(a) (Amended by Ord. No. 171,036, Eff. 6/6/96.) Before granting a permit to connect any lot or parcel or to connect a new building on such lot or parcel to a public sewer or house connection sewer pursuant to the provisions of Section 64.12 of this Code, including a replacement building following a demolition, except applications for permits to repair or replace existing sewer connections which repair or replacement is unrelated to any new construction or to new use or occupancy, the Board shall require, in addition to all other charges and fees imposed by Sections 64.12 to 64.22, inclusive, the payment by the applicant therefor of a Sewerage Facilities Charge fixed in accordance with Section 64.11.3. The Board shall provide a credit pursuant to Subsection (c).
(b) (Amended by Ord. No. 171,036, Eff. 6/6/96.) A Sewerage Facilities Charge, based upon the rates established in Section 64.11.3 of this article, shall also be imposed as follows:
1. Where a physical addition is made to an existing residential occupancy to create an additional dwelling unit or units, or where an existing residential occupancy is modified to create an additional dwelling unit or units, a charge shall be imposed for each additional dwelling unit on a lot or parcel created by the addition or modification. Where any existing dwelling unit is enlarged or modified to create an additional bedroom or bedrooms, a charge shall be imposed for each additional bedroom created on the lot or parcel by the addition or modification.
2. Where an addition is made to an existing commercial building, or an additional commercial building is constructed on a lot or parcel, a charge shall be imposed based on the increase in gross floor area or on the increase in such other indicator of activity as the Board may adopt.
3. Where the average flow discharge and/or the average discharge of mass emissions of biochemical oxygen demand (BOD) and/or suspended solids (SS) from industrial buildings on a lot or parcel are increased, a charge shall be imposed based on the average flow and the BOD and SS mass emissions (calculated as the flow rate multiplied by the BOD and SS concentrations and by a unit conversion factor) following the increase. The Board shall provide a credit pursuant to Subsection (c).
4. Where the use or occupancy of an existing building on a lot or parcel is changed, a Sewerage Facilities Charge shall be imposed based upon such new use or occupancy. The Board shall provide a credit pursuant to Subsection (c).
(c) Whenever a credit is allowed, the credit shall be determined by first calculating flow, BOD and SS credits and then calculating an aggregate monetary credit. The flow, BOD and SS credits shall remain with the lot or parcel except as provided in Section 64.16.2 or 64.19(e). (Amended by Ord. No. 182,076, Eff. 4/6/12.)
1. The flow credit shall be calculated as the total of the following:
(i) the largest average flow rate of discharge from the lot or parcel to a public sewer determined by the City Engineer to have occurred before establishment of the Sewerage Facilities Charge, provided that it shall be the applicant’s responsibility to submit documented evidence satisfactory to the City Engineer to obtain this credit; plus
(ii) the average flow rate of discharge for which a Sewerage Facilities Charge has been paid in cash, by transferral from a revitalization, enterprise, or empowerment zone per Section 64.16.2, or by construction of an offsite sewer pursuant to Section 64.11.3, provided that offsite sewer construction shall have been accomplished and its cost documented in accordance with the policies of the City Engineer to obtain this credit; minus
(iii) the average flow rate of discharge which is equivalent to the flow component of any refunds which have been paid; minus
(iv) the average flow rate of discharge which has been transferred away pursuant to Section 64.16.2.
2. The Board shall adopt rules to determine the initial BOD and SS credits allocable to a lot or parcel upon implementation of this subsection (c).
