Legislation Details

File #: HIST-5244    Version: 1 Subject:
Type: Historical Status: Public Hearing
In control: City Council Meeting Agenda
On agenda: 6/11/2007 Final action: 6/11/2007
Title: Public Hearing to Consider the Adoption of a Resolution Approving the Engineer’s Report and Ordering the Assessment Levy for the Sewer Users’ Service Charge for Fiscal Year 2007/2008.
Attachments: 1. Public Hearing to Consider the Adoption of a Resol - PH-1__07-06-11_PW-Eng_SUSC Order Assessment - FINAL.pdf, 2. Public Hearing to Consider the Adoption of a Resol - PH-1__Sewer Charges.pdf
City of Culver City, California City Council Agenda Item Report Meeting Date: 06/11/07 Item Number: __PH-1 AGENDA ITEM: Public Hearing to Consider the Adoption of a Resolution Approving the Engineer’s Report and Ordering the Assessment Levy for the Sewer Users’ Service Charge for Fiscal Year 2007/2008 Contact Person/Dept.: Mate Gaspar/PW Phone Number: (310) 253-5602 Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X] Public Hearing: [X] Action Item: [] Attachments: [X] Public Notification: Legal: The Resolution of Intention was posted on the City’s official bulletin board on April 23, 2007 and published in the April 26, 2007 issue of Culver City News. Non-Legal: First Class Postcards were mailed to the property owners on April 27, 2007. Master Notification List on June 6, 2007. Department Approval: Charles D. Herbertson (05/29/07) City Attorney Approval: Carol Schwab (by H. Iker) (06/04/07) City Controller Approval: Marlee Chang (06/06/07) City Manager Approval: Jerry B. Fulwood (06/06/07) RECOMMENDATION: Staff recommends the City Council adopt a Resolution approving the Engineer’s Report and ordering the assessment levy for the Sewer Users’ Service Charge in an amount equal to last year’s rate plus a ten percent (10%) increase for Fiscal Year July 1, 2007 to June 30, 2008. PROCEDURE: Mayor: Announce that this is the time and place for the public hearing to discuss the annual levy of assessments for the Sewer User’s Service Charge for Fiscal Year 2007/2008. City Clerk: Announce that notice of this hearing has been given pursuant to the provisions of Chapter 5.02 of the Municipal Code of the City of Culver City, and pursuant to the City of Culver City, California City Council Agenda Item Report provisions of Resolution 2007-R021, and that the following affidavits are on file in his office: 1. Affidavit of Publication; and 2. Affidavit of Posting. Mayor and Council: Motion to receive and file all affidavits. City Engineer: Present the Engineer's Report and explain method of assessment for the annual levy. City Clerk: Announce the number of written protests received, if any, and announce that copies of all such protests have been delivered to the City Council OR, summarize the contents thereof. Mayor: First, ask to hear from those who have filed a written protest. Next, ask to hear from those in the audience wishing to speak against the proposed assessments. Then, ask to hear from anyone who wishes to speak in favor of the proposed assessments. Mayor and Council: Declare the Public Hearing CLOSED. Mayor and Council: Discussion. Mayor and Council: By Motion, overrule and deny any protests, assuming protests represent less than 50% of property interests. Mayor and Council: By Motion, adopt the Resolution confirming the assessments and the diagrams of the District. BACKGROUND: Culver City currently obtains sewage treatment services at the City of Los Angeles' Hyperion Treatment Plant through an Amalgamated Agreement with the City of Los Angeles. This Agreement requires Culver City to pay a proportionate share of the costs of conveyance, operation, maintenance, repair and capital improvements to upgrade and improve the amalgamated sewerage system. City of Culver City, California City Council Agenda Item Report Culver City also owns and operates a separate sewage collection system, which is connected to the amalgamated system. Federal law requires that all other agencies using the City of Los Angeles' Hyperion Treatment Plant adopt a system of charges to assure that each property served by a public sewer pay