Agenda Item 10A — Torrance City Council, September 23, 2025

10A
Date: September 23, 2025
To: Honorable Mayor and Members of the City Council
From: Ian Dailey, Finance Director| [email protected] Subject: Finance – Adopt ORDINANCE Amending Torrance Municipal Code (TMC) to Establish Administrative Remedies Procedure for Challenges to Property-Related Fees, Charges, and Assessments. Expenditure: None.

RECOMMENDATION
Recommendation of the Finance Director that City Council:

1. Adopt an ORDINANCE amending the Torrance Municipal Code to establish an administrative remedies procedure for challenges to city-imposed fees, charges, and assessments on real property; and

2. Approve an Ordinance Summary for publication.

FUNDING
None required.

DISCUSSION
Assembly Bill (AB) 2257, signed into law in September 2024, authorizes local agencies to adopt an administrative remedies procedure for property owners to file written objections to proposed property-related water, sewer or trash fees, charges, or special assessments under Proposition 218. If a local agency voluntarily adopts this process, a ratepayer must submit a timely written objection—specifying the legal or factual basis for their challenge—prior to the agency’s final action, in order to later bring a judicial challenge.

Currently, the Torrance Municipal Code does not specify a comprehensive administrative procedure for such challenges, which can lead to inconsistent practices and potential legal vulnerabilities.

The proposed ordinance implements the procedures authorized by AB 2257 by establishing a clear administrative remedies procedure, ensuring that any person seeking to contest a fee, charge, or assessment must submit a written objection before the close of the public hearing comment period, allowing the City Council to consider it and to make a record supporting its action on the objection. The ordinance further specifies that any subsequent legal challenge is limited to the issues raised in the written objection, thereby promoting transparency and fairness.

Additionally, the ordinance outlines requirements for public notice, access to supporting documentation, and the City Council’s obligation to respond to objections, thereby promoting early 1 City Council
September 23, 2025

Page 2 ends

6 6
0 resolution of disputes before legal action is taken. These largely duplicate the existing requirements of Proposition 218, California Constitution, article XIII D, sections 4 and 6.

Adoption of this ordinance will bring the City’s procedures into compliance with state law, enhance public trust in the City’s assessment process, and provide a fair and transparent mechanism for resolving disputes related to property-related fees and assessments.

ATTACHMENTS

1. Ordinance

2. Ordinance (Strikethrough Version)

3. Ordinance Summary for Publication
2 3
8 1
7 ORDINANCE NO. _______
AN ORDINANCE OF THE CITY OF TORRANCE AMENDING ARTICLE 1, CHAPTER 1 OF DIVISION 2, ENTITLED “FINANCE AND TAXATION” AND

ADOPTING AN ADMINISTRATIVE REMEDIES PROCEDURE FOR

CHALLENGES TO FEES, CHARGES, AND ASSESSMENTS
______________________________________________________________________ ________

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TORRANCE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1.

This Ordinance is authorized by the City’s authority under California Constitution, article XI, sections 5 (charter cities), 7 (police power), and 9 (utility power) as well as Government Code section 53759.1.

SECTION 2.

Article 1 of Chapter 1 of Division 2 of the Torrance Municipal Code is hereby renumbered and amended to read in its entirety as follows:
“ARTICLE 1 - PRESENTING, AUDITING AND PAYMENT

21.1.010 DEMAND REQUIREMENTS.
a) Except as otherwise provided in this Article, all claims or demands against the City shall be made in writing and shall set forth, in reasonable detail, the basis on which such claim or demand is presented.
b) The payment of demands covering payrolls shall be based on departmental time sheets that have been signed by the department head, or other persons authorized to sign on his behalf, certifying as to the accuracy of the time worked by each employee. c) The provisions of this Article shall not apply to claims against the City which must be presented and processed in accordance with the provisions of Part 3, Division 3.6 (Sections 900-935.6), of the State Government Code.

