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HomeMy WebLinkAboutCC Res 7645 2025-05-12 RESOLUTION 7645 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH ADOPTING REVISED PROCEDURES FOR THE CONDUCT OF A PUBLIC HEARING AND MAJORITY PROTEST PROCEEDINGS RELATING TO PROPOSED INCREASES TO THE CITY'S WATER AND SEWER SERVICE CHARGES IN ACCORDANCE WITH ARTICLE XIII D OF THE CALIFORNIA CONSTITUTION, THE PROPOSITION 218 OMNIBUS IMPLEMENTATION ACT, AND GOVERNMENT CODE SECTIONS 53759.1 AND 53759.2 WHEREAS, Article XIII D of the California Constitution and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750, et seq.) (Implementation Act) impose certain procedural and substantive requirements for imposing new or increased property-related fees and charges, as defined in Article XIII D (Charges), including the requirement to conduct a public hearing and majority protest proceedings for consideration of new or increased Charges; and WHEREAS, Government Code Sections 53759.1 and 53759.2 provide for an optional exhaustion of administrative remedies requirement in connection with imposing new or increased water or sewer (also referred to as "wastewater") Charges if the City complies with certain requirements; and WHEREAS, neither Article XIII D of the California Constitution nor the Implementation Act provide specific guidance for the conduct of the public hearing and majority protest proceedings; and WHEREAS, consistent with Article XIII D, the Implementation Act, and Government Code Sections 53759.1 and 53759.2, the City Council desires to adopt procedures for the conduct of a public hearing and majority protest proceedings and provide for an exhaustion of administrative remedies requirement in connection with proposed increases to the City's water and sewer Charges. NOW THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. In accordance with Article XIII D, the Implementation Act, and Government Code Sections 53759.1 and 53759.2 the City Council hereby approves the Revised Procedures for the Conduct of a Public Hearing and Majority Protest Proceedings Relating to Proposed Increases to the City's Water and Sewer Service Charges, as set forth in Exhibit A, attached hereto and incorporated herein by reference (Revised Procedures). The Revised Procedures supersede any other procedures adopted by the City Council applicable to the adoption of water and sewer rates. Section 2. This Resolution shall take effect upon its adoption. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of May 2025, by the following vote: AYES: Council Members Kalmick, Wong, Senecal, Steele, Landau NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa L dau, yor AT EST: . r.›, loria D. Harper, City Clerk �l''�� 9�'Q � STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7645 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on th 12th day of May 2025. loria . H rper, City Clerk EXHIBIT A I CITY OF SEAL BEACH REVISED PROCEDURES FOR THE CONDUCT OF A PUBLIC HEARING AND MAJORITY PROTEST PROCEEDINGS RELATING TO PROPOSED INCREASES TO THE CITY'S WATER AND SEWER SERVICE CHARGES The following procedures have been adopted by the City Council of the City of Seal Beach for the purpose of conducting a public hearing and majority protest proceedings required by Article XIII D of the California Constitution for consideration of proposed increases to the City's water and sewer service charges and for the purpose of establishing an exhaustion of administrative remedies requirement pursuant to Government Code Sections 54759.1 and 54759.2. May 12, 2025 I. Definitions 1. "Customer of Record" means the person whose name appears on the City's records as the person who contracted for, and became obligated to pay for, water or sewer service, as appropriate, for the Identified Parcel, and includes tenants of Identified Parcels who are directly liable to pay the charge for water or sewer service, as applicable. 2. "Identified Parcel" means the parcel of real property to which the Proposed Increase will apply. 3. "Proposed Increase" means the City's proposed increase to the applicable rates used to calculate the charges for water or sewer service, as appropriate. 4. "Record Owner" means the owner of an Identified Parcel whose name and address appears on the last Orange County equalized secured property tax assessment roll (the "Assessment Roll"), or in the case of any public entity, the State of California, or the United States, means the representative of that public entity at the address of that entity known to the City. 5. "Exhaustion of Administrative Remedies Requirement" means the written objection requirement under Section III. II. Conduct of Public Hearing- Majority Protest Proceedings A. Eligibility to File a Written Protest 1. Any Customer of Record or Record Owner may file a written protest against the Proposed Increase to the water charge and/or Proposed Increase to the sewer charge, as applicable. 2. If the owner of an Identified Parcel is not shown on the Assessment Roll, such owner may file a written protest for such parcel by filing with the City Clerk a proxy from the Record Owner in a form satisfactory to the City Attorney or evidence of ownership satisfactory to the City Attorney. Any such proxy or evidence must be received by the City Clerk prior to the conclusion of the public hearing on the Proposed Increase ("Public Hearing"). 3. When an Identified Parcel is held by a partnership, as community property, in joint tenancy, or as a tenancy in common, any partner, spouse, joint tenant, or tenant in common, as the case may be, may file a written protest for such parcel. 