June 30, 2016. SECTION 6. The County Auditor of Los Angeles County shall enter on the County Assessment Roll opposite each lot or parcel of land the amount of the charge as set forth in the Engineer's Report, and such charge shall then be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City Treasurer. SECTION 7. The Hermosa Beach Finance Director, or designee, shall deposit all representing charges collected by the County to the credit of the City's Sewer Fund. SECTION 8. The City Clerk is hereby authorized and directed to file the Boundary Diagram and the list of actual Parcel Charges (a listing of the Assessor's Parcel Numbers and the amount to be levied on each parcel) with the County Auditor, together with a certified copy of this Resolution upon its adoption, in addition to any additional information the County Auditor required to collect the charge with the County taxes. SECTION 9. A copy of the Engineer's Report and the actual Parcel Charges (a listing of the Assessor's Parcel Numbers and the amount to be levied on each parcel) shall be filed in the Office of the Department of Public Works, with a duplicate copy on file in the Office of the City Clerk and open to public inspection. SECTION 10. Beginning in fiscal year 2016-2017, the City Clerk is hereby directed mail an annual notice to each property before an annual inflation increase will be applied at le Page 4 of 5 15-6972 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 ?R thirty days before the effective date of the increase. The notice shall be provided in accordance with Government Code Section 53756. SECTION 11. This Resolution shall take effect immediately. The City Clerk is directed to complete the blanks in Section 3 above; certify to the passage and adoption of this Resolution; enter the same in the book of original Resolutions; and make a minute of the passage and adoption thereof in the records of the proceedings of the City Council meeting at which the same is passed and adopted. PASSED, APPROVED AND ADOPTED this 23rd day of June, 2015. -14 6bLAc- PRESIDENT of the City Council arY MAYOR of the City of Hermosa Beach, California ATTEST: € Cr L City Clerk APPROVED AS TO FORM: r City Attorney Page 5 of 5 15-6972 I-stal"a STAY CITY OF HERMOSA BEACH SEWER SERVICE CHARGES COMMENCING FISCAL YEAR 2015/2016 ENGINEER'S REPORT I �lg (L--i PF.IVCO F.rgoircrirtx, low. LK - �f 11tIr\1 t%Our S1Ymm- TABLE OF CONTENTS Introduction 1 2 Part A — Plans and Specifications f 6 City Sewer Improvements 6 Operations, Maintenance and Services 6 Part B -- Estimated cost of the Improvements 9 Part C — Charge Calculations and Proposed Charges 10 Part D — Boundary Diagram Appendix 1s This report has been prepared and submitted by Jeffrey M. Cooper, Vice President, PENCO Engineering, Inc. .f reyM. Jeff Cooper. RCE 31572 June 23, 2015 [ ety of Ilermolu Wadi -Srwcr tiervlera Chalet 4ngimer's Relxmrt C'a m:netit fifell Ycni 10151,1016 11 I'FNCO Engineering, Ine. "f `firr�Y.S�errr,• it (4rr Sw< 01,. INTRODUCTION In order to effectively establish a capital improvement program to implement the needed wastewater system improvements, an equitable method of prioritizing projects must be established. In general, sewer facilities having the greatest degree of defects and deterioration at the present time will receive higher priority than those which are in better conditions. In 1994, an Infrastructure Management Project Report, prepared by ITX, analyzed the City's sewer network and also recommended a rehabilitation program to address the immediate needs of the sewer network. In 2008, considering the City's 85 years old sewer network of concrete and clay pipes, City embarked on the implementation of a Sanitary Sewer Master Plan that updated the Sewer portion of the Infrastructure Management Project Report prepared by ITX in 1994. Building on the work the City had completed through the undertaking of previous studies and projects, the Sewer Master Plan was prepared based upon newly collected data from the 2008 Closed Circuit TV (CCTV) inspection of the entire sewer system. This Sewer Master Plan, dated April 2009 and revised March 2011, currently