HomeMy WebLinkAboutCC AG PKT 2005-11-14 #K AGENDA REPORT
DATE: November 14, 2005
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Mark K. Vukojevic, P.E., Director of Public Works /City Engineer
SUBJECT: SEWER RATE ADJUSTMENT FOR AQUATIC PARK
SUMMARY OF REQUEST:
Adoption of Resolution No. approving the sewer rate adjustments.
BACKGROUND:
As noted in the October 24, staff report, the City Council adopted the 2005 Sewer System Master
Plan Update ( "SSMP ") on August 8, 2005. The October 24, 2005 staff report is hereby
incorporated by this reference. In summary, the SSMP identifies: an aged system needing
rehabilitation and improvement; insufficient revenue generated from charges to users to pay for
the cost of an adequate system; and approximately $15 million in capital improvements over the
next 10 years needed to maintain an adequate system.
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 shows that there is an annual
shortfall of $69,900 between the revenue derived from charges and fees generated by the users in
the Park and the actual cost of operating and maintaining the service. The existing rate structure
cannot generate sufficient revenue to maintain and implement the existing or recommended
capital and maintenance program. The Study recommends that, in addition to existing service
and the capital charges, charges ( "Charges") be established so that the revenue generated by the
users connected to the System in the Park become sufficient to maintain and implement the
capital and maintenance program.
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. Representatives of the owner Orange County ( "Owner ") and the ratepayer G &K
("Ratepayer ") presented both written and oral comments regarding the Charges. Such
representatives requested that the Council defer taking action on the Charges until they had an
opportunity to review additional material submitted by the City staff concerning the basis for the
proposed Charges. The City entered into the record the Report, SSMP, Study, October 24, 2005
staff report, staff's oral presentation, written correspondence and testimony.
Agenda Item K
, •
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.
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.
The City Council honored the request from the Owner and Ratepayer and deferred taking action
with respect to the Charges. Staff has had discussion with the Owner and Ratepayer and provided
additional information at their request.
FISCAL IMPACT:
Compliance with the Regional Board Order and the SSMP update has been budgeted under the
existing Sewer Operations Fund as previously approved by City Council. Adjustments of sewer
rates for Sunset Aquatic Park will provide fees in the amount of $69,900 to fund the City's cost
to provide sewer service including inspection, maintenance, record keeping and regulatory
compliance and capital replacement, rehabilitation of the sewer system, and improvement of
facilities to accept, pump, and transport sewage and wastewater and to comply with all regulatory
requirements at Sunset Aquatic Park.
RECOMMENDATION:
It is recommended that City Council adopt Resolution No. approving the sewer rate
adjustment.
Agenda Item
Prepared By: Concur:
d e4g4L-geea-4-t a _____ _ ,,;edde‘....
Sean Crumby, P.E. Mark K. Vukojevic, P.E.,
Deputy City Engineer Director of Public Works /City Engineer
NP . i 1 D AP . D:
fr - /0 9 ________-------._
Jo B. Bahorski
Manager
Attachment: Resolution No. Adjusting Sewer Rates
Reference: 2005 Sunset Aquatic Park Rate Study
Agenda Item _
I•
RESOLUTION NUMBER r•
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH INCREASING THE FEES FOR USERS CONNECTED TO
THE CITY'S SEWER SYSTEM IN SUNSET AQUATIC PARK
. RECITALS
1. The City of Seal Beach maintains a city sewer system ( "System ") for sewer users
in the City of Seal Beach.
2. On August 8, 2005, City Council adopted the 2005 Sewer System Master Plan
Update ( "SSMP "). In summary, the SSMP identifies: an aged System needing
rehabilitation and improvement; insufficient revenue generated from charges charged to
users to pay for the cost of an adequate System; and approximately $15 million in capital
improvements over the next 10 years needed to maintain an adequate System.
3. 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 shows
that there is an annual shortfall of $69,900 between the revenue derived from charges and
fees generated by the users in the Park and the actual cost of operating and maintaining
the service. The existing rate structure cannot generate sufficient revenue to maintain and
implement the existing or recommended capital and maintenance program. The Study
recommends that, in addition to existing service and the capital charges set forth below in
Recital 10, charges ( "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.
4. 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.
