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Home My WebLink AboutCC Res 5386 2005-10-24 RESOLUTION NUMBER 5386 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH ADJUSTING SEWER CAPITAL FUND CHARGES FOR ALL USERS CONNECTED TO THE CITY SEWER SYSTEM RECITALS I 1. The City of Seal Beach maintains a city sewer system ("System") for sewer users in the City of Seal Beach. 2. Until the year 2000, a dedicated revenue source did not exist for replacing sewer infrastructure and there was not a regular replacement program for the aging sewers and pump stations. At that time, a sewer capital fund charge was established per Ordinance No, 1460 dated May 22,2000, and since then the City has completed approximately $5 Million in sewer infrastructure replacement. 3. On A~~t'\872'PQs, City Council adopted the 2005 Sewer System Master Plan Update ("SS~"). . Ini.s~ary, the SSMP identifies: an aged System needing rehabilitation:and 'improveIfterit~~ insufficient revenue generated from charges charged to users to pay fo~ the cost ofiu1;adlXluate System; and approximately $15 million in capital improvements oveiJIie. \text 'I a years needed to maintain an adequate System. The existing s~er capital fUnd chlll'~e structure simply cannot generate sufficient revenue to implement tJ{e:<<apital imp'rov~fuents recommended by the SSMP. Accordingly, the City Council adopted' ihe SS~' recommendation that sewer capital rates be adjusted to provide adequa~ice and directed staff to proceed with the sewer capital rate adjustment and the sewer rate adjustments for Sunset Aquatic Park, To overcome the revenue shortfall, the revised Sewer Master Plan recommends a $15 Million capital plan for sewer facility improvement to sustain the operation of the sewer system, comply with waste discharge requirements, prevent sewage spills, and improve the aging infrastructure including improvements to sewer capacity and pumping stations by increasing the sewer capital fund charge. I 4. A site-specific rate study ("Study") was conducted for Sunset Aquatic Park. The Study establishes that the charges and fees generated by the users in the Park are insufficient to pay the cost of the sewer service provided to such users. The Study recommends that, in addition to existing service charges, and the capital charges proposed to be increased by this Resolution, additional charges ("SAP Charges") be established so that the revenue generated by the users connected to the System in the Park is sufficient to maintain and implement the capital and maintenance program. 5. Section 9.30.020.B of the Seal Beach Municipal Code provides for the establishment and modification of sewer charges by resolution of the City Council. 6. The City caused a report ("Report") regarding the proposed sewer capital fund charge adjustment ("Capital Charge") and SAP Charges be prepared and filed with the City Clerk. The Report, SSMP and the Study are on file with the City Clerk and available for public review and inspection. 7. Hereinafter, the SAP Charges and the Capital Charge will be referred to collectively as the "Charges" in this Resolution. The Report identified the parcels upon which users of the city sewer system are located as to whom the Charges would be imposed and calculated the amount of proposed Charges. I 8. On September 9,2005, in full compliance with Proposition 218 and Government Code Section 66016, where applicable, the City mailed notice of the proposed Charges to each sewer user, explaining the total amount of the proposed Charges, the amount each sewer user would pay, the duration of the payments, the reason for the adjustment in the Charges, the basis upon which the Charges was calculated, and instructions on providing written comments to the City on the proposed Charges, together with the date, time, and location of a public hearing on the proposed Charges. I 1 I Resolution Number 5386 9. The City Council has directed staff to initiate the process required for the issuance of bonds in the amount of$7 million dollars to assist in financing the capital plan. 10. The City Council held a public hearing regarding the proposed Charges on October 24, 2005, at which time the City Council received public testimony and considered written comments on the Charges. 11. Upon conclusion of the hearing, the City Council determined that (i) revenues to be derived from the proposed Charges will not exceed the funds required to provide sewer service, (ii) revenues to be derived from the Charges will not be used for any purpose other than that for which the proposed Charges will be imposed, (iii) the amount of the proposed Charges imposed upon any parcel will not exceed the proportional cost of the sewer service attributable to the parcel, (iv) no proposed Charges will be imposed unless sewer service is actually used by, or immediately available to, the owner of the property in question, and (v) the proposed Charges will not be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services where the service is available to the public at large in substantially the same manner as it is to the property owners subject to the proposed capital fund charge. 