lists the existing defects and deficiencies and identifies projects for improvements for a 10 year program. At the end of the ten year rehabilitation program, CCTV inspection of the entire sewer system is recommended for monitoring any remaining or newly developed physical deterioration and maintenance problems. This would allow the City to continue with development and implementation of a cost effective rehabilitation program that will insure the long-term integrity of the sewer system and service to the community. The City is now considering to bond for needed capital improvements using a portion of the proposed sewer service charges to pay annual debt service to address major repairs and rehabilitation of the sewer system based on the priority set in the Sewer Master plan. In support of this endeavor and per City's request, a more up to date cost to rehabilitate the sewer system over the next ten (10) years is presented in the following section of this update to the Sewer Master Plan. SUMMARY AND RECOMMENDATIONS This section puts forth a rehabilitation program cost estimate considering the needs of the sanitary sewer infrastructure over the next ten (10) years; however a plan is in place to implement the necessary improvements within seven years. As was previously stated, the City has undertaken rehabilitation work of its sewer system based on programs outlined in previous studies that recommended the City to plan for the eventual replacement of the entire sanitary sewer system. City is estimated to currently have 194,000 lineal feet of sanitary sewer pipes, 880 sewer manholes, one (1) main wastewater pump station and three (3) small beach restroom pumps. In 2008, Closed Circuit TV (CCTV) inspection of the entire sewer system, that was accessible, was completed and prioritized for repair in the 2009 Sewer Master Plan. Of the 194,000 lineal feet of sanitary sewer pipes in the system, 38,000 lineal feet of sewer pipes were not accessible by CCTV due to obstructions. These pipes are likely to be badly deteriorated considering their age and limited accessibility for routine maintenance. Therefore, these pipes are considered a priority for rehabilitation and repair. Based on existing records, 53,800 feet of pipe is considered to be in good condition and requires no rehabilitation for a minimum of ten years. The remaining 140,200 feet of pipe in the system; requires some form of rehabilitation within the next ten years. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 12 PBNCO Engineering, lne. _ 1K mnurr "( lirnt .Sire �' �•�.� fe t IPer .S ue� r., � Since 1985, approximately 180 manholes have been rehabilitated or replaced. The remaining 700 manholes are over 85 years old. Some of the existing manhole openings do not provide adequate access and hinder the City's use of closed circuit television inspection and emergency bypass equipment. Some of the manhole bottoms are deteriorated and need to 'be replaced. It is anticipated that in the next ten (10) years about 15% of the remaining 700 manholes will have to be reconstructed and or replaced. An estimate of the City's sewer system rehabilitation cost over the next seven (7) years follows. An inflation rate of 2% per year as well as 10% contingency and 20% soft costs (Design and Inspection) is incorporated.' ' Information from the City of Hermosa Beach Master Plan prepared by MBF Consulting. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 13 PE,1CO Engineering, Ine. 'ram JIo1T SUCS Prc ie Our .1nw(i'" •, REHABILITATION COST ANALYSIS (over next 7 years) Total pipe inventory Pipes in good condition for next ten years Pipes to be rehabilitated Pipe Rehabilitation Unit Cost (based on past 3 years average cost) Pipe Rehabilitation Quantity per Year (spread equally over 7 years) Pipe Rehabilitation Cost (1styear) - assume 2% inflation Pipe Rehabilitation Cost (2"dyear) - assume 2% inflation Pipe Rehabilitation Cost (3rdyear) - assume 2% inflation Pipe Rehabilitation Cost (4thyear) - assume 2% inflation Pipe Rehabilitation Cost (5thyear) - assume 2% inflation Pipe Rehabilitation Cost (6thyear) - assume 2% inflation Pipe Rehabilitation