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HomeMy WebLinkAboutCC AG PKT 2005-10-24 #P 9,r7 6 3 C ' 9 ') AGENDA REPORT DATE: October 24, 2005 1 TO: Honorable Mayor and City Council 0 10-(I) �•� r . c ''� THRU: John B. Bahorski, City Manager ,0 FROM: Mark K. Vukojevic, P.E., Director of Public Works /City Engineer 4 `` SUBJECT: SEWER RATE ADJUSTMENT aPcP SUMMARY OF REQUEST: Conduct a public hearing for the sewer capital rate adjustment and the additional equity sewer rate adjustments for Sunset Aquatic Park, and upon closing of the public hearing, consider adoption of Resolution Number 5386 approving the sewer rate adjustments. BACKGROUND: • On August 8, 2005, City Council adopted the 2005 Sewer System Master Plan Update (SSMP) and directed staff to proceed with the sewer capital rate adjustment and the sewer rate adjustments for Sunset Aquatic Park. Notices for the public hearing were mailed to both property owners and sewer users on September 9, 2005. Additional notice was also printed in the local newspaper. Approximately six comment letters were received by the City and City responses were sent as well. Per Health and Safety Code 5471, four affirmative City Council votes are required to raise the sewer rates as proposed. The following information is provided as background and is excerpted from the August 8, 2005 City Council report. The 2005 Sewer System Master Plan Update (SSMP) provides critical update information for the decision making process in the operation of a Sewer System Enterprise. The previous 1999 Sewer System Master Plan (SSMP) was the first comprehensive sewer system document for the City's system and was the basis for the collection of the Sewer Capital Charge, beginning in 2001. The Sewer Capital Charge provides funding for the rehabilitation of the sewer system components such as pump stations and pipelines. The updated SSMP details the improvements made in the system over the past five years, new information regarding the requirements of the State Regional Water Quality Control Board, recent video inspection of the system, identification of capacity deficient segments and a financial analysis of the Sewer Enterprise Fund. In summary, the report identifies an aged system needing rehabilitation and improvement, relatively few ratepayers in the system, and approximately $15 million in capital improvements required over the next 10 years with the recommendation that sewer capital rates be adjusted to provide adequate service. The City's sewer system currently contains approximately 32 miles of pipe varying from 6 to 24- inches in diameter, 730 manholes and 7 sewer pump stations (previously 9 pump stations) and is Agenda Item P maintained on a daily basis by Public Works Staff. The system was primarily built in the 1920's, 1950's, 1960's, and recent improvements during the last five years. As detailed in the SSMP, there are seven major wastewater drainage areas within the City's service area including all of Old Town, Aquatic Park, the Hill, College Park East, Old Ranch Towne Center, the Naval Weapon Station, and the recently constructed Centex Homes tract. All of the sewage generated from these areas is ultimately conveyed to the Orange County Sanitation District (OCSD) pump station located at Seal Beach Blvd. and Westminster Ave. and pumped to OCSD Plant No. 2 in Huntington Beach for treatment and disposal. Within the City's boundary limits but not served by the City's system are the communities of Leisure World, College Park West, Rossmoor Shopping Center and Surfside. There are approximately 5,000 sewer service users in the City's system. In 1999, the SSMP revealed approximately $10 million in needed sewer capital improvements and replacements over the next ten years and until 2001, a dedicated revenue source did not exist for replacing sewer infrastructure. Orange County Sanitation District was expected to provide approximately $2 million in matching grant funds. In April of 2000, a public hearing was conducted and City Council established the City's first Sewer Capital Fund service charge which was $5.83 for a typical household. City Council issued a Certificate of Participation (COP) Bond and received approximately $4 million in funding to begin projects. At that time, since the funding did not include the entire Capital Program, it was discussed that Council would review and adjust the fees in the future. Council also established connection fees for new developments connecting to the sewer system. In 2000/2001, the Public Works Department began a comprehensive sewer capital improvement program and has completed the following improvement projects: • Replacement of the Boeing Sewer Pump Station • Replacement of the Adolfo Lopez Pump Station • Station 35 Sewer Pump Station Electrical Rehabilitation phase 1 (planned) • Rehabilitation of the Aquatic Park Pump Station No. 2; new force main for Aquatic Park to Huntington Beach; removal of Aquatic Park Pump Station No. 1 • Removal of Marina Community Center Pump Station by rerouting the sewer on Marina Dr. • Sewer replacement in Main St. Alley • Sewer replacement in 13` 1 4` h , & 15 St. alleys north of Electric Ave. • Sewer replacement in 13 and 14 St. alleys south of Electric Ave. • Conducted video inspection and condition assessment of the entire gravity system The allocated funding provided approximately $4 million; sewer connection fees from new