2020 Dec 15 - CC PACKETAGENDA
EL SEGUNDO CITY COUNCIL
6:00 PM Regular Session
December 15, 2020
DUE TO THE COVID-19 EMERGENCY, THIS
MEETING WILL BE CONDUCTED PURSUANT TO THE
GOVERNOR'S EXECUTIVE ORDER N-29-20.
TELECONFERENCE VIA ZOOM MEETING
MEETING ID: 958 0087 7026
PASSCODE/PIN: 252597
PUBLIC ADVISORY.-
THE
DVISORY.THE CITY COUNCIL CHAMBER WILL NOT BE OPEN TO THE PUBLIC
How Can Members of the Public Observe and Provide Public Comments?
• Residents can watch the meeting live via Spectrum Channel 3 and 22, AT&T U -
Verse Channel 99 and/or EI Segundo TV at YouTube.com.
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public communications
■ For Public Hearings: written communications will be accepted both before the
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PUBLICCOMMUNICATIONS@elsegundo.org.
■ All written communication, documents, email addresses of attendees captured by
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Additional Information:
The City Council, with certain statutory exceptions, can only take action upon properly posted and listed
agenda items. Any writings or documents given to a majority of the City Council regarding any matter on
this agenda that the City received after issuing the agenda packet are available for public inspection in
the City Clerk's office during normal business hours. Such Documents may also be posted on the City's
website at www.elsegundo.org and additional copies will be available at the City Council meeting.
Unless otherwise noted in the Agenda, the Public can only comment on City -related business that is
within the jurisdiction of the City Council and/or items listed on the Agenda during the Public
Communications portions of the Meeting. Additionally, the Public can comment on any Public Hearing
item on the Agenda during the Public Hearing portion of such item. The time limit for comments is five (5)
minutes per person.
Before speaking to the City Council, please state: Your name and residence and the organization you
represent, if desired. Please respect the time limits.
In compliance with the Americans with Disabilities Act, if you need special assistance to
participate in this meeting, please contact City Clerk, 524-2305. Notification 48 hours prior to the
meeting will enable the City to make reasonable arrangements to ensure accessibility to this
meeting.
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, DECEMBER 15, 2020 - 6:00 P.M.
REGULAR SESSION
CALL TO ORDER
INVOCATION — Father Alexei Smith, St. Andrew Russian Greek Catholic Church
PLEDGE OF ALLEGIANCE — Council Member Pirsztuk
ROLL CALL
PUBLIC COMMUNICATIONS — (Related to Citv Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have received value of $50 or more to communicate
to the City Council on behalf of another, and employees speaking on behalf of their employer, must so
identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to
take action on any item not on the agenda. The Council will respond to comments after Public
Communications is closed.
CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications
SPECIAL PRESENTATIONS:
a) Recognition — Fire Department
b) Recognition — Community Services Department
c) Recognition — Frank Maranto, Mattel
d) Holiday Events Update
e) COVID-19 Update
6
E
PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the
Agenda by title only.
Recommendation — Approval.
A. CONSENT CALENDAR
1. Approve Regular and Special City Council Meeting Minutes of December 1,
2020.
2. Approve warrant numbers 3033679 - 3033748 and 9001730 — 9001730 on
Register No. 4b in the total amount of $89,183.52 and wire transfers from
11/16/2020 through 11/22/2020 in the total amount of $382,132.47. Approve
warrant numbers 3033749 — 3033816 and 9001731 on Register No. 5a in the
total amount of $294,040.04 and wire transfers from 11/23/2020 through
11/29/2020 in the total amount of $695,167.71. Approve warrant numbers
3033817 — 3033877 and 9001732 — 9001774 on Register No. 5b in the total
amount of $362,149.24 and wire transfers from 11/30/20 through 12/06/20 in the
total amount of $63,775.43.
3. Adopt proposed resolution to vacate the public water line service easement at
2000 EI Segundo Boulevard.
4. Adopt Resolution approving plans and specifications for FY 20/21 Pavement
Rehabilitation and authorize staff to advertise project for construction bids.
(Project No. PW 21-01)
5. Approve an amendment to Agreement No. 5853 with Lionakis, an architecture
design firm, for an additional $14,300 to increase total contract amount from
$48,000 to $62,300 for design service, adopt resolution approving Plans and
Specifications for City Hall Window Replacement Project and authorize staff to
advertise project for construction bids.
6. Adopt Resolution to approve the amended Part-time/Hourly Classifications
Salary Schedule to meet state requirements.
7. Direct staff to open the recruitment process for positions on the Committees,
Commissions and Boards
B. PUBLIC HEARINGS
C. STAFF PRESENTATIONS
8. Ratify amendment to Administrative Order #2.
3
3
9. Review of water and wastewater rate studies, direct staff to commence with
Proposition 218 protest procedures regarding proposed water and sewer rates
for FY 2020-2021 through 2024-2025, adopt a resolution establishing
procedures for mailing, handling and counting Proposition 218 ballots and set a
public hearing for February 16, 2021 to consider an ordinance increasing water
and wastewater rates and fees.
D. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS
10. Receive and file Arts and Culture Advisory Committee Report including: FY
2019-2020 Accomplishments, ACC Workflow Realignment and FY 2020-2021
Work Plan and direct ACC to implement FY 2020-2021 Work Plan.
E. REPORTS — CITY CLERK
F. REPORTS — CITY TREASURER
G. REPORTS — COUNCIL MEMBERS
Council Member Giroux —
Council Member Nicol -
Council Member Pirsztuk -
Mayor Pro Tem Pimentel —
Mayor Boyles —
H. REPORTS — CITY ATTORNEY
I. REPORTS/FOLLOW-UP — CITY MANAGER
CLOSED SESSION
The City Council may move into a closed session pursuant to applicable law, including the Brown Act
(Government Code Section §54960, et seq.) for the purposes of conferring with the City's Real Property
Negotiator, and/or conferring with the City Attorney on potential and/or existing litigation; and/or
discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with
the City's Labor Negotiators.
REPORT OF ACTION TAKEN IN CLOSED SESSION (if required)
MEMORIAL — George Hoopes and Henry Arredondo
ADJOURNMENT
4
n
POSTED:
DATE:
BY:
TIME:
December 11, 2020
Tracy Weaver
9:30AM
PLACE HOLDER
SPECIAL PRESENTATIONS:
a) Recognition — Fire Department
PLACE HOLDER
SPECIAL PRESENTATIONS:
b) Recognition — Community Services Department
PLACE HOLDER
SPECIAL PRESENTATIONS:
c) Recognition — Frank Maranto, Mattel
PLACE HOLDER
SPECIAL PRESENTATIONS:
d) Holiday Events Update
PLACE HOLDER
SPECIAL PRESENTATIONS:
e) COVID-19 Update
10
MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, DECEMBER 1, 2020-4:00 PM
This meeting was conducted virtually via Zoom conferencing and ran
simultaneously with the 3:00 PM Special Closed Session
CALL TO ORDER — Virtually by Mayor Boyles at 4:00 PM
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tem Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) None
SPECIAL ORDER OF BUSINESS:
Mayor Boyles announced that Council would be meeting in closed session pursuant to
the items listed on the Agenda.
CLOSED SESSION:
The City Council may move into a closed session pursuant to applicable law, including
the Brown Act (Government Code Section §54960, et seq.) for the purposes of
conferring with the City's Real Property Negotiator; and/or conferring with the City
Attorney on potential and/or existing litigation; and/or discussing matters covered under
Government Code Section §54957 (Personnel); and/or conferring with the City's Labor
Negotiators; as follows:
CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION
Existing Litigation pursuant to Government Code §54956.9 (d)(4): -3- matters.
1. Scott O'Connor (City Police Officer) v. City of EI Segundo, United States District
Court (Central District of California), Civil Case No. 2:20 -CV -0311 DMG (PLAx)
2. Joseph Cameron (Former City Police Officer) v. City of EI Segundo, United
States District Court (Central District of California), Civil Case No. 2:20 -CV -
04689, JFF-JCx
3. James Tulette (City Fire Fighter) v. City of EI Segundo, Los Angeles Superior
Court, Case No. 205T, CV44025
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Anticipated litigation pursuant to Government Code Section 54956.9(d)(4) -3- matters.
MINUTES OF REGULAR COUCIL MEETING
DECEMBER 1, 2020
PAGE 1
11
1. Andrew McEntyre (City Police Officer) v. City of EI Segundo (Government Code
Liability Claim filed by Andrew Mc Entyre)
2, Scott Martinez (City Fire Fighter) v. City of EI Segundo (Government Code
Liability Claim filed by Scott Martinez)
3. Potential Liability to City based upon facts and circumstance unknown to
potential claimant
CONFERENCE WITH LEGAL COUNSEL — INITIATION OF LITIGATION
Initiation of litigation pursuant to Government Code Section 54956.9(4) -1- matter
ADJOURNED at 5:23 PM
Tracy Weaver, City Clerk
MINUTES OF REGULAR COUCIL MEETING
DECEMBER 1, 2020
PAGE 2
12
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, NOVEMBER 3, 2020 - 6:00 P.M.
This meeting was conducted virtually via Zoom conferencing
CALL TO ORDER - Virtually by Mayor Boyles at 6:OOPM
INVOCATION — Pastor Wes Harding, The Bridge Church
PLEDGE OF ALLEGIANCE — Mayor Pro Tem Pimentel
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tem Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) None
Chris Eidem, resident, commented on the need to renovate the Skate Park located at
the EI Segundo Teen Center.
CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications)
Scott Mitnick, City Manager, addressed the Skate Park comment and how the Skate
Park relates to the needs assessment RFP for the Teen Center.
SPECIAL PRESENTATIONS:
a) Holiday Events Update given by Ryan Delgado, Recreation and Parks
Supervisor.
b) COVID-19 Update and Council direction re latest information available re City
residents, business and facilities given by Randy Collins, Emergency Manager
Coordinator. Council commented on the current County Orders.
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title
only.
MOTION by Council Member Giroux, SECONDED by Council Member Pirsztuk to read
all ordinances and resolutions on the agenda by title only. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
B. CONSENT CALENDAR
Approve Regular City Council Meeting Minutes of November 17, 2020,
MINUTES OF REGULAR COUCIL MEETING
DECEMBER 1, 2020
PAGE 3
13
2. Approve warrant numbers 3033578 thru 303678 on Register No. 4a in the total
amount of $758,140.37 and wire transfers from 11/09/2020 through 11/15/2020
in the total amount of $2,924,938.37.
3. Accept the EI Segundo Police Department Firing Range Remodel as complete,
authorize the City Clerk to file a Notice of Completion with the County Recorder's
Office and authorize an increase in construction contingencies from $24,500 to
$29,716.39, an increase of $5,216.93. Project No. PW 19-26
(Fiscal Impact: $274,716.39)
4. Adopt an ordinance NO. 1621 to amend Development Agreement No. DA 03-01
(8th Amendment No. 5436A) for the Plaza EI Segundo and The Point
development projects (located at the northeast corner of Pacific Coast Highway
and Rosecrans Boulevard) to increase the allowed percentage of non -sales tax
generating uses to 40 percent.
(Fiscal Impact: Potential for a reduction in sales tax generated from the subject
property that may be somewhat offset by an increase in the Business license Tax
generated)
MOTION by Council Member Giroux, SECONDED by Council Member Nicol, approving
Consent Agenda items 1, 2, 3 and 4. MOTION PASSED BY UNANIMOUS VOICE
VOTE. 5/0
C. PUBLIC HEARINGS: None
D. STAFF PRESENTATIONS: None
E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS: None
F. REPORTS — CITY CLERK —
5. Approve proposed 2021 City Council meeting calendar
(Fiscal Impact: None)
Council Discussion
MOTION by Mayor Pro Tem Pimentel, SECONDED by Council Member Pirsztuk,
approving 2021 City Council meeting calendar. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 5/0
G. REPORTS — CITY TREASURER — Passed
H. REPORTS — COUNCIL MEMBERS
6. Receive and file Ad Hoc Pension Committee Update Report and direct staff to
begin process to issue Pension Obligation Bonds (POBs) at 95% of the CalPERS
Unfunded Actuarial Liability (UAL) at time of issuance in order to maximize the
present value savings to take advantage of historically low interest rates.
MINUTES OF REGULAR COUCIL MEETING
DECEMBER 1, 2020
PAGE 4
14
(Fiscal Impact: Issuance of POBs to pay down the current UAL of $151,300.00 is
estimated to save the City approximately $55,000.00 (present value) in person
amortization cash payments over the next 20 years, with an average recurring
annual savings of $2,750,000.00. Approximately 95% of recurring savings will
take place within the General Fund)
Scott Mitnick, City Manager introduced the item.
Mayor Pro Tem Pimentel and Council Member Nicol, Ad Hoc Pension Committee
members, reported on the item.
Joe Lillio, Chief Financial Officer, gave a presentation and answered questions.
Mark Young, Managing Director at KNN Public Finance, commented and answered
questions.
Council Discussion
Council consensus to receive and file report
MOTION by Council Member Pirsztuk, SECONDED by Mayor Boyles, directing staff to
begin the process of issuing Pension Obligation Bonds (POBs) (at a percentage to be
determined) of the CalPERS Unfunded Actuarial Liability (UAL) at time of issuance in
order to maximize the present value savings. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 5/0
Council Member Giroux — Passed
Council Member Nicol — Passed
Council Member Pirsztuk — Passed
Mayor Pro Tem Pimentel — Passed
Mayor Boyles —
I. REPORTS — CITY ATTORNEY — Passed
J. REPORTS/FOLLOW-UP — CITY MANAGER — Stated the next Council
meeting will be December 15, 2020.
MEMORIAL — None
ADJOURNED at 7:46 PM
Tracy Weaver, City Clerk
MINUTES OF REGULAR COUCIL MEETING
DECEMBER 1, 2020
PAGE 5
15
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, DECEMBER 1, 2020 — 3:00 PM
This meeting was conducted virtually via Zoom conferencing and ran
simultaneously with the 4:00 PM Regular Closed Session
CALL TO ORDER — Virtually by Mayor Boyles at 3:02 PM
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tem Pimentel _
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATION — (Related to.City Business Only — 5 minute limit per
person, 30 minute limit total) None
SPECIAL ORDER OF BUSINESS:
Mayor Boyles announced that Council would be meeting in closed session pursuant to
the items listed on the Agenda.
CLOSED SESSION:
The City Council may move into a closed session pursuant to applicable law, including
the Brown Act (Government Code Section §54960, et seq.) for the purposes of
conferring with the City's Real Property Negotiator; and/or conferring with the City
Attorney on potential and/or existing litigation; and/or discussing matters covered under
Government Code Section §54957 (Personnel); and/or conferring with the City's Labor
Negotiators; as follows:
CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION
Existing Litigation pursuant to Government Code §54956.9 (d)(4): -3- matters.
1. Scott O'Connor (City Police Officer) v. City of EI Segundo, United States District
Court (Central District of California), Civil Case No. 2:20 -CV -0311 DMG (PLAx)
2. Joseph Cameron (Former City Police Officer) v. City of EI Segundo, United
States District Court (Central District of California), Civil Case No. 2:20 -CV -
04689, JFF-JCx
3. James Tulette (City Fire Fighter) v. City of EI Segundo, Los Angeles Superior
Court, Case No. 205T, CV44025
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
MINUTES OF SPECIAL COUCIL MEETING
DECEMBER 1, 2020
PAGE 1
16
Anticipated litigation pursuant to Government Code Section 54956.9(d)(4) -3- matters.
1. Andrew McEntyre (City Police Officer) v. City of EI Segundo (Government Code
Liability Claim filed by Andrew Mc Entyre)
2, Scott Martinez (City Fire Fighter) v. City of EI Segundo (Government Code
Liability Claim filed by Scott Martinez)
3. Potential Liability to City based upon facts and circumstance unknown to
potential claimant
CONFERENCE WITH LEGAL COUNSEL — INITIATION OF LITIGATION
Initiation of litigation pursuant to Government Code Section 54956.9(4) -1- matter
ADJOURNED at 5:23 PM
Tracy Weaver, City Clerk
MINUTES OF SPECIAL COUCIL MEETING
DECEMBER 1, 2020
PAGE 2
17
IN
CITY OF EL SEGUNDO
WARRAWfS TOTALS BY FUND
3033678 • 3033746
DATE OF APPROVAL:
6001730
on
GENERAL FUND
74,513.31
104
TRAFFIC SAFETY FUND
-
106
STA1E GAS TAIL FUND
Ia6
ASSOCIATED RECREATION ACTNYTtES FUND
In
ASSET F ORFF1T1IRI: F UNC,
676,66
111
COMM. REVEL BLOCK GRANT
-
112
PROP •,VTRANSPORTATMN
e1e
F•isnv•c- T1tw;ro.?1ATION
115
AIR QUALM 0114ESTMENT PROGRAM
-
116
ROME SOUND INSTALLATWN FUND
117
kY E RI Ort w I z RT1 ON FZ-'ND
Ifo
TDA ARTICLE 3- SB 621 BIKEWAY FUND
-
119
MTA GRANT
-
121
FEMA
120
O.O.P.& FUND
-
122
L A.W.A. FUND
-
m
PSAF PROPERTY TAK PUBLIC SAFETY
124
FEDERALGRIANTS
-
128
STATE GRANT
99,00
126
AIPCUPAProyam NA~ftchAr9e
.
$ao
AFFORDABLE HOUSING
ISNOO
171
COUNTY STORM WATER PROGRAM
-
202
ASSES.9MENTD16TRICTI73
301
CAPITALIMPROVEMEN7 FUND
302
INFRASTRUCTURE REPLACEMENT FUND
e0S
FACkUYIESLNVPRENANCE
501
WATERUTHMPUND
S,59S.10
502
WASTEWATER FUND
6,469.73
503
GOLFCOIMSEFUND
505
SOUOWASTE
-
sol
EQUIPMENT REPLACEMENT
-
$02
LABILITY INSURANCE
Cg3
WORKERS COMP, RESERVENGURANCE
-
701
RETSIEDEMP.RAURANCE
702
E%r-OWA9IE TRU S" FUN 11- 0E%LFLLAER Ff., $
703
cvecwnAwc TRUST FUND -OTHER
708
OUTSIDE SERVICES TRUST
TOTALWARRANTB
i
69,163,52
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
Informl0 m on acetal aspendilums is available in the Dkeelor of Finame'f o1RCe in =m
City of EI Segundo,
1 wlify as 10 the stewaq of the Demands and the a ra•iai:itii y of fund for paImo rn 1 areroof
For Appmv rt: Regular Checks haft for City eolanca aulurkaliem M role eso.
CODES:
R= CompWar 1lelaatell dwrAs for all nowenergancVurgency PsyFnams lar malaiah, supplies And
Gomm in aepp00 of Cdy Operations
Fen RatirwAliolr.
A = Payroll and Employee Soman checks
VDIO CHECKS DVE TO ALIGNMENT:
NIA
A9 OF 12MIJO
VOID CHECKS DUE TO INCORRECT CHECK DATLA;
"a CHECKS CMTO COMPUTER ZDI'MARE ERRDIL-
S-F. Con"der6anermed Early Raleaaa disbtraemenls andror adjuslmads appoved by the City
Manager. Sud1 as: payments far Wilily sarvicos, Petty cash end ampFoyea 1rmvel aspmne NOTES
raknalrsamelxs, UWX= refunds, Contract emp" sarvcos consislam with current wnuaelUsl
agreem els. instances whore prompt Payment dlseoalls can be obtained oriole paymed penalties
H- 1pCan be avoided or when a sih"m ureses Gal On C* Manager approve 1
Har4o*m Earfy Rekasa d1abursonanls wW r ad WA"s approved byam OyAlanoger. 1
FINANCE DIRECTOR Dlpimayaignedbylaseph Lelia CITY MANAGER ,
DPi m:Joupr, Ulw -c-"fn
DATE Joseph Lillio lrgunCaPvlrctro dFaanre.
ema4.i:.H,ogrckrgcrndougl•uS r
11-24-2020 D.W2020AI.2e12U324 oeos f
N
REGISTER / ah
CITY OF EL SEGUNDO
PAYMENTS BY VIVRE TRANSFER
11/16/20 THROUGH 11122120
Date
Payee
Description
11116/2020
IRS
273,689.30
Federal 941 Deposit
11/16/2020
Employment Development
4,200.94
State SDI payment
11/16/2020
Employment Development
64,333.96
State PIT Withholding
11/16/2020
Unum
632.40
Long Term Care Premium - Dec.
11/17/2020
ExpertPay
2,081.51
EFT Child support payment
11/19/2020
Lane Donovan Golf Ptr
19,248.13
Payroll Transfer
11109/20-11/15120
Workers Comp Activity
17,946.23
SCRMA checks issued
11/09120-11115120
Liability Trust - Claims
0.00
Claim checks issued
11109120-11115/20
Retiree Health Insurance
0.00
Health Reimbursment checks issued
382,132.47
DATE OF RATIFICATION: 11/19/20
TOTAL. PAYMENTS BY WIRE:
Certified as to the accuracy of the wire trra%nsfers by: l
Depute Treasu r II / Date
y City D,gltelly ilgnml hylnscph !!IIID
Joseph Lillio°"p'0" °.°ryoa�do.
11-24-2020
DAII. POIIclugvWo-' 'OV
a.i. �07o I a.te u�los� �aa'ao'
Director of Filance
0), � - NA
City Mager
Date
Z
Dat
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
382,132.47
PACKV TreasureAVTire Transferslwire Transfers 10.01-20 to 6-30-21 11/19120219111
N
O
3038749 - 3037810
9001731
M imil". SNOT A7: Oey ""LL lw 41110Y ser. -.cel. iWty cash Dr•d amp:oyao lydAj o ",le
001
GENEmFUNO
104
TRAFFICSAFETYFUND
106
NATE GAS TAIL FUND
101
ASSOCIATED RECREATKINACTIIATE:S FUND
109
ASSET FOAFSITURO FUND
ftl
COMM, REVEL. BLOCK GRANT
*12
PROP W TRANSPORTATKNi
114
PROPICTRANSPORTATION
115
N R a ll• L17v PJVE_7 M E HT PROGgA,t
711
HOME SOUND INSTALLATION FIND
117
HYPERION LIRISATKX4 FUND
711
TOA ARTICLE3- 5012t BetEWAY FUND
119
MTAORANT
12f
FEMA
120
C.O.P.S. FUND
122
U1.WJL FUND
128
PSAP PROPERTY TAX PUSLK: SAFETY
124
FEDBRALGRANTS
125
STATE GRANT
t26
AVP CUPA Program Ommo SmdwOe
125
SB.1
130
AFFORDABLE MOUSING
131
COUNTY STORM WA7ER PROGRAM
202
ASSESSMENTOISTRICTh3
30t
CAPITAL W PROVEUENr FLLwn
802
MFRASTRUCTLME REPLACEMENT FUND
406
FACILITIES MAMENANCE
Sm
WUITBR UTILITY FUND
502
WASTEWATER FUND
508
GOLFCOURSEfU/0
705
SOUK WASTE
601
EOUIPMENTREPLACEMENT
602
EUBIJTY UMPANCE
503
WORKERS COMP. RESERVEIINSURANCE
701
RS:rAEDESIA :I SUPII c„E
702
EXPE140AME TRUST FUND -DEVELOPER FEES
703
EXPENDABLE MST FUND. OTMSR
701
OUTSIDE SERVICES TRUST
TOTAL WARRANTS
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
Inhe TIVbn W 40 6! e1QWalum i5 ava able in 8n OireelerorFiAance'S ofgw In Bre
"al"E 5ny;,rdv-
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ForApPmOvak Repular dMkl held M Coy cwaleil SuMa Miwl b rehNse,
CODES:
ROammor gWenMd Meek for All nw}p3ymerds fm mobhuft. Wppbn Nw
advices In Support a City Operations
For Raft lion:
A' PaOWMI Ifjn *Jn BenaM Alecks,
CITY OF ELSEGUNDO
WARRANTS TOTALS SY FUND
244.744.89
6941
55.34
109.S9
4,550.00
23,189.20
4,651.99
1,165.36
F2,IS9.31
25.14
3D/.ib
2,994.00
S _ 204,040.04
DA7EOFAPPROVAL: AS OP 1 V I V::a REGISTER •S.
VOlOElIEC�C00tB:•
71F/LLl1ap3LENT.
"M CRECKS DUE 70 INCORRECT CHECK DATE:
VOM CHECKS DUE TO COMPUTER SOFTWARE PRROR:
9-F- ONI Vwr 9enars100 Early Rerssae and,'w a.3usin"Is approved try Ns CAy
M imil". SNOT A7: Oey ""LL lw 41110Y ser. -.cel. iWty cash Dr•d amp:oyao lydAj o ",le
NOTES
lwllbulsernallx, vltbaa r4hmds. Cmrva n&T.P:DY8l 5 w.+i 1 Can s 11 n1 vM I cu r1 e n I ovntrecylle
3Wo4w`I%, irrlUia',a1 wham Mcmim P-Tfineal artv.nrs cmb4 nW1rLed or lale ppyrnep penUees
sonW 9vOlded of *ham a siwSeNn aisles rnal 1" Oily Al ana 0 of appraysa.
M'NelldwrBlan, Early RMka"dlbuNelNRlaAndy"11*11Iantsa"rowdbythe City MwmW.
FINANCF DIRECTOR Digitally signed by Joseph Litho CITY MANAGER
J
DATE- Joseph DN:crtiJosephLi1m.OFCItyoIEl
DATE:emag
c=US
L i l i i 120.12.07
o Datc. 2 07:40:52 -g,
Date: 2020,12.0707:4052 -08'00'
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
Date
cro �,o,,.� Hai r,w+ia,
Jos�jph Lillio° �.YrphUln�Knel(IS�Rrtw+PrtMe
aev-tsie.a +,uc gene
11/23/20 THROUGH 19129/20
Direct9i of Finance r
i ty Manager
Date
zb
Date
Date
Payee
OescrivUon
11/23/2020
Cal Pers
11,020.93
EFT Retirement Safety-Fire-PEPRA New 25020
11/23/2020
Cal Pers
21,522.65
EFT Retirement Safety-Police-PEPRA New 25021
11/23/2020
Cal Pers
39,348.61
EFT Retirement Misc - PEPRA New 26013
11/23/2020
Cal Pers
48,252.16
EFT Retirement Misc - Classic 27
11/2312020
Cal Pers
66,799.39
EFT Retirement Safety Police Classic - 1st Tier 28
1112312020
Cal Pers
56,176.84
EFT Retirement Safety Fire- Classic 30168
11/23/2020
Cal Pers
6,380.13
EFT Retirement Sfty Police Classic -2nd Tier 30169
11/27/2020
IRS
253,059.33
Federal 941 Deposit
11/27/2020
Employment Development
4,065.50
State SDI payment
11/27/2020
Employment Development
57,908.61
State PIT Withholding
11/2712020
Manufacturers & Traders
97,380.15
457 payment Vantagepoint
11/27/2020
Manufacturers & Traders
1,130.77
401(a) payment Vantagepoint
11/27/2020
Manufacturers & Traders
550.00
IRA payment Vantagepoint
11127/2020
ExpertPay
2,012.28
EFT Child support payment
11116/20-11/22120
Workers Comp Activity
17,978.76
SCRMA checks issued
11/16/20-11/22/20
Liability Trust - Claims
11,581.60
Claim checks issued
11/16/20-11/22/20
Retiree Health Insurance
0.00
Health Reimbursment checks issued
695,167.71
DATE OF RATIFICATION: 11/25/20
TOTAL PAYMENTS BY WIRE: 695,167,71
Certified as to the accuracy of the wire transfers by:
Deputy City Treasurdf II
Date
cro �,o,,.� Hai r,w+ia,
Jos�jph Lillio° �.YrphUln�Knel(IS�Rrtw+PrtMe
aev-tsie.a +,uc gene
11-30-2020
Direct9i of Finance r
i ty Manager
Date
zb
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo.
PACRyTreasurer%Wire TransferslWlre Transfers 19.01-20 to 6.3U-21 11/25/2020 1/1
21
N
N
3033817 - 3033977
CITY OF EL SEOUNDO
9001732- 4001774
WARRANTS TOTALS BY FUND
061
GENERAL FUND
164
TRAFFIC SAFETY FUND
us
$TA7EQASTAXfUN13
101
ASSOCIATED RECREATION ACTNMES FUND
,00
ASSET FOAFEITUR€FUND
111
COMA. OCYEL. SLOGX ORiANT
112
PROP A TRANSPORTAADN
IN
PROP-C'TRANSPORTATION
115
AIR QUALITY BNESTMENT PROGRAM
116
HOME SOUND NSTALLA71011 FUND
117
1{rPEA X3 MSI FGATAH FUND
,10
TDAARTICL63- 05421 BKEWAY FUND
lit
MTAGRANT
121
FEMA
120
C_G.PS. FUND
122
LA.WA. FUND
123
PSAF PROPERTY TAX PUBLIC SAFETY
124
FEDERAL GRANT$
125
STATE GRANT
126
AIPCUPA Prgpw Owrai0ldSr. h.W
121
S&1
120
CUdE.dAw.ra 9Papi W Prgrue t0AB
130
AFFORDABLE MOUSING
i21
COUNTY STQRMWATBRPFLOORAM
262
ASSESSMENTOL"R1CT473
30t
CAPITALOPROVEMENTANO
362
NFRASTRUCTl1RE REPLACEMENT FUND
405
FAGLI71E5 NANRENANCE
501
WATER UTXJTY FUND
402
WASTEWATER FUND
503
DOLFCOURSBFUND
304
PARK VISTA
505
SOLIDVVA34E
601
EQUIPMENT REPLACEMENT
602
L404M 09RPANCE
003
WORKERS COLD, RESSWE NSURANCE
701
RETIZ[p ENP. 0+3 U[thNcC
702
EXPENDABLE TRUSTFUNO-DEVELOPER FEES
70
FXr` r"OABLET R115T FWC,q nT HER
701
Otfr6ICE BE RvicE S Inti sT
TOTALWARRANTS
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
Intor lion on 4xtuar lrat WiMfaa i5 ava<fabls In the Okedw at Financa's ofte M Oro
Gty of E1 So qu ndo.
