Insured: Completed By:
Policy #: Date:
Underwriting Co:
Claim #:
Eff. Dates:
Date of Loss:
Loss Location:
FTN2182001H
7/1/2023 TO 7/1/2024
11/22/2023
7860 WESTERN AVENUE, BUENA PARK, CA 90620
Bern Bounsom
1/16/2024
Statement of Loss
CALIFORNIA INSURANCE POOL
KTJCMB 0L597228
TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA
Policy Limit: 25,000,000.00 Sub Limits:
Deductible:
Insured Submitted
Claimed/Incurred RCV Deprec. Amount ACV PAYABLE
0.00 0.00 0.00
$0.00 $0.00 $0.00 $0.00 $0.00
Replacement Cost Claim $0.00 $0.00
<Less Deductible > - $0.00 $0.00
Maximum Claim Payable $0.00 $0.00
$0.00
Totals
Current Claim Payable
<Less Deductible> -
<Less Payments> -
Net Loss and Payable
Item Description Comments/Source
Travelers Calculated
Coinsurance %:
Coverage: Business Personal Property
Insured: Completed By:
Policy #: Date:
Underwriting Co:
Claim #:
Eff. Dates:
Date of Loss:
Loss Location:
FTN2182001H
7/1/2023 TO 7/1/2024
11/22/2023
7860 WESTERN AVENUE, BUENA PARK, CA 90620
Bern Bounsom
1/16/2024
Statement of Loss
CALIFORNIA INSURANCE POOL
KTJCMB 0L597228
TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA
Policy Limit: Sub Limits:
Deductible:
Insured Submitted
Claimed/Incurred Loss Waiting Period PAYABLE
Totals $0.00 $0.00 $0.00 $0.00
$0.00
$0.00
$0.00
$0.00
<Less Payments> -
Net Loss and Payable
Comments/Source
Current Claim Payable
<Less Deductible> -
Item Description
Travelers Calculated
Period of Restoration:
Coinsurance %:
Coverage: Business Income & Extra Expense
City of Buena Park
City Council Regular Meeting Agenda Report
RESOLUTION AUTHORIZING THE USE OF INFORMAL BIDDING PROCEDURES AND APPROVE CONTRACT WITH TIM GREENLEAF ENGINEERING, INC. FOR THE DEMOLITION OF SEVERAL CITY-OWNED PROPERTIES ALONG BEACH
BOULEVARD
Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
NEW BUSINESS Item: 5E
Presented By
Mina Mikhael, P.E., Director of Public Works/City Engineer Prepared By
Mina Mikhael, Director of Public Works/City Engineer
Approved By
Aaron France, City Manager
RECOMMENDED ACTION
1) Adopt a Resolution authorizing the use of informal bidding procedures to identify contractors to complete the subject work; 2) Approve a contract with Tim Greenleaf Engineering, Inc. for the demolition of several city-owned properties along Beach Boulevard; 3) Authorize the City Manager and City Attorney to make any necessary, non-monetary changes to the contract; 4) Authorize the City Manager and City Clerk to execute the contract; 5) Determine that dispensing with the competitive bidding pursuant to Municipal Code Section 3.28.110 is in the best interest of the City due to safety and public nuisance-like conditions; and, 6) Authorize a budget appropriation in the amount of $240,000 from the undesignated Economic Development Fund balance.
DISCUSSION
There are three city-owned properties along Beach Boulevard, north of La Palma Avenue. Properties 7711 and 7733 Beach Boulevard are located on the west side of Beach Boulevard, approximately 260 feet south of El Captain Way. These properties formerly comprised of The Movieland Wax Museum and Starbucks Coffee. Both these businesses closed down permanently and are in the process of redevelopment. In 2015, the city approved plans to convert the Movieland property into a Butterfly Palladium. The following year, the main Movieland Wax Museum building was torn down to make way for retail space. As of 2019, the construction on the retail space has been stalled. These buildings remain vacant despite the businesses closing down. However, the buildings were well-secured and the fire water system remained operational at all times to provide the necessary water needed to fight any potential fires. In the recent past, transients have been breaking into the buildings, camping inside, taking showers and creating safety concerns. This has become a recurrent problem leading to public nuisance-like conditions.
The property on 7860 Western Avenue is located off of Western Avenue, west of Beach Boulevard. This property, known as the Hurlbut Barn, was the workshop for thrill-ride pioneer Bud Hurlbut, the man who designed several attractions for Knott's Berry Farm. Knott's sold the the property to the City more than a decade ago. It has remained uninhabited and well-secured by the City. However, there have been recurrent incidences of transients breaking into the property to camp. On one recent occasion, a fire broke out in the building. The Orange County Fire Authority firefighters battled the blaze that destroyed the vacant two-story barn and burnt down one-third of the property which remains in a general state of disrepair.
Attachments
Resolution Waiving Formal Bidding.pdf
Est_16773_from_Tim_Greenleaf_Engineering_Inc._15320.pdf Est_16774_from_Tim_Greenleaf_Engineering_Inc._15320.pdf In response to these incidents and in the best interest of public safety, staff explored options for the immediate demolition of the improvements on all three properties by reaching out to demolition contractors to obtain quotes for the subject work.
For the properties 7711 and 7733 Beach Boulevard, Tim Greenleaf Engineering, Inc. ("Contractor" responded with a quote of $108,501.48 to perform the work that would include demolishing the existing Starbucks building in addition to demolition and removal of the foundation, and demolishing/removing the existing concrete masonry unit (CMU) building. Similarly, for the property at 7860 Western Avenue, the Contractor responded with a quote of $104,132.82 to perform the work that included asbestos abatement, demolition/disposal of existing fire damaged structure, and demolition and removal of existing slab/foundation. This Contractor possesses the required license and has completed similar projects for other cities and is ready and able to perform the work upon issuance of a notice to proceed by the City.
