HomeMy WebLinkAboutRES-24-7444 (SEWER SERVICE CHARGES ON TAX ROLL)
Page 1 of 3 RES-24-7444
CITY OF HERMOSA BEACH
RESOLUTION NO. RES-24-7444
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, ADOPTING THE REPORT PROPOSING TO HAVE SEWER SERVICE
CHARGES COLLECTED ON THE TAX ROLL FOR THE FISCAL YEAR 2024–2025
AND DIRECTING THE CITY CLERK OF THE CITY TO FILE SAID REPORT WITH THE
LOS ANGELES COUNTY AUDITOR-CONTROLLER TO PLACE SAID CHARGES
ON THE TAX ROLL
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Pursuant to the provisions of Chapter 13.12 of Title 13 of the Hermosa
Beach Municipal Code and the California Health and Safety Code Section 5470 et
seq., the City Council is authorized to levy the annual sewer service charges (the
“Charges”) and to have such Charges collected on the 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 2. The City retained an Assessment Engineer who prepared and filed
with the City Clerk a written report containing a description of each parcel of real
property within the City to which the Charges are applicable (the “Identified
Parcels”) and the amount of the Charges for each such Identified Parcel for Fiscal
Year 2024–2025 computed in conformity with Section 13.12.030 of the Hermosa
Beach Municipal Code(“Engineer’s Report”).
SECTION 3. Following notice duly given in accordance with law, the City
Council held a full and fair public hearing on July 9, 2024 regarding the levy and
collection of the proposed Charges for Fiscal Year 2024–2025 on the tax roll. All
interested persons were afforded the opportunity to hear and be heard. The City
Council considered all oral statements and all written protests made or filed by any
interested person. A majority protest does not exist against the annual levy of the
Charges and any and all oral and written protests to the levy and collection of the
proposed Charges for Fiscal Year 2024–2025 are hereby overruled, the Charges in
the Engineer’s Report are confirmed, and the Engineer’s Report in Exhibit A is hereby
adopted by the City Council.
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SECTION 4. Based upon its review of the Engineer's Report, a copy of which
has been presented to the City Council and which has been filed with the City Clerk,
and other reports and information presented to the City Council, the City Council
hereby finds and determines that (i) each parcel in the City benefits from receiving
sewer service, (ii) the net amount of to be assessed upon each parcel of real property
for Fiscal Year 2024–2025 is apportioned by a formula and method that fairly distributes
the net amount among all assessable parcels in proportion to the estimated benefits
received by each parcel, and (iii) no charge is imposed on any parcel that exceeds the
reasonable cost of the benefits conferred on that parcel.
SECTION 5. The City Council hereby elects to collect the Charges in the
Engineer’s Report in Exhibit A on the property 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. The adoption of this resolution constitutes the levy of the
Charge against parcels of property in the City of Hermosa Beach for the fiscal year
commencing July 1, 2024 and ending June 30, 2025.
SECTION 6. Pursuant to the authority set forth in Health and Safety Code section
5473.4, and Chapter 13.12 of Tile 13 of Hermosa Beach Municipal Code, on or before
August 10, 2024, the City Clerk is hereby authorized and directed to file a copy of the
Engineer’s Report 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-Controller, together with a certified copy of this Resolution upon its adoption,
in addition to any additional information the County Auditor-Controller requires to
collect the Charges with the County taxes.
SECTION 7. The County Auditor-Controller of Los Angeles County shall enter on
the County Assessment Roll opposite each parcel of land the amount of the
Charges, and such charges, and each installment of the charges, shall be collected
in the same manner, and shall be subject to the same penalties and priority of lien
as, other charges and taxes fixed and collected by, on behalf of the City. After
collection by the County, the net amount of the Charges, after deduction of any
compensation due the County, shall be remitted to the City of Hermosa Beach’s
Finance Director (“Finance Director”).
SECTION 8. The Finance Director shall deposit all money representing charges
collected by the County to the credit of the City’s sewer fund.