1 cmlify 05 to 14 fccurl"01It" D-14ndt IM to -r- bAfly OF fund 1w;! tym n n1 IhMeof
For APprcm* Rapldarchn4m h0td fw City Caa11CA4N11grIf3lfl01t to mice".
CODES:
R+ c—puler woral",cho"3 larall var"n irencyfwyancy Payments Por materlah, awlias and
srreirws n 5r,pppm of Cry OpariL�ns
For RrdtFoLon:
A- PlanGh and Ernplayaa BEna51 dwtck$
S -F. COmpular 94"galSd Entry Releeca d Owvo amu onVw a ,UnaAl3 a
Ory pprAvsd ey [t10 G:y
Maf1>Qar. Su Jt as: Wymlants lu WSdy 3arvlea3, petty cash end mlpk7a►1raYH .sp.nw
raaryitr3rmanls, vari t rsivadr. coalrack empioya0 s.rv:ut conJ411.n1 wilh cwram0,.lracwal
ajI .*n nls- In slant.. whir■ prompt p%ja,ml dis,"s Cin b. ceN.nrrd a lel. payor enl Pa narlxc
ran be asnidld or vrir4n A fiSuaOun girlies 4r1J1 Gm Ciy MuAger approve,.
H. llwWmttlan Early Releaw dlsN zi rents Sfmy*r u§ul Wft 4PPrOVW by to CRY Manager,
FINANCE DIRECTOR Digitally signed by Joseph L11110 CITY MANAGER
L1N: L n=J Oieph L i l! U. O=City 61 U
Joseph Li11io Segundo, Ou= Direnw 6f Frnam C.
emalE jlilh6�clsaguncfoOrg,c=US
Date: 2020.12.07 07:35:55.08'00'
VpIp CHECrSS OUE [¢pL4GNIAENT:
A
VOL) CHECKS DUE TO INCORRECT CHECK DATE--
VOID
ATA
VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR.-
NOT"
RROR
NOT"
V
j''aFT
CITY OF EL SEOUNDO
WARRANTS TOTALS BY FUND
DATE OF APPROVAL AS OF IVISI20
333,365.62
,7.e7
505.92
,a.32o.09
1,2.50
10460
.7.167.20
4.077.91
160.40
,2656
5.69
1,133.75
2.000.00
s
362,149.24
R+ c—puler woral",cho"3 larall var"n irencyfwyancy Payments Por materlah, awlias and
srreirws n 5r,pppm of Cry OpariL�ns
For RrdtFoLon:
A- PlanGh and Ernplayaa BEna51 dwtck$
S -F. COmpular 94"galSd Entry Releeca d Owvo amu onVw a ,UnaAl3 a
Ory pprAvsd ey [t10 G:y
Maf1>Qar. Su Jt as: Wymlants lu WSdy 3arvlea3, petty cash end mlpk7a►1raYH .sp.nw
raaryitr3rmanls, vari t rsivadr. coalrack empioya0 s.rv:ut conJ411.n1 wilh cwram0,.lracwal
ajI .*n nls- In slant.. whir■ prompt p%ja,ml dis,"s Cin b. ceN.nrrd a lel. payor enl Pa narlxc
ran be asnidld or vrir4n A fiSuaOun girlies 4r1J1 Gm Ciy MuAger approve,.
H. llwWmttlan Early Releaw dlsN zi rents Sfmy*r u§ul Wft 4PPrOVW by to CRY Manager,
FINANCE DIRECTOR Digitally signed by Joseph L11110 CITY MANAGER
L1N: L n=J Oieph L i l! U. O=City 61 U
Joseph Li11io Segundo, Ou= Direnw 6f Frnam C.
emalE jlilh6�clsaguncfoOrg,c=US
Date: 2020.12.07 07:35:55.08'00'
VpIp CHECrSS OUE [¢pL4GNIAENT:
A
VOL) CHECKS DUE TO INCORRECT CHECK DATE--
VOID
ATA
VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR.-
NOT"
RROR
NOT"
V
j''aFT
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
11/30/20 THROUGH 12/06120
ate
Payee
12/3/2020
Dept. of Healthcare Svcs
1 21312 02 0
Lane Donovan Golf Ptr
11123120-11129120
Workers Comp Activity
11123120-11129/20
Liability Trust - Claims
11/23120-11129120
Retiree Health Insurance
DATE OF RATIFICATION: 12/04/20
TOTAL PAYMENTS BY WIRE:
Certified as to the accuracy of the wire transfers by:
Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo.
PACity TreasureAWlre Transfera Wire Transfers 10.01-20 to 6-30-21
63, 775.43
12/4/2020 111
23
Description
7,073.70
Ground CMT Transoport Qi-�0
21,780,62
Payroll Transfer
23,588.02
SCRMA checks issued
0.00
Claim checks issued
11,333.09
Health Reimbursment checks issued
63,775.43
qty Manager
Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo.
PACity TreasureAWlre Transfera Wire Transfers 10.01-20 to 6-30-21
63, 775.43
12/4/2020 111
23
Deputy City Treasure
J o s 1
_Il p;ylta,ly5ignedWastphLillie
DN: cn=lc.wph LiUio, o=City of EI
L i I I' O 'equndo cu-pi:ec ni M Finance,
Date
.
cmatl=JidhoRclteBundo org, c=VS
e. +ern spm nr.zc.=i .nnm'
oFinance
_
Date
yDire�
LS"ti t,�-
qty Manager
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo.
PACity TreasureAWlre Transfera Wire Transfers 10.01-20 to 6-30-21
63, 775.43
12/4/2020 111
23
CITY OF
:E L S E. G U N D O City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading: Consent
TITLE:
Resolution to vacate Public Service Easement
RECOMMENDATION:
1. Adopt resolution to vacate the public waterline service easement at 2000 EI Segundo
Boulevard.
FISCAL IMPACT: None
BACKGROUND:
On September 14, 2017, the Planning Commission approved a development project
(Environmental Assessment No. EA -1200) involving the construction of approximately
65,660 square feet of retail and office space on a 7.34 acre site located at 2000 EI
Segundo Boulevard. The City holds one easement on the subject property that is fifteen
feet wide and runs from the front of the property through the back of the property. The
easement is located on a portion of the property where one of the proposed buildings
would be constructed and would have to be vacated in order for the construction to
proceed.
The subject easement was acquired from previous property owners in 1950 for the
purpose of holding municipal water facilities. The water facilities within the easement have
since been abandoned in 1980. As a result, the easement is no longer needed on the
subject property.
DISCUSSION:
State law allows the City Council to summarily vacate public service easements, provided
that the easement has not been utilized for five consecutive years prior to the proposed
vacation, there are no public utility facilities that are in use or would be affected by the
vacation, and the vacation is consistent with the City's General Plan (Cal. Streets &
Highways Code §§ 8333, 8334.5). Since these conditions are met, staff respectfully
recommends that the City Council adopt the attached resolution, approving the vacation
of the subject easement.
3
24
Vacation of a Public Service Easement
December 15 2020
Page 2 of 2
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service, Engagement and Communication; Embrace
Diversity, Equity and Inclusion
Objective A: EI Segundo provides unparalleled service to internal and external customers
Goal 4: Develop Quality Infrastructure and Technology
Objective A: EI Segundo's physical infrastructure supports an appealing, safe, and
effective city.
PREPARED BY: James Rice, Associate Engineerf
REVIEWED BY: Elias Sassoon, Public Works Dir ctor Y
APPROVED BY: Scott Mitnick, City Manager C f (-��A,
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution
2. Legal Description of public service easement
3. Vicinity Map
4. Location Map
25
Recording Requested by and Returned to:
City Clerk
City of EI Segundo
350 Main Street
El Segundo, CA 90245
Request recording without fee for the benefit of the
City of EI Segundo pursuant to Streets and Highways Code § 8336.
APN 4138-014-053
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF EL
SEGUNDO VACATING ONE FIFTEEN -FOOT WIDE PUBLIC SERVICE
EASEMENT ON PROPERTY LOCATED AT 2000 EI SEGUNDO BLVD.
The Council of the City of EI Segundo resolves as follows:
SECTION 1: The City Council finds as follows:
A. On May 18,, 1950, the property owners of 2000 EI Segundo Blvd. granted
one, fifteen -foot wide easement to the City of EI Segundo for public service
described in Exhibit A of this Resolution ("Easement").
B. A review of applicable documents, and after contacting other public utilities,
shows there are no public utility facilities located within the Easements.
C. The Easement, in its current location, are not necessary for present or
prospective public use.
D. Vacating the Easements is consistent with the City's General Plan.
E. The City may summarily vacate public service easement pursuant to
California Streets & Highways Code §§ 8330-8336.
SECTION 2: In accordance with the City Council's findings, and pursuant to Streets and
Highways Code § 8333, the City of EI Segundo summarily vacates the Easement.
Page 1 of 3
26
SECTION 1 The City Clerk, or designee, is directed to record this Resolution pursuant
to Streets and Highways Code § 8336 within 10 days of its adoption.
SECTION 4: From and after the date this Resolution is recorded, the Easements vacated
by this Resolution will no longer constitute public service easements.
SECTION 5: This Resolution will become effective immediately upon adoption and will
remain effective unless superseded or repealed.
SECTION 6: The City Clerk will certify to the passage and adoption of this Resolution; will
enter the same in the book of original Resolutions of said City; and will make a minute of
the passage and adoption thereof in the record of proceedings of the City Council of said
City, in the minutes of the meeting at which the same is passed and adopted.
PASSED AND ADOPTED this day of , 2020.
Drew Boyles, Mayor
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. was duly passed and adopted by said City Council, approved and
signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a
regular meeting of said Council held on the day of 2020, and the same was
so passed and adopted by the following vote:
AYES:
Page 2 of 3
27
NOES:
ABSENT:
Tracy Weaver, City Clerk
Page 3 of 3
WR
PSOMAS
1 EXHIBIT "A"
2
3 That portion of the Rancho Sausal Redondo, as shown on map recorded in Book 1, pages
4 507 and 508, of Patents, in the office of the Registrar -Recorder of the County of Los
5 Angeles, described as Parcel A in Deed to City of El Segundo, recorded in Book 33192,
6 Page 378, of Official Records, in the office of said Registrar -Recorder, said Parcel A
7 being as shown as Parcel No. 1 on Map filed in Book 63, pages 36 and 37, of Record of
8 Surveys, in the office of said Registrar -Recorder.
9
10 EXCEPTING therefrom that portion within the land described in Deed to Utah
11 Construction & Mining Company, recorded in Book D1069, page 898, of said Official
12 Records.
13
14 ALSO EXCEPTING therefrom that portion lying northerly of a line parallel with and
15 southerly 50 feet, measured at right angles, from the center line of El Segundo Boulevard,
16 40 feet wide, shown as El Segundo Boulevard on said map filed in Book 63, pages 36
17 and 37, of Records of Surveys.
18
19 ALSO EXCEPTING therefrom that portion lying easterly of the easterly line of that
20 certain 143.84 -acre parcel of land shown on a map filed in Book 89, pages 25 and 26, of
21 Record of Surveys, in the office of said County Registrar -Recorder.
22
23 Prepared under the direction of
24
25 DOUGLAS R. `n
26 I 77/30/2020 HOWARD
27 Douglas R. Howard, PLS 6169 Date � No. 6169
28 PSOMAS
29
30
Sheet 1 of 1
W:\Raytheon_ES\1MAR411002\SURVEY\LEGALS\WATER EASEMENT VACATION_2020-1130.doc
11/30/2020
tm:DRH
29
�AL A7 Vicinity Map: Vacation of the Public Service
Easement at 2000 EI Segundo Boulevard
Wo,,4 WON W
F
n
ri
__.._.._.._..YlC�J7t1�.1L.�{•iOC._..���rr�r.r--- —• _-'_�_.-rTt �,l''
I � 4
0
ri
6,018.7
0 3,009.33 6,018.7 Feet
1{r,
last; 1
1�
7 1
M
q 1
4n " 1
- 1
tY
L*""
414d4
Schaa
Y
4
Y
+7
i9
e
3
v
DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of El Segundo will not be held responsible for any claims, losses or damages resulting
WGS_1984_ Web_ Mercator_ Auxiliary_Sphere from the use of this map. 30
r�
Li
I
E Naple Av �
I
�I S*pundo _
uJ �
w
I iqh Sc hoof
i
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F- M ar ipnsa Av a—
+
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U
+�a
°
I
•--•�
I r i�r��iGn
+iF'
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EE SOgUhdO
o
g
��
E C,rand Ave
z
LAY +
'W Gr 3a C1
A,*c
Awl FO"
sA
E FraikkliR Ave-
�A
i�.901s
11 X44*
CL
kJ
FpIf44yn * J+
t
0
ri
6,018.7
0 3,009.33 6,018.7 Feet
1{r,
last; 1
1�
7 1
M
q 1
4n " 1
- 1
tY
L*""
414d4
Schaa
Y
4
Y
+7
i9
e
3
v
DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of El Segundo will not be held responsible for any claims, losses or damages resulting
WGS_1984_ Web_ Mercator_ Auxiliary_Sphere from the use of this map. 30
5e s'9-e�
Y-
Location Map: Vacation of Public Service Easement at 2000
EI Segundo Blvd.
1,504.7
W GS_1984_W eb_Mercator_Auxil is ry_S phere
752.33 1,504.7 Feet DISCLAIMER. The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of EI Segundo will not be held responsible for any claims, losses or damages resulting
from the use of this map.
31
CITY OF
ELSEGUNDO
TITLE:
FY 20-21 Pavement Rehabilitation Project
City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading: Consent
RECOMMENDATION:
1. Adopt Resolution to approve plans and specifications for FY 20/21 Pavement
Rehabilitation Project No. PW 21-01;
2. Authorize staff to advertise the project for construction bids.
FISCAL IMPACT:
The total cost of the project is estimate to be $1,244,217.83 for construction and
inspection. Funding sources are as follows:
Project Cost Summary
Description Budget
SB -1 fund $ 100,000
Water fund $ 200,000
Additional appropriation
SB -1 fund $ 650,000
STPL Metro grant $ 294,217.83
Total Project Budget $ 1,244,217.83
Description Expenditures
Construction estimate $1,050,000
Contingency $109,217.83
Inspection estimate $85,000
Total Project Costs $1,244,217.83
Notes
Per 2020/21 budget
For reservoir recoating
Amount Budgeted: $300,000
Additional Appropriation: $650,000 from SB -1 fund #128
$294,217.83 from #119-215-000-1297 (MTA grant)
Account Number(s): $750,000 from #128-400-0000-8383
$294,217.83 to #119-400-XXXX-XXXX (Account number to be
determined by Finance)
$200,000 from #501-400-7103-8206
21
32
FY 20-21 Pavement Rehabilitation Project No. PW 21-01
December 15, 2020
Page 2of3
BACKGROUND:
The Public Works Department administers a five-year (2017-2021) Pavement
Management Program (PMP) to ensure public health and safety, and to efficiently and
effectively manage the integrity of the City's roadway system. Based on existing records,
conditions and field verification, the PMP assigns a Pavement Condition Index (PCI) to
all City roadway segments on scale of 0-100, with 100 representing the best (similar to
new pavement). Roadway segments with Scores below 75 require some type of
preventive maintenance which can range from a slurry seal to an overlay, or complete
reconstruction, depending on the condition of the roadway. The current five-year PMP
aims to increase the citywide average PCI from 65.7 at the beginning of FY2016/17 to 73
at the end of FY2020/21, given limitation of available funding. This is the final year of the
PMP and the current citywide average PCI stands at 72.7 and the PMP target of 73 PCI
can be achieved subsequent to the implement of this project.
DISCUSSION:
This year's pavement rehabilitation project was identified and approved as part of this
year's Capital Improvement Program and it will focus on highly traveled and deteriorated
roadway sections with a 2" grind and overlay. The paving will be partially funded by the
Surface Transportation Program Metro Local (STPL) Exchange Fund that is set to be
expired in July 2021 and the SB -1 Fund (Senate Bill 1 of 2017, the "Road Repair and
Accountability Act"). In addition, the elastomeric waterproof traffic coating on top of the 6
million gallon water reservoir was last re -coated in 2008 and is in need of a new coat. The
top of the 6 million gallon water reservoir serves as public parking and the maintenance
of an elastomeric waterproof traffic coating is necessary to prevent concrete cracking and
damage to the water reservoir. The recoating of the 6 million gallon water reservoir is
part of the water facilities maintenance and there is sufficient funding budgeted in the FY
water enterprise fund.
The project consist of 2" grind and overlay in the following streets:
• W. Pine Avenue from Hillcrest Street to Main Street (Average PCI of 54)
• E. Pine Avenue from Main Street to Arena Street (Average PCI of 44)
■ E. Walnut Street from Center Street to California Street (Average PCI of 50)
• E. Acacia Avenue from Center Street to California Street (Average PCI of 47)
• W. Maple Avenue from Loma Vista Street to Virginia Street (Average PCI of 68)
• E. Maple Avenue from Main Street to Eucalyptus Drive (Average PCI of 69)
• W. Mariposa Avenue from Main Street to Bungalow Drive (Average PCI of 70)
■ W. Holly Avenue from Virginia Street to Richmond Street (Average PCI of 58)
• W. Franklin Avenue from Whiting Street to Richmond Street (Average PCI of 65)
• Indiana Court from E. Maple Avenue to Street End (Average PCI of 45)
In addition, recoating of the following is included in this project:
• 6 Million gallon water reservoir hilltop parking lot
33
FY 20-21 Pavement Rehabilitation Project No. PW 21-01
December 15, 2020
Page 3 of 3
Staff requests that City Council approve the recommended actions as noted. With
Council's authorization, the anticipated schedule is as follows:
January 2021 Advertising and Bid Process
February 2021 Contract Award
April 2021 Begin Construction
June 2021 Construction Completion
CITY STRATEGIC PLAN COMPLIANCE:
Goal 4: Develop Quality Infrastructure and Technology
Objective A: EI Segundo's physical infrastructure supports an appealing, safe, and
effective community.
PREPARED BY: James Rice, Associate Engineer
REVIEWED BY: Elias Sassoon, Public Works Director
APPROVED BY: Scott Mitnick, City Manager N C t
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution
2. Vicinity Map
3. Map of Project Area
34
RESOLUTION NO. _
A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR
THE CONSTRUCTION OF FY 20/21 PAVEMENT REHABILITATION
PROJECT, PROJECT NO. PW 21-01, PURSUANT TO GOVERNMENT
CODE § 830.6 AND ESTABLISHING A PROJECT PAYMENT ACCOUNT.
The City Council of the City of EI Segundo does resolve as follows:
SECTION 1: The City Council finds and declares as follows:
A. The City Engineer prepared plans and specifications for FY 20/21
Pavement Rehabilitation Project, Project No. PW 21-01 ("Project"). These
plans and specifications are complete. Construction of the Project may
begin;
B. The City Council wishes to obtain the immunities set forth in Government
Code § 830.6 with regard to the plans and construction of the Project.
SECTION 2: Design Immunity, Authorization.
A. The design and plans for the Project are determined to be consistent with
the City's standards and are approved.
B. The design approval set forth in this Resolution occurred before actual
work on the Project construction commenced.
C. The approval granted by this Resolution conforms with the City's General
Plan.
D. The City Engineer, or designee, is authorized to act on the City's behalf in
approving any alterations or modifications of the design and plans
approved by this Resolution.
E. The approval and authorization granted by this Resolution is intended to
avail the City of the immunities set forth in Government Code § 830.6.
SECTION 3: Project Payment Account. For purposes of the Contract Documents
administering the Project, the City Council directs the City Manager, or designee, to
establish a fund containing sufficient monies from the current fiscal year budget to pay
for the Project ("Project Payment Account"). The Project Payment Account is the sole
source of funds available for the Contract Sum, as defined in the Contract Document
administering the Project.
SECTION 4: The City Clerk is directed to certify the adoption of this Resolution.
SECTION 5: This Resolution will become effective immediately upon adoption.
Page 1 of 2
35
PASSED AND ADOPTED this day of , 2020.
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
for
Mark D. Hensley
City Attorney
Drew Boyles, Mayor
Page 2 of 2
36
se seq PW21-01 Vicinity Map FY20/21 Pavement Rehabilitation
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3,009.33 6,018.7 Feet DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of EI Segundo will not be held responsible for any claims, losses or damages resulting
from the use of this map. 37
( Se Seguaido
PW 21-01 Location Map
FY 20/21 Pavement Rehabilitation
W Imperial
W AG4ci a Ave
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DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of EI Segundo will not be held responsible for any claims, losses or damages resulting
from the use of this map.
1. W. Pine Ave. - Hillcrest St.
to Main St.
2. E. Pine Ave. - Main St. to
Arena St.
3. E. Walnut Ave. - Center
St. to California St.
4. E. Acacia Ave. - Center
St. to California St.
5. W. Maple Ave. - Loma
Vista St. to Virginia St.
6. E. Maple Ave. - Main St.
to Eucalyptus Dr.
7. W. Mariposa Ave. -Main
St. to Bungalow Dr.
8. W. Holly St. - Virginia St.
to Richmond St.
9. W. Franklin Ave. -Whiting
St. to Richmond St.
10. Indiana Court - E. Maple
Ave. to End
Recoat parking on top of the 6
Million Gallon Water Reservoir
W
CITY OF
ELSEGUNDO
TITLE:
City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading: Consent
City Hall Window Replacement Project – Authorization to Advertise for Construction Bids.
RECOMMENDATION:
1. Approve an amendment to agreement #5853 with Lionakis architecture design firm
for an additional $14,300 to increase the total contract amount from $48,000 to
$62,300 for City Hall Window Replacement Project design services;
2. Adopt resolution to approve Plans and Specifications for the City Hall Window
Replacement Project; and,
3. Authorize staff to advertise for City Hall Window Replacement Project construction
bids.
FISCAL IMPACT:
The City Council approved FY 2020-2021 budget for the overall City Hall tenant
improvements project (security upgrades and windows replacement) totals $625,000.
This funding for the estimated design, engineering, and construction costs is as follows:
Project Cost Summary
FY 20-21 Approved
Description
Budget
Windows Replacement
$ 500,000
Security Upgrades
125,000
Total Project Budget
$ 625,000
_ Description Estimated Cost
Initial Engineering Design $ 48,000
Additional Engineering Design 14,300
Construction 4_50,000
Contingency 55,322
Permit fee 7,378
Inspections 50,000
Total Estimated Project Cost $ 625,000
Account Number(s): 301-400-8201-8232 (City Hall Window Replacement)
301-400-8201-8234 (City Hall Security Improvement)
M
City Hall Window Replacement Project
December 15, 2020
Page 2 of 3
BACKGROUND:
City Hall was constructed in two phases. The western portion of the building was built in
1954 and houses offices for City Council, City Clerk, City Treasurer, City Manager, City
Attorney, Finance Department, Human Resources Department, Information Technology
Department, City Council Chamber, conference rooms, and other uses. The eastern
portion of the building was built in 1976 and houses offices for Public Works, Business
Services, and Development Services. Most of the windows and doors are original (some
are over 65 years old) and need to be replaced in order to provide adequate health and
safety for City employees and visitors.
With the adoption of the FY 2020-2021 Annual Budget, City Council approved funding to
replace City Hall doors and windows. To date, the necessary security doors have been
replaced and the design of the windows has been completed. The existing windows are
not compliant with current building codes and are also not energy efficient. Replacing the
windows at this time will result in considerable energy efficiencies, cost savings, health
benefits, and security features. The replacement windows will be installed to meet current
building code standards. See attached project renderings for a sample of what the design
looks like.
DISCUSSION:
As part of the Adopted FY 2019-2020 Budget approved by City Council on September
17, 2019, $625,000 in capital improvement funding was included for this project
($125,000 for doors and $500,000 for windows). This funding was carried over into the
FY 2020-2021 Budget which was adopted by City Council on September 15, 2020. In
January 2020, the City entered into a professional services agreement with the Lionakis
architecture design firm to design window replacement options for City Hall windows.
Design efforts began in March 2020 and a conceptual design was selected in June 2020.
During the course of the final design, additional cost saving measures were pursued,
including painting concrete building trim, existing doors, and window frames. Due to
these changes, additional design fees with the Lionakis firm were incurred in the amount
of $14,300 (increasing the total design cost from $48,000 to $62,300. As a result, this
firm's original agreement needs to be amended. There is sufficient funding within the
original project budget to fund this amendment. No additional budget appropriation is
needed at this point.
E
City Hall Window Replacement Project
December 15, 2020
Page 3of3
NEXT STEPS:
In order to move this project forward, staff requests City Council to approve the
recommended actions delineated above. The anticipated remaining project schedule is
as follows:
Advertising/Solicitation of Construction Bids — January 2021
• Construction Contract Award (by City Council) — March 2021
= Construction Commences — May 2021
Construction Completed — August 2021
CITY STRATEGIC PLAN COMPLIANCE:
Goal 3: Develop as a Choice Employer and Workforce
Objective A: EI Segundo is a city employer of choice and consistently hires for the
future, with a workforce that is inspired, world-class and engaged,
demonstrating increasing stability and innovation.
Goal 4: Develop and Maintain Quality Infrastructure and Technology
Objective A: EI Segundo's physical infrastructure supports an appealing, safe and
effective community.
PREPARED BY: Cheryl Ebert, Senior Civil Engineer
REVIEWED BY: Elias Sassoon, Public Works Dare tore,
J
APPROVED BY: Scott Mitnick, City ManagerI�ar S 4ti�
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution
2. Vicinity Map
3. Location Map
4. Project Rendering
41
RESOLUTION NO. _
A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR
THE CONSTRUCTION OF CITY HALL WINDOW REPLACEMENT
PROJECT, PW 21-04. PURSUANT TO GOVERNMENT CODE § 830.6
AND ESTABLISHING A PROJECT PAYMENT ACCOUNT.
The City Council of the City of EI Segundo does resolve as follows:
SECTION 1: The City Council finds and declares as follows:
A. The City retained Lionakis ("Consultant") as the engineer to design and
prepare the plans for PW 21-04 City Hall Window Replacement Project
("Project");
B. The Consultant informed the City Engineer that these plans are complete
and that construction of the Project may begin;
C. The City Engineer reviewed the completed design and plans for the
Project and agrees with the Consultant that the plans are complete and
the Project may be constructed;
D. The City Council wishes to obtain the immunities set forth in Government
Code § 830.6 with regard to the plans and construction of the Project.
SECTION 2: Design Immunity; Authorization.
A. The design and plans for the Project are determined to be consistent with
the City's standards and are approved.
B. The design approval set forth in this Resolution occurred before actual
work on the Project construction commenced.
C. The approval granted by this Resolution conforms with the City's General
Plan.
D. The City Engineer, or designee, is authorized to act on the City's behalf in
approving any alterations or modifications of the design and plans
approved by this Resolution.
E. The approval and authorization granted by this Resolution is intended to
avail the City of the immunities set forth in Government Code § 830.6.
SECTION 3: Project Payment Account. For purposes of the Contract Documents
administering the Project, the City Council directs the City Manager, or designee, to
establish a fund containing sufficient monies from the current fiscal year budget to pay
for the Project ("Project Payment Account"). The Project Payment Account is the sole
Page 1 of 2
:A
source of funds available for the Contract Sum, as defined in the Contract Document
administering the Project.
SECTION 4: The City Clerk is directed to certify the adoption of this Resolution.
SECTION 5: This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this 15th day of December, 2020.
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
in
Drew Boyles, Mayor
David H. King, Assistant City Attorney
Page 2 of 2
43
�G Seguotda
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PW 21-04, City Hall Window Replacement Vicinity Map
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DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of EI Segundo will not be held responsible for any claims, losses or damages resulting
from the use of this map. 44
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DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of EI Segundo will not be held responsible for any claims, losses or damages resulting
from the use of this map. 44
&,Fe s PW 21-04 City Hall Window Replacement Location Map
City Hall
Pa on
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Fire
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Legend
Points of Interest
Other Facilities
Facility, City Hall
Facility, Fire Station 1; Facility, Fire
Facility, Police Station
Hotels
Parks
Schools
❑ Parcels
Medians
Curbs
City Boundary
World Street Map
74
Notes
DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of El Segundo will not be held responsible for any claims, losses or damages resulting
from the use of this map.
