Agenda packet — Big Bear Lake City Council, May 12, 2023

CITY COUNCIL SPECIAL MEETING NOTICE & AGENDA
May 12, 2023
Meeting Time: 9:00 a.m.

Meeting Location: Big Bear Lake Civic Center, 39707 Big Bear Boulevard, Big Bear Lake, CA 92315

COUNCILMEMBERS

MAYOR RANDALL PUTZ

MAYOR PRO TEM PERRI MELNICK

COUNCILMEMBER RICK HERRICK

COUNCILMEMBER BYNETTE MOTE

COUNCILMEMBER KENDI SEGOVIA

CITY STAFF

CITY MANAGER ERIK SUND

CITY ATTORNEY STEPHEN DEITSCH

CITY CLERK ERICA STEPHENSON

DEPUTY CITY CLERK REBECCA CANNON
__________________________________________________________________________________________

CITY COUNCIL SPECIAL MEETING

NOTICE & AGENDA
To:

Mayor Randall Putz
Mayor Pro Tem Perri Melnick
Councilmember Rick Herrick
Councilmember Bynette Mote
Councilmember Kendi Segovia
City Manager
City Attorney
Division Managers
Local Media
NOTICE
NOTICE IS HEREBY GIVEN, that the City Council will conduct a Special Meeting on Friday, May 12, 2023, at 9:00 a.m., at 39707 Big Bear Blvd, Big Bear Lake, CA 92315; said meeting is being called pursuant to Section 54956 of the Government Code of the State of California for the purpose of considering the following matter:

AGENDA

OPEN SESSION

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

SPECIAL MEETING AGENDA
May 12, 2023 – Page 2

PUBLIC COMMUNICATIONS
Public comment is permitted only on items included on the posted agenda. There is a three-minute maximum time limit when addressing Council during this time period. The time limit is subject to adjustment at the discretion of the Presiding Officer. Speakers are limited to their individual maximum time limit and other members of the public cannot cede their speaking time to another person.

DISCUSSION/ACTION ITEM

1. BIG BEAR AREA REGIONAL WASTEWATER AGENCY (BBARWA); CHARGES FOR FISCAL YEAR ENDING JUNE 30, 2024
On April 10, 2023, the City received a notice of rate adjustments from BBARWA for Fiscal Year ending June 30, 2024, In response to the notice, the City Council will receive an overview from BBARWA staff on this new rate schedule, take public comments, and seek input from other stakeholders (i.e. Department of Water & Power, Big Bear Municipal Water District; Community Services District). Staff will present options that the City can take to implement this new sewer rate schedule to the City Council. This workshop could result in a Proposition 218 noticing to the property owners of Big Bear Lake, in the event that the City Council gives direction to increase sewer rates to cover the BBARWA rate increase.

Environmental Determination: Under Section 15378 of the CEQA Guidelines, this is not a project, and, therefore, no environmental review is required.

2. ORDINANCE AUTHORIZING THE CITY TO ADOPT FUTURE NEW OR INCREASED

RATES FOR WASTEWATER AND SOLID WASTE SERVICE FEES BY RESOLUTION Revisions to the Health and Safety Code provide the City with more flexibility in adopting fees as the state statute now allows an agency to adopt fees and charges by resolution or ordinance. In response to these revisions, City Council will consider reading the title, waive further reading and introduce an ordinance authorizing the City to adopt future new or increased rates for wastewater and solid waste services by resolution. The proposed ordinance would expressly allow the City to adopt fees and charges for sewer and solid waste services by resolution without having to bring forth an ordinance to adopt those fees and charges.

Environmental Determination: The project is not subject to the California Environmental Quality Act (CEQA) under California Code of Regulations, title 14, section 15378(b)(5), which exempts measures involving the organization or administrative activities of a local government that will not involve direct changes in the environment as not being a project under CEQA.

ADJOURNMENT
I hereby certify under penalty of perjury, under the laws of the State of California, that the foregoing agenda was posted in accordance with the applicable legal requirements. Dated this 10th day of May, 2023. _______________________
Erica Stephenson, City Clerk

The City of Big Bear Lake wishes to make all of its public meetings accessible to the public. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (909) 866-5831. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

MEETING
DATE: May 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Erik Sund, City Manager
SUBJECT: Big Bear Area Regional Wastewater Agency (BBARWA); Charges for Fiscal Year Ending June 30, 2024

BACKGROUND
City Council conducted a public hearing that established a new sewer fee rate schedule for BBARWA. That Sewer fee was adopted and pursuant to City Council action on October 28, 2019 via Ordinance No. 2019-473, this new rate was placed on the FY 2020-21 tax roll. City received notice from BBARWA on April 10, 2023 of their charges for Fiscal Year Ending June 30, 2024 (Attachment I).

DISCUSSION
In response to the letter received by BBARWA on April 10, 2023, the City is conducting a workshop to receive an overview from BBARWA staff on this new rate schedule, take public comments, and seek input from other stakeholders (i.e. Department of Water & Power, Big Bear Municipal Water District; Community Services District). Staff will present options that the City can take to implement this new sewer rate schedule to the City Council. This workshop could result in a Proposition 218 noticing to the property owners of Big Bear Lake, in the event that the City Council gives direction to increase sewer rates to cover the BBARWA rate increase.

FISCAL IMPACT
There is no fiscal impact associated with this item, any future actions that may have fiscal impacts will be communicated at a later meeting.

ENVIRONMENTAL CONSIDERATIONS
Under Section 15378 of the CEQA Guidelines, this is not a project, and, therefore, no environmental review is required.

RECOMMENDATION
It is recommended that City Council provide direction to staff on the implementation of this BBARWA rate structure.

ATTACHMENTS

1. BBARWA Charges for Fiscal Year Ending June 30, 2024

2. Staff Report dated October 28, 2019 (Ordinance Adopting Sewer User Fees)

3. Ordinance No. 2019-473: Ordinance Adopting Sewer User Fees

4. Staff Report dated July 18, 2022 (Resolution Approving The Placement of Sewer and Refuse Fees on the Fiscal Year 2022-23 Tax Roll

5. Resolution No. 2022-86 Approving Thee Placement of City Sewer User Fees, Big Bear Area Regional Wastewater Agency User and Standby Fees, and City Refuse Fees on the Fiscal Year 2022-23 Tax Roll
ATTACHMENT 1

BIG BEAR AREA

REGIONAL WASTEWATER AGENCY
P.O. Box 517, 122 Palomino Drive, Big Bear City, CA 92314-0517 (909) 584-4018  FAX (909) 585-4340  e-mail: [email protected] April 10, 2023
Mr. Erik Sund, City Manager
City of Big Bear Lake
P.O. Box 10000
Big Bear Lake, California 92315
RE: Big Bear Area Regional Wastewater Agency (BBARWA);
Charges for Fiscal Year Ending June 30, 2024
Dear Member Agencies:

Please find attached 1) the annual Member Agency billing and 2) the resolutions and/or ordinances related to BBARWA’s FY 2024 sewer user fee, connection fee, standby fee and budget adopted March 22, 2023.

Member Agency Billing
Pursuant to the Payment and Collection Agreement dated August 23, 2011 (as amended), among BBARWA and its three Member Agencies, BBARWA is providing a statement of total annual charges for the fiscal year ending June 30, 2024 (please see attached, FY 2024 Member Agency Charges). Please note, amounts and due dates have been provided in the attached statement of annual charges. An invoice will be mailed to each Member Agency during December 2023 and April 2024, the months in which the Annual Charges and Standby Charges are due.

Rates and Fees
The Agency’s Established Rate per EDU increased 22.5% from the current year. The Charge per Member Agency is provided below. The Standby Charge and Connection Fee remain unchanged.

Annual Charge Charge per Equivalent Dwelling Unit (EDU) Established Rate $302.37
Charge per Member Agency: Implicit Charge per EDU Total Charges Big Bear City CSD $295.67 $3,660,647.70
City of Big Bear Lake $311.83 $3,655,829.60
CSA 53 B $280.28 $ 354,558.89
Charge per Parcel
Standby Charge
< 1 acre undeveloped parcel $20
> 1 acre undeveloped parcel $30
Charge per Equivalent Dwelling Unit (EDU)

Connection Fee $4,180.00
Should you require additional information, please contact me at 909-584-4522.