5. The City caused a report ( "Report") regarding the proposed Charges to be
prepared and filed with the City Clerk. The Report, SSMP and Study have been filed
with the City Clerk and have been available for public review and inspection since
September 2005.
6. 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.
7. 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.
8. 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. Representatives of the owner Orange
County ( "Owner ") and the ratepayer G &K ( "Ratepayer ") presented both written and oral
comments regarding the Charges. Such representatives requested that the Council defer
taking action on the Charges until they had an opportunity to review additional material
submitted by the City staff concerning the basis for the proposed Charges. The City
entered into the record the Report, SSMP, Study, October 24, 2005 staff report, staff's
oral presentation, written correspondence and testimony.
9. 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
2005 -11 -14 Res SC Sewer rates re Sunset Aquatic Park- 1 -
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.
10. 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 has determined
that there is not a majority protest to the Charges.
11. On October 24, 2005, the City Council established the following sewer capital
fund charges:
Monthly Sewer Capital Fund Charges
Meter Size 04 -05 05-06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14 14 -15 15 -16 16 -17
Residential
1 8 06 9.67 11.61 13.93 16.02 18.42 21.18 23.72 26.10 27.40 28.22 29.07 29.94
2 23.32 27.98 33 58 40.30 46.34 53 29 61.29 68.64 75 51 79.28 81.66 84.11 86 63
3 165.36 198 43 238.12 285 74 328 60 377 89 434.58 486.73 535.40 562.17 579.04 596.41 614 30
4 276 66 331.99 398.39 478.07 549.78 632.25 727.08 814.33 895.77 940.55 968.77 997.83 1,027.77
1.5 14 84 17 81 21.37 25.64 29.49 33.91 39.00 43.68 48.05 50.45 51.96 53.52 55.13
3/4 5.83 7.00 8.40 10 07 11 59 13 32 15 32 17 16 18.88 19.82 20.41 21 03 21 66
5/8 5 83 7 00 8.40 10 07 11 59 13.32 15.32 17.16 18.88 19.82 20.41 21.03 21.66
% increase 0% 20% 20% 20% 15% 15% 15% 12% 10% 5% 3% 3% 3%
Meter Size 04 -05 05 -06 06 -07 07 -08 08-09 09 -10 10 -11 11 -12 12 -13 13 -14 14 -15 15 -16 16 -17
Commercial /G
ovemment
1 13.78 16.54 19.84 23.81 27.38 31.49 36.21 40.56 44.62 46.85 48.25 49.70 51.19
2 72.08 86.50 103 80 124.55 143.24 164 72 189.43 212.16 233 38 245 05 252.40 259.97 267 77
3 199 28 23914 286.96 344.36 396.01 455.41 523.72 586.57 645.23 677.49 697.81 718.75 740.31
4 359.34 431.21 517.45 620.94 714.08 821.19 944.37 1,057.70 1,163.47 1,221.64 1,258.29 1,296.04 1,334.92
6 50774 60929 73115 87737 1,00898 1,16033 1,334.38 1,494.50 1,643.95 1,726.15 1,777.93 1,83127 1,88621
8 1060.00 1,272.00 1,526.40 1,831.68 2,106.43 2,422.40 2,785.76 3,12005 3,432.05 3,603.65 3,711.76 3,823.12 3,937.81
10 1060.00 1,272.00 1,526.40 1,831.68 2,106.43 2,422.40 2,78576 3,12005 3,432.05 3,603.65 3,711.76 3,823.12 3,937.81
1.5 18.02 21 62 25.95 31 14 35 81 41.18 47 36 53.04 58.34 61.26 63.10 64 99 66.94
3/4 6.36 7.63 9.16 10 99 12.64 14.53 16 71 18 72 20 59 21.62 22 27 22 94 23.63
5/8 6 36 7.63 9.16 10.99 12.64 14.53 16.71 18.72 20.59 21.62 22.27 22.94 23.63
12. The City Council honored the request from the Owner and Ratepayer and deferred
taking action with respect 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 Charges are hereby established and fixed for any entity
connected to the city sewer system in the area known as Sunset Aquatic Park, parcels
178 - 571 -01, ( -02), ( -15), ( -16), ( -17), ( -18), and ( -19), and referenced as account number
4944, 4945 4946, 4947, and 4948, of the City's Utility Billing List:
Sunset Aquatic Park Charges
Meter Size Sewer Service Sewer Capital
Equity Charge Equity Charge
2 -inch $498.75 $661.25
Section 3. 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 billing cycle of each respective
fiscal year.