45
El Segb.110
I.
7
Legend
Points of Interest
Other Facilities
Facility, City Hall
Facility, Fire Station 1; Facility, Fire
Facility, Police Station
Hotels
Parks
Schools
❑ Parcels
Medians
Curbs
City Boundary
World Street Map
74
Notes
DISCLAIMER: The information shown on this map was compiled from different GIS
sources. The land base and facility information on this map is for display purposes only
and should not be relied upon without independent verification as to its accuracy. The City
of El Segundo will not be held responsible for any claims, losses or damages resulting
from the use of this map.
45
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47
CITY OF
ELSEGUNDO
TITLE:
City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading: Consent
Resolution to approve amended Part-time Classifications Salary Schedule to meet State
requirements.
RECOMMENDATION:
1. Adopt Resolution to approve the amended Part-time/Hourly Classifications Salary
Schedule
FISCAL IMPACT:
Funding for the proposed action was incorporated in the Adopted FY 2020-2021 Citywide
Budget. No new funding is needed for this fiscal year.
BACKGROUND:
In 2016, Governor Brown signed SB 3 into law, increasing the State's minimum wage
from $9.00 per hour to $15.00 hour by January 1, 2022 (for large employers with more
than 26 employees). Pursuant to this law, the minimum wage will increase each year by
$1.00 until January 1, 2022, when large employers must pay a minimum wage of $15.00
per hour. Small employers or those with 25 or less employees, have until January 1,
2023 to meet the $15.00 minimum wage order.
The table below shows an example of the escalating minimum wage increases, to be
phased in overtime:
Date:
January 1, 2017
January 1, 2018
January 1, 2019
January 1, 2020
January 1, 2021
January 1, 2022
January 1, 2023
Minimum Wage (small
employers with 25 or less)
$10.00/hour
$10.50/hour
$11..00/hour
$12.00/hour
$13.00/hour
$14,00/hour
$15.00/hour
Minimum Wage (large
employers with 26 or more)
$10.50/hour
$11.00/hour
$12.00/hour
$13.00/hour
$14.00/hour
$15.00 hour
SB 3 includes a provision which allows the Governor to suspend the increases if it is
determined, based upon certain economic factors, that the State is in recession. As of
December 15, 2020, no such provision has been announced.
nAW
MP
Part-time Salary Resolution
December 15, 2020
Page 2 of 2
DISCUSSION:
Effective January 1, 2021, the California minimum wage will increase to $14.00 per hour.
To ensure the City is in compliance with the State law, the 2020 Part Time/Hourly Salary
Schedule must be adjusted to reflect appropriate salary ranges of those classifications
impacted by next year's minimum wage increase as well as increase salary of positions
in the classification series that will be impacted due to compaction.
The attached Part-Time/Hourly Classifications Salary Schedule, is effective January 1,
2021. The attached schedule meets or exceeds the State's minimum wage law
requirements, and addresses certain salary compaction issues within the classifications
presented.
With the attached schedule, the City seeks to recruit and retain highly qualified part-time
personnel for various positions throughout the City while supporting the welfare of the
City's workers, particularly those in low wage positions. The City also strives to be
competitive in employing local high school students seeking summer and seasonal
positions.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 3: Develop as a Choice Employer and Workforce
Objective: EI Segundo is a city employer of choice and consistently hires for the future,
with a workforce that is inspired, world-class and engaged, demonstrating
increasing stability and innovation.
PREPARED BY: Lauren Daniels, Human Resources Manage
REVIEWED BY: Joseph Lillio, Interim HR/Finance Director
APPROVED BY: Barbara Voss, Deputy City Manager ��� SON,
ATTACHED SUPPORTING DOCUMENTS:
1. Salary Resolution
2. Salary Schedule
wf
RESOLUTION NO.
RESOLUTION OF THE CITY OF EL SEGUNDO, CALIFORNIA APPROVING
A RATE SCHEDULE FOR PART-TIME/HOURLY EMPLOYEES
SECTION 1: In Chapter 5, Article A, Section 1-5 A7 of the City's Municipal Code provides that the
duties of the City Manager of the City of EI Segundo; and
SECTION 2: In Chapter 5, Article A, Section 1-5A7(K) of the City's Municipal Code provides the
City Manager shall prepare and submit the proposed salary plan to City Council for Approval;
Now, therefore, be it resolved that the City Council of the City of EI Segundo California, as follows:
SECTION 3: That the "Part-time/Hourly Rate Schedule " dated January 1, 2021 as attached
hereto, and made a part hereof shall be adopted as the salary and benefit schedule for part-
time/hourly employees in the City of EI Segundo;
SECTION 4: That the "Part-time/Hourly Rate Schedule" shall become part of the City's personnel
rules and regulations;
SECTION 5: The City Clerk is directed to certify the adoption of this Resolution; record this
Resolution in the book of the City's original resolutions, and make a minute of this adoption of the
Resolution in the City Council's records and minutes of this meeting.
SECTION 6: This Resolution will become effective immediately upon adoption and
PASSED AND ADOPTED RESOLUTION No. on this 17th day of December,
2020.
Drew Boyles, Mayor
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
WE
cn
CITY OF EL SEGUNDO
Part-Time/Hourly Classifications Salary Schedule
Effective January 1, 2021
Classification
Administrative Intern
Library Assistant P/T
Library Clerk P/T
Lifeguard
Police Cadet
Recreation Assistant
Recreation Leader
Senior Recreation Leader
Recreation Specialist
Senior Lifeguard
Senior Video Technician/Media Specialist
Senior Video Technician II
Video Technician II/Media Assistant
Shuttle Driver
Swim Instructor
Revised 12/14/2020
Grade
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
28pt
$15.00
$15.75
$16.54
$17.36
$18.23
$19.14
20h
$21.37
$22.44
$23.56
$24.74
$25.98
-----
7h
$15.50
$16.28
$17.09
$17.95
$18.84
-----
680
$15.00
$15.75
$16.54
$17.36
$18.23
$19.14
05c
$16.27
$17.08
$17.94
$18.83
$19.78
$20.77
2pt
$14.00
$14.70
$15.44
$16.21
$17.02
$17.87
11 pt
$15.00
$15.75
$16.54
$17.36
$18.23
$19.14
21 pt
$16.00
$16.80
$17.64
$18.52
$19.45
$20.42
31 pt
$18.29
$19.20
$20.16
$21.17
$22.23
$23.34
681
$18.00
$18.90
$19.85
$20.84
$21.88
$22.97
31 pt
$17.25
$18.11
$19.02
$19.97
$20.97
$22.02
35pt
$22.25
$23.36
$24.53
$25.76
$27.05
$28.40
12pt
$14.00
$14.70
$15.44
$16.21
$17.02
$17.87
38pt
$17.25
$18.11
$19.02
$19.97
$20.97
$22.02
682
$16.50
$17.33
$18.19
$19.10
$20.06
$21.06
CITY OF
E L S E GU N D O City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading: Consent
TITLE:
Open the recruitment process for the positions on the Committees, Commissions and
Boards ("CCB") that expire in the year 2021.
RECOMMENDATION:
Direct staff to open recruitment process for the positions on the Committees,
Commissions and Boards as listed.
FISCAL IMPACT: None
BACKGROUND:
Pursuant to Government Code §54972, attached is the Local Appointments List of the
positions on Committee, Commissions and Boards that will expire in the year 2021.
Application forms, the anticipated vacancies in the year 2021 and the background
information list are posted on the City's website at www.elseoundo.ora or may be
obtained from the Council Office at City Hall or, will be mailed or emailed to interested
persons upon requests.
To apply to any CCB, potential candidates should contact City Hall at 310-524-2302, for
an application. The deadline for filing applications is 48 hours prior to the posted interview
date. Interviews of candidates are set by the City Council when a sufficient number of
candidates have applied to a position.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance customer service and engagement.
Objective A: EI Segundo's engagement with the community ensures excellence.
PREPARED BY: Mishia Jennings, Executive Assistant
REVIEWED BY: Barbara Voss, Deputy City Manager
APPROVED BY: Scott Mitnick, City Manager R)yJ►'��
ATTACHED SUPPORTING DOCUMENTS:
CCB Listing of the year 2021 vacancies on Committees, Commission and Boards.
52
CITY OF EL SEGUNDO
LOCAL APPOINTMENTS LIST
(COMMISSIONS, COMMITTEES, AND BOARDS)
Positions to Open in Year 2021 Posted pursuant to Govt Code § 54972
TO APPLY, CONTACT CITY HALL ADMINISTRATION, 310-524-2302
TERM EXPIRES/OPENINGS
JANUARY
ECONOMIC DEVELOPMENT ADVISORY COUNCIL: (3 Yr Term — No Term Limit — Residents and Business Members)
Tim Harris — (apptd 07117/18)
01/01/21
Vacant (Lance Giroux, apptd 7/17/18 RESIGNED)
01/01/21
James McCaulley (apptd 07/17118)
01/01/21
Corinne Murat (apptd 07/17/18))
01/01/21
Vacant (Rick Yuse apptd 10/16/18 RESIGNED)
01/01/21
MAY
RECREATION & PARKS COMMISSION: (4 Yr Term — No Term Limit - All Residents)
Dave Lubs (apptd 06/06117 to 2nd 4 yr term) 05/30/21
Robert Motta (re-apptd 06106117 to 41h full term) 05/30/21
JUNE
ARTS AND CULTURE ADVISORY COMMITTEE: (3 Yr Term — No Term Limit — Residents/Vested Members in the Arts)
Eva Sweeney (re-appt 6/19118 to 1st full term)
Brian Mitchell (re-appt 6119118 to 1st full term)
06/30/21
06/30/21
ENVIRONMENTAL COMMITTEE: (4 Yr Term — No Term Limit — 3 Residents/3 Business Person/1 ESUSD)
Tracey Miller-Zarneke (apptd 7/18117 to 2nd full term) 06/30/21
Sarah Brockhaus (apptd 8120/19 to a partial term) 06/30/21
LIBRARY BOARD OF TRUSTEES: (3Yr Term — No Term Limit - All Residents)
David Jonta (re-apptd 7/17/18 to 411 full 3 -yr term) 06/30/21
PLANNING COMMISSION: (4 Yr Term — No Term Limitation) (All Residents)
Jay Hoeschler (appt to 1st full term 06/20/17) 06/30/21
SENIOR CITIZEN HOUSING CORPORATION BOARD: (4Yr Term — No Term Limit - All Residents)
James Latta (apptd 7/18/17 to 2nd 4 yr term) 06/30/21
Paul Lanyi (appt 06/19/18 to a partial term) 06/30/21
TECHNOLOGY COMMITTEE: (4 Yr Term — No Term Limit - All Residents)
Madelon Smith (apptd 6/19/18 to a partial term) 06/30/21
Vacant (Joseph Lipsey apptd 06/19/18 to a partial term — RESIGNED) 06/30/21
AUGUST
INVESTMENT ADVISORY COMMITTEE: (4 Yr Term - No Term Limitation; 2 Residents or 1 Res/1 Bus. Person)
Stephen Smetana (re-apptd 06/19/18 to 20d full 4 -yr term)
08/30/21
NOVEMBER
CAPITAL IMPROVEMENT PROGRAM ADVISORY COMMITTEE: (4 Yr Term — No Term Limit — 2 Business/3 Residents)
Eric Kari (re-apptd to 6119/18 to a partial term)
Council Approval:
Posted:
By:
11/30/21
THIS LIST IS TO REMAIN POSTED ALL YEAR -- DO NOT REMOVE
53
CITY OF
E LS E GU N D O City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading: Staff Presentation
TITLE:
Amendment to Administrative Order # 2
RECOMMENDATION:
Ratify amendment to Administrative Order #2.
FISCAL IMPACT: None.
BACKGROUND:
When a local or state emergency is declared, the City's municipal code provides for the
carrying out of plans for the protection of persons and property within the City. In such
emergency, the City Manager serves as the Director of Emergency Services ("Director").
The Director is empowered to, among other things, make and issue rules and regulations
on matters reasonably related to the protection of life and property, and to acquire
equipment, materials, supplies and services without following the City's standard
purchasing procedures. However, such rules and regulations must be confirmed at the
earliest practicable time by the city council. (ESMC §§ 2-2-5).
DISCUSSION:
On December 1, 2020 the City Manager amended Administrative Order # 2 to permits
The Lakes Golf Course to remain open unless or until it is duly and lawfully ordered to be
closed by either the State of California or the Los Angeles County Health Officer. The
operation of the course must be in compliance with all applicable health protocols and the
Fairway Cafe restaurant and pro shop must remain closed. The fees stated in the
Administrative Order remain unchanged.
The amended Administrative Order also permits, if allowed under the most recent orders
of the State of California and the Los Angeles County Health Officer, a gym or fitness
business lawfully operating within EI Segundo to apply to conduct the business on a
temporary basis at designated areas within Recreation Park. The City's Director of
Community Services is authorized to issue an "Outdoor Fitness Instruction Permit" to
such a business. Proof of insurance will be required for issuance of the permit.
The Director requests the City Council to ratify these decisions.
54
E40
Ratify Amendment to Administrative Order # 2
December 15, 2020
Page 2of2
CITY STRATEGIC PLAN COMPLIANCE:
Goal 2: Support Community Safety and Preparedness
Objective A: EI Segundo is a safe and prepared community.
PREPARED BY: Randal A. Collins, Emergency Manage ent CoordinatovA,� j
REVIEWED BY: Barbara Voss, Deputy City Manager
APPROVED BY: Scott Mitnick, City Manager e4a., Sw�)
ATTACHED SUPPORTING DOCUMENTS:
1. Administrative Order # 2 (amended)
6101
Elected Officials
Drew Boyles,
Mayor
Chris Pimentel,
Mayor Pro Tem
Carol Pirsztuk,
Councilmember
Scot Nicol,
Councilmember
Lance Giroux,
Councilmember
Tracy Weaver,
Citi- Clerk
Matthew Robinson,
City Treasurer
Appointed Officials
Scott Mitnick,
City Manager
Mark D. Hensley,
City AIto rney
Department Directors
Barbara Voss,
Deputy City Manager
Melissa McCollum,
Community Services Director
Sam Lee,
Development Services Director
Joseph LiOio,
Finance Director
Chris Donovan,
Fire Chief
Donna Peter,
Human Resources Director
(Interim)
Charles Mallory,
IT Director
Bill Whalen,
Police Chief
Elias Sassoon,
Public Works Director
Office of the City Manager
AMENDMENT TO ADMINISTRATIVE ORDER NO. 2
Issued: December 1, 2020
By virtue of authority vested in me as the City Manager of the City of El Segundo pursuant to the
provisions of the El Segundo Municipal Code, Section 2-2-5, to promulgate, issue, and enforce
rules, regulations, orders, and directives, I hereby declare that the current Administrative Order
No. 2, revised August 11, 2020, to be amended to add the following paragraphs. This Amendment
to Administrative Order No. 2 will take effect immediately and remain in effect until the current
COVID-19 emergency is terminated by City Council resolution:
The Lakes at El Segundo Golf Course
The Lakes at El Segundo Golf Course, including the Driving Range, which reopened May 9,
2020, and will remain open unless or until it is duly and lawfully order closed by either the State
of California or the Los Angeles County Health Officer. In accordance with applicable State and
County orders, social distancing and other safety protocols will be implemented and adhered
to, and the Fairway Cafe restaurant and pro shop will remain closed. The fees stated in the
administrative order remain unchanged.
Outdoor Fitness instruction at Recreation Park
Effective the date of this order, and if allowed under the most recent orders of the State of California
and the Los Angeles County Health Officer, a gym or fitness business lawfully operating in the
City may apply to conduct the business on a temporary basis at designated areas within Recreation
Park. The City's Director of Community Services is authorized to issue an "Outdoor Fitness
Instruction Permit" to such a business. Proof of insurance will be required for issuance of the
permit. Those interested in applying for such a permit may contact Recreation Supervisor Shawn
Green at (310) 524-2700 or sgreen@elsegundo.org for more information.
A violation of any of the above prohibitions constitutes a misdemeanor under El Segundo
Municipal Code Section 2-2-8 and is punishable by fines not to exceed $1,000 or imprisonment
not to exceed six months.
Scott Mitnick
City Manager/Director of Emergency Services
City of El Segundo
Date: December 1, 2020
56
CITY OF
ELSEGUNDO
TITLE:
City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading:Staff Presentation
Review of water and wastewater rate studies, direct staff to commence with Proposition
218 protest procedures regarding proposed water and sewer rates for FY 2020-2021
through 2024-2025, and set a public hearing to consider an ordinance adjusting water
and wastewater rates and fees.
RECOMMENDATION:
1. Receive potable water and recycled water rate study presentation and proposed
potable and recycled water rate adjustments
2. Receive wastewater rate study presentation and proposed wastewater rate
adjustments
3. Direct staff to implement Proposition 218 protest ballot procedures for proposed
potable water, recycled water, and wastewater rate adjustments
4. Adopt a resolution establishing procedures for mailing, handling and counting
Proposition 218 ballots
5. Set a Public Hearing on F e b r u a r y 16, 2021 for Council consideration
of the proposed water, recycled water, and wastewater rate adjustments.
FISCAL IMPACT:
As proposed, water and wastewater rates will be adjusted over the next five fiscal years
as follows:
Utilitv
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
Water
0%
3%
3%
3%
3%
Wastewater
9%
9%
9.5%
9.5%
9.5%
Water rates are proposed to adjust on January 1 of each year from January 1, 2022 to
January 1, 2025. Wastewater rates are proposed to adjust on April 1, 2021 and then on
January 1 of each year from January 1, 2022 to January 1, 2025.
These proposed adjustments are necessary to ensure that the operating budgets of both
the Water Fund and Wastewater Fund remain balanced in each fiscal year. The
Wastewater Fund will not be structurally balanced until the end of FY 2024-25.
57
Water & Wastewater Rates Prop 218
December 15, 2020
Page 2 of 14
BACKGROUND:
The City of EI Segundo owns and operates its own water and wastewater collection
systems. These operations are set up as separate business enterprise funds, which are
distinctly separate (financially) from the City's G e n e r a I F u n d. As an enterprise,
each operation is responsible for covering its own expenses and likewise generates
its own income, making each self-sustaining. However, California's Proposition 218 (the
"Right to Vote on Taxes Act" of 1996) governs how municipalities can raise
w a t e r/ w a s t e w a t e r rates to cover the expenses associated with operating each
enterprise. Per Proposition 218, rates may be established for up to five years.
Thereafter, a new Prop 218 process would is required. The last time the City initiated
a Prop 218 protest ballot process for water and wastewater rates was in 2014. The
ability to raise water and wastewater rates any further has expired. Thus, in order to
establish new water and wastewater rates for the next five years, the City must now
conduct a new Proposition 218 protest ballot process.
Water Fund Financial Plan
The revenue calculated for each fiscal year in the Financial Plan is a function of the
number of accounts, account growth, water use trends, and existing rates. Based on
discussions with City staff. The Financial Plan assumes a conservative 0% growth in
customer accounts and per capita water usage.
Table 1 shows the estimated FY 2019-2020 number of accounts and water use by
customer class. The number of accounts and water use are based on FY 2018-2019
account and water use data and the assumption of no growth. The number of accounts
in Table 1 does not include Fire Protection accounts.
Table 1: Water Use in Cd by Customer Class - FY 2019
SFR
2,998
361,251
60.7%
5.0%
Non-Residential/Multi-Family
1,878
1,184,820
38.0%
16.3%
Chevron
1,559,501
21.4%
Recycled
66
4,174,777
1.3%
57.3%
Total
4,942
7,280,349
100.0%
100.0%
Water & Wastewater Rates Prop 218
December 15, 2020
Page 3of14
To ensure future Operating and Maintenance (O&M) costs are reasonably projected,
informed assumptions about inflationary factors, water costs, and water use were
identified. Table 2 shows the inflationary categories used to escalate the City's FY 2019-
2020 O&M expense budget, which is part of the Financial Plan. The inflationary factors
in Table 2 reflect long-term averages for general and capital (construction) inflation and
energy prices.
Table 2: Inflationary Assumptions
1 Salaries
3.0%
3.0%
3.0%
3.0%
3.0%
2 Benefits
8.0%
8.0%
8.0%
8.0%
8.0%
3 Supplies
3.0%
3.0%
3.0%
3.0%
3.0%
4 Electricity
5.0%
5.0%
5.0%
5.0%
5.0%
5 Fuel
3.0%
3.0%
3.0%
3.0%
3.0%
6 Contractual
3.0%
3.0%
3.0%
3.0%
3.0%
7 Purchased Water - Potable
6.0%
6.0%
6.0%
6.0%
6.0%
8 Purchased Water - Reclaimed
6.0%
6.0%
6.0%
6.0%
6.0%
9 Equipment
3.0%
3.0%
3.0%
3.0%
3.0%
10 General
3.0%
3.0%
3.0%
3.0%
3.0%
11 Sewage Treatment
6.0%
6.0%
6.0%
6.0%
6.0%
12 Capital Projects
3.1%
3.1%
3.1%
3.1%
3.1%
The data and assumptions shown in Table 2 were used to develop the City's Water
Financial Plan. The plan uses projected annual operating expenses and revenues,
capital expenditures, and reserve fund balances to estimate the amount of additional rate
revenue needed each year. The following sub -sections provide a discussion of O&M
expenses, Capital Improvement Plan (CIP), reserve funding, projected revenue under
existing rates, and revenue adjustments needed to ensure the fiscal sustainability and
solvency of the Water Enterprise.
The total expenses related to operating a municipal water department can be broken
down into three basic categories, which have certain associated costs. These include:
■ Purchase of the actual commodity - potable and recycled water
• O&M (staff salaries/benefits, utilities, maintenance, supplies, insurance/ claims,)
• Capital Program (infrastructure improvements and replacements)
WE
Water & Wastewater Rates Prop 218
December 15, 2020
Page 4 of 14
Each of these categories are further described below.
Table 3 shows the City's O&M budget by fiscal year. The O&M budget incorporates the
inflationary factors in Table 2, using the FY 2020 budget as the base year. Approximately
84% of the O&M budget is water purchase costs, which are not directly controlled by the
City.
Table 3: Projected O&M Expenses
1 Salaries
$ 1,160,791
$ 1,195,615
$ 1,231,483
$ 1,268,428
$ 1,306,48C
$ 1,345,675
2 Benefits
649,147
701,079
757,165
817,738
883,157
953,81C
3 Supplies
248,800
256,264
263,952
271,870
280,027
288,427
4 Utilities
31,80C
33,366
35,010
36,735
38,545
40,445
5 Potable Water
10,573,713
11,166,623
11,836,620
12,546,818
13,299,627
14,097,604
6 Recycled Water
13,227,296
13,574,090
14,388,535
15,251,848
16,166,958
17,136,976
7 Service f harges
2,445,867
2,519,243
2,594,820
2,672,665
2,752,845
2,835,43C
8 Total: Water Operating Expenses
5 28,337,414
$ 29,446,280
5 31,107,586
$ 32,866,101
$ 34,727,639
$ 36,698,368
Table 4 summarizes the City's five-year Capital Improvement Plan (CIP). The City is
funding capital investment through rate revenue and reserve funds (also known as PAY -
GO funding) rather than issuing debt.
Table 4: CIP
1 Water Main Improvement on Grand Ave. $1,500,000 - - - - -
2 Water Infrastructure Replacement - 2,300,000 3,000,000 3,000,000 3,000,000 3,000,000
Debt Service
The City does not currently have any outstanding utility debt and the Financial Plan
does not propose issuing any bonds in the study period.
Reserve Policies
City Council previously discussed reserve policies for the Water Enterprise. Based on
City Council direction, the City should maintain the following in reserves:
Operating Reserve equal to four months of O&M expenses Capital Reserve equal
to the average annual forecasted capital spending of the next 10 years. Rate
Stabilization Reserve equal to 25% of annual potable and surcharge revenue
.%
Water & Wastewater Rates Prop 218
December 15, 2020
Page 5 of 14
The water utility currently has sufficient cash to fully fund each of these reserves.
A Financial Plan was developed using projected operating and capital expenses,
revenues, and resulting yearly cash balances for the Financial Plan study period - from
FY 2020-2021 to FY 2024- 2025. The Financial Plan is used to determine the overall
revenue adjustments required to ensure water enterprise financial stability. Revenue
adjustments represent the average increase in rates as a whole; rate changes for
individual classes will depend on the cost of service — since a cost of service analysis
allocates costs to each customer class. Therefore, the revenue adjustment may not be
the same as the average bill impact for each customer class. This study establishes rates
for FY 2020-2021 through FY 2024-2025.
The proposed revenue adjustments will help ensure adequate revenue to fund operating
expenses, capital expenditures, and compliance with any bond covenants. Financial Plan
modelling assumes revenue adjustments will occur in January of each year. The
proposed revenue adjustments would enable the City to cover operating expenses and
execute the CIP shown in Table 4.
Table 5 shows the proposed revenue adjustments selected by the City. The rates
presented are based on these revenue adjustments.
Table 5: Proposed Rate Adjustments
Water Revenue Adjustment 0.0% 3.0% 3.0% 3.0% 3.0%
Table 6 shows the City's cash flow projection over the study period assuming the revenue
adjustments shown in Table 5. Line 1 shows water rate revenue, including the fixed
monthly capacity charge and volume charge. Line 2 shows the revenue from the
surcharge applied to recycled water by the City. Line 3 shows the additional revenue from
the revenue adjustments. Revenue on line 4 shows the charges from West Basin the
City passes through and collects from recycled customers; this revenue equals the
expense on line 6 of Table 3.
Line 11 shows the yearly ending cash flow after subtracting operating and capital
expenses from total revenue (in line 6). Non -Rate revenue includes meter installations,
interest income, and other miscellaneous items. Balances for each of the reserve funds
are tracked in lines 12 to 14.
61
Water & Wastewater Rates Prop 218
December 15, 2020
Page 6 of 14
Table 6: Five -Year Water Operating Cash Flow
Revenue$
1 Fixed Monthly
2 Recycled Surcharge
3 Additional Revenue
4 Recycled Pass-through
5 Non -Rate Revenue
6 Total: Revenue
7 Revenue Adjustment
$ 16,456,948 $16,456,948 $ 16,456,948 $ 16,456,948 $ 16,456,948 $16,456,948
4,168,194
Expenses
8
O&M
9
Capital
10
Total: Expenses
11
Op. Surplus/(Deficit)
12
Op. Reserve
13
RS. Reserve
14
Cap. Reserve
15
Total Reserve
16
Target Balance
17
CIP (Uninflated)
$ 16,456,948 $16,456,948 $ 16,456,948 $ 16,456,948 $ 16,456,948 $16,456,948
4,168,194
4,161,513
4,161,513
4,161,513
4,161,513
4,161,513
-
-
463,915
1,096,387
1,747,832
2,418,821
13,227,296
13,574,090
14,388,535
15,251,848
16,166,958
17,136,976
171,36D
141,985
130,777
135,826
139,316
140,827
$ 34,023,798
$34,334,536 $
35,601,689
$ 37,102,521 $
38,672,567
$40,315,085
15.45
0.00•x6
3.00•x6
3.00%
3.00%
3.00%
$ 28,337,414
$29,446,280 $
31,107,586
$ 32,866,101 $
34,727,639
$36,698,368
4,750,OOD
2,650,OOD
3,350,000
3,400,OQO
3,500,00.0
3,600,000
$ 33,087,414
$32,096,280 $
34,457,586
$ 36,266,101 $
38,227,639
$40,298,368
$ 936,384
$ 2,238,257 $
1,144,103
$ 836,420 $
444,928
$ 16,717
22,685,032
20,443,420
21,453,127
22,151,119
22,453,466
22,323,325
-
4,479,869
4,614,265
4,752,693
4,895,274
5,042,132
3,250,000
3,528,930
3,690,666
3,803,884
3,915,540
4,022,497
$ 25,935,032
$28,452,219 $
29,758,058
$ 30,707,696 $
31,264,280
$31,387,954
17,027,569
17,648,839
18,511,590
19,341,568
20,213,075
21,128,369
1,500,000
2,300,000
3,000,000
3,000,000
3,000,000
3,000,000
Proposed Water Rates - Fixed Charge and Volumetric Rates
Table 7 shows the derivation of the monthly fixed service charge by meter size in column
A, which is the addition of columns D through G. The water supply, meters, and public
fire charges increase in proportion to AWWA Capacity ratios (shown in column 13), while
the customer charge is the same at each meter size (column F).
Table 7: Monthly Service Charge Derivation by Meter Size
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
1 5/8" and 3/4"
1.00
3,152 $
1.25 $
3.91 $
8.37 $
4.63
$ 18.17
2 1"
1.67
859
2.09
6.52
8.37
7.72
24.71
3 11/2"
3.33
359
4.18
13.05
8.37
15.45
41.04
4 2"
5.33
350
6.69
20.87
8.37
24.71
60.65
5 3"
11.67
83
14.64
45.66
8.37
54.06
122.73
6 4"
21.00
42
26.35
82.19
8.37
97.31
214.23
7 6"
43.33
29
54.38
169.61
8.37
200.80
433.15
8 8"
93.33
1
117.12
365.31
8.37
432.50
923.29
9 10"
140.00
1
175.67
547.96
8.37
648.74
1,380.75
Water & Wastewater Rates Prop 218
December 15, 2020
Page 7 of 14
Table 8 shows the proposed monthly Fixed Service Charge for the next five fiscal years.