Sincerely,
Christine Bennett
Finance Manager
Cc: Kelly Ent, Director of Administrative Services
Laura Knotts, Administrative Analyst

BBARWA - FY 2023 Annual Charges

EXHIBIT I
Budget % % $ $
FY 2024 Fixed Variable Fixed Variable Total
Established Rate per EDU 302.37 $
EDUs Reported 25,369.70
Proposed Rate Revenues 7,671,036.19 $ 75.5% 24.5% 5,795,092.40 $ 1,875,943.79 $ 7,671,036.19 $ Fixed Rate per EDU 228.43 $
Variable Rate per 1,000 Gallons 2.38 $
CBBL CSD CSA 53B Total
Fixed Charges:

EDUs 11,723.7 12,381 1,265 25,369.70
Fixed Rate per EDU 228.43 $ 228.43 $ 228.43 $
Fixed Charges 2,677,994.81 $ 2,828,139.04 $ 288,958.56 $ 5,795,092.40 $ Variable Charges:

Three-year Avg. (1,000 gallons) 359,532 306,098 24,120 689,749 Rate per 1,000 gallons 2.38 $ 2.38 $ 2.38 $ 2.38 $
Variable Charges 855,458.90 $ 728,320.31 $ 57,390.46 $ 1,641,169.67 $ Total Charges Before Adjustments 3,533,453.71 $ 3,556,459.35 $ 346,349.02 $ 7,436,262.08 $ Adjustments:

Transition Adjustment (a) - $ - $ - $ - $
Annual Charge Adjustment (b) 122,375.89 $ 104,188.35 $ 8,209.87 $ 234,774.11 $ Total Billed Charges 3,655,829.60 $ 3,660,647.70 $ 354,558.89 $ 7,671,036.19 $ $ 977,834.80 832,508.66 $ 65,600.33 $
Implicit Rate per EDU 311.83 $ 295.67 $ 280.28 $
(a) Transition Adjustment Variable Charges: CBBL CSD CSA 53B Total Three-year Avg. (1,000 gallons) 359,532 306,098 24,120
Rate per 1,000 gallons 2.38 $ 2.38 $ 2.38 $
Variable Charges 855,458.90 $ 728,320.31 $ 57,390.46 $ 1,641,169.67 $ Transition Adjustment - $ - $ - $ 0
(b) Annual Charge Adjustment: The annual charge adjustment reflects charges in excess or below the total of 1) the required rate revenues and 2) estimated costs associated with wet weather flow during the prior 3-year period. The Annual Charge Adjustment is prorated among the member agencies based on 3-year avg. flow.

Proposed Rate Revenues FY 2024 7,671,036.19 $
Total Charges before Adjustments 7,436,262.08 $
Amount collected for prior period flow differential (234,774.11) $ Estimated costs associated with prior period high flows - $ Annual Charge Adjustment 234,774.11 $
FY 2024 Member Agency Charges
Reported Charge Fixed Variable Transition Annual Charge Amount Due Amount Due EDUs per EDU Charge Charge Adjustment (a) Adjustment (a) Total December 30, 2023 April 30, 2024 Annual Charges:

City of Big Bear Lake 11,723.70 311.83 $ 2,677,994.81 $ 855,458.90 $ - $ 122,375.89 $ $ 3,655,829.60 $ 1,827,914.80 1,827,914.80 $ Big Bear City CSD 12,381.00 295.67 $ 2,828,139.04 $ 728,320.31 $ - $ 104,188.35 $ $ 3,660,647.70 $ 1,830,323.85 1,830,323.85 $ CSA 53 B 1,265.00 $ 288,958.56 280.28 $ 57,390.46 $ - $ 8,209.87 $ $ 354,558.89 $ 177,279.44 177,279.44 $ Total 25,369.70 5,795,092.40 $ 1,641,169.67 $ - $ 234,774.11 $ $ 7,671,036.19 $ 3,835,518.09 3,835,518.09 $ Standby Charges:

City of Big Bear Lake $ 27,488.68 $ 13,744.34 13,744.34 $ Big Bear City CSD $ 42,293.27 $ 21,146.64 21,146.64 $
CSA 53 B $ 5,515.49 $ 2,757.74 2,757.74 $
Total Annual Charges $ 75,297.45 $ 37,648.72 37,648.72 $ Connection Fee:

Connection Fee per EDU Effective July 1, 2023 4,180.00 $ (a) Please see Exhibit I for further detail.

RESOLUTION NO. R. 03-2023

A RESOLUTION OF THE GOVERNING BOARD OF THE BIG

BEAR AREA REGIONAL WASTEWATER AGENCY

ESTABLISHING THE SEWER USER CHARGE SUBJECT TO

ANNUAL REVIEW AND TAKING CERTAIN OTHER ACTIONS

RELATING THERETO
WHEREAS, the Big Bear Area Regional Wastewater Agency ("BBARWA") is a joint powers authority that provides wholesale sewer service to customers within its service area, including the City of Big Bear Lake, the Big Bear City Community Services District ("Big Bear City CSD"), and Zone "B" of County Service Area 53 ("CSA 53 B") (each a "Collecting Agency" and, collectively, the "Collecting Agencies"); and
WHEREAS, the Governing Board ofBBARWA has been empowered to establish sewer rates and charges, including the Sewer User Charge ("User Charge") to be imposed on the Collecting Agencies during the applicable fiscal year; and WHEREAS, the costs of providing service have increased; and WHEREAS, BBAR WA retained the services of HDR Engineering, Inc. to develop recommendations and a comprehensive sewer rate study ("HDR 2023 Report") regarding the amount for the User Charge in order to address BBARWA's increased costs of providing service, and a copy of the HDR 2023 Report is on file at BBARWA's Administrative Office and available for public review; and
WHEREAS, pursuant to Health and Safety Code Section 54 71 and Government Code Section 61115(a), the Governing Board is empowered to prescribe and collect rates and charges for services and facilities furnished by BBARWA in connection with its sewerage system; and WHEREAS, the Governing Board is required by BBARWA Operating Agreement No. 1 to present to each Collecting Agency a statement showing the amount of the User Charge to be collected for each Equivalent Dwelling Unit ("EDU") during the ensuing fiscal year, as such term is defined in the HDR 2023 Report, and it is therefore necessary that the Governing Board establish the amount of the User Charge to be so collected for the applicable fiscal year; and WHEREAS, the proposed rates for the User Charge consist of a single charge, per EDU (referred to in this Resolution as the "Base Rate"), as set forth in the HDR 2023 Report, to which the Collecting Agencies have agreed to apply adjustments to account for varying levels of demand on the sewer system by each Collecting Agency, as set forth in that certain Payment and Collection Agreement, dated as of August 23, 2011, by and among BBARWA and the Collecting Agencies, as has been amended from time to time (the "Agreement"); and WHEREAS, as a result, the User Charge for certain Collecting Agencies will be higher than the Base Rate in the applicable fiscal year, and for others the User Charge will be lower than the Base Rate pursuant to the Agreement; and
l WHEREAS, the Governing Board previously adopted its User Charge pursuant to Ordinance No. 0. 01-2018 on April 25, 2018 (the "Ordinance"), in accordance with a prior comprehensive sewer rate study completed by HDR Engineering, Inc.; and WHEREAS, the Ordinance authorized BBARWA to make future adjustments to the User Charge by resolution, and pursuant to this Resolution, BBARWA seeks to increase the User Charge to reflect increased costs, as reflected by the HDR 2023 Report; and WHEREAS, pursuant to California Constitution article XIII C, section l(e)(2), a fee or charge is a tax and subject to voter approval if it is imposed on a fee payer for a service and that service is provided to others who are not charged for the same service, or the fee exceeds the cost of providing the service; and
WHEREAS, wholesale sewer service fees, such as the User Charges, are fees for a service subject to California Constitution article XIII C, section l(e)(2); and WHEREAS, pursuant to California Constitution article XIII C, section l(e), an agency imposing fees for wholesale sewer services has the burden of demonstrating that the amount of the fees imposed are no more than necessary to cover the reasonable costs of providing the wholesale sewer services, and that the manner in which those costs are allocated to a payer bear a fair or reasonable relationship to the payer's burdens on, or benefits received from, the governmental activities provided; and
WHEREAS, based on the HDR 2023 Report, the Governing Board has determined that the amount of the proposed User Charge, is no more than necessary to cover the reasonable costs of providing the wholesale sewer services, that the manner in which those costs are allocated to the Collecting Agencies bears a fair or reasonable relationship to each of the Collecting Agencies burden on, or benefit received from, BBARWA's wholesale sewer service, and that the User Charge is not a property-related fee or fee imposed as an incident of property ownership; and WHEREAS, in accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, BBARWA staff has determined that the increases in User Charges are exempt from CEQA pursuant to Section 15378 and Section 15273 of the CEQA Guidelines and Public Resources Code section 21080(b )(8) because: (i) the increased charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services; and (ii) the charges constitute the creation of a funding mechanism/other governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and
WHEREAS, the adoption of this Resolution is exempt from CEQA for the same reason; NOW, THEREFORE, be it resolved by the Governing Board of the Big Bear Area Regional Wastewater Agency as follows:

I. Recitals. The recitals set forth above are true and correct and by this reference incorporated herein.
l 2. New User Charge Adopted. The Governing Board hereby adopts the User Charge for Fiscal Year 2024 in the maximum amount set forth below, and projects the User Charge for future years, commencing Fiscal Year 2025, in the amounts set forth below and subject to Section 4 below.

