Agenda Item



ASR Control 18-000643




legal entity taking action:

Board of Supervisors

board of supervisors district(s):


SUBMITTING Agency/Department:

OC Public Works (Approved)

Department contact person(s):

Vicki Quiram (714) 667-3255



Tam Vu (714) 667-9753



Subject: La Mirada County Service Area #13 Assessments for Sewer Service



County Counsel Review

Clerk of the Board


Approved Resolution to Form

Public Hearing



4/5 Vote




Budgeted: Yes

Current Year Cost: N/A

Annual Cost: N/A




Staffing Impact:


# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: $6,832.60

Funding Source: La Mirada County Service Area #13 Fund 468: 100%

County Audit in last 3 years: No



Prior Board Action: 7/11/2017 #38, 7/22/2014 #42






Find that the proposed action for adoption of a Sewer Service Fee for La Mirada County Service #13, is Statutorily Exempt from the provisions of the CEQA pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines, as the establishment or modification, structuring, restructuring or approval of rates, tolls, fares or other charges by a public agency which are 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.



Conduct a Public Hearing.



Adopt Resolution confirming and approving the prepared fee report; adopting a $53.80 annual sewage unit fee for La Mirada County Service Area #13 be collected on the FY 2018-19 tax roll; 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 over the signature that the report has been adopted by the Board of Supervisors; and direct the Auditor-Controller to enter the $53.80 charge against the respective parcels of County Service Area #13 as they appear on the current assessment roll and make related findings.







Adoption of the Resolution and fee report for the La Mirada County Service Area #13 will provide the funds required to cover the County of Los Angeles Department of Public Works Consolidated Sewer Maintenance District's costs for providing sewer service to the residents in the unincorporated area of northern Orange County.






On July 26, 1967, the Board of Supervisors (Board), acting as the governing body, established the La Mirada County Service Area #13 (CSA #13). In 2009, the County of Los Angeles Department of Public Works Consolidated Sewer Maintenance District (LA District) connected the residents of CSA #13 to the County of Los Angeles sewer system and began charging OC Public Works an annual sewer service charge, which OC Public Works recovers through property tax special assessment. CSA #13 is an unincorporated Orange County (County) island consisting of 127 properties, bounded by the cities of Buena Park and La Mirada.


Due to geography, the LA District provides treatment for the local sewer lines that serve the properties in CSA #13. The County pays the LA District annually for the costs of providing this service using CSA #13 funds, which were previously funded from property taxes generated by the properties within the service area. Over time, the LA District has adjusted its basic annual sewer service charge due to rising costs. The annual CSA #13 property tax and reserves covered the cost until FY 2011-12, at which time, the reserves were depleted and the allocation from the annual property tax allocation was inadequate to fund this LA District sewer service. As a result, in FY 2011-12 the fund was loaned $3,000 from the General Fund to make a full payment to the LA District.


To address this structural shortfall, the Board approved the assessment of a fee to property owners in CSA #13 to fund the balance due to the LA District beginning in FY 2011-12. The sewer service fee for CSA #13 requires annual Board approval to assess a fee through the supplemental property tax for covering actual expenditures incurred. On July 22, 2014, the Board approved a fee in the amount of $53.80 and also authorized payment of $1,000 in FY 2014-15, FY 2015-16 and FY 2016-17 to repay the $3,000 loan borrowed in FY 2011-12 from the General Fund. The final payment for the loan to the General Fund was completed in FY 2016-17. On July 11, 2017, the Board adopted Resolution 17-086 to provide funds required to cover costs incurred for providing this sewer service to the residents of CSA #13.


To build up reserves for at least one-year of operating expenses, OC Public Works conducted a fee study for FY 2018-19 and the fee report recommends retaining the fee in the amount of $53.80. Prior year's expenditures have averaged $8,496.11 and the balance of the reserve is $4,692.61 as of FY 2017-18. The proposed fee for FY 2018-19 is anticipated to recover all LA District costs in accordance with Board policy. OC Public Works may return to the Board with a recommendation for an additional fee if needed in the future.


The sewer service fee is not subject to the voting requirements of Article XIII D of the California Constitution (Proposition 218). However, the proposed sewer service fee is subject to notice and a public hearing as well as procedures for written protest. On May 10, 2018, the County sent written notices of the proposed fee to all property owners within CSA #13 to allow for the 45-day notice period prior to the public hearing. Should the County receive written protests from most of the property owners within CSA #13, the County cannot immediately impose the fee.


The $6,832.60 projected revenue from the sewer service fee and the $3,188 projected revenue from property tax apportionment will be used to pay the LA District along with other County administrative expenses.


CSA #13 La Mirada Fund 468

Sewer Service Fee Based on Forecast FY 2018-19


Payment to County of Los Angeles for Sewer Maintenance and Other Expenses


County Administration Expenses


Total Expenditures




Property Tax Apportionment


Proposed Sewer Service Fee (127 Sewer Connections x $53.80)


Total Revenues




Net Revenue transferred to Reserve Fund 468



Proposition 26: The property related fee is not a tax as defined by Article XIII A of the California 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 which 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 Article XIII D (Proposition 218). All notices required by Article XIII D of the California Constitution have been given and the procedures set forth herein comply with the procedural requirements of Article XIII D.


Compliance with CEQA: The proposed action, CSA #13, 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 it consists of 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.






Appropriations and revenue in accordance with this action are included in the FY 2018-19 Budget for Fund 468 CSA #13 La Mirada. Annual costs will be recovered through Sewer Service Fee Assessments and Property Tax revenues received in CSA #13.




















Attachment A - Resolution
Attachment B - Affidavit of Mailing
Attachment C - Location Map County Service Area #13
Attachment D - County Service Area #13 Fee Study
Attachment E - County Service Area #13 Fee Checklist
Attachment F - Notification of Sewer Service Charge Increases
Attachment G - Public Resources Code Section 21080(b)(8)