Because the total cost of the work exceeds $100,000, Section 3.28.110 the Buena Park Municipal Code generally provides for the Contractor to be selected through a formal bidding process and awarded to the lowest, responsible bidder. However, that same section allows the City Council to adopt a resolution authorizing the Director of Public Works to use alternative project delivery and bid procedures for a particular project. Staff respectfully recommends and requests that the City Council adopt such a Resolution allowing the Public Works Director to select and award the contract by the informal bidding procedures specified in Section 3.28.100 of the Municipal Code. As noted above, staff has already solicited informal bids from area contractors and believes that the proposal from Tim Greenleaf Engineering is the most competitive. The total cost of the project is reasonable based on staff's expertise and the other proposals received, and delays associated with formal bidding procedures would allow the nuisance-like conditions on the properties to continue.
Staff recommends the City Council adopt the Resolution attached waiving formal bidding and proceed with awarding the contract to Tim Greenleaf Engineering, Inc. in the amount of $212, 634.30 with contingency funds in the amount of $27,365.70.
This report has been reviewed and approved by the Purchasing Manager.
BUDGET IMPACT
The total cost of the project is in the amount of $240,000, as shown below:
Construction Contract: $212,634.30
Construction Contingency: $27,365.70
Total Project Cost: $240,000
The project will be funded 50% by the the Economic Development Fund (12-6240-632110) and 50% by Insurance proceedings. Staff recommends a budget appropriation in the amount of $240,000 from the undesignated Economic Development Fund balance (12-6240-632110). A total of $120,000 will be reimbursed from insurance proceeds once received.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF BU ENA
PARK, CALIFORNIA, WAIVING FORMAL BIDDING AND APPROVING
THE SELECTION OF A DEMOLITION CONTRACTOR BY
ALTERNATIVE BIDDING PROCEDURES
WHEREAS , the City owns certain parcels of real property lo cated at 711-7733 Beach Boulevard and 7860 Beach Boulevard, City of Buena Park, California, each of which are improved with buildings, structures, and other improvements that are either partially constructed, have been damaged by fire or weather, and/or are in a general state of disrepair and structural unsoundness such that they present safety hazard and a passive and attractive public nuisance;
WHEREAS , the City Council finds and declares that there is a present need to demolish these improvements on the subject properties, and that the public interest is best served by avoiding delays associated with the formal bidding process specified in Section 3.28.110 of the Buena Park Municipal Code for awarding of a contract to complete the work; and
WHEREAS, pursuant Section 3.28.110(E) of the Buena Park Muni cipal Code the City Council finds it necessary and appropriate to autho rize the use of alternative bidding procedures to identify a contractor to complete the work.
NOW, THEREFORE, IT IS RESOLVED BY THE CITY COUNCIL FOR THE CITY OF BUENA PARK AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and in corporated as substantive findings into this resolution.
SECTION 2. The City Council hereby authorizes the use of info rmal bidding procedures set forth in Section 3.28.100 of the Buena Park Mun icipal Code to identify and award a contract to complete demolition of the subject properties. T he Director of Public Works is authorized and directed to solicit informal proposals from contractors to perform the subject work and to present the proposed project cost and contract award for the City Council’s consideration and approval.
SECTION 3. This Resolution shall become effective immediately , and the City Clerk shall certify to its approval.
PASSED, APPROVED and ADOPTED this ___th day of February __, 2024.
AYES: CITY COUNCILMEMBERS:
NOES: CITY COUNCILMEMBERS:
ABSENT: CITY COUNCILMEMBERS:
ABSTAIN: CITY COUNCILMEMBERS:
______________________________________
Mayor
ATTEST:
_______________________________
City Clerk
I, Adria M. Jimenez, MMC, City Clerk of the City o f Buena Park, California, do hereby certify that the foregoing resolution was duly and regularly passed and adopted at a regular meeting of the City Council for the City of Buena Park held on the ____ day of February 2024.
______________________________________
City Clerk
ESTIMATE
Date
1/22/2024
Contractor
City of Buena Park
Project Location
7860 Western Ave
Buena Park, CA
Area A - Barn
Tim Greenleaf Engineering, Inc.
Office 714-847-2700 Fax 714-847-2733
License #789510
18685 Main St., Suite A-371
Huntington Beach, Ca 92648
Contractor/Owner _____________________________________
Tim Greenleaf Eng. _____________________________________ Total
Description Total
*This bid includes prevailing wage rates and city insurance requirements* Tim Greenleaf Engineering proposes to furnish all labor, supervision, material, tools, equipment, rentals and disposal to perform the following work in a good workmanlike and substantial manner. Tim Greenleaf Engineering to perform work in compliance with all City, State, and Federal Regulations. No work to be performed until all utilities have been disconnected and removed by owner. All resulting debris will be disposed of at a class 3 landfill or transported to a recycle facility. Tim Greenleaf Engineering retains all salvage rights. Proposal is good for 45 days. Price is based on self-hauling of materials generated from this site. Demolition is to be performed with one mobilization unless otherwise noted.
Provide procedure 5 asbestos report
Asbestos abatement as per report provided by SCS Engineers Abatement of asbestos containing vinyl floor tile and associated mastic (not to exceed 1,250 sf) Abatement of asbestos containing roof mastic (not to exceed 20 sf) 14,850.00
Demolition and disposal of existing single story fire damaged structures small trees adjacent to building, clean and vacant slab foundation.
