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HomeMy WebLinkAbout0012_1_CSA 152 - SRREPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared by: Jason Simpson, Assistant City Manager Date:February 14, 2017 Subject: County Service Area 152, setting the Benefit Assessment Unit Rate for Fiscal Year 2017-18 for the City of Lake Elsinore to Fund the City’s National Pollutant Discharge Elimination System (NPDES) Permit Compliance Activities Recommendation adopt A 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 2017-18 FOR THE CITY OF LAKE ELSINORE TO FUND THE CITY’S NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT PROGRAM Background 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 storm water 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. 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 $13.88 per BAU. The current charge is $13.88 per BAU. County Service Area 152 February 14, 2017 Page 2 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 2017-18 NPDES program budget is estimate at $457,300. These funds are used to cover staff administrative costs and mandated activities that include implementation and maintenance of electronic database, GIS mapping, maintenance of storm drains, catch basins, maintenance equipment, inter-agency program cost shares, in lake water quality monitoring, public education, 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, 16,520 properties in the City of Lake Elsinore are listed for CSA 152 assessment and would generate $364,000 at the existing rate. The projected operating deficit of $68,475 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 $93,300. Fiscal Impact No negative fiscal impact. Exhibit A Resolution