4. An executor, administrator, or guardian may file a written protest for an Identified Parcel on behalf of the estate it represents. If such representative is shown on the Assessment Roll as paying taxes and assessments levied against the parcel, that fact shall establish the right of such representative to 1 file the written protest. If such representative is not shown on the Assessment Roll, the representative must file with the City Clerk written documentation satisfactory to the City Attorney establishing the legal representation. Any such documentation must be filed with the City Clerk prior to the conclusion of the Public Hearing. 5. When the Customer of Record is, or an Identified Parcel is held by, a corporation or unincorporated association, a written protest may be filed by any person authorized in writing by the board of directors or trustees or other managing body thereof to take such action. The corporation or unincorporated association must file with the City Clerk written authorization satisfactory to the City Attorney. Any such written authorization must be filed with the City Clerk prior to the conclusion of the Public Hearing. B. Submission of Written Protests 1. Written protests must be mailed to the City Clerk at City Hall, emailed to the City Clerk, or delivered in person to the City Clerk at City Hall or at the Public Hearing and must be received prior to the conclusion of the Public Hearing. 2. To be counted in determining the existence of a majority protest against a Proposed Increase ("Majority Protest"), each written protest must: (i) clearly state opposition to the Proposed Increase, (ii) identify the property(ies) covered by the protest either by street address(es), assessor's parcel number(s), or other clear identification of the property(ies); and (iv) include the legibly printed name and an original signature(no copies)of the Customer of Record or Record Owner that is filing the written protest. No protest submitted orally or by facsimile will be counted in determining the existence of a Majority Protest. A written protest may state opposition to the Proposed Increase to the water charge, opposition to the Proposed Increase to the sewer charge, or opposition to both the Proposed Increase to the water charge and the Proposed Increase to the sewer charge, as applicable. A separate written protest may be submitted for each Identified Parcel or a written protest may be submitted that that identifies multiple Identified Parcels. 3. No protest received after the close of the Public Hearing shall be counted in determining the existence of a Majority Protest. The last pick up by the City Clerk of protests mailed, emailed, or delivered to City Hall will occur at 5:00 p.m. on the date scheduled for the Public Hearing. To ensure that protests which are mailed, emailed, or delivered to City Hall are received by the City Clerk prior to the close of the Public Hearing, such protests must be received by the City Clerk at City Hall prior to 5:00 p.m. on the date scheduled for the Public Hearing. The City Clerk shall endorse on each written protest the date it is filed with the City. The City Clerk shall identify any written protests which are received after the close of the Public Hearing. 2 4. Written protests may be withdrawn in writing at any time before the conclusion of the Public Hearing by the person who submitted the written protest. C. Conduct of the Public Hearing; Determination of the Existence of a Majority Protest 1. At the time, date and place fixed for the Public Hearing, the City Council shall: i. Hear a staff presentation pertaining to the Proposed Increase to the water charge and the Proposed increase to the sewer charge; ii. Hear all persons interested in the matter of the Proposed Increase to the water charge and/or the Proposed Increase to the sewer charge; and iii. Receive all written protests regarding the Proposed Increase to the water charge and the Proposed Increase to the sewer charge. 2. The existence of a Majority Protest will be determined separately for the Proposed Increase to the water charge and the Proposed Increase to the sewer charge. For the purpose of determining whether a Majority Protest exists, only one written protest for each Identified Parcel will be counted.This means that if a Customer of Record and a Record Owner each file a written protest with respect to the same parcel, only one written protest will be counted in determining the existence of a Majority Protest. 3. The Public Hearing may be continued from time to time, as the City Council determines is necessary to complete its consideration of the Proposed Increase to the water charge and the Proposed Increase to the sewer charge. 4. If the City Council determines at the close of the Public Hearing that valid written protests have been presented, and not withdrawn, representing over 50% of the Identified Parcels subject to the water charge or sewer charge, as applicable, then the City Council shall not approve the Proposed Increase to the water charge or sewer charge, as applicable. 