53,337.00
*Concrete, asphalt, foundation and large trees to remain* Demo and remove existing slab and foundation 33,904.00
Bond 2% 2,041.82
$104,132.82
ESTIMATE
Date
1/22/2024
Contractor
City of Buena Park
Project Location
7711 Beach Blvd,
Buena Park, CA 90620
Area B - Optional
Tim Greenleaf Engineering, Inc.
Office 714-847-2700 Fax 714-847-2733
License #789510
18685 Main St., Suite A-371
Huntington Beach, Ca 92648
Contractor/Owner _____________________________________
Tim Greenleaf Eng. _____________________________________ Total
Description Total
* Bid includes prevailing wage rates and city insurance requirements * Area A
Demo and remove offsite existing CMU walls and vertical structure. 74,187.00 Area B
Demo and remove existing building including slab, foundation. 32,187.00 Bond 2% 2,127.48
ADD ALT #1
Demo and remove new foundation to 6 feet below existing grade. $37,197.00
ADD ALT #2
Clear and grub all vegetation and trees. Demo and remove existing sidewalk and all concrete. $41,887.00
$108,501.48
City of Buena Park
City Council Regular Meeting Agenda Report
APPROVE A BUDGET AMENDMENT TO INCREASE FUNDING FOR THE SISTER CITY PROGRAM AND EXPLORE A
FRIENDSHIP CITY RELATIONSHIP WITH ANSAN, SOUTH KOREA
Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
NEW BUSINESS Item: 5F
Presented By
Eddie Fenton, Assistant City Manager
Prepared By
Eddie Fenton, Assistant City Manager/Director of Human Resources Approved By
Aaron France, City Manager
RECOMMENDED ACTION
Approve a budget amendment in the amount of $15,000 from the undesignated General Fund reserve balance to allocate additional funding for the Sister City and Friendship City trip to South Korea.
PREVIOUS CITY COUNCIL ACTION
At the January 9, 2024, study session, the City Council directed staff to move forward with planning a Sister City and Friendship City visit to South Korea in March 2024.
DISCUSSION
On January 9, 2024, the City Council received a report about an invitation to visit Seoungbuk-Gu, South Korea, in March 2024. The City Council approved the dates of March 16 – 23, 2024, as the next trip for the delegation from Buena Park to visit South Korea. The City Council also approved a delegation that would include the Mayor, Vice Mayor, Assistant City Manager, Director of Government and Community Relations/City Clerk, approximately eight high school students from Buena Park High School, two Buena Park High School administrators/chaperones, and members of the Buena Park Sister City Foundation. There is approximately $15,000 budgeted in the FY 23-24 General Fund budget for this purpose. However, this amount is inadequate to support two reciprocal visits to and from South Korea. In the past, the visiting City was responsible for airfare to the host City. Once there, the host City typically provides all other accommodations for the delegation, which includes hotel, meals, and transportation. The City last hosted a delegation from Seongbuk-Gu in March 2023. Due to expenses incurred during the last delegation visit and future cost estimates for reciprocal visits, staff recommends increasing the budget to $30,000 to accommodate both hosting and visiting each year.
In addition, the City was approached by the City of Ansan, South Korea, about forming a Friendship City relationship. A Friendship City is a less formal and more flexible relationship between two cities. Both sister cities and friendship cities may be similar in terms of cultural exchange and cooperation, but the level of commitment and formality is typically lower. Both programs aim to foster positive connections and understanding between communities.
Ansan is a city in the Gyeonggi Province of South Korea. It lies south of Seoul, near the Yellow Sea, and is part of the Seoul National Capital Area. The population of Ansan is over 728,000. Ansan is an industrial and economic city where about 11,300 companies are running in Ansan’s Smart Hub, which is an industrial complex. This investment in technology makes Ansan the leading reformer in Industry 4.0, which is the latest phase in the digitalization of the manufacturing sector that integrate digital technologies into the manufacturing and industrial processes. In addition, Ansan is a city of culture and vibrant art rooted in the pride of its ancestors.
With City Council direction and approval, the Mayor, Vice Mayor, and Director of Community and Government Relations/City Clerk desire to travel on March 13, 2024, in order to visit Ansan and meet with Ansan representatives to discuss pursuing and potentially forming a Friendship City. City staff may focus discussions on mutual interests, such as business investment, technology advancements, tourism, and educational exchanges. Furthermore, staff would like to meet with Seongbuk-gu and Ansan representatives about a joint project in the recently proposed Friendship Park (currently Smith-Murphy Park) that may include a Korean pagoda and other Korean traditional cultural, art, and educational pieces.
BUDGET IMPACT
The Sister City and Friendship City Program typically consists of two trips: one to Buena Park and the other to South Korea.
To continue with the program, the current funding levels of $15,000 annually will not be sufficient. Historically, Buena Park has provided a modest amount of time and financial resources, while the Sister City has placed a higher priority on the relationship and higher level of attention and economic investment into the relationship. This relationship creates a situation where reciprocation is expected and difficult to avoid. Therefore, staff recommends that the City Council appropriate funds in the amount of $15,000 from the undesignated General Fund reserve to allocate additional funding for the Sister City/Friendship City programs for expenses related to meetings, meals, airfare, transportation, and cultural gift exchanges.
City of Buena Park
City Council Regular Meeting Agenda Report
RESOLUTION AND ORDINANCES ADOPTING THE GENERAL PLAN AMENDMENT NO. GP-24-1, ZONE CHANGE NO.