3. The credits for strength (BOD and SS) parameters shall be calculated as the total of the following:
(i) the largest average rate of mass emissions discharge from the lot or parcel to a public sewer determined by the City Engineer to have occurred before establishment of the Sewerage Facilities Charge, provided that it shall be the applicant’s responsibility to submit documented evidence satisfactory to the City Engineer to obtain this credit; plus
(ii) the average rate of mass emissions discharge for which a Sewerage Facilities Charge has been paid in cash, by transferral from a revitalization, enterprise, or empowerment zone per Section 64.16.2, or by construction of an offsite sewer pursuant to Section 64.11.3, provided that offsite sewer construction shall have been accomplished and its cost documented in accordance with the policies of the City Engineer to obtain this credit; minus
(iii) the average rate of mass emissions discharge which is equivalent to the mass emissions component of any refunds which have been paid; minus
(iv) the average rate of mass emissions discharge which has been transferred away pursuant to Section 64.16.2.
The monetary credit shall be calculated by multiplying the rates established pursuant to Section 64.11.3 at the time the Sewerage Facilities charge was paid by the flow, BOD and SS credits and summing the results, provided that the total credit shall not exceed the Sewerage Facilities Charge required to be paid except as provided in Subdivision 6. of Subsection (a) of Section 64.19. (Amended by Ord. No. 182,076, Eff. 4/6/12.)
Notwithstanding the previous sentence, in the case of reconstruction of a building damaged by the earthquake of January 17, 1994, the amount of the credit shall be the Sewerage Facilities Charge which would have been applicable on January 17, 1994, or the Sewerage Facilities Charge based on the rates established pursuant to Section 64.11.3, whichever is greater.
(d) ((c) Relettered (d) by Ord. No. 171,036, Eff. 6/6/96.) The Council may, in the exercise of its sound discretion, and upon advice of the Board, reduce the sewers facilities charge for any property for which off-site public sewers are constructed beyond the limits of said property, by all or part of the actual cost of the construction of said off-site public sewer.
(e) ((d) Relettered (e) by Ord. No. 171,036, Eff. 6/6/96.) Where the applicant meets the criteria as specified hereinafter, and enters into an installment payment agreement with the Board, the applicant shall be allowed to pay the Sewerage Facilities Charge as follows: a down payment of 15 percent of the Sewerage Facilities Charge due, or more at the applicant’s option, followed by quarterly installments extending over a period not to exceed five (5) years at such interest rate as the Board shall establish annually in July of each year. The rate shall be the simple average of the last available twelve months’ average interest earnings from the pool in which Sewer Construction and Maintenance Fund moneys are invested, as reported by the City Treasurer and rounded to the nearest tenth of one percent, plus one percent.
EXCEPTION: Interest shall not be charged to a charitable institution as defined in Item No. 2 below. Quarterly installments shall be in the amount necessary to fully amortize the Sewerage Facilities Charge, excluding the down payment, and interest over the payment period.
The Board shall also establish a fixed fee to cover setup and administrative costs associated with the installment plan. This fee shall be determined as provided in Section 12.37 I.1. of the Los Angeles Municipal Code. If the applicant is a lessee, the installment payment period shall not exceed the remaining period of time the applicant is to occupy the subject property under the terms of the lease agreement. Provisions in the lease agreement for termination of the lease upon the occurrence of certain events shall not prevent the lessee from entering into an installment agreement.
The applicant must meet one or more of the following criteria:
1. The applicant’s property is an individual site in which the Sewerage Facilities Charge due equals or exceeds $17,000. “Individual site” shall not include a subdivision with more than one sewer connection.
2. The applicant is a charitable institution and the Sewerage Facilities Charge due equals or exceeds $5,000. For the purpose of this subsection, a charitable institution shall be an institution which meets the five criteria listed in Subsection (f) of this section.
3. The applicant is a surgical hospital.
4. The applicant is a property owner who is ceasing to use a private sewage disposal system and is connecting to the City sewage system.
(f) ((e) Relettered (f) by Ord. No. 171,036, Eff. 6/6/96.) Whenever the Board has authorized an installment payment agreement to be entered into pursuant to Subsection (e), the following requirements shall apply:
1. The first quarterly payment under the installment payment agreement shall be due on the first day of the third month next succeeding the month in which the down payment was made. Remaining payments shall be due on the first day of every third month thereafter.
