Item 4 - Continued Public Hearing for Adoption of Ordinance 351
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i ~. AGENDA REPORT
CITY OF POW A Y
Honorable Mayor and Members of the City Council ~~ .
FROM: James L. Bowersox. City Mana~ C'~..._.., '0~
IN THE CO
INITIATED 8Y: Mark S. Weston. Director of Engineering serVikC'City Engineep6
Kathy L. Cerini, Assistant Civil Engineer IIY
DATE: March 10. 1992
SUBJECT: Continued Public Hearing for Adoption of Ordinance 351
Establishing a Storm Drain Utility Fee
ABSTRACT
On February 11. 1992, the public hearing for Adoption of an Ordinance
Establishing a Storm Drain Utility Fee was opened; however, first reading
of the ordinance did not occur. Staff recommends that Council execute
first reading of the ordinance title and proceed with the public hearing
process as detailed in the recommendation section of this report.
BACKGROUND
At the February II, 1992 meeting, Council requested staff to address
several issues concerning the proposed stonn drain utility fee. The issues
are discussed under Findings and are as follows:
1. Investigate drainage reserve funds as possible funding source.
2. Investigate whether NPDES program can be more effectively
administered by the private sector or a consortium of cities.
3. Provide a breakdown of ,estimated monthly staff hours for program
management.
4. Discuss a cap on acreage for fee calculation.
5. Communicate to Congressman Duncan Hunter the City Council's
concern about Federal mandated programs which provide no funding
for implementation.
FINDINGS
1. Drainage Fund Reserves
There are two drainage reserve funds in the existing budget. Fund 12 and
Fund 24. Fund 12 was instituted upon the City's incorporation. It has a
current balance of $2.7 million and consists of property taxes, interest
income. drainage fees, and capital outlay. Fund 24, which has a current
balance of approximately $570,000.00, was created after the enactment of
AB 1600 and consists of drainage fees and interest income.
ACTION:
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Continued Public Hearing for Adoption of Ordinance 351 Establishing
a Stonn Orain Utility Fee
March 10, 1992
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The basic budget for these funds is:
Property Taxes $ 321,120.00
Annual Cost of Drainage Maintenance $ 320,871.00
Reserves, Drainage Fund Balance $ 816,826.00
Loans to RDA Payable to City
Drainage Funds $2,660,170.00
The annual operating and maintenance costs are paid for through property
taxes. Current operation and maintenance costs use available taxes. The
reserves and loans are set aside for capital projects. Drainage fees
collected are restricted for construction of major drainage improvements.
No funds are available to fund the costs of complying with the NPDES pennit.
2. Private Sector Management
The City of Poway has entered into a cooperative agreement with 17 other
cities, the County of San Diego, and the San Diego Unified Port District to
implement the requirements of the stonnwater pennit. On January 22, 1991,
Council adopted the Implementation Agreement binding the City of poway as a
co-pennittee. This agreement defines our management and fiscal respon-
sibilities for the NPDES program. As a result of this cooperative
agreement, the 19 jurisdi~tions involved have fonned a task force. The
task force meets monthly to discuss the progress of the,Stonnwater Quality
Task Force of the State Water Resources Control Board and to share resources
and information.
Several co-pennittees have adopted Stonn Drain Utility Fee programs. Below
is a sampling of cities and their projected stonn drain utility fee budget.
illl Yearly Budget
San Diego $ 750,000.00
Chula Vista 405,000.00
Del Mar 193,000.00
Also, City staff has investigated th,e use oJ a consultant to manage the
NPDES program. In September of 1991, the City received a proposal from BSI
to develop and administer the Clty's NPDES pennit program. The proposal,
in the amount of $138,100.00, was for program management, and did not
include pennit fees, testing, or administrative costs for billing. The
City has estimated program management to be $46,470.00 for fiscal year
1992-93, or approximately one-third of the cost proposed by BSI. The cost
,of $46,470.00 is 75% of a staff Assistant Civil Engineer II salary and
benefits.
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Continued Public Hearing for Adoption of Ordinance 351 Establishing
- a Stonn Drain Utility Fee
March 10, 1992
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3. Breakdown of Staff Hours
The tasks required by the program and the staff engineers estimated time
for each task is listed below.