Collecting Agency
$/EDU
FY2024
Effective
July 1, 2023
FY2025
Effective
July 1, 2024
FY2026
Effective
July 1, 2025
FY2027
Effective
July 1, 2026
FY2028
Effective
July 1, 2027
Base Rate $302.37 $356.79 $421.02 $496.80 $586.22
City of Big Bear Lake $311.83 $365.77 $431.35 $509.03 $601.20 Big Bear City CSD $295.67 $351.27 $414.53 $489.12 $576.81 CSA 53 B $280.28 $327.55 $388.79 $458.65 $539.49
The User Charge imposed on each Collecting Agency is determined in accordance with the provisions of the Agreement in order to fairly allocate the costs of BBAR WA based on demand placed on the system by each Collecting Agency. FY 2025 - FY 2028 charges are based on five year average flows and will adjust based on actuals each year in accordance with Section 4 below.

3. Amendment to Code of Regulations and Ordinances. Chapter 5.16.020 of the Big Bear Area Regional Wastewater Agency Code of Regulations and Ordinances is hereby amended in its entirety to read as follows:
"Chapter 5.16

5.16.020 User Charge.

USER CHARGES
BBARWA is authorized to adopt a User Charge for provision of wholesale sewer service. The rates for the User Charge may be adopted in accordance with applicable law, from time to time, by ordinance or resolution. BBARWA shall maintain a schedule of rates for its User Charge at its offices, and/or post such schedule ofrates on the BBARWA website, and such schedule ofrates for the User Charge shall be updated upon adoption and implementation of new or increased User Charges.

The User Charge imposed on each Collecting Agency is determined in accordance with the provisions of the Payment and Collection Agreement, dated as of August 23, 2011, by and among BBARWA and the Collecting Agencies, as has been amended from time to time in order to fairly allocate the costs ofBBARWA based on demand placed on the system by each Collecting Agency.

The rates will be effective July 1 of each fiscal year with the member agencies receiving notice of the rate change by May 1 of the preceding fiscal year.

The rate schedule represents the maximum rates that may be charged by the Agency, and in any given year, may be reduced by Governing Board action."

4. Amendments to User Charges. Commencing for Fiscal Year 2025, on or before adoption of BBARWA's annual budget, or at any other appropriate time, the Governing Board shall review the amount of the User Charge that will be effective for the upcoming fiscal year and shall affirm or amend the rates set forth herein based on the budget for such year. Such action may include, without limitation, establishing an increased or reduced amount for the User Charge than the amount set forth in Section 2 above for the applicable fiscal year. In the event the Governing Board does not take any such action, the amount of the User Charge set forth in Section 2 above shall remain in effect for the applicable fiscal year.

5. Relationship Between Costs and User Charges. By adoption of this Resolution, the Governing Board finds that the amount of the User Charge is no more than necessary to cover the costs of providing wholesale sewer service, and that the manner in which those costs are allocated bears a fair or reasonable relationship to burdens on, or benefits received from, BBARWA's wholesale sewer service activities. This relationship is more fully documented in the HDR 2023 Report. The new User Charge shall not be used for any other purpose than that for which the new User Charge is imposed. The new User Charge is not imposed upon real property or upon persons as an incident of property ownership. The User Charge is imposed only as a condition of service upon the request of the Collecting Agency. As documented in the HDR 2023 Report, the User Charge is based upon reasonable estimates of the demand placed upon BBARWA in its role as a provider of regional wholesale sewer services.

6. Validity. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, including any portion of the User Charge adopted herein, such invalidity shall not affect other provisions or applications of this Resolution, including any portion of the fee not held invalid, and to this end the provisions of this Resolution are declared to be severable.

7. Prior Rates. All ordinances, resolutions or administrative actions by the Governing Board, or parts thereof that are inconsistent with any provision of this Resolution, are hereby superseded only to the extent of such inconsistency.

8. Effective Date. This Resolution shall be effective immediately. The increased rates for the User Charges set forth herein shall become effective as authorized herein.

ADOPTED, this 22nd day of March, 2023.

John reen, Chair of the Governing Board
of e Big Bear Area Regional Wastewater Agency
ATTEST:

I, Bridgette Burton, Secretary to the Big Bear Area Regional Wastewater Agency, DO HEREBY CERTIFY, that the foregoing Resolution of the Governing Board of the Big Bear Area Regional Wastewater Agency, being Resolution No. R. 03-2023, Establishing the Sewer User Charge Subject to Annual Review and Taking Certain Other Actions Related Thereto, was duly adopted at a regular meeting of the Governing Board held on the 22nd day of March 2023, by the following vote:

A YES: 1-k r n e, IL, (n ,t Lt r-, rY1J -l-t', \.Al tt I ~ ~ , 6 ., t...e n NOES: <(>
ABSENT: (j
ABSTAIN: I/)
Bridgette Bu , Secretary to the Governing Board
of the Big Bear Area Regional Wastewater Agency
l RESOLUTION NO. R. 02-2023

A RESOLUTION OF THE GOVERNING BOARD OF THE BIG

BEAR AREA REGIONAL WASTEWATER AGENCY
CLARIFYING THE FISCAL YEAR 2024 SEWER STANDBY OR

IMMEDIATE AVAILABILITY CHARGES
WHEREAS, the Governing Board desires to clarify the sewer standby or immediate availability charges contained in Ordinance No. 0. 03-2018; and WHEREAS, the sewer standby or immediate availability charges are not being increased or extended beyond levels previously approved in accordance with article XIII D of the California Constitution. This Resolution only clarifies that the standby or immediate availability charges previously approved shall continue to be imposed in the same manner, and at the same amounts, as in previous years.

NOW, THEREFORE, the Governing Board of the Big Bear Area Regional Wastewater Agency hereby resolves as follows:

1. Recitals. The recitals set forth above are true and correct and by this reference incorporated herein.

2. Amount of Standby Charges. The Governing Board does hereby clarify and confirm that the rates for the sewer standby charges or immediate availability charges (hereinafter "standby charge") are not increasing beyond levels previously adopted in accordance with article XIII D of the California Constitution. The Governing Board hereby clarifies and confirms that such standby charges shall continue to be imposed in the same manner, and at the same amounts, as in previous years, as follows: Owners of parcels of real property which are an acre or less in size shall pay a standby charge in the amount of $20.00, and owners of parcels of real property which are more than an acre shall pay a standby charge in the amount of$30.00.

3. Amendment to Code of Regulations and Ordinances. Chapter 5.20 of the Big Bear Area Regional Wastewater Agency Code of Regulations and Ordinances is hereby amended to read as follows:
"Chapter 5.20

SEWER STANDBY OR IMMEDIATE AVAILABILITY CHARGES
Sections:

5.20.010 Properties subject to charges.

5.20.020 Amount of charges.

5.20.030 Collection

5.20.040 Credit against connection fee.

5.20.010 Properties subject to charges.
1 l
This Governing Board is authorized to prescribe sewer standby or immediate availability charges (hereinafter "standby charge") for each applicable fiscal year ending June 30 of such year, by resolution or ordinance, in the amounts specified in such resolution or ordinance, to be paid by the owners of a11 vacant parcels of real property which are located within 200 feet of a sewer main of the public sewer system of either the Big Bear City Community Services District or the City of Big Bear Lake or the public sewer system within Improvement Zone "B" of San Bernardino County Service Area 53 and by the owners of all improved parcels of real property which are so located but not connected to the public system. Such standby charges shall be collected from all owners of vacant parcels ofreal property which are so located and which are vacant as of July 1, 2023 and from all owners of improved parcels of real property which are so located and which are not connected to the public sewer system as of said date; provided, however, that owners of parcels of real property which are used primarily for public parking areas shall not be required to pay such a standby charge. The term "parcel of real property" means a parcel to which the County Assessor of the County of San Bernardino has assigned a separate assessor's parcel number, whether such parcel consists of a single lot or parcel or combination of lots or parcels.