its fair share of costs for the operation, maintenance, repair and improvement of the Hyperion Treatment Plant. The “fair share” of each sewer-using property is based on its contribution to the system in terms of flow quantity and sewage quality (biochemical oxygen demand and suspended solids). This is in addition to the cost experienced by Culver City in the collection, operation, and improvement of our own sewage collection and conveyance system. All of these costs are annually determined and presented to the City Council in the City Engineer's Report, in accordance with Section 5.02.035 of the Culver City Municipal Code (CCMC). The proposed charges for Fiscal Year 2007/2008 will address estimated costs for providing complete operation, maintenance, and local capital improvements for the Culver City sewerage system and for the estimated payments due to the City of Los Angeles for Culver City's share of the Los Angeles Amalgamated System costs. In addition to formulating and adopting a system of Sewer User’s Service Charges, the City must also select a system of collecting these charges. In 1980, based on an engineering study and the City Engineer’s recommendation, the City Council initiated a once-a-year billing procedure for Sewer Users’ Service Charges that places each property owner’s charges on their property tax bill. This method of collection has proven to be very efficient and provides the lowest cost billing and collection service for Culver City. During the Fiscal Year 2002/03 Sewer Users’ Service Charge rate discussion, the City Council approved a five year program that identified the need for annual 10% rate increases through Fiscal Year 2007/2008. The five year program ended last Fiscal Year. The Sewer User Service Charge rate has been increased 10% every year since Fiscal Year 2002/04 except in Fiscal Year 2005/06 where the rate was increased by 5%. DISCUSSION On April 23, 2007, the City Council ordered the preparation of the City Engineer's Report, declared its intention to order the levy of assessment with a ten percent (10%) increase for the Sewer Users’ Service Charge and set today as the date, time and place for this hearing. City of Culver City, California City Council Agenda Item Report The Sewer User’s Service Charge budget is 100 percent self-supporting for all expenditures related to the collection, operation & maintenance, capital improvements, conveyance and treatment of the City’s sewer system. The sewer user service charge is collected based on the prior calendar year’s total water consumption for each parcel that is on the sewer system. A certain portion of the water consumption amount is deducted due to landscape irrigation. Last fiscal year’s sewer user service charge was approved by the City Council to be increased by 10%. The water consumption was based on the 2005 calendar year, (January 1, 2005 to December 31, 2005). The total water consumption for all parcels was 5% lower than the 2004 calendar year. As a result the total amount collected was only 5% greater than the previous fiscal year. With the Amalgamated Agreement with the City of Los Angeles, certain costs related to conveyance and treatment are included in this charge by Los Angeles which the City pays based on flow measurements throughout the year. The City of Los Angeles sends Amalgamated Cities their 5-year projections for costs related to the agreement. In a January 10, 2007 letter from the City of Los Angeles to Culver City they have projected the following: • 16% increase for Fiscal Year 2007/08 over Fiscal Year 2006/07. • 17% increase for Fiscal Year 2008/09 over Fiscal Year 2007/08. • 18% increase for Fiscal Year 2009/10 over Fiscal Year 2008/09. • 6% increase for Fiscal Year 2010/11 over Fiscal Year 2009/10. • 10% increase for Fiscal Year 2011/12 over Fiscal Year 2010/11. Footnote: These rate increases represent an average annual increase about $220,000 The January 10, 2007 letter is projecting significantly lower percentage increases than in the previous letters sent by the City of Los Angeles. The Sewer Enterprise Fund will maintain an operating surplus this year and next