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HomeMy WebLinkAboutCity Council Item No. 06CITY OF LADE 'jLSI1A0 DREAM EXTREME. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: FEBRUARY 22, 2011 SUBJECT: RESOLUTION REGARDING COUNTY SERVICE AREA 152 AND SETTING THE BENEFIT ASSESSMENT UNIT RATE FOR FISCAL YEAR 201112012 FOR THE CITY OF LAKE ELSINORE TO FUND THE CITY'S NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT PROGRAM Background The City is required to comply with legislation resulting from the Federal Clean Water Act and the 1969 State of California Porter-Cologne Water Quality Control Act. This legislation is commonly referred to as the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit. As provided for by the Federal and State Acts, the NPDES program compliance requirements have been incrementally increased over the years, resulting in an increase in compliance costs. The County of Riverside established County Service Area ("CSX) 152 as a funding mechanism to pay for anticipated costs of compliance with the NPDES Permit. In 1994, the County of Riverside annexed the City of Lake Elsinore into its County Service Area 152. The City, acting through the County and CSA 152, is able to impose a charge on individual parcels within the City that contain a structure. Each parcel is assigned a certain number of "benefitted assessment units" or "BAU." For instance, a single family home is assigned one BAU, commercial property is assigned 12 BAUs per acre. As initially set, the maximum authorized charge is $13.88 per BAU but the actual charge has historically been much lower. It was reduced to $6.63 in 1997 and remained at that rate until 2010. AGENDA ITEM NO. PAGE 1 OF~_~ In July of 2010, Staff recommended and City Council approved an increase to $7.50 as the first step in the process of phasing in increases to the BAU in an effort to bring the revenue into line with expenditures. Even with this increase in funds, the program compliance costs were expected to exceed the revenue generated. The deficit was to be offset from an accumulated surplus of CSA 152 funds, which needs to be drawn down. In July of 2010, a new NPDES Santa Ana Region Municipal Separate Storm Sewer System (MS4) Permit took effect. The new permit requires additional compliance activities and results in an increase in program compliance costs. Discussion At this time, neither the State nor Federal governments provide funding for the activities mandated by the NPDES Santa Ana Region MS4 Permit, the City's primary source of funding for the City's NPDES program activities is CSA 152. The fiscal year 2010/2011 NPDES program budget was estimated at $268,508; due to the new MS4 Permit, the 2011/2012 NPDES program budget is estimated at $315,820, an increase of 17.6%. These funds are used to cover staff administrative costs, reporting, education and training, maintenance of storm drains, catch basins, purchase and maintenance of equipment, inter-agency program cost shares, inspection of residential, commercial, industrial and construction sites in the City and include one time expenditure for web-based mapping of the City's storm drain system. As in 2010/2011, CSA revenues will not cover the 2011/2012 program costs. In keeping with 2010/2011 City Council action of modestly phasing in the BAU increases and drawing down the existing account surplus, Staff recommends that the City Council increase the BAU by approving at 10% increase to $8.25, generating an estimated $179,900. The operating deficit will be covered by unused CSA 152 monies from prior years. Fiscal Impact No negative fiscal impact. Recommendations Approve Resolution No. 2011- regarding County Service Area 152 and Setting the Benefit Assessment Unit Rate for Fiscal Year 2010/2011. AGENDA ITEM NO._~_ PAGE ~ ®F~_, Prepared by: Rita Thompson NPDES Coordinator Ken A. SeumaloS Director of Public Works Approved by: Robert A. Bradye City Manager Attachments: Resolution AGENDA ITEM NO. ,a PAGE 3 OF 7 AGENDA ITEM NO. to PACE__~____OF 7 RESOLUTION NO. 2011. 11 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REGARDING COUNTY SERVICE AREA 152 AND SETTING THE BENEFIT ASSESSMENT UNIT RATE FOR FISCAL YEAR 2011/2012 FOR THE CITY OF LAKE ELSINORE TO FUND THE CITY'S NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT PROGRAM WHEREAS, the County of Riverside has established a Community Service Area, (CSA) 152, for the purpose of collecting parcel charges for services within its boundaries; and WHEREAS, the City of Lake Elsinore, in order to fund its participation in the National Pollutant Discharge Elimination System ("NPDES"), annexed into CSA 152 in 1994; and WHEREAS, the County of Riverside has agreed to allow the CSA 152 funding vehicle to be utilized by the participating cities; and WHEREAS, the City has determined that the proposed CSA 152 parcel charge is a benefit assessment; and WHEREAS, the maximum assessment per Benefit Assessment Unit is $13.88; and WHEREAS, the City desires to establish a 2011/2012 parcel levy of $8.25 per Benefit Assessment Unit to fund the necessary NPDES requirements imposed by the Environmental Protection Agency and Regional Water Quality Control Boards; and WHEREAS, Section 5(a) of Article XIIID of the California Constitution states that existing assessments on the effective date of Article XIIID imposed exclusively to finance the capital costs or maintenance and operation expenses, flood control and drainage systems are exempt from the provisions of Article XIIID; and WHEREAS, Section 5(a) of Article XIIID of the California Constitution also states that future increases to an exempt assessment are subject to the provisions of Article XIIID; and WHEREAS, the proposed changes to the annual assessment do not exceed the maximum assessment and does not constitute an increase in assessment for purposes of Article XIIID. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMIE AND ORDER AS FOLLOWS: SECTION 1. The above recitals are true and correct. AGENDA ITEM NO. 6 PAGE 5 OF 7 CC Resolution No. 2011- L Page 2 of 3 SECTION 2. That the City of Lake Elsinore requests that the County of Riverside levy a 2011/2012 parcel charge in the amount of $8.25 per Benefit Assessment Unit. SECTION 3. That the City of Lake Elsinore continue participation in CSA 152. SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and the same shall thereupon take effect and be in force. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this _n, day of 2011. AMY BHUTTA, MAYOR CITY OF LAKE ELSINORE ATTEST: VIRGINIA J. BLOOM CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD, CITY ATTORNEY AGENDA ITEM N0. PAGE _0F_ CC Resolution No. 2011-J 1 S Page 3 of 3 STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF LAKE ELSINORE )SS I, VIRGINIA J BLOOM, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2011- _ was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the _th day of 2011, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: VIRGINIA J. BLOOM CITY CLERK [40ENDA ITEM NO. b___- PAGE___2___OF ?