| | | | | | | | Agenda Item - 3.c.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Patricia Song
| | Dept.: | General Manager
| Dept.: | Finance
| | Subject: | Adoption of a Resolution to collect sewer service fees on tax roll for properties located outside the city limits. (Action Item) | Date: | 6/28/2022 |
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| | | | | | | | OBJECTIVE
For the Garden Grove Sanitary District Board of Directors (Board) to conduct a public hearing on the report identifying charges to be collected on the tax roll for sewer services provided by the Garden Grove Sanitary District for properties located outside the city limits that do not receive City water services; adopt the attached Resolution approving the report detailing the sewer service fees to be collected on the tax roll from these properties; and direct staff to file the necessary documentation with the County for the collection of the fees. This action requires five (5) affirmative votes. |
| | | | | | | | BACKGROUND
In accordance with Health and Safety Code section 6520.5, on September 13, 2005, and February 14, 2012, the Board of Directors adopted Ordinance No. 7 and Ordinance No. 10, respectively to establish Sewer User Fees pursuant to a fee structure based on classification and individual customer water usage. The fee structure was designed to be fair to all residents and businesses. The Sewer User Fees as established are calculated to provide funds required by the District for sewer system operation, capital improvements, debt service payments, and system maintenance, to comply with State and Federal Waste Discharge Requirements. Most of the Garden Grove Sanitary District customers also receive water services from the City of Garden Grove, and the sewer service fee is charged on the customers’ water service account bills. For properties located outside the city limits, those customers do not receive water services nor water bill from the City of Garden Grove, therefore it is necessary to collect the sewer service charge by placing the service fee on the property owner’s property tax bill through the County Auditor/Controller's Office. |
| | | | | | | | DISCUSSION
In order to place sewer service charges on the property tax bill, the Board must conduct a public hearing to approve the charges assessed for each parcel. A notice announcing this hearing date has been translated into Korean, Spanish, and Vietnamese and published in local newspapers.
All of the parcels listed on the attached sewer service assessment report are outside the City's limit and do not receive water services from the City of Garden Grove. The report is on file with the office of the City Clerk for review, and will also be available at the June 28, 2022 Sanitary District Board meeting.
The attached Resolution authorizes the service charges be placed on the property tax bill of each parcel listed on the sewer service assessment report, and direct staff to forward the assessment to the County Auditor/Controller's Office to be placed on the tax roll. |
| | | | | | | | FINANCIAL IMPACT
It is estimated that a total of $268,500 in sewer service charges will be collected from the Garden Grove Sanitary District's customers located outside of the city limits. This revenue will be used to fund for the District’s sewer operations. |
| | | | | | | | RECOMMENDATION
It is recommended that the Garden Grove Sanitary District Board of Directors:
- Conduct a public hearing for the report detailing fees to be collected on the tax roll for sewer services outside the City limits;
- Adopt the attached Resolution approving the report and authorizing the collection on the tax roll of Sewer Service Fees for property served by the Garden Grove Sanitary District and located outside the city limits (by five (5) affirmative votes ); and
- Direct staff to file the necessary documentation with the County for the collection of the fees on the property tax bills.
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