year if the rates are adjusted ten percent (10%). However based on future projections by the City of Los Angeles, for Fiscal Year 2009/10 the Sewer Enterprise Fund will be operating with an almost $1 million operating deficit. City of Culver City, California City Council Agenda Item Report Audit and Diversion of sewer flow The Cities of Glendale and Burbank, along with Culver City, hired PBS&J Engineering consultants to audit City of Los Angeles’ sewer costs related to the Amalgamated Agreement. The audit was initiated in response to last year’s large projected operating and capital cost increases to all Cities in the Amalgamated system. Coincidentally, after the audit began the City of Los Angeles projected significantly lower costs for future years, nevertheless, the audit continues and a final report will be forthcoming by this summer. Culver City’s cost share for the consulting services is under $10,000 and was approved administratively by staff. Staff will be bringing to the City Council a discussion item during Fiscal Year 2007/08 on various other options to pay for the projected increased costs to operate and maintain the sewer system. The discussion item will also include the final report from PBS&J on the audit of City of Los Angeles sewer charges and final cost benefit analysis report on diverting the sewer flow to the County Sanitation District. FISCAL ANALYSIS: The report contains a spreadsheet of the 5 year estimated sewer user service fund cash flow projections. ATTACHMENTS: 1. Engineer’s Report 2. Resolution 3. Notification Postcards 4. Sewer Enterprise Funds 5 year cash flow projection MOTION: That the City Council: Adopt the Resolution approving the Engineer’s Report and ordering the annual assessment levy and a ten percent (10%) increase for the Sewer Users’ Service Charge for Fiscal Year 2007/2008. MEETING DATE : 06/11/07 AGENDA ITEM: PUBLIC HEARING for the Adoption of a Resolution to Approve the Engineer's Report and to Order the Assessment Levy for the Sewer User's Service Charge for Fiscal Year 2007/2008 ATTACHMENTS Pages 1 Engineer's Report 1-7 2 Resolution 8-10 3 Notification Postcards 11-12 4 Sewer Enterprise Funds 5 year cash flow projection 13PUBLIC WORKS DEPARTMENT 9770 CULVER BOULEVARD, CULVER CITY, CALIFORNIA 90232-0507 (310) 253-5600 • FAX (310) 253-5626 CHARLES D. HERBERTSON, PE, LS Public Works Director and City Engineer ENGINEER'S REPORT ON THE ANNUAL LEVY 2007-2008 SEWER USER 'S SERVICE CHARGE IN THE CITY OF CULVER CITY UNDER THE PROVISIONS OF CHAPTER 5.02 OF THE CODE OF THE CITY OF CULVER CITY, CALIFORNIA FILED with the City Clerk PRESENTED to the City Council On June 11, 2007 and APPROVED by Resolution No. 2007- R , adopted by said City Council on June 11, 2007 and thereafter filed in the Office of the City Clerk CHRISTOPHER ARMENTA City Clerk City of Culver City ICulver City - SUSC 2007/2008 City Engineer's Report 6/1/2007 2 of 7 June 11, 2007 TO: The Honorable Mayor and Members of the City Council FROM: Charles D. Herbertson, Public Works Director and City Engineer CITY ENGINEER'S REPORT FOR SEWER USER'S SERVICE CHARGES FOR FISCAL YEAR 2007-08 1.0 Introduction A major challenge confronting those responsible for wastewater infrastructure, transportation, treatment and disposal is acquiring adequate funds to finance and operate facilities and capital equipment, along with implementing appropriate pricing structures to ensure the self- sufficiency of the utility. The financing vehicle that is used by the utility and the timing of the financing are crucial in ensuring that wastewater customers are appropriately paying for facilities that they need, and not inappropriately financing facilities for future customers. It is a major goal of an effective financial plan to 'match' the economic impact on customers with the benefits received from the service. Regulations governing Federal and State grant funds require the City of Los Angeles to maintain a Cost Recovery Program (Sewer User Charges System) which includes all operations and maintenance costs directly or indirectly related to the treatment and collection of liquid waste discharge by residents