5.20.020 Amount of charges.

The standby charge shall be due in the amounts set forth on the most recently adopted schedule of standby charges, which schedule shall be on file in the administrative offices of BBARWA and posted on the BBARWA website.

5.20.030 Collection.

Such standby charges shall be collected by the Big Bear City Community Services District, the City of Big Bear Lake, and the County of San Bernardino from all owners of parcels of real property within their respective service area, the service area of said County being the territory within Improvement Zone "B" of San Bernardino County Service Area 53, whose parcels are subject to such charges, and shall be remitted by said District, City and County to the Agency on or before December 31, 2023 (fifty percent of such charges) and April 30, 2024 (fifty percent of such charges). Said District, City and County are hereby designated as and shall be the agents of the Agency for purposes of collecting such standby charges and shall have and exercise all powers which could be exercised by the Agency with respect to the collection of such charges.

5.20.040 Credit against connection fee.

Any owner of a parcel of real property who pays a standby charge and who later during said fiscal year makes application to connect to the public sewer system a home or business establishment which is located upon the parcel of real property for which such standby charge was paid, shall receive a credit against the connection fee, if any is due, in the amount of such standby charge."
J

3. Validity. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, including any portion of the standby charges confirmed and continued herein, such invalidity shall not affect other provisions or applications of this Resolution, including any portion of the standby charges not held invalid, and to this end the provisions of this Resolution are declared to be severable.
2 4. Prior Rates. All ordinances, resolutions or administrative actions by the Governing Board, or parts thereof that are inconsistent with any provision of this Resolution, are hereby superseded only to the extent of such inconsistency.

5. Effective Date. This Resolution shall become effective immediately. The rates for the standby charges set forth herein shall become effective as authorized herein.

ADOPTED, this 22nd day of March, 2023.

ATTEST:

I, Bridgette Burton, Secretary to the Big Bear Area Regional Wastewater Agency, DO HEREBY CERTIFY, that the foregoing Resolution of the Governing Board of the Big Bear Area Regional Wastewater Agency, being Resolution No. R. 02-2023, Clarifying the Fiscal Year 2024 Sewer Standby or Immediate Availability Charges, was duly adopted at a regular meeting of the Governing Board held on the 22nd day of March 2023, by the following vote:

A YES: ~ rn u I m '\\.t v- I mo4(, \N ll, \ ,h, &, Y/1..e Y\ NOES: Q
ABSENT:·¢
ABSTAIN:- (]
Bri gette Bu n, Secretary to the Governing Board
of the Big Bear Area Regional Wastewater Agency
3 RESOLUTION NO. R. 04-2023

A RESOLUTION OF THE GOVERNING BOARD OF THE BIG

BEAR AREA REGIONAL WASTEWATER AGENCY ADOPTING

THE OPERATING AND CAPITAL BUDGET OF THE BIG BEAR

AREA REGIONAL WASTEWATER AGENCY FOR FISCAL
YEAR 2024, APPROVING BUDGETED PROJECTS, AND

FINDING APPROVAL OF THE BUDGET AND BUDGETED

PROJECTS EXEMPT FROM REVIEW UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the Big Bear Area Regional Wastewater Agency (''BBARWA" or "Agency"), established in 1974, is a public agency formed to transport, treat and dispose of wastewater for the entire Big Bear Valley area residents and businesses; and WHEREAS, the purpose ofBBARWA, pursuant to its Joint Powers Agreement, is to create an agency that will acquire, construct, install, maintain, and operate a regional system for the treatment and disposal of sewage and wastewater for the entire Big Bear Valley area; and WHEREAS, to fulfill this purpose, it is necessary that BBARWA's Governing Board adopt a budget for the Agency for the 2024 Fiscal Year; and WHEREAS, staff evaluated the estimated budgetary needs for the Agency for the 2024 Fiscal Year and prepared a budget proposal, which includes funding for seven projects to maintain or replace existing equipment, purchase small equipment, and complete pre-construction activities associated with the Replenish Big Bear Project ("Budget"). The seven potential projects include: 1) replacement of the AV equipment in the boardroom, 2) replacement of effluent disposal controls and cabinet, 3) replacement of the LPS outbuilding storage, 4) rehabilitation of the oxidation ditch wall, 5) repair and replacement of 5 pumps, 6) replacing the Headworks wash press, and 7) performing engineering, environmental and other pre-construction activities related to Replenish Big Bear ("RBB") (collectively, "Proposed Approvals").

WHEREAS, staff evaluated the Proposed Approvals in light of the standards for environmental review outlined in the California Environmental Quality Act (Pub. Resources Code, §§ 21000 et seq.) and the California Code of Regulations (Cal. Code Regs., tit. 14, §§ 15000 et seq.) ("State CEQA Guidelines"); and
WHEREAS, as to each of the Proposed Approvals, staff evaluated the proposals and determined that each proposal, as well as the proposals in the aggregate, would not constitute a project within the meaning of State CEQA Guidelines section 15378; and WHEREAS, even assuming each of the Proposed Approvals constitute a project within the meaning of CEQA, staff have evaluated each proposal and determined. that each, individually and in the aggregate, would be exempt from CEQA review pursuant to one or more 01552.00000\35023165.2
of the following sections of the State CEQA Guidelines: 15061(b)(3), 15301, 15302, 15303, 15262, and 15273; and
WHEREAS, on March 22, 2023 at a regularly scheduled meeting, the Governing Board considered staffs proposed budget and staff report, and accepted any oral and written testimony from interested parties; and
WHEREAS, having reviewed and considered the information contained in the Proposed Approvals, together with the staff report, all comments made at the meeting, and all other information before the Governing Board, the Governing Board has determined that the Proposed Approvals are not subject to environmental review under CEQA; and WHEREAS, the proposed budget is attached hereto as Exhibit "A"; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE GOVERNING BOARD OF THE BIG BEAR

AREA REGIONAL WASTEWATER AGENCY DOES HEREBY RESOLVE AS
FOLLOWS:

SECTION 1. Compliance with the California Environmental Quality Act and Findings on Environmental Impacts. The Governing Board hereby finds and determines that the approval by the Governing Board of the Annual Budget for the 2024 Fiscal Year ("FY 2024 Budget" or "Budget") is not a project pursuant to CEQA. Specifically, the Governing Board finds that approval of the FY 2024 Budget is not a project under State CEQA Guidelines section 15378 because there is no potential that approval of the Budget will result in either a direct physical change or reasonably foreseeable indirect change in the environment. In the alternative, and assuming the FY 2024 Budget is a project within the meaning of CEQA, the Governing Board finds that the Budget is nonetheless exempt from CEQA review pursuant to State CEQA Guidelines section 1506l(b)(3) because it can be seen with certainty that approval of the Budget has no potential for direct physical impacts to the environment.

Additionally, and even if the Budget and related Proposed Approvals are a CEQA "project," they are still categorically exempt from further environmental review pursuant to State CEQA Guidelines,§§ 15301, 15302, and 15303 because the Budget and the Proposed Approvals involve:
• the operation, repair, maintenance, or minor alteration of existing public structures, facilities, or mechanical equipment that will result in negligible or no expansion of use beyond that existing today, such that the Proposed Approvals are categorically exempt from CEQA pursuant to State CEQA Guidelines §15301; • the replacement or reconstruction of existing structures and facilities, which will be located on the same site have substantially the same purpose and capacity as the structure or facility replaced, such that the Proposed Approvals are categorically exempt from CEQA pursuant to State CEQA Guidelines§ 15302; 01552.00000\35023165.2
• the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure, such that the Proposed Approvals are categorically exempt from CEQA pursuant to State CEQA Guidelines § 15303.
• As to the Replenish Big Bear Project ("RBB"), the Budget and related Project Approvals do not constitute an approval of RBB subject to CEQA. Rather, the Budget provides funding for engineering, environmental and other pre-construction activities related to RBB, and this pre-project activity is exempt from CEQA under State CEQA Guidelines section 15262. The Budget and related Project Approvals do not commit BBAR WA to approving RBB. BBAR WA is currently preparing an Environmental Impact Report (EIR) for RBB project pursuant to CEQA, and BBAR WA will circulate the EIR for public review and consider the EIR along with any public comment before considering approval ofRBB in the future.

