HomeMy WebLinkAbout2017-09-26 - AGENDA REPORTS - VISTA CANYON WASTEWATER STANDBY AND SEWER CHARGES (2)7�l
Agenda Item: 8
CITY OF SANTA CLARITA
Q:° AGENDA REPORT
CONSENT CALENDAR
7,
CITY MANAGER APPROVAL: 1
DATE: September 26, 2017
SUBJECT: VISTA CANYON WASTEWATER STANDBY AND SEWER
CHARGES RATE DISTRICT - RESOLUTION OF INTENT AND
INITIATION PROCEEDINGS
DEPARTMENT: Neighborhood Services
PRESENTER: Kevin Tonoian
RECOMMENDED ACTION
City Council:
Adopt resolutions to initiate proceedings to form the Vista Canyon Wastewater Standby and
Sewer Charges Rate District and to approve the Engineer's Reports.
2. Set a public hearing for November 28, 2017, as a time and place to hear comments on this
proposed action, and close the time period to receive ballots.
BACKGROUND
At the May 10, 2011, meeting, the City of Santa Clarita (City) Council approved Master Case
No. 07-127 for the Vista Canyon Project. In connection with the Vista Canyon Project, the
applicant was conditioned to construct a self-contained wastewater treatment plant (Plant).
When complete and fully operational, the Plant will generate approximately 371,000 gallons per
day of recycled water. Approximately one-third of the recycled water produced will be utilized
on-site by Vista Canyon, while the remainder will be made available for sale to the Castaic Lake
Water Agency for off-site recycled water uses.
The Plant is being constructed to serve the new Vista Canyon development that is expected to
service approximately 1,100 apartments, townhomes, and single-family residences, as well as
approximately one million square feet of retail, office, hotel, dining services, and entertainment
space. Additionally, the Plant will be providing sewage service to an adjacent property to the
south of Vista Canyon.
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The developer will be responsible for the operation and maintenance of the Plant for
approximately the first one to two years after completion. Consistent with the approval of the
Vista Canyon Project, the City will own, and eventually assume responsibility for, the operation
of the Plant.
To support long-term operations, staff engaged Harris & Associates to prepare engineering
reports which, among other things, develop a rate schedule and a financing plan, or pro forma, to
establish and collect a wastewater standby assessment and sewer rate to pay for the annual
maintenance and operational costs for the Plant. The Engineer's Report contains the proposed
boundaries of the Vista Canyon Wastewater Standby Assessment and Sewer Rate District,
identifies the proposed facilities and services to be funded, and the methodology to apportion the
annual assessments and rates.
The wastewater standby assessment and sewer rate will incorporate a rate schedule and a
financing plan that will provide the revenue needed for the future operation, maintenance, and
long-term capital replacement needs of the Plant. This analysis incorporates requirements of
Proposition 218, along with a recent case law regarding sewer charges that details the total
amount of the standby assessment and sewer rate to be charged to each parcel that will be
benefitted by the wastewater facilities in a fair and equitable manner. Finally, this analysis
establishes the basis for which the assessments and rates were calculated.
The wastewater standby assessment and sewer rate proposed by the City have been developed in
accordance with the applicable State law including Article XIIID of the State Constitution and
Health and Safety Code Section 5470. The wastewater standby assessment will be imposed on
vacant parcels until such time as the parcels become developed and a certificate of occupancy
has been issued; whereupon, the sewer rate will be collected in place of the standby assessment
for subsequent years. Only those parcels within the Vista Ranch Project area and the adjacent
property directly to the south of the project that receive a direct benefit will be subject to the
standby assessment and sewer rate.
The maximum annual levy to maintain the improvements associated with the Plant will be
$1,244,307. The standby assessment and sewer rate are proposed to be assigned to each parcel
by Equivalent Benefit Unit (EBU). The maximum annual wastewater standby assessment and
sewer rate identified will be $547.54 per EBU. The City will begin levying parcels within the
Vista Canyon Project commencing in Fiscal Year 2018-19.
ALTERNATIVE ACTION
Other direction as determined by the City Council.
FISCAL IMPACT
All costs associated with the creation of the Vista Canyon Wastewater Standby and Sewer
Charges Rate District Engineer's Reports will be borne by the developer.
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ATTACHMENTS
Resolution Calling for a Ballot Procedure -Standby
Resolution Calling for a Protest Hearing -User Rate
Resolution Initiating Proceedings -Standby
Resolution Initiating Proceedings -User Rate
Wastewater Standby Charges Engineer's Report (available in the City Clerk's Reading File)
Wastewater Sewer Charges Engineer's Report (available in the City Clerk's Reading File)
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8.a
RESOLUTION NO. 17 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, CALLING FOR AN ASSESSMENT BALLOT
PROCEDURE AND SETTING A DATE FOR A PUBLIC HEARING FOR FORMING A
WASTEWATER STANDBY DISTRICT AND FIXING STANDBY CHARGES
(VISTA CANYON)
WHEREAS, wastewater service for the Vista Canyon development is proposed to be
provided by a wastewater collection and treatment system that serves the Vista Canyon
development and Assessor's Parcel Number 2840-004-009. Documents more fully describing
the wastewater facilities are on file with the City of Santa Clarita (City) and are incorporated
herein by reference; and
WHEREAS, the City has caused an engineer's report for the proposed standby charge
to be prepared. Said report details, among other things, the total amount of the standby charge to
be assessed in the Vista Canyon development, the amount chargeable to each parcel that will be
benefitted by the wastewater facilities, and the basis for which the charges were calculated. The
engineer's report is on file with the City and is incorporated herein by reference; and
WHEREAS, the wastewater standby charge is proposed to be imposed on parcels
until such time as the parcels become developed and a certificate of occupancy has been issued;
whereupon, a wastewater user service fee will be collected in place of the standby charge for
subsequent years. The standby charge is proposed to be assigned to each parcel by Equivalent
Benefit Unit (EBU). The EBU method is more fully detailed in the engineer's report; and,
WHEREAS, the wastewater standby charge is proposed to be imposed by the City
pursuant to Health and Safety Code Section 5470, and Article XIIID of the State Constitution.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
SECTION 1. The above recitals are true and correct, and the City so finds and
determines
SECTION 2. A public hearing on the establishment of the standby charges shall be
held on Tuesday, November 28, 2017, at 6:00 o'clock p.m., or as soon thereafter as practicable,
at the City of Santa Clarita Council Chambers, 23920 Valencia Boulevard, Santa Clarita,
California 91355.
SECTION 3. At the time and place set forth above for the public hearing, any
interested person may appear and be heard. The City Council will hear and consider all protests,
whether written or verbal.
SECTION 4. At the close of the public hearing, all returned assessment ballots will be
tabulated and the results announced. In the absence of a majority protest, the City Council may
authorize the standby charges.
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SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2017.
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 2017, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
7
CITY CLERK
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RESOLUTION NO. 17 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, CALLING FOR A PROTEST HEARING AND
SETTING A DATE FOR A PUBLIC HEARING FOR SEWER USER SERVICE RATES
(VISTA CANYON)
WHEREAS, wastewater service for the Vista Canyon development is proposed to be
provided by a wastewater collection and treatment system that serves the Vista Canyon
development and Assessor's Parcel Number 2840-004-009. Documents more fully describing
the wastewater facilities are on file with the City and are incorporated herein by reference; and
WHEREAS, the City of Santa Clarita (City) has caused an engineer's report for the
wastewater user service rate (rate study) to be prepared. Said report details, among other things,
the total amount of the wastewater user service rate to be charged in the Vista Canyon
development, the amount chargeable to each parcel that will be benefitted by the wastewater
facilities and the basis for which the rates were calculated. The engineer's report is on file with
the City and is incorporated herein by reference; and
WHEREAS, a wastewater standby charge is proposed to be imposed on parcels until
such time as the parcels become developed and a certificate of occupancy has been issued;
whereupon, the wastewater user service rate will be collected in place of the standby charge for
subsequent years. The wastewater user service rate is proposed to be assigned to each parcel by
Equivalent Benefit Unit (EBU). The EBU method is more fully detailed in the engineer's report;
and
WHEREAS, the wastewater user service rate is proposed to be imposed by the City
pursuant to Health and Safety Code Section 5470, and Article XIIID of the State Constitution.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
SECTION 1. The above recitals are true and correct, and the City so finds and
determines.
SECTION 2. A public hearing on the establishment of the user service rates shall be
held on Tuesday, November 28, 2017, at 6:00 o'clock p.m., or as soon thereafter as practicable,
at the City of Santa Clarita Council Chambers, 23920 Valencia Boulevard, Santa Clarita,
California 91355.
SECTION 3. At the time and place set forth above for the public hearing, any
interested person may appear and be heard. The City Council will hear and consider all protests,
whether written or verbal.
SECTION 4. At the close of the public hearing, all written protests will be counted
and the results announced. In the absence of a majority protest, the City Council may authorize
the user service rates.
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SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2017.
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 2017, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
7
CITY CLERK
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RESOLUTION NO. 17 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, TO INITIATE PROCEEDINGS TO FORM A
WASTEWATER STANDBY DISTRICT AND FIX A STANDBY CHARGE
(VISTA CANYON)
WHEREAS, the City Council (Council) of the City of Santa Clarita (City) wishes to
form a wastewater standby district pursuant to Health and Safety Code Section 5470 and to fix a
wastewater standby charge pursuant to Government Code Section 54984 et seq., and Article
XIIID of the State Constitution (Acts); and
WHEREAS, under the Acts, the City is authorized to fix, before August 10 of any
given year, a wastewater standby charge on land within its jurisdiction to which wastewater
service is made available, whether the services are actually used or not; and
WHEREAS, under the Acts, the City may establish schedules varying the charge
according to land use, benefit derived or to be derived from the use, availability of facilities, the
degree of availability, and may impose the charge on an area, frontage or parcel basis, or a
combination thereof.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
SECTION 1. The public interest and necessity requires the Council to adopt a
resolution initiating proceedings to fix, levy, and collect wastewater standby charges on all
properties within the Vista Canyon development and Assessor's Parcel Number (APN) 2840-
004-009.