2. A payment shall become delinquent if not postmarked on or before the 15th of the month in which it is due. All delinquent payments shall incur a penalty charge of 10 percent of the cumulative amount of all delinquent payments, including previous delinquency charges. Said delinquency charge must be paid in full before normal payments will again be accepted.
3. If a payment remains unpaid beyond the 15th day of the third month next succeeding the date on which it became delinquent, the permittee shall be determined in default. The Board shall notify the permittee, and, in addition, the owner of the property if different from the permittee, by certified mail with return receipt that:
A. The permittee and/or the owner have one month from the default date to bring the balance current or the entire unpaid plan amount, including delinquent charges, will become due and payable; and
B. The connection permit may be canceled and the connection severed if the permittee continues in default beyond that date.
4. If the permittee remains in default for one month and 10 days, the Board may cancel the Sewer Connection Permit and sever the connection. The Board shall notify the permittee, the owner, if different from the permittee, and the Superintendent of the Department of Building and Safety at least 10 days before taking such action.
5. Where title to a premises subject to an installment payment agreement is sold or transferred, and the permittee is the owner of said property, the entire unpaid balance of the charge shall immediately become due and payable and the permittee and the new owner of the property shall be jointly and severally liable for said amount. The installment payment agreement shall provide for the creation of a lien against the subject property to secure payment to the City, at time of sale, of the unpaid balance of the Sewerage Facilities Charge and any accrued penalty charges. The lien shall be recorded with the County Recorder by means of a covenant executed by the parties.
6. In the event the permittee is a lessee on the property, the entire unpaid balance of the charge shall immediately become due and payable upon termination of the leasehold interest for whatever reason, including termination of the lease or assignment of the leasehold interest, and the permittee shall be liable for said amount. The installment payment agreement shall provide for the creation of a lien against the leasehold interest of the lessee to secure payment to the City of the unpaid balance of the Sewerage Facilities Charge and any accrued penalty charges at the time of termination of the leasehold interest. Such lien requirement shall not be imposed, however, if the lessee would violate the lease agreement in so doing, or is unable to obtain the consent of the lessor where such is required by the lease. The lien shall be recorded with the County Recorder by means of a covenant executed by the parties. In the event of leasehold termination, the lessor may assume the obligation of payment of the unpaid balance under the installment payment agreement but will be required to comply with all provisions of this section which are applicable to owners who are permittees.
7. Delinquent charges and all penalties thereon as to any permittee, whether lessee or owner, shall constitute a lien on the real property served when recorded as provided in Section 54355 of the Government Code of the State of California and such lien shall continue until the charge and all penalties thereon are fully paid or the property sold therefor.
8. All or part of any unpaid plan amount may be paid in advance at any time.
9. When all moneys under the plan have been paid in full, a Sewer Facilities Charge certificate of payment will be issued.
(g) ((f) Relettered (g) by Ord. No. 171,036, Eff. 6/6/96.) Where the applicant is a charitable hospital, it shall be exempt from sewerage facilities charges. A hospital is charitable, for the purpose of this subsection if:
1. It is not operated for profit;
2. No part of its assets inures to the benefit of any private shareholder or individual;
3. Its assets are irrevocably dedicated for a charitable purpose;
4. Upon dissolution, its assets shall be distributed to an organization exempt for charitable purposes from taxation under the Revenue and Taxation Code or the Internal Revenue Code.
5. The applicant has obtained a charitable purpose tax exemption determination from the California Franchise Tax Board.
(h) ((g) Relettered (h) by Ord. No. 171,036, Eff. 6/6/96.)
1. Where the Board finds that an applicant presently discharging, as of the date of this ordinance, into the Los Angeles Harbor has been ordered by a State and/or Federal agency to so cease discharging and, as a result, must therefore connect to the City sewer system, the Board may permit the applicant to defer payment of such sewage facilities charge for a two year period from the date of the application for the sewer connection permit. If at the end of such two year period the property which was connected to the City’s sewer system pursuant to such deferment of payment is no longer so connected no sewerage facilities charge will be imposed. The granting of such deferment of payment is subject to the applicant entering into an agreement to pay the amount deferred if the subject property is still connected to the City’s sewer system at the end of the two year period.