Further, the Governing Board finds that none of the "exceptions" to the use of the categorical exemptions exist pursuant to State CEQA Guidelines § 15300.2. Specifically, the Governing Board finds that none of the Proposed Approvals will:
• be located within or adjacent to a particularly sensitive environment, because all of the Proposed Approvals will occur within BBARWA's existing facilities or in areas already fully developed with existing facilities;
• result in a potentially significant cumulative impact, because all of the Proposed Approvals are intended to maintain the existing system and existing services rather than to introduce new facilities which may result in cumulative impacts; • result in a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances, because the Proposed Approvals are exactly the type of repair and replacement actions commonly required for the ongoing maintenance of public infrastructure and thus do not present any "unusual circumstances";
• result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway; or
• be located on a hazardous waste site included on any list compiled pursuant to § 65962.5 of the Government Code.

Lastly, the Budget is exempt from under State CEQA Guidelines§ 15273 since the Budget includes rate adjustments to assist in funding the RBB to maintain service within existing service areas.
0 I 552.00000\35023165.2
SECTION 2. Approval and Adoption of the Annual Budget for Fiscal Year 2024.

The Governing Board hereby approves and adopts the FY 2024 Budget, a copy of which has been provided to each Governing Board Member. By approving the Budget, the Governing Board hereby also approves each of the seven projects recommended by staff, including: 1) replacement of the AV equipment in the boardroom, 2) replacement of effluent disposal controls and cabinet, 3) replacement of the LPS outbuilding storage, 4) rehabilitation of the oxidation ditch wall, 5) repair and replacement of 5 pumps, 6) replacing the Headworks wash press, and 7) performing engineering, environmental and other pre-construction activities related to the Replenish Big Bear Project.

SECTION 3. Execution of Resolution. The Chair of the Governing Board shall sign this Resolution and the Secretary to the Governing Board shall certify this Resolution was duly and properly adopted by the Governing Board.

SECTION 4. Notice of Exemption. The Governing Board hereby directs staff to file a Notice of Exemption with the San Bernardino County Clerk within five (5) working days of the adoption of this resolution.

SECTION 5. Location of Documents. The documents and materials that constitute the record of proceedings on which these findings have been based are located at BBARWA's office located at 121 Palomino Drive, Big Bear City, California 92314. The custodian for these records is the General Manager of BBARW A.

SECTION 6. Certified Copies. Certified copies of this Resolution and copies of said budget shall be delivered to the County of San Bernardino on behalf of County Service Area 53B, the Big Bear City Community Services District, and the City of Big Bear Lake.

PASSED, ADOPTED, AND APPROVED this 2 nd day of March, 2023.

John Gr n Chair of the Governing Board
of the ig Bear Area Regional Wastewater Agency
01552.00000\35023 l 65.2
ATTEST:

I, Bridgette Burton, Secretary to the Governing Board of the Big Bear Area Regional Wastewater Agency, DO HEREBY CERTIFY that the foregoing Resolution of the Governing Board of the Big Bear Area Regional Wastewater Agency, Adopting the Operating and Capital Budget of the Big Bear Area Regional Wastewater Agency for Fiscal Year 2024, Approving Budgeted Projects and Finding Approval of the Budget and Budgeted Projects Exempt from Review Under the California Environmental Quality Act, being Resolution No. R. 04-2023, was adopted at a regular meeting on March 22, 2023 of said Agency by the following vote:

AYES: ~rr, a-k, (Vl,tltr; mo-lt-~ \;VAi~. bvd.et1
NOES: ({)
ABSTAIN: ¢
ABSENT:f
Bri gette Bur n, Secretary to the Governing Board
of the Big Bear Area Regional Wastewater Agency
01552.00000\35023165.2

EXHIBIT A CONTINUED
FY 2024 Budget

CAPITAL EXPENDITURES
For the Period Ending June 30, 2024
Administration Building
Boardroom AV Upgrade
Total Administration Building

EFFLUENT DISPOSAL EQUIPMENT
Outfall Lines
Cactus Flats Repair
Controls
Service Upgrade
Cabinet
Total effluent disposal equipment

INTERCEPTOR SYSTEM
Structures
Lake Pump Station Storage Building
Total interceptor system

TREATMENT PLANT
Processing Equipment
Oxidation Ditch Wall Rehabilitation (Engineering)
Auxiliary Pump Building
Auxiliary Pump 1
Main Pump Building
RAS Pump Rebuild 1
RAS Pump Rebuild 4
Effluent Pump 5
Effluent Pump 6
Treatment Equipment
Wash Press Headworks
Total treatment plant
Subtotal
REPLENISH BIG BEAR (engineering, environmental, and pre-construction activities) TOTAL
Budget
FY2024
42,000
42,000
131,841
21,095
36 916
189,852
51 ,350
51,350
108,862
44,742
5,655
5,655
28,998
28,998
138,156
361,066
644,268
4,312,433
S 4,956,701.29

EXHIBIT A CONTINUED
FY 2024 Budget

STATEMENT OF CASH FLOWS
For the Period Ending June 30, 2024
Cash from operating activities:

Operating Income {Loss)
Depreciation expense
Change in Working Capital
Net cash provided by op activities
Cash from noncapital financing:

Payment of pension related debUliability
Cash from capital and related financing:
lnteragency expense
Capital Expenditures BBARWA
Capital Expenditures Replenish Big Bear
Proceeds from Asset Disposition
Connection Fee {Capital Contrib)
Proceeds from Debt Issuance, Grants Replenish Big Bear
Debt Service:

Interest Expense
Interest Expense Replenish Big Bear
Principal Debt Amortization
Total Debt Service
Lease Revenue
Net cash used for cap and related financing
Cash from investing:
{Increase) Decrease in Other Assets
Other Proceeds
Interest Income
Proceeds from the Sale of Investment
Net cash from investing

NET CHANGE IN CASH
Beginning Cash Balance
Ending Cash Balance
Change in Cash Balance
Budget
FY2024
$1,609,112
901,808.69
(1,708)
2,509,213
0 0
{644,268)
(4,312,433)
0 188,100
41,060,398
(83,213)
{144,500)
(425,903)
(653,617)
55,048
35,693,228
0 0
126,395
Q.
126,395
$38,328,836
$7,832,439
46,161 ,275
$38,328,836

EXHIBIT A
FY 2024 Budget

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Period Ending June 30, 2024
Budget
FY2024
Operating Revenues:

Annual Charges $7,671,077
Standby Charges 75,297
Rental Income 0
Waste Disposal 21,690
Other Revenue Q
Total Operating Revenues 7,768,065
Operating Expenses:

Salaries and Benefits 2,924,650
Power 499,429
Sludge Removal 336,212
Chemicals 95,080
Materials and Supplies 180,189
Repairs and Replacements 247,688
Equipment Rental 912
Utilities Expense (other than power) 37,000
Communications Expense 72,644
Contractual Services - Other 109,588
Contractual Services - Professional 189,027
Perm its and fees 259,973
Property Tax Expense 4,124
Insurance 240,678
Other Operating Expense 59,826
Depreciation Expense 901,809
Total Operating Expenses 6,158,829
Operating Income 1,609,235
Nonoperating Income
Gain (loss) on asset disposition 2,555
Finance Charge Income 0
Interest Income 126,395
Grant Revenue 4,113,578
Other Nonoperating Income 55,048
Nonoperating income 4,297,576
Nonoperating Expense
Other Expense 5,029
Interest Expense 227,713
Nonoperating expense 232,742
Income before Contributions 5,674,069
Connection Fees 188,100
Change in Net Position $5,862,169
ATTACHMENT 2

AGENDA REPORT
MEETING DATE: October 28, 2019
TO: Honorable Mayor and Members of the City Council
FROM: Jeff Mathieu, City Manager
PREPARED BY: Kelly Ent, Director of Government Services SUBJECT: ADOPTION OF TWO ORDINANCES – ORDINANCES

RENEWING INFLATIONARY ADJUSTMENTS AND PASS

THROUGH CHARGES APPLIED TO SEWER AND REFUSE
FEES
On September 23, the City Council conducted a public hearing to receive public input on a proposed renewal of annual inflationary adjustments and pass through charges for sewer and refuse fees. The title of the ordinances were read, further reading was waived, and the ordinances were determined to be exempt from the California Environmental Quality Act (CEQA).

BACKGROUND
Annual inflationary adjustments and the pass through of charges imposed by Big Bear Area Regional Wastewater Agency (BBARWA) and the City’s contracted waste hauler are provided for pursuant to Ordinances 2015-437 and 2015-438. The City Council first adopted inflationary adjustments and pass through of charges back in 2010 in an effort to keep pace with the cost of providing these essential services and to mitigate the impact of fee adjustments on rate payers. To continue this practice, requires renewal by the City Council every five years.