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SECTION 9. A certified copy of this resolution and 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 City Clerk
and open to public inspection.
PASSED, APPROVED, and ADOPTED on this 9th day of July, 2024.
Mayor Justin Massey
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________
Myra Maravilla, Patrick Donegan,
City Clerk City Attorney
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CITY OF HERMOSA BEACH
Sewer Service Charges
Fiscal Year 2024/2025
Submitted by: NV5
June 20, 2024
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City of Hermosa Beach – Sewer Services Charge
Engineer’s Report
Commencing Fiscal Year 2024/2025
TABLE OF CONTENTS
Section Page No.
Introduction 1
Part A – Plans and Specifications 3
City Sewer Improvements 3
Operations, Maintenance and Services 3
Part B – Estimated cost of the Improvements 6
Part C – Charge Calculations and Proposed Charges 7
Part D – Boundary Diagram 12
This report has been prepared and submitted by Jeffrey M. Cooper, NV5.
Jeffrey M. Cooper, RCE 31572
June 20, 2024
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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, listed the existing defects and deficiencies and identified projects for improvements for a 10 year
program. At the end of a ten-year rehabilitation program, CCTV inspection of the entire sewer system is typically
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 considered bonding for needed sewer improvements, however has decided to adopt a pay-as-you-go
method to pay for addressing major repairs and rehabilitation of the sewer system based on the priority set in the
Sewer Master plan. In support of this endeavor, the City updated their Sewer Master Plan in 2017.
The 2017 Sewer Master Plan identified 9.76 miles of sewer (out of 37 miles total) that were in need of
improvements at that time – with an estimated cost of $14.4 million (in 2017 dollars). At the current pace, the City
is on track to complete the remaining sewer improvements within approximately 10 years. This timeline is a
function of Public Works staffing and funding levels and has allowed staff to address priority repairs.
It is common for sewer master plans to be updated every 10 years or so, as the system continues to age and
deteriorate independent of repair schedule. Staff intends to submit a new CIP request in FY 2026/27 to update the
master plan, which is estimated to cost approximately $300,000 and is expected to result in a revised list of
priorities.
SUMMARY AND RECOMMENDATIONS
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.
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The projected revenue for FY 24-25 is approximately $1,290,000 based on the new ESU cost, this represents an
increase in revenue of approximately 2% from the previous fiscal year.
Again in 2016-2017, CCTV was conducted for the entire sewer system in conjunction with the latest 2017 Master Plan.
The current Master Plan recommends over $14.4 million in improvements over the next ten years.
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.
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PART A – PLANS AND SPECIFICATIONS
CITY SEWER IMPROVEMENTS 1
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:
o 28,868 linear feet (LF) of 6" sewer lines;
o 149,993 linear feet (LF) of 8" sewer lines;
o 4,204 linear feet (LF) of 10" sewer lines;
o 5,071 linear feet (LF) of 12" sewer lines;
o 1,254 linear feet (LF) of 15" sewer lines;
o 1,150 linear feet (LF) of 18" sewer lines;
o 805 linear feet (LF) of 21” sewer lines; and
o 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 historical 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 a 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,
repair, and related activities as warranted. These activities are intended to detect and correct potential problems
1 Information from the City of Hermosa Beach Master Plan.
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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 has adopted a pay-as-you-go method to pay for addressing 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.
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Work Scheduling - Field crew activities will be recorded and tracked 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.
Revenue and Expenditures
The City collects an average of approximately $1.2 million annually from the sewer fee. Since 2015, the City has spent
approximately $415,000-$630,000 on average for operations/maintenance – including emergency repairs, contracted
services for cleaning and video inspections, and personnel. The remainder of the funds are then primarily used to
advance design/construction of the recommendations outlined in the Sewer Master Plan.
In fiscal year (FY) 2023-24, the City utilized an estimated $630,000 for operations and maintenance on the City's sewer
system. In FY 2024-25, the City will complete CIP 421- Annual Sewer Improvements Phase 2, which will include sewer
replacement and other point repairs at an estimated cost of approximately $3.5 million.