Cost (7thyear) - assume 2% inflation Manholes -15% need reconstruction TOTAL CONSTRUCTION COST Contingency -10% Design & Inspection Costs-20% TOTAL REQUIRED BUDGET 194,000 ft. 53,800 ft. (194,000 - 53800) = 140,200 ft. 50.00 $/ft. 140,200/7=20,029 ft. /yr. (20,029) (50.0) (1.02)=$1,021,479 (20,029) (50.0) (1.02)2=$1,041,909 (20,029) (50.0) (1.02)3=$1,062,747 (20,029) (50.0) (1.02)4=$1,084,002 (20,029) (50.0) (1.02)5 =$1,105,682 (20,029) (50.0) (1.02)6=$1,127,793 (20,029) (50.0) (1.02)7=$1,150,351 (700) (.15) ($8,000)=$840,000 $8,433,963 $843,396 $1,686,793 $10,964,1522 Z Information from the City of Hermosa Beach Master Plan prepared by MBF Consulting. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 14 PEA°CO Engineering, lne. � Sul I:newr,im: This Engineer's Report ("Report") has been prepared for the City of Hermosa Beach commencing in Fiscal Year 2015/2016 and consists for four (4) parts: PART A — PLANS AND SPECIFICATIONS Contains a summary of the improvements within the City to be maintained and the proposed services and activities to be funded by the sewer services charges. PART B — ESTIMATE OF COST Identifies the estimated cost of the services and/or maintenance to be provided by the City, including annual service and maintenance expenses; debt service for capital outlays, repairs, rehabilitation or replacement of equipment or facilities; as well as operational and incidental costs and expenses in connection therewith. PART C — CHARGE CALCULATION AND PROPOSED CHARGES Outlines the basis on which the annual charges will be calculated for each parcel within the City. PART D — BOUNDARY DIAGRAM Contains a Diagram showing the exterior boundaries of the territory within the City of Hermosa Beach subject to annual sewer services charges, which is coterminous with the boundaries of the City of Hermosa Beach. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within proposed sewer services boundary described herein are identified and correspond to the Los Angeles County Assessor's Parcel Maps for said parcels as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot -line adjustments or parcel changes therein. Reference is hereby made to the Los Angeles County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the City of Hermosa Beach and subject to the proposed annual sewer services charges to be levied on behalf of the City. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 15 I'KNICD Engineering, Ine. i•I �nrvpx PART A -PLANS AND SPECIFICATIONS CITY SEWER IMPROVEMENTS3 The sewer improvements within the City of Hermosa Beach for which the City proposes to be responsible for maintenance and operation of the sewer system as well as levy and collect charges to maintain such improvements, includes, but is not limited to, and may be generally described as follows: • Approximately 194,000 feet of main sewer lines consisting of the following: 0 28,868 linear feet (LF) of 6" sewer lines; 0 149,993 linear feet (LF) of 8" sewer lines; 0 4,204 linear feet (LF) of 10" sewer lines; 0 5,071 linear feet (LF) of 12" sewer lines; 0 1,254 linear feet (LF) of 15" sewer lines; 0 1,150 linear feet (LF) of 18" sewer lines; 0 805 linear feet (LF) of 21" sewer lines; and 0 2,655 linear feet (LF) of 24" sewer lines. • 880 Sewer Manholes • Four Lift/Pump station: 394 — 21 inch and 2,629 — 24 inch o Three (3) Beach restroom pumps o The Strand - 34th The specific plans and specifications for the city -owned sewer improvements are incorporated and contained in the sewer construction plans and specifications for the various sewer segments of the sewer system within the City of Hermosa Beach. These plans and specifications are voluminous and are not bound in this report but by this reference are incorporated and made a part of this report. The specific plans and specifications for the city -owned sewer improvements are on file in Public Works at the City. OPERATIONS, MAINTENANCE AND SERVICES The City of Hermosa Beach proposes to collect funds to cover the expenses for the overall operation, maintenance and servicing of the city -owned sewer system as well as funds that may be necessary to pay for capital outlay