and businesses. As a result of Culver City's contractual relationship with the City of Los Angeles for wastewater treatment at the Hyperion Treatment Facility, Culver City (City) is also required to recover from each wastewater user their proportionate share of the costs incurred for wastewater collection capital improvements within Culver City, wastewater system operation and maintenance, City of Los Angeles capital improvements for conveyance to Hyperion and operation and maintenance at Hyperion. Accordingly, Culver City adopted a plan to collect wastewater user charges and implemented it for the first time in fiscal year 1980-81. The City recovers wastewater user charges on an annual basis. Since the plan's inception, the County Auditor-Controller's offices, and the annual property tax bill, have been utilized as the vehicle for both billing and collection. This method has proven to be both functionally satisfactory and exceptionally economical over the last twenty six years. In order to achieve a fair and equitable system of wastewater user charges, users are charged in a manner consistent with their actual use of the system. This comprises not only the flow quantity, but also the wastewater strength (quality) as characterized by BOD (biochemical oxygen demand) and SS (suspended solids). 2Culver City - SUSC 2007/2008 City Engineer's Report 6/1/2007 3 of 7 Pursuant to the Culver City Municipal Code, in FY 2003-04 the City performed a review of the Sewer User's Service Charges (SUSC) structures and billing formulas to ensure that the City utilizes an effective pricing structure within the constraints of Proposition 218. Additionally, the City wants to ensure that its sewer pricing structure continues to achieve the goals and objectives of the community , while maintaining a fair and equitable distribution of costs to all of its customers. 2.0 Discussion Staff recommends a 10 percent increase as explained in Section 3 of this report and that these rates be used to prepare the SUSC assessment for the 2007 -2008 tax rolls . Staff believes, based on the current Sewer Fund balances and the anticipated revenues and costs , that this approach will protect the solvency of the Fund. Credits for residential landscaping can be given in two ways . 1) Either the resident can install a separate water meter for landscaping which will not be assessed on the tax bill or 2) prove by submitting calculations and evidence that the percentage reduction in the tabled formula is not adequate. Last year, the City of Los Angeles charged $2 ,434,728 for operations , maintenance and capital improvements for the treatment and conveyance of Culver City wastewater . In fiscal year 2007/2008 , they are requesting Culver City to pay $2 ,833,300 . This is a 16% increase. 3.0 Calculation of Annual Revenue Requirements For fiscal year 2007/08 the projected proposed revenue requirement is determined as follows: Operating Costs - City $2,331,175 Operating and Capital Projects Costs Hyperion $2,833,300 Debt Service $ 1,701,569 Sewer User Service Charge credits - estimated $50,000 City of L.A. Sewer Facility Charge - estimated $75,000 Capital Projects - City $1 ,350,000 Total FY 2007/2008 Budget $8,341,044 Table 1 shows the Five-Year Cash Flow Projection for the Sewer Enterprise Fund. In fiscal year 2002/03, City Council approved a five year SUSC rate -stabilization program identifying the need for annual 10% revenue increases until Fiscal Year 2006 /07. In fiscal year 2003/04 the Engineer 's Report adopted by City Council included a recommendation to maintain a Sewer Enterprise Reserve Fund that as a minimum should be equal to:Culver City - SUSC 2007/2008 City Engineer's Report 6/ 1 /2007 4 of 7 Minimum Reserve Fund = 70% of annual operations budget + 2 yrs of debt service + annual capital improvements budget. For fiscal year 2007-2008 the minimum required reserve fund is estimated to be $8 ,368,270 and the available cash balance is projected to be $19 ,768,742. However , with the increases projected by the City of Los Angeles in their January 10, 2007 5-year projection letter, the City of Culver City will begin operating at about a one million dollar operating deficit in fiscal year 2009-2010 even with the proposed 10% increase now and next year. If the City does not raise the rates by 10% this year and the next two years, the cash balance reserve will fall from $19,768,742 to $14,237,632, reduction of $5,531,110. With the unpredictability of City of Los Angeles sewer charges, it is recommended that the City continue to increase the sewer user service charge at 10% per year to keep the available cash balance from decreasing. Therefore, Staff recommends that the current SUSC billing formulas be increased by 10 percent. 