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CC - Adoption of a Resolution Initiating Proceedings for the Levy and Collection of Annual Assessments for the Sewer User’s Service Charge and Ordering the Preparation of the Engineer’s Report, Thereon for Fiscal Year 2020/2021.
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Meeting Date: May 11, 2020
Contact Person/Dept: Mate Gaspar/Public Works
Phone Number: (310) 253-5602
Fiscal Impact: Yes [] No [x] General Fund: Yes [] No [x]
Public Hearing: [] Action Item: [] Attachments: [x]
Commission Action Required: Yes [] No [x] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/06/2020);
Department Approval: Charles D. Herbertson, Director of Public Works/City Engineer (04/30/2020)
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RECOMMENDATION
Staff recommends the City Council adopt the resolution initiating proceedings for the levy and collection of annual assessments for the Sewer User’s Service Charge and ordering the preparation of the Engineer’s Report thereon for Fiscal Year 2020/2021.
BACKGROUND/DISCUSSION
Culver City 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.
Culver City owns and operates a separate sewage collection system, which is connected to the Amalgamated system.
The Clean Water Act of 1972 requires that all agencies receiving federal grants for waste water treatment plant improvements must approve a system of charges to the public to assure that each property served pays its fair share of costs for the operation, maintenance, and repair of the system’s conveyance and waste water treatment facilities. The “fair share” of each 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 incurred by Culver City in the collection, operation, and improvement of its’ own sewage collection and conveyance system. Since Culver City has been in agreements over the years with the City of Los Angeles to convey the sewage to their waste water treatment facility (Hyperion), a system of sewer charges was implemented in compliance with federal requirements
In addition to formulating and adopting a system of sewer charges, the City must also select a system for 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.
Pursuant to Culver City Municipal Code (CCMC) Section 5.02.035.B, annually, before July 1, the City Engineer shall make and file with the City Clerk a report which sets forth the amount of money necessary to pay the sewerage system costs and the proportionate share of the cost for each parcel of property in the City. For Fiscal Year 19/20, the maximum assessment was increased by 2.5% per the Bureau of Labor Statistics February Consumer Price Index for All Urban Consumers for Los Angeles area (CPI) for the prior 12-month period ending February 2019. The CPI for the prior 12-month period ending February 2020 is 3.4%. However, due to the severe impacts to both individuals and businesses caused by the COVID-19 pandemic, staff recommends the rates for Fiscal Year 2020/21 remain unchanged and that the CPI increase not be implemented. The sewer fund reserve has a sufficient balance to cover anticipated operational expenses in FY 20/21. In addition, on September 23, 2019, the City Council authorized the issuance of approximately $24,000,000 Aggregate Principal Amount of Wastewater Facilities Revenue Bonds, 2019 Series A to Finance and Refinance Costs of the City’s Wastewater System. The net proceeds from these bonds, approximately $12,000,000, will be utilized to fund capital improvement projects.
Should the City Council adopt the proposed resolution, the Public Works Director/City Engineer shall prepare (or cause to be prepared) the Engineer’s report. Upon its completion, the Engineer’s Report shall be filed with the City Clerk, and the City Council shall be presented with a Resolution of Intention declaring the City Council’s intent to levy the assessments for Fiscal Year 2020/2021 and set the date, hour, and place for the public hearing during which the City Council, after receiving any written protests and public comment, will consider levying the assessments for said Fiscal Year.
FISCAL ANALYSIS
If so ordered, the Engineer’s Report will be prepared and will include estimated revenues and expenditures for operation and maintenance of the City’s sewer system.
ATTACHMENTS
1. Proposed Resolution
MOTION
That the City Council:
Adopt the Resolution initiating proceedings for the levy and collection of annual assessments for the Sewer User’s Service Charge and ordering the preparation of the Engineer’s Report for Fiscal Year 2020/2021.