title
CC - CONSENT ITEM: 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 2023/2024.
body
Meeting Date: February 27, 2023
Contact Person/Dept.: Christopher Evans/Public Works
Mate Gaspar/Public Works
Phone Number: (310) 253-5621
(310) 253-5602
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (02/22/2023);
Department Approval: Yanni Demitri, Director of Public Works/City Engineer (02/15/2023)
______________________________________________________________________
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 (SUSC) and ordering the preparation of the Engineer’s Report thereon for Fiscal Year 2023/2024.
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 wastewater 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.
In 2019, the City issued a bond to fund needed improvements to the City sewer system. The 2019 sewer bond obligates the City to perform a Sewer User’s Service Charges Rate Study (Study) that will provide a plan for maintaining system solvency into the future.
On May 23, 2022, the City Council approved an agreement with NBS Government Finance Group, (NBS) to prepare a five (5) year Sewer User’s Service Charges Rate Study which will include:
• Evaluation of existing sewer rates and rate equitability among user classifications.
• Development of a sewer cost of service and rate model for the City covering a five-year study period (Fiscal Years 2022/23 through 2026/27 or Fiscal Year 2023/24 through 2027/28) for both on-going operations and planned capital improvements.
• Development of a five-year sewer service charge program that produces revenues adequate to meet the financial needs of the City for both the required funding of the operational and capital needs, while recognizing customer cost of service, and local and state legal and policy considerations.
The result of the Study will be presented to the City Council for consideration, prior to approval of the Engineer’s Report.
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 2023/2024 and set the date, time, 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. 2023-02-27-ATT-CC-Proposed_Resolution- SewerUserSC-FY23-24.pdf
MOTION
That the City Council:
1. 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 2023/2024.