expenditures including repairs, rehabilitation or replacement of equipment or facilities. The following is a summary of the services and activities associated with the maintenance, operation, servicing and capital outlay expenditures for the City's sewer system. The frequency, extent and/or level of the services and activities identified below may be modified based on available funding and priorities as determined by the City: Preventive Maintenance One of the City's primary objectives for assuming responsibility and management of the operation and maintenance of the City's sewer system is to provide a cost-effective and efficient program that will ensure the integrity and long term stability of the sewer system. This is best accomplished by implementing preventive maintenance program that addresses the entire sewer system. This preventive maintenance should include, but is not limited to, regular inspection of the sewer manholes, pipes, siphons, pump stations and related facilities as well as regular cleaning, 3 Information from the City of Hermosa Beach Master Plan prepared by MBF Consulting. City of Hermosa Beach —Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 16 PENCO Engineering, lne. "l Ti4-rrt.5'iu,r•• i, Our repair, and related activities as warranted. These activities are intended to detect and correct potential problems before they develop into major problems. The following is a general summary of those preventive maintenance activities. ➢ Sewer Line and Manhole Inspection - The interior and exterior of manholes to be inspected (at least once a year) for any structural defects, sewage flow condition, presence of vermin or rodents, deleterious industrial waste, odors, and any signs of unusual settlement around or evidence of debris within the manholes and along sewer alignments. ➢ Sewer Line Cleaning - Sewer lines will be videoed and cleaned by hydro jet or rodding as needed based on a scheduled that ensures each sewer line is addressed at least every three -five years. The actual frequency of cleaning may vary based on inspection records. Sewer lines known to cumulate grease, garbage grinds, or sand may be addressed more frequency with possible monthly, quarterly, or semi-annual cleaning schedule. Those areas prone to root growth may be periodically rodded or chemically treated. ➢ Sewage Pump Stations - All pump stations are equipped with telemetry/alarm systems and will be inspected at least once a week. Pumps and motors will be inspected and lubricated, control mechanisms and valves will be checked and adjusted as necessary. Pump station equipment will be repaired or modified as required. ➢ Gas Trap Manholes and Siphons - Inspected and cleared of any stoppages or flow restrictions on a monthly basis. ➢ Drop Manholes - Inspected and cleared of stoppages and flow restrictions on variable frequencies based on prior inspection records. ➢ Vermin and Rodent Control - On an as -needed basis, sewers infested by insects will be chemically treated, and those infested by rodents will be baited. Capital Outlay, Rehabilitation and Replacement The City plans to bond for needed capital improvements using a portion of the proposed sewer service charge to pay annual debt service to address major repairs and rehabilitation of the sewer system on a priority basis. However, in addition the City plans to develop and implement a long-term replacement and refurbishment program that will ensure not only the short term integrity of the sewer system, but also the long-term integrity and continue service to the community. As the city's sewer collection system ages, the risk of failure will ultimately increase due to deterioration, collapse, blockage, excessive inflow and infiltration, overflow, and other potential service interruptions. Therefore, while the scheduling of major repairs, rehabilitation projects and replacement projects will ultimately be implemented based on available funding, highest priority will be given to structural deficiency. However, by developing a long-term replacement and refurbishment program with the goal of eventually addressing the entire system, the City may also address hydraulic deficiency in addition to the structural deficiency. Sewer System Management ➢ Mapping - As -built plans of the sewer facilities will be maintained by the City. Data on the plans, such as system locations and alignment, pipe material, size, etc., will be maintained and stored electronically by the City. These maps will be available and utilized by the field crews for work scheduling and responding to emergencies, and will be updated to reflect any changes in the system. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 17 PENCO Engineering, Inc. ra.'mV "client Surce,sx is Our Succex}" ➢ Work Scheduling - Field crew activities will be recorded and tract by the City utilizing various forms including, but not limited to service requests, cleaning reports, sewer maintenance daily reports, overflow reports forms, project work orders, etc. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 18 PENCO Engineering, lne. "( 1h.)a .Swj,— i, 011r,Su Ccr,. PART B — ESTIMATED COST OF THE IMPROVEMENTS The net amount to be charged on the lots or parcels within the City is based on an initial estimate of the annual cost and expenses for the maintenance, operation, servicing of the City's existing sewer system improvements as well as the funding deemed appropriate and necessary for future capital improvements and reserves (Replacement funding). It is estimated that sewer capital improvements are needed at $11 million for the current planning period. It is the City's plan to spend $3 Million in cash plus finance an additional $8 Million to fund needed improvements. O & M/year (range) Available for Improvement Financing / Year $ Charge/1 ESU (Single Family Resident) $250,000 - $450,000 $700,000 - $900,000 $115/year City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 19 PENCO Engineering, Inc. -1 Euvn...,n. "('Nrnr.Sum— i, Our Sarre.,, PART C— CHARGE CALCULATION AND PROPOSED CHARGES The sewer service charge for 2015/2016 is being established by the City. The charge multiplied by the Equivalent Sewer Units assigned to each parcel will be the charge for each parcel. The Equivalent Sewer Unit (ESU) determination for each parcel is described below. Single Family 1.0 1.0 0.6 Condominiums Multi Family Sewage Generation Factors The City of Hermosa Beach updated their sanitary sewer master plan in April 2009 and again in March 2011, both were prepared by MBF Consulting. A numeric relationship between the various lots and parcels is necessary for the allocation of the costs of sewer maintenance among the lots and parcels. It is customary to relate the various land uses to the single family residential lot which is established as one Equivalent Sewage Unit (ESU), and all other lots and parcels are related proportionally to the single family residential lot. Based on sewage generation rates, a typical single family lot generates 260 gallons per day in Los Angeles County4. Therefore, for purposes of comparison of the various land uses for lots and parcels, 260 gallons per day is designated as the equivalent of 1 ESU. Non-residential Land Uses The ESU for various non-residential land uses is calculated by the following equation: ESU = [Commercial Water Consumption GPD]/260 GPD per SFRU Single family residential units will be charge at 1.0 ESU per parcel, the multi -family residential units will be charged at 0.6 ESU per parcel and condominiums at 1.0 ESU per parcel as they are similar to single family residents in use. For the non-residential, it was allocated by water consumption values for all of Hermosa Beach from information provided by California Water Services Company annually. Vacant parcels of any use are charged 0.5 ESU. 4 West Hollywood Sewer Charge Report. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 110 l'ENCO Engineering, lne. �a l�„_, .,.. I'I •iuun. .. f 'Hi'rif Sur(c�� is�)rrr Suicr.