2005 -11 -14 Res SC Sewer rates re Sunset Aquatic Park- 2 -
Section 4. 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 will 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 will not exceed the proportional cost of the sewer service attributable to the parcel,
(iv) no 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 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.
Section 5. 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 ADOPTED by the City Council of the City of Seal Beach
this day of , 2005 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
City Clerk
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 on file in the
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 day of , 2005.
City Clerk
2005 -11 -14 Res SC Sewer rates re Sunset Aquatic Park- 3 -
Sent by: HBP PROGRAM MGMT 714 8346612; 11/08/05 16:36; JetFax #245;Page 1/2
County of Orange
.M7- Resources & Development Management Dept.
Harbors, Beaches and Parks
, �� ti � P.O. Box 4048
/z4-6.0 Santa Ana, CA 92702
Return FAX: (714) 834 -6612
Fax
To: Mark Vukojevic From: Rich Adler
Fax: 562431 -4067 Pages: 2
Ph one: Date: 11/8/2005
Re: CC:
❑ Urgent ® For Review ❑Please Comment ❑ Please Reply ❑ Please Recycle
• Comments:
Linda,
Could you see that Mark gets this? I faxed a copy directly to John. •
Thanks!
Rich Adler
714 -834 -6792
•
N0U -08 -2005 16:01 714 9346612 96% P. 01
Sent•by:•HBP PROGRAM MGMT 714 8346612; 11/08/05 16:37; JetFax #245;Page 2/2
Brysta Specgle, Dircetor
C T7� ORANGE T fir+ 300 N. Flower Se:cet
a tAtIe l l�V1YTY OFO�vG Santa Ana, CA
o P.O. Boa 4045
I S anta Ana, CA 92102.4045
" 4 RESOURCES & DEVELOPMENT MANAGEMENT DEPARTMENT (714) 8342300
lIFOS• Pas: C/14) 834 -5138
November 8, 2005
John Bahorski, City Manager
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
Subject: Sunset Aquatr Park Sewer Equity Charges — Request for Delay of Council Action Scheduled
for November 14, 2005
Dear Mr. Bahorski,
Since the City Council meeting of October 24, 2005, County staff has had the opportunity to review the
following City documents: 1) the "Sewer Rate Adjustment" staff report, dated October 24, 2005; 2) the
"Sunset Aquatic Park Cost of Sewer Service Study', dated October 2005; 3) the "Sewer System Master
Plan Update ", dated August 2005; 4) the "Capital Improvement Program' section of the "Sewer System
Master Plan ", prepared in 1999; and
5) Title 9 of the Municipal Code. While Rich Adler of RDMD /Harbors, Beaches and Parks has had some
brief discussions with Sean Crumby, Deputy City Engineer, no response to my October 20, 2005, letter to
Director of Public Works/City Engineer Mark Vukojevic has been received.
From our review of the above documents, we believe that there is insufficient information to show that the
proposed additional sewer equity charges are being applied in a nondiscriminatory manner. Rather, it
appears — from the information available — that Sunset Aquatic Park, unlike any other sewer customer, is
being targeted for the selective application of these charges. This application may violate stated City
policy, California Government Code Section 66013(a), and applicable case law.
Because of the limited amount of time available since the last Council meeting, a comprehensive
discussion of the matter between County and City staff has not been held or scheduled. It is essential that
this be done before the City Council takes action on the charges. Accordingly, I respectfully request that
Council action on the Sunset Aquatic Park sewer equity charges be postponed until after that discussion
can be held.
Thank you for your consideration. If you have any questions, please contact Rich Adler at (714) 834-
6792.
Sincer-f; ,
/ ' �
:ryan yyi egle, D - ctor
Resolt es and Development Management Department
cc: Tom Mauk, CEO
Vicki Wilson, Deputy CEO
Mark Vukojevic, City of Seal Beach
Sherman Gardner, G&K
..0 i nn -,nn= 4 c • ra 1 71 d RriaRR 1 7 ... .._ 96% P.02