SECTION 2. The standby charge, as adopted by the Council, is based upon the report
of a "qualified engineer", Harris & Associates, which is on file with the City and available for
review during normal business hours. A complete description of the properties to be charged and
the amount of said charges is contained in the aforementioned report, including a diagram and
APN list for the affected parcels.
SECTION 3. A public hearing on the establishment of the district and standby
charges shall be held on Tuesday. November 28. 2017, at 6:00 o'clock p.m., or as soon thereafter
as practicable, at the City of Santa Clarita Council Chambers, 23920 Valencia Boulevard, Santa
Clarita, California 91355.
SECTION 4. At the time and place set forth above for the public hearing, any
interested person may appear and be heard. The City Council will hear and consider all protests
SECTION 5. The City Clerk is hereby directed to publish a notice (Notice) of the
public hearing pursuant to Section 6061 of the Government Code in a newspaper of general
circulation published in the area of the proposed standby charge. Such publication shall be
completed at least 10 days prior to the date of the public hearing.
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SECTION 6. The voting procedure with respect to the formation of the district and
the imposition of a standby charge shall be in accordance with the provisions of Article XIIID of
the State Constitution.
SECTION 7. The City Clerk is hereby directed to cause the required Notice and
Property Owner Ballot to be mailed to each affected property owner. The Notice and Property
Owner Ballot shall be mailed not less than 45 days prior to the Public Hearing and shall contain
the information required by Article XIIID of the State Constitution.
SECTION 8. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2017.
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 2017, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
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RESOLUTION NO. 17 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, TO INITIATE PROCEEDINGS TO
FIX A WASTEWATER USER SERVICE RATE (VISTA CANYON)
WHEREAS, the City Council (Council) of the City of Santa Clarita (City) wishes to
fix a wastewater user rate pursuant to Health and Safety Code Section 5470, and Article XIIID of
the State Constitution (Acts); and
WHEREAS, under the Acts, the City is authorized to fix, before August 10 of any
given year, a wastewater user rate on land within its jurisdiction to which wastewater service is
provided.
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
SECTION 1. The public interest and necessity requires the Council to adopt a
resolution initiating proceedings to fix, levy, and collect a wastewater user service rate on all
properties within the Vista Canyon development and Assessor's Parcel Number 2840-004-009.
SECTION 2. The user service rate, as adopted by the Council, is based upon the
report of a "qualified engineer", Harris & Associates, which is on file with the City and available
for review during normal business hours. A complete description of the properties to be charged
and the amount of said rates is contained in the aforementioned report, including a diagram and
APN list for the affected parcels.
SECTION 3. A public hearing on the establishment of the user service rates shall be
held on Tuesday, November 28, 2017, at 6:00 o'clock p.m., or as soon thereafter as practicable,
at the City of Santa Clarita Council Chambers, 23920 Valencia Boulevard, Santa Clarita,
California 91355.
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SECTION 4. At the time and place set forth above for the public hearing, any
interested person may appear and be heard. The City Council will hear and consider all protests. c
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SECTION 5. The City Clerk is hereby directed to publish a notice (Notice) of the
public hearing pursuant to Section 6061 of the Government Code in a newspaper of general
circulation published in the area of the proposed standby charge and wastewater service rate.
Such publication shall be completed at least 10 days prior to the date of the public hearing.
SECTION 6. A mailed notice shall be sent to each property owner that would be
subject to the rate, as required by Article XIIID of the State Constitution.
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SECTION 7. The City Clerk is hereby directed to cause the required Notice of the
proposed rate to be mailed to each affected property owner. The Notice shall be mailed not less
than 45 days prior to the Public Hearing and shall contain the information required by Article
XIIID of the State Constitution.
SECTION 8. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2017.
MAYOR
ATTEST:
CITY CLERK
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ENGINEER'S REPORT
Wastewater Standby Charges
(Vista Canyon)
Fiscal Year 2017-18
Forthe
CITY OF SANTA CLARITA
Los Angeles County, California
September 26, 2017
Harris & Associates
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon)
ENGINEER'S REPORT
Table of Contents
Contents
Engineer's Report.....................................................................................................1
Plans and Specifications...........................................................................................4
Estimateof Cost.......................................................................................................5
Appendices
A District Diagram
B Standby Charge Roll
C Project Area Map
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 1
Engineer's Report
CITY OF SANTA CLARITA
WASTEWATER STANDBY CHARGES
(VISTA CANYON)
The undersigned respectfully submits the enclosed report as directed by the City Council.
DATED: September 26, 2017
BY: K. Dennis Klingelhofer, P.E.
R.C.E. No. 50255
0
I HEREBY CERTIFY thatthe enclosed Engineer's Report, togetherwith Standby Charge Roll and District
Diagram thereto attached, was filed with me on the day of , 2017.
, City Clerk,
City of Santa Clarita
Los Angeles County, California
0
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Standby Charge Roll and District
Diagram thereto attached, was approved and confirmed by the City Council of the City of Santa
Clarita, California, on the day of 2017.
City Clerk,
City of Santa Clarita
Los Angeles County, California
LIM
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 2
CITY OF SANTA CLARITA
FISCAL YEAR 2017-18
ENGINEER'S REPORT
PREPARED PURSUANT TO THE PROVISIONS OF THE
UNIFORM STANDBY CHARGES PROCEDURES ACT
TITLE 5, DIVISION 2, PART 1, CHAPTER 12.4
OF THE CALIFORNIA GOVERNMENT CODE
Pursuant to Part 1, Division 2 of Title 5 of the Government of the State of California, and in accordance
with the Resolution adopted by the City Council of the City of Santa Clarita State of California, in
connection with the proceedings for:
CITY OF SANTA CLARITA
WASTEWATER STANDBY CHARGES
(VISTA CANYON)
Hereinafter referred to as the "Standby District" or "District", I, K. Dennis Klingelhofer, P.E., the
authorized representative of Harris & Associates, the duly appointed ENGINEER OF WORK, submit
herewith the "Report" consisting of six (6) parts as follows:
PART A
PLANS AND SPECIFICATIONS
Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto,
and are on file in the Office of the Engineering Services Division and are incorporated herein by
reference.
PART B
ESTIMATE OF COST
An estimate of the costs of the proposed improvements, including incidental costs and expenses in
connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office
of the Engineering Services Division and incorporated herein by reference.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 3
PART C
STANDBY DISTRICT DIAGRAM
The Diagram of the District boundaries showing the exterior boundaries of the Standby District and
the lines and dimensions of each parcel of land within the District.
The lines and dimensions of each lot or parcel within the Standby District are those lines and
dimensions shown on the maps of the Assessor of the County of Los Angeles for the fiscal year to
which this Report applies. The Assessor's maps and records are incorporated by reference herein
and made part of this Report.
PART D
STANDBY CHARGE ROLL
An assessment of the estimated cost of the improvements on each benefited parcel of land within
the Standby District.
PART E
METHOD OF APPORTIONMENT
The method of apportionment of charges, indicating the proposed levy of the net amount of the costs
and expenses of the improvements to be levied upon the several parcels of land within the Standby
District, in proportion to the estimated benefits to be received by such parcels.
PART F
DEFINITIONS
A definition of each of the items shown in the Estimate of Costs, as shown in Section B (page 5) of
this Report.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 4
PART A
Plans and Specifications
The proposed services involve the maintenance and operation of a wastewater treatment and
recycling facility (the "Vista Canyon Sewer System" or "Plant'), required for the Vista Canyon project
by the California Regional Water Quality Control Board, Los Angeles Region ("RWQCB"). The Plant
has a design capacity of 392,000 gallons per day (GPD) which will generate 371,000 GPD of effluent
to be recycled. The wastewater treatment process within the Plant consists of preliminary treatment,
flow equalization, secondary treatment with a retention time of 18 hours in two on-site aeration
tanks, clarification with a retention time of 0.5 hours in two sedimentation tanks, tertiary treatment,
and disinfection. Regular maintenance is required in order for the Plant to function properly and
within the design parameters.
The services necessary for the District include, but are not limited to, and may be generally described
as: 1) wastewater treatment, 2) sale of treated, recycled wastewater to the Castaic Lake Water
Agency (CLWA), and 3) maintenance and inspection of the Plant for satisfactory operations.
Plans and Specifications for the improvements for the District are voluminous and are not bound in
this report, but by this reference are incorporated and made a part of this report. The Plans and
Specification for the project are on file at the City where they are available for public inspection.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 5
PART B
Estimate of Cost
The estimated costs of the improvements shall include the total cost of the operation and maintenance
of the Plant, including incidentals and reserves for capital replacement and to operate the facility until
funds are transferred to the City from the County around January of each fiscal year.
Assessment Law also provides that the amount of any surplus, deficit or contribution be included in
the estimated cost of improvements. The net amount to be levied on the parcels within a district is
the total cost of maintenance and servicing with adjustments either positive or negative for reserves,
surpluses, deficits, and/or contributions.