21.1.020 EXHAUSTION OF ADMINISTRATIVE REMEDIES FOR CHALLENGES TO FEES, CHARGES, AND ASSESSMENTS ON REAL PROPERTY.
a) Scope. The duty to exhaust administrative remedies imposed by this section extends to:
3 ATTACHMENT 1
3 8
1 7
(1) any fee or charge subject to articles XIII C or XIII D of the California Constitution,
(2) any assessment on real property levied by the City, and (3) the methodology used to develop and levy such a fee, charge, or assessment.
b) “Hearing” as used in this section means the hearing referenced in paragraph 4 of subsection d of this section.
c) Duty to Exhaust Issues. No person may bring a judicial action or proceeding alleging noncompliance with the California Constitution or other applicable law for any new, increased, or extended fee, charge, or assessment levied by the City, unless that person submitted to the City Clerk a timely, written objection to that fee, charge, or assessment specifying the grounds for alleging noncompliance. The issues raised in any such action or proceeding shall be limited to those raised in such an objection unless a court finds the issue could not have been raised in such an objection by those exercising reasonable diligence.
d) Procedures. The City shall:
(1) Make available to the public any proposed fee, charge, or assessment to which this section is to apply no less than 45 days before the deadline for a ratepayer or assessed property owner to submit an objection pursuant to paragraph 4 of this subsection d.
(2) Post on its internet website a written basis for the fee, charge, or assessment, such as a cost of service analysis or an engineer’s report, and include a link to the internet website in the written notice of the Hearing, including, but not limited to, a notice pursuant to subdivision (c) of Section 4 or paragraph (1) of subdivision (a) of Section 6 of Article XIII D of the California Constitution.
(3) Mail the written basis described in paragraph 2 of this subsection d to a ratepayer or property owner on request.
(4) Provide at least 45 days for a ratepayer or assessed property owner to review the proposed fee or assessment and to timely submit to the City Clerk a written objection to that fee, charge, or assessment that specifies the grounds for alleging noncompliance. Any objection shall be submitted before the end of the public comment portion of a Hearing on the rate, charge or assessment.
4 3
8 1
7 (5) Include in a written notice of the Hearing, a statement in bold-faced type of 12 points or larger that:
(A) All written objections must be submitted to the City Clerk by the end of public comment period at the Hearing and that a failure to timely object in writing bars any right to challenge that fee, charge, or assessment in court and that any such action will be limited to issues identified in such objections.
(B) All substantive and procedural requirements for submitting an objection to the proposed fee, charge, or assessment such as those specified for a property-related fee under California Constitution, article XIII D, section 6(a) or for an assessment on real property under California Constitution, article XIII D, section 4(e).
e) Council Consideration City Responses. Before or during the Hearing, the City Council shall consider and the City shall respond in writing to, any timely written objections. The City Council may adjourn the Hearing to another date if necessary to respond to comments received after the agenda is posted for the meeting at which the Hearing occurs. The City’s responses shall explain the substantive basis for retaining or altering the proposed fee, charge, or assessment in response to written objections, including any reasons to reject requested amendments. f) City Council Determinations. The City Council, in exercising its legislative discretion, shall determine whether:
(1) The written objections and the City’s response warrant clarifications to the proposed fee, charge, or assessment.
(2) To reduce the proposed fee, charge or assessment.
(3) To further review the proposed fee, charge, or assessment before determining whether clarification or reduction is needed. (4) To proceed with the Hearing, to continue it, or to abandon the proposal.

21.1.030 AUDITING PRIOR TO PAYMENT.
a) The Finance Director, after receipt of any claim or demand and before payment, shall audit the same giving particular attention to:
5 3
8 1
7 1) A comparison of the items reflected in such claim or demand as compared with the corresponding items set forth in the requisition, purchase order or contract;
2) Verification of the receipt of the materials, supplies or services covered by the claim or demand, and that the amounts reflected are due and payable. b) Prior to payment of payrolls the time sheets shall be audited by the Finance Director with particular attention given to the mathematical computations and extensions, and compliance with the provisions of the Code regulating employees’ salaries and working conditions.

21.1.040 PREPARATION AND LISTING OF WARRANTS.

Upon auditing of claims and demands as required by the preceding Section, the Finance Director shall prepare a warrant covering the claims or demands which he finds to be in order after his examination thereof, and shall cause such warrants to be numbered and listed on warrant registers prior to presenting the same to the City Treasurer for payment.

21.1.050 CERTIFICATION BY FINANCE DIRECTOR.

There shall be included in, or attached to, each warrant register the affidavit of the Finance Director, certifying as to the accuracy of the demands and the availability of funds for payment thereof.

21.1.060 DUTY OF TREASURER TO PAY WARRANTS.

Upon the presentation of a warrant, properly executed and endorsed, the City Treasurer shall pay the same out of the monies in the City Treasury properly applicable to that purpose.

21.1.70 DELEGATION OF DUTIES.

The Finance Director may designate one or more assistants to perform any of the duties delegated to the Director pursuant to this Article.”
SECTION 3.