They are derived by applying the revenue adjustments shown in Table 5 to the service
charges for FY 2020 shown in Table 7. Charges are rounded up to the nearest whole
penny and may not match the unrounded values in Table 7.
Table 8: Five Year Fixed Service Charges
5/8" and 3/4"
$ 11.95
$ 18.18
$ 18.73
$ 19.30
$ 19.88
$ 20.48
1"
27.10
24.71
25.46
26.23
27.02
27.84
11/2"
33.94
41.05
42.29
43.56
44.87
46.22
2"
62.90
60.65
62.47
64.35
66.29
68.28
3"
141.61
122.74
126.43
130.23
134.14
138.17
4-'
251.25
214.23
220.66
227.28
234.10
241.13
6"
469.74
433.16
446.16
459.55
473.34
487.55
8"
823.49
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,288.35
1,380.75
1,422.18
1,464.85
1,508.80
1,554.07
Table 9 shows the proposed five-year volumetric rates by escalating the volumetric rates
derived in Table 10, which have been rounded to the nearest whole penny, by the
proposed revenue adjustments shown in Table 5.
Table 9: Five -Year Volumetric Rates
Residential
Tier 1 $ 2.82 $ 2.88 $ 2.97 $ 3.06 $ 3.16 $ 3.26
Tier 2 5.19 5.47 5.64 5.81 5.99 6.17
Tier 3 5.90 6.86 7.07 7.29 7.51 7.74
Non -Residential $ 3.43 $ 4.17 $ 4.30 $ 4.43 $ 4.57 $ 4.71
Chevron $ 3.43 $ 4.90 $ 5.05 $ 5.21 $ 5.37 $ 5.54
Table 10 shows the total volumetric rate derivation for all customers in FY 2019-2020,
which is the summation of all rate components.
63
Water & Wastewater Rates Prop 218
December 15, 2020
Page 8 of 14
Table 10: Derivation of Rates by Tier and Class
(A)
(B)
(c)
(D)
(E)
(F)
(G)
Single Family Residential
1 Tier 1 $
3.35 $
1.66 $
0.33 $
(0.08) $
(2.38) $
2.88
2 Tier 2
3.35
1.66
1.05
-
(0.59)
5.47
3 Tier 3
3.35
1.66
1.84
6.85
4 Non-Residential/Multi-Family
3.35
1.66
0.89
(0.06)
(1.67)
4.17
5 Chevron
3.35
1.66
0.96
(0.06)
(1.02)
4.90
The following table presents a comparison of a 10 Ccf bill (Typical Household) in EI
Segundo in FY2019-2020 and FY 2020-2021 to equivalent bills in several comparable
communities in 2020. The City's current rates are lower than many others and continue
to compare favorably into the future.
Table 11: Water Bill Comparison (typical family)
$123.01
$49.57
$60.37 $62.42 $65.80 $67.77 $68.73
$73.06
$53.39 $55.97
$40.15
EI Segundo EI Segundo Hermosa Inglewood GS Water CA American CA Water Manhattan CA Water PV Lomita LA County
Current Proposed 2021 Beach Hawthorne Beach Waterworks
■ Fixed ■ Variable ■ Surcharges
Water & Wastewater Rates Prop 218
December 15, 2020
Page 9 of 14
Wastewater Fund Financial Plan
The City of EI Segundo is responsible for the O&M of an extensive wastewater collection
system; however, does not provide wastewater treatment. Wastewater on the east side
of the City is sent to Los Angeles County Sanitation District (LACSD) for treattment. The
County bills those customers directly on their annual property tax bills. Wastewater from
the west side is treated by the City of Los Angeles, which bills the City of EI Segundo.
The City currently has three sets of rates. Customers on the west side pay a monthly
treatment fee based on meter size and which varies by customer class. All customers pay
a monthly service fee which also varies by meter size and class. Table 12 presents the
current rates in effect in FY 2019-2020.
Table 12: Current Wastewater Service Charges
Treatment Fee
3/4"
$ 16.63
$ 27.48
$
19.62 $
19.62
$ 16.27
$
16.27
$ 15.38
$
15.38
1"
21.15
38.50
48.97
48.97
21.99
21.99
24.35
24.35
11/2"
22.87
58.74
90.18
90.18
63.55
63.55
37.06
37.06
2"
24.29
131.73
237.73
237.73
193.99
193.99
56.19
56.19
3"
447.75
440.61
440.61
486.29
486.29
139.34
139.34
4"
616.10
1,882.76
1,882.76
690.89
690.89
165.00
165.00
6"
1,882.76
1,882.76
690.89
690.89
165.00
165.00
Service Fee
3/4"
$ 6.60
$ 10.56
$
7.26
$ 6.60
$
7.26
$ 6.60
$
6.60
1"
7.92
14.85
18.81
7.26
7.92
18.15
9.24
9.24
11/2"
8.58
22.44
33.00
46.21
24.42
33.00
13.86
13.86
2"
9.24
49.50
85.81
132.00
72.60
72.60
19.81
19.81
3"
171.62
184.81
184.81
184.81
297.02
52.81
52.81
4"
231.02
693.05
297.02
264.02
462.03
66.00
66.00
6"
693.05
759.05
264.02
1,254.10
66.00
66.00
Volume Charge
$ 0.73
$ 0.91
$
1.04 $
1.04
$ 1.04
$
1.04
$ 0.91
$
0.91
NUMBER OF ACCOUNTS AND WATER USE
Table 13 shows the number of wastewater accounts and the wastewater flow (based on
water use for wastewater customers) in Ccf for each customer class in FY 2019. As with
the water utility demand projection, the Financial Plan assumes no growth in customer
accounts or increased wastewater generation, on a per capita basis, in future years.
65
Water & Wastewater Rates Prop 218
December 15, 2020
Page 10 of 14
Table 13: Wastewater Accounts and Wastewater Use in Hundred Cubic Feet
3/4"
2,605
247
161
-
115
1
16
100,734
3,145
1"
381
276
92
10
50
21
12
Total: Sewer Operating Expenses
842
11/2"
6
219
31
48
21
16
5
346
2"
2
101
24
87
19
69
16
4
322
3"
3
3
28
2
7
7
1
51
4"
5
4
13
3
13
3
1
42
6"
1
10
1
15
-
-
27
2,994
851
316
196
211
142
59
6
4,775
Use (Ccf)
361,205
267,389
118,555
309,014
51,309
344,064
20,052
14,492
1,486,080
WASTEWATER O&M EXPENSES
Wastewater O&M expenses were projected by applying the inflation factors in Table 2 to
the FY 2020 O&M budget. Table 14 summarizes the budgeted and projected O&M
expenses during the Study period. The forecast of treatment fees for the study period is
based on the projections provided by the City of Los Angeles. Based on actions taken
by the City of Los Angeles, wastewater treatment costs will increase significantly in 2021.
Table 14: Projected Wastewater O&M Expenses
Salaries
$ 581,630 S
599,079 $
Benefits
355,099
383,507
Supplies
97,800
100,734
Utilities
65,000
68,172
Treatment Fees
1,999,993
2,737,200
ServicelCharges
1,100,412
1,133,42-4
Total: Sewer Operating Expenses
$ 4,199,934 $
5,022,116 $
617,051 S
635,563 $
654,630 $
674,269
414,187
447,322
483,108
521,757
103,756
106,869
110,075
113,377
71,500
74,993
78,657
82,502
2,882,500
2,829,200
2,562,800
2,834,900
1,167,427
1,202,45.0
1,238,523
1,275,679
5,256,422 $ 5,296,396 S 5,127,793 $ 5,502,484
Table 15 summarizes the City's five-year CIP. The proposed capital improvement
program will be funded entirely through rate revenue and reserve funds, also known as
PAY -GO funding, rather than issuing debt.
Table 15: Wastewater Capital Improvement Projects
�ewer Projects FY 19 -20 FY 20-21 FY 21-22 FY 2 2-23 FY 23-24 FY 24-25
Lifeguard Pump Station $ 650,000 S $ - $ . S - $ -
Wastewater Infrastructure Replacement - 150,000 500,000 500,000 500,000 500,000
•O
Water & Wastewater Rates Prop 218
December 15, 2020
Page 11 of 14
The City should maintain the following reserve policies:
G Operating reserve equal to four months of O&M expenses
Capital reserve equal to the average annual forecasted capital spending of the
next ten years
The wastewater utility is currently achieving approximately 60% of this target and is
forecasted to sustain significant deficits in the future without revenue adjustments.
Table 16: Wastewater Fund Balance Forecast
Operating Reserve
$ 1,088,392 $
420,552 $
149,949 $
839,873
$ 1,803,442
Target
1,651,107
1,728,139
1,741,281
1,685,850
1,809,036
Capital Reserve
$ 45,365 $
413,988 $
816,191 $
951,467
$ 1,019,293
Target
716,883
806,240
861,161
917,779
976,146
Total Reserves
$ 1,133,757 $
834,539 $
966,140 $
1,791,340
$ 2,822,735
Target
2,367,990
2,534,379
2,602,442
2,603,628
2,785,182
To ensure that the Wastewater Enterprise has adequate revenues to fund operating and
capital expenditures, as well as funds sufficient reserves, revenue adjustments in Table
1 Error! No text of specified style in document. are recommended. The City has not
implemented a wastewater rate increase since 2016. As a result, significant adjustments
are needed at this timerequiring significant adjustments. The proposed rate adjustments
will allow the City to achieve its reserve targets by 2025.
Table 1 Error! No text of specified style in document.: Proposed Wastewater Revenue
Adjustments
Wastewater Rate Adjustment 9.0% 9.0% 9.5% 9.5% 9.5%
Table 18 shows the cash flow projection with the proposed revenue adjustments from
Table 1 Error! No text of specified style in document.. The proposed Financial Plan meets
the City's financial needs by meeting long term reserve goals. As indicated by the
negative net cash flow, the City plans to use fund balances to minimize customer impacts
as much as possible. Figure 1 presents the Financial Plan graphically.
67
Water & Wastewater Rates Prop 218
December 15, 2020
Page 12 of 14
Table 18: Wastewater Enterprise Proposed Financial Plan Pro -Forma
Revenues
Rate Revenue
$
4,493,170
$ 4,493,170 $
4,493,170
$ 4,493,170 $
4,493,170 $
4,493,170
Additional Revenue
-
303,289
734,970
1,225,522
1,768,797
2,363,684
Non -Rate Revenue
316,2Q0
261,015
260,44,2
257,1Q3
255,750
259,199
Total: Revenue
$
4,809,370
$ 5,057,474 $
5,488,582
$ 5,975,794 $
6,517,717 $
7,116,053
Rate Increase
9.00•.6
9.00%
9.50.6
9.50%
9.50%
Expenses
O&M
$
4,199,934
$ 5,022,116 $
5,256,422
$ 5,296,396 $
5,127,793 $
5,502,484
Transfer to Capital
700,000
150,000
900,000
950,000
700,000
650,000
Total: Expenses
$
4,899,934
$ 5,172,116 $
6,156,422
$ 6,246,396 $
5,827,793 $
6,152,484
Op. Surplus/(Deficit)
$
(90,564)
$ (114,642) $
(667,840)
$ (270,602) $
689,924 $
963,569
Op. Reserve
1,203,035
1,088,392
420,552
149,949
839,873
1,803,442
Cap. Reserve
50,000
45,365
413,988
816,191
951,467
1,019,293
Total Reserve
$
1,253,035
$ 1,133,757 $
834,539
$ 966,140 $
1,791,340 $
2,822,735
Target Balance
2,061,006
2,367,990
2,534,379
2,602,442
2,603,628
2,785,182
CIP (Uninflated)
650,000
150,000
500,000
500,000
500,000
500,000
Figure 1: Wastewater Financial Plan
Wastewater Total Fund Balance
$3.0
c
0
_ $2.5
2
$ 2.0 j
$1.5 f
$1.0 -
$0.5
2020 2021 2022 2023 2024 2025
.. Combined Balance Target
.:
Water & Wastewater Rates Prop 218
December 15, 2020
Page 13 of 14
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a "Project"
as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA.
Thus, no environmental review is necessary.
NEXT STEPS:
• An informational video will be available to the public on the City's website that
provides an educational overview on the proposed rates — December 2020
• The Prop. 218 rate notices will be mailed out to property owners and tenants -
December 30, 2020
• Along with the notices, a protest ballot for the proposed water rates and protest
ballot for the proposed wastewater rates will be included with the December 30,
2020 mailing
• A self -use rate calculator will be available on the City's website for use by the public
to determine what the impacts of the proposed rates will be on their bill — December
2020
• Ratepayers/Property owners will be able to submit a protest ballot - December 31,
2020 — February 16, 2021
• Public hearing on the proposed water and wastewater rates — February 16, 2021
o Protest ballots will be counted by an independent third party
o If there is less than 50% of protest ballots received, the public hearing on
the rate changes can proceed and City Council can adopt the five-year rate
structure
• New wastewater rates take effect — April 1, 2021
• Subsequent water and wastewater rate adjustments — January 1, 2022, January
1, 2023, January 1, 2024, and January 1, 2025
We
Water & Wastewater Rates Prop 218
December 15, 2020
Page 14 of 14
CITY STRATEGIC PLAN COMPLIANCE:
Goal: 5 Champion Economic Development and Fiscal Sustainability:
Objective: B EI Segundo approaches its work in a financially strategic and
responsible way
ORIGINATED BY: Joseph Lillio, Chief Financial Officer
REVIEWEWD BY: Barbara Voss, Deputy City Manager
APPROVED BY: Scott Mitnick, City Manager �- M ,
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution regarding the Proposition 218 Procedures
2. Draft Proposition 218 Rate Notice to Parcel Owners and Renters
3. Sample Protest Ballot for Water and Wastewater Proposed Rates
4. Water (Potable & Recycled) & Wastewater Rate Study Report
N:asotelo\Scott\Staff Reports\Water Wastewater Report
WE
RESOLUTION NO. 4888
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO ESTABLISHING PROCEDURES FOR INCREASING
WATER, WASTEWATER, AND SOLID WASTE FEES IN
ACCORDANCE WITH THE REQUIREMENTS OF PROPOSITION 218.
The City Council for the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares as follows:
A. On July 24, 2006, the California Supreme Court confirmed that charges
for water and wastewater services are subject to Proposition 218
procedures (Bighorn -Desert View Water Agency v. Verjil (2006) 39 Ca1.4rn
205);
B. The City Council anticipates that there will be future increases in water,
wastewater, and solid waste rates. Adopting the policies and procedures
set forth in this Resolution will help implement the requirements set forth
in Article XIIID of the California Constitution and help ensure that the
rights of those persons that are authorized to protest service charges are
preserved;
C. Elections Code § 4000(c)(9) provides that any protest ballot proceeding
required or authorized by California Constitution Articles XIIIC or XIIID
may be conducted wholly by mail. In the event a protest ballot process is
required, the City Council seeks to achieve higher awareness of those
affected by the proposed increase, provide an orderly protest process for
both those receiving the ballots and the City, ensure to the extent
practicable that there is some verification process regarding the protests
received, and to reduce the costs of the protest ballot process; and
D. Adopting this Resolution is in the public interest for the reasons set forth
above and as further stated within Article XIIID and the Proposition 218
and state legislation relating to the implementation of Proposition 218.
SECTION 2: The City Council adopts the procedures set forth in this Resolution for
conducting all proceedings required by California Constitution Article XIIID for utility
fee (as defined below) increases. Where no specific procedures are imposed by Article
XIIID or the Proposition 218 Omnibus Implementation Act (Government Code §§ 53750,
et seq.), the procedures set forth in this Resolution apply. This Resolution may be
referred to as the "Proposition 218 Protest Proceedings Resolution."
SECTIO�1' 3: Definitions. Unless the contrary is stated or clearly appears from the
context, the following definitions govern the construction of the words and phrases used
in this Resolution. Words and phrases not defined by this Resolution will have the
Page 1 of 6
71
meaning set forth in California Constitution Article XIIID or the Proposition 218
Omnibus Implementation Act.
A. "Act" means the Proposition 218 Omnibus Implementation Act found at
Government Code §§ 53750, et seq.;
B. "Article 13D" means California Constitution Article XIIID, § 6;
C. "Manager" means the City Manager or designee;
D. "Property owner" has the same meaning set forth in Article 13D and also
pursuant to the Act includes tenancies of real property where tenants are
directly liable to pay the proposed water or wastewater fee or charge;
E. "Protest" means a written protest filed with the City Clerk in accordance
with Article 13D, the Act, and this Resolution as described in Article 13D,
§ 6(a)(2);
F. "Utility fee" means a fee or charge imposed for potable water, wastewater,
or solid waste services provided to customers in accordance with the El
Segundo Municipal Code ("ESMC"), and other applicable law, by the City
of El Segundo.
SECTION 4: Calculation of the fee and proposed increase. Utility fees must be
calculated in accordance with the recommendations in the latest independent Rate Study
report or City's internal financial analysis.
SECTION 5: Administration of Proceedings. The City Manager, or designee, is
authorized to implement this Resolution in a manner consistent with the California
Constitution and other applicable law.
SECTION 6; Nntiee Notice of a nrnnncPrj utility fee increase is nrnvideri ac fnllnwc;
A. In general, the City will identify the record property owner(s) of each
parcel to which the utility fee would be applied from it's billing system
database and/or the latest equalized tax roll produced by Los Angeles
County. The City's Utility Billing database and the equalized tax roll is
presumptive evidence of ownership of the land for voting purposes.
B. If either the City's Utility Billing Database or Los Angeles County
Recorder's website shows that more than one property owner has an
interest in a parcel, all property owners (each property owner) must
receive notice at the address shown for the property owner. Both property
owners and parties financially responsible for paying the fee will be
provided notice. In the event that notice is sent for a utility service for
which the City is not currently charging a fee, the notices will be sent to
Page 2 of 6
72
the property owner based upon the Los Angeles County Recorder's
website and to the street address to which the service would be provided if
the address is different than the address designated for the property owner
on the Los Angeles County Recorder's website.
C. The notice must be sent by first class mail at least forty-five (45) days
before the date set for the public hearing on the utility fee.
D. The form of the notice of hearing will be approved by the City Council
and be on file with the City Clerk.
E. The notice provided by these procedures, in accordance with Article 13D,
supersedes and is in lieu of notice required by any other statutes to levy or
increase a utility fee.
F. The City Clerk, or designee, may certify the proper mailing of notices by
an affidavit which constitutes conclusive proof of mailing in the absence
of fraud.
G. Failure of any person to receive notice does not invalidate the proceedings.
SECTION 7: Protests against Utility Fee Increases.
A. The property owner(s) of parcels subject to the proposed fee increase are
entitled to a single protest for each parcel. When a parcel is held as
community property or in joint tenancy or as a tenancy in common, any
spouse or joint tenant or tenant in common is presumed to have authority
to cast a protest on behalf of such parcel.
B. Executors, administrators, and guardians may cast a protest on behalf of
the estate represented by them. If such representatives are shown on the
latest a,33essment roll as mv;nor taxe8 and assessments on behalf of the
property owner(s), that fact establishes the right of such representative(s)
to cast a protest. If such representatives are not shown on the latest
assessment roll, the representatives may file with the City Clerk, at any
time before the commencement of the public hearing, or the date of the
election, as the case may be, certified copies of the written documentation
establishing the legal representation.
C. The protest of any public or quasi -public corporation, private corporation,
or unincorporated association may be signed by any person so authorized
in writing by the board of directors or trustees or other managing body
thereof.
D. The Manager is designated as the voting representative with respect to
City -owned property.
Page 3 of 6
73
E. In any case where the documentation provided to the City Clerk in is
ambiguous or unclear, the City Attorney will determine whether the
documentation is adequate for the purpose provided.
F. In the event a property owner loses or misplaces a protest ballot, upon
request by the property owner the City will provide a replacement protest
ballot unless a properly filled out protest ballot has already been received
for the parcel of property.
SECTION 8: Public Hearing.
A. Only protest ballots that (i) were provided by the City to the property
owner in the form approved by the Council and (ii) are properly filled out
and legibly signed by an eligible property owner is made will be counted
as a valid protest. Only one protest shall be counted for each parcel of
property regardless of the number of protests filed by property owners for
the parcel.
B. The City Clerk must stamp each written protest the date and time it is filed
with the City Clerk for purposes of establishing whether the protest was
filed before the close of the public testimony portion of the public hearing.
No protest received after the close of the public testimony portion of the
public hearing can be counted in determining the amount of protest, but
the Council may, in its discretion, consider such protests in making its
decision. Written protests may be withdrawn in writing at any time before
the conclusion of the public testimony portion of the public hearing.
C. At the time and place fixed for the hearing, or at any time to which the
hearing is adjourned, the Council must:
1. ITe r all persons interested in the matter of the nropose[� fee
r r
increase;
2. Hear all objections, protests or other written communications from
any owner of property subject to the proposed utility fee; and
3. Take and receive oral and documentary evidence pertaining to the
proposed fee increase.
4. The hearing may be continued from time to time, as the Council
determines necessary to complete its consideration of the proposed
fee increase.
5. If the Council determines, at the close of the public testimony
portion of the public hearing, that votes were received from
Page 4 of 6
74
property owners representing a majority of the parcels subject to
the proposed fee increase, the Council shall adopt a resolution
setting forth the results of the protest ballot process and the
proceedings shall then be closed and the utility fee cannot be
approved by the City Council.
6. If the Council determines at the close of the public testimony
portion of the public hearing that written protests were not received
from property owners representing a majority of the parcels subject
to the proposed utility fee, the Council shall adopt a resolution
setting forth the results of the protest ballot process and then may
by Ordinance change the utility fee so long as in an amount that
does exceed the amount and methodology set forth in the public
notices sent to the property owners.
SECTION 9: Environmental Review. This Resolution is exempt from review under the
California Environmental Quality Act (California Public Resources Code §§ 21000, et
seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et
seq.) because it establishes rules and procedures to implement government funding
mechanisms; does not involve any commitment to a specific project which could result in
a potentially significant physical impact on the environment; and constitutes an
organizational or administrative activity that will not result in direct or indirect physical
changes in the environment. Accordingly, this Resolution does not constitute a "project"
that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
SECTION 10: If any part of this Resolution or its application is deemed invalid by a
court of competent jurisdiction, the city council intends that such invalidity will not affect
the effectiveness of the remaining provisions or applications and, to this end, the
provisions of this Resolution are severable.
SECTION 11: The City Clerk is directed to certify the passage and adoption of this
D 1 +' .,,. ++.. l,o e„+oro.i i„+n +1.a ('it of F1 Se—flo's book o f nrirtinn]
1\VJVILLL�V11, GLll VG.LIJL+ 1L LV VV 11LV1Vu 111LV L11V 1L� V1 L1 vbul
Resolutions.
SECTION 12: This Resolution will take effect immediately day following its final
passage and adoption.
Page 5 of 6
75
PASSED AND ADOPTED this 16th day of, 2014.
Szany► �uentes, YMayor
ATTEST:
Tracy Wear City Clerk
APPROVED AS TO FORM
MARK D. HENSLEY, City Attorney
By. L�
Karl H. Berger, Assistant City Attom
Page 6 of 6
76
Notice of Public Hearing on Proposed Water and Wastewater Rate Increase
Notice is hereby given that the City Council of City of El Segundo ("City") will conduct a public hearing
on February 16, 2021 at 6 pm in the City Hall, located at 350 Main Street, El Segundo, CA 90245, where
it will consider adopting increases to the City's water and wastewater rates and charges. The proposed
increases are the result of a detailed multi-year budget analysis ("financial plan") and findings of the El
Segundo Water and Wastewater Rate Study Report ("Rate Study") prepared by Raftelis, a financial
consulting firm specializing in cost of service analyses and rate setting. A copy of this study is available
on at www.elsegundo.org or hard copies are available for review at the City Clerk's Office. For assistance
in determining the impact of the proposed rate increase on your bill, please call Customer Service at 310-
524-2300, or go to www.elseaundo.ora for the rate calculator.
The Rate Study determined the appropriateness of the proposed rate increases and involved a fair and
equitable cost allocation among water and wastewater customer categories. The net impact of the
proposed changes in the rates for water and wastewater customers will vary based upon actual water
consumption, customer class, and meter size.
Why am I Receiving This Notice?
You are receiving this notice because you are either a property owner in the City and/or a customer of
record of one or more water and wastewater connections located within the service area of the City of El
Segundo. You will be provided with a notice and ballot for each parcel of property and/or water and
wastewater account you have with the City. Only one protest ballot will be counted for each parcel of
property regardless of how many are submitted by customers or property owners for the parcel.
Background
The City of El Segundo provides water and wastewater service to approximately 5,100 customer
connections. The City's water utility relies on water service charges to fund the costs of operations,
maintenance, and wholesale water purchases. The City is also responsible for the operation and
maintenance of an extensive wastewater collection system but does not provide wastewater treatment.
Wastewater on the east side of the City (east of Pacific Coast Highway) is sent to Los Angeles County
Sanitation Districts (LACSD). The county bills those customers directly on their annual property tax
bills. Wastewater from the west side is treated by the City of Los Angeles, which bills the City of El
Segundo. These costs are included in the proposed rates. The City, in cooperation with Raftelis,
examined its current and future revenue and reserve balances and its ability to fund the required capital
needs along with ongoing operations.
The proposed changes are necessary to maintain and improve existing water and wastewater service. All
customers are encouraged to conserve water to help reduce their water bills.
The proposed rates are designed to comply with state laws, improve rate equity and fairness, and fund the
City's costs of providing water and wastewater service including capital reinvestment.
Why is the City Proposing to Increase Rates?
77
Fund Wholesale Water Rate Increases
The City purchases water from the West Basin Municipal Water District, which plans to increase their
wholesale rate to the City of El Segundo. The City will pass through this increased cost of water to its
customers.
Fund Wastewater Treatment Cost Increase
The west side of the City wastewater is treated by the City of Los Angeles, which is increase by 91 %
(2017 to 2021).
Repair & Replace Aging Pipelines
The City maintains over 65 miles of water pipelines which need to be repaired or replaced as they reach
the end of their useful lives. Replacing them will ensure that the City can continue providing high-
quality water to its customers 24 hours a day and meet safety requirements for fire flow and pressure.
In addition the City maintains a wastewater collection system that needs to be maintain to meet the
required environmental standards.
PROPOSED WATER
RATES
The City proposes to adopt the rates as shown in the following tables. The proposed rate
structure includes two components: 1) a fixed monthly charge that is billed regardless of
water use and is shown in the first table, and 2) a volumetric charge billed for each unit of
metered water use as shown in the second table. The Single -Family Residential class has
tiered rates with the tier breakpoints as shown. The volume rate applies to each hundred
cubic feet (ccf) of water use; one hundred cubic feet (ccf) equals 748 gallons.
METER CHARGES/FIXED MONTHLY CHARGE
WZ
January
January
January
January
April 1
1
1
1
1
Meter Size
2021
2022
2023
2024
2025
5/8" and 3/4"
$ 18.18
18.73
19.30
19.88
20.48
1"
24.71
25.46
26.23
27.02
27.84
1 1/2"
41.05
42.29
43.56
44.87
46.22
2"
60.65
62.47
64.35
66.29
68.28
WZ
3"
122.74
126.43
130.23
134.14
138.17
4"
214.23
220.66
227.28
234.10
241.13
6"
433.16
446.16
459.55
473.34
487.55
8"
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,380.75
1,422.18
1,464.85
1,508.80
1,554.07
As shown in the table below the tier structure in the proposed rates will be changing. For
Residential usage, tiers will go from four tier levels to three. For Non -Residential usage, tiers
will go from four tier levels to a single uniform rate.
WATER CONSUMPTIONNOLUMETRIC CHARGE'
Monthly Tier
Break Points
Single Family
Residential
Tier 1 0-9
Tier II 10-13
Tier III 14+
Tier IV
Non -Residential Single Tier
Chevron Single Tier
'NOTE THE WATER CONSUMPTION/VOLUMETRIC CHARGE IS BASED UPON CURRENT
ANTICIPATED RATE INCREASES FROM WEST BASIN MUNICIPAL WATER DISTRICT. IF THE
DISTRICT INCREASES OR DECREASES THESE ANTICIPATED RATE INCREASES, THE
CHARGES SHOWN WILL BE INCREASED OR DECREASED CONSISTENT WITH THESE RATE
CHANGES BY WEST BASIN.