The last renewal of inflationary adjustments and pass through of charges was adopted on June 22, 2015 and will expire at the close of Fiscal Year 2019-20. As discussed during the Special Workshop Meetings held on May 13 and June 10 and during the presentation of the Public Hearing held on September 23, the ability to apply inflationary adjustments and pass through charges for sewer treatment and disposal as well as waste hauling has been instrumental in generating a revenue stream to support service delivery without an undue burden on general taxpayers and/or rate payers. As such, approval of the attached ordinances is recommended.

FISCAL IMPACT
There is no fiscal impact. Adoption of the attached ordinances will not take effect until July 1, 2020 and will be factored into the proposed budget for Fiscal Year 2020-21.

AGENDA REPORT: ADOPTION OF TWO ORDINANCES – ORDINANCES RENEWING

INFLATIONARY ADJUSTMENTS AND PASS THROUGH CHARGES APPLIED

TO SEWER AND REFUSE FEES
October 28, 2019

Page 2 ends

RECOMMENDATIONS
It is recommended that Council take the following actions:

1. Approve and adopt the ordinances; and

2. Authorize the City Clerk’s Office to file a Notice of Exemption under CEQA with the San Bernardino County Clerk within five working days of the adoption of these ordinances.

Attachments:

A. Ordinance No. 2019-XXX – Sewer Fees
B. Ordinance No. 2019-XXX - Refuse Fees
C. CEQA Notice of Exemption – Sewer Fees
D. CEQA Notice of Exemption – Refuse Fees
ATTACHMENT 3
ORDINANCE NO. 2019-473

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF BIG BEAR LAKE, COUNTY OF SAN BERNARDINO,

STATE OF CALIFORNIA, ADOPTING SEWER USER
FEES
WHEREAS, the City of Big Bear Lake (the “City”) must generate revenues in an amount sufficient to cover the City’s ongoing costs of providing sewer collection, treatment, and disposal services (“sewer services”); and
WHEREAS, the City has determined that the schedule of rates for the City’s sewer user fees (“Sewer Fees”) and future rate increases for inflationary adjustments, are necessary to generate revenues sufficient to cover the City’s ongoing costs of providing sewer services; and WHEREAS, the City contracts with the Big Bear Area Regional Wastewater Agency (“BBARWA”) for the treatment and disposal of the City’s wastewater and the City anticipates that BBARWA may increase the rates it charges the City for sewer services; and WHEREAS, in the event that BBARWA does increase its rates between Fiscal Year 2020-21 and Fiscal Year 2024-25 the City will pass through to property owners within the City any future rate increases that are imposed on it by BBARWA; and
WHEREAS, the revenues derived from the proposed Sewer Fees will not exceed the funds required to provide the sewer services and shall be used exclusively for the provision of sewer services; and WHEREAS, the amount of the proposed Sewer Fees will not exceed the proportional cost of the services attributable to each parcel upon which they are proposed for imposition; and WHEREAS, the proposed Sewer Fees will not be imposed on a parcel unless the sewer services are actually used by, or immediately available to, the owner of the parcel; and WHEREAS, the City, as the lead agency under the California Environmental Quality Act (CEQA), in consultation with the City’s Legal Counsel, prepared a Preliminary Exemption Assessment for the adoption of this Ordinance in order to evaluate its potential impacts. The City determined that this Ordinance is exempt from CEQA review under Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273 because the Sewer Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the sewer system and will not result in the expansion of the sewer system; and
WHEREAS, California Constitution article XIII D, section 6 (“Article XIII D”) requires that prior to imposing any increase to the Sewer Fees, the City shall provide written notice (the “Notice”) by mail of the proposed increases to the rates for the Sewer Fees to the record owner of each parcel upon which the rate increases to the Sewer Fees are proposed for imposition and any tenant directly liable for payment of such Sewer Fees, the amount of the rates for the Sewer Fees proposed to be imposed

Page 2 ends

Ordinance No. 2019-473
on each parcel, the basis upon which the rates for the Sewer Fees were calculated, the reason for the rate increases to the Sewer Fees, and the date time and location of a public hearing (the “Hearing”) on the proposed rate increases to the Sewer Fees; and
WHEREAS, pursuant to Article XIII D such Notice is required to be provided to the affected property owners and any tenant directly liable for the payment of the Sewer Fees not less than fortyfive days prior to the Hearing on the proposed rates; and WHEREAS, the City did provide such Notice to the affected property owners and tenants of the proposed rate increases to the Sewer Fees in compliance with Article XIII D; and WHEREAS, the Hearing was held on this day, September 23, 2019; and WHEREAS, at the Hearing the City Council of the City heard and considered all oral testimony, written materials, and written protests concerning the establishment and imposition of the proposed rate increases to the Sewer Fees, and at the close of the Hearing the City did not receive written protests against the establishment and imposition of the proposed rate increases to the Sewer Fees from a majority of the affected property owners and tenants directly liable for the payment of the Sewer Fees; and
WHEREAS, the City Council of the City now desires to establish and impose the proposed rate increases to the Sewer Fees; and
WHEREAS, this Ordinance shall supersede all other previous resolutions and ordinances that may conflict with, or be contrary to, this Ordinance respecting the rates for Sewer Fees described more particularly herein;
NOW THEREFORE, BE IT ORDAINED, by the City Council of the City of Big Bear Lake as follows:

1. The City Council hereby finds and determines that the above Recitals are true and correct and are incorporated herein.

2. As the decision making body for the City, the City Council has reviewed and considered the information contained in the Preliminary Exemption Assessment and administrative record. The City Council finds that the Preliminary Exemption Assessment contains a complete and accurate reporting of the environmental impacts associated with the adoption of this Ordinance and reflects the independent judgment of the City Council.

3. The City Council hereby establishes the Sewer User Fees as $253.49 per equivalent dwelling unit (EDU) for Fiscal Year 2020-21 and thereafter until otherwise modified by the City Council subject to imposition of an inflationary adjustment.

4. The City Council hereby authorizes the imposition of annual inflationary adjustments to the rates for the Sewer Fees, beginning July 1, 2020, and each July 1 thereafter through and including July 1, 2024, by an amount equal to the greater of the annual percentage increase, if any, in the Consumer

Page 3 ends

Ordinance No. 2019-473
Price Index for All Urban Consumers (“CPI-U”), published by the U.S. Department of Labor for the Los Angeles-Long Beach-Anaheim statistical area (the “CPI-U Adjustments”) or 2%. Provided, however, in no event shall the rates for the Sewer Fees increase as a result of the CPI-U Adjustments by more than five percent (5%) annually, and provided further that in no event shall such rates increase by more than the cost of providing sewer services. The CPI-U Adjustments shall be equal to the percentage amount derived by comparing the rate for March of the previous calendar year, to the rate for the most recent March. Prior to implementing any future rate increases as a result of an CPI-U Adjustment as authorized herein, the City Manager, or his/her designee, shall provide written notice of any such rate increases to sewer customers not less than 30 days prior to the effective date of the rate increases.

5. In the event BBARWA increases the rates that it imposes on the City for wastewater treatment, collection, and disposal services, the City Council hereby authorizes such rate increases to be passed through to property owners and sewer customers by increasing the rates for the Sewer Fees (“Pass Through Increases”). Rate increases to the Sewer Fees for such Pass Through Increases are authorized for a five-year period beginning on July 1, 2020, and each July 1 thereafter through and including July 1, 2024. Provided, however, any increase to the rates for the Sewer Fees authorized herein for such Pass Through Increases may not to exceed five percent (5%) per year, and provided further such rate increases shall not exceed the cost of providing sewer services. Prior to implementing any future rate increases as a result of any such Pass Through Increases as authorized herein, the City Manager, or his/her designee, shall provide written notice of any such rate increases to property owners not less than 30 days prior to the effective date of the rate increases.

6. The City Council hereby finds that the administration, operation, maintenance, and improvements of the sewer system, which are to be funded by the Sewer Fees, are necessary to maintain sewer services within the City’s existing service area. The City Council further finds that the administration, operation, maintenance, and improvements of the sewer system, to be funded by the Sewer Fees set forth herein, will not expand the sewer system. The City Council further finds that such Sewer Fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the sewer system. Based on these findings, the City Council hereby determines that this Ordinance is exempt from the requirements of CEQA pursuant to California Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273(a).

7. The documents and materials that constitute the record of proceedings on which these findings have been based are located at 39707 Big Bear Boulevard, City of Big Bear Lake, California 92315.

The custodian for these records is the City Clerk of the City.