5. If the City Council determines at the close of the Public Hearing that a Majority Protest does not exist, then the City Council may adopt the Proposed Increase. D. Leisure World Leisure World is made up of 16 residential communities, consisting of 16 Mutual Corporations (15 stock cooperatives and 1 condominium association). There is only one Customer of Record (Golden Rain Foundation) in Leisure World. Golden Rain Foundation administers the shared trust property and facilities owned by the 16 Mutual Corporations. As the only Customer of Record with respect to all of the Identified Parcels in Leisure 3 World, Golden Rain Foundation can submit a written protest for one or more of such Identified Parcels (by submitting a separate written protest for each Identified Parcel or submitting a written protest that identifies multiple Identified Parcels). Each Record Owner within Leisure World can submit a written protest for one or more of the Identified Parcels owned by the Record Owner (by submitting a separate written protest for each Identified Parcel or submitting a written protest that identifies multiple Identified Parcels). As of April 28, 2025, there are 253 parcels in Leisure World (consisting of 109 parcels in Mutuals 1-12 and 14-16 under which the residents are shareholders, 126 condominium units in Mutual 17, and 18 parcels owned by Golden Rain Foundation, which include the club houses and other common areas). The 109 parcels in Mutuals 1-12 and 14-16 are owned by 15 different Record Owners, being 15 different Mutual Corporations. Each Mutual Corporation may submit a written protest for one or more of the Identified Parcels owned by the respective Mutual Corporation. The number of parcels owned by each Mutual Corporation are as follows: MUTUALS NUMBER OF PARCELS 1 17 2 14 3 6 4 6 5 8 6 7 7 5 8 6 9 8 10 4 11 5 12 7 14 6 15 8 16 2 TOTAL 109 Residents of Mutuals 1-12 and 14-16 are shareholders of Mutual Corporations, which are stock cooperatives. Shareholders may submit written comments regarding the Proposed Increase prior to the conclusion of the Public Hearing, and the City Council will consider these comments. However, since a shareholder is not a "Record Owner" or "Customer of Record," written comments submitted by a shareholder are not counted in determining the existence of a Majority Protest. Therefore, shareholders should inform their Mutual Corporation and/or the Golden Rain Foundation if they oppose the Proposed Increase and request the Mutual Corporation and/or the Golden Rain Foundation to file a written protest representing the Identified Parcels under their respective control. As stated above, if a Record Owner and a Customer of Record both file a written protest with respect to an Identified Parcel, only one protest will be counted for the parcel. 4 With respect to Mutual 17, each Record Owner of a condominium unit may file a written protest on behalf of their respective unit, as each unit is a separate parcel. III. Exhaustion of Administrative Remedies Requirement A. Exhaustion of Administrative Remedies Procedures If the City complies with the procedures described in subparagraphs (1) through (6) of this Paragraph A prior to the conclusion of the Public Hearing, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for the Proposed Increase to the water charge and/or Proposed Increase to the sewer charge, as applicable, unless that person or entity has timely submitted to the City a written objection to the Proposed Increase that specifies the grounds for alleging noncompliance: 1. Makes available to the public the Proposed Increase no less than 45 days prior to the deadline for a ratepayer to submit a written objection, as established by the City pursuant to subparagraph 4; 2. Posts on its internet website a written basis for the Proposed Increase and includes a link to the internet website in the written notice of the Public Hearing; 3. Mails the written basis for the Proposed Increase to a property owner upon request; 4. Provides at least 45 days for a property owner to review the Proposed Increase and to timely submit to the City a written objection to the Proposed Increase that specifies the grounds for alleging noncompliance; 5. Considers and responds in writing, including the grounds for which a challenge is not resulting in amendments to the Proposed Increase, to any timely submitted written objections prior to the close of the Public Hearing. The City's response shall explain the substantive basis for retaining or altering the Proposed Increase in response to the written objection. Timely submitted written objections and City responses shall be presented to the City Council for consideration prior to or during the Public Hearing; and 6. Includes in the written notice of the Public Hearing, a prominently displayed statement that contains the following information: i. That all written objections must be submitted within the written objection period set by the City and that a failure to timely object in writing bars any right to challenge the Proposed Increase through a legal proceeding. ii. All substantive and procedural requirements for submitting a written objection to the Proposed Increase. 5 B. City Council Responses In exercising its legislative discretion, the City Council shall determine any of the following: 1. Whether the written objections and the City Council's response warrant clarifications to the Proposed Increase; 2. Whether to reduce the proposed charges; 3. Whether to further review before making a determination on whether clarification or reduction is needed; and 4. Whether to proceed with the Public Hearing. C. Submission of Written Objections 1. Written objections must be mailed to the City Clerk at City Hall, emailed to the City Clerk, or delivered in person to the City Clerk and must be received by 5:00 p.m. on the day of the deadline for submitting written objections established by the City pursuant to subparagraph 4 of Paragraph A. 2. Each written objection must clearly specify the grounds for alleging noncompliance of the Proposed Increase with Article XIII D of the California Constitution. I