HomeMy WebLinkAbout59-22RESOLUTION 59-22
RESOLUTION OF THE CITY COUNCIL
OF THE TOWN OF LOS ALTOS HILLS
INCREASING SEWER SERVICE CHARGES IN BOTH THE PALO ALTO AND LOS
ALTOS SEWER BASINS
WHEREAS, pursuant to the Los Altos Hills Municipal Code and state law, the Town imposes
sewer service charges on users of the Town's public wastewater collection, transmission and
disposal system. The purpose of these charges is to generate sufficient revenues to: pay the
annual cost of administering, operating and maintaining the Town's wastewater collection
system, pay the charges levied by the City of Los Altos and the City of Palo Alto for sewage
transmission, treatment, and disposal services, develop sufficient reserves to fund needed
improvements to the Town's system and to provide for unforeseen emergencies, and pay for
other lawful obligations and expenses of the Town;
WHEREAS, the Town retained the services of HF&H Constultants, LLC (HF&H) to prepare an
analysis of the adequacy of the Town's existing sewer service charges. HF&H completed a
study recommending increases in the Town's existing sewer service charges in order to cover the
Town's obligations, costs, and expenses relating to the wastewater collection system. The Town
Council preliminarily approved and adopted the study at its meeting on March 17, 2022; and
WHEREAS, the basis upon which the amount of the fee or charge was calculated is the
following: The Sewer Fund is an Enterprise Fund that is self-supporting activity and which
provides service on a user charge basis to residences and businesses. Sewer Service Charges are
set to recover revenues sufficient to adequately fund sewer utility operations, maintenance, and
capital replacement expenditures, while keeping rates as competitive as possible and maintaining
a prudent level of reserves. The charge is for a "Unit of Service" and is the basic charge for
treating wastewater for the typical single-family residence; and
WHEREAS, the Town has compiled with all legal requirements in adopting the sewer service
charge, including, but not limited to, California Constitution Article XIIID, Section 6. The Town
provided 45 days mailed notice to the parcel owners that would be subject to the increased rates,
of a public hearing to consider the proposed sewer service charge rates and to receive protests
against the proposal. The public hearing was held on May 25, 2022. The Town Council heard
and considered any objections or protests at the hearing. A majority of owners of parcels did not
submit written protests against the proposed sewer service charge rates at the public hearing; and
WHEREAS, the Town's sewer service charge rates were last adjusted approximately 7 years
ago. Since that time, the costs of maintaining the Town's collection system has substantially
increased, necessitating a rate increase. Additionally, the Town anticipates increased spending
on capital improvement projects over the next several years. Without the proposed rate
increases, the Town's sewer fund would not have sufficient revenues in future years to meet
operating expenses and capital obligations; and
Resolution 59-22 Page 1
WHEREAS, the Town Council finds and determines that this action is exempt from the
California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15273
since the action is the adoption of a fee or charge for the purposes set forth in that section.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the Town of Los Altos Hills
does resolve as follows:
The annual sewer service charge in both the Palo Alto and Los Altos sewer basins shall be
$1,643 for FY 2022/23, $1,742 for FY 2023/24, $1,846 for FY 2024/25, $1,957 for FY
2025/26 and $2,035 for FY 2026/27 per single-family dwelling equivalent, until amended by
subsequent Town action.
2. The City Clerk is directed to file with the County the information required by Los Altos
Hills Municipal Code section 6-4.309.
3. If the sewer service charge established in this Resolution is invalidated, the sewer service
charges in effect prior to the adoption of this Resolution shall be in effect.
The above and foregoing resolution was passed and adopted by the City Council of the Town of
Los Altos Hills at a special meeting held on the 25th day of May 2022 by the following vote:
AYES: Tyson, Tankha, Mok, Schmidt, Swan
NOES: None
ABSTAIN: None
ABSENT: None 4L_ BY:
George Ty, n, Ma r
ATTEST:
eborah Padovan, City Clerk
Resolution 59-22 Page 2