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Home My WebLink AboutID# 14-498 Resolution County Service Are 152 & Setting Benefit Assesment Unit Rate FY 2015-16 for City to Fund City's NPDES Permit Compliance ActivitesLEII -L � ~LSIN01UL REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GRANT YATES CITY MANAGER DATE: MARCH 24, 2015 SUBJECT: RESOLUTION REGARDING COUNTY SERVICE AREA 152 AND SETTING THE BENEFIT ASSESSMENT UNIT RATE FOR FISCAL YEAR 2015 -2016 FOR THE CITY OF LAKE ELSINORE TO FUND THE CITY'S NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT COMPLIANCE ACTIVITIES Recommendations 1. Adopt Resolution No. 2015 - County Service Area 152. Background setting the benefit assessment unit rate for The NPDES program originates from the Federal Clean Water Acts and the 1969 State of California Porter - Cologne Water Quality Control Act. The State Water Resources Control Board establishes the regulations that govern activities to improve water quality statewide. The governance takes the form of Permits for stormwater discharge; the Permits mandate activities, which if not performed place the Permittee at risk for substantial penalties. The City together with other local agencies is covered by the Permit referred to as the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit. To fund the costs of the mandated activities, the County of Riverside established County Service Area ( "CSA ") 152. In 1994, the County of Riverside annexed the City of Lake Elsinore into CSA 152. Enabling the City to impose a charge on individual parcels within City limits that contain a structure. Each parcel is assigned a certain number of "benefit assessment units" or "BAU." For instance, a single family home is assigned one BAU, commercial property is assigned 12 BAUs per acre. AGENDA ITEM NO. Resolution — County Service Area 152 — Approval of Fiscal Year 2015 -2016 Levy March 24, 2015 Page 2 At the time of annexation, the City established the rate at $13.88 per BAU. Subsequently, the rate has fluctuated from a low of $6.24 per BAU to the current rate of $8.24 per BAU. The current charge is $8.24 per BAU. This has been adequate for several years to meet the fiscal program demands of the City. However, due to increasing requirements of the MS4 Permit and rising costs of mandated activities staff is proposing an adjustment in the rate. Discussion With neither the State nor Federal governments providing funding for the activities mandated by the NPDES Permit, the requirements appear to constitute an unfunded mandate and as such would merit State funding, however, due to language in the Permit, the City is required to seek and secure funding: II.B.10. This Order does not constitute an unfunded mandate subject to subvention under Article XIII.B, Section (6) of the California Constitution for several reasons including the following: c. The Permittees have the authority to levy service charges, fees, or assessments to pay for compliance with this Order. To ensure compliance with the NPDES MS4 Permit the City must perform the required activities. The Fiscal Year 2015 -2016 NPDES program budget is estimate at $436,711. These funds are used to cover mandated activities that include: staff administrative costs, electronic program database, GIS mapping and program tracking, maintenance of storm drains, catch basins, purchase and maintenance of equipment, inter - agency program cost shares, in lake water quality monitoring, and inspection of residential, commercial, industrial and construction sites in the City. Current CSA revenues are insufficient to cover the increasing cost of required activities. Activities which grow in scope every year. For the current Fiscal Year, 15,383 properties in the City of Lake Elsinore are listed for CSA 152 assessment and would generate $221,951 at the existing rate. The projected operating deficit of $214,760 will be covered using a balance of unused CSA 152 monies (approximately $300,000) from prior years. If not for the unused fund balance, the General Fund would bear the entire program budget deficit of $214,760. With the depletion of the CSA 152 unused fund balance, Staff is recommending the City Council approve an adjustment in the BAU rate from $8.24 to $13.88 in Fiscal Year 2015- 2016. This will start the process of bringing the BAU into line with actual program compliance costs, while reducing the program reliance on the General Fund. Resolution — County Service Area 152 —Approval of Fiscal Year 2015 -2016 Levy March 24, 2015 Page 3 Fiscal Impact No negative fiscal impact. The BALI rate increase to $13.88 will generate an additional $137,206 in program revenue for FY 15 -16. Prepared by: Jason Simpson Director of Administrative Services Approved by: Grant Yates City Manager Attachments: Resolution No. 2015- RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, MAINTAINING COUNTY SERVICE AREA 152 AND AUTHORIZING THE BENEFIT ASSESSMENT UNIT RATE FOR FISCAL YEAR 2015 -2016 FOR THE CITY OF LAKE ELSINORE TO FUND THE CITY'S NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT PROGRAM WHEREAS, the County of Riverside established a Community Service Area, (CSA) 152, for the purpose of collecting parcel charges for National Pollutant Discharge Elimination System ( "NPDES ") services within its boundaries; and WHEREAS, the County of Riverside annexed the City of Lake Elsinore into CSA 152 in 1994, thereby providing the City a funding source for its NPDES program activities; and WHEREAS, the City has determined that the proposed CSA 152 parcel charge is a benefit assessment; and WHEREAS, the existing parcel charge is $8.24 per Benefit Assessment Unit; and WHEREAS, the City desires to adjust the 2015 -2016 parcel charge rate to $13.88 per Benefit Assessment Unit to continue to fund the activities mandated by the Environmental Protection Agency and State Water Resources Control Board through the NPDES Permits; 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 established in 1994 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, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. That the City of Lake Elsinore continue participation in CSA 152. City Council Resolution No. 2015 - Page 2 of 3 SECTION 3. That the City of Lake Elsinore requests that the County of Riverside levy for 2015 -2016 a parcel charge in the amount of $13.88 per Benefit Assessment Unit. 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 24th day of March 2015. STEVE MANOS, MAYOR CITY OF LAKE ELSINORE ATTEST: VIRGINIA BLOOM CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD CITY ATTORNEY City Council Resolution No. 2015 - Page 3 of 3 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, VIRGINIA BLOOM, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2015- was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 24th day of March 2015, and that the same was adopted by the following vote: AYES: NOES: VIRGINIA BLOOM CITY CLERK