Z-24-2, SPECIFIC PLAN AMENDMENT NO. SPC-24-1, TEXT AMENDMENT NO. C-24-1 AND NEGATIVE DECLARATION NO. MND-24-1 TO IMPLEMENT THE HOUSING INCENTIVE OVERLAY ZONES AND ADOPT OBJECTIVE DESIGN AND
DEVELOPMENT STANDARDS
UPDATING THE GENERAL PLAN LAND USE MAP, ZONING MAP, SPECIFIC PLANS, AND CREATING OBJECTIVE DESIGN AND DEVELOPMENT STANDARDS REGULATING HOUSING INCENTIVE OVERLAYS TO IMPLEMENT HOUSING ELEMENT PROGRAMS NO. 11, 12, AND 16 Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
PUBLIC HEARING Item: 6A
Presented By
Swati Meshram, PhD. AICP, Planning Manager
Prepared By
Swati Meshram, Planning Manager
Approved By
Aaron France, City Manager
RECOMMENDED ACTION
1) Based on the analysis provided in this agenda report and the facts and findings provided in the attached Resolution and Ordinances, staff recommends that the City Council adopt the attached Resolutions and Ordinances approving General Plan Amendment (GP-24-1), Zone Change (Z-24-2), Specific Plan Amendment (SPC-24-1), Text Amendment (C-24-1) and Negative Declaration (MND-24-1).
PREVIOUS CITY COUNCIL ACTION
The 6th Cycle Housing Element Update (HEU) was approved by the City Council on January 25, 2022.
DISCUSSION
On November 18, 2022, the City received a letter from the California Department of Housing and Community Development (HCD) finding that the adopted HEU met most of the statutory requirements for certification. However, HCD would not formally certify the Housing Element until the City completed the General Plan Land Use Map and Zoning Map amendments to address the shortfall of housing sites to accommodate the Regional Housing Needs Allocation (RHNA) pursuant to Assembly Bill 1398.
To obtain HCD certification, and as part of the implementation strategy for several Housing Element Programs, the City initiated General Plan and Zoning Code updates that will occur in two phases. The first phase, and the subject of the above- referenced applications, are to amend the General Plan Land Use Map and Zoning Map for those properties identified in the sites inventory of the HEU; create five new Housing Incentive Overlay zones (HIO) and associated development standards, and update the existing Housing Opportunities Overlay (HOO) zone to increase permitted density. The second phase, scheduled for later this year, will update the Zoning Code related to Single-Family and Multi-Family Residential Zones and create objective development standards for the other mixed-use zones referenced in the Land Use and Community Design Element of the General Plan.
To accommodate the City’s assigned RHNA allocation, the 2021-2029 Housing Element identified 410 parcels, mostly within commercial corridors of the City, where there is an opportunity to redevelop properties with denser residential or mixed-use developments. While the City Council approved the Housing Element sites inventory and the densities allowed on those parcels in 2022, additional actions are required to amend the Community Design and Land Use Element, Zoning Code and Specific Plans to implement the overlay zones and densities described in the HEU. The RHNA sites inventory identified at total of 410 parcels. Ninety-five (95) parcels do not require a General Plan land use change, zone change, or HIO designation as they are currently underutilized residential lots that are either vacant or developed at a density less than the maximum density permitted. Of the remaining 315 parcels, 60 parcels are currently designated with the Housing Opportunities Overlay (HOO) within the General Plan. The base density of the HOO will increase from the current 30 dwelling units per acre ("du/ac") to the proposed 50 du/ac. The remaining 255 parcels are proposed for the HIO, Zone Change, and General Plan Land Use designation amendments, specifically:
a.The Mixed-Use Overlay 45 designation (MUO-45) will apply to 107 parcels. b.The Mixed-Use Overlay 60 designation (MUO-60) will apply to 112 parcels. c.The Mixed-Use Overlay 100 designation (MUO-100) will apply to 13 parcels. d.The Hotel/Motel Conversion Overlay designation will apply to 3 parcels. e.The Religious Congregational and Fraternal Overlay designation will apply to 17 parcels.
General Plan Land Use Map, Zoning Map and Specific Plan Map amendments The proposed map amendments are required for the 2021-2029 Housing Element Update certification by HCD, and are consistent with the adopted Housing Element implementation strategies (Programs 8, 11, and 16) because they will implement the land use designation and zoning for the parcels identified in the Site’s Inventory analysis at the densities stated. The proposed densities and minimum affordability requirements are also consistent with those identified in Program 11 (Adequate Sites to Accommodate the RHNA) and Monitoring of No Net Loss, of the Housing Element Update.
Attachments 1 and 2 depict the existing General Plan Land Use Map and Zoning Map and Attachments 3 and 4 depict the proposed General Plan Land Use Map and Zoning Map.
Objective Design and Development Standards (ODDS)
New zoning standards are needed to regulate the development that will occur pursuant to the newly created overlay zones.
The proposed Objective Design and Development Standards will establish basic development standards, such as:
• Building Envelope: Lot Size, Height, Lot Coverage, Setbacks and Step backs • Site Design & Massing: Transitions from Adjacent Properties, Maximum Building Length, Orientation, Parking Type and Location
• Building Design & Articulation: Building Frontage Types, Ground Floor, Entries, Façade/Plane Break, Roof Forms, Open Space, and Building Type
Amend the General Plan Land Use Map to include five (5) new Housing Incentive Overlay zones.
Two parcels will have a General Plan Land Use designation change from Medium Density Residential and Open Space to High-Density Residential. The Housing Opportunities Overlay will be applied to 1 parcel. The allowable density in the Housing Opportunities Overlay will increase from 30 du/ac to the proposed 50 du/ac.
