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HomeMy WebLinkAbout2005-07-12 - AGENDA REPORTS - PLACERITA SEWER USER FEE (2)PUBLIC HEARING DATE: 6Yi1�J_�i�W DEPARTMENT: Agenda Item: — 116 CITY OF SANTA CLARITA AGENDA REPORT Curtis Nay City Manager Approval Item to be presented by: July 12, 2005 ESTABLISHMENT OF A SEWER USER FEE FOR THE PLACERITA CANYON AREA Building and Engineering RECOMMENDED ACTION City Council conduct a public hearing and adopt a resolution to establish the sewer user fee for the Placerita Canyon area, as described in Exhibit "A," Placerita Canyon Sewer User Fee Study Area. BACKGROUND On May 24, 2005, the City Council adopted Resolution No. 05-46 declaring its intention to establish a sewer user fee for the Placerita Canyon area, approving the Sewer User Fee Study, and setting the public hearing date for July 12, 2005. Notices of the public hearing were published and posted as required by California Government Code Sections 66016 through 66018. 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 Placerita Canyon area was divided into three ares: Area 1 consists mostly of commercial properties adjacent to San Fernando Road; Area 2 is the central portion of Placerita Canyon and is made up of mostly residential properties, but includes some commercial properties and The Master's College; and Area 3 is the eastern portion of Placerita 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. Ada ted: q A user fee is based upon 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 downstream portion of the system, do not benefit from sewers constructed in Area 2, located upstream. Public Participation 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. In general, the Placenta Canyon property owners are in favor of future expansion of sewers in the area. Please refer to Exhibit 'B", "Fact Sheet" for supporting information. On January 13, 2005 and February 3, 2005, staff met with an advisory committee made up of property owners, Homeowners Association 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 reduced the user fee. Finally, staff requested that the County Sanitation District assist the 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 Placenta 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 "C," Determination of Placenta 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 Consumer Price Index (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 Master's College has increased the original scope of work and has funded additional sewers along Placerita Canyon Road. The construction of the sewer is scheduled to be completed in July of 2005. Future Expansion 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 i 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 Sewer User Fee Study Area Map Exhibit "B" - Fact Sheet Exhibit "C" - Determination of Proposed Sewer Fee CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING SEWER USER FEE FOR PLACERITA CANYON PUBLIC NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita on July 12, 2005, at or after 6:00 p.m. in the City Hall Council Chambers 23920 Valencia Boulevard, 1st Floor, to consider fees to establish a sewer connection user fee within Placertia Canyon. The purpose of the sewer user fee is to provide a mechanism for contributors to sewers in the Placerita Canyon area to recover their costs. The fee amount will be based on a fair share use of the sewer and will be collected from property owners upon connection to the sewer system. Proposed User Fee The User Fee Report sets forth the total cost of the improvements. If the proposed user fee is approved, in subsequent fiscal years beginning with fiscal year 2006/2007 the City Council may thereafter impose the user fees at any rate or amount that is less than or equal to the net user fee amount for fiscal year 2005/2006 (increased each year based upon the greater of the latest Consumer Price Index for the Los Angeles -Orange -Riverside County Area). Engineer's Report For a detailed description of the boundaries of the proposed user fee area, the improvements, and the proposed user fees, please refer to the User Fee Study prepared in connection with the proposed project. This report is on file in the office of the City Clerk, 23920 Valencia Boulevard, Santa Clarita, California. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting Dennis Mak, Senior Engineer, at (661)286-4138. Dated: May 26, 2005 Sharon L. Dawson, CMC City Clerk Publish Date: May 30, 2005 G B 01 Exhibit "B" Fact Sheet - Community Interest in Future Expansion of Sewers in Placerita Canyon Design plan submitted for sewer 5 property owners submitted plans for the extension of extension to Pepperidge Drive sewer on Placerita Canyon Road from the current project to Pepperidge Drive. These owners are currently in the annexation process with the Sanitation District. Request for extension on Placerita 6 property owners on Placeritos and Placenta have inquired and Placeritos with City staff to extend the current City project to cover frontage. Septic problems and need to 3 property owners along the current project limits connect (Placeritos, Alderbrook, Oak Orchard) and 1 property owner on north Meadview are having septic problems and have expressed interest to City staff that they will connect as soon as a sewer is available. Expansion of homes and interest 2 property owners on Alderbrook Drive are interested in to connect to sewer expanding their homes and have expressed interest to City staff that they will connect to the sewer once it is available. Masters College connection of Masters College and church will connect to the sewer as dorms soon as it is available. AES Placerita power plant AES Placerita located on the east end of Placerita Canyon interested in connection to sewer have inquired with City staff regarding future sewers. AES is interested in connecting due to large discharge from equipment washin operation. Various developers interested in Developers along Siena Highway have expressed interest to connection to sewer City staff regarding connection to sewers in the area. Advisory Committee The following were key issues discussed at the two committee meetings: • Committee asked staff to clarify how user fees collected will be used towards future sewer projects in the area. • Committee requested the City to construct laterals in the public right of way to allow future connection to sewer. • Requested staff to ask the County Sanitation District for assistance with the annexation process. • Asked the City to allow sewer user fee to be placed on their tax bill to accommodate hardship cases. Public Meetings The following were key issues at the two recent public meetings staff held with the community: • Question of how user fee will fund future projects. • Requested City to provide steps to connect to the sewer system. • Requested City to provide a breakdown of the total cost to connect. • Requested City to provide septic tank abandonment rocess. May 24'2005 City Council At the May 24 City Council meeting, the Council set the Meeting date of the public hearing for July 12, 2005. At the meeting, no comments in protest of the project were received from the public. Exhibit "C" Determination of Placenta Canvon Proposed Sewer User Fee Concept of User Fee 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 Placerims 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 desi nations based on flow rates as compared to the baseline residential zoning. Land Uses and EDU • Residential (RL) = 1 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