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HomeMy WebLinkAbout2005-05-24 - AGENDA REPORTS - PLACERITA SEWER USER FEE (2)CONSENT CALENDAR WFW13 SUBJECT: DEPARTMENT: Agenda Item: — 4? CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: May 24, 2005 V P-41 0411 r/10, INTENTION TO ESTABLISH A SEWER USER FEE FOR THE PLACERiTA CANYON AREA Building and Engineering RECOMMENDED ACTION City Council adopt a resolution declaring the City's intention to establish a sewer user fee for the Placerita Canyon area, approve the Sewer User Fee Study, set the Public Hearing for July 12, 2005, and direct the City Clerk to publish and post notices as required by California Government Code Sections 66016 through 66018. BACKGROUND On July 13, 2004, the City Council authorized staff to advertise for construction bids, enter into a funding agreement with The Masters College, and proceed with the establishment of a sewer user fee. A sewer user fee is a mechanism for contributors, those who fund construction of sewers, to recover their construction costs. The proposed Placerita Canyon area sewer user fee is a means to reimburse the City, The Masters College, and developers of tracts along Palomino Road and Amelia Lane for their contributions for construction of the Placerita Canyon area sewer. The proposed user fee would be due from property owners at the time of connection to the sewer system. Staff has been working with a consultant specializing in special districts to determine the sewer user fee and to prepare a sewer user fee study. For analysis, the Placenta Canyon area was divided into three: Area 1 consists mostly of commercial properties adjacent to San Fernando Road; Area 2 is the central portion of the Canyon and is made up of mostly residential properties, but includes some commercial properties and The Master's College; Area 3 is the eastern portion of the Canyon adjacent to State Route 14, consisting mainly of vacant land. Please refer to Exhibit "A," a map of the Placerita Canyon Sewer User Fee Study Area. A user fee is based on the benefit received by each property. Properties located at the downstream portion of the sewer system do not benefit from any use of the upstream portion of the system; therefore, those property owners will not be responsible for any costs associated for the upstream portion of the system. More specifically, properties in Area 1 located at the Adopted: s downstream portion of the system, do not benefit from sewers constructed in Area 2, located upstream. Public Particivation To inform property owners of the proposed user fee, staff implemented a public participation plan, which included meetings with an advisory committee, followed by meetings with the general public. On January 13, 2005 and February 3, 2005, staff met with an advisory committee made up of property owners, HOA representatives, area developers, and representatives of The Master's College. In response to the advisory committee, staff made significant changes to include the construction of laterals in the right-of-way as part of the current sewer project under construction. Staff will allow the user fee to be placed on the property owner's annual tax bill to assist with hardship cases. Staff also adjusted a component of the user fee to reflect actual land uses and reduce the user fee. Finally, staff requested the County Sanitation District to assist property owners with the annexation process. The outcomes of the advisory committee meetings were presented to property owners at subsequent public meetings. On March 3, 2005 and April 21, 2005, staff held public meetings in which all Placerita Canyon property owners were invited. At the meetings, staff presented the outcomes of the advisory committee meetings, presented the concept and method used to determine the user fee, and explained the user fee establishment process. As requested during the public meetings, staff provided additional information on the septic tank abandonment process, requirements from the Plumbing Code to connect to the sewer, and detailed steps to connect to the sewer system. Determination of User Fee The factors used to determine the user fee are the estimated construction costs of the proposed sewer system, including the portion of the backbone under construction, the property acreage, established land use, zoning, and the industry accepted flow rates generated by the particular use. To establish a basis for comparison of each land use, the concept of Equivalent Dwelling Units (EDU) was used. A base factor of 1 EDU/single family residence was assigned to residential zoned properties. Subsequently, EDUs were assigned to each land use based on the flow rates generated. For example, a property zoned for Private Education generates 13 times more flow than a residential property; therefore, it is assigned 13 EDUs/acre, which corresponds to a user fee that is 13 times the amount for a residential property. The same concept is applied to properties zoned for commercial use, which was determined to produce 21 times more flow than a residential property. Therefore, commercially zoned properties are assigned 21 EDUs/acre and the user fee is 21 times that of a residential property. Please refer to Exhibit `B," Determination of Placerita Canyon proposed Sewer User Fee for more information. Requirements for Connection to Sewer System The proposed user fee is due from property owners only at the time of connection to the sewer system and will be tied to the CPI. Prior to connection, the property must be annexed into the County Sanitation District. The septic system must be abandoned and a private lateral must be installed to the building. Properties located within 200 feet of an available