4.0 Summary of Current SUSC Rate Structure The current SUSC Rate Structure is composed of a base charge and a commodity charge for all customer classifications: A. Base Charge The base charge of the SUSC is comprised of two components: Customer Costs - Customer costs such as billing and customer service are fixed costs that tend to vary in proportion to the total number of customers served by the utility. Customer costs are therefore allocated to each customer based on the number of customer accounts. Fixed Capacity Costs - Capacity costs are fixed costs associated with maintaining the sewer collection system. These costs include rents and leases. Capacity costs tend to vary in relation to the total capacity of the collection system. Capacity costs are therefore allocated to each customer based on number of accounts. B. Commodity Charge The Commodity Charge is also comprised of two components: Collection System Costs - Collection system costs are debit service and variable costs associated with the maintenance of the underground pipelines from each customer and the integrated pipeline system prior to the discharge points to the City of Los Angeles transmission 4Culver City - SUSC 2007/2008 City Engineer's Report 6/1/2007 5 of 7 system. As there are no treatment costs involved in the maintenance of the Culver City collection system, these costs are allocated on a flow basis only. Treatment Costs - The process and costs of providing transmission, treatment, and disposal of Culver City's customers' sewage are provided and determined by the City of Los Angeles. These costs are considered variable costs, as they vary with the flow and sewage strength as metered and determined by the City of Los Angeles. Treatment costs are recovered through commodity rates charged on the basis of each customer's adjusted actual water usage and their assumed sewage strengths. Prior to the beginning of each fiscal year Los Angeles provides Culver City with the Amalgamated System Sewerage System charge rates for the upcoming fiscal year. 5.0 Current SUSC Rates for 2006-07 Base Charge Annual Water Usage Return to Rate for the X Sewer X Customer Percentage Class SUSC Table 2 SUSC Current Billing Formulas for FY06/07 Base Charge Commodity Charge (Per HCF Annual Flow) Multi-Family $ 38.47 per unit+ (0.85W x $3.50) Single Family $ 38.47 + (0.58W x $3.50) Group II Users: $ 38.47 + (W x $3.50) Group III Users: $ 38.47 + (W x $6.94) Group IV Users: $ 38.47 + (W x $3.41) Group V Users: $ 38.47 + (W x $2.96) Group VI Users: Individual Special Users 601 $ 38.47 + (W x $3.73) 602 $ 38.47 + (W x $4.86) 603 $ 38.47 + (W x $4.86) 604 $ 38.47 + (W x $3.41) 605 $ 38.47 + (W x $2.92) 606 $ 38.47 + (W x $4.86) 607 $ 38.47 + (W x $3.50) 609 $ 38.47 + (W x $3.50) W=Annual Water Consum ptionCulver City - SUSC 2007/2008 City Engineer's Report 6/1/2007 6 of 7 6.0 Pro osed SUSC Rates for 2007-08 Base + Annual Water x Return to Sewer Charge Usage Percentage Rate for the X Customer Class SUSC Table 3 SUSC Proposed Billing Formulas for FY07/08 Base Charge Commodity Charge (Per HCF Annual Flow) Multi-Family $ 42.32 per unit+ (0.85W x $3.85) Single Family $ 42.32 + (0.58W x $3.85) Group II Users: $ 42.32 + (W x $3.85) Group III Users: $ 42.32 + (W x $7.63) Group IV Users: $ 42.32 + (W x $3.75) Group V Users: $ 42.32 + (W x $3.26) Group VI Users: Individual Special Users 601 $ 42.32 + (W x $4.10) 602 $ 42.32 + (W x $5.35) 603 $ 42.32 + (W x $5.35) 604 $ 42.32 + (W x $3.75) 605 $ 42.32 + (W x $3.21) 606 $ 42.32 + (W x $5.35) 