(Para. numbered 1., Amended by Ord. No. 153,056, Eff. 10/29/79.)
2. (Added by Ord. No. 153,056, Eff. 10/29/79.) As to any applicant granted such a deferment as provided above the Board may grant a deferment for an additional eighteen month period provided at the time application is made for such extension the applicant is actively seeking permission from the appropriate authorities to be permitted to discharge into the Los Angeles Harbor. If at the end of such eighteen month extension the property which was connected to the City’s sewer system pursuant to such deferment of payment is no longer so connected no sewerage facilities charge will be imposed. The granting of such extended deferment is subject to the applicant entering into an agreement, or amending its existing agreement, with the City to pay the amount deferred if the subject property is still connected to the City’s sewer system at the end of the eighteen month extension period.
(i) ((h) Relettered (i) by Ord. No. 171,036, Eff. 6/6/96.) The sewerage facilities charge fees applicable to single family dwellings as of September 1, 1986, shall be applicable to a sewer connection by a single family dwelling to a sewer when:
1. The sewer was installed pursuant to an assessment proceeding where the petition therefore was on file with the City as of September 1,1986; and
2. The connection is made within one year after acceptance of the completed sewer by the Board.
(j) ((i) Relettered (j) by Ord. No. 171,036, Eff. 6/6/96.) Where the applicant is a non-profit corporation it shall be exempt from sewerage facilities charges required for a dwelling structure it is constructing, or substantially rehabilitating, to serve low-income elderly and/or handicapped families or individuals if the construction or rehabilitation of said structure is being government funded and the dwelling is on property being leased from the city, or on property which has been, or will be, acquired from the City with the City having an option to re-acquire the property. A corporation is non-profit, for the purpose of this section, if:
(1) The purposes of the corporation include the promotion of the welfare of elderly and/or handicapped families and/or individuals;
(2) No part of the net earnings of the corporation may inure to the benefit of any private shareholder, contributor or individual; and
(3) The corporation is not controlled by, or under the direction of, persons or firms seeking to derive profit or gain therefrom.
(k) ((j) Relettered (k) by Ord. No. 171,036, Eff. 6/6/96.) (Repealed by Ord. No. 170,083, Eff. 11/26/94, Oper. 7/1/94.)
(l) (Added by Ord. No. 169,042, Eff. 9/14/93.) Where an alcohol retail business was damaged or destroyed in the 1992 civil disturbance, the sewerage facilities charge shall be waived where the specific site, or an area encompassing the specific site, where such business was or is located, is to be converted to another use not involving the sale of alcoholic beverages. In case the new use is to be a non-industrial laundromat, such waiver will be to the extent of the use of a maximum of sixty (60) washing machines; provided, however, if the new use is something other than a laundromat, the waiver available shall be equivalent to the amount of the sewerage facilities charge payable for a laundromat containing sixty (60) washing machines. As a condition to obtaining such a waiver of the sewerage facilities charge, the alcohol retail licensee must submit proof of the cancellation of the license issued by the State Alcoholic Beverage Control Department for the particular alcohol retail business which was damaged or destroyed, at the time of the issuance of the certificate of occupancy.
Such conversion to a new use having occurred, if there should be a further or different conversion then the credit utilized in determining the appropriate sewerage facilities charge shall be based upon the applicable sewerage facilities flow credit prior to the 1992 civil disturbance.
This section shall be non-operative two (2) years after its effective date.
(m) (Added by Ord. No. 171,036, Eff. 6/6/96.) Notwithstanding Subsection (a) of this section, where the application is for the connection of a temporary field office at a construction site to a sewer, no Sewerage Facilities Charge shall be collected.