9A
1 Date: November 19, 2024
To: Honorable Mayor and Members of the City Council
From: Craig Bilezerian, Public Works Director
By: Charles Schaich, Policy and Resources Specialist | [email protected] Subject: Supplemental Material #1 for Item 9A
DISCUSSION
Staff received the following question from Councilmember Jon Kaji after the agenda was posted regarding the Public Hearing Item on the proposed series of annual increases in Municipal Water Rates for the five-year period beginning January 1, 2025, and ending December 31, 2029.
QUESTION:
In the Raftelis Report, dated October 29, 2024, 3.4.1.3. Debt Service references a loan with OPUS Bank.
What was the purpose of the loan? What was the principal amount of the loan, interest rate and term?
Thank you.
RESPONSE:
The response to Councilmember Kaji’s inquiry is as follows:
1. The purpose of the loan was to fund a portion of the construction cost for the North Torrance Wellfield Project;
2. The principal amount the loan was $ 5,749,427.50 at the time the City entered into the agreement with Opus in 2017 and;
3. The interest rate is 2.36% with a 10-year term ending in May 1, 2028.
Notice of Public Hearing
In addition, the Notice of Public Hearing (Attachment 8) was not readily available at the time of the agenda posting. A copy of the notice is included in this supplemental material for your review.
1 City Council
August 13, 2024
ATTACHMENTS
1. Attachment 8 –Notice of Public Hearing published in Daily Breeze on October 31, 2024, November 9, 2024 and November 16, 2024
2 Proposed Increase of Water Rates - Page 1 of 1
2615 Pacific Coast Highway #329
Hermosa Beach, California 90254
(310) 543-6635
[email protected]
City of Torrance
3031 Torrance Blvd
Torrance, California 90503
Account Number:
5007865
Ad Order Number:
0011700263
Customer's Reference/PO Number:
Publication:
Daily Breeze
Publication Dates:
10/31/2024, 11/09/2024 and 11/16/2024
Total Amount:
$1231.98
Payment Amount:
$0.00
Amount Due:
$1231.98
Notice ID:
BHKgjZnadPI9GWTXPoSb
Invoice Text: NOTICE OF PUBLIC HEARING CITY OF TORRANCE Proposed Increase in City of Torrance Water Rates and Service Fees Torrance City Council Meeting 6:30 p.m., Tuesday November 19, 2024 Torrance City Hall, Council Chamber 3031 Torrance Boulevard Torrance, CA 90503 NOTICE IS HEREBY GIVEN: The City of Torrance Public Works Department is proposing a series of annual increases to the Torrance Municipal Waler rates and service charges over the next five-year period from 2025 through 2029. The proposed rate adjustments apply only to areas served by Torrance Municipal Water. The rate adjustments are required to fund needed water system infrastructure refurbishments, replacements and improvements, develop new local water resources to replace higher cost and less reliable imported water supplies, meet operating and maintenance needs and provide for adequate reserves. There have been no adjustments in municipal water rates for the last two years. The rate proposal provides for an initial rate realignment to conform to cost of service criteria as required under Proposition 218. The proposed overall system rate increases are
6.5% in the calendar 2025 and 2026, and subsequent annual increases of 6.0% in 2027, 2028 and 2029. Objections to the proposed rate increase must be submitted to the City Clerk's Office prior to the completion of the Public Hearing at the City Council meeting held in the City Council Chamber on Tuesday, November 1 9 , 2024. For more Information regarding the process, contact the City Clerk's Office at (310) 618- 2870 during normal business hours. For all other inquiries, visit the Public Works Department's website page at www.TorranceCA.Gov/PublicWorks or call (310) 781- 6900.
ATTACHMENT 8
3 Proposed Increase of W ater Rates - Page 1 of 1
Daily Breeze
2615 Pacific Coast Highway #329
Hermosa Beach, California 90254
(310) 543-6635
0011700263
City of Torrance
3031 Torrance Blvd
Torrance, California 90503
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Los Angeles
I am a citizen of the United States and
a resident of the County aforesaid; I
am over the age of eighteen years, and
not party to or interested in the above-
entitled matter. I am the principal clerk
of the printer of Daily Breeze, a
newspaper of general circulation,
printed and published in the City of
Torrance*, County of Los Angeles, and
which newspaper has been adjudged a
newspaper of general circulation by the
Superior Court of County of Los
Angeles, State of California, under the
date of June 15, 1945, Decree No.
Pomo C-606. The notice, of which the
annexed is a printed copy (set in type
not smaller than nonpareil), has been
published in each regular and entire
issue of said newspaper and not in any
supplement thereof on the following
dates, to wit:
10/31/2024, 11/09/2024, 11/16/2024
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.
Dated at Hermosa Beach, California
On this 16th day of November, 2024.
______________________________
Signature
*Daily Breeze circulation includes the following
cities: Carson, Compton, Culver City, El
Segundo, Gardena, Harbor City, Hawthorne,
Hermosa Beach, Inglewood, Lawndale,
Lomita, Los Angeles, Long Beach, Manhattan
Beach, Palos Verdes Peninsula, Palos Verdes,
Rancho Palos Verdes, Rancho Palos Verdes
Estates, Redondo Beach, San Pedro, Santa
Monica, Torrance and Wilmington
4