607 . $ 42.32 + (W x $3.85) 609 $ 42.32 + (W x $3.85) W=Annual Water Consum ption In HCFCulver City - SUSC 2007/2008 City Engineer 's Report 6/1/2007 7 of 7 7.0 Recommendations: In summary , Staff makes the following recommendations: • Continue to use Los Angeles Auditor-Controller property tax roll for SUSC billing purposes as it eliminates costly billing systems , additional staff, and minimizes bad debt. • Adopt a resolution that allows a 10 percent increase to the current SUSC billing formulas for fiscal year 2007/08 in order to meet the revenue requirements of the Sewer Enterprise and keep the projected cash balance reserve stable in the next several fiscal years. Charles D. Herbertson RCE 46658 Public Works Director and City Engineer1|101010101010|RESOLUTION NO. 2007-R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, APPROVING THE ENGINEER'S REPORT AND ORDERING THE ASSESSMENT LEVY AND A 10% INCREASE FOR THE SEWER USER'S SERVICE CHARGE. WHEREAS, the City Council of the City of Culver City desires to assess a levy for fiscal year 2007/2008 of the Sewer User's Service Charge pursuant to the provisions of Chapter 5.02 of the Culver City Municipal Code ("CCMC") for a service charge to be known and designated as SEWER USER'S SERVICE CHARGE (hereinafter referred to as the "Service Charge"); and WHEREAS, pursuant to Resolution No. 2007-R021, the City Council declared its intention to order the annual assessment levy, including a 10% increase of the Service Charge, to collect the assessments, and to carry on all other proceedings necessary for the levy of annual assessments for the Service Charge; and ordered the City Engineer to prepare a Report on the Annual Levy 2007-2008, Sewer User's Service Charge (the "Engineer's Report") to be filed with the City Clerk and submitted to the City Council for consideration at a public hearing on June 11, 2007; and WHEREAS, the City Engineer prepare and filed the Engineer's Report (attached hereto as Exhibit "A" and incorporated herein by reference) for the City Council's consideration; and WHEREAS, the City Council has heard all testimony and evidence at a duly noticed public hearing held on June 11, 2007 and has determined to proceed with the levy of annual assessment for the Service Charge. -1- 81|10101010101010|NOW, THEREFORE, the City Council of the City of Culver City, DOES HEREBY RESOLVE as follows: 1. Upon the conclusion of the public hearing, written protests filed and not withdrawn did not represent property owners owning more than fifty percent (50%) of the area of assessable lands within the Service Charge area. 2. The Engineer's Report is hereby approved and the annual levy, including a 10% increase of the Service Charge, as set forth and described in the Engineer's Report and Resolution No. 2007-R021, is hereby ordered. 3. The diagram and assessment as set forth and contained in the Engineer's Report are hereby confirmed and adopted. 4. The adoption of this Resolution constitutes the levy of the assessment , including a 10% increase of the Service Charge, for the fiscal year commencing July 1, 2007 and ending June 30, 2008. 5. The estimates of costs, the assessment diagram, the assessments, and all other matters as set forth in the Engineer's Report as submitted pursuant to CCMC § 5.02.035 are hereby approved and adopted. 6. The assessment for improvements as set forth in the Engineer's Report and Resolution No. 2007-R021 shall be performed pursuant to law. The County Auditor shall enter on the County Assessment Roll the amount of the assessment and the assessment shall then be collected at the same time and in the same manner as the County property taxes are collected. After collection by the County, the net amount of the assessment shall be paid to the City Treasurer of the City of Culver City. 7. Upon receipt of monies representing assessments collected by the County, the City Treasurer for the City of Culver City shall deposit the monies into a -2- 91|10101010101010|special fund known as the "Fund for Sewer User's Service Charge," which was previously established. 