Amended the Zoning Map to include six (6) new Housing Incentive Overlays and change the zoning of one parcel will from Open Space to RM-20.
Amend the Auto Center Specific Plan (ACSP) to include Mixed Use Overlay-45 du/ac and Mixed Use Overlay-60 du/ac on specified parcels.
Amend the Entertainment Corridor Specific Plan (ECSP) to include Mixed Use Overlay-45 du/ac on specified parcels.
Adopt new Objective Design and Development Standards (ODDS) to regulate development within the Housing Incentive Overlay (HIO) zones.
• Building & Landscape Details: Materials, Color, Awnings, Screening and Fencing, Exterior Lighting, Signage, and Landscaping
• Architectural Styles: Craftsman, Spanish Colonial, Farmhouse, Tuscan, Mediterranean and Modern To facilitate expedited review and to comply with state laws, all proposed development standards must be ‘objective’ meaning that they are written in a way so as to remove subjective judgement or discretion by the City, developer or applicant. The removal of subjectivity also means that no public hearing is required for projects that comply with the HIO and ODDS. Other notable aspects of the ODDS include:
i. At least 8% of the proposed housing units are restricted to very-low-income residents. ii.At least 20% of housing units are restricted to low-income residents. iii. At least 40% of housing units are restricted to moderate-income residents. iv.The developer may request that the project include affordable units that are targeted to a mix of income levels (moderate, low and very-low), as long as at least 20% of housing units are restricted to low-income residents. i. The maximum building height adjacent to an existing residential use or zone is limited to 4-stories or 45-feet. ii. A decorative masonry wall 6-feet in height is required to be constructed along any common property line between any adjoining property containing a single-family use. iii. A row of trees at least 10-feet in width shall be located adjacent to all buildings that abut a single-family or industrial property.
iv. Standards in place for daylight plane encroachment on lots adjacent to an existing single-family or multifamily residential dwelling of two stories or less.
iv. Windows facing residences within 15-feet of the property line shall be arranged, or designed to not create views into adjacent residences.
v. An additional 10-foot building setback is required when the parcel is adjacent to any single-family residential zone.
As proposed, ODDS complies with and implements the following Housing Element programs:
The ODDS only applies to development activity that is proposing to take advantage of the uses and densities permitted in the Overlay Zone. The parcel may still be developed (or redeveloped) pursuant to the parcels underlying zoning if the development is not relying on the overlays for said development.
A mix of uses is allowed and encouraged, specifically neighborhood serving commercial uses and live/work as this reduces vehicle miles traveled.
Housing Incentive Overlay zones have a minimum density of 20 du/ac, a minimum site area of 0.5 acres, and must accommodate at least 16 units on the site.
Minimum parking requirements for residential uses will not apply to sites located within one-half mile of a major transit stop, as defined in Section 21155 of the Public Resource Code.
Developments taking advantage of the HIO for a proposed development shall provide a percentage of the proposed housing units as deed-restricted (55 years for rental units and equity sharing agreement for 45 years on for-sale units) affordable housing according to one of the following:
To help maintain privacy for existing single-story homes adjacent to proposed residential and mixed-use developments, several standards are proposed, such as:
Program 8: (Affordable Housing Incentives), because affordable housing density bonuses will be consistent with the State Density Bonus law for all the additional affordable housing units provided beyond those affordable units minimally required.
Program 11: (Adequate Sites to Accommodate the RHNA and Monitoring of No Net Loss), because the ODDS create development standards to regulate the future development within the sites, overlays, and densities identified within this program.
Program 12: (Provision of Adequate Sites By-Right Approval for Projects with 20 Percent Affordable Units), because it provides a path for by-right approval for projects with 20 percent affordable unit requirement.
Community Outreach
In addition to the extensive community outreach conducted as part of the 2021-2029 Housing Element Update, the following additional engagement strategies were utilized for the proposed General Plan and Zoning Code amendments:
Environmental Assessment
As required by state law, the City prepared an Initial Study Negative Declaration (IS/ND) for approval of the General Plan Land Use Map, Zoning Map, Specific Plan map amendments, and the Objective Design and Development Standards for the Housing Incentive Overlays. The IS/ND concluded that no significant unavoidable environmental impacts would occur as a result of the proposed project. The IS/ND was made available for public review and comment pursuant to California Code of Regulations. The City accepted responses and comments for 30 days, starting on December 20, 2023 to January 22, 2024.
Two comments were received from the California Department of Transporation (Caltrans) and the Orange County Transit Authority (OCTA). Response letters were prepared and included in the final draft of the IS/ND. The Phase two amendments to the Land Use and Community Design Element and Residential Zoning Code will be analyzed in a forthcoming Focused Environmental Impact Report (FEIR) with accompanying technical studies that analyze any potential impacts to the environment. Development projects proposed prior to the FEIR may be required to complete a stand-alone CEQA analysis specific to the project proposed.
PUBLIC HEARING NOTICE
Notice of public hearing was posted at City Hall, the Buena Park Library, and Ehlers Event Center on February 1, 2024. A notice of the public hearing was also published in the Buena Park-Anaheim Independent on February 2, 2024.
Program 14: (Special Needs Housing), because it establishes transitional and supportive housing a residential use of property subject only to those restrictions that apply to other residential dwellings of the same type in the same zone, as well as allows supportive housing as a use by right in all zones where multi-family and mixed uses are permitted (in compliance with AB 2162). Additionally, removes minimum parking requirements for units occupied by supportive housing residents if the development is located within one-half mile of a public transit stop in accordance with state law.