Estimate of Cost —The table on the page shows the estimated costs of improvements and services
for the District.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 6
Item
Amount
Operations and Maintenance Costs
Fixed Operations and Maintenance (O&M) Costs
$366,276.00
Variable O&M Costs @$0.47/1,000 Gallons
$30,936.00
Fixed Power Costs @$0.12/kWh
$9,672.00
Variable Power Costs @$0.12/kWh
$87,120.00
Annual Water Quality Monitoring and Compliance 1
$114,626.00
$608,630.00
Subtotal Maintenance Costs
Administrative Costs
Annual Administration
$117,645.00
County Collection Fees
$301.50
Rounding Adjustment
7.21
Subtotal Administrative Costs
$117,953.71
Reserves
Operating Reserve (50% of Maintenance & Admin. Costs) z
$121,097.29
Annual Capital Replacement Reserve
289.894.38
Subtotal Reserves
$410,991.67
Annual Estimated Revenues from Treated Water Sale 3
($83,887.00)
Annual Estimated Reimbursement from LACSD4
($30,000.00)
Credit from LACSD for Use of Treated Waters
$0.00
Total Annual Maintenance, Administration. Reserve and Revenue Cost
$1,023,688.38
2,272.54
Total Estimated Project EBU
Total Proposed Maximum Standby Charge Per EBU
$450.46
See next page for detailed explanation of footnotes.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 7
M Water Quality Monitoring costs include an annual permit required by California Water Code Section
13260, and quarterly and annual monitoring requirements from the RWQCB. These requirements
cost a total of $98,251, annually. Additionally, every five years, there is an engineer's report and a
renewal permit required by the RWQCB totaling an additional $81,875. The amount shown in the
Estimate of Cost above, represents the average annual costs ($98,251 * 5 = $491,255 + $81,875 / 5 =
$114,626).
A Contingency Reserve fund is also being established to cover the costs of unexpected repairs or
emergencies may arise. This amount is also being collected over a period of five years. Once the
Contingency Reserve is fully funded (approximately 25% of the annual costs), collections will cease,
except to keep the fund at its intended balance.
M An Operating Reserve fund is being established for the District to cover the first six months of
expenses each year, before disbursement of assessment collections from the County has been
received. This amount is being collected over a period of three years. Once the Operating Reserve is
fully funded (approximately 50% of the annual Operations & Maintenance and Administrative Costs),
collections will cease, except to keep the fund at its intended balance.
0) The City and CLWA are finalizing an Agreement where CLWA will purchase 439.20 AFY from the
Plant at a rate of $191.00 per AF
i4I The Plant will treat existing sewer flows off the Vista Canyon project site. The City will be
reimbursed, on an annual basis, for the treatment of these flows from the Los Angeles County
Sanitation District (LACSD).
0) The City will also be reimbursed, on an annual basis, for use of treated water, both on and off-site,
by LACSD. The credit will begin in the second year after the formation of the District and will increase
over a five year period until it reaches the final amount of $30,643, which will be applied annually
from that time. The incremental increase is based on the estimated build -out of the project and is
shown below:
1. $3,204 - (assuming treating and recycling %: of Vista's buildout RW demand; 38,791 gallons
per day, "gpd") — Forecast beginning in Year Two
2. $6,408 - (assuming treating and recycling all of Vista's buildout RW demand; 77,582 gpd) —
Forecast beginning in Year Three
3. $14,486 - (assuming treating and recycling all of Vista's buildout RW demand of 77,582 gpd
and part of the CLWA RW demand (1/3 of remaining Plant capacity); 175,388 gpd total) -
Forecast beginning in Year Four
4. $22,565 - (assuming treating and recycling all of Vista's buildout RW demand of 77,582 gpd
and part of the CLWA RW demand (2/3 of remaining Plant capacity); 273,194 gpd total) -
Forecast beginning in Year Five
5. $30,643 - (assuming CLWA RW system is fully online and Vista Plant is at 100% RW
production of 371,000 gpd) — Forecast beginning in Year Six
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 8-
A Capital Replacement Reserve fund is also being established to cover the future replacement costs
of certain items that have a finite, useful operating life expectancy. Those items are shown in the
table below, along with other pertinent information.
Capital Replacement Reserve Requirement
Item
Unit
Quantity
Cost/Unit
Cycle
Cost/Year
System Improvements
Concrete
SF
2,072,696
$0.05
50
$2,072.70
Operations Building
Per
1
$880,680.00
30
29,356.00
Screening
Per
1
$31,916.00
20
1,595.80
Pumps, Mixers & Odor Control
Per
37
$520,000.00
10
52,000.00
Aeration System/Blowers
Per
2
$836,000.00
10
83,600.00
Filters
Per
1
$87,646.00
20
4,382.30
UV Disinfection
Per
4
$375,576.00
20
18,778.80
Mechanical
Per
1
$720,026.00
20
36,001.30
Electrical (WRF)
Per
1
$192,000.00
20
9,600.00
Elecrtical (Offsite)
Per
1
$192,000.00
30
6,400.00
Controls/Programming/Commissioning
Per
1
$322,186.00
10
32,218.60
Emergency Generator
Per
1
$250.000.00
18
13.888.89
$4,408,030.05
Total Capital Replacement Costs
$289,894.38
Note: The unit costs above were provided by the Dexter Wilson Engineering who designed and
constructed the Plant. These costs have not been independently verified by Harris.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 9
PART C
District Diagram
The boundary diagram for the District is included herein as Appendix A, and is part of this report.
The lines and dimensions of each lot or parcel within the District are those lines and dimensions
shown on the maps of the Assessor of the County of Los Angeles for the fiscal year to which this
Report applies. The Assessor's maps and records are incorporated by reference herein and made a
part of this Report.
PART D
Standby Roll
All assessed lots or parcels of real property within the District are listed on the Standby Charge Roll.
The Standby Charge Roll states the net amount to be levied upon assessable lands within the District
for Fiscal Year 2018-19, shows the Fiscal Year 2018-19 charge upon each parcel within the District,
the 2018-19 Maximum Charge per parcel, and describes each assessable parcel of land within the
District. These parcels are more particularly described in the Standby Charge Roll, which is included
in this Report as Appendix B.
T-T-ar:
Method of Apportionment
The following is the standby charge, apportionment methodology for the Standby District
Background
Assessment Law provides that assessments may be apportioned upon all assessable lots or parcels of
land within an assessment district in proportion to the estimated benefits to be received by each lot
or parcel from the improvements. Proposition 218 defines a Standby Charge as an "assessment" and
the requirements of special benefit and proportionality apply to Standby Charges. In addition,
Proposition 218 requires that a parcel's assessment may not exceed the reasonable cost of the
proportional special benefit conferred on that parcel. The Proposition provides that only special
benefits are assessable, and the City must separate the general benefits from the special benefits
conferred on a parcel. A special benefit is a particular and distinct benefit over and above general
benefits conferred on the public at large, including real property within the District. The general
enhancement of property value does not constitute a special benefit.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 10
Special Benefit
The Vista Canyon development includes Tract Map 69164 and an additional parcel on the southwest
corner of the District (currently APN 2840-004-009). The development will be comprised of single-
family detached parcels, single-family attached parcels (condominiums), multi -family residential
parcels (apartments), mixed-use retail, office space, a hotel, a park area and private roads.
All of the wastewater treatment and recycling facility improvements will be installed by the developer
of the project, and the continued operation and maintenance of the facilities will be financed through
the establishment of a Sewer Service Charge and a Standby Charge District. If the installation of the
improvements and the guaranteed maintenance does not occur, the development cannot be
established. The establishment of a buildable lot is a special benefit which permits the construction
of a building or structure on the property, and the ownership and sale of the distinct lot in perpetuity.
As a result, each lot within the District receives a special and distinct benefit from the improvements
and the resulting ability to develop.
Since the Plant is totally self-contained and has been designed and constructed for the sole use and
benefit of properties within the District, effluent to the County maintained sewer system is
eliminated.
The Plant will be completely constructed and fully operational prior to any development of the
parcels within the District. As a result, all parcels, developed or otherwise, will have immediate access
(availability) to the system.
The wastewater treatment and recycling system is designed to collect wastewater, direct the flow of
wastewater to the on-site treatment plant, process and treat the wastewater into reusable, non -
potable water, to be used for other applications within the project area, such as irrigation of
landscaped or re -vegetated areas, or public toilet facilities within the development.
These benefits make up the total special benefits from the wastewater improvements provided
through the establishment of the District.
The Vista Canyon development, Tentative Tract Map 69164 and APN 2840-004-009 is comprised of
parcels that benefit from each of the identified special benefits.
Although there are special benefits received by the parcels within the District, there are no general
benefits conferred to the public at large by the proposed improvements because the facilities and
services are completely contained within the boundaries of the District and were installed and
designed specifically for the sole use this development.
Apportionment
Since the charges will be levied against parcels of property as shown on the tax roll, the final charges
must be assigned by Assessor's Parcel Number. If charges were to be spread just by parcel, not
considering land use or parcel size, a parcel intended for single family residential use would pay the
same as a proposed 50 unit apartment complex or a large commercial establishment, and this would
not be equitable.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 11
The single family detached residential unit has been selected as the basic unit for calculation of
assessments and is defined as one Equivalent Benefit Unit (EBU). A methodology has been developed
to calculate the EBU's for multi -family residential land uses and for non-residential parcels. The
proposed land -use, as reflected in the development plan, is converted to EBU's. Parcels containing
apartments, condominiums, townhomes, or duplexes are assigned EBU's based on the number of
dwelling units proposed on each parcel of land and the estimated Gallons Per Day ("GPD") of
wastewater contributed to the system. Proposed non-residential parcels are assigned EBU's based
on the estimated GPD, per 1,000 square feet of building size.
The EBU method is seen as the most appropriate and equitable method of spreading of benefit to
each parcel from the improvements since it is based on estimated contribution to the system and
land -use type, and/or parcel size. Property within the District is assigned to one of the following six
categories based on the land use summary provided in the table on the following page.