WE
RECYCLED WATER RATES
Recycled water rates will consist of a monthly fixed charge as well as a usage charge. As
shown in the tables below, Non -City users will no longer pay a surcharge while Chevron is
shown below.2
January
January
January
January
January
January
1
April 1
1
1
1
1
Volumetric
2021
2022
2023
2024
2025
Residential
Tier 1
$ 2.88
$ 2.97
$ 3.06
$ 3.16
$ 3.26
Tier 2
5.47
5.64
5.81
5.99
6.17
Tier 3
6.86
7.07
7.29
7.51
7.74
Non -Residential
$ 4.17
$ 4.30
$ 4.43
$ 4.57
$ 4.71
Chevron
4.90
5.05
5.21
5.37
5.54
RECYCLED WATER RATES
Recycled water rates will consist of a monthly fixed charge as well as a usage charge. As
shown in the tables below, Non -City users will no longer pay a surcharge while Chevron is
shown below.2
January
January
January
January
Recycled April 1 1
1
1
1
Surcharge 2021 2022
2023
2024
2025
Chevron $1.01 $1.05
$1.09
$1.13
$1.17
2 NOTE THE WATER CONSUMPTION/VOLUMETRIC CHARGE IS BASED UPON CURRENT
ANTICIPATED RATE INCREASES FROM WEST BASIN MUNICIPAL WATER DISTRICT. IF THE
DISTRICT INCREASES OR DECREASES THESE ANTICIPATED RATE INCREASES, THE
CHARGES SHOWN WILL BE INCREASED OR DECREASED CONSISTENT WITH THESE RATE
CHANGES BY WEST BASIN.
.H
PRIVATE FIRE PROTECTION RATES
The City proposes to charge private fire protection rates, shown in the following table, to
customers with private fire protection connections to cover costs associated with
maintaining the capacity to fight fires. This charge only applies to customers with private
fire connections.
April 1 January 1 January 1 January 1 January 1
RI
January
January
January
January
April 1
1
1
1
1
Meter Size
2021
2022
2023
2024
2025
5/8" and 3/4"
18.18
18.73
19.30
19.88
20.48
1"
24.71
25.46
26.23
27.02
27.84
11/2"
41.05
42.29
43.56
44.87
46.22
2"
60.65
62.47
64.35
66.29
68.28
3"
122.74
126.43
130.23
134.14
138.17
4"
214.23
220.66
227.28
234.10
241.13
6"
433.16
446.16
459.55
473.34
487.55
8"
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,380.75
1,422.18
1,464.85
1,508.80
1,554.07
PRIVATE FIRE PROTECTION RATES
The City proposes to charge private fire protection rates, shown in the following table, to
customers with private fire protection connections to cover costs associated with
maintaining the capacity to fight fires. This charge only applies to customers with private
fire connections.
April 1 January 1 January 1 January 1 January 1
RI
Meter Size
2021
2022
2023
2024
2025
5/8" and 3/4"
$ 8.73
$ 9.00
$ 9.27
$ 9.55
$ 9.84
1 "
9.13
9.41
9.70
10.00
10.30
1 1/2"
10.56
10.88
11.21
11.55
11.90
2"
13.03
13.43
13.84
14.26
14.69
3"
21.90
22.56
23.24
23.94
24.66
4"
37.20
38.32
39.47
40.66
41.88
6"
92.11
94.88
97.73
100.67
103.70
8"
186.83
192.44
198.22
204.17
210.30
10"
329.29
339.17
349.35
359.84
370.64
PROPOSED WASTEWATER RATES
The current wastewater charges include a fixed monthly charge and a volumetric charge.
Single family residential customers will be billed a flat rate each month. Other classes will
have a minimum fixed charge assuming 9 CCF, along with additional volumetric charges for
usage above the 9 CCF minimum. The volume rate and minimum bill amount depends on
whether the resident is in the west side or east side. s
January
April 1 1
Minimum Charge 2021 2021
SFR $ 39.07 $ 42.60 $
MFR 39.07 42.60
January
January
January
1
1
1
2022
2023
2024
46.65
$ 51.09
$ 55.95
46.65
51.09
55.95
3 NOTE THE WASTEWATER RATES ARE BASED UPON CURRENT ANTICIPATED TREATMENT
RATE INCREASES FROM THE CITY OF LOS ANGELES. IF THE CITY OF LOS ANGELES
INCREASES OR DECREASES THESE ANTICIPATED RATE INCREASES, THE CHARGES SHOWN
WILL BE INCREASED OR DECREASED CONSISTENT WITH THESE RATE CHANGES BY THE
CITY OF LOS ANGELES.
VA
Institutional West
39.07
42.60
46.65
51.09
55.95
Commercial West
58.23
63.47
69.50
76.11
83.35
Industrial West
65.22
71.10
77.86
85.26
93.36
Non -Res East
14.86
16.21
17.75
19.44
21.29
ADU
16.02
17.47
19.13
20.95
22.95
January
January
January
January
April 1
1
1
1
1
Volumetric
2021
2021
2022
2023
2024
SFR
N/A
N/A
N/A
N/A
N/A
MFR
4.01
4.37
4.79
5.25
5.75
Institutional West
4.01
4.37
4.79
5.25
5.75
Commercial West
6.13
6.69
7.33
8.03
8.80
Industrial West
6.91
7.54
8.26
9.05
9.91
Non -Res East
1.32
1.44
1.58
1.74
1.91
Public Hearing
The property owner of record pursuant to the latest certified property record rolls from the County of Los
Angeles , or any tenant directly responsible for payment of water and wastewater rates (i.e., a customer of
record who is not a property owner), may submit a written protest to the proposed rate increases to the
City's water and wastewater rates; provided, however, only one protest will be counted per identified
parcel. A protest form for each service, water and wastewater is enclosed and if you want to have your
protest counted you must use the attached form and return in accordance with the requirements set forth
on the protest form. You can protest the proposed water rate increases or wastewater increases, or both,
but you must submit a properly completed protest form for each service that you wish to protest. All
written protests must be received prior to the conclusion of the public comment portion of the public
hearing. Any protest submitted via email, facsimile, or other electronic means will not be accepted as a
formal written protest. For any protest submittal, whether mailed or submitted in person, if you do not
use the enclosed return envelopes ,please identify on the front of the envelope that the enclosed letter is
for the public hearing on Proposed Water and Wastewater Rate Increases. The City Council will consider
all written protests timely submitted and hear and consider all public comments made at the public
hearing. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a
properly completed written protest. At the conclusion of the public hearing, the City Council will
RI
determine whether to adopt the proposed rate increases described in this notice. If, after the close of the
public hearing, written protests against the proposed rate increases are not presented by a majority
parcels upon which they are proposed to be imposed, the City Council will be authorized to impose the
rate increases. If you have any questions regarding the information provided in this notice, or the rates
applicable to your property, please contact Customer Service at 310-5242300 or 310-5242319.
:E
• City of EI Segundo
Water Rate Increase
'~ Protest Form
<<APNFMT>>
<<OWNER 1>>
<<OWNER 2>>
<<OWNER 3>>
<<CAREOF>>
<<MAILING 1>>
<<MAILING 2>>
Service Address: «SITUS»
If you wish to protest the implementation of the multi-year water rate increase, you must 1) check
the box indicating that you protest the proposed service charge increase, 2) check the owner
and/or water billing customer box(es) as applicable, 3) print and sign your name on the lines
provided, and 4) deliver the signed protest form in the pre -addressed envelope provided to the
City Clerk before the close of the public hearing scheduled for 6:00 p.m. on February 16, 2021 by
one of the following methods: U.S. mail addressed to City Clerk Office Room 5, City of EI
Segundo, 350 Main Street, EI Segundo, CA 90245 or hand delivered to the City Clerk's Office
Room 5 at the same address.
❑ 1 protest the proposed multi-year Water Service Charge Increased Rates.
I hereby declare under penalty of perjury that I am:
❑ A record owner of the parcel listed above.
❑ A water billing customer of the parcel listed above.
Print Legibly - Full Name (Required) Signature (Required)
Only completed and signed original protest forms will be counted. Unsigned
protest forms or non -original protest forms will not be counted.
<<Code_Yes>> 85
<<APNFMT>>
<<OWNER 1>>
<<OWNER 2>>
<<OWNER 3>>
<<CAREOF>>
<<MAILING 1>>
<<MAILING 2>>
City of EI Segundo
Wastewater Rate Increase
Protest Form
Service Address: «SITUS»
If you wish to protest the implementation of the multi-year water rate increase, you must 1) check
the box indicating that you protest the proposed service charge increase, 2) check the owner
and/or water billing customer box(es) as applicable, 3) print and sign your name on the lines
provided, and 4) deliver the signed protest form in the pre -addressed envelope provided to the
City Clerk before the close of the public hearing scheduled for 6:00 p.m. on February 16, 2021 by
one of the following methods: U.S. mail addressed to City Clerk Office Room 5, City of EI
Segundo, 350 Main Street, EI Segundo, CA 90245 or hand delivered to the City Clerk's Office
Room 5 at the same address.
❑ 1 protest the proposed multi-year Wastewater Service Charge Increased Rates.
I hereby declare under penalty of perjury that I am:
❑ A record owner of the parcel listed above.
❑ A water billing customer of the parcel listed above.
Print Legibly — Full Name (Required)
Signature (Required)
Only completed and signed original protest forms will be counted. Unsigned
protest forms or non -original protest forms will not be counted.
<<Code Yes>>
CITY OF
EI Segundo
Water and Wastewater Rate Study
Draft Report / December 2020
RAFTELIS
R RAFTELIS
December 10, 2020
Mr. Joseph Lillio
Director of Finance
City of El Segundo
350 Main Street
El Segundo, CA 90245
Subject: Water, Recycled Water, and Wastewater Rate Study Report
Dear Mr. Lillio,
Raftelis is pleased to present this water, recycled water, and wastewater rate study report. The rate study involved a
comprehensive review of the City's financial plan, an assessment of alternative tiered rate structures, and an
allocation of costs to customer classes and tiers using Cost of Service principles.
The report includes a brief Executive Summary followed by a detailed discussion regarding study assumptions and
an in-depth rate derivation.
It was a pleasure working with you and we wish to express our thanks for the support from you and your staff. If
you have any questions, please call me at 213 327 4405.
Sincerely,
Sanjay Gaur
Vice President
445 S Figueroa Street, Suite 2270
Los Angeles, CA 90017
www.raftelis.com
MP
Table of Contents
1.
EXECUTIVE SUMMARY............................................................1
1.1
BACKGROUND.........................................................................................1
1.2
METHODOLOGY.......................................................................................1
1.3
RESULTS AND RECOMMENDATIONS...................................................2
1.3.1
Factors Affecting Revenue Adjustments.................................................................2
1.4
WATER.......................................................................................................2
1.4.1
Proposed Water Rates...............................................................................................2
1.4.2
Fixed Service Charge.................................................................................................3
1.4.3
Potable Commodity Rate...........................................................................................3
1.4.4
Recycled water surcharge.........................................................................................5
1.5
WASTEWATER..........................................................................................5
1.5.1
Proposed Wastewater Rates.....................................................................................5
2.
LEGAL FRAMEWORK AND RATE METHODOLOGY ..............7
2.1
LEGAL FRAMEWORK..............................................................................7
2.1.1
California Constitution - Article XIII D, Section 6 (Proposition 218) .......................7
2.1.2
California Constitution - Article X, Section 2 ...........................................................7
2.2
COST -BASED RATE -SETTING METHODOLOGY..................................8
3.
WATER ENTERPRISE FINANCIAL PLAN..............................10
3.1
FINANCIAL PLAN ASSUMPTIONS........................................................10
3.1.1
Number of Accounts................................................................................................10
3.1.2
Account and Water Use Growth Assumptions......................................................10
3.1.3
Water Use..................................................................................................................10
3.1.4
Inflationary and Water Purchase Cost Assumptions............................................11
3.1.5
Water System Expenses..........................................................................................11
3.1.6
O&M Expenses.........................................................................................................12
3.1.7
Capital Improvement Plan (CIP)..............................................................................12
3.1.8
Debt Service..............................................................................................................12
3.1.9
Reserve Balances.....................................................................................................12
3.1.10
Revenue Adjustments..............................................................................................13
3.2
PROPOSED FINANCIAL PLAN..............................................................13
4.
WATER COST OF SERVICE ANALYSIS................................15
4.1
REVENUE REQUIREMENT DETERMINATION.....................................15
4.2
ALLOCATION OF EXPENSES TO FUNCTIONS...................................16
4.3
ALLOCATION OF EXPENSES TO COST COMPONENTS ...................18
4.4
UNITS OF SERVICE................................................................................20
4.4.1
Customer and Meter Equivalents............................................................................20
4.4.2
Water Usage and Peaking........................................................................................21
4.4.3
Cost Distributions to the Cost components ....... ...................................................
23
5.
RATE DERIVATION................................................................25
5.1
EXISTING RATE STRUCTURE AND RATES........................................25
5.2
RECYCLED WATER RATES..................................................................25
5.3
PROPOSED MONTHLY SERVICE CHARGE.........................................25
5.3.1
Monthly Service charge Components....................................................................25
5.3.2
Water Supply Component........................................................................................26
5.3.3
Meter Component.....................................................................................................26
5.3.4
Customer Component..............................................................................................26
5.3.5
Total Monthly Service Charge for All meters.........................................................26
5.4
PROPOSED PRIVATE FIRE CHARGES................................................27
5.5
VOLUMETRIC RATES.............................................................................29
5.5.1
Customer Classes....................................................................................................29
5.5.2
Tier Definitions.........................................................................................................29
5.5.3
Volumetric Rate Derivation......................................................................................29
5.5.4
Cost Component Definitions...................................................................................29
5.5.5
Derivation of the Unit Cost by Cost Component...................................................30
5.5.6
Delivery Cost............................................................................................................30
5.5.7
Peaking Rate.............................................................................................................30
5.5.8
Non -Rate Revenue Offset........................................................................................31
5.5.1
Recycled Water Surcharge Revenue Offset...........................................................31
•E
5.5.2
Final Rate Derivation................................................................................................32
5.5.3
5 -Year Rates..............................................................................................................32
6.
WATER BILL IMPACTS..........................................................34
6.1
MONTHLY SINGLE FAMILY BILL IMPACTS........................................34
7.
WASTEWATER FINANCIAL PLAN.........................................35
7.1
FINANCIAL PLAN ASSUMPTIONS........................................................35
7.1.1
Current Wastewater Rates.......................................................................................35
7.1.2
Number of Accounts and Water Use......................................................................35
7.1.3
Wastewater O&M Expenses....................................................................................36
7.1.4
Projected Capital Improvement Program...............................................................36
7.1.5
Reserve Requirements.............................................................................................36
7.2
PROPOSED FINANCIAL PLAN..............................................................37
8.
WASTEWATER ENTERPRISE COST OF SERVICE AND RATE
DERIVATION......................................................................................39
8.1
WASTEWATER COST OF SERVICE ANALYSIS..................................39
8.1.1
Wastewater Revenue Requirement.........................................................................39
8.1.2
Cost Allocation to Functions...................................................................................39
8.1.3
Allocation to Cost Components..............................................................................41
8.1.4
Units of Service........................................................................................................42
8.1.5
Cost Distributions....................................................................................................43
8.1.6
Wastewater Rate Calculation..................................................................................44
8.1.7
Five Year Proposed Wastewater Service Rates.....................................................45
8.1.8
Single Family Residential Wastewater Bill Impacts..............................................45
9.
RATE COMPARISON..............................................................46
91
List of Tables
Table 1-1: Recommended Yearly Revenue Adjustments...............................................................................
2
Table 1-2: Current and Proposed Monthly Fixed Service Charge................................................................
3
Table 1-3: Proposed Commodity Rates ($ I Ccf) for All Classes...................................................................
4
Table 1-4: Recycled Water Surcharges............................................................................................................
5
Table 1-5: Current and Proposed Five -Year Wastewater Rates....................................................................
5
Table 2-1: Projected Accounts by Meter Size (FY 2019).............................................................................10
Table 2-2: Water Use in Ccf by Customer Class - FY 2019..........................................................................11
Table 2-3: Inflationary Assumptions..............................................................................................................11
Table 2-4: Projected O&M Expenses..............................................................................................................
12
Table 2-5: Capital Improvement Plan.............................................................................................................12
Table2-6: Fund Balance Forecast..................................................................................................................13
Table 2-7: Proposed Rate Adjustments.........................................................................................................13
Table 2-8: Five -Year Water Operating Cash Flow.........................................................................................14
Table 4-1: Revenue Requirement Determination..........................................................................................16
Table 4-2: Functionalization of Operating Expenses...................................................................................
17
Table 4-3: Functionalization of Capital Expenses........................................................................................17
Table 4-4: System -Wide Peaking Factors and Allocation to Cost Components .......................................
18
Table 4-5: Allocation of O&M Expenses to Cost Causation Components .................................................
19
Table 4-6: Allocation of Capital Expenses to Cost Causation Components.............................................19
Table 4-7: Customer and Equivalent Meter Units.........................................................................................
20
Table4-8: Fireline 6" Equivalents...................................................................................................................
21
Table4-9: Units of Service..............................................................................................................................
22
Table4-10: Fire Flow Calculation...................................................................................................................
22
Table4-11: Unit Costs......................................................................................................................................
24
Table4-12: Class Cost of Service...................................................................................................................
24
Table 5-1: Existing Monthly Rate Structure and Rates................................................................................
25
Table 5-2: Monthly Meter and Customer Charge Derivation.......................................................................
26
Table 5-3: Monthly Service Charge Derivation by Meter Size.....................................................................
27
Table 5-4: Five Year Fixed Service Charges..................................................................................................
27
Table 5-5: Private Fire Charge Calculation....................................................................................................
28
Table 5-6: Private Fire Charge Derivation by Meter Size.............................................................................
28
Table 5-7: FY 2020 — 2025 Fireline Monthly Charges...................................................................................
28
Table 5-8: Proposed Single Family Residential Tiers..................................................................................
29
Table5-9: Supply Cost Derivation..................................................................................................................
30
Table 5-10: Derivation of the Delivery Unit Cost...........................................................................................
30
Table5-11: Derivation of Peaking Rate..........................................................................................................
31
Table 5-12: Derivation Non -Rate Revenue Offset Unit Rates......................................................................
31
Table 5-13: Derivation of Recycled Surcharge Revenue Offset Unit Rates ...............................................
32
Table 5-14: Derivation of Rates by Tier and Class........................................................................................
32
Table 5-15: Five -Year Volumetric Rates.........................................................................................................
33
Table 6-1: Single Family Monthly Bill Impacts..............................................................................................
34
Table 7-1: Current Wastewater Service Charges..........................................................................................
35
Table 7-2: Wastewater Accounts and Wastewater Use in Hundred Cubic Feet ........................................
36
Table 7-3: Projected Wastewater O&M Expenses.........................................................................................
36
Table 7-4: Wastewater Capital Improvement Projects.................................................................................
36
'A
Table 7-5: Wastewater Fund Balance Forecast.............................................................................................
37
Table 7-6: Proposed Wastewater Revenue Adjustments.............................................................................
37
Table 7-7: Wastewater Enterprise Proposed Financial Plan Pro -Forma ....................................................
38
Table 8-1: Allocating FY 2018 O&M Costs to Cost Causation Components .............................................
39
Table 8-2: Allocating FY 2021 O&M Costs to Functions..............................................................................
40
Table 8-3: Allocating FY 2021 Capital Costs to Functions..........................................................................
41
Table 8-4: Allocation of Functionalized O&M to Cost Components...........................................................
41
Table 8-5: Allocation of Functionalized Capital Costs to Cost Components ............................................
42
Table 8-6: City of Los Angeles Charges........................................................................................................
42
Table 8-7: Wastewater Units of Service.........................................................................................................
42
Table8-8: Wastewater Strength......................................................................................................................
43
Table8-9: Unit Cost Calculation.....................................................................................................................
43
Table 8-10: Customer Class Allocations........................................................................................................
44
Table 8-11: Wastewater Rate Calculation......................................................................................................
44
Table 8-12: Proposed Five -Year Wastewater Service and Usage Charges ...............................................
45
Table 8-13: Proposed Residential Wastewater Bills.....................................................................................
45
Table9-1: Water Bill Comparison...................................................................................................................
46
Table 9-2: Wastewater Bill Comparison.........................................................................................................
47
Table 9-3: Combined Bill Comparison...........................................................................................................
47
93
This page intentionally left blank to facilitate two-sided printing.
1. Executive Summary
1.1 Background
In the summer of 2019, the City of El Segundo (City) engaged Raftelis to conduct a Water, Recycled
Water and Wastewater Rate Study (Study) which included a Financial Plan, Cost of Service Study and
rate calculations. This report presents the Financial Plan and the resulting rates for implementation in
April of 2021.
This Executive Summary summarizes the water, recycled water, and wastewater rates and contains a
description of the methodology, results, and recommendations. The City's last rate adjustment, which
consisted of an inflationary increase in water rates, was effective on January 1, 2020. The City wishes to
establish fair and equitable rates that:
Meet the City's fiscal needs in terms of operational expenses, reserve goals, and capital
investment to maintain the system
Are fair and equitable and therefore proportionately allocate the costs of providing service in
accordance with California Constitution Article XIII D, section 6 (commonly referred to as
Proposition 218)
Result in stable charges over time for customers
1.2 Methodology
The water rates presented in this report are developed using cost of service principles set forth by the
American Water Works Association M1 Manual titled Principles of Water Rates, Fees and Charges (AWWA
M1 Manual). Cost of service principles endeavor to distribute costs to customer classes in accordance
with the way each class uses the water system. This methodology is described in detail in Sections 4 and
5. The Base -Extra Capacity Method of the AWWA M1 Manual was used to distribute costs to customer
classes and tiers. This method separates costs into four main' components: (1) base costs, (2) extra
capacity costs, (3) customer costs, and (4) fire protection costs. Base costs are costs associated with
meeting average daily demand needs and include operations and maintenance costs and capital costs
designed to meet average load conditions. Extra capacity costs are costs (both operating and capital costs)
associated with meeting peak demand. Customer costs are associated with servicing customers, such as
meter reading, billing, and customer service, etc. Fire protection costs are related solely to the fire
protection function of a water system, such as fire hydrants and related mains and valves.
Wastewater rates are derived in accordance with the Water Environment Federations Manual of Practice
No. 27, Financing and Charges for Wastewater Systems. The City has two wastewater systems; wastewater
from the east side of PCH is served by LA County; wastewater treatment costs are billed directly to those
customers on their annual property tax bills. Wastewater from the west side of PCH is treated by the City
of Los Angeles, which bills the City of El Segundo. Therefore, rates and charges must be different for
these groups of customers.
' There can be other cost components such as conservation and supply; however, the four mentioned are
almost always used in rate studies.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
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1.3 Results and Recommendations
Table 1-1 shows the revenue adjustments for the water and wastewater as part of the selected Financial
Plan. The revenue adjustment is the additional amount of gross rate revenue collected for each enterprise
compared to the amount collected by current ratesz.
Table 1-1: Recommended Yearly Revenue Adjustments
FY 2021 FY 2022 FY 2023 FY 024 FY 2025
Effective Month April 1 January 1 January 1 January 1 January 1
Water Revenue Adjustment 0.0'0 3.0% 3.0% 3.0% 3.0%
Wastewater Rate Adjustment 9.0.0 9.0'0 9.5% 9.5% 9.5%
1.3.1 FACTORS AFFECTING REVENUE ADJUSTMENTS
The following items affect the City's revenue requirement (i.e., costs) and thus its rates for each
enterprise. The City's expenses include Operation and Maintenance (O&M) expenses, capital expenses,
debt service (for water and wastewater), and reserve funding.
0&M Expenses: The City's O&M expenses (excluding water costs) increase each year, in line
with general cost inflation. Wastewater treatment costs from the City of Los Angeles are expected
to increase 91% from FY 2019 to FY 2021.
Capital Investment: The City plans to invest millions in each system and each enterprise as
discussed in the capital improvement section. Water and wastewater system improvements total
$16.5 million and $3.4 million, respectively, over the next five years.
Reserve Balances: While the water utility is in a strong financial position, the wastewater utility
currently has less than the recommended reserve target and will sustain steep deficits in the coming
years if no adjustments are made.
The City will purposely make use of fund balances, as shown herein, to minimize customer rate impacts.
Using fund balances to fund operating and capital costs lowers the amount of required rate revenue and
therefore lowers the impact to customer bills.
1.4 Water
1.4.1 PROPOSED WATER RATES
In this report, the terms fee and charge are often used interchangeably. The City currently charges a set
of volumetric rates for residential customers and a set of rates for nonresidential customers. Raftelis
recommends adding a distinct Chevron' rate and adjusting the residential rate structure in accordance
with updated costs of service. The City's water rate structure includes two components: (1) a fixed
monthly service charge, and (2) a variable usage charge. Each of these charges is described below.
' Chevron is large purchaser of potable water from El Segundo, accounting for approximately 50% of water
sales with its own district usage patterns.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
1.4.2 FIXED SERVICE CHARGE
The City's proposed Fixed Service Charge includes four components. The first component is the Meter
Service Charge and it is based on the meter size serving a property. The Fixed Service Charge is
calculated to recover the cost to maintain and replace meters as well as a portion of extra -capacity related
costs (i.e., costs associated with meeting system capacity beyond that required for average daily demand).
This cost is proportional to the size of the meter and goes up with meter size according to standards set
forth by the AWWA. The second component is the customer service cost. This component recovers
costs associated with meter reading, answering customer calls, and billing customers. These costs are not
related to the size of the meter. The service charge also includes a portion of water supply costs and
public fire protection costs. The full derivation of the total Fixed Service Charge is described in Section
5, and the total Fixed Service Charge is shown in Table 1-2.
Table 1-2: Current and Proposed Monthly Fixed Service Charge
5/8" and 3/4"
$ 11.95
$ 18.18
$ 18.73
$ 19.30
$ 19.88
$ 20.48
1"
27.10
24.71
25.46
26.23
27.02
27.84
11/2"
33.94
41.05
42.29
43.56
44.87
46.22
2"
62.90
60.65
62.47
64.35
66.29
68.28
3"
141.61
122.74
126.43
130.23
134.14
138.17
4"
251.25
214.23
220.66
227.28
234.10
241.13
6"
469.74
433.16
446.16
459.55
473.34
487.55
8"
823.49
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,288.35
1,380.75
1,422.18
1,464.85
1,508.80
1,554.07
1.4.3 POTABLE COMMODITY RATE
Error! Reference source not found. shows the current and proposed commodity rates by customer class
respectively. The rates are designed to recover the costs associated with serving each class and tier as
discussed in Sections 4 and 5. The City's current rate structure consists of two customer groups; 1) Single
Family Residential customers and 2) non-residential customers. The proposed rate structure adds a third
rate for Chevron, which is a large user with its own distinct usage patterns. The revised customer groups
reflect customer behaviors, patterns, and use of the water system based on updated water usage data.
Changes to the volumetric rate structure also include redefining the volumes included in each tier. For
residential customers, Raftelis proposes including only the first 9 Ccf of usage in the first tier and an
additional 4 Ccf in the second tier. The third and final tier will include all usage above 13 Ccf. Non-
residential customers and Chevron will have a uniform volumetric rate.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 3
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Table 1-3: Proposed Commodity Rates ($ / Ccf) for All Classes
Residential
Tier 1
$
2.82
$
2.88
$
2.97
$
3.06
$
3.16
$
3.26
Tier 2
5.19
5.47
5.64
5.81
5.99
6.17
Tier 3
5.90
6.86
7.07
7.29
7.51
7.74
Non -Residential
$
3.43
$
4.17
$
4.30
$
4.43
$
4.57
$
4.71
Chevron
$
3.43
$
4.90
$
5.05
$
5.21
$
5.37
$
5.54
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 4
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1.4.4 RECYCLED WATER SURCHARGE
Customers who receive recycled water currently pay two charges: a direct pass-through rate of the cost
for the City to purchase recycled water from West Basin Municipal Water District and a surcharge paid
to the City. Raftelis proposes eliminating the surcharge for regular retail customers. The surcharge for
recycled water used by Chevron will remain in place and increase at the same pace as the required
revenue adjustments each year, per the existing contract between Chevron and the City.
Table 1-4: Recycled Water Surcharges
ecyclecl current Hprn 1 jan i jan i jan I Jafl I
urcharge 2020 2021 2022 2023 2024 2025
0•
1.5 Wastewater
1.5.1 PROPOSED WASTEWATER RATES
The City's current wastewater rates include a monthly Sewer Service Charge, Treatment Charge for
customers on the west side and a volumetric Charge. The volumetric rate is based on actual water use.
After discussion with City staff, Raftelis proposes several significant adjustments to the rate structure.
Single family residential customers will be billed a flat rate each month based on 9 Ccf of usage. Other
classes will have the same 9 Ccf minimum bill with an additional volumetric charge for usage above 9.
The volume rate, and minimum bill, will depend on whether the customer is a west side or east side
resident. Table 1-5 shows the current and proposed five-year wastewater rates. More detail on current
wastewater rates can be found in Section 6.
Table 1-5: Current and Proposed Five -Year Wastewater Rates
SFR
$ 23.23
$ 39.07 $
42.60 $
46.65 $
51.09 $
55.95
MFR
38.04
39.07
42.60
46.65
51.09
55.95
Institutional West
21.98
39.07
42.60
46.65
51.09
55.95
Commercial West
26.88
58.23
63.47
69.50
76.11
83.35
Industrial West
22.87
65.22
71.10
77.86
85.26
93.36
Non -Res East
7.26
14.86
16.21
17.75
19.44
21.29
A D U
16.02
17.47
19.13
20.95
22.95
.-
April
above 9
2020
2021
2022
2023
2024
2025_
SFR
$ 0.73
N/A
MFR
0.91
4.01
4.37
4.79
5.25
5.75
Institutional West
0.91
4.01
4.37
4.79
5.25
5.75
Commercial West
1.04
6.13
6.69
7.33
8.03
8.80
Industrial West
1.04
6.91
7.54
8.26
9.05
9.91
Non -Res East
1.04
1.32
1.44
1.58
1.74
1.91
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 5
The main body of this report contains the City's detailed five-year financial plan, rate derivation, and
customer bill impacts for the water and wastewater utilities.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
100
2. Legal Framework and
Rate Methodology
2J Legal Framework
This section of the report describes the legal framework surrounding rate setting and calculating cost of
service rates that provide a fair and equitable cost allocation to customer classes.