developments provided approximately $500,000; OCSD grants provided approximately $500,000. OCSD has discontinued their grant program and the City only received a quarter of the expected funds. In total approximately $5 million worth of significant improvement projects were funded and completed. However, the remaining portions of the 1999 SSMP remain unfunded. In April 2002, the Regional Water Quality Control Board (RWQCB), Santa Ana Region, issued Order No. R8- 2002 -0014, General Waste Discharge Requirements (WDR) for all Sewage Agenda Item r Collection Agencies in Orange County within the Santa Ana Region. This order places requirements on all wastewater agencies in an attempt to stem the rising trend of beach closures and impacts of ocean water quality that sewage spills and leaks can cause. These are called Sanitary Sewer System Overflows (SSO). If these discharges of sewage from any sewage spill or SSO are not fully contained and cleaned up, and there is a discharge of sewage to surface waters of the State, or the SSO causes a nuisance, it is a violation of this order, Sections 13260 and 13376 of the California Water Code, and Section 301 of the Clean Water Act. RWQCB can impose penalties for failure to follow the requirements of this order. The Order prohibits the discharge of untreated sewage to any surface water stream, natural or man made, or to any drainage system intended to convey storm water runoff to surface water streams. The Order includes numerous provisions, including: • Properly fund, manage, operate, and maintain all parts of the collection system • Limit fats, oils, greases, and other debris that may cause blockages in the sewage collection system, and prepare a Grease Control Program by December 30, 2004 • Provide adequate capacity to convey base flows and peak flows, including wet weather flows, and document it in a System Evaluation and Capacity Assurance Plan by July 30, 2005 • Identify and prioritize structural deficiencies in the entire system, with short term and long term rehabilitation actions, and document it in a Sewer System Rehabilitation Plan by September 30, 2005 • Prepare a Sewer System Management Plan (SSMP) to address all requirements of the Order by September 30, 2005 The Regional Board enacted Order No. R8- 2002 -0014 under the authority of the Porter - Cologne Water Quality Control Act ( "Porter - Cologne Act ") which appears at Water Code sections 13020 et. seq. The Porter - Cologne Act authorizes administrative enforcement remedies, including monetary civil penalties, against any agency that violates an order issued pursuant to the Act. Failing to submit an SSMP or submitting an SSMP that fails to demonstrate that the agency is adequately funding, managing, operating and maintaining its system, as the Order requires, is a violation of the Order. The Regional Board can administratively issue cease and desist orders and /or impose fines up to $10,000 per day for each day of violation or petition the Superior Court to impose up to $25,000 per day for each day of violation. [Water Code section 13385] Additionally, since the Order states that the Regional Board will consider the adequacy of the SSMP in any enforcement action (Provision 12 at Page 8), an inadequate SSMP, including inadequate financing, can subject an agency to more severe monetary civil penalties for sewer spills. The Porter - Cologne Act empowers the Regional Board to seek fines of up to $25 per gallon of sewage not cleaned up [Water Code section 13385] and issue abatement orders which carry up to $15,000 per day fines for non - compliance. [Water Code section 13350]. Further, federal law empowers the Regional Board to seek up to $32,500 in penalties for each spill that violates the Clean Water Act. [33 U.S.C. §1319] An inadequate SSMP could be grounds for the Regional Board seeking the upper Agenda Item I limit of allowable penalties in any one of these enforcement actions. In addition, third parties may bring civil lawsuits against agencies for sewer spills. The Public Works Department has continued to maintain a very low amount of SSO's since the inception of the Sewer Capital Improvement Program and the Waste Discharge Requirements (WDR). The City has been complying with the many deadlines and requirements of the WDR. On August 8, 2005, City Council approved the 2005 Update to the Sewer System Master Plan. The next step is to approve the Sewer System Management Plan, which is being sent to City Council under separate cover, and implement the recommendations of the SSMP. The SSMP update contains the detailed list of improvements made in the system over the past five years, new detailed information regarding the requirements of the State Regional Water Quality Control Board, recent video inspection of the system, identification of capacity deficient segments and a financial analysis of the Sewer Enterprise Fund. Over the past five years, half of the City's sewer pump stations have been re- constructed, rehabilitated or removed and several segments of sewer pipe have been re- constructed. The SSMP update identifies the remaining sewer pump stations to be replaced or rehabilitated. It also identifies new sewer pipeline improvements based upon new video inspection information and capacity analysis. The video inspections have provided detailed information regarding the condition of the pipe including