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CC - CONSENT ITEM: Adoption of a Resolution (1) Approving the Engineer’s Report for the Sewer User’s Service Charge, (2) Declaring the Intention to Order the Sewer User’s Service Charge for Fiscal Year 2023/2024, and (3) Setting the Date, Time, and Place for Public Hearing.
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Meeting Date: May 22, 2023
Contact Person/Dept.: Mate Gaspar/Public Works Department
Christopher Evans/ Public Works Department
Phone Number: (310) 253-5602
(310) 253-5621
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 (05/18/2023);
Department Approval: Yanni Demitri, Public Works Director/City Engineer (05/09/2023)
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RECOMMENDATION
Staff recommends the City Council adopt a Resolution (1) approving the Engineer’s Report for the Sewer User’s Service Charge; (2) declaring its intention to levy and collect the Sewer User’s Service Charges for Fiscal Year 2023/2024; and (3) setting a public hearing for June 12, 2023.
BACKGROUND
Culver City owns and operates a separate sewage collection system which is connected to the City of Los Angeles’ system. Culver City sewage, which is deposited into the Los Angeles system, is treated at the City of Los Angeles' Hyperion Treatment Plant prior to its ultimate disposal in the Pacific Ocean or additional treatment by West Basin Municipal Water District for the production of recycled water that is used throughout the region. An agreement between the City of Los Angeles and a number of other cities called the Amalgamated Agreement (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.
Federal law requires that all 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 pays its fair share of costs for the operation, maintenance, repair, and improvement of the Hyperion Treatment Plant. The “fair share” of each property is based on its contribution to the system in terms of flow quantity and sewage strength (biochemical oxygen demand and suspended solids). This is in addition to the cost experienced by Culver City in the collection, operation, and improvement of the City’s own sewage collection and conveyance system.
In addition to formulating and adopting a system of Sewer User’s Service Charges (SUSC), 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 User’s 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.
DISCUSSION
Pursuant to a Resolution adopted by the City Council on February 27, 2023, the Public Works Director/City Engineer has prepared the Engineer’s Report for the Sewer User’s Service Charge and filed said Report with the City Clerk. A copy of the Engineer’s report is attached to this report for consideration by the City Council.
Due to sufficient reserves, staff recommended the rates for Fiscal Year 2022/2023 remain unchanged and that an increase not be implemented.
A sewer rate study was conducted, which recommended rate increases; however, as the sewer fund reserves have a sufficient balance to cover anticipated operational expenses in Fiscal Year 2023/2024, staff recommends the rates remain unchanged and that an increase not be implemented in the upcoming fiscal year.
Staff recommends that the City Council adopt a resolution (1) approving the Engineer’s Report, (2) declaring the City Council’s intention to order the levy of Sewer User’s Service Charge for Fiscal Year 2023/2024; and (3) setting the time and place for the public hearing as required by Culver City Municipal Code (CCMC) Sections 5.02.035.C and 5.02.040.
Should the City Council adopt the proposed resolution, pursuant to 5.02.040 of the CCMC, the City Clerk shall give notice of the June 12th public hearing by causing the Resolution of Intention to be published at least 14 days prior to the date of the hearing. During the scheduled Public Hearing, the City will consider all protests against any proposed increase and assessment.
FISCAL ANALYSIS
A detailed analysis of the revenues and expenses is contained in the Engineer’s Report.
ATTACHMENTS
1. 2023-05-22-ATT-CC-Sewer_User_Charge-Engineers_Report_SUSC.pdf
2. 2023-05-22_ATT_Resolution of Intention_SUSC.pdf
MOTION
That the City Council:
Adopt a Resolution (1) approving the Engineer’s Report for the Sewer User’s Service Charge, (2) declaring the City Council’s intention to order the levy of Sewer User’s Service Charge for Fiscal Year 2023/2024, and (3) setting the Public Hearing for June 12, 2023.