8. The City Council hereby authorizes and directs the City Manager, or his/her designee, to implement and take all actions necessary to effectuate the rates for the Sewer Fees set forth herein and to file a Notice of Exemption with the County Clerk for the County of San Bernardino within five (5) working days of the date of the adoption of this Ordinance.

9. If any section, subsection, subdivision, sentence, clause, or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each

Page 4 ends

Ordinance No. 2019-473
section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

10. In accordance with City Charter section 408, after its passage the City Clerk shall cause this Ordinance to be posted in at least three public places in the City.

11. This Ordinance shall become effective thirty (30) days from and after its final passage.

12. A further reading of this ordinance is hereby waived. This Ordinance was read and introduced at a regular meeting of the City Council of the City of Big Bear Lake, California, on September 23, 2019 and thereafter adopted at a regular meeting of the City Council held on the 28th day of October, 2019, by the following vote:

AYES: Caretto, Jackowski, Jahn, Herrick, Putz
NOES: None
ABSTAIN: None
EXCUSED: None

Randall Putz, Mayor
ATTEST:

Erica Stephenson, City Clerk
APPROVED AS TO FORM:

Stephen P. Deitsch, City Attorney

Page 5 ends

Ordinance No. 2019-473

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BIG BEAR LAKE, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, ADOPTING SEWER USER FEES was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of said Council on the 28th day of October, 2019, and that the same was so passed and adopted by the following vote:

AYES: Caretto, Jackowski, Jahn, Herrick, Putz
NOES: None
ABSTAIN: None
EXCUSED: None
I do hereby further certify that pursuant to the provisions of Section 36933 of the Government Code of the State of California that the foregoing Ordinance No. 2019-473 was duly and regularly published according to law and the order of the City Council and circulated within said City.

Erica Stephenson, City Clerk
ATTACHMENT 4

MEETING
DATE: July 18, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Jeff Mathieu., Interim City Manager
FROM: Kelly Ent, Director of Administrative Services
SUBJECT: Resolution Approving the Placement of Sewer and Refuse Fees on the FY 2022-23 Tax Roll

BACKGROUND
City Council will conduct a public hearing to place previously established rates for collection and transmission of affluent through the City’s sewer system to the Big Bear Area Regional Wastewater Authority (BBARWA) for treatment as well as City Refuse Fees for administration and operations associated with the provision of solid waste services, hazardous materials disposal, engineering services related to regulatory and environmental programs and maintenance of the City owned Clean Bear Site across from City Hall on the tax roll for collection. This action does not include the establishment and collection of fees associated with the solid waste franchise agreement with Big Bear Disposal.

DISCUSSION
Property owners are provided with sewer and refuse services and are assessed a fee for these services. The amount of the charge is dependent upon whether the property is improved/developed or unimproved/vacant. The land use also indicates the charges that apply: Residential and commercial properties pay for sewer services whereas only residential properties are assessed refuse fees. The collection of assessments via the property tax roll requires the City Council to conduct a public hearing to receive comment and the adoption of a resolution to submit established rates to the San Bernardino County Auditor/Controller for placement on the property tax roll.

Sewer Fees:

City sewer user fees were last established on October 28, 2019 through the adoption of Ordinance No. 2019-473. Pursuant to this ordinance, the City’s established rate of $259.07 is subject to an inflationary adjustment based on the change in the consumer price index (CPI). The CPI for FY 2022-23 is 8.5%; however, Ordinance No. 2019-473 includes a cap on the inflationary adjustment of 5%. Therefore, the City’s sewer fee for FY 2022-23 will be $272.02.

The Board of Directors for BBARWA establishes sewer rates for treatment of affluent and vacant parcel standby services. For FY 2022-23, the BBARWA adopted rate will increase 6.5%; however, the City’s Ordinance No. 2019-473 enables the pass through of BBARWA fees and limits the annual pass through adjustment to a maximum of 5% creating a shortfall of $3.50 per Equivalent Dwelling Unit (EDU), or approximately $40,000 for FY 2022-23. At the May 16, 2022, budget workshop it was determined that the Sanitation Fund has sufficient fund balance available to absorb the shortfall for this year. If the imbalance continues beyond FY 2022-23, the City Council can consider establishing a pass through of the full charge in subsequent years. The BBARWA established rates for vacant parcels will remain unchanged in FY 2022-23.

Refuse Fees:

Similar to the sewer fees, on October 28, 2019, the City Council adopted Ordinance No. 2019-474 which established City refuse fees and the pass through of charges associated with the solid waste franchise agreement with Big Bear Disposal. With the expiration of the solid waste franchise agreement and the award of a new contract under consideration this evening, the establishment of pass through fees associated with the solid waste franchise agreement is not being considered as part of this action. Pursuant to Ordinance No. 2019-474, the City’s established refuse fee of $122.60 is subject to a CPI adjustment up to a maximum of 5%. Therefore, the FY 2022-23 City’s refuse fee assessment will be $128.73.

FISCAL IMPACT
There is no fiscal impact. Established rates have been incorporated into the FY 2022-23 budget.

Adopting the attached resolution merely authorizes the rates to be placed on the tax roll for collection purposes.

ENVIRONMENTAL CONSIDERATIONS
None requiring review under California Environmental Quality Act.

RECOMMENDATION
It is recommended that the City Council:

1. Conduct a public hearing to receive comments regarding the placement of sewer and refuse fees on the FY 2022-23 property tax roll, and

2. Approve the attached Resolution authorizing the placement of sewer and refuse fees on the FY 2022-23 property tax roll.

ATTACHMENTS

1. Resolution No. 2022-XX

2. Written Report of Assessed Fees by Land Use
ATTACHMENT 5

RESOLUTION NO. 2022-86

RESOLUTION APPROVING THE PLACEMENT OF CITY SEWER

USER FEES, BIG BEAR AREA REGIONAL WASTEWATER AGENCY

USER AND STANDBY FEES, AND CITY REFUSE FEES
ON THE FISCAL YEAR 2022-23 TAX ROLL
WHEREAS, pursuant to Sections 5471 of the California Health and Safety Code, the City Council of the City of Big Bear Lake (“City”) adopted Ordinance No. 2019-473 establishing reasonable rates and fees for collection and transmission of affluent through the City’s sewer system (“City Sewer User Fees”) to the Big Bear Area Regional Wastewater Authority (“BBARWA”) for treatment, and
WHEREAS, pursuant to the Joint Powers Agreement with the BBARWA, the City shall, acting as agent, impose and collect a sewer standby fee (“BBARWA Sewer Standby Fees”) against all unimproved parcels of real property which are located within 200 feet of a sewer main; and WHEREAS, the Board of Directors establishes fees for treatment of affluent (“BBARWA Sewer User Fees”) and the unimproved parcel fees (“BBARWA Sewer Standby Fees”); and WHEREAS, Ordinance No. 2019-473 provides for the imposition of annual inflationary adjustments to established rates equal to the greater of 2% or the Consumer Price Index for All Urban Consumers (“CPI-U”), published by the U. S. Department of Labor for the Los AngelesLong Beach-Anaheim statistical area; however, such increase shall not exceed 5% annually; and WHEREAS, the CPI-U for FY 2022-23 is 8.5%; therefore, the imposed inflationary adjustment pursuant to Ordinance No. 2019-473 is 5% for Fiscal Year 2022-23; and WHEREAS, pursuant to Sections 5471 of the California Health and Safety Code, the City Council of the City of Big Bear Lake (“City”) adopted Ordinance No. 2019- 474 establishing City Refuse Fees for administration and operations associated with the provision of solid waste services, hazardous materials disposal, and engineering services related to regulatory and environmental programs as well as the maintenance of the City owned Clean Bear Site across from City Hall (“City Refuse Fees”) and pass through charges for collection and disposal of solid waste by the City’s franchise waste hauler (“Big Bear Disposal Refuse Fees”); and WHEREAS, City Ordinance No. 2019-474 includes the imposition of annual inflationary adjustments to established rates equal to the greater of 2% or the CPI-U subject to a cap of 5%; and
WHEREAS, the CPI-U is 8.5%; therefore, the imposed inflationary adjustment pursuant to Ordinance No. 2019-474 is 5% for FY 2022-23; and
WHEREAS, on May 2, 2022, the City Council initiated Proposition 218 proceedings and noticed a Public Hearing to consider the solid waste service rates on July 18, 2022 which will require separate action of the City Council; and