sewer system will be required to connect if improvements to the existing building requires a modification to the existing septic system, or if new construction is completed on the property. In addition, as in any case, the property is required to connect to the system if it is ordered by the Los Angeles County Health Department, regardless of its proximity to a sewer. Status of Construction On September 28, 2004, the City Council awarded a contract for the construction of the sewer that will allow connection by The Masters College dormitories and Alderbrook Road properties, as well as homes connected to existing dry sewer lines on Palomino Road and Amelia Lane. As part of the conditions of approval for the construction of a new dormitory, The Master's College was required to provide all necessary funding for the future possible construction of the mainline sewer. The construction of the sewer is scheduled to be completed in July of 2005. Future Extansion of Sewer System The user fee is not intended to provide funds for future expansion of the sewer system, but instead to eventually reimburse the financial contributors who funded construction in Areas 1 and 2. The cost to construct a sewer system within Areas 1 and 2 was used as a basis for the user fee. This ultimately includes a backbone and branch lines in Areas 1 and 2 as properties in all three areas develop and connect to the sewer system. The complete cost of all work in Areas 1 and 2 will be collected as part of the user fee. Due to the timing of development and the need for sewers, additional parties may underwrite the cost of future work. These parties will become contributors and be eligible for reimbursement under the user fee. Environmental Concerns On May 20, 2002, the City received a letter from the Regional Water Quality Control Board expressing concerns regarding the reliance upon septic systems for disposal of large flows of wastewater in many areas in the region's jurisdiction. In the letter, the Board states "Given the characteristics of the Placerita Canyon area, especially in light of the coarse soils which provide little, if any, natural filtration and treatment of the sewage before coming into contact with underlying groundwater, septic system use should be limited and, ideally, replaced by a central sewer system." ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT The City's contribution toward the project is $900,000.00. This amount includes approximately $300,000.00 in developer fees and $600,000.00 in additional funding. The Master's College has contributed $1,900,000.00 to the project. The City will be reimbursed through future connections to the sewer system.. ATTACHMENTS Resolution Exhibit "A" - Placerita Canyon Sewer User Fee Study Area Exhibit "B" - Determination of Placerita Canyon Proposed Sewer User Fee AK 4 b E rA N1 i .a iM r u r� RI i Exhibit "B" rlme..,.:.,atinn of Plarnrita Canvnn Prnnnsed Sewer User Fee Concept of User Fee y The sewer user fee is a mechanism for contributors to sewers in the Placenta Canyon area to recover their costs. The fee is based on the benefit received by each property from the sewers stem. Factors Used to Determine • Estimated construction costs of the proposed sewer system Benefit Received from Sewer • Property acreage - (commercial/industrial/business park/private education) System • Number of parcels (residential) • Established land uses (zoning) • industry accepted flow rates generated by the particular use Distribution of Construction Construction costs for the proposed sewer system were separated into the Main Costs to Determine User Fee Backbone and the Branch Lines: • Main Backbone: Connection to Sanitation District to Alderbrook, Placeritos from Alderbrook to Meadview, Meadview from Placeritos to Placenta, and Placenta from Meadview to Pepperidge • Branch Lines: All remaining lines branching off of the Main Backbone lines Construction costs were further separated between Areas 1, 2, and 3: • Area 1— commercial properties adjacent to San Fernando Road • Area 2 — Central residential area, including some commercial along Placenta Canyon Road and The Master's College • Area 3 — Eastern portion of canyon adjacent to SR -14 — mainly vacant land — no work in this area is included in cost basis The cost of the mainline backbone sewers are shared by each area. The cost of the branch lines are not shared and are covered by the area in which they are located. Concept of Equivalent To establish a basis for comparison of each land use, the concept of Equivalent Dwelling Units (EDU) Dwelling Units (EDU) was used. A base factor of 1 EDU/single family residence was assigned to residential zoned properties. EDUs were assigned to other zoning designations based on flow rates as compared to the baseline residential zoning. Land Uses and EDU • Residential (RL) = I EDU per single family residence Assignments • Churches = 4 EDUs per acre • Mobile Home Park = 6 EDUs per acre • Apartment = 12 EDUs per acre • Private Education (PE) = 13 EDUs per acre • Commercial (CC) = 15 EDUs per acre • Business Park (BP) = 21 EDUs per acre • Industrial (IC) = 21 EDUs per acre Summary of Costs Area Cost Per EDU Area 1 $412 Area 2 $3,681 Area 3 $593 Sample Calculation Example 1: Single family residence in Area 2 Number of EDUs = 1 residence x 1 EDU/residence = 1 EDU Cost per EDU = $3,681/EDU Total User Fee = 1 EDU x $3,681/EDU = $3,681 Example 2. 5 -Acre property zoned BP in Area I # EDUs = 5 acres x 21 EDU/acre = 105 EDUs Cost per EDU = $412/EDU Total User Fee = 105 EDU x $412/EDU = $43,260 Example 3. 5 -Acre property zoned CC in Area 3 # EDUs = 5 acres x 15 EDU/acre = 75 EDUs Cost per EDU = $593/EDU Total User Fee = 75 EDU x $593/EDU = $44,475