TASK STAFF HOURS/MONTH
Meetings and discussions with Regional Board 6
Meetings and discussions with principal pennittee
and co-pennittee 6
Prepare Progress and Compliance Reports as
required under pennit B
Analyze data and update conveyance system maps 8
Prepare a stonmwater pollution prevention plan 16
Provide ongoing education to commercial/industrial/
manufacturing land uses 8
Perfonn field investigations of drainage ways 16
Respond to illicit connection/discharge complaints 8
Investigate ordinance violations
(pollutant discharges) 8
Develop a 8est Management Practices Program with a
- time schedule for implementation 6
Implement 8est Management Practices Program with
drainage maintenance division 8
,Manage monitoring program and implementation plan 8
Perfonn on-site inspection of industrial sites 8
Pursue enforcement actions to ensure compliance 4
Conduct annual fiscal analysis of program 2
TOTAL HOURS 120
4. Cap on Average
In addition, a cap of the fee is recommended. Staff proposes that all 3
acreage categories, multi-family, commercial, and low-density have rates
based on a maximum of 25 acres for any billed parcel. Please note that
undeveloped vacant land, publicly owned open space, non-residential City
and Redevelopment Agency owned property are exempt from these fees.
Agricultural land and golf courses are included in the low density category
and will have a rate of $2.90 per acre/bimonthly with a fee cap of $72.50
bimonthly. ,
5. Letter to Congressman Hunter
Attached as Exhibit A is a letter sent to Congressman Duncan Hunter
expressing the City Council's concern about passage of Federally mandated
programs without appropriate funding.
MAR 1 0 1992 ITEM 4
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Continued Public Hearing for Adoption of Ordinance 351 Establishing
a Stonn Drain Utility Fee
March 10, 1992
Page 4
FISCAL IMPACT
Implementation of the Federal and State stonnwater pennit will cost the
City $46,020.00 in FY 1991-92, and $75,420.00 in FY 1992-93. Stonn drain
utility fees are proposed to generate the revenue to cover these expenses.
ENVIROHMENTAl REVIEW
The City Council action to adopt the ordinance, including the subsequent
implementation and enforcement of the ordinance, is statutorily exempt
from environmental review pursuant to Section 15723 of the State CEQA
guidelines.
REtOMMENDATlON
It is recommended that the City Council read title of Ordinance 351
(Exhibit B) and waive further reading (unanimous vote), continue hearing to
March 24, 1992 for second reading; and tentatively approve the resolution
(Exhibit C) establishing the Fee Sr.hedule to be adopted at the second
reading and effective 30 days after approval.
JLB:MSW:KLC:lg
2 STDR1/4
ATTACHMENTS: 1. Exhibit A - Letter to Congressman Hunter
2. Exhibit B - Ordinance 351
2. Exhibit C - Resolution
MAR 1 0 1992 ITEM 4
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CITY OF POWl>-L
JAN GOLDSMITII, Mayor
KATI-IY MCINTYRE. DcPUIY M:'IYU(
DON IIIGGINSON, CoulU;ilmc::mlll:f ...
B. TONY SNESKO. Councilmcmbcr
_ BOB EMER Y. Cuuncilmcmbc:r
February 19, 1992
,
Congressman Duncan Hunter
366 South Pierce street
E1 Cajon, CA 92020
'n:g~~
Dear C~..._.. ..unter:
The city of poway is currently considering the establishment of a
storm Drain utility Fee to fund a federally mandated storm water
management program. While considering the Storm Drain utility
Fee which would impact all developed properties in Poway, the
City has become frustrated by the fact that the federal
government has once again imposed another federal program on
local agencies without a source of funding.
The federal government, through the issuance of National
Pollutant Discharge Elimination System (NPDES) permits, has
requfred local agencies that discharge storm water to develop
management programs for controlling storm water pollutants that
- enter into United States' waters. The City of Poway has found
that the establishment and implementation of the federally
mandated storm water program is very costly since no existing
City programs recover costs imposed by the NPDES permit and storm
drain program requirements. The City has estimated that the
storm drain program development and reporting costs for Fiscal
Years 1991 - 1992 and 1992 - 1993 will total $46,020 and $75,420,
respectively. These expenditures do nothing to prevent flooding
or otherwise improve drainage within the City.