8. Immediately upon the adoption of this Resolution, the City Clerk shall file a certified copy of the Engineer 's Report containing the diagram and assessment, with the County Auditor. 9. A certified copy of the Engineer 's report shall also be filed in the Office of the City Engineer, with a duplicate copy on file in the Office of the City Clerk, and shall be open for public inspection. APPROVED and ADOPTED this 11th day of June 2007. ALAN CORLIN, MAYOR City of Culver City, California ATTEST: APPROVED AS TO FORM: CHRISTOPHER ARMENTA, City Clerk CAROL A. SCHWAB, City Attorney A07-00363 10 ^^ 3Location C K Location C E 1 v IL CITY Mike Balkman Council Chambers U J CITY Mike Balkman Council Chambers PUBLIC WORKS DEPARTMENT 9770 Culver Boulevard PUBLIC WORKS DEPARTMENT 9770 Culver Boulevard NOTIFICATION OF IMPORTANT Culver City, CA 90232 NOTIFICATION OF IMPORTANT Culver City, CA 90232 AGENDA ITEM AT A FUTURE AGENDA ITEM AT A FUTURE COUNCIL MEETING COUNCIL MEETING City Council/Agency meetings can be City Council/Agency meetings can be The City Council will consider the follow- viewed live on Channel 35 by most The City Council will consider the follow- viewed live on Channel 35 by most ing agenda item at their meeting of Comcast subscribers. ing agenda item at their meeting of: Comcast subscribers. June 11, 2007 Time 7:00 pm les. The City Council will conduct a Public Hearing to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates is proposed for fiscal year 2007/2008. The SUSC assessment district will bene- fit the entire city with sewer conveyance and treatment by the City of Los Ange- For more information contact: Mate Gaspar (310) 253-5602 Engineering Services Manager Visit the Culver City Website at www.culverciiy. org or send your ques- tions or comments to the City at ci ,manager(a,culvercity. org. To view the Council meetings on line please visit http://www.culvercity.org/ webcast. To add your name to the City 's email list to receive agenda reports and news of City issues, please call (310) 253- 6000 or complete an online request at http://www.culvercity. org/citygov/ public notification.html. June 11, 2007 Time 7:00 pm The City Council will conduct a Public Hearing to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates is proposed for fiscal year 2007/2008. The SUSC assessment district will bene- fit the entire city with sewer conveyance and treatment by the City of Los Ange- les. For more information contact: Mate Gaspar (310) 253-5602 Engineering Services Manager Visit the Culver City Website at www.culvercity.M or send your ques- tions or comments to the City at city,manager culvercit^org. To view the Council meetings on line please visit http://www.culvercity.org/ webcast. To add your name to the City's email list to receive agenda reports and news of City issues, please call (310) 253- 6000 or complete an online request at http://www.culvercity.org/citygov/ public notification.html. Location C A Location e 4 u teiz CITY Mike Balkman Council Chambers a z& CITY Mike Balkman Council Chambers PUBLIC WORKS DEPARTMENT 9770 Culver Boulevard PUBLIC WORKS DEPARTMENT 9770 Culver Boulevard NOTIFICATION OF IMPORTANT Culver City, CA 90232 NOTIFICATION OF IMPORTANT Culver City, CA 90232 AGENDA ITEM AT A FUTURE AGENDA ITEM AT A FUTURE COUNCIL MEETING City Council/Agency meetings can be COUNCIL MEETING City Council/Agency meetings can be The City Council will consider the follow- viewed live on Channel 35 by most The City Council will consider the follow- viewed live on Channel 35 by most ing agenda item at their meeting of Comcast subscribers. ing agenda item at their meeting of Comcast subscribers. June 11, 2007 Time 7:00 pm The City Council will conduct a Public Hearing to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates is proposed for fiscal year 2007/2008. The SUSC assessment district will bene- fit the entire city with sewer conveyance and treatment by the City of Los Ange- les. 400=- For more information contact: Mate Gaspar (310) 253-5602 dsommo_ Engineering Services Manager Visit the Culver City Website at www.culvercity.org or send your ques- tions or comments to the City at citv,manager(a,culvercitv.org. To