Vacant (Detached) Residential. Parcels intended for detached residential ("SFR" or "single family")
uses are assessed 1 EBU per dwelling unit. Parcels designated as SFR land -use, once developed, will
be assessed 1 EBU per dwelling unit or lot, including vacant subdivided residential lots and vacant
land zoned for single family residential uses with a tentative or final tract map. A parcel shall be
considered developed when a building permit for new construction has been issued prior to June 1
of the preceding fiscal year. In determining the contribution to the wastewater system for an SFR
parcel, the Los Angeles County Sanitation Districts' ("LACSD") "Loadings for Class of Land Use Table"
(Wastewater Ordinance Section 410), states the base unit of measurement for wastewater discharge
is 260 GPD. This will be the equivalent to one EBU for purposes of assigning EBU's to other land -uses.
Vacant (Attached)—Condominiums. Parcels intended for condominium use equivalencies ("Condo")
are assessed based on the number of dwelling units on each parcel and the estimated contribution
to the wastewater system for each Condo unit. Due to population density and size of structure,
relative to the typical single family residence, each dwelling unit defined as Condo is assigned an EBU
Factor of 0.75 EBU per dwelling unit. This coincides with the LACSD Loadings for Class of Land Use
Table, estimated at 195 GPD for each Condo unit. The EBU's assigned to a Condo parcel are therefore
calculated by multiplying the number of dwelling units by the EBU Factor of 0.75.
Vacant Multiple -Family Residential (Apartments). Parcels intended for multiple -family residential
("MFR" or "Apartments") land use equivalencies are assessed based on the number of dwelling units
on each parcel and the estimated contribution to the wastewater system for each MFR unit. Due to
population density and size of structure relative to the typical single family residence, each dwelling
unit defined as MFR is assigned an EBU Factor of 0.60 EBU per dwelling unit. This coincides with the
LACSD "Loadings for Class of Land Use Table, estimated at 156 GPD for each MFR unit. The EBU's
assigned to an MFR parcel are therefore calculated by multiplying the number of dwelling units by
the EBU Factor of 0.60.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 12
Vacant— Mixed Non -Residential. Non-residential (including office space and mixed retail) land use
equivalencies are assessed based on the number of estimated square feet ("SF") of office/retail space
on each parcel and the estimated contribution to the wastewater system for per 1,000 square feet.
Based on the LACSD Loadings Table, compared to the SFR EBU factor of 1.0, non-residential parcels
are assigned an EBU factor of 0.75 per 1,000 SF (195 G PD) for office space, and 1.24 per 1,000 SF (322
GPD) for retail space, also categorized by LACSD and SCVSD as a "regional mall".
Vacant Non -Residential — Hotel. Non-residential — Hotel land use equivalencies are assessed based
on the number of rooms on the parcel and the estimated contribution to the wastewater system for
each room. Each room, also defined as units, is assigned an EBU Factor of 0.47 EBU. This is also based
on the LACSD Loadings Table, estimating 122 GPD for each hotel room. The EBU's assigned to a Hotel
parcel therefore are calculated by multiplying the number of rooms by the EBU Factor of 0.47.
Vacant Non -Residential — Restaurant. Restaurant land use equivalencies are assessed based on the
number of estimated square feet ("SF") of restaurant space on and the estimated contribution to the
wastewater system for per 1,000 square feet. Based on the LACSD Loadings Table, compared to the
SFR EBU factor of 1.0, restaurant parcels are assigned an EBU factor of 8.86 per 1,000 SF (2,305 GPD).
The development agreement does not call for a stand-alone restaurant at this time. This category is
included in case that changes in the future.
EBU Factors by Land Use
The following table is summary of the EBU Factors for each of the District proposed land use
categories:
Land Use
EBU Factor
Vacant Single Family Residential
1.00 EBU per Dwelling Unit
Vacant Single Family Residential - Condo
0.75 EBU per Dwelling Unit
Vacant Multi -Family Residential - Apartment
0.60 EBU per Dwelling Unit
Vacant Non -Residential - Office
0.75 EBU per 1,000 SF
Vacant Non -Residential - Retail
1.24 EBU per 1,000 SF
Vacant Non -Residential - Hotel
0.47 EBU per Room
Vacant Non -Residential - Restaurant
8.86 EBU per 1,000 SF
EBU Factors assigned to Land Use types is based on the Santa Clarita Valley Sanitation District —
Service Charge Sewage Units and Charges per Unit of Usage.
Land Use and EBU Summary
The following table provides a summary of the current land uses within the District and shows the
assigned EBU's for purposes of this Report and the assessment calculations. Actual future
development may result in a different number of dwelling units in the District. Depending upon
whether there is an increase or decrease in the number of dwelling units, the assessment rate will be
adjusted to reflect the higher or lower number of resulting EBU's. For this reason, the assessment
rate per EBU is shown as the maximum assessment rate for 2018-19.
City of Santa Clarita
September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 13
Total District EBUs
Description
Proposed
Approximate
Square
Tota I Sta nd by Cha rge
Description
Dwelling Units
Acres
Feet
EBUs
Vacant Single Family Res. (Detached)
120
8.00
N/A
120.00
Vacant Single Family Attached (Condos)
554
56.84
N/A
415.50
Vacant Multi -Family (Apartments)
778
17.00
N/A
466.80
Vacant Non -Residential - Office
N/A
5.00
605,400
454.05
Vacant Non -Residential - Retail
N/A
16.00
153,700
190.59
Vacant Non -Residential - Hotel
200
3.00
N/A
94.00
Vacant Non -Residential - Restaurant
N/A
-
60,000
531.60
Totall
1,652
1 105.84
1
1 2,272.54
Standby Rates
The Standby Rate for District parcels is shown in the tables below. Since the Standby charges are
applied prior to development, they are charged against the current APN's and the anticipated
development on those APN's. It is intended that these Standby Charges will be equal to the Sewer
Service Charges that will become active after development occurs and the individual properties are
connected and contributing to the wastewater system.
Fiscal Year 2018-19 Standby District Maximum Rates Per EBU and Total Charge
Description
Standby Amount
Total
EBUs
Rate/EBU
Tota I Sta nd by Cha rge
$1,023,688.38
2,272.54
$450.46
Total Charge and Standby Rate
$1,023,688.38
2,272.54
$450.46
Proposed Units/SF on Each APN
2840-002-270
2840-004-009
2840-004-017
2840-004-021
2840-004-036
2840-005-057
SFR
20.00
-
20.00
-
-
80.00
Condo
10.00
352.00
37.00
-
75.00
80.00
Apts
-
-
150.00
352.00
276.00
-
Office
-
-
-
-
605,400.00
-
Retail
-
-
153,700.00
-
Hotel (Rms)
-
-
200.00
-
Restaurant
60,000.00
City of Santa Clarita
September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 14
Proposed EBU's on Each APN
2840-004-017 2840-004-021 2840-004-036
The maximum annual assessment rate will be increased each of the first four years after
formation (2019-20, 2020-21, 2021-22 & 2022-23), by 5.0%. This percentage increase
was established based on estimated future revenue needs for the Plant, as detailed on
page four of this Report, "Estimate of Costs". The actual assessments levied in any fiscal
year will be as approved by the City Council and may not exceed the maximum annual
assessment rate for that year without receiving property owner approval for the
increase pursuant to Article XIII D of the California State Constitution.
Anticipated Future Standby Charges
It is anticipated, and the methodology established in this Report has been designed in such a way,
that the Standby Charges detailed herein will be replaced by a fee based on usage (Service Charge),
once development occurs on a particular parcel. This formula was designed and will be implemented
as a way to ensure the annual costs of operations and maintenance are funded, whether before or
after development occurs. A separate engineer's report detailing the Service Charge has also been
prepared and is on file with the City and is available for public inspection. Below is a table showing
the Maximum amounts that be charged, per EBU, for the Standby and Service charges.
Fiscal Year
Standby Charge
per EBU
Service Charge
per EBU
2018-19
Total EBUs
SFR
20.00
0.00
20.00
0.00
0.00
80.00
120.00
Condo
7.50
264.00
27.75
0.00
56.25
60.00
415.50
Apts
0.00
0.00
90.00
211.20
165.60
0.00
466.80
Office
0.00
0.00
0.00
0.00
454.05
0.00
454.05
Retail
0.00
0.00
0.00
0.00
190.59
0.00
190.59
Hotel
0.00
0.00
0.00
0.00
94.00
0.00
94.00
Restaurant
0.00
0.00
0.00
0.00
531.60
0.00
531.60
Total
27.50
264.00
137.75
211.20
1,492.09
140.00
2,272.54
The maximum annual assessment rate will be increased each of the first four years after
formation (2019-20, 2020-21, 2021-22 & 2022-23), by 5.0%. This percentage increase
was established based on estimated future revenue needs for the Plant, as detailed on
page four of this Report, "Estimate of Costs". The actual assessments levied in any fiscal
year will be as approved by the City Council and may not exceed the maximum annual
assessment rate for that year without receiving property owner approval for the
increase pursuant to Article XIII D of the California State Constitution.
Anticipated Future Standby Charges
It is anticipated, and the methodology established in this Report has been designed in such a way,
that the Standby Charges detailed herein will be replaced by a fee based on usage (Service Charge),
once development occurs on a particular parcel. This formula was designed and will be implemented
as a way to ensure the annual costs of operations and maintenance are funded, whether before or
after development occurs. A separate engineer's report detailing the Service Charge has also been
prepared and is on file with the City and is available for public inspection. Below is a table showing
the Maximum amounts that be charged, per EBU, for the Standby and Service charges.