CEQA FINDINGS. The City Council finds that adoption of this Ordinance is exempt from CEQA because: (i) it is not a project within the meaning of Public Resources Code, section 21065 because it has no potential to alter the physical environment; (ii) and pursuant to CEQA Guidelines section 15061(b)(3), the so-called “common sense” exemption, for this same reason.

SECTION 4.
6 3
8 1
7 SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or its application to any person or circumstance is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or its application to other persons and circumstances. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof despite the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional and, to that end, the provisions hereof are hereby declared to be severable.

SECTION 5
This ordinance shall take effect 30 days after the date of its adoption. Within 15 days following adoption, this ordinance or a summary of this ordinance if authorized by the City Council, will be published at least once in the Daily Breeze, a newspaper of general circulation, published and circulated in the City of Torrance.

INTRODUCED and APPROVED this ____day of ______, 2025.

ADOPTED and PASSED this _____ day of ______, 2025.

APPROVED AS TO FORM:
______________________________
Mayor George K. Chen
PATRICK Q. SULLIVAN, City Attorney
By:________________________________
Tatia Y. Strader, Assistant City Attorney
ATTEST:
______________________________
Rebecca Poirier, MMC, City Clerk
7 3
8 1
7 TORRANCE CITY COUNCIL ORDINANCE NO. XXXX

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF TORRANCE )
I, Rebecca Poirier, City Clerk of the City of Torrance, California, do hereby certify that the foregoing Ordinance was duly introduced and approved by the City Council of the City of Torrance at a regular meeting held on the _____ day of _____ 2025 and adopted and passed by said Council at a regular meeting held on the ________ of __________2025 by the following roll call vote:

AYES:COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
Rebecca Poirier, MMC
Date: City Clerk of the City of Torrance
8 ORDINANCE NO. _______
AN ORDINANCE OF THE CITY OF TORRANCE AMENDING ARTICLE 1, CHAPTER 1 OF DIVISION 2, ENTITLED “FINANCE AND TAXATION” AND

ADOPTING AN ADMINISTRATIVE REMEDIES PROCEDURE FOR

CHALLENGES TO FEES, CHARGES, AND ASSESSMENTS
______________________________________________________________________ ________

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TORRANCE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1.

SECTION 2.

Article 1 of Chapter 1 of Division 2 of the Torrance Municipal Code is hereby renumbered and amended to read in its entirety as follows:
“ ARTICLE 1 - PRESENTING, AUDITING AND PAYMENT

21.1. 0 1 0 DEMAND REQUIREMENTS.
a) Except as otherwise provided in this Article, all claims or demands against the City shall be made in writing and shall set forth, in reasonable detail, the basis on which such claim or demand is presented.
b) The payment of demands covering payrolls shall be based on departmental time sheets that have been signed by the department head, or other persons authorized to sign on his behalf, certifying as to the accuracy of the time worked by each employee. c) The provisions of this Article shall not apply to claims against the City which must be presented and processed in accordance with the provisions of Part 3, Division 3.6 (Sections 900-935.6), of the State Government Code.