Program 16: (Streamline Entitlement and Permit Processing), because it develops objective design standards for multifamily and mixed-use residential developments in compliance with state law; develops an administrative procedure for request to modify design and development standards as necessary to ensure feasibility of densities identified in the sites inventory.
Program 17: (Lot Consolidation), because it provides lot consolidation incentives to facilitate mixed-use development.
A Community Survey was conducted from early May to late June 2022, that included 74 responses from a diverse mix of community members, including homeowners, renters, business owners, and property owners.
The City hosted one virtual community workshop in May 2022, in tandem with the survey to engage community members. The workshop introduced the project, setting the stage for future collaborative discussions.
The City conducted seven (7) group stakeholder interviews in late May 2022. Stakeholder interviews were organized into groups including: realtors, developers, community-based organizations, property owners, Knott’s Berry Farm representatives, and City staff.
A joint City Council/Planning Commission study session was held in May 2022. This session provided a comprehensive overview of the project, and more importantly, allowed for direct feedback on crucial development standards. The discussions covered key aspects such as building height, vision clearance for corner buildings, parking, landscape design, building aesthetics, and environmental concerns.
A public review draft was made available to the public and various agencies on December 20, 2023.
Planning Commission conducted a public hearing on January 24, 2024.
Attachments
1 Existing General Plan Land Use Map
2 Existing Zoning Map
3 Proposed General Plan Land Use Map
4 Proposed Zoning Map
6 Objective Design and Development Standards and Architectural Styles Objective Design Standards 7 Initial Study and Negative Declaration
8 City Council Resolution General Plan Amendment with exhibits GP-24-1 10 City Council Ordinance Specific Plan Amendment SPC-24-1 11 City Council Ordinance Text Amendment C-24-1
12 City Council Resolution Negative Declaration MND-24-1
BUDGET IMPACT
There is no budget impact associated with this item.
ATTACHMENT 6
HOUSING INCENTIVE OVERLAY OBJECTIVE DESIGN AND DEVELOPMENT STANDARDS
https://cms7.revize.com/revize/buenaparkca/Document_center/City%20Departments/Community%20d evelopment/Planning%20Division/Rezoning%20housing%20element%20sites/HIO%20DOCUMENT_Publi c%20Review%20Draft%2001.24.24%20-%20response%20included.pdf
Architectural Styles Objective Design Standards
https://cms7files1.revize.com/buenaparkca/Document_center/City%20Departments/Community%20de velopment/Planning%20Division/Rezoning%20housing%20element%20sites/Architectural%20Design%2 0ODS%20w%20comment.pdf
Please click on the following link or copy and paste the link below in your browser:
FINAL DRAFT OF THE INITIAL STUDY AND NEGATIVE DECLARATION
https://cms7files1.revize.com/buenaparkca/Document_center/City%20Departments/Community%20de velopment/Planning%20Division/Rezoning%20housing%20element%20sites/ISND%20Final_RTC%201.30 .24.pdf
RESOLUTION NO.
GENERAL PLAN AMENDMENT NO. GP-24-1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BUENA
PARK, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT
GP-24-1 AMENDING THE GENERAL PLAN LAND USE AND
COMMUNITY DESIGN ELEMENT TO ESTABLISH AND APPLY FIVE
(5) NEW HOUSING INCENTIVE OVERLAY (HIO) ZONES, CHANGE
THE LAND USE DESIGNATION FROM OPEN SPACE AND LOW-
DENSITY RESIDENTIAL TO HIGH-DENSITY RESIDENTIAL ON TWO
PARCELS, AND INCREASE THE BASE DENSITY OF THE HOUSING
OPPORTUNITIES OVERALY (HOO) FROM 30 DWELLING UNITS PER
ACRE TO 50 DWELLING UNITS PER ACRE WITHIN THE LAND USE
AND COMMUNITY DESIGN ELEMENTS OF THE GENERAL PLAN,
AND MAKING FINDINGS IN SUPPORT THEREOF
A. Recitals.
(i) The City Council of the City of Buena Park adopted the Buen a Park General Plan as required by law on December 7, 2010, through the adoption of Resolution No. 12497. (ii) The City of Buena Park 6th Cycle Housing Element Update (H EU) was approved by the City Council on January 25, 2022. In order for the California Department of Housing and Community Development (HCD) to certify the HEU, the Land Use and Community Design Element and Residential Zoning Code Update need to be ad opted. The applications General Plan Amendment No. GP-24-1, Zone Change No. Z-24-2, Specific Plan Amendment No.
SP-24-1, Text Amendment No. C-24-1, and Mitigated Negative Decl aration No. MND-24-1 implement this program.
(iii) The Planning Commission conducted a duly noticed public hearing, as required by law, to consider General Plan Amendment No. GP-24-1 to update t he General Plan Land Use Map within the Land Use and Community Design Elements for 255 properties (Location identified in Exhibit A, APNs Identified in Exhibit B), create five (5) ne w Housing Incentive Overlay zones, increase the density of the existing Housing Opportunities Overlay from 30 dwelling units per acre to 50 dwelling units per acre, along with a Negative Declaratio n No. MND-24-1, for the Project.
Said public hearing was conducted and concluded on January 24, 2024 and adopted a Resolution No. 6313 recommending that the City Council adopt General Plan Amendment GP-24-1, amending the Land Use and Community Design Element of the General Plan.
(iv) On February 13, 2024 the City Council of the City of Buena Park conducted a duly noticed public hearing as required by law to consider the proposed General Plan Amendment GP- 24-1. Said public hearing was concluded prior to the adoption of this Resolution.