2.1.1 CALIFORNIA CONSTITUTION - ARTICLE XIII D, SECTION 6
(PROPOSITION 218)
Proposition 218 was enacted in 1996. It amended the California Constitution by adding Article XIII C
and XIII D. Article XIII D, section 6 established procedural requirements for the imposition of property -
related fees and charges and substantive provisions governing the amount that may be imposed and the
use of such fees charged by local agencies. The substantive requirements for such fees and charges are as
follows:
1. A property -related charge (such as water and sewer service fees and charges) imposed by a public
agency on a parcel shall not exceed the costs required to provide the property -related service.
2. Revenues derived by the charge shall not be used for any other purpose other than that for which
the charge was imposed.
3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of
service attributable to the parcel.
4. No charge may be imposed for a service unless that service is actually used or immediately
available to the owner of the property.
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.
Raftelis follows industry -standard rate setting methodologies set forth by the AWWA MI Manual, WEF
Manual No. 27, and the restrictions and requirements in Proposition 218 to ensure this study creates rates
that do not exceed the cost of providing water service and are proportionate to the cost of providing water
service.
2.1.2 CALIFORNIA CONSTITUTION - ARTICLE X, SECTION 2
Article X, Section 2 of the California Constitution (established in 1976) states the following:
"It is hereby declared that because of the conditions prevailing in this State the general welfare
requires that the water resources of the State be put to beneficial use to the fullest extent of which
they are capable, and that the waste or unreasonable use or unreasonable method of use of water
be prevented, and that the conservation of such waters is to be exercised with a view to the
reasonable and beneficial use thereof in the interest of the people and for the public welfare."
As stated above Article X, section 2 of the State Constitution institutes the need to preserve the State's
water supplies and to discourage the wasteful or unreasonable use of water by encouraging conservation.
As such, public agencies are constitutionally mandated to maximize the beneficial use of water, prevent
waste, and encourage conservation.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
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In addition, Section 106 of the Water Code declares that the highest priority use of water is for domestic
purposes, with irrigation secondary. To meet the objectives of Article X, section 2, Water Code Section
375 et seq., a water purveyor may utilize its water rate design to incentivize the efficient use of water as
long is the rates also comply with other articles of the Constitution. The proposed tiered rates were
designed in compliance with California Constitution Article XIII D, section 6 by allocating a
proportionately greater share of the cost of providing service to those whose apply greater demands and
burdens on a water system and the City's water resources, and therefore generates additional costs for the
City. The tiered rates also have the incidental effect of encouraging conservation by sending a price signal
to customers to use less water.
Inclining block rate structures (which are synonymous with tiered rates), when properly designed and
differentiated by type of use, allow a water utility to send conservation price incentives to customers.
Due to heightened interest in water conservation, tiered rates have gained widespread use, especially in
relatively water -scarce regions, such as Southern California.
2.2 Cost -Based Rate -Setting Methodology
The AWWA M1 Manual states "the costs of water rates and charges should be recovered from classes of
customers in proportion to the cost of serving those customers." To develop utility rates that comply with
Proposition 218 and industry standards, while meeting other emerging goals and objectives of the utility,
there are four major steps discussed below.
1.) Calculate Revenue Requirement
The rate -making process starts by determining the test year revenue requirement - which for this study is
FY 2020. The revenue requirement is the amount a utility needs to sufficiently fund the utility's O&M,
debt service, and capital expenses, and reserve funding.
2.) Cost of Service Analysis (COS)
The annual cost of providing water service is distributed among customer classes commensurate with
their service requirements. A COS analysis involves the following:
1. Functionalizing costs. This process takes each cost item in the City's budget and organizes the
items collectively based on what function is served. Examples of cost functions are supply,
treatment, transmission, distribution, storage, meter servicing and customer billing and
collection.
2. Allocating functionalized costs to cost components. This process allocates the functionalized
costs to cost components. Cost components include base, maximum day, maximum hour',
meter service, customer service and conservation costs.
3. Distributing the cost components. The cost of service analyses distribute the cost components,
using unit costs, to customer classes in proportion to their demands on the water and wastewater
systems. These processes are described in the M1 Manual published by AWWA and Manual
No. 27 published by WEF. Wastewater costs
' Collectively maximum day and maximum hour costs are known as peaking costs or capacity costs.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
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A COS analysis considers both the average quantity of water consumed (base costs) and the peak rate at
which it is consumed (peaking or capacity costs as identified by maximum day and maximum hour
demands).' Peaking costs are costs that are incurred during peak times of consumption. There are
additional costs associated with designing, constructing, and operating and maintaining facilities to meet
peak demands. These peak demand costs need to be allocated to those customers and customer classes
whose water usage results in the City incurring the associated costs. In other words, not all customer
classes share the same responsibility for peaking related costs.
3.) Rate Design and Calculations
Rates do more than simply recover costs. Within the legal framework and industry standards, properly
designed rates should support and optimize a blend of various utility objectives, such as conservation,
affordability for essential needs, and revenue stability, among other objectives. Rates may also act as a
public information tool in communicating these objectives to customers.
4.) Rate Adoption
Rate adoption is the last step of the rate -making process to comply with Proposition 218. Raftelis
documented the rate study results in this Study Report to help educate the public about the proposed
changes, the rationale and justifications behind the changes, and their anticipated financial impacts in lay
terms.
' System capacity is the system's ability to supply water to all delivery points at the time when demanded.
Coincident peaking factors are calculated for each customer class at the time of greatest system demand. The
time of greatest demand is known as peak demand. Both the operating costs and capital asset related costs
incurred to accommodate the peak flows are generally allocated to each customer class based upon the class's
contribution to the peak month, day and hour event.
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
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:3. Water Enterprise
Financial Plan
This section describes the water enterprise rate study, starting with the water financial plan, followed by
the cost of service study, rate design and customer bill impacts.
3. i Financial Plan Assumptions
3.1.1 NUMBER OF ACCOUNTS
Raftelis created a five-year financial plan which models anticipated revenue and expenses. This report
shows the financial plan and assumptions for the next five years (FY 2021 to FY 2025) to correspond
with the rate development for these years. Estimated rate revenue (without adjustments) is calculated by
multiplying the number of accounts by the monthly Fixed Service Charge and multiplying the total water
use in each tier by the commodity rate. Table 3-1 shows the actual number of water accounts, including
private fire protection accounts by meter size and class for FY 2019. This year is shown because this is
the basis for the forecast. The number of accounts are used to forecast the amount of fixed revenue the
City will receive from Fixed Service Charges.
Table 3-1: Projected Accounts by Meter Size (FY 2019)
5/8" and 3/4"
2,602
550
3,153
1"
386
473
-
863
11/2"
6
353
-
369
2"
4
346
11
398
3"
-
83
12
98
4"
-
42
96
143
6"
-
29
115
150
g"
-
1
146
147
10"
-
1
38
39
Total
2,998
1,878
418
5,360
3.1.2 ACCOUNT AND WATER USE GROWTH ASSUMPTIONS
The revenue calculated for each fiscal year in the Financial Plan is a function of the number of accounts,
account growth, water use trends, and existing rates. Based on discussions with City staff, the Financial
Plan assumes a conservative 0% growth in customer accounts and per capita water usage.
3.1.3 WATER USE
Table 3-2 shows the estimated FY 2020 number of accounts and water use by customer class. The
number of accounts and water use are based on FY 2019 account and water use data and the assumption
of no growth. The number of accounts in Table 3-2 does not include Fire Protection accounts.
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 10
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Table 3-2: Water Use in Ccf by Customer Class - FY 2019
SFR
2,998
361,251
60.7%
5.0%
Non -Residential
1,878
1,184,820
38.0%
16.3%
Chevron
8.0%
1,559,501
8.00%
21.4%
Recycled
66
4,174,777
1.3%
57.3%
Total
4,942
7,280,349
100.0%
100.0%
3.1.4 INFLATIONARY AND WATER PURCHASE COST ASSUMPTIONS
To ensure future O&M costs are reasonably projected, Raftelis made informed assumptions about
inflationary factors, water costs, and water use. Table 3-3 shows the inflationary categories used to
escalate the City's FY 2020 operations and maintenance (O&M) expense budget, which is part of the
Financial Plan. The inflationary factors in Table 3-3 reflect long-term averages for general and capital
(construction) inflation and energy prices.
Table 3-3: Inflationary Assumptions
1
Salaries
3.0%
3.0%
3.0°%
3.0%
3.0%
2
Benefits
8.0%
8.0%
8.0%
8.0%
8.00%
3
Supplies
3.0%
3.0%
3.0%
3.0%
3.0%
4
Electricity
5.0%
5.0%
5.0%
5.0•%
5.0%
5
Fuel
3.0%
3.0%
3.0%
3.0%
3.0%
6
Contractual
3.0%
3.0%
3.0%
3.0%
3.0%
7
Purchased Water- Potable
6.0%
6.0%
6.0%
6.0%
6.0%
8
Purchased Water- Reclaimed
6.0%
6.0%
6.0%
6.0%
6.0%
9
Equipment
3.0%
3.0%
3.0%
3.0%
3.0%
10
General
3.0%
3.0%
3.0%
3.0%
3.0%
11
Sewage Treatment
6.0%
6.0%
6.0%
6.0%
6.0%
12
Capital Projects
3.1%
3.1%
3.1%
3.1%
3.1%
Raftelis used the assumptions shown in Table 3-31 through Table 2-3 to develop the City's Water
Financial Plan. The plan uses projected annual operating expenses and revenues, capital expenditures,
reserve fund balances, and annual debt service coverage ratios to estimate the amount of additional rate
revenue needed each year. The following sub -sections provide a discussion of O&M expenses, the
Capital Improvement Plan (CIP), reserve funding, projected revenue under existing rates, and the
revenue adjustments needed to ensure the fiscal sustainability and solvency of the Water Enterprise.
3.1.5 WATER SYSTEM EXPENSES
The City's expenses include O&M expenses, capital expenses, and debt service payments, each of which
is described below.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 11
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3.1.6 O&M EXPENSES
Table 3-4 shows the City's O&M budget by fiscal year. The O&M budget incorporates the inflationary
factors in Table 3-3, using the FY 2020 budget as the base year. Approximately 84% of the O&M budget
is water purchase costs, which are not directly controllable by the City.
Table 3-4: Projected O&M Expenses
1 Salaries
$ 1,160,791
$ 1,195,615
$ 1,231,483
$ 1,268,428
$ 1,306,480
$ 1,345,675
2 Benefits
649,147
701,079
757,165
817,738
883,157
953,810
3 Supplies
248,800
256,264
263,952
271,870
280,027
288,427
4 Utilities
31,800
33,366
35,010
36,735
38,545
40,445
5 Potable Water
10,573,713
11,166,623
11,836,620
12,546,818
13,299,627
14,097,604
6 Recycled Water
13,227,296
13,574,090
14,388,535
15,251,848
16,166,958
17,136,976
7 Service Charges
2,445,867
2,519,243
2,594,820
2,672,665
2,752,845
2,835,430
8 Total: Water Operating Expenses $ 28,337,414 $ 29,446,280 $ 31,107,586 $ 32,866,101 $ 34,727,639 $ 36,698,368
3.1.7 CAPITAL IMPROVEMENT PLAN (CIP)
Table 3-5 summarizes the City's five-year CIP. The City is funding capital investment through rate
revenue and reserve funds (also known as PAY -GO funding) rather than issuing debt.
Table 3-5: Capital Improvement Plan
1 Water Main Improvement on Grand Ave. $1,500,000 - - - - -
2 Water Infrastructure Replacement - 2,300,000 3,000,000 3,000,000 3,000,000 3,000,000
3.1.8 DEBT SERVICE
The City does not currently have any outstanding utility debt and the Financial Plan does not propose
issuing any bonds in the study period.
3.1.9 RESERVE BALANCES
Raftelis recommends adopting an updated formal financial reserve policy. The City should maintain the
following in reserves:
1. Operating Reserve equal to four months of O&M expenses
2. Capital Reserve equal to the average annual forecasted capital spending of the next 10 years
3. Rate Stabilization Reserve equal to 25% of annual potable and surcharge revenue
The water utility currently has sufficient cash to fully fund each of these reserves. Table 2-6 shows a
forecast of the balance for each fund through the study period.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 12
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Table 3-6: Fund Balance Forecast
Operating Reserve
$20,443,420
$ 21,453,127
$ 22,151,119
$ 22,453,466
$22,323,325
Target
9,680,969
10, 227,152
10, 805, 293
11, 417, 306
12, 065,217
Capital Reserve
$ 3,528,930
$ 3,690,666
$ 3,803,884
$ 3,915,540
$ 4,022,497
Target
3,488,001
3,670,173
3,783,582
3,900,494
4,021,020
Rate Stabilization Reserve $ 4,479,869 $ 4,614,265 $ 4,752,693 $ 4,895,274 $ 5,042,132
Target 4,47-9,869 4,614,265 4,752,693 4,895,274 5,042,132
Total Reserves $28,452,219 $ 29,758,058 $ 30,707,696 $ 31,264,280 $31,387,954
Target 17, 648,839 18, 511, 590 19, 341, 568 20, 213, 075 21,128, 369
3.1.10 REVENUE ADJUSTMENTS
Using the assumed number of accounts and water use described above, Raftelis developed a financial
plan using projected operating and capital expenses, revenues, and resulting yearly cash balances for the
financial plan study period - from FY 2021 to FY 2025. The financial plan is used to determine the
overall revenue adjustments required to ensure water enterprise financial stability. Revenue adjustments
represent the average increase in rates as a whole; rate changes for individual classes will depend on the
cost of service — since a cost of service analysis allocates costs to each customer class. Therefore, the
revenue adjustment may not be the same as the average bill impact for each customer class. This study
establishes rates for FY 2021 through FY 2025.
The proposed revenue adjustments help ensure adequate revenue to fund operating expenses, capital
expenditures, and compliance with any bond covenants. Financial Plan modelling assumes revenue
adjustments will occur in January of each year. The proposed revenue adjustments would enable the City
to cover operating expenses and execute the CIP shown in Table 3-5.
Table 3-7 shows the proposed revenue adjustments selected by the City. The rates presented in Section 5
are based on these revenue adjustments.
Table 3-7: Proposed Rate Adjustments
Water Revenue Adjustment 0.0.0 3.0% 3.0% 3.0•% 3.0•%
3.2 Proposed Financial Plan
Table 3-8 shows the City's cash flow projection over the study period assuming the revenue adjustments
shown in Table 3-7. Line 1 shows retail rate revenue, including the fixed monthly capacity charge and
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 13
107
volume charge. Line 2 shows the revenue from the surcharge applied to recycled water by the City. Line
3 shows the additional revenue from the revenue adjustments. Revenue on line 4 shows the charges from
West Basin the City passes through and collects from recycled customers; this revenue equals the expense
on line 6 of Table 2-4.
Line 11 shows the yearly ending cash flow after subtracting operating and capital expenses from total
revenue (in line 6). Non -Rate revenue includes meter installations, interest income, and other
miscellaneous items. Balances for each of the reserve funds are tracked in lines 12 to 14.
Table 3-8: Five -Year Water Operating Cash Flow
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
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14
Revenues
1
Fixed Monthly and Volurr
$ 16,456,948
$16,456,948
$ 16,456,948
$ 16,456,948
$ 16,456,948
$16,456,948
2
Recycled Surcharge Rever
4,168,194
4,161,513
4,161,513
4,161,513
4,161,513
4,161,513
3
Additional Revenue from
-
-
463,915
1,096,387
1,747,832
2,418,821
4
Recycled Pass-through
13,227,296
13,574,090
14,388,535
15,251,848
16,166,958
17,136,976
5
Non -Rate Revenue
171,360
141,985
130,777
135,826
139,316
140,827
6
Total: Revenue
$ 34,023,798
$34,334,536
$ 35,601,689
$ 37,102,521
$ 38,672,567
$40,315,085
7
Revenue Adjustment
0.00%
3.00%
3.000/o
3.00%
3.000/6
Expenses
8
O&M
$ 28,337,414
$29,446,280
$ 31,107,586
$ 32,866,101
$ 34,727,639
$36,698,368
9
Capital
4,750,000
2,650,000
3,350,000
3,400,000
3,500,000
3,600,000
10
Total: Expenses
$ 33,087,414
$32,096,280
$ 34,457,586
$ 36,266,101
$ 38,227,639
$40,298,368
11
Op. Surplus/(Deficit)
$ 936,384
$ 2,238,257
$ 1,144,103
$ 836,420
$ 444,928
$ 16,717
12
Op. Reserve
22,685,032
20,443,420
21,453,127
22,151,119
22,453,466
22,323,325
13
RS. Reserve
-
4,479,869
4,614,265
4,752,693
4,895,274
5,042,132
14
Cap. Reserve
3,250,000
3,528,930
3,690,666
3,803,884
3,915,540
4,022,497
15
Total Reserve
$ 25,935,032
$28,452,219
$ 29,758,058
$ 30,707,696
$ 31,264,280
$31,387,954
16
Target Balance
17,027,569
17,648,839
18,511,590
19,341,568
20,213,075
21,128,369
17
CIP (Uninflated)
1,500,000
2,300,000
3,000,000
3,000,000
3,000,000
3,000,000
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
Mi
14
4. Water Cost of Service
Analysis
A Cost of Service analysis distributes a utility's revenue requirement (yearly revenues needed from rates)
to each customer class. This is done by allocating the City's revenue requirement to the cost causation
components. The cost causation components include:
1. Base (average) costs6
2. Peaking costs (maximum day and maximum hour)
3. Meter service
4. Billing and customer service
5. Fire protection
6. General and administrative costs
Additional cost components can include pumping zone costs and supply costs. Peaking costs are further
divided into maximum day and maximum hour demand. The maximum day demand is the maximum
amount of water used in a single day in a year. The maximum hour demand is the maximum hour usage
on the maximum usage day. Both maximum day and maximum hour peaking demand is used to
calculate peaking unit rates to distribute costs to customer classes. Peaking costs are allocated in
proportion to how the different customer classes use water during peak day and hour demands. Different
facilities, such as distribution and storage facilities are designed to meet the peaking demands of
customers. Therefore, extra capacity' costs include the O&M and capital costs associated with meeting
peak customer demand. This method is consistent with the AWWA M1 Manual and is widely used in
the water industry to perform cost of service analyses.
4.1 Revenue Requirement Determination
Table 4-1 shows the test year revenue requirement derivation. The total revenue required from water
rates is shown on line 9. The total in line 5, column B, is the O&M revenue requirement that is allocated
to cost components in the following steps. The capital revenue requirement in line 5, column C, is
allocated to the cost components using a similar methodology. The total on line 5, column D, is the total
amount of revenue required by the financial plan in Table 2-7, row 6 in FY 2020.
To arrive at the rate revenue requirement in line 9, column D, other non -rate revenues on lines 6 and 7
are subtracted from the total revenue requirements. This is the total amount the City's Fixed Service
Charges and Commodity Charges are designed to collect in the test year.
A major source of offsetting revenue is the surcharge Chevron pays to the City on all recycled water it
uses. The impact of this surcharge on retail rates will be discussed in more detail in Section 5.4.1.
6 The base component can be further divided into supply and base/delivery cost components as discussed in
Section 4.
The terms extra capacity, peaking and capacity costs are used interchangeably.
CITY OF EL SEGUNDO / WATER AND WASTEWATER RATE STUDY REPORT 1s
109
Table 4-1: Revenue Requirement Determination
(A)
1 Operations and Maintenance
2 Debt Service
3 PAYGO
4 Contribution to Operating Reserve
5 Subtotal: Revenue Requirements
Less: Adjustments
6 Misc. Revenue
7 Chevron Recycled Water Surcharge
8 Subtotal: Adjustments
9 Total: Net Revenue Required
(B) (C) (D)
$ 28,337,414 $ 28,337,414
4,750,000 4,750,000
936,384 936,384
$ 28, 337, 414 $ 5,686,384 $ 34, 023, 798
$ 171,360 $ $ 171,360
4,168,194 4,168,194
$ 4,339,554 $ - $ 4,339,554
$ 23, 997, 860 $ 5,686,394 $ 29, 684, 244
4.2 Allocation of Expenses to Functions
The first step of the Cost of Service analysis is to analyze operating costs and determine the functions
they serve. Each budgeted line item is assigned to a function. For example, 33% of salary costs, on line 1,
is estimated to be associated with maintaining the City's transmission system. Raftelis determined these
allocations in consultation with City staff. Table 4-2 shows the functionalization results. The total
amount in row 39, column B, is the Operating revenue requirement shown in Table 4-1, line 5.
A similar analysis is conducted to functionalize capital costs, shown in Table 4-3. The City's current
assets are assigned to functions. For example, Raftelis estimated that 66% of the City's water pipes are
used for water transmission. The resulting allocations are used to functionalize cash basis capital
expenses proportionately. The complete analysis shows that 48% of the City's assets are used for
transmission, therefore 48% of the test year cash basis capital costs are assigned to that function. The total
Capital Budget on row 11, column B, matches that shown in Table 4-1, line 5, column C.
CITY OF EL SEGUNDO I WATER AND WASTEWATER RATE STUDY REPORT 16
110
Table 4-2: Functionalization of Operating Expenses
O&M Line Item
Amount
Supifly Supply Transmission
Nistribution
morage
meters
Lustomers
ra ' i '_
uene
(A)
(B)
(C) (D) (E)
(F)
(G)
(H)
(1)
'
(J)
1 7102-4101 Salaries Full -Time $
928,191
33%
33%
15%
9%
10%
2 7102-4102 Salaries Part Time
184,600
33%
33%
15%
9%
101%
3 7102-4103 Overtime
20,000
33%
33%
15%
9%
101/.
4 7102-4116 Standby Pay
22,000
33%
33%
15%
9%
SO%
5 7102-4201 Retirement CalPERS
247,071
33%
33%
15%
9%
10%
$2,500,000
6 7102-4202 FICA
83,879
33%
33%
15%
9%
10%
Capital Item
7 7102-4203 Workers'Compensation
80,025
33%
33%
15%
9%
10%
4,750,000
8 7102-4204 Group Insurance
208,538
33%
33%
15%
9%
10%
19,032
9 7102-4209 PARS Expense
10,000
33%
33%
15%
9%
101%
$ 2,746,108
10 7102-4210 OPEB Expense
17,634
33%
33%
15%
9%
100%
11 7102-4215 Uniform Replacement
2,000
33%
33%
15%
9%
101%
12 7102-5204 Operating Supplies
42,800
33%
33%
15%
9%
10%
13 7102-5207 Small Tools & Equipment
192,000
33%
33%
15%
9%
10%
14 7102-5215 Vehicle Gasoline Charge
14,000
33%
33%
15%
9%
10%
15 7102-6101 Gas Utility
1,200
33%
33%
15%
9%
10%
16 7102-6102 Electricity Utility
30,600
100%
17 7102-6201 Advertising/Publishing
8,000
100%
18 7102-6205 Other Printing & Binding
2,500
100%
19 7102-6206 Contractual Services
284,795
100%
20 7102-6207 Equipment Replacement Charge
34,187
100%
21 7102-6208 Dues&Subscriptions
14,560
100%
22 7102-6211 Insurance & Bonds
1,146,300
100%
23 7102-6212 Laundry & Cleaning
10,000
100%
24 7102-6213 Meetings & Travel
1,600
100%
25 7102-6214 Professional &Technical
68,440
100%
26 7102-6215 Repairs & Maintenance
43,000
100%
27 7102-6217 Software Maintenance
4,000
100%
28 7102-6219 Network Operating Charge
10,300
100%
29 7102-6223 Training & Education
7,500
100%
30 7102-6224 Vehicle Operating Charge
10,000
100%
31 7102-6253 Postage
32,000
100%
32 7102-6254 Telephone
32,000
100%
33 7102-6256 Pavement Rehabilitation
18,000
100%
34 7102-6260 Equipment Leasing Costs
4,600
100%
35 7102-6283 Water Purchases - Potable
10,573,713
100%
36 7102-6285 Water Purchases -Reclaimed Water
13,227,296
100%
37 7102-6286 General Admin Charges
714,085
100%
38 7102-6354 Lifeline Expense
6,000
100%
39 Total: O&M $ 28,337,414 $10,573,713 $13,227,296 $ 677,800 $ 677,800 $ 308,091 $ 184,854 $ 245,394 $2,442,467
Table 4-3: Functionalization of Capital Expenses
(A)
(B)
(C)
(D)
(E)
(F)
(G)
1 Water Pipes
$ 90,000,000
66%
34%
2 Water Meters
2,500,000
100%
3 6.3 MG Reservoir
15,000,000
100%
4 3 MG Reservoir
10,000,000
100%
5 .2 MG Elevated Tank
3,000,000
100%
6 Booster Pump Station
2,500,000
100%
7 Total: Assets
$123,000,000
$ 2,500,000
$ 59,400,000
$ 30,600,000
$28,000,000
$2,500,000
8 %Allocation
2.03%
48.29%
24.88%
22.76%
2.03%
Capital Item
9 Rate Funded Capital
4,750,000
96,545
2,293,902
1,181,707
1,081,301
96,545
10 Contribution to/(Use of) Reserves
936,384
19,032
452,205
232,954
213,161
19,032
11 Total: Capital Budget
$ 5,686,384
$ 115,577
$ 2,746,108
$ 1,414,661
$ 1,294,461
$ 115,577
CITY OF EL SEGUNDO / WATER AND WASTEWATER RATE STUDY REPORT 17
111
4.3 Allocation of Expenses to Cost Components
In a Cost of Service analysis, the City's expenses are allocated to the cost causation components. To do
so it is necessary to identify system -wide peaking factors which are shown in column B, Table 4-4. The
system -wide peaking factors are used to derive the cost component allocation bases (i.e., percentages)
shown in columns C through E of Table 44. These peaking factors are based on a review of system data
in similar oceanfront communities in California. Functionalized expenses are then allocated to the cost
components using the allocation bases shown in column A. To understand the interpretation of the
percentages shown in columns B through E we must first establish the base use as the average daily
demand during the year - which is assigned an allocation basis of 1. If the base allocation basis is used to
allocate an expense, it means that the costs associated with that expense are to meet average daily
demand (base) related costs.
Expenses that are allocated to the cost causation components using the maximum day basis are those
attributed to ensuring the water system is able to accommodate the maximum expected daily demand.
The Max Day allocation attributes 63% (1.00/1.58) of the demand (and therefore costs) to base use
(average daily demand) and the remaining 37% to maximum day use (peaking). Maximum hour costs
are costs associated with meeting the highest of peaks within a day - typically these costs are associated
with the distribution system. Expenses allocated using the maximum hour bases assume 39% (1.00/2.57)
of costs are due to base demands, 23% due to max day ((1.58-1)/2.67) and 39% (1-0.39-0.23) are due to
max hour costs. Collectively the maximum day and maximum hour cost components are known as peaking
costs. These allocation bases are used to assign City 0&M functions, shown in column A of Table 4-5
(which were determined on row 39 of Table 4-2), to the cost causation components also shown across the
top of Table 4-5.
Table 4-4: System -Wide Peaking Factors and Allocation to Cost Components
(A) (B)
(C)
(D) (E)
Base 1.00
100•/0
Max Day 1.58
63%
37% 0•/0
Max Hour 2.57
39%
235/o 39%
The allocation bases are chosen based on the type of cost for each line item and the proportion of those
costs associated with each cost causation component (max day, max hour, general, etc.). For example,
distribution, line 4, is allocated using the max hour basis since distribution costs are associated with
serving both average day demands and peak day demands in proportion to max hour allocations
identified in Table 4-4. The distribution system must be sized, constructed, operated, and maintained to
meet max hour demands. Certain cost bases are identical to the cost causation components - such as
water supply - and therefore are easily allocated to the system cost causation component with the same
name. Lines 9 and 10 show the resulting allocation of all expenses to the cost causation components.
General overhead costs are proportionally reallocated to all other cost causation components, except for
water supply costs.
The expenses in column B of Tables 4-5 and 4-6 correspond to the total expenses in Tables 4-2 and 4-3.
CITY OF EL SEGUNDO I WATER AND WASTEWATER RATE STUDY REPORT 18
112
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4.4 Units of Service
Once all expenses have been allocated to the appropriate cost components, the next step is to determine
the units of service over which the costs will be recovered. The standard units are number of customers,
5/8" meter- equivalents (the base meter), annual water use, and extra capacity units. Private fire
connections and city hydrants are also used in the calculation of private fire charges.
4.4.1 CUSTOMER AND METER EQUIVALENTS
Table 4-7 summarizes customer and meter units. Accounts in columns D and E can be found in Table 2-
1. Equivalent meter units account for the potential flow through larger meters and equate this flow to the
total flow through the base meter — in this case - the 5/8 -inch meter. Equivalent meters for each class are
derived by multiplying the AWWA ratio in column C by the number of accounts at a given meter size.
