Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  24-001127

 

MEETING DATE:

06/24/25

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

4

SUBMITTING Agency/Department:

OC Public Works   (Approved)

Department contact person(s):

Tim Corbett (714) 667-8892 

 

 

Zac Henson (714) 834-7452

 

 

Subject:  Approve La Mirada County Service Area No. 13 Assessments for Sewer Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Resolution to Form

Public Hearing

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: FY 2025-26 $22,816

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:     Fund 468: 100%

County Audit in last 3 years: No

   Levine Act Review Completed: N/A

 

    Prior Board Action:         7/13/2021 #29, 7/14/2020 #36, 7/16/2019 #30, 7/17/2018 #37

 

RECOMMENDED ACTION(S):

 

 

1.

Find that the subject project is Statutorily Exempt from the provisions of CEQA pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines as CEQA does not apply to the establishment or modification, structuring, restructuring or approval of rates, tolls, fares and other charges by a public agency for the purpose of meeting operating expenses, including employee wage rates and fringe benefits; purchasing or leasing supplies, equipment or materials as set forth herein.

 

2.

Conduct a Public Hearing pursuant to Article XIII D of the California Constitution, Section 6(a)(2). 

 

3.

Adopt a Resolution pursuant to Government Code Section 25215.5 confirming and approving the prepared fee report adopting a $142.14 annual sewage unit fee for La Mirada County Service Area No. 13 to be collected beginning on the FY 2025-26 tax roll and continuing for subsequent fiscal years for La Mirada County Service Area  No. 13; direct the Clerk of the Board to file with the Auditor-Controller a copy of the fee report with a statement endorsed on the report that the report has been adopted by the Board of Supervisors; authorize and direct the Auditor-Controller to enter the $142.14 charge annually against the respective parcels of La Mirada County Service Area No. 13 as they appear on the assessment roll.

 

 

SUMMARY:

 

Adoption of the Resolution and fee report for the La Mirada County Service Area No. 13 will provide the funds required to recover the County of Los Angeles Department of Public Works costs for connection of sewer lines and Orange County annual maintenance costs to the properties in the unincorporated area of northern Orange County.

 

 

BACKGROUND INFORMATION:

 

On July 26, 1967, the Board of Supervisors (Board), acting as the governing body, established the La Mirada County Service Area No. 13 (CSA No. 13), an unincorporated Orange County island of 127 properties bounded by the cities of Buena Park and La Mirada. Due to the area’s topography, wastewater from these properties flows into infrastructure managed by Los Angeles County Department of Public Works (LA County), which provides sewer connections and sewage disposal services for CSA No. 13. LA County charges the County of Orange (County) an annual sewer disposal service (Service) fee, which the County recovers through property tax special assessments on CSA No. 13. The collected funds are then used to reimburse LA County

 

Starting in FY 2020-21, OC Public Works implemented annual maintenance that includes flushing and cleaning of the sewer system lines to ensure proper flow and verify the sewer lines are clear of any blockages. This annual maintenance activity reduces the risk of sewage spills, which could have negative environmental and financial impacts. Routine maintenance alleviates leaking pipes and extends the life of the sewer lines.

 

The current rate has remained unchanged since FY 2021-22. Due to rising sewer hookup costs in LA County and increased maintenance and inspection costs for the County, OC Public Works conducted a fee study, which resulted in a proposed service fee in the amount of $142.14, effective in FY 2025-26. The proposed service fee anticipates recovery of all LA County sewer hookup costs and County annual maintenance and video inspection costs in accordance with Board full cost recovery policy. Service fees previously approved by the Board are shown below:

 

Board Date

Resolution

Service Fee

7/17/2018

18-073

$53.80

7/16/2019

19-067

$53.80

7/14/2020

20-096

$83.00

7/13/2021

21-083

$83.00

 

The service fee is not subject to the voting requirements of Article XIII D (Proposition 218) of the California Constitution (Constitution). On April 25, 2025, the County sent written notices of the proposed annual service fee to all property owners within CSA No. 13 to allow for the 45-day notice period prior to the public hearing. Should the County receive written protests from a majority of property owners within CSA No. 13, the County cannot impose the service fee.

 

The $18,052 projected revenue from the Service fee and the $4,764 projected revenue from property tax apportionment will be used to pay LA County and Orange County annual sewer maintenance and other administrative expenses.

 

CSA No. 13 La Mirada Fund 468

Sewer Service Fee Based on Forecast FY 2025-26

EXPENDITURES:

 

Payment to LA County for Sewer Service and Other Expenses Property Tax Apportionment

$8,192

Annual Sewer Maintenance Expense

$13,000

County Administration Expenses

$1,625

Total Expenditures

$22,816

 

REVENUES:

 

Property Tax Apportionment

($4,764)

Proposed Sewer Service Fee (127 Sewer Connections x $142.14)

($18,052)

Total Revenues

($22,816)

 

Proposition 26: The property-related fee is not a tax as defined by Article XIII A of the Constitution. Article XIII C provides a specific exemption for: 1) a charge imposed for a specific benefit conferred or privilege granted directly to the payer that is not provided to those not charged and does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege and 2) assessment and property related fees in accordance with the provisions of Proposition 218. All notices required by Proposition 218 of the Constitution have been given and the procedures set forth herein comply with the procedural requirements (Article XIII D Section 6, Government Code Section 53755).

 

Compliance with CEQA: The proposed activity is statutorily exempt from review under CEQA pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines as CEQA does not apply to the establishment or modification of rates, fees and charges, which are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits, purchasing or leasing supplies, equipment or materials.

 

 

 

FINANCIAL IMPACT:

 

Appropriations and revenue in accordance with this action are included in the FY 2025-26 Recommended Budget for CSA No. 13, Fund 468. Annual sewer hookup and maintenance costs will be recovered through the Service Fee Assessments and Property Tax revenues received in CSA No. 13.

 

 

STAFFING IMPACT:

 

N/A

 

REVIEWING AGENCIES:

 

Auditor-Controller

 

ATTACHMENT(S):

 

Attachment A - Resolution
Attachment B - Affidavit of Mailing
Attachment C - County Service Area No. 13 Location Map
Attachment D - County Service Area No. 13 Fee Study
Attachment E - County Service Area No. 13 Fee Checklist
Attachment F - Notification of Sewer Service Charge
Attachment G - Public Resources Code Section 21080(b)(8)
Attachment H - Article XIII D California Constitution, Section 6(a)(2)
Attachment I - California Government Code Sections 25215.5 and 53755