Consequently, without resources to implement mandated programs,
it is difficult for cities to address problems the federal
government has placed in a position of national priorities. If
the federal government were responsible for the cost, would the
program even been adopted?
Your consideration of this matter is appreciated.
City Hall Located at 13325 Civic Center Drive
Mailing Address P,O, Box 789, Poway, California 92074-0789 . (619) 748,6600, 695-1400
191,.,.", " ,.", "EXHIBIT A" MAR 1 0 1992 ITEM 4
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Ordinance No. 351
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF POWAY, STATE OF CALIFORNIA,
ADDING CHAPTER 16.74 TO THE CITY OF POWAY MUNICIPAL CODE
TO ESTABLISH A STORM DRAIN UTILITY FEE
The City Council of the City of Poway does ordain as follows:
Chapter 16.74
STORM DRAIN REVENUE FUND
Sec. 16.74.01 ESTABLISHMENT OF STORM DRAIN REVENUE FUND-USES.
a. There is established a fund to be designated as the "Storm Drain Revenue
Fund. "
b. All revenues derived from the Storm Drain Utility Fee set forth in
Chapter 16.74 shall be deposited into said fund.
c. The fund shall be used solely for the following purposes:
To administer State and Federal storm water discharge permits, "moni-
toring storm drain systems, inspections, enforcement, maintenance, construction
.<.-..... of treatment facilities and implementation of Best Management Practices
programs. These administrative planning costs are in compliance with the con-
ditions imposed upon the City by the "early permit" issued to the City by the
Regional Water Quality Control Board on July 16, 1990 to establish a local level
National Pollutant Discharge Elimination System (NPDES) required by State and
Federal permits.
Sec. 16.74.020 STORM DRAIN UTILITY FEE: PURPOSE & ESTABLISH PAYMENT
a. The purpose of this section is to establish a Storm Drain Utility Fee
applicable to all property within the City limits connected to the wastewater
system, or the water system of the City of Poway. Vacant land, publicly owned
open space, non-residential City and Redevelopment Agency owned property is
exempt from the provisions of this ordinance. It is necessary to require system
users to pay for the services of cleaning storm drain inlets, underground
drainage systems, lined and unlined storm drainage channels or ditches.
b. In addition to other fees, assessments or charges provided by the City
code or otherwise, the owner or occupant of any property which is connected to
the sewer system of the City and/or to a water system maintained by the City of
Poway shall pay a storm drain utility fee as presently designated, or as may
hereafter be amended, by resolution in the Storm Drain Utility Fee Schedule.
Whenever an increase is proposed in said fee, City Council shall hold a public
hearing prior to any increase in the fee.
c. All storm drain fees imposed under this chapter shall be collected and
subject to the penalties and requirements set forth in Section 16.74.030 and
16.74.040. All proceeds of the storm drain utility fees shall be deposited in
the Storm Drain Revenue Fund.
"EXHIBIT ,6"
MAR 1 0 1992 ITEM 4
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Ordinance No.
Page 2
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Sec. 16.74.03 PAYMENT OF STORM DRAIN UTILITY FEE
a. The fee structure for the Storm Drain Utility Fee shall be based on the
runoff rate as determined by the Director of Public Services.
b. The Storm Drain Utility Fee shall be set by resolution of the City
Council and will be collected on the bimonthly water and/or sewer bill if either
of these services is provided. The fee shall bear a reasonable relationship to
the costs incurred by the City administer the NPDES program. The fee is
intended only to recover the cost of the program.
c. Initial bills for service will begin on the first new billing period 60
days after enactment of the Storm Drain Utility Fee. Bills for new services for
a period of less than 60 days will be charged for service on a prorata basis for
actual days of service. No refund will be provided for services which are
disconnected midway through a billing period.
d. Bills are due and payable on presentation and are delinquent if unpaid
within thirty days of the date mailed. A delinquency charge shall be added to
the service charge for all payments not received within thirty days of the date
the bill was mailed to the customer.
Sec. 16.74.04 ENFORCEMENT MEASURES IN .CASE OF DELINQUENCY. When any fee
."~ or charge imposed by this chapter becomes delinquent, the enforcement agents
are authorized to take any or all of the following actions:
-
a. Any steps authorized by law to collect fees and charges.
b. Any delinquency fee of 10% of the bimonthly bill will be charged if an
account is not paid after 30 days.
c. Continued delinquency may lead to disconnection of the premises from the
City's water system.