cracks, fractures, offsets, holes, deposits, roots, grease, taps, and any structural damage which could result in SSO's. This information as described in Section 7 of the SSMP is ranked based on severity and included in the Capital Improvement Program. The capacity analysis as described in Section 5 of the SSMP includes detailed hydraulic modeling, visual observations, field measurements, and flow monitoring with specialized equipment. In basic terms, this section analyzes pipes that are flowing near full levels. This analysis and plan includes a new set of projects to be implemented to improve the system's capacity to the meet the City's capacity criteria. In some cases further monitoring is needed over the next few years to verify capacities. These projects are estimated to cost approximately $15 million phased of the next 10 years. An approved financial plan to fund these improvements will be the final element of the System Rehabilitation, Evaluation, and Capacity Assurance Plan. Chapter 9 of the SSMP update explains the current fiscal analysis of the Sewer Enterprise Fund. Review of the revenues and expenditures of the Maintenance and Operations (M/O) Fund and the Capital Improvement Fund shows that the existing rate structure cannot generate sufficient revenue to implement the recommended capital improvements. Sewer facilities last for several generations and consideration should be given as to how the needed facilities are to be funded. To overcome the revenue shortfall, two different financing alternatives were formulated and evaluated. The first is a pay -as- you -go- alternative, whereas the second proposes the issuance of additional bonded indebtedness to construct the needed capital improvements. Both alternatives implement the recommended capital improvement program. However, the second alternative, which uses bond financing, is recommended because bond financing is cost effective when compared to construction inflation costs. Rate increases are also more gradually spread over a longer time period. Under this alternative, it is proposed that the rate be raised 20% over the next three years, 15% over the next following three years, and 12 %, 10 %, and 5 % in the Agenda Item following next three years respectively. The typical residential monthly rate annually increases approximately $1 to $2 dollars per month for the next five years. On August 8, 2005, City Council recommended pursuing the bond financing alternative and Staff has prepared the rate structure as such. The City of Seal Beach provides water and wastewater service to the Sunset Aquatic Park, owned by the County of Orange. The 63 -acre park was acquired by the County from the US Navy in 1963 and has 276 boat slips, boat ramps, and picnic areas and is operated by a leased contractor. The sewer system is expensive to operate and maintain. Although the City charges the County a fee for providing sewer service, the fee does not cover the actual operation and maintenance costs associated with providing sewer service to the users there. The cost burden has therefore fallen upon the ratepayers of Seal Beach, who derive little benefit from the park. Residents of Seal Beach infrequently use the park because of its location. A site - specific rate study was conducted at Sunset Aquatic Park and it was determined that the Seal Beach ratepayers are subsidizing the sewer service at the park at an annual cost of $69,900. The existing rate structure cannot generate sufficient revenue to maintain and implement the existing or recommended capital and maintenance program. It is recommended that the City raise the services rates for this specific area using equity charges as described below and recover this cost from the park operator. The sewer system is operated as an "enterprise" system. This means the City's sewer utility must be self - supporting from charges made by the City for sewer furnished to customers and all services rendered in connection with its operation. It also means that money collected from the service provided can only be used for sewer related purposes and cannot be used for other city programs such as public safety or parks. As part of the Council adopted Budget and Fiscal Policies, "the City will set fees and rates at levels which fully cover the total direct and indirect costs - including operations, capital outlay, and debt service...." Council established the first ever Sewer Capital Fund rate in 2000. The legal authority for adjusting sewer rates can be found in Section 9.30.20 of the Code of the City of Seal Beach. That section provides for the establishment of sewer rates by resolution of the City Council. Recommended Additional Equity Charge Monthly Sewer Service and Capital Fund Charges for Sunset Aquatic Park Meter Size Sewer Service Sewer Capital Equity Charge Equity Charge 2 -inch $498.75 $661.25 The proposed sewer equity rate is in addition to the existing and proposed sewer fees and will fund the City's additional cost to provide sewer service including inspection, maintenance, record keeping and regulatory compliance and capital replacement, rehabilitation of the sewer Agenda Item system, and improvement of facilities to accept, pump, and transport sewage and wastewater and to comply with all regulatory requirements at Sunset Aquatic Park. Recommended 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 1654 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 3 