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HomeMy WebLinkAboutItem No. 07 Reso County Service Area 152 Benefit Assess Unit Rate FY 21-22City Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 21-053 Agenda Date: 2/9/2021 Status: Approval FinalVersion: 1 File Type: Council Consent Calendar In Control: City Council / Successor Agency Agenda Number: 7) Resolution regarding County Service Area 152 and setting the Benefit Assessment Unit Rate for Fiscal Year 2021-22 for the City of Lake Elsinore to fund the City's National Pollutant Discharge Elimination System (NPDES) Permit Compliance Activities. 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 2021-21 FOR THE CITY OF LAKE ELSINORE TO FUND THE CITY'S NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT PROGRAM. Page 1 City of Lake Elsinore Printed on 2/4/2021 REPORT 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 9, 2021 Subject: Resolution Regarding County Service Area 152 and Setting the Benefit Assessment Unit Rate for Fiscal Year 2021-22 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 2021-22 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 9, 2021 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 2021-22 NPDES funded program budget is estimated at $800,000. 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, 18,060 properties in the City of Lake Elsinore are listed for CSA 152 assessment and would generate $395,000 at the existing rate. There is a carryover balance held by the County which will bring our FY 2021-22 NPDES budget to $800,000. This budget reflects the following: 1. Cleanout of storm drain facilities and storm water treatment facilities by two dedicated City staff with the vac truck $300,000 2. Staff Administrative costs $25,000 3. Mandated activities** $475,000 Total $800,000 **(includes implementation and maintenance of electronic database, GIS mapping, storm drains, catch basins, maintenance equipment, inter-agency program cost shares, lake water quality monitoring, public education, and inspection of residential, commercial, industrial and construction sites in the City. Additional unfunded NPDES activities include catch basin maintenance, water quality facility inspection, and maintenance. These activities are currently covered by the General Fund and will use reserves at the County until depleted. Fiscal Impact No negative fiscal impact Exhibit A - Resolution RESOLUTION NO. 2021- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNI A, M AINT AI NING COUNTY SERVICE ARE A 152 AND AUTHORIZING THE BENEFIT ASSESSMENT UNIT RATE FOR FISCAL YEAR 2021-22 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 f unding source f or 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 $13.88 per Benefit Assessment Unit; and Whereas, the City desires to keep the 2020-21 parcel charge rate at $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 Calif ornia 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, DECL ARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. That the City of Lake Elsinore continues participation in CSA 152. Section 3. That the City of Lake Elsinore requests that the County of Riverside levy for 2021- 22 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 eff ect and be in force. Passed and Adopted this 9th day of February, 2021. Robert E. Magee, Mayor Attest: Candice Alvarez, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2021- ____was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 9th day of February 2021, and that the same was adopted by the f ollowing vote: AYES: NOES: ABSENT: ABSTAIN: Candice Alvarez, MMC City Clerk