Page 2 ends

Resolution No. 2022-86
WHEREAS, pursuant to Section 5473 of the California Health and Safety Code, the City Council has elected to have the City Sewer User Fees, BBARWA Sewer User and Standby Fees and City Refuse Fees for the Fiscal Year 2022-23 forwarded to the San Bernardino County Auditor/Controller to be collected on the tax roll in the same manner, by the same persons and at the same time, together with and not separate from, the general taxes, and has caused a written report of Assessed Fees by Land Use (“Written Report”), a copy of which is attached hereto and by this reference incorporated herein, to be prepared and filed with the City Clerk containing the number of Equivalent Dwelling Units (“EDU”) and real property parcels by land use subject to the said fees and the amount to be imposed thereon for Fiscal Year 2022-23; and WHEREAS, the City Clerk caused a notice of the filing of this Written Report and of the time and place of the hearing thereon to be published all in accordance with California Health and Safety Code section 5473.1; and
WHEREAS, on July 18, 2022, at 6:00 p.m., the City Council conducted the hearing on the Written Report and heard and considered all objections or protests thereto, and has determined and hereby finds that protests have not been made by the owners of a majority of the separate parcels or property described in the Written Report; and
WHEREAS, the City Sewer User Fees, BBARWA Sewer User and Standby Fees, and City Refuse Fees shall constitute a lien against the parcel or parcels of land described in the Written Report in accordance with California Health and Safety Code sections 5473 et seq.; and WHEREAS, the City Council has adopted Ordinance No. 86-131 relating to establishment of a fee and service charge and cost comparison system; and
WHEREAS, the City Manager has analyzed the costs of services for the subject service centers.

NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of Big Bear Lake as follows:

1. The City Council hereby finds and determines that the above Recitals are true and correct.

2. The Written Report filed with the City Clerk contains the number of Equivalent Dwelling Units (“EDU”) and real property parcels by land use subject to City Sewer User Fees, BBARWA Sewer User and Standby Fees and City Refuse Fees and the amount of said fees for Fiscal Year 2022-23 to be imposed thereon, and the Written Report is therefore approved and adopted.

3. The City Sewer User Fees, BBARWA Sewer User and Standby Fees and City Refuse Fees for the Fiscal Year 2022-23 shall be forwarded to the San Bernardino County Auditor/Controller and shall be collected on the tax roll in the same manner, by the same person, at the same time, together with and not separate from the general taxes.

4. The Fiscal Year 2022-23 fees to be collected on improved/developed parcels are as follows:

City Sewer User Fees $272.02 per EDU
BBARWA Sewer User Fees $252.25 per EDU
City Refuse Fees $128.73 per EDU

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Resolution No. 2022-86

5. The Fiscal Year 2022-23 fees to be collected on unimproved/vacant parcels are as follows:

BBARWA Sewer Standby Fees $20.00 per parcel under one (1) acre BBARWA Sewer Standby Fees $30.00 per parcel one (1) acre or larger

6. On or before August 10, 2022, the City Clerk is hereby directed to file with the San Bernardino County Auditor/Controller a copy of the Written Report, with a statement endorsed thereon over her signature that this has been fully adopted by the City Council, together with a certified copy of this Resolution, and shall request that the City Sewer User Fees, BBARWA Sewer User and Standby Fees, and City Refuse Fees be collected on the tax bills for the taxable parcels in the City identified in the Written Report along with the ordinary ad valorem taxes to be levied on and collected from owners of said parcels.

PASSED, APPROVED AND ADOPTED this 18th day of July, 2022.

Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-86 was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 18th day of July, 2022 and that the same was so passed and adopted by the following vote:

AYES: Putz, Mote, Melnick, Herrick
NOES: Lee
ABSTAIN: None
ABSENT: None

Erica Stephenson, City Clerk

MEETING
DATE: May 12, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Sean Sullivan, Director of Public Services
SUBJECT: ORDINANCE AUTHORIZING THE CITY TO ADOPT FUTURE NEW

OR INCREASED RATES FOR WASTEWATER AND SOLID WASTE

SERVICE FEES BY RESOLUTION

BACKGROUND
The City provides sewer and solid waste services to residents within the City, and charges fees to customers for the provision of such services. Prior to January 1, 2017, California Health and Safety Code sections 5471 and 5473 required that the City adopt new or increased fees for sewer and solid waste services by ordinance. Effective January 1, 2017, Health and Safety Code sections 5471 and 5473 now authorize the City to adopt such new or increased fees by resolution as well. In light of the amendments to the Health and Safety Code, the attached Ordinance allows for future new or increased sewer and solid waste fees to be adopted by resolution or ordinance, to facilitate an easier process for the City.

DISCUSSION
Revisions to the Health and Safety Code provide the City with more flexibility in adopting fees as the state statute now allows an agency to adopt fees and charges by resolution or ordinance. Fees adopted by resolution are not subject to the standard ordinance procedural requirements that include two readings, and a 30-day waiting period prior to the ordinance becoming effective. The proposed ordinance would expressly allow the City to adopt fees and charges for sewer and solid waste services by resolution without having to bring forth an ordinance to adopt those fees and charges.

FISCAL IMPACT
There is no fiscal impact associated with the adoption of this ordinance. In the future, the City may have reduced administrative expenses associated with adopting resolutions instead of ordinances for the adoption of new or increased sewer and solid waste service fees and charges.

ENVIRONMENTAL CONSIDERATIONS
The project is not subject to the California Environmental Quality Act (CEQA) under California Code of Regulations, title 14, section 15378(b)(5), which exempts measures involving the organization or administrative activities of a local government that will not involve direct changes in the environment as not being a project under CEQA.

RECOMMENDATION
It is recommended that the City Council read the title, waive further reading and introduce an Ordinance Authorizing the City to Adopt Future New Or Increased Rates for Wastewater and Solid Waste Service Fees by Resolution.

ATTACHMENTS

1. Ordinance No. 2023-xxx
ATTACHMENT 1

ORDINANCE NO. 2023-xxx

ORDINANCE AUTHORIZING THE CITY TO ADOPT

FUTURE NEW OR INCREASED RATES FOR

WASTEWATER AND SOLID WASTE SERVICE FEES BY

RESOLUTION
WHEREAS, the City of Big Bear Lake (“City”) provides wastewater and solid waste services to properties within the City’s jurisdiction, and charges service fees and charges for providing such services to properties pursuant to the authority set forth under California Health and Safety Code section 5471 (“Section 5471”); and
WHEREAS, in order to use the authority of Section 5471 to adopt service fees and charges, public agencies previously were required to adopt such fees and charges by ordinance; and WHEREAS, effective January 1, 2017, Section 5471 and the statutes following it were amended to allow for adoption of new or increased service fees by resolution as well as by ordinance; and WHEREAS, the City previously adopted fees and charges for wastewater and solid waste service by ordinance in order to comply with Section 5471 prior to its amendment, and now wishes to authorize future new or increased wastewater and solid waste service fees and charges to be adopted by resolution.

NOW, THEREFORE, the City Council of the City of Big Bear Lake, California, hereby ordains as follows:

Section 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. Authorization for Adoption by Resolution. The City hereby authorizes any future new or increased fees or charges for wastewater and solid waste service to be adopted by resolution. Any new or increased fee or charge adopted by resolution pursuant to the authority granted by this Ordinance shall have the same force and effect as if such new or increased fee or charge had been adopted by ordinance, and to the extent authorized in such resolution, shall repeal or replace any conflicting fee or charge previously adopted by the City Council, whether such conflicting fee or charge had been adopted by resolution or ordinance.

Section 3. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, the remaining sections and/or provisions of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional.

Section 4. Certification, Publication, and Effective Date. The City Clerk shall certify to the adoption of this ordinance and shall either: (a) have this ordinance published in a newspaper of general circulation within 15 days after its adoption or (b) have a summary of this ordinance published twice in a newspaper of general circulation, once five days before its adoption and again within 15 days after its adoption. This Ordinance shall become effective 30 days following its adoption.

PASSED, APPROVED AND ADOPTED this ____ day of ___________, 2023. __________________________
Randall Putz, Mayor
ATTEST:
__________________________
Erica Stephenson, City Clerk

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

ORDINANCE AUTHORIZING THE CITY TO ADOPT

FUTURE NEW OR INCREASED RATES FOR

WASTEWATER AND SOLID WASTE SERVICE FEES BY

RESOLUTION
was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the Clerk of Said City, all at a regular meeting of the said Council on the ___ day of _____, 2023, and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that pursuant to the provisions of Section 36933 of the Government Code of the State of California that the foregoing Ordinance No. 2023-xxx was duly and regularly published according to law and the order of the City Council and circulated within the said City. __________________________
Erica Stephenson, City Clerk

Big Bear Lake City CouncilMay 12, 2023

Big Bear Lake City Council
May 12, 2023