Fiscal Year
Standby Charge
per EBU
Service Charge
per EBU
2018-19
$
450.46
$
450.46
2019-20
$
472.98
$
472.98
2020-21
$
496.63
$
496.63
2021-22
$
521.46
$
521.46
2022-23
$
547.54
$
547.54
2023-24
$
547.54
$
547.54
2024-25
$
547.54
$
547.54
2025-26
$
547.54
$
547.54
2026-27
$
547.54
$
547.54
2027-28
$
547.54
$
547.54
2028-29
$
547.54
$
547.54
2029-30
$
547.54
$
547.54
2030-31
$
547.54
$
547.54
2031-32
$
547.54
$
547.54
2032-33
$
547.54
$
547.54
2033-34
$
547.54
$
547.54
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 15
off WTIMY�
Definitions
The following provides a definition of the line items shown in the Estimate of Costs.
Fixed O&M Costs — Includes all labor (with burden), management, laboratory fees, insurance, safety
supplies, general supplies, telephones, internet, tools, staff training, service contracts, and the fixed
portion of the routine maintenance for normal equipment wear and tear. Additional items not
included in this budget estimate might also include such item as a site maintenance truck or portable
hoist or crane system, etc.
Variable O&M Costs— Includes sludge dewatering and disposal, chemicals, polymer, and the variable
portion of the routine maintenance for normal equipment wear and tear.
Fixed Power Costs — Includes the power for lights, wall receptacles and anything unrelated to the
treatment of wastewater.
Variable Power Costs — Includes all process equipment and power used in direct relation to treating
wastewater.
Annual Administration — City personnel costs related to the District. This can include Public Works,
Special Districts, City Attorney, City Manager, City Council, etc.
Annual Water Quality Monitoring and Compliance — Required costs associated with permits,
monitoring water quality and reporting. See page 6 of the Report for further details.
County Collection Fees — County fees for placing any charges onto the tax roll for a given year. This
amount includes a one-time charge of $250 for a new District, $50 per District and $0.25 per parcel.
Rounding Adjustment—This brings the assessment amounts to an even dollar amount. Los Angeles
County requires that assessment amounts submitted to the tax roll are evenly divisible by two.
Operating Reserve — See page 6 of this Report.
Annual Capital Reserve Replacement—See page 6 of this Report.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Page 16
Annual Estimated Revenues from Treated Water Sales — It is estimated the Plant will generate
approximately 440 acre feet of treated water per year. Some of that treated water will be used for
on-site and off-site purposes, such as irrigation of landscaped areas. Additionally, some of that water
will be sold to the Castaic Lake Water Agency. Revenue generated from those sales will be used as a
credit to the annual costs of operating and maintaining the Plant.
Annual Estimated Reimbursement from LACSD — Reimbursement to City, from LACSD for treatment
of existing sewer flows. See page 7, Note 5, of this Report.
Credit from LACSD for Use of Treated Water — Reimbursement to City, from LACSD for the on and
off-site use of treated water.
EBU — See page 9 of this Report.
Total Estimated Project EBU — This is the amount of total EBLI's estimated to be in the District at
build -out, based on the current development plan.
Total Proposed Maximum Standby Charge per EBU —This is the Maximum Rate, per parcel/unit, that
can be charged during a particular year.
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Appendix A
CITY OF SANTA CLARITA
Wastewater Standby Charge (Vista Canyon)
District Diagram
4. R �-
1 1L
Los Angeles County Parcel Numbers:
APN 2840-002-270 (por)
APN 2840-004-009
APN 2840-004-017
APN 2840-004-021 (por)
APN 2840-004-036 (por)
APN 2840-005-057 (por)
LEGEND
District Boundaries
Harris & Associates
City of Santa Clarita
September 26, 2017
Wastewater Standby Charges (Vista Canyon) Appendix B
APPENDIX B
Standby Charge Roll
City of Santa Clarita
Wastewater Standby Charge District
(Vista Canyon)
The Standby Roll is hereby incorporated and made a part of this Report, as shown below
Reference is made to the Los Angeles County Assessor's Maps for a description of the parcels in the
District.
FY 2018-19 Standby Charge Roll
APN
Owner
Total
Acres
Total EBU's
FY 2018.19
Maximum
Rate
FY 2018.19
Maximum
Charge
FY 2018.19
Applied Charge
Por. of 2840-002-270
VISTA CANYON RANCH LLC
4.00
27.50
$450.46
$12,387.66
$12,387.66
2840-004-009
CLOYD WILLIAM C GOLDMAN FAM. LP
18.80
264.00
$450.46
$118,921.44
$118,921.44
2840-004-017
VISTA CANYON RANCH LLC
11.36
137.75
$450.46
$62,050.86
$62,050.86
Por. of 2840-004-021
VISTA CANYON, PHASE I LLC
9.82
211.20
$450.46
$95,137.16
$95,137.16
Por. of 2840-004-036
VISTA CANYON, PHASE I LLC
36.17
1,492.09
$450.46
$672,126.86
$672,126.86
Por. of 2840-005-057
VISTA CANYON RANCH LLC
25.69
140.00
$450.46
$63,064.40
$63,064.40
Totals:
105.84
2,272.54
$1,023,688.38
$1,023,688.38
City of Santa Clarita September 26, 2017
Wastewater Standby Charges (Vista Canyon) Appendix C
APPENDIX C
Tentative Tract Map No. 69164 and APN 2840-004-009
i
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ENGINEER'S REPORT
Wastewater Sewer Charges
(Vista Canyon)
Fiscal Years 2018 — 2032
Forthe
CITY OF SANTA CLARITA
Los Angeles County, California
September 26, 2017
Harris & Associates
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon)
Report Table of Contents
Executive Summary........................................................................1
Revenue Projections.......................................................................3
Operating Cost Projections.............................................................4
Capital Replacement Costs.............................................................5
Capital (R&R) Projections................................................................6
Financial Plan (Pro Forma)..............................................................7
EBUDevelopment...........................................................................8
Proposition 218 Process...............................................................11
Attachments
A Pro Forma Operating Fund 2018-2032
B Diagram of Service Area
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 1
EXECUTIVE SUMMARY
The City of Santa Clarita, hereafter "the City', engaged Harris & Associates to conduct fee calculations
to support long term operations of the Vista Canyon Water Recycle Plant, hereafter "the Plant". The
analysis was conducted in light of the requirements of Proposition 218 and recent case law regarding
sewer service charges. This report is prepared pursuant to provisions of the Health and Safety Code,
Division 5, Part 3 Chapter 6 Article 4, "Sanitation and Sewerage Systems"
The Plant is being constructed to serve the new Vista Canyon development which is expected to
service approximately 1,100 apartments, townhomes and single-family residences as well as
approximately 1 million square feet of retail, office, hotel, dining services and entertainment space.
Additionally the Plant will be providing sewage service to an adjacent property to the south of Vista
Canyon (APN 2840-004-009). It is planned that this property will develop with up to 350 multi -family
units. It is anticipated that the developer will be responsible for the operation and maintenance of
the Plant for approximately the first two years after completion. The City will subsequently take over
those responsibilities. Since the City will ultimately own and operate the Plant and associated
wastewater collection system, the City has requested Harris & Associates to develop a rate schedule
and a financing plan or pro forma, that will provide the revenue needed for the future operation and
maintenance of the Plant, and which will allocate those costs to future residents and ratepayers in a
fair and equitable manner.
Key Assumptions, Methodology and Summarized Recommendations
➢ Key Assumptions:
The key assumptions used in this study included:
• Study Period 2018-2032
• Projected Equivalent Benefit Units (EBU), both standby and occupied, were provided by
the developer and assume a build -out year of 2024
• Escalators for general inflation, power costs and construction costs of 3.5 percent,
4.0 percent and 3.0 percent, respectively, were used in developing the projections
• Revenues from the treatment of offsite flows estimated at $30,000 per year per Dexter
Wilson Engineering
• Revenues from the sale of recycled water to CLWA estimated at $83,887 in 2018
assuming the purchase of 439.20 AFY at $191.00 per AF.
• The City will be reimbursed for use of treated water by LACSD starting in year 2 and
ramping up to $30,643 per year in year 6.
• Operations and Maintenance (O&M) Expenses were provided by the developer and not
independently verified by Harris
• Annual Renewal and Replacement (R&R) Expenses based on information provided by
the developer and adjusted for certain items described later in this report
• R&R reserve reflects annual amounts to be collected in order to pay for expected R&R
expenses through 2032. Monies will be held in a separate fund.
• Operating reserve target for the Operating Fund assumed to be 180 days of O&M
expenses by 2020. Subsequent years' ending balances show significant levels of
potential reserves for forecasting purposes only. The City will set rates based on actual
needs in years beyond 2018.
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 2
• Collection system costs not included.
➢ Methodology:
The study included a revenue requirements analysis developed over a 15 -year time period
encompassing the years 2018-2032. Projections were developed for annual:
• Standby and Occupied Development Units
• Revenues
• Operations and Maintenance (O&M) Expenses
• Renewal and Replacement Expenses (R&R)
• R&R Reserve Fund
• Level of Operating Reserve in Operating Fund expressed in Days of Annual O&M
Expenses
Sewer rates for customer classes were developed based on total annual revenue
requirements divided by total projected building units. Customer categories by building unit
were based on those used by LA County Sanitation District (LACSD), which takes into account
the diversity of flows, chemical oxygen demand (COD) and suspended solids (SS) among the
various customer classes.
➢ Summarized Results
The table below is a summary of results for annual sewer service charges per EBU over the
2018-2032 time period. These rates are assumed to be implemented on January 1st of each
fiscal year and, based on the assumptions outlined in this report, should provide the
necessary revenue to operate the Plant in a safe and reliable manner. Any significant
deviations from the assumptions described in this report could result in different financial
outcomes. It is recommended that the City update this analysis on an annual basis in order
to ensure that assumptions reflect current conditions and expectations.