�� Government Facilities and Parcels There are several parcels that receive sewer service that are owned and operated by local government. Proposition 218 requires that each parcel not pay more than the proportional cost of providing the service. Therefore, because these government parcels use the sewer service, they are included in the computation of the charge and are charged. CALCULATION OF THE CHARGE The sewer service charge is based on the direct cost of providing the service. These costs include staff, rent, utilities, and other costs as needed for sewer repair and improvements as described earlier in this report. The $115 charge per ESU for 2015/2016 as adopted by the City Council on April 28, 2015 is multiplied by the ESUs for each residential parcel and by water consumption for non-residential to determine the charge for each parcel. The proposed 2015/2016 revenue for the sewer services (as shown previously) will be funded by the total of the charges from the parcels. ANNUAL INCREASES Because the costs of providing the sewer service may increase over time, beginning July 1, 2016 and each July thereafter, the charge per ESU established in 2015/2016 shall be increased by the annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers in the Los Angeles -Riverside -Orange County, CA Area (CPI), including all items as published by the US Bureau of Labor Statistics as of March 1 of each year, not to exceed two percent (2%) per year. The annual increases can only be authorized for a five year period. To increase the charge after the initial five year period, would require a new Proposition 218 hearing. PROPOSITION 218 CONSIDERATIONS Proposition 218, which the voters of the State of California passed on November 5, 1996, contains requirements for the imposition of a fee or charge for property related services. Requirements for fees and charges are contained in Section 6 of Article XIII D. Paragraph (b) describes the requirements for new, existing, or increased fees and charges, as: (1) Revenues shall not exceed the funds required to provide the service. (2) Revenues shall not be used for any other purpose. (3) The amount of the fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. (4) No fee or charge may be imposed unless the service is actually used by or immediately available to the owner of the property in question. (5) No fee or charge shall be imposed for general governmental services, i.e., police, ambulance, library, where the service is available to the public at large in substantially the same manner as it is to the property owners. City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 1 11 PENCO Engineering, Ine. I'Inu,um "C h"111 .satc,'- i� 011FS14Yr", This report and recommended charges complies with all five of these requirements. 1. Revenues generated by this charge will not exceed funds required to provide sewer services and shall not be used for any other purpose, besides what has been described herein. 2. The sewer charge is the proportional cost of provided service to the parcels in the City and the charge is for actual use or is immediately available to the property in question. Due to the number of parcels in the City of Hermosa Beach that will be subject to the Sewer Service Charge, the Parcel Charges (a listing of the Assessor's Parcel Numbers to be levied the proposed charge amounts) is not contained in this Report, but will be filed with the City Clerk in an electronic format prior to the public hearing regarding the levy and collection of the charges for Fiscal 2015/2016. The proposed Parcel Charge Roll, after being filed with the City Clerk, shall be available for public inspection in the City Clerk's Office during normal business office hours. However, the following tables provide a summary of the estimated ESUs by land use anticipated for Fiscal Year 2015/2016, per the County's assigned land use classification of each parcel within the City that was available at the time this Report was prepared. City of Hermosa Beach — Saver Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 112 PLAIC0 Engineering, lire. EXAMPLES OF ESUs BY LAND USE - Residential Residential Parcel Breakdown by Land Use Code Land Use Description Total Parcels Total ESU's 100 1 Unit 2899 2899.00 101 1 Unit, Pool 81 81.00 103 1 Unit 9 9.00 104 1 Unit, Therapy Pool 160 160.00 108 1 Unit 3 3.00 109 1 Unit, Other Improvements 9 9.00 110 1 Unit 44 44.00 111 