view the Council meetings on line please visit http://www.culvercity.org/ webcast. To add your name to the City's email list to receive agenda reports and news of City issues, please call (310) 253- 6000 or complete an online request at httv://www.culvercity.org/citygov/ public notification.html. June 11, 2007 Time 7:00 pm The City Council will conduct a Public Hearing to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates is proposed for fiscal year 2007/2008. The SUSC assessment district will bene- fit the entire city with sewer conveyance and treatment by the City of Los Ange- les. For more information contact: Mate Gaspar (310) 253-5602 Engineering Services Manager Visit the Culver City Website at www.culvercity.org or send your ques- tions or comments to the City at city,manager(culvercity.org. To view the Council meetings on line please visit http://www.culvercity.org/ webcast. To add your name to the City's email list to receive agenda reports and news of City issues, please call (310) 253- 6000 or complete an online request at http ://www. cul v ercity. org/city c?ov- public notification.html.4 PUBLIC WORKS DEPARTMENT CITY OF CULVER CITY PO Box 507 9770 CULVER BOULEVARD CULVER CITY CA 90232-0507 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM: Public Hearing: to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates are proposed for fiscal year 2007/2008. PUBLIC WORKS DEPARTMENT CITY OF CULVER CITY PO Box 507 9770 CULVER BOULEVARD CULVER CITY CA 90232-0507 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM: Public Hearing : to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates are proposed for fiscal year 2007/2008. PUBLIC WORKS DEPARTMENT CITY OF CULVER CITY PO Box 507 9770 CULVER BOULEVARD CULVER CITY CA 90232-0507 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM: Public Hearing : to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates are proposed for fiscal year 2007/2008. PUBLIC WORKS DEPARTMENT CITY OF CULVER CITY PO Box 507 9770 CULVER BOULEVARD CULVER CITY CA 90232-0507 NOTIFICATION OF IMPORTANT CITY COUNCIL AGENDA ITEM: Public Hearing: to determine the assessment levy of the Sewer User Service Charge. A 10% increase over the 2006/2007 rates are proposed for fiscal year 2007/2008.Table I Sewer Enterprise Fund Five Year Estimated Cash Flow Projection (FY 2006-2012) ACTUAL 0 6 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 Beginning cash balance 19.588.000 19,511,854 19,298,037 19,768,742 20,246,990 19,336,114 18,780,346 Sewer User Service Charge 7,199,000 7,556,135 8,311,749 9,142,923 10,057,215 11,062,936 12,169,230 ndustrial Waste Inspection Fee 60,000 60,000 60,000 60,000 60,000 60,000 60,000 CC & LA Sewer Facility Charges 1,355,564 85,000 150,000 325,000 85,000 85,000 85,000 nterest Income 450,000 350,000 350,000 350,000 300,000 250,000 250,000 Total Revenue 9,064,564 8,051, 135 8,871,749 9,877,923 10,502,215 11,457,936 12,564,230 Less : Operating Costs Operating costs- City 2,442,237 2,157,815 2,331,175 2,465,331 2,539,291 2,615,470 2,693,934 Operating costs- Hyperion 961,296 1,217,364 1,416,650 1,664,000 1,967,500 2,069,150 2,283,500 Debt service 1,697,689 1,702,909 1,701,569 1,708,844 1,697,000 1,709,234 1,707,914 ndustrial Waste Inspection Fee 60,000 60,000 60,000 60,000 60,000 60,000 60,000 LA Sewer Facility Charges 432,224 42,500 75,000 162,500 42,500 42,500 42,500 SUSC Refund Credits 116,875 50,000 50,000 50,000 50,000 50,000 50,000 Total Operating Expenditures 5,710,321 5,230,588 5,634,394 6,110,675 6,356,291 6,546,354 6,837,848 Capital Projects Capital expenditures- City 2,110,000 1,817,000 1,350,000 1,625,000 3,089,300 3,398,200 3,738,020 Capital expenditures- Hyperion 1,320,389 1,217,364 1,416,650 1,664,000 1,967,500 2,069,150 2,942,466 Total Capital Projects 3,430,389 3,034,364 2,766,650 3,289,000 5,056,800 5,467,350 6,680,486 Total Expenditures 9,140, 710 8,264,952 8,401,044 9,399,675 11,413,091 12,013,704 13,518,334 Operating Surplus/Deficit -76,146 -213,817 470,705 478,248 -910,876 -555,768 -954,104 Cash Balance- End of June 19,511,854 19,298,037 19,768,742 20,246,990 19,336, 114 18, 780,346 17,826,243