These results reflect the City's desire to forecast sufficient operating reserves in future years.
The City will set rates based on actual needs in years beyond 2018.
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 3
Fiscal Year
Service Charge
per EBU
Standby Charge
per EBU
2018-19
$
450.46
$
450.46
2019-20
$
472.98
$
472.98
2020-21
$
496.63
$
496.63
2021-22
$
521.46
$
521.46
2022-23
$
547.54
$
547.54
2023-24
$
547.54
$
547.54
2024-25
$
547.54
$
547.54
2025-26
$
547.54
$
547.54
2026-27
$
547.54
$
547.54
2027-28
$
547.54
$
547.54
2028-29
$
547.54
$
547.54
2029-30
$
547.54
$
547.54
2030-31
$
547.54
$
547.54
2031-32
$
547.54
$
547.54
2032-33
$
547.54
$
547.54
REVENUE PROJECTIONS
Standby Charge and Sewer Charge Revenues at Existing Rates
Revenue projections were developed based on the projected number of standby and occupied units
as provided by the developer over the time period 2018-2032. Build out of approximately
2,272.54 EBUs is expected in 2024. Starting in Fiscal Year 2018-19, it is expected that both standby
and occupied units will pay an annual Standby Charge (for standby units) or a Sewer Service Charge
(for occupied units). Both charges are designed to recover the costs of providing sewer service at
build out conditions to developable units. The Plant is designed to operate at build out conditions
upon commissioning, using existing City of Santa Clarita flows to make up the difference between
build out flows and occupied flows. As the number of occupied units increase, the flow from the City
will decrease; these flows are being provided to the Plant at no cost.
Other Revenues
Other revenues consist of Reclaimed Water Sales Revenues.
Reclaimed Water Sales Revenues
The City and CLWA are finalizing an Agreement where CLWA will purchase 439.20 AFY from the Plant
at a rate of $191 per AF.
For purposes of this analysis, revenues from the sale of reclaimed water were escalated at the rate
of general inflation or 3.5 percent per year through 2032.
Revenues from Treatment of Offsite Flows
The Plant will treat existing sewer flow off the Vista Canyon project site. The City will be reimbursed,
on an annual basis, for the treatment of these flows from LACSD. The reimbursement is estimated
at $30,000 on an annual basis.
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 4
OPERATING COST PROJECTIONS
Operating costs projections consist of annual O&M expenses and Administrative expenses incurred
by the City.
O&M Expenses
Annual operations and maintenance (O&M) expenses for the Plant were projected by PERC Water
and are summarized in the following table.
Cost/Operating Assumptions
Amount
Cost Description
Monthly Fixed O&M ($/month)
$30,523
See below
Variable Fixed O&M ($/month)
$ 2,578
See below
Variable O&M Unit Costs ($/kgal)
$ 0.47
Fixed Power ($/kWh)
$ 0.12
Variable Power ($/kWh)
$ 0.12
Monthly Full Flows (kgals)
5,484
Monthly Fixed Power Usage at Full Flows (kWh)
6,717
See below
Monthly Variable Power Usage at Full Flows (kWh)
60,500
See below
Water Quality Monitoring
$114,700
$98,300 per year; $180,100
every 5 years; $114,700 is the
5 -year average
Harris has not independently verified these cost projections.
Fixed O&M Costs — Includes all labor (with burden), management, laboratory fees, insurance, safety
supplies, general supplies, telephones, internet, tools, staff training, service contracts, and the fixed
portion of the routine maintenance for normal equipment wear and tear. Additional items not
included in this budget estimate might also include such item as a site maintenance truck or portable
hoist or crane system, etc.
Variable O&M Costs— Includes sludge dewatering and disposal, chemicals, polymer, and the variable
portion of the routine maintenance for normal equipment wear and tear.
Fixed Power Costs — Includes the power for lights, wall receptacles and anything unrelated to the
treatment of wastewater.
Variable Power Costs — Includes all process equipment and power used in direct relation to treating
wastewater.
Water Quality Monitoring Costs — Required costs associated with permits, monitoring water quality
and reporting.
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 5
Administrative Expenses
The City estimates that it will incur approximately $118,000 annually for administering the contract
for operating the Plant. Although these costs are projected to increase as the number of parcels
being charged increase (LA County charges $0.25 per parcel) and the City personnel costs increase,
the County charges to the City will be decreased by $250 after the first year due to the fact that the
County charges a one-time fee for a new district.
CAPITAL REPLACEMENT COSTS
Capital Replacement costs are incorporated into the budget for the Standby District as well as the
User Fee. A breakdown of the specific costs per item is shown in the table below.
FY 2018-19 Capital Replacement Reserve Requirement
Item
Unit
Quantity
Cost/Unit
Cycle
Cost/Year
System Improvements
Concrete
SF
2,072,696
$0.05
50
$2,072.70
Operations Building
Per
1
$880,680.00
30
29,356.00
Screening
Per
1
$31,916.00
20
1,595.80
Pumps, Mixers & Odor Control
Per
37
$520,000.00
10
52,000.00
Aeration System/Blowers
Per
2
$836,000.00
10
83,600.00
Filters
Per
1
$87,646.00
20
4,382.30
UV Disinfection
Per
4
$375,576.00
20
18,778.80
Mechanical
Per
1
$720,026.00
20
36,001.30
Electrical (WRF)
Per
1
$192,000.00
20
9,600.00
Elecrtical (Offsite)
Per
1
$192,000.00
30
6,400.00
Controls/Programming/Commissioning
Per
1
$322,186.00
10
32,218.60
Emergency Generator
Per
1
$250.000.00
18
13.888.89
$4,408,030.05
Total Capital Replacement Costs
$289,894.38
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 6
CAPITAL (R&R) PROJECTIONS
Annual capital cost projections consist of renewal and replacement (R&R) items provided by the
developer. Harris has not independently reviewed these projections.
This annual expense is escalated by 3.0 percent per year. These amounts will be
accumulated in a City -controlled fund and used for Plant R&R expenses. Per the Developer
the following replacements are projected:
• Year 10 — Pumps, Mixers & Odor Control for $520,000, Aeration System/Blowers for
$836,000 and Controls/Programming/Commissioning for $322,186.
All R&R expenditures are assumed to be cash -financed. No debt financing is assumed. The projected
annual R&R Fund balance is shown in the graph below. The ending balance in 2032 is estimated to
be approximately $3,200,000. This number should be reviewed in later years in light of any future
decisions that might change the mix of capital funding and/or the timing of future R&R expenditures.
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
Renewal and Replacement Fund Balance
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
_R&R Fund Balance
Years shown in the table above (2018, 2019, 2020, etc.), represent Fiscal Years 2018-19, 2019-
20, 2020-21, etc.)
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 7
FINANCIAL PLAN (PRO FORMA)
The Financial Plan or Pro Forma (Attachment A) pulls together all the elements of the revenue
requirements analysis, namely revenue projections, operating expense projections and capital
funding, over the time period 2018-2032. The results of this analysis will guide the City on the level
of necessary rate adjustments needed to fund Plant operations in order to provide reliable and safe
sewer services to the Vista Canyon ratepayers.
Financial Assurance Targets
Financial assurance targets guide the development of the pro forma consistent with City financial
policies such as reserve fund levels and debt service coverage. For purposes of this analysis we have
incorporated an Operating Fund Reserve Balance as a financial assurance target. This fund is separate
from the R&R fund described earlier.
➢ Operating Fund Reserve Target. A target Operating Fund Reserve begins with 60 days of O&M
and ramps up to 180 days of annual O&M expenses. This amount will increase over time with
escalation so that by the end of the Study Period, 2032-2033, the 180 -day target will be close
to $585,400 (in 2033 dollars). Exhibit A shows the projected ending balance exceeding this
target.
Revenue Adjustments
The results of the Pro Forma analysis (Attachment A) reflect the City's desire to forecast sufficient
operating reserves in future years. The City will set rates based on actual needs in years beyond
2018-19. The following revenue adjustments are assumed over the study period:
Fiscal Year
Revenue Increase
2018-19
0.0%
2019-20
5.0%
2020-21
5.0%
2021-22
5.0%
2022-23
5.0%
2023-24
0.0%
2024-25
0.0%
2025-26
0.0%
2026-27
0.0%
2027-28
0.0%
2028-29
0.0%
2029-30
0.0%
2030-31
0.0%
2031-32
0.0%
2032-33
0.0%
Rounding may reflect some minor differences in percentages.
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 8
EBU DEVELOPMENT
Background
The following discussion details the development of EBUs used in the analysis for both standby and
service charges.
Apportionment
Since the rates will be levied against parcels of property as shown on the tax roll, the final charges
must be assigned by Assessor's Parcel Number. If assessments were to be spread just by parcel, not
considering land use or parcel size, a parcel intended for single family residential use would pay the
same as a proposed 50 unit apartment complex or a large commercial establishment, and this would
not be equitable.
The single family detached residential unit or lot has been selected as the basic unit for calculation of
rates and is defined as one Equivalent Benefit Unit (EBU). A methodology has been developed to
calculate the EBU's for multi -family residential land uses and for non-residential parcels. Every
proposed land -use is converted to EBU's. Multi -family residential parcels containing apartments,
condominiums, townhomes, or duplexes are converted to EBU's based on the number of dwelling
units on each parcel of land and the estimated Gallons Per Day ("GPD") of wastewater contributed
to the system. Proposed non-residential parcels are converted based on the estimated GPD, per
1,000 square feet of building size. Each vacant parcel of land is assigned EBU's on the proposed EBU
rates shown below.