12. After the conclusion of the hearing, City staff tabulated all written protests timely submitted and the City Attorney informed the Council that there were not enough written protests to constitute a majority protest. Accordingly, the City Council determined that there was not a majority protest to the Charges. 13. All legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Council hereby specifically finds that all the facts set forth in the Recitals of this Resolution are true and correct. Section 2. The following sewer capital fund charges are hereby established and fixed as specified in the following schedule and in accordance with provisions below: Monthly Sewer Capital Fund Charges "... #-" Meter SIZe ....0. ..... oo:ar .7-D. ..... "". 10..11 11-12 12-13 13-14 14-1S 15-18 16-17 RUldenbaJ , 1 ... ..7 1161 f393 ,.02 1842 21.18 23.72 26.1 27... 2822 23111 .fi 2 2332 27.. .... ..3D .... 5323 .'23 88." 7&.51 7823 .'88 "" '8538 ,.... 23812 28574 ..... Sn.sa 434.58 488.73 535.... 582 17 57804 59641 . 27B66 33188 ... .. 47807 549.78 83225 72708 81433 895" ...... 988" 99783 , 027.77 ,. 1484 1781 21.37 2... 2349 339' 3900 .... .... .... 51.96 ..52 .., ... 700 ..... '.111 1159 ,... ,... 1718 ,." 19.82 20.41 2' D3 21 5J8 .83 7.. ... '.111 1159 ,... '.32 1718 ,." 19.82 20.41 21 D3 21" """.so ." 2... 2011 20" ,." ,." ,.11 12" ,." .11 .11 ." ," . Meter Size ...... ..... . ll8-D7 " 07-oB 08-O1l ...,. 1M1 11-12 12-13 13-1. 14-1S 15-18 16-17 Commel'Cl8IIG ""-:-- ...... ovemment 1 1378 ,... ,... 2381 2738 31.49 382' ..... 4482 ..85 .... ..70 ." 2 7208 .... 10380 '"'' 14324 18472 18943 21218 23338 ..... 252... 259'" 28777 3 19928 23914 2.. .. ....38 388., 45541 52372 ... .7 ".23 677 .. 69781 71875 74031 . 359 .. 43121 51745 820 .. 71408 82119 ... 37 1057.70 1.16347 122164 125829 1,296 04 133492 . 6/1774 8082 73115 /177.7 1.008 98 116033 1 ... 38 1.49450 1.84395 172815 177793 1,831.27 1888.21 . 108000 127200 1.52640 183188 210843 2.42240 278576 12005 ~432 .. . 6D3 85 371176 382312 393781 ,. '08000 127200 1.52640 183188 2.10843 2.42240 278578 3,12005 '.432 .. . 6D3 85 371176 3.82312 393781 ,. '.02 2182 2... 31.14 3581 4118 47.38 53... .... .'26 831. .... .... '" 638 783 .,. 10.99 '2" ,... 16.71 1872 2.59 21.62 2227 2284 23 .38 7.83 .,. 10.99 '2" ,... 1871 1872 2.58 21.62 2227 2284 2383 Section 3. The Capital Charges in the "Residential" portion of the schedule in Section 2 shall apply to each residential unit that has a connection to the city sewer systern, or subsequently connects to the city sewer system. The Capital Charges in the "CommerciaVGovernmental" portion of the schedule in Section 2 shall apply to each non-residential business, industrial enterprise or other non-residential entity that has a connection to the city sewer system, or subsequently connects to the city sewer system. Resolution Number 5386 Section 4. The Charges set forth above for fiscal year 2005-2006 shall become effective 30 days after the date this Resolution is adopted. Thereafter, each respective Charge set forth above shall become effective the first bilIing cycle of each respective fiscal year. Section 5. The City Council hereby finds and determines that (i) revenues to be derived from the Charges will not exceed the funds required to provide sewer service, (ii) revenues to be derived from the Charges wilI not be used for any purpose other than that for which the Charges will be imposed, (iii) the amount of the Charges imposed upon any parcel wilI not exceed the proportional cost of the sewer service attributable to the parcel, (iv) no Charges wilI be imposed unless sewer service is actually used by, or immediately available to, the owner of the property in question, and (v) the Charges wilI not be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services where the service is available to the public at large in substantially the same manner as it is to the property owners subject to the proposed capital fund charge. I Section 6. All provisions in Seal Beach Municipal Code Chapter 9.30, and any provisions in resolutions pertaining to the Charges shall remain in effect except as modified herein. PASSED, APPROVED AND ADDOPTED by the City Council of the City of Seal Beach this 24th day of October , 2005 by the following vote: ABSTAIN: Council Members_rZv, f~ t3favJfln. ~& I f / ~ ~ ~~2 Mayor ~ AYES: NOES: Council Members ABSENT: Council Members I Council Members ATTEST: ~- 1II.du Cit Clerk ,[j//)l(~( STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF SEAL BEACH ) I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing Resolution is the original copy of Resolution Number 5386 on file in the I office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach at a meeting thereof held on the 24th day of October ,2005. ~ [be;. . ty lerk