(v) This Resolution shall be submitted for review by the Orange County Airport Land Use Commission for consistency with the Airport Environs Land Use Plan for the Fullerton Municipal Airport.
(vi) All legal prerequisites to the adoption of the Resolution have occurred.
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
B. Resolution.
NOW, THEREFORE, the City Council of the City of Buena Park does hereby find, determine and resolve as follows:
Section 1. The proposed General Plan Amendments are consistent with the goals, policies, purposes, objectives, and programs of the City’s General Plan as set forth in Exhibit C attached hereto and made a part hereto by reference.
Section 2. The proposed General Plan Amendment No. GP-24-1 will promote the orderly development of the City and the public health, safety, and welfare by enhancing and maintaining sound and logical land use and development practices guided by the Land Use and Community Design Elements. The proposed General Plan Amendment does not modify any health and safety regulations. The proposed General Plan Amendment establishes five (5) new overlay zones without changing the under lying land use designation of 253 parcels, changes the land use designation of two (2) parcels from Open Space and Low-Density Residential to High-Density Residential, and increases the density of the existing Housing Opportunities Overlay from 30 dwelling units per acre to 50 dwelling units per acre. This is aligned with the General Plans goal of increasing housing supply citywide.
Section 3. The proposed General Plan Amendment No. GP-24-1 will increase and will not diminish the land available for housing within the City. The proposed General Plan Amendment will create new housing opportunities by facilitating the development of approximately 9,452 residential units, which will increase the City’s housing supply. The amendment will also increase the City’s affordable housing supply.
Section 4. The proposed General Plan Amendment No. GP-24-1 will maintain and improve the viability of the housing stock within the area in a manner consistent with the character of surrounding neighborhoods and will promote the orderly development of the subject property. The proposed General Plan Amendment does not include any changes to existing land use allowances, it creates an overlay, which if relied upon, allows for orderly development in compliance with the Objective Design and Development Standards, concurrently adopted via Text Amendment No. C-24-1.
Section 5. The City Council finds that facts supporting the abo ve-specified finding are contained in the staff report and exhibits, and information provided to this Council during the public hearing conducted with respect to the Project.
Section 6. The City Council has reviewed and considered all con sidered all components of the requested General Plan Amendment No. GP-24-1 including compliance with the California Environmental Quality Act (CEQA) through the preparation of a Negative Declaration No. MND- 24-1 adopted by separate resolution, the City Council has determined that the Negative Declaration is legally adequate and that the Project would not result in any new or substantially more severe environmental impacts than those considered and addressed in the Negative Declaration No. MND-24-1.
Section 7. The City Council of the City of Buena Park hereby a pproves and adopts General Plan Amendment GP-24-1, amending the Land Use and Community Design Element attached hereto as Exhibit “A”.
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Section 8. The City Clerk shall Certify to the adoption of this Resolution.
PASSED AND ADOPTED this 13
th day of 2024 by the following called vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAINED: COUNCILMEMBERS:
____________________________
Mayor
ATTEST:
___________________________
City Clerk
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
EXHIBIT A
Deleted text shown in strikethrough. New text in Bold.
HOUSING OPPORTUNITIES OVERLAY To provide for affordable housing opportunities consistent with the City’s identified remaining housing growth need in the Housing Element and AB 2348, the 2035 General Plan includes a Housing Opportunities Overlay designation. Target sites to increase affordable housing opportunities are included in the overlay. The base density for the overlay designation is 30 50 du/ac.
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Proposed General Plan Land Use Map
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Exhibit B
LIST OF APNs WITH EXISTING AND PROPSED LAND USE DESIGNATIONS
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
EXHIBIT C
General Plan Consistency Findings
The following constitutes findings that the proposed General Plan Amendment is, consistent with the City of Buena Park General Plan (“General Plan”):
Goal LU-1: A complementary balance of land uses throughout the community.
Policy LU-1.1: Establish land use policies that encourage a balance of jobs and housing in Buena Park.
Policy LU-1.2: Ensure future development provides for a variety of commercial, industry, and housing that serve the spectrum of incomes within the region.
Policy LU-1.3: Establish a wide range of residential densities and non- residential intensities to encourage a wide range of development opportunities.
Goal LU-5: Compliance with state and regional housing mandates.
Policy LU-5.1: Ensure Buena Park is in compliance with applicab le state and regional housing mandates.
Policy LU-5.2: Provide for required monitoring of residential development activity.
Policy LU-5.3: Provide for monitoring of state housing legislation to ensure City compliance or to ensure the City’s interest is represented.
Goal LU-6: A housing stock that meets the diverse needs of Buena Park’s e xisting and future residents.
Policy LU-6.1: Provide for housing opportunities that address t he needs of those who currently live or desire to live in Buena Park.
Policy LU-6.2: Preserve and enhance existing, viable single-fam ily residential neighborhoods by prohibiting the intrusion of incompatible uses.
Policy LU-6.3: Locate affordable housing adjacent to jobs, retail, schools, open space, and public transportation.
Policy LU-6.5: Encourage integration of residential uses within mixed-use development.
Policy LU-6.6: Provide a wide range of housing options for Buena Park residents, including owner and rental housing adjacent to jobs, shopping, and transit.
Goal LU-7: Preserve and enhance single-family residential uses.
Policy LU-7.1: Maintain and enhance the character of single-family residential neighborhoods.
Resolution No.
General Plan Amendment No. GP-24-1
February 13, 2024
Policy LU-7.2: Encourage the development of moderate- to upper-income single-family housing.