21.1.020 EXHAUSTION OF ADMINISTRATIVE REMEDIES FOR CHALLENGES TO FEES, CHARGES, AND ASSESSMENTS ON REAL PROPERTY.
a) Scope. The duty to exhaust administrative remedies imposed by this section extends to:
9 ATTACHMENT 2
(1) any fee or charge subject to articles XIII C or XIII D of the California Constitution,
(2) any assessment on real property levied by the City, and (3) the methodology used to develop and levy such a fee, charge, or assessment.
b) “Hearing” as used in this section means the hearing referenced in paragraph 4 of subsection d of this section.
c) Duty to Exhaust Issues. No person may bring a judicial action or proceeding alleging noncompliance with the California Constitution or other applicable law for any new, increased, or extended fee, charge, or assessment levied by the City, unless that person submitted to the City Clerk a timely, written objection to that fee, charge, or assessment specifying the grounds for alleging noncompliance. The issues raised in any such action or proceeding shall be limited to those raised in such an objection unless a court finds the issue could not have been raised in such an objection by those exercising reasonable diligence.
d) Procedures. The City shall:
(1) Make available to the public any proposed fee, charge, or assessment to which this section is to apply no less than 45 days before the deadline for a ratepayer or assessed property owner to submit an objection pursuant to paragraph 4 of this subsection d.
(2) Post on its internet website a written basis for the fee, charge, or assessment, such as a cost of service analysis or an engineer’s report, and include a link to the internet website in the written notice of the Hearing, including, but not limited to, a notice pursuant to subdivision (c) of Section 4 or paragraph (1) of subdivision (a) of Section 6 of Article XIII D of the California Constitution.
(3) Mail the written basis described in paragraph 2 of this subsection d to a ratepayer or property owner on request.
(4) Provide at least 45 days for a ratepayer or assessed property owner to review the proposed fee or assessment and to timely submit to the City Clerk a written objection to that fee, charge, or assessment that specifies the grounds for alleging noncompliance. Any objection shall be submitted before the end of the public comment portion of a Hearing on the rate, charge or assessment.
10 (5) Include in a written notice of the Hearing, a statement in bold-faced type of 12 points or larger that:
(A) All written objections must be submitted to the City Clerk by the end of public comment period at the Hearing and that a failure to timely object in writing bars any right to challenge that fee, charge, or assessment in court and that any such action will be limited to issues identified in such objections.
(B) All substantive and procedural requirements for submitting an objection to the proposed fee, charge, or assessment such as those specified for a property-related fee under California Constitution, article XIII D, section 6(a) or for an assessment on real property under California Constitution, article XIII D, section 4(e).
e) Council Consideration City Responses. Before or during the Hearing, the City Council shall consider and the City shall respond in writing to, any timely written objections. The City Council may adjourn the Hearing to another date if necessary to respond to comments received after the agenda is posted for the meeting at which the Hearing occurs. The City’s responses shall explain the substantive basis for retaining or altering the proposed fee, charge, or assessment in response to written objections, including any reasons to reject requested amendments. f) City Council Determinations. The City Council, in exercising its legislative discretion, shall determine whether:
(1) The written objections and the City’s response warrant clarifications to the proposed fee, charge, or assessment.
(2) To reduce the proposed fee, charge or assessment.
(3) To further review the proposed fee, charge, or assessment before determining whether clarification or reduction is needed. (4) To proceed with the Hearing, to continue it, or to abandon the proposal.

21.1. 0302 AUDITING PRIOR TO PAYMENT.
a) The Finance Director, after receipt of any claim or demand and before payment, shall audit the same giving particular attention to:
11 1) A comparison of the items reflected in such claim or demand as compared with the corresponding items set forth in the requisition, purchase order or contract;
2) Verification of the receipt of the materials, supplies or services covered by the claim or demand, and that the amounts reflected are due and payable. b) Prior to payment of payrolls the time sheets shall be audited by the Finance Director with particular attention given to the mathematical computations and extensions, and compliance with the provisions of the Code regulating employees’ salaries and working conditions.

21.1. 0430 PREPARATION AND LISTING OF WARRANTS.

21.1. 0504 CERTIFICATION BY FINANCE DIRECTOR.

21.1. 0605 DUTY OF TREASURER TO PAY WARRANTS.

Upon the presentation of a warrant, properly executed and endorsed, the City Treasurer shall pay the same out of the monies in the City Treasury properly applicable to that purpose.

21.1. 706 DELEGATION OF DUTIES.

The Finance Director may designate one or more assistants to perform any of the duties delegated to the Directorhim pursuant to this Article. ” SECTION 3.

SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or its application to any person or circumstance is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or its application to other persons and circumstances. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof despite the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional and, to that end, the provisions hereof are hereby declared to be severable.

INTRODUCED and APPROVED this ____day of ______, 2025.

ADOPTED and PASSED this _____ day of ______, 2025.

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

AYES:COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
Rebecca Poirier, MMC
Date: City Clerk of the City of Torrance
14 Ordinance Summary
On ______, 2025, the City Council of the City of Torrance adopted Ordinance No. _____ that amended Article 1, Chapter 1 of Division 2 of the Torrance Municipal Code entitled “Finance and Taxation” to establish a formal administrative remedies procedure for challenging city-imposed fees, charges, and assessments on real property, in compliance with state law and the California Constitution. It requires that any claims or objections to such fees or assessments must be made in writing and submitted before the end of the public comment period at a designated hearing, with the issues in any subsequent legal challenge limited to those raised in the written objection. The ordinance also details procedures for public notice, access to supporting documents, and city council responses to objections.
15 ATTACHMENT 3

Torrance City CouncilSeptember 23, 2025

Torrance City Council
September 23, 2025