199.28 239.14 286.96 344.36 396.01 455.41 523.72 586.57 645.23 677.49 697.81 718.75 740.31 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 6 507.74 609.29 731.15 877.37 1,008.98 1,160.33 1,334.38 1,494.50 1,643.95 1,726.15 1,777.93 1,831.27 1,886.21 8 1060.00 1,272.00 1,526.40 1,831.68 2,106.43 2,422.40 2,785.76 3,120.05 3,432.05 3,603.65 3,711.76 3,82312 3,937.81 10 1060.00 1,272.00 1,526.40 1,831.68 2,106.43 2,422.40 2,785.76 3,120.05 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 The proposed sewer capital rates will apply to all sewer service connections and will fund 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. On September 9, 2005, the City mailed notice of the proposed rate adjustment to each sewer user and property owner, explaining the total amount of the proposed rate adjustment, the amount each sewer user would pay, the duration of the payments, the reason for the adjustment in rates, the basis upon which the rate adjustment was calculated, and instructions on providing written comments to the City on the proposed rate adjustment, together with the date, time, and location of a public hearing on the proposed rate adjustment. This information was also presented to Council on August 8, 2005. Pending City Council direction, the rates could go into effect within 30 days. 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. Mailing of notices required the expenditure of additional funds under this account as well. Adjustment of the sewer capital rates by Council will fund a new 10 -year Sewer Capital Improvement Program. Adjustments of the sewer rates for Sunset Aquatic Park will provide additional equity fees to fund the City's additional 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 Agenda Item comply with all regulatory requirements at Sunset Aquatic Park. If the rates are not adopted, the system will continue to deteriorate and reliability of the system cannot be guaranteed, creating unknown potential emergency repair costs and potential fines and public health concerns due to sewer system failures. COMPLIANCE WITH PROPOSITION 218 AND THE CALIFORNIA CONSTITUTION Increases to water and sewer charges are exempt from the election requirements of Proposition 218. Art XIIID, sec 6 © of the California provides, "Except for fees or charges for sewer, water, and refuse collection services, no property related fee or charge shall be imposed or increased unless and until that fee or charge is submitted and approved by [an election]." The City has fully complied with Proposition 218 by mailing notice and holding a public hearing. Indeed, the City has provided more notice of this hearing than that which is required by law. RECOMMENDATION: It is recommended that City Council conduct a public hearing for the sewer capital rate adjustment and the additional equity sewer rate adjustments for Sunset Aquatic Park, and upon closing of the public hearing, consider adoption of Resolution No. approving the sewer rate adjustments. • Prepared By: 1, Mark K. Vukojevic, P.E. Director of Public Works /City Engineer • NO 0 ND P'- " :•• fi 4 /IL ff f, _ _ _ _ _ _ _ ... _ _ _ _ Jo,,' B. Bahorski t , Manager Attachment: Resolution No. Adjusting Sewer Rates Correspondences Received and Responses Notice of Public Hearing Reference: 2005 Update, Sewer System Master Plan 2005 Sunset Aquatic Park Rate Study Agenda Item 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 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 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. The existing sewer capital fund charge structure simply cannot generate sufficient revenue to implement the capital improvements recommended by the SSMP. Accordingly, the City Council adopted the SSMP recommendation that sewer capital rates be adjusted to provide adequate service 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. 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. 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. 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 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 4 165.36 198.43 238.12 285.74 328.60 377.89 434.58 486.73 535.40 562.17 579.04 596.41 614.30 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 21.66 518 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 15-18 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 3 199.28 239.14 286.96 344.36 396.01 455.41 523.72 586.57 645.23 677.49 697.81 718.75 740.31 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 6 507.74 609.29 731.15 877.37 1,008.98 1,160.33 1,334.38 1,494.50 1,643.95 1,726.15 1,777.93 1,831.27 1,886.21 8 1060.00 1,272.00 1,526.40 1,831.68 2,106.43 2,422.40 2,785.76 3,120.05 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 2,785.76 3,120.05 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 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 system, or subsequently connects to the city sewer system. The Capital Charges in the "Commercial/Governmental" 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. 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 billing 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 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 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: 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 5386 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 24th day of October , 2005. City Clerk