Sec. 16.74.05 RESPONSIBLE PARTY FOR PAYMENT OF STORM DRAIN UTILITY FEE
BIMONTHLY SERVICE CHARGE. The party responsible for payment of the
bimonthly service charge shall be the party who is being billed for water ser-
vice. However, the record owner of the property shall ultimately be responsible
for payments of the Storm Drain Utility Fee. Any agreement between landlords
and tenants to the contrary will not relieve the landlord or record owner of the
property of the responsibility for payment of the Storm Drain Utility Fee to the
City.
Sec. 16.74.06 VIOLATION--PENALTY. For failure of a customer to comply
with all or any part of this chapter and any ordinance, resolution or order of
the City pertaining to the delivery of public services in addition to any other
penalty or remedy provided by law, the City may discontinue water service.
(Ord. 107 ss 14, 19B3)
.. Introduced and first read at a regular meeting of the City Council of the
City of poway held the day of 1992, and thereafter PASSED AND
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Ordinance No.
Page 3
ADOPTED at a regular meeting of said City Council held the day of
1992, by the following roll call vote:
AYES:
NOES:
ABSENT:
Jan Goldsmith, Mayor
ATTEST:
Marjorie K. Wahlsten, City Clerk
~'J~
MAR 1 0 1992 ITEM 4
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Resolution No. 92-
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A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, STATE OF CALIFORNIA,
ESTABLISHING THE FEE SCHEDULE FOR A STORM DRAIN UTILITY FEE
WHEREAS, the City of Poway is subject to Federal regulations regarding storm
water discharges proposed by the U.S. Environmental Protection Agency under the
Clean Water Act.
WHEREAS, the California Regional Water Quality Control Board has issued an
"early permit" for National Pollution Discharge Elimination system (NPDES) regu-
lations under Order No. 90-42 requiring the City of poway to comply with the EPA
requirements.
WHEREAS, on January 22, 1991, the City Council adopted an Implementation
Agreement binding the City of poway as a co-permittee under Order No. 90-42 with
the other cities of San Diego County, the County of San Diego, and the Port
District.
WHEREAS, Chapter 16.74 of the poway Municipal Code authorizes the City
Council to establish certain fees for maintenance and administrative planning
costs in compliance with the conditions imposed upon the CHy by the "early per-
f.lillll mit" issued to the City by the Regional Water Quality Control Board on July 16,
1990.
.-
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as
follows:
Section 1. A schedule of bimonthly storm drain
utility fees be established to cover the
expenses of the City of Poway, its
officers, employees, agents, contractors,
and assigns incurred in compliance with
Order No. 90-42 for storm water
discharges, issued by the California
Regional Water Quality Control Board.
Section 2. Schedule of Bimonthly Storm Drain Utility Fees
1.1 Single Family Residential $ .91 bimonthly
1.2 Multifamily Residential $ 4.35 per acre!
(With Master Meters) bimonthly
1.3 Commercial Development $ 5.BO per acre!
(Commercial, industrial, manufacturing bimonthly
hospitals, hotels, motels & rooming
houses, post offices)
.- 1.4 Low Density Development $ 2.90 per acre!
(Public facilities, schools, bimonthly
churches, golf courses, cemeteries,
soccer fields)
"EXHIBIT e" MAR 1 0 1992 ITEM 4
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Resolution No. 92-
Page 2
Section 3. Multifamily Residential, Commercial Development,
and Low Density Development Categories shall have
their rates limited to a maximum of 25 acres for
any billed parcel.
Section 4. This fee schedule will take effect thirty
(30) days from the date of approval of the
ordinance ( 1992).
PASSED, ADOPTED, AND APPROVED, by the City Council of the City of Poway,
California, at a regular meeting this day of 1992.
Jan Goldsmith, Mayor
ATTEST:
Marjorie K. Wahlsten, City Clerk
n~~~~
STATE OF CALIFORNIA }
} ss.
COUNTY OF SAN DIEGO }
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify
under the penalty of perjury, that the foregoing Resolution, No. 92- , was
duly adopted by the City Council at a meeting of said City Council held on the
day of 1992 and that it was so adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, City Clerk
City of Poway
MAR 1 0 1992 ITEM 4
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