HomeMy WebLinkAbout2017-09-12 - AGENDA REPORTS - FEES FOR CITY SEWERAGE FACILITIES (2)Agenda Item• 9
CITY OF SANTA CLARITA
Q;" AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: i
DATE:
September 12, 2017
SUBJECT:
ORDINANCE ESTABLISHING PROVISIONS GOVERNING THE
IMPOSITION OF FEES FOR THE USE OF CITY SEWERAGE
FACILITIES
DEPARTMENT:
Neighborhood Services
PRESENTER:
Kevin Tonoian
RECOMMENDED ACTION
City Council introduce and pass to second reading an ordinance annending the Santa Clarita
Municipal Code to add Chapter 15.60, establishing provisions for the use of City Sewerage
Facilities.
BACKGROUND
At the May 10, 2011, meeting, the Santa Clarita City Council approved Master Case No. 07-127,
Vista Canyon. In connection with the Vista Canyon Project, the applicant was conditioned to
construct a self-contained wastewater treatment plant (Plant).
The Plant is being constructed to serve the new Vista Canyon development that is expected to
service approximately 1,100 residential units, as well as approximately one million square feet of
retail, office, hotel, restaurant and entertainment uses. Additionally, the Plant will be providing
sewage service to an adjacent property to the south of Vista Canyon.
Consistent with the approval of the Vista Canyon project, the City of Santa Clarita (City) will
own and operate the Plant. ha anticipation of ultimately owning the Plant, City staff has engaged
Harris & Associates to establish and collect a Sewer Standby Charge and Sewer User Fee to pay
for the annual maintenance and operational costs for the Plant.
The Standby Charge and Sewer User Fee will incorporate a rate schedule and a financing plan
that will provide the revenue needed for the future operation, maintenance, and long-term capital
replacement needs of the Plant. This analysis incorporates requirements of Proposition 218,
along with a recent case law regarding sewer service charges in order to allocate such costs to
future residents and ratepayers in a fair and equitable manner.
Page 1
Packet Pg. 49
0
In order to approve and collect annual charges associated with the operation, maintenance, and
long-tenn capital replacement needs of the Plant, it is necessary for the City Couicil to amend
the Santa Clarita Municipal Code. The proposed ordinance will add Chapter 15.60, Sewer Fees,
allowing for the collection of enterprise funds as prescribed in Califorma Govemment Code
(Health & Safety) Section 5471 that provides for the establishment of Water and Sewer Fees.
The purpose of this ordinance is to provide for the maximun public benefit from the use of
sewerage facilities of the City. This shall be accomplished by regulating sewer use and
wastewater discharges by providing equitable distribution of the City's costs and by providing
procedures that will allow the City to comply with the requirements placed upon our
organization by other regulatory agencies.
The revenues derived from the application of this ordinance shall be used to defray all costs of
providing sewage service by the City, including but not limited to, administration, operation,
monitoring, maintenance, financing, capital construction, replacement and recovery, and
provisions for necessary reserves.
Pending Council approval, a second reading of this ordinance will take place on September 26,
2017, and become effective thirty -days later. Staff anticipates returning to the City Council on
September 26, 2017, with the Engineer's Report to establish the Sewer Standby Charge and
Sewer User Fee for the Vista Canyon Treatment Plant.
ALTERNATIVE ACTION
Other action as detennined by the City Council.
FISCAL IMPACT
There is no fiscal impact associated with this proposed action.
ATTACHMENTS
Ordinance Establishing Provisions Goveming Fees for the use of City Vista Canyon Sewerage
Facilities
Page 2
Packet Pg. 50
9.a
ORDINANCE NO. 17- w
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF to
SANTA CLARITA. CALIFORNIA. ESTABLISHING PROVISIONS U.
o
GOVERNING THE IMPOSITION OF FEES FOR THE USE OF W
z
CITY VISTA CANYON SEWERAGE FACILITIES o
a
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA. CALIFORNIA. a..
DOES HEREBY ORDAIN AS FOLLOWS.
SECTION 1. Purpose and Policy. The purpose of this ordinance is to establish provisions
governing the imposition of fees for the use of City Vista Canyon sewerage facilities. As part of
the Vista Canyon Ranch development project, the developer was conditioned to construct a
wastewater treatment facility, which, once constructed, will be owned and operated by the City.
Operation and maintenance of such facility shall require ongoing revenue. California Health and
Safety Code sections 5471 et Seq. authorize the imposition of fees and charges upon the users of
such facilities. The revenues to be derived from the application of this Ordinance shall be used to
defray all costs of providing sewage service by the City, including, but not limited to,
administration, operation, monitoring, maintenance, financing, capital construction, replacement
and recovery, and provisions for necessary reserves.
SECTION 2. The Santa Clarita Municipal Code is hereby amended to add Chapter 15.60,
Sewer Fees, to read as follows.