The EBU method is seen as the most appropriate and equitable method of spreading of benefit to
each parcel from the improvements since it is based on estimated contribution to the Plant, based
on land -use type and/or parcel size. Property within the District or Service Area is assigned to one of
the following four categories based on the land use summary provided in the table on the following
page.
Detached Residential. Parcels intended for detached residential ("SFR" or "single family") uses are
assessed 1 EBU per dwelling unit. Parcels designated as SFR land -use, once developed, will be
assessed 1 EBU per dwelling unit or lot, including vacant subdivided residential lots and vacant land
zoned for single family residential uses with a tentative or final tract map. A parcel shall be considered
developed when a building permit for new construction has been issued prior to June 1 of the
preceding fiscal year. In determining the contribution to the wastewater system for an SFR parcel,
the Los Angeles County Sanitation Districts' ("LACSD") "Loadings for Class of Land Use Table"
(Wastewater Ordinance Section 410), states the base unit of measurement for wastewater discharge
is 260 GPD. This will be the equivalent to one EBU for purposes of assigning EBU's to other land -uses.
Attached Residential — Condominiums. Parcels intended for condominium use equivalencies
("Condo") are assessed based on the number of dwelling units on each parcel and the estimated
contribution to the wastewater system for each Condo unit. Due to population density and size of
structure, relative to the typical single family residence, each dwelling unit defined as Condo is
assigned an EBU Factor of 0.75 EBU per dwelling unit. This coincides with the LACSD Loadings for
Class of Land Use Table, estimated at 195 GPD for each Condo unit. The EBU's assigned to a Condo
parcel are therefore calculated by multiplying the number of dwelling units by the EBU Factor of 0.75.
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 9
Multiple -Family Residential (Apartments). Parcels intended for multiple -family residential ("MFR"
or "Apartments") land use equivalencies are assessed based on the number of dwelling units on each
parcel and the estimated contribution to the wastewater system for each MFR unit. Due to
population density and size of structure relative to the typical single family residence, each dwelling
unit defined as MFR is assigned an EBU Factor of 0.60 EBU per dwelling unit. This coincides with the
LACSD "Loadings for Class of Land Use Table, estimated at 156 GPD for each MFR unit. The EBU's
assigned to an MFR parcel are therefore calculated by multiplying the number of dwelling units by
the EBU Factor of 0.60.
Mixed Non -Residential. Non-residential (including office space and mixed retail) land use
equivalencies are assessed based on the number of estimated square feet ("SF") of office/retail space
on each parcel and the estimated contribution to the wastewater system for per 1,000 square feet.
Based on the LACSD Loadings Table, compared to the SFR EBU factor of 1.0, non-residential parcels
are assigned an EBU factor of 0.75 per 1,000 SF (195 GPD) for office space, and 1.24 per 1,000 SF (322
GPD) for retail space, also categorized by LACSD and SCVSD as a "regional mall".
Non -Residential — Hotel. Non-residential — Hotel land use equivalencies are assessed based on the
number of rooms on the parcel and the estimated contribution to the wastewater system for each
room. Each room, also defined as units, is assigned an EBU Factor of 0.47 EBU. This is also based on
the LACSD Loadings Table, estimating 122 GPD for each hotel room. The EBU's assigned to a Hotel
parcel therefore are calculated by multiplying the number of rooms by the EBU Factor of 0.47.
Non -Residential — Restaurant. Restaurant land use equivalencies are assessed based on the number
of estimated square feet ("SF") of restaurant space on and the estimated contribution to the
wastewater system for per 1,000 square feet. Based on the LACSD Loadings Table, compared to the
SFR EBU factor of 1.0, restaurant parcels are assigned an EBU factor of 8.86 per 1,000 SF (2,305 GPD).
The development agreement does not call for a stand-alone restaurant at this time. This category is
included in case that changes in the future.
EBU Factors by Land Use
The following table is summary of the EBU Factors for each of the District or Service Area proposed
land use categories:
Land Use
EBU Factor
Single Family Residential
1.00 EBU per Dwelling Unit
Single Family Residential - Condo
0.75 EBU per Dwelling Unit
Multi -Family Residential - Apartment
0.60 EBU per Dwelling Unit
Non -Residential - Office
0.75 EBU per 1,000 SF
Non -Residential - Retail
1.24 EBU per 1,000 SF
Non -Residential - Hotel
0.47 EBU per Room
Non -Residential - Restaurant
8.86 EBU per 1,000 SF
City of Santa Clarita
September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 10
Land Use and EBU Summary
The following table provide a summary of the current land uses and assigned EBU's for purposes of
this Report and the rate calculations. Actual development may result in a different number of
dwelling units in the development. Depending upon whether there is an increase or decrease in the
number of dwelling units, the rate will be adjusted to reflect the higher or lower number of resulting
EBU's in the District or Service Area. For this reason, the rate per EBU is shown as the maximum rate.
Total District EBUs
Proposed
Approximate
Square
Description
Dwelling Units
Acres
Feet
EBUs
Single Family Res. (Detached)
120
8.00
N/A
120.00
Single Family Attached (Condos)
554
56.84
N/A
415.50
Multi -Family (Apartments)
778
17.00
N/A
466.80
Non -Residential - Office
N/A
5.00
605,400
454.05
Non -Residential - Retail
N/A
16.00
153,700
190.59
Non -Residential - Hotel
200
3.00
N/A
94.00
Non -Residential - Restaurant
N/A
-
60,000
531.60
Totall
1,652
1 105.84
1
1 2,272.54
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 11
PROPOSITION 218 PROCESS
Methodology Requirements. Sewer Service Charges must comply with the provisions of Article XIIID
of the California Constitution (Proposition 218). Section 6(b) of Proposition 218 has the following
requirements for all "new, extended, imposed or increased" fees and charges:
1) "Revenues derived from the fee or charge shall not exceed the funds required to provide the
property -related service."
2) "Revenues derived from the fee or charge shall not be used for any purpose other than that
for which the fee or charge was imposed."
3) "The amount of a fee or charge imposed upon any parcel or person as an incident of property
ownership shall not exceed the proportional cost of the service attributable to the parcel."
4) "No fee or charge may be imposed for a service unless that service is actually used by, or
immediately available to, the owner of the property in question. Fees or charges based on
potential or future use of service are not permitted. Standby charges, whether characterized
as charges or assessments, shall be classified as assessments and shall not be imposed
without compliance with [the assessment section of Proposition 218]."
5) "No fee or charge may be imposed for general governmental services including, but not
limited to, police, fire, ambulance or library services where the service is available to the
public at large in substantially the same manner as it is to property owners."
Establishment Requirements. All new or increased fees and charges now require a public hearing
process with mailed notices to all affected property owners. If a majority of the affected properties
submit written protests, then the fee or charge may not be imposed.
The City will create a schedule of rate increases for a five (5) year period by adopting a resolution
approving said rate increases, which creates a Maximum Rate for each subsequent fiscal year. In
order to impose an increase above the established Maximum Rate for a given year, the City must
conduct a protest hearing to receive property owner approval of the proposed rate increase, as
described above. After the 5 year period has ended, the City may continue to charge the Maximum
Rate established in the final fiscal year as shown on the approved schedule of rate increases.