For example, 386 residential 1" accounts are equivalent to 1.7 * 386 = 643 5/8" meters. The same step is
repeated for each meter size and for all residential and non-residential accounts.
Table 4-7: Customer and Equivalent Meter Units
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
5/8" and 3/4"
30
1.0
2,602
550
2,602
550
3,152
1"
50
1.7
386
473
643
788
1,432
11/2"
100
3.3
6
353
20
1,177
1,197
2"
160
5.3
4
346
21
1,845
1,867
3"
350
11.7
-
83
968
968
4"
630
21.0
42
882
882
6"
1300
43.3
-
29
1,257
1,257
8"
2800
93.3
-
1
-
93
93
10"
4200
140.0
-
1
-
140
140
Total
2,998
1,878
3,287
7,701
10,987
Equivalent fire accounts are treated similarly, using the Hazen Williams equation for pipe flow,'
demonstrated in Table 4-8. The ratios calculated in column B are applied to the number of private fire
connections to determine the number of 6" hydrant equivalents. The percentages derived at the bottom of
Table 4-8 are used in Table 4-10 to calculate the cost of providing fire protection service.
' The potential flow is the diameter of the outlet/connection raised to the 2.63 power — the Hazen Williams
equation for pipe flow. For a 2" outlet the 6" equivalent demand factor would be (2/6)^2.63 = .056.
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 20
114
Table 4-8: Fireline 6" Equivalents
(A)
(B)
(C)
(D) (E)
5/8" and 3/4"
0.004
-
-
1"
0.009
-
-
11/211
0.026
-
-
2"
0.056
11
1 -
3"
0.162
12
2 -
4"
0.344
96
33 -
6"
1.000
115
115 608
8"
2.131
146
311 -
10"
3.832
38
146 -
Total
418
607 608
49.97% 50.03%
4.4.2 WATER USAGE AND PEAKING
Other relevant units include annual water usage and peaking units. Table 4-9 shows the calculation of
extra capacity units for each class. The single-family residential tier definitions in columns B and C are
discussed in detail in Section 5.3.
Annual usage in column D is the total amount of water each class is forecasted to use in the test year,
which is also shown in Table 2-2. Average day in column E is column D divided by 365. The maximum
day peaking factor in column F is based on a detailed analysis of billing data. It represents the
relationship between a forecasted average month and the single highest month of usage (maximum
month) for a given class. The peaking factor in column F is multiplied by the average day use in Column
E to determine the maximum total capacity in column G. Column H is the difference of column E and
column G; these extra capacity units are used to distribute peaking costs between the classes. The
maximum hour peaking ratios are estimated by multiplying the maximum hour peak by the ratio of the
system max hour to max day (2.57/1.58= 1.63) from Table 4-4. The same steps are applied to calculate
maximum hour total units, subtracting units in column G from those in column J to determine maximum
hour extra capacity units.
Extra capacity units for public and private fire connections are also included in rows 7 and 8 of Table 4-9.
Detail for these units can be found in Table 4-10. City staff estimates that reasonable concurrent
maximum fire flow is approximately 3,500 gallons for 3 hours, shown in lines 1 and 2. This is equivalent
to 842 Ccf maximum day demand (3.5 thousand gallons per minute * 3 hours * 60 minutes, converted to
Ccf) and 5,895 Ccf maximum hour demand (3.5 thousand gallons per minute * 24 hours * 60 minutes —
maximum day demand, converted to Ccf). These demands are then allocated between public and private
fire protection. The percentages on line 3 of Table 4-10, are the result of the fire equivalencies from Table
4-8. These are applied to the capacity calculated on row 4 to determine the units on rows 5 and 6.
Columns L and M of Table 4-9 contain a summary of the customer units determined in Tables 4-7 and 4-
8.
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 21
115
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4.4.3 COST DISTRIBUTIONS TO THE COST COMPONENTS
Table 4-11 summarizes the results of the cost allocation to the cost components and units of service
determination in Tables 4-5, 4-6, and 4-9. The total cost to be recovered on row 5, column B can also be
found in Table 4-1 row 9, column D.
The unit costs on row 7 are the result of dividing the cost on row 5 for each cost component by the units
of service on row 6.
Table 4-12 presents the results of the cost of service process. Using the unit costs calculated in Table 4-11
and the detailed units of service in Table 4-9, the costs are distributed to each customer class. For
example, the base unit cost is multiplied by the base units for the SFR Tier 1 class ($1.66 dollars per Ccf
240,677 Ccf = $398,849) in row 2, column E. The same step is applied for each class and each cost
component. The total cost of service by class, shown in Column B, is the total amount of revenue to be
collected from each class and is the basis for the rate design in Section 5.
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 23
117
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5. Rate Derivation
5.1 Existing Rate Structure and Rates
The City's existing rate structure consists of a fixed monthly charge9 by meter size and a set of volumetric
rates depending on customer type and amount of usage. The City has a four -tier volumetric rate structure
with different unit rates depending on customer class. Table 5-1 shows the existing rate structure and
rates. Raftelis recommends adjusting the number and size of the single-family residential tiers, creating a
uniform rate for non-residential customers, and creating a separate uniform rate for Chevron.
Table 5-1: Existing Monthly Rate Structure and Rates
Monthly, Capacity Charges
Volumetric Charges per Ccf
5/8" & 3/4"
$ 11.95
Single Family Residential
1"
27.10
Tier 1 0-10
$ 2.82
11/2"
33.94
Tier II 10-20
5.19
2"
62.90
Tier III 20-50
5.90
3"
141.61
Tier IV 50+
5.19
4"
251.25
6"
469.74
Non -Residential
8"
823.49
Tier 1 0-10
$ 3.43
10"
1,288.35
Tier II 10-20
4.19
12"
1,855.05
Tier III 20-50
4.44
16"
3,293.96
Tier IV 50+
4.66
20"
5,144.59
5.2 Recycled Water Rate'
In addition to directly passing through the cost to purchase recycled water from West Basin, the City
currently imposes a surcharge on all recycled water used by its customers. The surcharge is $0.31 per Ccf
for regular retail customers and $1.0075 per Ccf for Chevron.
Raftelis recommends eliminating the surcharge on regular retail customers. Given that the City is only
responsible for maintaining the meter and providing customer service, each recycled customer should pay
the same meter charge as potable customers, derived in section 5.3. The pass through supply costs should
remain unchanged.
The surcharge paid by Chevron in set by contract with the City. In accordance with the contract, that rate
should increase by the same percentage as potable rates in the future.
5.3 Proposed Monthly Service Charge
5.3.1 MONTHLY SERVICE CHARGE COMPONENTS
The proposed monthly service charge has four components, which are discussed below. Table 5-2 shows
the derivation of these components for 5/8 -inch meters. The units for lines 1 to 3, in column C, are
9 Although rates are calculated and charged on a monthly basis, the City sends bills to residential customers
bimonthly.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 25
119
equivalent meters; units for line 4 are customer accounts, including private fire service accounts. The
annual unit costs are the result of dividing the total cost by the number of units.
Table 5-2: Monthly Meter and Customer Charge Derivation
5.3.2 WATER SUPPLY COMPONENT
Although most the City's water supply costs are variable, approximately $165,000 of the annual total is
billed to the City on a fixed basis. The City has decided to recover this portion of supply costs on the
fixed service charge.
5.3.3 METER COMPONENT
The meter service component recovers two types of costs: 1) costs associated with maintaining and
servicing meters (meter service component) and 2) capacity (also known as peaking) costs. Both costs
increase as the meter size increases and are proportional to the AWWA hydraulic capacity ratios shown
in column B of Table 5-3. The capacity ratios, which are a function of a meter's safe maximum flow rate,
are used to increase the meter service component for larger capacity meters. This assumes that the
potential capacity (peaking) demand is proportional to the potential flow through each meter size as
established by the AWWA hydraulic capacity ratios. The ratios shown in column B are the ratio of
potential flow through each meter size compared to the flow through a 5/8 -inch meter. The 5/8 -inch
meter is used as the base since it is the smallest and most numerous meter size. Larger meters have the
potential to demand more water instantaneously and generate greater peak demands. The meter service
component for a 5/8 -inch meter was derived in Table 5-2. As shown in columns D, E, and G, the meter
service component, water supply component, and public fire component for larger meters are relative to
the AWWA capacity ratios shown in column B of Table 5-3.
5.3.4 CUSTOMER COMPONENT
The customer component derivation, shown in line 4 of Table 5-2, recovers costs associated with meter
reading, customer billing and collection, as well as answering customer calls. These costs are the same
for all meter sizes as it costs the same to bill a small meter as it does a larger meter.
5.3.5 TOTAL MONTHLY SERVICE CHARGE FOR ALL METERS
Table 5-3 shows the derivation of the monthly service charge by meter size in column H, which is the
addition of columns D through G. The water supply, meters, and public fire charges increase in
proportion to AWWA Capacity ratios (shown in column C), while the customer charge is the same at
each meter size (column E).
CITY OF EL SEC -UNDO I (MATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 26
120
niontmy
Component
(A)
(B)
(C)
(D)
(E)
1 Water Supply Cost
$ 165,444
10,987
$ 15.06
$ 1.25
2 Meter Cost
516,054
10,987
46.97
3.91
3 Public Fire Cost
610,968
10,987
55.61
4.63
4 Customer Service
531,633
5,294
100.42
8.37
5 Total
$ 1,824,098
$ 218.05
$ 18.17
5.3.2 WATER SUPPLY COMPONENT
Although most the City's water supply costs are variable, approximately $165,000 of the annual total is
billed to the City on a fixed basis. The City has decided to recover this portion of supply costs on the
fixed service charge.
5.3.3 METER COMPONENT
The meter service component recovers two types of costs: 1) costs associated with maintaining and
servicing meters (meter service component) and 2) capacity (also known as peaking) costs. Both costs
increase as the meter size increases and are proportional to the AWWA hydraulic capacity ratios shown
in column B of Table 5-3. The capacity ratios, which are a function of a meter's safe maximum flow rate,
are used to increase the meter service component for larger capacity meters. This assumes that the
potential capacity (peaking) demand is proportional to the potential flow through each meter size as
established by the AWWA hydraulic capacity ratios. The ratios shown in column B are the ratio of
potential flow through each meter size compared to the flow through a 5/8 -inch meter. The 5/8 -inch
meter is used as the base since it is the smallest and most numerous meter size. Larger meters have the
potential to demand more water instantaneously and generate greater peak demands. The meter service
component for a 5/8 -inch meter was derived in Table 5-2. As shown in columns D, E, and G, the meter
service component, water supply component, and public fire component for larger meters are relative to
the AWWA capacity ratios shown in column B of Table 5-3.
5.3.4 CUSTOMER COMPONENT
The customer component derivation, shown in line 4 of Table 5-2, recovers costs associated with meter
reading, customer billing and collection, as well as answering customer calls. These costs are the same
for all meter sizes as it costs the same to bill a small meter as it does a larger meter.
5.3.5 TOTAL MONTHLY SERVICE CHARGE FOR ALL METERS
Table 5-3 shows the derivation of the monthly service charge by meter size in column H, which is the
addition of columns D through G. The water supply, meters, and public fire charges increase in
proportion to AWWA Capacity ratios (shown in column C), while the customer charge is the same at
each meter size (column E).
CITY OF EL SEC -UNDO I (MATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 26
120
Table 5-3: Monthly Service Charge Derivation by Meter Size
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
1 5/8" and 3/4"
1.00
3,152 $
1.25 $
3.91 $
8.37 $
4.63 $
18.17
2 1"
1.67
859
2.09
6.52
8.37
7.72
24.71
3 11/2"
3.33
359
4.18
13.05
8.37
15.45
41.04
4 2"
5.33
350
6.69
20.87
8.37
24.71
60.65
5 3"
11.67
83
14.64
45.66
8.37
54.06
122.73
6 4"
21.00
42
26.35
82.19
8.37
97.31
214.23
7 6"
43.33
29
54.38
169.61
8.37
200.80
433.15
8 8"
93.33
1
117.12
365.31
8.37
432.50
923.29
9 10"
140.00
1
175.67
547.96
8.37
648.74
1,380.75
Table 5-4 shows the monthly Fixed Service Charge for the next five fiscal years. They are derived by
applying the revenue adjustments shown in Table 3-7 to the service charges for FY 2020 shown in Table
5-3. Charges are rounded up to the nearest whole penny and may not match the unrounded values in
Table 5-3.
Table 5-4: Five Year Fixed Service Charges
5/8" and 3/4"
$ 11.95
$ 18.18
$ 18.73
$ 19.30
$ 19.88
$ 20.48
1"
27.10
24.71
25.46
26.23
27.02
27.84
11/2"
33.94
41.05
42.29
43.56
44.87
46.22
2"
62.90
60.65
62.47
64.35
66.29
68.28
3"
141.61
122.74
126.43
130.23
134.14
138.17
4"
251.25
214.23
220.66
227.28
234.10
241.13
6"
469.74
433.16
446.16
459.55
473.34
487.55
8"
823.49
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,288.35
1,380.75
1,422.18
1,464.85
1,508.80
1,554.07
5.4 Proposed Private Fire Charges
Table 5-5 shows the derivation of the monthly private fire charge in column E. The total peaking costs for
the private fire service class, shown in Table 4-12, line 8, columns F and G, is divided by the number of
equivalent private fire meters from Table 4-8 and converted to a monthly basis. In Table 5-6, the cost for
a 6" equivalent meter is scaled using the ratios in column B and added to the customer cost derived in
Table 5-2. The proposed private fire charges are based on the potential flow through each private fire
connection and are calculated in accordance with principles set forth in the American Water Works
Association M 1 Manual, Principles of Water Rates, Fees and Charges. 10
10 Section VII of the fifth edition
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 27
121
Table 5-5: Private Fire Charge Calculation
(A) (B) (C) (D) (E)
Private Fire Cost $ 610,321 607.36 $1,004.88 $ 83.74
Table 5-6: Private Fire Charge Derivation by Meter Size
(A)
(B)
(C)
(D)
(E)
(G)
5/8" and 3/4"
0.00
-
8.37
0.35
8.72
1"
0.01
-
8.37
0.75
9.12
11/2"
0.03
-
8.37
2.19
10.55
2"
0.06
11
8.37
4.66
13.03
3"
0.16
12
8.37
13.53
21.90
4"
0.34
96
8.37
28.83
37.20
6"
1.00
115
8.37
83.74
92.11
8"
2.13
146
8.37
178.45
186.82
10"
3.83
38
8.37
320.92
329.29
Rates will increase in subsequent years by the adjustments shown in Table 3-7 in the same manner as the
meter charges and are rounded up to the next cent.
Table 5-7: FY 2020 - 2025 Fireline Monthly Charges
5/8" and 3/4"
-
$ 8.73
$ 9.00
$ 9.27
$ 9.55
$ 9.84
1"
-
9.13
9.41
9.70
10.00
10.30
11/2"
-
10.56
10.88
11.21
11.55
11.90
2"
58.80
13.03
13.43
13.84
14.26
14.69
3"
89.75
21.90
22.56
23.24
23.94
24.66
4"
120.71
37.20
38.32
39.47
40.66
41.88
6"
182.61
92.11
94.88
97.73
100.67
103.70
8"
232.89
186.83
192.44
198.22
204.17
210.30
10"
306.44
329.29
339.17
349.35
359.84
370.64
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 28
122
5.5 Volumetric Rates
5.5.1 CUSTOMER CLASSES
Raftelis recommends creating an additional customer class for Chevron in addition to the existing
residential and non-residential classes.
5.5.2 TIER DEFINITIONS
The City proposes to change the tier definitions from those shown in Column B to those shown in
column C of Table 5-8. The new tier definitions are based on a detailed analysis of the City's billing
data. The first tier provides for the residential winter average usage, the second tier includes the
residential summer average, and the third tier is for all use in excess of Tier 2. Residential customers in
the City use an average of 9 Ccf in the winter months, which is strongly correlated with indoor usage.
Average summer use is 13 Cc£ These averages are used as the breakpoints for the first two tiers.
Raftelis proposes a uniform rate for all other customers classes. Commercial customers tend to be much
less homogenous and their individual water needs vary much more than single family residential.
Table 5-8: Proposed Single Family Residential Tiers
(A)
(B)
(C)
1 Tier 1
0-10
1-9
2 Tier
11-20
10-13
3 Tier
21-50
14+
4 Tier
51+
N/A
5.5.3 VOLUMETRIC RATE DERIVATION
The total volumetric rate is the summation of unit rates for each cost component: Supply, Delivery,
Peaking (Max day and hour), and revenue offsets. Each unit rate will be derived and added together to
get the total volumetric rate for each tier and customer class. Each cost component is defined below.
5.5.4 COST COMPONENT DEFINITIONS
The commodity rates for each class and tier are derived by summing the unit rates ($/Ccf) for:
1. Water Supply
2. Delivery
3. Peaking
4. Revenue Offsets
Water Supply costs are costs associated with purchasing treated water from West Basin Municipal Water
District.
Delivery costs are the operating and capital costs associated with delivering water to all customers
through the distribution system (pipelines and storage reservoirs) at a constant average rate of use — also
known as serving customers under average daily demand conditions. Therefore, delivery costs are spread
over all units of water which results in a uniform delivery unit cost for all classes and tiers.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 29
123
Peaking costs, or extra -capacity costs, represent costs incurred to meet customer peak demands in excess
of average daily demand. Peaking costs are the sum of columns F and G in Table 4-12 — that is maximum
day and maximum hour costs. Peaking costs are distributed to each tier and class using peaking factors
derived from customer use data — discussed later in this section.
Revenue Offsets are revenues from non -rate sources that reduce the amount of revenue required from
customers. They are reflected as negative values added to the other components of the rates.
5.5.5 DERIVATION OF THE UNIT COST BY COST COMPONENT
Supply Unit Costs
Table 5-9 shows the supply cost derivation for all customers. First, the volumetric portion of West Basin's
charges to the city is calculated. In the 2020 test year, West Basin charges $1,385 per acre foot of treated
water, or $3.18 per Ccf. This cost is multiplied by the forecasted demand with a 5% water loss factor to
provide an estimate of the total amount of water the City will buy in column C. The total cost (E) is
divided by the demand in column C to provide a unit cost per Ccf of water sold in column F.
The cost in column E and the fixed portion of supply costs in Table 5-2, row 1 equal the total potable
water supply cost in Table 4-11 column B.
Table 5-9: Supply Cost Derivation
(A) (B) (C)
Volume Rate
1 Per Acre Foot $ 1,385
2 Per Ccf $ 3.18 3,105,572
5.5.6 DELIVERY COST
(D) (E) (F)
5%
3,269,023 $ 10, 408, 269 $ 3.35
The delivery rate in Table 5-10 is derived by dividing the total base costs from Table 4-12, column F by
the total forecasted demand. The base rate is the unit cost to supply and deliver water under average daily
demand (ADD) conditions. Table 5-10 identifies the rate to deliver water during average daily demands.
This delivery cost is the same for all classes and for all tiers.
Table 5-10: Derivation of the Delivery Unit Cost
Total:
5.5.7 PEAKING RATE
(A) (B) (C)
$5,146,541 3,105, 572 1.66
Table 5-11 shows the peaking rate derivation for each class. The peaking unit cost (peaking rate) per Ccf
(column D) is calculated by dividing the peaking costs (column B) by water use (column C) for each class
and tier. The peaking unit cost is correlated with the peaking factor — a higher peaking factor correlates
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 30
124
to a higher peaking rate. The total peaking costs in column B of Table 5-11 for each class matches the
sum of maximum day and maximum hour peaking costs in Table 4-12Error! Reference source not
found..
Table 5-11: Derivation of Peaking Rate
(A)
Single Family Residential
1 Tier
2 Tier
3 Tier3
4 Non -Residential
5 Chevron
Total:
(B) (C) (D)
$ 78,763 240,677 $ 0.33
57,068 54,186 1.05
122,333 66,387 1.84
1,049,379 1,184, 820 0.89
1,499, 729 1,559,501 0.96
$ 2,807,272 3,105, 572
5.5.8 NON -RATE REVENUE OFFSET
Table 5-12 shows the derivation of the non -rate revenue offset for all customers. First, the revenue
amount in column D, row 7 is allocated between all classes on the basis of water demand. This result is
shown in rows 1, 5, and 6 of column C. The SFR allocation, based on all usage, is reallocated to only
offset rates for Tier 1. While only Tier 1 receives the benefit of the revenue offset, all SFR customers pass-
through Tier 1 and therefore all customers benefit from the allocation. The unit rate offset in column E is
the result of dividing the allocation for each class in column D by the demand in column B.
The total offset amount can be found in Table 4-11, column M, row 3.
Table 5-12: Derivation Non -Rate Revenue Offset Unit Rates
(A)
(B)
(C)
(D)
(E)
1 Single Family Residential
361,251
11.6% $
(19,933)
(0.06)
2 Tier 1
240, 677
100.005o
(19, 933)
(0.08)
3 Tier 2
54,186
0.00%
4 Tier 3
66,387
0.00%
5 Non -Residential
1,184,820
38.15%
(65,376)
(0.06)
6 Chevron
1,559,501
50.22%
(86,051)
(0.06)
7 Total
3,105, 572
$
(171, 360)
5.5.1 RECYCLED WATER SURCHARGE REVENUE OFFSET
The calculation of the recycled water surcharge revenue offset unit rate is like the non -rate revenue offset
calculation in Table 5-12. Rather than proportion the total amount of the offset among all customers
evenly, the City has elected to allocate 62% of the offset to customers other than Chevron. The first tier of
SFR usage also receives a larger portion of the benefit than the second and third tiers.
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 31
125
Table 5-13: Derivation of Recycled Surcharge Revenue Offset Unit Rates
(A)
(B)
(C)
(D)
(E)
1 Single Family Residential
361,251
23.4%
$ (603,836)
(1.67)
2 Tier 1
240,677
94.67°0
(571, 660)
(2.38)
3 Tier 2
54,186
5.33%
(32,176)
(0.59)
4 Tier
66,387
0.00%
-
1.05
5 Non -Residential
1,184,820
76.63%
(1,980,444)
(1.67)
6 Subtotal
1,546,071
62.0%
$ (2,584,280)
6.85
7 Chevron
1,559,501
1.66
$ (1,583,914)
(1.02)
8 Total
3,105, 572
5 Chevron
( 4,168,194)
1.66
5.5.2 FINAL RATE DERIVATION
Tables 5-9 to 5-13 derive the rates for each cost component - supply, delivery, peaking, revenue offset,
and recycled surcharge offsets.
Table 5-14 shows the total volumetric rate derivation for all customers in FY 2020, which is the
summation of all rate components.
Table 5-14: Derivation of Rates by Tier and Class
(A)
(B)
(C)
(D)
(E)
(F)
(G)
Single Family Residential
1 Tier 1 $
3.35 $
1.66 $
0.33 $
(0.08) $
(2.38) $
2.88
2 Tier 2
3.35
1.66
1.05
(0.59)
5.47
3 Tier3
3.35
1.66
1.84
6.85
4 Non -Residential
3.35
1.66
0.89
(0.06)
(1.67)
4.17
5 Chevron
3.35
1.66
0.96
(0.06)
(1.02)
4.90
5.5.3 5 -YEAR RATES
Table 5-15 shows the proposed five-year volumetric rates by escalating the volumetric rates derived in
Table 5-14, which have been rounded to the nearest whole penny, by the proposed revenue adjustments
shown in Table 3-7. Customer bill impacts are discussed in Section 6.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 32
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Table 5-15: Five -Year Volumetric Rates
Residential
Tier 1
$
2.82
$
2.88
$
2.97
$
3.06
$
3.16
$
3.26
Tier 2
5.19
5.47
5.64
5.81
5.99
6.17
Tier 3
5.90
6.86
7.07
7.29
7.51
7.74
Non -Residential
$
3.43
$
4.17
$
4.30
$
4.43
$
4.57
$
4.71
Chevron
$
3.43
$
4.90
$
5.05
$
5.21
$
5.37
$
5.54
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 33
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6. Water Bill Impacts
6.1 Monthly Single Family Bill Impacts
Table 6-1 shows the Single Family customer bill impacts for various levels of use and meter sizes.
Column C shows the percent of bills that fall below a certain level of use during a typical month. For
example, 49.2% of total customer monthly bills are 9 Ccf or less.
Table 6-1: Single Family Monthly Bill Impacts
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 34
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(A)
(B)
(C)
(D)
(E)
(F)
1 5/8"
and 3/4"
-
0.8%
11.95
18.18
6.23
2 5/8"
and 3/4"
5
22.6%
26.05
32.58
6.53
3 5/8"
and 3/4"
9
49.2%
37.33
44.10
6.77
4 5/8"
and 3/4"
10
55.69,6
40.15
49.57
9.42
5 5/8"
and 3/4"
13
71.5%
55.72
65.98
10.26
6 5/8"
and 3/4"
30
97.9%
151.05
182.60
31.55
7 1"
40
99.4%
225.20
257.73
32.53
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 34
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7. Wastewater Financial
Plan
The City of El Segundo is responsible for the operation and maintenance (O&M) of an extensive
wastewater collection system but does not provide wastewater treatment. Wastewater on the east side of
the City is sent to Los Angeles County Sanitation Districts (LACSD). The county bills those customers
directly on their annual property tax bills. Wastewater from the west side is treated by the City of Los
Angeles, which bills the City of El Segundo.
Raftelis analyzed existing operating revenues, O&M, capital expenditures, and reserve requirements for
the wastewater enterprise. This section discusses projected revenues, O&M expenses, reserve funding and
revenue adjustments needed to ensure the financial sustainability of the utility.
7.1 Financial Plan Assumptions
7.1.1 CURRENT WASTEWATER RATES
The City currently has three sets of rates. Customers on the west side pay a monthly treatment fee based
on meter size and which varies by customer class. All customers pay a monthly service fee which also
varies by meter size and class. Table 7-1 presents the current rates in effect in FY 2020.
Table 7-1: Current Wastewater Service Charges
Treatment Fee
3/4"
$ 16.63
$ 27.48
$ 19.62 $
19.62
$
16.27
$ 16.27
$ 15.38
$
15.38
1"
21.15
38.50
48.97
48.97
21.99
21.99
24.35
24.35
11/2"
22.87
58.74
90.18
90.18
63.55
63.55
37.06
37.06
2"
24.29
131.73
237.73
237.73
193.99
193.99
56.19
56.19
3"
447.75
440.61
440.61
486.29
486.29
139.34
139.34
4"
616.10
1,882.76
1,882.76
690.89
690.89
165.00
165.00
6'
1,882.76
1,882.76
690.89
690.89
165.00
165.00
Service Fee
3/4"
$ 6.60
$ 10.56
$ 7.26
$
6.60
$ 7.26
$ 6.60
$
6.60
1"
7.92
14.85
18.81
7.26
7.92
18.15
9.24
9.24
11/2"
8.58
22.44
33.00
46.21
24.42
33.00
13.86
13.86
2"
9.24
49.50
85.81
132.00
72.60
72.60
19.81
19.81
3"
171.62
184.81
184.81
184.81
297.02
52.81
52.81
4"
231.02
693.05
297.02
264.02
462.03
66.00
66.00
6"
693.05
759.05
264.02
1,254.10
66.00
66.00
Volume Charge
$ 0.73
$ 0.91
$ 1.04 $
1.04
$
1.04
$ 1.04
$ 0.91
$
0.91
7.1.2 NUMBER OF ACCOUNTS AND WATER USE
Table 7-2 shows the number of wastewater accounts and the wastewater flow (based on water use for
wastewater customers) in Ccf for each customer class in FY 2019. As with the water utility demand
projection, the Financial Plan assumes no growth in customer accounts or increased wastewater
generation, on a per capita basis, in future years.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 35
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Table 7-2: Wastewater Accounts and Wastewater Use in Hundred Cubic Feet
3/4"
2,605
247
161
-
115
1
16
3,145
1"
381
276
92
10
50
21
12
842
11/2"
6
219
31
48
21
16
5
346
2"
2
101
24
87
19
69
16
4 322
3"
1,133,424
3
3
28
2
7
7
1 51
4:'
5
4
13
3
13
3
1 42
6"
1
10
1
15
-
- 27
2,994 851 316 196 211 142 59 6 4,775
Use (Ccf) 361,205 267,389 118,555 309,014 51,309 344,064 20,052 14,492 1,486,080
7.1.3 WASTEWATER O&M EXPENSES
Raftelis projects wastewater O&M expenses by applying the inflation factors in Table 3-3 to the FY 2020
O&M budget. Table 7-3 summarizes the budgeted and projected O&M expenses during the Study
period. The forecast of treatment fees for the study period is based on the projections provided by the City
of Los Angeles; treatment costs will increase significantly in 2021.