Residential 5 5.00 113 Residential 1 1.00 114 Residential 2 2.00 120 1 Unit 1 1.00 200 2 Units, 1-4 Stories 899 1078.80 201 2 Units, 1-4 Stories, Pool 7 8.40 204 2 Units, Therapy Pool 7 8.40 300 3 Units, 1-4 Stories 156 282.00 304 Residential 1 1.00 400 4 Units, 1-4 Stories 155 372.00 500 5+ Units, 1-4 Stories 164 801.60 501 5+ Units, 1-4 Stories, Pool 8 389.40 510 5+ Units 2 6.60 900 Mobile Home Park 3 84.60 010C 1 Unit, Condominium 1491 1491.00 0101) 1 Unit, Planned Community 102 102.00 010E 1 Unit, Condo Conversion 103 103.00 010V Vacant Residential 69 34.50 01DC 1 Unit, Condominium 5 5.00 020C 1- 4 Units, Condominium 11 31.00 020V 2 Units, Vacant 11 0.50 030C 3 Units, 1-4 Stories, Condominium 11 3.00 Totals Parcels 6,399 Total ESU's 8,016.80 City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 113 _� PL�VC'D f�'rrgeneerirrg, bu•. ••�'ik,7[l Surr �'�, l�77;fl.S�iU i'.��. EXAMPLES OF ESUs BY LAND USE - Non -Residential Non -Residential Parcel Breakdown by Land Use UseCode UseCodeDesc Parcel Count Total ESU's 1100 Stare, 1 Story 88 84.52 1102 Store, 2 Stories 2 6.61 1200 Stare and Office, 1 Story 18 52.71 1210 Store and Residence, 1 Story 30 45.38 1212 Store and Residence, 2 Stories 2 0.54 1340 Retail Warehouse, 1 Story 1 0,30 1400 Supermarket, 12000+ SgFt, 1 Story 1 3.08 1420 Supermarket, Under 6000 SgFt, 1 Story 2 0.32 1500 Shopping Center, Community, 1 Story 10 68.42 1700 Office Building, 1 Story 56 18.19 1702 lOfficeBuildin& 2 Stories 4 3.67 1703 lOfficeBuildinF, 3 Stories 5 12.86 1820 Motel, 1-49 Rooms, 1 Story 3 13.68 1930 Motel, 50+ Rooms, 1 Story 3 66.78 1900 Professional Bufldin& 1 Story 3 1.97 1902 Professional Building, 2 Stories 1 1 3.26 1910 Professional Building, Med/Dental, 1 Story 3 2.29 1920 Professional Building, Veterinary, 1 Story 1 0.39 2100 lRestaUrant, Lounge or Tavern, 1 Story 26 43.71 2102 Restaurant, Lounge or Tavern, 2Stories 1 12.38 2110 Fast Food, Walk Up, 1 Story 2 6.79 2120 Fast Food, Auto Oriented, 1 Story 1 2.77 2300 Bank or Savings and Loan, 1 Story 3 0.98 2400 Service or Repair Shop, 1 Story 1 0,05 2500 IService Station, IStory 1 0.82 2600 Auto Body and Fender, 1 Story 25 10.40 2601 Auto Sales & Service 1 0.32 2620 New Car Sales and Service, 1 Story 2 0.83 2630 Car Wash, 1 Story 1 25.1 2700 Parking Lot, Patron/Employee, 1 Story 46 20.02 3100 Light Manufacturing, 1 Story 28 4.08 '3350 Mini Public Stara e, 1 Story 1 0,32 6400 Clubs, Lodge Halls, Fraternal Orgs, 1 Story 2 0.95 7100 Churches, 1 Story 7 13.96 7200 Private Schools, 1 Story 4 4.14 7500 Home For Aged and Others, 1 Story 1 1.34 18800 Government, Unassigned 52 16.69 100V Commercial, Unassigned, Vacant 30 15.00 110C Store, Condominium 4 0.24 17TO Commercial 1 2.36 270V Parking Lot, Vacant 1 0.50 '300V Industrial, Vacant 3 1.50 ,880V Government Owned, Vacant 5 2.5o XXXX Unclassified 203 1,343.63 Total Parcels 1 685 Total ESU's 1 1916.41 City of Hermosa Beaeh - Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 114 PENCO Engiricering, Inc. ;URC4n,� Y.� J PART D — BOUNDARY DIAGRAM The parcels within the Sewer Service Charge Area consist of all lots, parcels and subdivisions of land within the City of Hermosa Beach. A copy of the Boundary Diagram is provided below. CITY OF HERMOSA BEACH BOUNDARY DIAGRAM v -,an Beach Blva Manila'Ltan Beach y i P� T � � L C= V N " District Vim St Boundary J •� Ca Herniosa Beach Pier City of Hermosa Beech �G Hermosa Beach x s 7. 0 S�, a Manhattan F3each 133vd m e 6 Mira Costa i-ligh School Artesia Blvd Grai L -si -lR 7 5, City of Hermosa Beach — Sewer Services Charge Engineer's Report Commencing Fiscal Year 2015/1016 115 STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF HERMOSA BEACH I, Elaine Doerfling, City Clerk of the City of Hermosa Beach, California, do hereby certify that the foregoing Resolution No. 15-6972 was duly and regularly passed, approved and adopted by the City Council of the City of Hermosa Beach at a Regular Meeting of said Council at the regular place thereof on June 23, 2015. The vote was as follows: AYES: DiVirgilio, Fangary, Petty, Tucker NOES: Mayor Barragan ABSTAIN: None ABSENT: None Dated June 23, 2015 Elaine Doerfling, City CIOIK--)