Attachment A
City of Santa Clarita
Sewer Rate Analysis
Pro -Forma - Operating Fund (Fiscal Years)
Line (2018/19) (2019/20) (2020/21) (2021/22) (2022-23) (2023-24) (2024-25) (2025-26) (2026-27) (2027-28) (2028-29) (2029-30) (2030-31) (2031-32)
No. 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
1 Beginning Cash Balance Operating Fund
2
3 REVENUES
4 Operating Revenue at Existing Rates (1)
5 Standby charges
6 Sewer charges
7 Total Sewer Charges Revenue
8
9 Other Revenue
10 Interest Income (2)
11 Treated Water Sales (3)
12 Credit from LACSD (3)
13 Reimbursement from LACSD (3)
14 Total Other Revenue
15
16 Subtotal Revenues
17
18 Additional Rate Revenues (4)
19 Fiscal % of Sewer Months
20 Year Sales Revenue Effective
21
2018-19
$
0.0%
$
12
22
2019-20
$
5.0%
$
12
23
2020-21
$
5.0%
$
12
24
2021-22
$
5.0%
$
12
25
2022-23
$
5.0%
$
12
26
2023-24
942,320
0.0%
650,870
12
27
2024-25
224,160
0.0%
103,690
12
28
2025-26
-
0.0%
-
12
29
2026-27
-
0.0%
-
12
30
2027-28
-
0.0%
-
12
31
2028-29
0.0%
12
32
2029-30
0.0%
12
33
2030-31
0.0%
12
34
2031-32
0.0%
12
35
2032-23
0.0%
12
35
Total Additional Revenue
Required
36
1,023,700
$
1,023,690
$
1,023,690
36
Total Revenues
$
1,023,700
$
2018-2032
(2032-33) Avg Annual
2032 Growth
$
-
$
121,110
$
265,964
$
436,102
$
638,008
$
873,363
$
1,081,736
$
1,254,976
$
1,391,856
$
1,491,126
$
1,551,486
$
1,571,596
$
1,550,086
$
1,485,526
$
1,376,446
N/A
$
942,320
$
650,870
$
399,220
$
224,160
$
103,690
$
59,070
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
N/A
81,380
372,820
624,470
799,540
920,010
964,620
1,023,700
1,023,700
1,023,700
1,023,700
1,023,700
1,023,700
1,023,700
1,023,700
1,023,700
N/A
$
1,023,700
$
1,023,690
$
1,023,690
$
1,023,700
$
1,023,700
$
1,023,690
$
1,023,700
$
1,023,700
$
1,023,700
$
1,023,700
$
1,023,700
$
1,023,700
$
1,023,700
$
1,023,700
$
1,023,700
N/A
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
0.00%
83,887
86,820
89,860
93,010
96,270
99,640
103,130
106,740
110,480
114,350
118,350
122,490
126,780
131,220
135,810
3.50%
-
3,204
6,408
14,486
22,565
30,643
31,720
32,830
33,980
35,170
36,400
37,670
38,990
40,350
41,760
0.00%
30,000
31,050
32,140
33,260
34,420
35,620
36,870
38,160
39,500
40,880
42,310
43,790
45,320
46,910
48,550
3.50%
$
113,887
$
121,074
$
128,408
$
140,756
$
153,255
$
165,903
$
171,720
$
177,730
$
183,960
$
190,400
$
197,060
$
203,950
$
211,090
$
218,480
$
226,120
5.02%
$
1,137,587
$
1,144,764
$
1,152,098
$
1,164,456
$
1,176,955
$
1,189,593
$
1,195,420
$
1,201,430
$
1,207,660
$
1,214,100
$
1,220,760
$
1,227,650
$
1,234,790
$
1,242,180
$
1,249,820
0.67%
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
N/A
51,180
51,180
51,190
51,190
51,180
51,190
51,190
51,190
51,190
51,190
51,190
51,190
51,190
51,190
N/A
53,740
53,740
53,740
53,740
53,740
53,740
53,740
53,740
53,740
53,740
53,740
53,740
53,740
N/A
56,430
56,430
56,430
56,430
56,430
56,430
56,430
56,430
56,430
56,430
56,430
56,430
N/A
59,250
59,250
59,250
59,250
59,250
59,250
59,250
59,250
59,250
59,250
59,250
N/A
-
-
-
-
-
-
-
-
-
-
N/A
-
-
N/A
-
-
-
N/A
-
-
-
-
N/A
-
-
-
-
N/A
-
-
-
-
N/A
-
-
-
-
N/A
-
-
-
N/A
-
-
N/A
-
N/A
$
$
51,180
$
104,920
$
161,360
$
220,610
$
220,600
$
220,610
$
220,610
$
220,610
$
220,610
$
220,610
$
220,610
$
220,610
$
220,610
$
220,610
N/A
$ 1,137,587 $ 1,195,944 $ 1,257,018 $ 1,325,816 $ 1,397,565 $ 1,410,193 $ 1,416,030 $ 1,422,040 $ 1,428,270 $ 1,434,710 $ 1,441,370 $ 1,448,260 $ 1,455,400 $ 1,462,790 $ 1,470,430 1.85%
1600623001-002 9/17/2017 Page 1 oft
Attachment A
City of Santa Clarita
Sewer Rate Analysis
Pro -Forma - Operating Fund (Fiscal Years)
2018-2032
Line (2018/19) (2019/20) (2020/21) (2021/22) (2022-23) (2023-24) (2024-25) (2025-26) (2026-27) (2027-28) (2028-29) (2029-30) (2030-31) (2031-32) (2032-33) Avg Annual
No. 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Growth
37 EXPENSES
37 Operating Expense (5)
38 Fixed O&M
38 Variable O&M
39 Fixed Power
40 Variable Power ($/kWh)
41 Water Quality Monitoring
42 Subtotal Operating Costs
43
44 Administrative Costs (6)
45 Total Operating Expense
46
47 Renewal & Replacement (R&R) (7)
48
49 Contingency Reserve (8)
50
51 Total Expenses
52
53 Net Operations (9)
54
55 Revenue Requirement (10)
56
57 Ending Cash Balance Operating Fund (11)
58 Target Ending Balance (12)
59
60 DAYS OF O&M (13)
61 TARGET DAYS OF O&M (12)
62 OVER/(UNDER)
63
64
65 Notes:
$ 366,276 $
379,100 $
392,370 $
406,100 $
420,310 $
435,020 $
450,250 $
466,010 $
482,320 $
499,200 $
516,670 $
534,750 $
553,470 $
30,936
32,020
33,140
34,300
35,500
36,740
38,030
39,360
40,740
42,170
43,650
45,180
46,760
9,672
10,060
10,460
10,880
11,320
11,770
12,240
12,730
13,240
13,770
14,320
14,890
15,490
87,120
90,600
94,220
97,990
101,910
105,990
110,230
114,640
119,230
124,000
128,960
134,120
139,480
114,626
118,640
122,790
127,090
131,540
136,140
140,900
145,830
150,930
156,210
161,680
167,340
173,200
572,840 $
48,400
16,110
145,060
179,260
592,890
50,090
16,750
150,860
185,530
$ 608,630 $
630,420 $
652,980 $
676,360 $
700,580 $
725,660 $
751,650 $
778,570 $
806,460 $
835,350 $
865,280 $
896,280 $
928,400 $
961,670 $
996,120
$ 117,954
122,080
126,350
130,770
135,350
140,090
144,990
150,060
155,310
160,750
166,380
172,200
178,230
184,470
190,930
$ 726,584 $ 752,500 $ 779,330 $ 807,130 $ 835,930 $ 865,750 $ 896,640 $ 928,630 $ 961,770 $ 996,100 $ 1,031,660 $ 1,068,480 $ 1,106,630 $ 1,146,140 $ 1,187,050
$ 289,894 $ 298,590 $ 307,550 $ 316,780 $ 326,280 $ 336,070 $ 346,150 $ 356,530 $ 367,230 $ 378,250 $ 389,600 $ 401,290 $ 413,330 $ 425,730 $ 438,500
$ 1,016,478 $ 1,051,090 $ 1,086,880 $ 1,123,910 $ 1,162,210 $ 1,201,820 $ 1,242,790 $ 1,285,160 $ 1,329,000 $ 1,374,350 $ 1,421,260 $ 1,469,770 $ 1,519,960 $ 1,571,870 $ 1,625,550
$ 121,109 $ 144,854 $ 170,138 $ 201,906 $ 235,355 $ 208,373 $ 173,240 $ 136,880 $ 99,270 $ 60,360 $ 20,110 $ (21,510) $ (64,560) $ (109,080) $ (155,120)
$ 1,023,691 $ 1,074,870 $ 1,128,610 $ 1,185,060 $ 1,244,310 $ 1,244,290 $ 1,244,310 $ 1,244,310 $ 1,244,310 $ 1,244,310 $ 1,244,310 $ 1,244,310 $ 1,244,310 $ 1,244,310 $ 1,244,310
$ 121,109 $ 265,964 $ 436,102 $ 638,008 $ 873,363 $ 1,081,736 $ 1,254,976 $ 1,391,856 $ 1,491,126 $ 1,551,486 $ 1,571,596 $ 1,550,086 $ 1,485,526 $ 1,376,446 $ 1,221,326
$ 121,100 $ 247,400 $ 384,330 $ 398,040 $ 412,240 $ 426,950 $ 442,180 $ 457,950 $ 474,300 $ 491,230 $ 508,760 $ 526,920 $ 545,740 $ 565,220 $ 585,390
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
61
129
204
289
381
456
511
547
566
569
556
530
490
438
376
60
120
180
180
180
180
180
180
180
180
180
180
180
180
180
1
9
24
109
201
276
331
367
386
389
376
350
310
258
196
66 (1) Assumes existing rates are those set in 2018; total ERUs are the same each year, split between standby and sewer (occupied) customers.
67 (2) Conservatively assumed to be zero.
68 (3) The City and CLWA are finalizing an Agreement where CLWA will purchase 439.20 AFY from the Plant at a rate of $191.00 per AF or $83,887 per year.
69 The Plant will also treat existing sewer flows off the Vista Canyon project site. City will be reimbursed from LACSD at $30,000 per year.
70 The City will be reimbursed for use of treated water by LACSD starting in year 2 and ramping up to $30,643 per year in year 6.
71 (4) Annual rate increases are assumed to take place on January 1st of a given year. City assumes 5% per year through FY 2022.
72 (5) Escalated using general escalator of 3.5% and power escalator of 4.0%.
73 (6) Administrative Costs provided by the City; escalated at general inflation each year.
74 (7) R&R annual expense assumptions per Zimmerman Group; held as a separate fund.
75 (8) No additional contingency reserves are assumed for this analysis.
76 (9) Net Operations equal Total Revenues less Total Expenses.
77 (10) Revenue Requirements equals Total Expenses plus Net Operations less Other Revenue.
78 (11) Equals Net Operations plus Total Expenses less Other Revenues.
79 (12) Target is to build up to 180 days of O&M by 2020. Subsequent years' ending balances show significant level of potential reserves for forecasting purposes only.
80 City will set rates based on actual needs in years beyond 2018.
81 (13) Equals Ending Balance divided by Total Operating Expenses divided by 365 days.
3.50%
3.50%
4.00%
4.00%
3.50%
3.58%
3.50%
3.00%
N/A
3.41%
N/A
1.40%
N/A
N/A
N/A
N/A
N/A
1600623001-002 9/17/2017 Page 2 oft
City of Santa Clarita September 26, 2017
Wastewater Sewer Charges (Vista Canyon) Page 12
ATTACHMENT B
SERVICE AREA DIAGRAM
CITY OF SANTA CLARITA
WASTEWATER USER FEE
(VISTA CANYON)
Los Angeles County Parcel Numbers
APN 2840-002-270(por)
APN 2840-004-009
APN 2840-004-017
APN 2840-004-021(por)
APN 2840-004-036(por)
EL Harris & Associates
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71
Los Angeles County Parcel Numbers
APN 2840-002-270(por)
APN 2840-004-009
APN 2840-004-017
APN 2840-004-021(por)
APN 2840-004-036(por)
EL Harris & Associates