Table 7-3: Projected Wastewater O&M Expenses
Salaries
$ 581,630 $
599,079 $
617,051 $
635,563 $
654,630 $
674,269
Benefits
355,099
383,507
414,187
447,322
483,108
521,757
Supplies
97,800
100,734
103,756
106,869
110,075
113,377
Utilities
65,000
68,172
71,500
74,993
78,657
82,502
Treatment Fees
1,999,993
2,737,200
2,882,500
2,829,200
2,562,800
2,834,900
Service Charges
1,100,412
1,133,424
1,167,427
1,202,450
1,238,523
1,275,679
Total: Sewer Operating Expenses $ 4,199,934 $ 5,022,116 $ 5,256,422 $ 5,296,396 $ 5,127,793 $ 5,502,484
7.1.4 PROJECTED CAPITAL IMPROVEMENT PROGRAM
Table 7-4 summarizes the City's five-year CIP. The proposed capital improvement program will be
funded entirely through rate revenue and reserve funds, also known as PAY -GO funding, rather than
issuing debt.
Table 7-4: Wastewater Capital Improvement Projects
Lifeguard Pump Station $ 650,000 $ - $ - $ - $ - $ -
Wastewaterinfrastructure Replacement - 150,000 500,000 500,000 500,000 500,000
7.1.5 RESERVE REQUIREMENTS
Raftelis recommends adopting an updated formal financial reserve policy. The City should maintain the
following in reserves:
1. Operating reserve equal to four months of O&M expenses
2. Capital reserve equal to the average annual forecasted capital spending of the next ten years
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 36
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The wastewater utility is currently achieving approximately 60% of this target and is forecasted to sustain
significant deficits in the future without revenue adjustments.
Table 7-5: Wastewater Fund Balance Forecast
Operating Reserve
$ 1,088,392 $
420,552 $
149,949 $
839,873
$ 1,803,442
Target
1,651,107
1,728,139
1,741,281
1,685,850
1,809,036
Capital Reserve
$ 45,365 $
413,988 $
816,191 $
951,467
$ 1,019,293
Target
716,883
806,240
861,161
917,779
976,146
Total Reserves
$ 1,133,757 $
834,539 $
966,140 $
1,791,340
$ 2,822,735
Target
2,367,990
2, 534,3 79
2, 602,442
2, 603,628
2, 785,182
7.2 Proposed Financial Plan
To ensure that the Wastewater Enterprise has adequate revenues to fund operating and capital
expenditures as well as funds sufficient reserves, Raftelis and City Staff recommend the revenue
adjustments in Table 7-6. The City has not implemented a wastewater rate increase since 2016, requiring
significant adjustments. The proposed rate adjustments will allow the City to achieve its reserve targets by
2025.
Table 7-6: Proposed Wastewater Revenue Adjustments
Wastewater Rate Adjustment 9.0% 9.0% 9.5% 9.5% 9.5%
Table 7-7 shows the cash flow projection with the proposed revenue adjustments from Table 7-6. The
proposed financial plan meets the City's financial needs by meeting long term reserve goals. As indicated
by the negative net cash flow, the City plans to use fund balances to minimize customer impacts as much
as possible. Figure 2 presents the financial plan graphically.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 37
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Table 7-7: Wastewater Enterprise Proposed Financial Plan Pro -Forma
Revenues
Rate Revenue
Additional Revenue
Non -Rate Revenue
Total: Revenue
Rate Increase
Expenses
0&M
Transfer to Capital
Total: Expenses
Op. Surplus/(Deficit)
Op. Reserve
Cap. Reserve
Total Reserve
Target Balance
CIP (Uninflated)
53.0
ul
C
0
$2.5
$2.0
51.5
81.0
$0.5
II
$ 4,493,170 $ 4,493,170 $ 4,493,170 $ 4,493,170 $ 4,493,170 $ 4,493,170
-
303,289
734,970
1,225,522
1,768,797
2,363,694
316,200
261,015
260,442
257,103
255,750
259,199
$ 4,809,370
$ 5,057,474
$
5,488,582
$ 5,975,794
$
6,517,717
$ 7,116,053
9.00%
9.00.0
9.50%
9.50'/o
9.50%
$ 4,199,934
$ 5,022,116
$
5,256,422
$ 5,296,396
$
5,127,793
$ 5,502,484
700,000
150,000
900,000
950,000
700,000
650,000
$ 4,899,934
$ 5,172,116
$
6,156,422
$ 6,246,396
$
5,827,793
$ 6,152,484
$ (90,564)
$ (114,642)
$
(667,840)
$ (270,602)
$
689,924
$ 963,569
1,203,035
1,088,392
420,552
149,949
839,873
1,803,442
50,000
45,365
413,988
816,191
951,467
1,019,293
$ 1,253,035
$ 1,133,757
$
834,539
$ 966,140
$
1,791,340
$ 2,822,735
Z061,006
Z367,990
2,534,3 79
2,602,442
2,603,628
2,785,182
650,000
150,000
500,000
500,000
500,000
500,000
A
2020
Figure 1: Wastewater Financial Plan
Wastewater Total Fund Balance
2021
2022 2023
Combined Balance Target
2024 2025
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 38
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8. Wastewater Enterprise Cost
of Service and Rate Derivation
8.1 Wastewater Cost of Service Analysis
This section discusses the allocation of O&M expenses and capital costs to the wastewater cost components, which
is simplified for the City since it operates as a wastewater collection agency and does not operate a wastewater
treatment plant. The City collects sewage which is sent to either the City of Los Angeles or LACSD. The County
bills customers directly on the property tax bill. The City of Los Angeles bills the City of El Segundo, which must
collect this cost from its customers. Therefore, the City's cost components consist of Flow, Customer, General, and
Treatment (West Side Only) components. The study uses a FY 2021 test year to more accurately allocate the
increased treatment costs.
Raftelis recommends adopting a fixed monthly charge for single family residential users based on 9 Ccf of usage,
the average indoor usage determined in Section 4.4. All other users will pay an equivalent minimum charge each
month, in addition to a volumetric charge that varies based upon whether the customer's service is on the east or
west side of the City.
8.1.1 WASTEWATER REVENUE REQUIREMENT
Table 8-1 presents the summarized test year revenue requirements shown in column D, line 8. The values
displayed here align with the FY 2021 costs presented in Table 7-6.
Table 8-1: Allocating FY 2018 O&M Costs to Cost Causation Components
Revenue &equirements •.
(A) (B) (C) (D)
1 Operations and Maintenance $5,022,116 $ 5,022,116
2 PAYGO 150,000 150,000
3 Contribution to Operating Reserve (114,642) (114,642)
4 Subtotal: Revenue Requirements
Adiustments
5 Misc. Revenue
6 Mid Year Increase
7 Subtotal: Adjustments
8 Total: Net Revenue Required
8.1.2 COST ALLOCATION TO FUNCTIONS
$5,022,116 $ 35,358 $ 5,057,474
$ 261,015 $ 261,015
(101,096) (101,096)
$ 261,015 $ (101,096) $ 159,919
$4,761,101 $ 136,454 $ 4,897,555
Table 8-2 shows the allocation of the City's FY 2021 O&M budget to the functions they serve: treatment,
collection, billing, and general overhead. The total allocation to each cost component is shown on the final line of
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 39
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the table. Table 8-3 presents the allocation of wastewater assets to functions, which is used to allocate cash basis
capital costs to the same components.
Table 8-2: Allocating FY 2021 O&M Costs to Functions
(A)
(B)
(C) (D)
(E)
(F)
1 4301-4101 Salaries Full Time
$ 545,025
80.00%
10.00%
10.00%
2 4301-4102 Salaries Part Time
12,854
80.00%
10.00%
10.00%
3 4301-4103 Overtime
20,600
80.00%
10.00%
10.00%
4 4301-4116 Standby Pay
20,600
80.00%
10.00%
10.00%
5 4301-4117 Opt - Out Payments
-
80.00%
10.00%
10.00%
6 4301-4201 Retirement CalPERS
145,800
80.00%
10.00%
10.00%
7 4301-4202 FICA
43,763
80.00%
10.00%
10.00%
8 4301-4203 Workers' Compensation
54,017
80.00%
10.00%
10.00%
9 4301-4204 Group Insurance
120,538
80.00%
10.00%
10.00%
10 4301-4209 PARS Expense
8,532
80.00%
10.00%
10.00%
11 4301-4210 OPEB Expense
10,857
80.00%
10.00%
10.00%
12 4301-5203 Repair & Maintenance Supplies
51,500
100.00%
13 4301-5204 Operating Supplies
38,934
100.00%
14 4301-5207 Small Tools & Equipment
1,030
100.00%
15 4301-5215 Vechile Gasoline Charge
9,270
100.00%
16 4301-6101 Gas Utility
1,030
100.00%
17 4301-6102 Electric Utility
64,155
95.00%
5.00%
18 4301-6103 Water UtiIity
2,987
100.00%
22 4301-6206 Contractual Services
2,737,200
100.00%
23 4301-6207 Equipment Replacement Charge
82,644
100.00%
24 4301-6208 Dues & Subscriptions
1,030
100.00%
25 4301-6211 Insurance & Bonds
317,343
100.00%
26 4301-6212 Laundry & Cleaning
6,180
100.00%
28 4301-6214 Professional & Technical
20,600
100.00%
29 4301-6215 Repairs & Maintenance
236,900
100.00%
30 4301-6217 Software Maintenance
3,090
100.00%
31 4301-6219 Network Operating Charge
3,502
100.00%
32 4301-6223 Training & Education
2,884
100.00%
33 4301-6224 Vehicle Operating Charge
16,480
100.00%
35 4301-6253 Postage
20,600
100.00%
36 4301-6254 Telephone
12,360
100.00%
37 4301-6286 General Admin Charges
409,811
100.00%
38 Misc. Revenue
(261,015)
100.00%
39 Total: O&M $4,761,101 $ 2,737,200 $ 1,267,294 $ 118,859 $ 637,748
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 40
134
Table 8-3: Allocating FY 2021 Capital Costs to Functions
(A) (B) (C) (D) (E) (F)
1 Wastewater Pipes $120,000,000 100.000/0
2 Wastewater Pump Stations $ 30,000,000 100.001%
3 Total: Assets $150,000,000 $ - $150,000,000 $ - $
4 %Allocation 0.00% 100.000/0 0.00% 0.00%
Capital Costs
5 Transfer to Capital Fund 150,000 0.00% 100.00'0 0.00% 0.00%
6 Contribution to Reserves (114,642) 0.00% 100.00'/0 0.00% 0.00%
7 Mid Year Adjustment 101,096 0.00% 100.00'/0 0.00% 0.00%
8 Total: Capital Costs $ 136,454 $ - $ 136,454 $ - $
8.1.3 ALLOCATION TO COST COMPONENTS
Tables 8-4 and 8-5 show the allocation of functionalized O&M and capital costs to the appropriate cost
components. Billing costs are recovered on an equal basis from each customer, while collection costs are allocated
based on volume. General costs are allocated proportionally between volume and bills.
Treatment costs are only allocated to customers on the west side whose wastewater is treated by the City of Los
Angeles. Costs are allocated between volume, Biochemical Oxygen Demand (BOD), and Total Suspended Solids
(TSS) based on a detailed analysis of the City's 2020 revenue requirement from Los Angeles, presented in Table 8-
6. These charges are based on the strength, distance, and total volume of wastewater sent by El Segundo for
treatment. Row 1 of Table 8-6 presents the rates charged by the City of Los Angeles. The charges on row 4 are
derived by applying the rates to the units on row 3. Distance costs are reallocated to other cost components, and
the resulting allocation percentages on row 6 are used in Table 8-4 to allocate treatment costs to the cost
components.
Table 8-4: Allocation of Functionalized O&M to Cost Components
(A) (B) (C) (D) (E) (F) (G)
1 Treatment $ 2,737,200 35.19% 36.53% 28.29%
2 Collection 1,267,294 100.00%
3 Billing 118,859 100.00.0
4 General 637,748 583,063 54,685
5 Total: O&M $ 4,761,101 $ 1,850,357 $ 173,544 $ 963,168 $ 999,774 $ 774,258
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 41
135
Table 8-5: Allocation of Functionalized Capital Costs to Cost Components
All West Only
:..TSS
(A) 'Function (B) (C) (D) (E) (F) (G)
1 Treatment $
2 Collection 136,454 100.00%
3 Billing -
4 General - -
5 Total: Capital $ 136,454 $ 136,454 $ $ - $ - $
Table 8-6: City of Los Angeles Charges
(A)
(B)
(C)
(D)
(E) (F)
1 Rates
$21,954.00
$ 1,347.66 $
377.15
$ 272.49
2 Daily Units
564,561
1.399
5.189
5.562
3 Annual Units
0.406
511
1,894
2,030
4 Charge
$ 8,913
$ 688,162 $
714,316
$ 553,190 $1,964,582
5 %Allocation
0.45%
35.03%
36.36%
28.16%
6 Reallocation
62,907
35.19%
36.53%
28.29%
8.1.4 UNITS OF SERVICE
Table 8-7 summarizes the wastewater units of service. Volume in column B is derived by assuming each customer
contributes at least 9 Ccf per month to the wastewater system and accounting for all usage above 9 Ccf by larger
customers. The total also includes assumed ADU usage at 4 Ccf per month for 90 units. Bills in column C equal
the number of accounts for each class, multiplied by the number of bills received each year. Pounds of BOD and
TSS are derived in Table 8-8.
Table 8-7: Wastewater Units of Service
(A)
(B)
(C)
(D)
(E)
(F)
1 SFR
327,672
35,928
327,672
489,286
564,561
2 MFR
275,241
10,212
275,241
410,995
474,225
3 Commercial (West)
145,076
3,792
145,076
549,907
549,907
4 Commercial (East)
314,521
2,352
5 Industrial (West)
62,907
2,532
62,907
289,027
289,027
6 Industrial (East)
346,898
1,704
7 Institutional (West)
23,922
708
23,922
35,721
41,216
8 Institutional (East)
14,625
72
9 Total:
1,510,862
57,300
834,818
1,774,936
1,918,937
Raftelis conducted a mass balance to estimate the wastewater strengths and loadings of each customer class. Plant
totals on line 8 are known based on the bill provided by the City of Los Angeles. If 10% of this total is due to
inflow and infiltration (I&I) it suggests that retail customers contribute 614,000 Ccf of wastewater. This implies
that approximately 26% of billed wastewater in column D of Table 8-7 did not return to the plant. This amount is
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 42
136
subtracted from the volumes in Table 8-7 to provide the volumes in Table 8-8, column B. Raftelis used industry
standard wastewater strengths (mg/1) for each class in columns D and F. The loadings in pounds in columns E and
G are the results of applying the strength concentrations to the volumes of wastewater treated.
Table 8-8: Wastewater Strength
(A)
(B)
(C)
(D)
(E)
(F)
(G)
1 SFR
327,672
241,157
180.4
325
489,286
375
564,561
2 MFR
275,241
202,569
151.5
325
410,995
375
474,225
3 Commercial (West)
145,076
106,771
79.9
825
549,907
825
549,907
4 Industrial (West)
62,907
46,298
34.6
1,000
289,027
1,000
289,027
5 Institutional (West)
23,922
17,606
13.2
325
35,721
375
41,216
6 Subtotal:
834,818
614,400
459.6
2,800
1,774,936
2,950
1,918,937
7 1&1
68,267
51.1
280
119,049
261
111,193
8 Plant Total
682,667
510.6
445
1,893,985
477
2,030,130
9 Return Factor
-26.40.0
8.1.5 COST DISTRIBUTIONS
Table 8-9 shows a summary of the costs calculated in Tables 8-4 and 8-5 as well as the total units in Table 8-7. The
unit costs on row 5 are calculated by dividing the cost on row 3 by the units of service on row 4. These unit costs
are used in Table 8-10 to distribute costs to each class by multiplying them by each class's units of service from
Table 8-7. For example, the SFR allocation of volume costs of $403,895 is the result of multiplying 1.32 by
327,672.
Table 8-9: Unit Cost Calculation
(A) (B) (C) (D) (E) (F)
1 0&M $ 1,850,357 $ 173,544 $ 963,168 $ 999,774 $ 774,258
2 Capital 136,454 - - - -
3 Total: Cost $ 1,986,811 $ 173,544 $ 963,168 $ 999,774 $ 774,258
4 Units of Service 1,510,862 57,300 834,818 1,774,936 1,918,937
5 Unit Cost $ 1.32 $ 3.03 $ 1.15 $ 0.56 $ 0.40
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 43
137
Table 8-10: Customer Class Allocations
(A)
(B)
(B)
(C)
(D)
(E)
(F)
1 SFR $
1,421,152
$ 430,895 $
108,815 $
378,050 $
275,602 $
227,790
2 MFR
1,133,278
361,947
30,929
317,558
231,502
191,342
3 Commercial (West)
901,269
190,778
11,485
167,381
309,748
221,878
4 Commercial (East)
420,724
413,601
7,123
8 Institutional (East)
14,625
3.03
5 Industrial (West)
442,390
82,724
7,669
72,579
162,801
116,618
6 Industrial (East)
461,338
456,177
5,161
3.03
39.07
7 Institutional (West)
97,953
31,458
2,144
27,600
20,121
16,630
8 Institutional (East)
19,450
19,232
218
9 Total: $
4,897,555
$ 1,986,811 $
173,544 $
963,168 $
999,774 $
774,258
8.1.6 WASTEWATER RATE CALCULATION
Table 8-11 presents the derivation of the proposed wastewater rates. The treatment cost in column C is the sum of
columns D to F in Table 8-10, which is divided by the volume in column B to provide a unit rate in column E. The
collection rate in column F is calculated by dividing the collection cost for each class in column D by the volumes.
All customers pay the same rate for collection. These rates are added in column G to provide a total volumetric
rate. The rate is multiplied by 9 Ccf, as discussed in Section 7. 1, and added to the monthly billing cost that was
calculated in row 5, column C of Table 8-9.
The result in column J, line 1, is the monthly bill that all single-family residential customers will receive. Column J
also presents non-residential customers' monthly minimums. These customers will also pay the volumetric rate in
column G for each Ccf over 9.
Monthly rates for ADUs, shown in Table 8-12, are derived by multiplying the single family residential volume rate
in column G by 4 Ccf.
Table 8-11: Wastewater Rate Calculation
(A)
(B)
(C)
(D)
1 SFR
327,672 $
881,442 $
430,895
2 MFR
275,241
740,402
361,947
3 Commercial (West)
145,076
699,007
190,778
4 Commercial (East)
314,521
4.82
413,601
5 Industrial (West)
62,907
351,998
82,724
6 Industrial (East)
346,898
1.32
456,177
7 Institutional (West)
23,922
64,351
31,458
8 Institutional (East)
14,625
3.03
19,232
1,510,862 $ 2,737,200 $ 1,986,811
(E)
(F)
(G)
(H)
(1)
0)
2.69
1.32 $
4.01 $
36.05 $
3.03 $
39.07
2.69
1.32
4.01
36.05
3.03
39.07
4.82
1.32
6.13
55.20
3.03
58.23
1.32
1.32
11.84
3.03
14.86
5.60
1.32
6.91
62.19
3.03
65.22
1.32
1.32
11.84
3.03
14.86
2.69
1.32
4.01
36.05
3.03
39.07
1.32
1.32
11.84
3.03
14.86
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 44
138
8.1.7 FIVE YEAR PROPOSED WASTEWATER SERVICE RATES
Table 8-12 shows the proposed 5 -year rates for all customer classes. The out -year rates are derived by escalating the
rates from Table 8-11 by the revenue adjustments from Table 7-6. All rates are rounded up to the nearest whole
penny.
Table 8-12: Proposed Five -Year Wastewater Service and Usage Charges
SFR
$ 23.23 $
39.07 $
42.60 $
46.65 $
51.09 $
55.95
MFR
38.04
39.07
42.60
46.65
51.09
55.95
institutional West
21.98
39.07
42.60
46.65
51.09
55.95
Commercial West
26.88
58.23
63.47
69.50
76.11
83.35
Industrial West
22.87
65.22
71.10
77.86
85.26
93.36
Non -Res East
7.26
14.86
16.21
17.75
19.44
21.29
ADU
16.02
17.47
19.13
20.95
22.95
olumetric .-
A.
sage above 9
2020
2021
2022
2023
2024
2025
SFR
$ 0.73
N/A
MFR
0.91
4.01
4.37
4.79
5.25
5.75
Institutional West
0.91
4.01
4.37
4.79
5.25
5.75
Commercial West
1.04
6.13
6.69
7.33
8.03
8.80
Industrial West
1.04
6.91
7.54
8.26
9.05
9.91
Non -Res East
1.04
1.32
1.44
1.58
1.74
1.91
8.1.8 SINGLE FAMILY RESIDENTIAL WASTEWATER BILL IMPACTS
Table 8-13 shows a residential wastewater bill at various levels of usage under the proposed rates.
Table 8-13: Proposed Residential Wastewater Bills
5/8"
and 3/4"
9
29.80
39.07
9.27
5/8"
and 3/4"
10
30.53
39.07
8.54
5/8"
and 3/4"
16
34.91
39.07
4.16
5/8"
and 3/4"
30
50.97
39.07
(11.90)
1"
40
60.65
39.07
( 21.58)
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 45
139
9. Rate Comparison
The following tables present a comparison of a 10 Ccf bill in El Segundo in 2020 and 2021 to equivalent bills in
several comparable communities in 2020. The City's current rates are lower than many others and continue to
compare favorably in the future.
Table 9-1: Water Bill Comparison
$60.37 $62.42
$53.39 $55.97
Hermosa Inglewood Gs Water CA American
Beach
$123.01
$49.51A
$40.15
$67.77 $68.73
El Segundo
El Segundo
Current
Proposed 2021
Table 9-1: Water Bill Comparison
$60.37 $62.42
$53.39 $55.97
Hermosa Inglewood Gs Water CA American
Beach
$123.01
■ Fixed f Variable 0 surcharges
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
140
CI:
$73.06
$65.80
$67.77 $68.73
CA Water
Manhattan CA Water PV Lomita LA County
Hawthorne
Beach Waterworks
■ Fixed f Variable 0 surcharges
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
140
CI:
Table 9-2: Wastewater Bill Comparison
$39.07 $41.03
$30.53 $30.53
$32.53 $35.15 ■ .
$21.68
$70.48
Hermosa Beach EI Segundo Redondo Beach Culver City Manhattan EI Segundo Santa Monica Los Angeles
Current Beach Proposed 2021
i Fixed ■ Variable
Table 9-3: Combined Bill Comparison
$102.92
$83.92 $88.64
$70.68 $75.07 _
$193.49
EI Segundo Current Hermosa Beach Redondo Beach EI Segundo Proposed Manhattan Beach Los Angeles
2021
a Sewer K Water
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 47
141
CITY OF
E L S E GU N D O City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading: Committees, Commissions, and
Boards Presentations
TITLE:
Arts and Culture Advisory Committee Report
RECOMMENDATION:
1. Receive and file Arts and Culture Advisory Committee Report on the following:
FY 2019-2020 Accomplishments
A ACC Workflow Realignment
• FY 2020-2021 Work Plan
2. Direct ACC to implement FY 2020-2021 Work Plan
FISCAL IMPACT:
None
BACKGROUND:
The Arts and Culture Advisory Committee was established on August 2, 2016. On
November 19, 2019, the City Council adopted Ordinance 1594 establishing a Public Art
or In -Lieu Fee Requirement and a Cultural Development Fund. The requirement applies
to certain commercial and industrial developments with a project cost exceeding
$2,000,000.
The ordinance gives developers the option of commissioning public artwork on-site equal
to 1 % of the project cost or paying the 1 % to the City's Cultural Development Fund in -lieu
of commissioning artwork.
In 2020, the requirement applied to eleven projects, and currently equates to $914,128
for public art and programming in EI Segundo. To date, six projects contributed to the
Cultural Development Fund and five projects selected to fulfill the requirement with on-
site art.
On September 15, 2020, the City Council voted to allocate $300,000 from the Cultural
Development Fund for the Gateway Project and $100,000 for the Library Park Activation
Project. 10
142
Arts and Culture Advisory Committee Report
December 15, 2020
Page 2of2
As the budget allocations diverged from the ACC's recommendations this year, the ACC
is interested in reframing their work and realigning with the City Council's vision.
NEXT STEPS:
ACC Chair Neal Von Flue will present a proposed workflow for FY 2020-2021 that clarifies
the group's role and emphasizes the following phases of work for the committee during
the upcoming year: (1) Ideate on public art, events, cultural education, and placemaking
projects, (2) Research community needs, program requirements, and emerging trends in
civic arts and culture, (3) Curate the best ideas based on community, strategic, and
artistic criteria, and (4) Advise the City Council.
Forthcoming Cultural Development Fund recommendations will be linked to the City of EI
Segundo's Strategic Plan. The ACC's role is advisory — City staff is responsible for
implementation after City Council approval.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service and Engagement
Objective A: EI Segundo provides unparalleled service to internal and external customers
Activity 5: Clarify roles and expectations of the Council, committees, boards,
subcommittees, and task forces
PREPARED BY: Melissa McCollum, Community Services irector
REVIEWED BY: Barbara Voss, Deputy City Manager Vy
APPROVED BY: Scott Mitnick, City Manage (-C�t E` A
ATTACHED SUPPORTING DOCUMENTS:
1. ACC Presentation Slides for City Council Meeting on December 15, 2020
143
Arts and Culture Advisory Committee
The purpose of the ACC is to advise
the City Council to include art and
culture into the EI Segundo community
as well as planning and installation of
public art,
The ACC shall serve as a forum For
effective collaboration leading to the
growth of art and culture in the city of
EI Segundo,
Supporting economic development...
-Creative Economy Report
-Cultural Development Program
Beautification of public spaces...
-Library Mural
-Water tank mural on Grand
-Basketball court mural at Rec Park
Creating cultural programming...
-Library's "Room of Requirement"
-Book to action programs
ACC members have decades of experience spearheading creative
projects in EI Segundo that our residents enjoy.
■ ESMoA ■ Broadway in the Park
EI Segundo Art Walk ■ Centennial Fireworks Celebration
■ The EI Segundo Scene ■ Gateway Committee
■ Community murals ■ Local Business owners, teachers, employees
■ "EI Segundo Writes" ■ And more
Literary anthology
144
"The intent of the Ordinance is to promote
the public arts in the City of EI Segundo by
creating a collection of visual artwork and
providing artistic or cultural services, such as
performing arts, literary art, media art, arts
education, art events, and temporary
artworks, by recognized artists, and of the
highest possible quality, throughout the
City, for the public's benefit."
We reframe our scope to strictly be an
Advisory Committee
• Ideate on arts and culture programming
• Research community needs, program requirements, and emerging trends
in civic arts and culture
• Curate the best ideas based on community, strategic, and artistic criteria
■ Advise the Council formally and informally
Ideate
The ACC will brainstorm creative concepts
for potential public art, events, cultural
education, and placemaking projects. This
top-level list will include dozens of project
ideas and will be informally shared with
Council and City staff to determine which
concepts are worth investigating further.
Curate
During the curation phase, our committee will
narrow the list down to recommended projects
based on artistic merit, feasibility, and
community need.
We will draft a 1-2 page brief on each of the
curated ideas and formally present these ideas to
City staff and Council for consideration.
Research
The top concepts will mows on to the r•saarch
phase. Committee mambom will be ayslgned
(individually or in subcommittais) to thoroughly
examine these concepts to determine:
Scope
Cost
(teach
Desired Outcomes
Key stakeholders
• Timeline
How It meets the needs of the community
• Which specific City of EI Segundo Strategic Plan
Soak it addresses
Advise
We will formally advise the Council via our annual
presentation of arts and culture recommendations.
Our role will be advisory only—the Council and
City staff will have ownership of the projects and
the CDP fund, and will be responsible for
implementation of arts and culture programming.
We will also informally advise the Council and City
staff on an ad hoc basis, lending expertise as
requested to support City projects and initiatives.
145
Strategic Plan:
Goal 1. Enhance Customer Service, Engagement, Ideate Q 'v
and Communications; Embrace Diversity, Equity,
and Inclusion.
Goal 2 EI Segundo is a safe and prepared
community. Research
Goal 3- The EI Segundo workforce is inspired,
world-class, engaged, with increasing stability and
innovation,
Goal 4. Develop Quality Infrastructure and Curate
Technology EI Segundo's physical infrastructure
supports an appealing, sale, and effective
community. Advise
Goal 5. EI Segundo promotes community
engagement and economic vitality. EI Segundo
approaches its work in a financially strategic and
responsible way. Feedback,
,. •' , Comments
Potential KPI's
EVENTS
MARKETING
Tatal Attendance
Unique Vcss
Tfckess Sald
CTR
N VeM—/Artists/Pamapants
fL1nLee of pedormances/events
Con -- Rete
Ma A.Mp Lpaad
x egnity uld
hwke V.4n%ar sre.
Pyod:.g Ralsed
R4M /survey,ezuhs
M+r Je Wrmwe, Vaye
SVb/ubwelkWirntn en rec:el
Press Coverage
media
EDUCATION
MISC
yp,yerlp aarnd
Numberalprojensp•odiaed
Swelled
Number of pmjens NMed
--—'culation
Number of funding eppi�r etions
Gra uG'_(numberordollers)
%afapphcauensfunded/
approved
ARTWORKS
Number d<speciflc
Vsitars/Ve —hip
Numberartworks in ES
demagaph—served
Numberoi permiss iswed
p artworks mapped
Resident satizle<tian(su—p
NPS)
146