FEES AND SEWER CAPACITY DETERMINATION
15.60.10 Authority
The fees and charges referred to in this Ordinance are adopted pursuant to Sections 5470 and
5471 of the Health and Safety Code of the State of California.
15.60.20 Definitions
The following definitions shall relate to all occurrences of the terms listed below.
a) "Annual Sewer System Charge" shall mean the fee or charge levied pursuant to this
Chapter.
b) "Department" shall mean the Department of Public Works of the City of Santa Clarita
c) "Equivalent Benefit Unit (EBU)" shall mean the unit of measure that is based on the flow
characteristics of an average single family residence in terms of sewage quantity and c
constituent quality. T
d
d) "Director" shall mean the Director of Public Works.
t
Q
e) "Fiscal Year" shall mean the period from July Ito the following June 30, both inclusive.
Q
Packet Pg. 51
f) "Person" shall mean any person, fin -n, company, corporation, political subdivision,
municipal corporation, City, the State of California, the United States of America or any
department or agency thereof.
g) "Premise" shall mean any lot, piece or parcel of land, building or establishment.
h) "City Vista Canyon Sewerage System" shall mean all facilities and appurtenant
equipment utilized in the collection, transportation, pumping, treatment and final disposal
of wastewater within the City and connected to the Vista Canyon wastewater treatment
Plant.
i) "Vista Canyon Waste Water Sewer Fee District" shall mean the area described in the
engineer's report prepared pursuant to provisions of the Health and Safety Code, Division
5, Part 3 Chapter 6 Article 4, "Sanitation and Sewerage Systems" to calculate fees to
support long tern operations of the Vista Canyon Sewer System.
j) "Vista Canyon Wastewater Standby District" shall mean the area described in the
engineer's report prepared pursuant to provisions of the Uniforn Standby Charges
Procedures Act Title 5, Division 2, Part 1, Chapter 12.4 of the California Government
Code to calculate fees to support long tern operations of the Vista Canyon Sewer
System.
k) "Wastewater" shall mean all residential, commercial and industrial liquid wastes
authorized for discharge into any collection system operated by the City.
15.60.30 Establishment of Annual Server Service Charge
a) Establishment of Annual Sewer Service Charge. There is hereby levied and assessed
upon each premise in the City that discharges sewage directly or indirectly into the Vista
Canyon Sewer System, and upon each person owning, letting, or occupying such premise
an Annual Sewer Service Charge.
b) The Annual Sewer Service Charge is based on the City's annual cost for operation and
maintenance of the City Vista Canyon Sewerage System, treatment and disposal of
wastewater and capital improvement projects. These costs are equally divided among the
number of Equivalent Benefit Units (EBU's) connected to the Vista Canyon Sewer
System.
c) Assignment t of Equivalent Benefit Units (EBU's) - Each parcel shall be assigned
Equivalent Benefit Units in accordance with the factors shown below.
9.a
Packet Pg. 52
kA
O
land Use
EBU 5aor
Sngle FamileResmenval
1.00 ESU per Dwelling Unit
Sngle Family ResidenvalCondo
0]S EBU per Dwelling Unit
Muhl-FamIF/ Resdental- Apartment
0.0 EBU per Dwelling Unit
Non ftsidental Office
0.]S EBU per LWO SF
NonResldentoI Read
0.38 EBU per LWO SF
Non -Residential HoUN
O.OIEBUper Room
Non -Residential-Restauant
&W EBU per10OSF
I5.(giAO f'apment of Annual sewer sers(ce Charges
C) Hamra,idol fled willin ltc vino copoo Woocwoa Scwa FCC Mol to and
Woomola Smlmbp D olm Dlgioccr`, Rgwrz will bcnnbjcc ro mo Anniwl Sova
cloogcwllwcdon llc Lm Aog llc, Conmp Cox mll in Ocwlnc loll, C,, by llc,00lc
pas�nn m.. and Ctawwlnclioncan, ogcfua willoldiwl cjoolclp fmnb Oocad cAOlcn
ICCI Vlvpcip ox beginning on I ll} L 2018.