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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 was originally estimated that sewer capital improvements are needed at $14.4 million for the current
planning period.
USE OF REVENUE
O & M/year
(range) $500,000 - $650,000
Available for Improvement
Financing / Year $675,000 - $800,000
$ Charge/1 ESU
(Single Family Resident) $139.58/year*
*Rate shown is the 2023-2024 rate.
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PART C – CHARGE CALCULATION AND PROPOSED CHARGES
The sewer service charge for 2024/2025 is being reestablished 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.
LAND USE ESU
Single Family 1.0
Condominiums 1.0
Multi Family 0.6
Sewage Generation Factors
The City of Hermosa Beach updated their sanitary sewer master plan in April 2009, March 2011, and again in
June 2017.
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 County2. 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 parcels will be
charged at 0.6 ESU per residential unit in the 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.
2West Hollywood Sewer Charge Report.
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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 following table shows the percentage increase of the sewer service charge each year since inception:
For fiscal year 2024-2025, it is proposed that a not-to-exceed CPI increase of 2% be approved. The new charge for
fiscal year 2024-2025 is $142.37/ESU. The projected increase in revenue for fiscal year 2024-2025 is approximately
2% from fiscal year 2023-2024.
Due to the pandemic, staff did not move forward with reinstating the five-year term for applying the CPI to the fee
in FY 2021-22. The above table details the CPI since 2016, and the annual increases that have been applied each
year. With the exception of 2016, the annual increase has lagged behind actual CPI, but has helped the sewer fee
keep up with corresponding rises in construction cost due to inflation and supply chain disruptions. This year’s CPI is
2%.
ANNUAL INCREASES
Because the costs of providing the sewer service may increase over time, beginning July 1, 2023 and each July
thereafter, the charge per ESU established in 2022-2023 shall be increased by the annual increase in the Consumer
Price Index for Urban Wage Earners and Clerical Workers in the Los Angeles-Long Beach-Anaheim (this used to be
referred to as Los Angeles-Riverside-Orange County, it is a continuous index linked to the previous index), CA Area
(CPI), including all items as published by the US Bureau of Labor Statistics as of January 1 of each year, not to exceed
five percent (5%) 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.
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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 services 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.
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 2024/2025. 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 2024/2025, per the County's assigned land use classification of each parcel within the City that was
available at the time this Report was prepared.
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EXAMPLES OF ESUs BY LAND USE - Residential
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EXAMPLES OF ESUs BY LAND USE - Non-Residential
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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
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NV5
NV5
133 Technology Drive, Suite 200
Irvine, CA 92618
(949) 585-0477
www.nv5.com
Jeffrey M. Cooper, PE
COO, NV5
(949) 585-0477
Jeff.Cooper@nv5.com
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State of California )
County of Los Angeles ) ss
) City of Hermosa Beach
July 17, 2024
Certification of Council Action
RESOLUTION NO. RES-24-7444
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, ADOPTING THE REPORT PROPOSING TO HAVE SEWER
SERVICE CHARGES COLLECTED ON THE TAX ROLL FOR THE FISCAL YEAR
2024–2025 AND DIRECTING THE CITY CLERK OF THE CITY TO FILE SAID
REPORT WITH THE LOS ANGELES COUNTY AUDITOR-CONTROLLER TO
PLACE SAID CHARGES ON THE TAX ROLL
I, Myra Maravilla, City Clerk of the City of Hermosa Beach do hereby certify
that the above and foregoing Resolution No. RES-24-7444 was duly approved and
adopted by the City Council of said City at its regular meeting thereof held on
the 9th day of July 2024 and passed by the following vote:
AYES: MAYOR MASSEY, MAYOR PRO TEMPORE FRANCOIS, and
COUNCILMEMBERS SAEMANN, DETOY and JACKSON
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
________________________________
Myra Maravilla,
City Clerk
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