b) pocoll,c, will CC locdautawcwcd lillooghOCWoomo1 soodlo
bp Dollot ll mall
lime mdo pocll,c di,cbogc, cw0gC diouUp or iodiouUp i nm llc Cll}vinocopoo
sovaagc Spocl
C) cmanmcologcodc, lot ocovvlog ox bill, will be inmiccd in scp Colim Co licir
AnnoCl Sava Sanivc clooga
d)
Ifo meinaca,c,, aimlocvf m llcAnnowl sola Sanivc Cloogcinaca,c,, awi olmol
}ool d6cocooc i, gold will isviwooc ofo Bl oldiog Pcanil. TbacCla,. lmAnnowl sola
Sanivc Cloogc'holl bcoollco will load vOlonnn pmpc(p ox or inmiccd ifaw me
n C gosmnnwol CgCCCC ICOccscnCBlolding Paom i, Intl i„ncd Cr llc i00000 i
vc, loc Alllawl Sava Sol iocCllolgc,iwll be Collcaat Ciba will poo m l} Wool wilco
llc me 1, C poivoc bmincr, or imoiacd wilco llc me 1, C gosmnnwol CgCCCC
C) Tlm cilp Mooga,iwllOCCwllp cmc to be pmi000d old sad wi ll llc c¢pciclellc
Igrvrz dc,atbcd in Section 1423 oralcColl C nla Hallo old SoCcp coda
O Tllc CI 1p coimml I,I wll wn,ida old lgrvrz Cl C pniflI C I m I og Cooked old Wnd0000d
pnooanl m smimo, 14231 lnongb 1423.2 of OlcColl [ min Hallo old satap codc,.
f loving wbial baring it mop Col oolloo on llc Ialwrz, pnooanl m swioo 14233 of
Owl CC&Clld owJ1 Col awl olc cilp alae Slc llc Iciwrz Cold Oc dlogc,mooincd
Oacio wino llc Lav Aogdc, comnp.aiolior pnooanl lo swioo 14234 of Owl coda
g) Down OcappmvClold sing of,,ndodooll bc,nbjcOC Vow of
Salon1473
,1 lillooUl 14239offloc Coll f min HoollbCod sarcp Codc nomoflal
avvuCobiclow
Pellet Pg. 53
h) In the event the City cannot, or does not, complete action pursuant to Article 3.2 through
3.4 of this code to levy the Annual Sewer Service Charge against a parcel for a fiscal
year, the City may collect such Annual Sewer Service Charge for that year with respect to
that parcel by mailing a bill to the owner of the parcel, provided that the report and
hearing process required by the Health and Safety Code have been complied with. Any
charge billed in this manner shall be due and payable upon presentation, but no earlier
than December i of the fiscal year for which the charge is imposed. If a charge billed in
this manner is not paid within thirty (30) days of the due date, then on the first day of
each calendar month thereafter a late fee of two (2) percent of the annownt of the
delinquent Annual Sewer Service Charge shall be added and become due. If any such
charge remains outstanding at the time the report is prepared for a subsequent fiscal year
pursuant to Section 3.2, the delinquent charge (and accrued late fees) may be included on
such report and collected on the tax roll along with the charges for that fiscal year.
i) In the event the owner of a parcel subject to the Annual Sewer Service Charge believes
that the estimation of sewer use calculated by the City pursuant to Article 3.2 for that
parcel for a fiscal year does not accurately reflect the amount of effluent introduced into
the Sewerage System via the parcel's connection to the Sewerage System, then the owner
may file a written appeal of the detennination (and the Annual Sewer Service Charge
against the parcel) with the appeals City Manager (or his or her designee). Such written
appeal must be filed before December 31 st of the fiscal year and must include evidence
that (i) due to the unique or unusual nature of water use on the parcel, the estimation
method substantially overestimates the sewer usage of the parcel relative to other parcels
with similar actual sewer use, and (ii) use of the standard estimation method is manifestly
uifair under the circumstances. If the appeals City Manager detennines that each of the
previous -stated criteria is true, based on the written appeal and on other evidence
available to the appeals City Manager, then the appeals City Manager will reduce the
Annual Sewer Service Charge for that parcel for that fiscal year to the annount he or she
detennines to reflect an accurate estimate of sewer use and shall either transmit a correct
charge to the county or issue a refund in the amount of the reduction. The appeals City
Manager's detennination shall be final.
15.60.50 Severabitity
Severability of provisions. If any section, subdivisions, sentence, clause or phrase of this
Ordinance is, for any reason, held to be invalid or unconstitutional, such invalidity or
unconstitutionality shall not affect the validity or constitutionality or the remaining portions of
this Ordinance; it being hereby expressly declared that this Ordinance, and each section,
subsection, sentence, clause and phrase hereof would have been prepared, proposed, adopted,
approved and ratified irrespective of the fact that any one or more other sections, subsections,
sentences, clauses or phrases be declared invalid or unconstitutional.
SECTION 4. This ordinance shall take effect and be in force thirty (30) days after its
passage.
9.a
Packet Pg. 54
kA
PASSED. APPROVED, AND ADOPTED this day of
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss.
CITY OF SANTA CLARITA }
9.a
2017
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Ordinance 17- was regularly introduced and placed upon its first reading at a
regular meeting of the City Couicil on the day of 2017. That thereafter, said
Ordinance was duly passed and adopted at a regular meeting of the City Council on the day
of 2017, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance
was published in The Signal newspaper in accordance with State Law (G.C. 40806).
CITY CLERK
and
Packet Pg. 55
ZA