Policy LU-7.3: Encourage home ownership.
Goal LU-8: Affordable housing supply in the City is maintained.
Policy LU-8.1: Encourage a variety of creative methods for supplying affordable housing.
Findings: The Project is consistent with Goal LU-1, 5, 6, 7 and 8 specifi cally the policies listed above. The project is consistent with the above goals because the new overlays allow and promote mix of uses, as well as a mix of incomes and affordability levels for the residential units within each development, at varied densities ranging from 45 dwelling units per acre to 100 dwelling units per acre. Mix of uses encourages balance of jobs as well as housing availability. Further the various densities also allow for a variety of housing options. The amendment provides for the development of up to approximately 9,452 total residential units, including approximately 5,418 affordable units.
The amendment will increase the City’s housing supply and provi de affordable housing opportunities to enhance the viability of the City’s housing su pply, while preserving the existing single-family neighborhoods.
ORDINANCE NO. _____
SPECIFIC PLAN AMENDMENT NO. SPC-24-1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BUENA
PARK APPROVING AN ORDINANCE AMENDING THE AUTO CENTER
SPECIFIC PLAN AND THE ENTERTAINMENT CORRIDOR SPECIFIC
PLAN ESTABLISHING MIXED-USE OVERLAYS FOR SPECIFIC
PARCELS THEREIN
A. Recitals.
(i) The City of Buena Park 6th Cycle Housing Element Update (HE U) was approved by the City Council on January 25, 2022. In order for the California Department of Housing and Community Development (HCD) to certify the HEU, the Land Use and Community Design Element and Residential Zoning Code Update need to be ad opted. The applications General Plan Amendment No. GP-24-1, Zone Change No. Z-24-2, Specific Plan Amendment No.
SP-24-1, Text Amendment No. C-24-1, and Mitigated Negative Decl aration No. MND-24-1 implement this program.
(ii) On January 24, 2024, the Planning Commission of the City o f Buena Park, California, conducted a duly noticed Public Hearing to consider Specific Plan Amendment No.
SPC-24-1 amending the Auto Center Specific Plan (ACSP) and Ente rtainment Corridor Specific Plan (ECSP). Within the ACSP, Sub-district A-2, “Permitted Uses ” shall be amended to allow Mixed-Use Overlay – 60, which shall apply to Parcel No’s.: 277-041-01; 277-041-02; 277-041-15; 277-041-16; 277-041-17; 277-041-19; 277-041-13; 277-041-12; 277 -041-11; 277-041-10; 277- 041-09; 277-041-08; 277-041-07; 277-052-17; 277-052-18; 277-052 -21, 277-052-25, 277-052- 26; 277-052-27; and 277-061-04. Within Sub-districts B-1 and B- 2, “Permitted Uses” shall be amended to allow Mixed-Use Overlay – 45 which shall apply to al l parcels within the B1 and B2 Sub-districts. Within the ECSP, Sub-district A-3, “Permitted Us es by Sub-District” shall be amended to allow Mixed-Use Overlay – 45, which shall apply to P arcel No’s.: 136-181-21; 136- 181-23; and 136-181-24.
(iii) The Project’s potential environment al impacts were analyzed thr ough Negative Declaration No. MND-24-1 and no significant impact was found.
(iv) On January 24, 2024, following a duly noticed public heari ng, as required by law, the Planning Commission of the City of Buena Park adopted a Resolution recommending that the Council adopt Specific Plan Amendment No. SPC-24-1.
(v) On February 13, 2024 the City Council of the City of Buena Park conducted a duly noticed public hearing as required by law to consider the proposed Specific Plan Amendment No.
SPC-24-1. Said public hearing was concluded prior to the adoption of this Ordinance.
(vi) This Ordinance shall be submitted for review by the Orange Coun t y A i r p o r t L a n d U s e Commission for consistency with the Airport Environs Land Use Plan for the Fullerton Municipal Airport.
ORDINANCE NO.
(vii) All legal prerequisites to the adoption of this Ordinance have occurred.
B. Ordinance.
NOW, THEREFORE, the City Council of the City of Buena Park does ordain as follows:
Section 1. The City Council hereby specifically finds that all the facts set forth in the Recitals, Part A, of Resolution No. 6315 are true and correct.
Section 2. The City Council finds that Specific Plan Amendment No. SPC-24-1 is consistent with the original goals of the Auto Center Specific Plan, Entertainment Corridor Specific Plan as well as the City’s General Plan. The proposed amendment will assist in providing further direction for new development and use of the parcels identified with mix-use or housing developments in a manner consistent with the goals of the Specific Plans Section 3. The City Council finds that Specific Plan Amendment No. SPC24-1, as specified in the draft City Council Ordinance which is attached hereto as Exhibits “A”, “B”, and “C” and made a part hereof by reference, will continue to promote the orderly development of the City and public health, safety and welfare.
Section 4. The City Council finds that Specific Plan Amendment No. SPC-24-1 conforms with the provisions of the City of Buena Park General Plan, and will promote the orderly development of the City and protect the health, safety, and welfare by enhancing and maintaining sound and logical land use and development practices throughout the Auto Center Specific Plan and Entertainment Corridor Specific Plan.
Section 5. The City Council finds that Specific Plan Amendment No. SPC-24-1 will not negatively affect existing commercially zoned property. The pro posal will facilitate improvement of the properties within the Specific Plan Areas and increase a rea synergy. There will be no detrimental effect on public services and facilities or the surrounding area, since the amendment does not change the plan’s goals and policies, and future devel opment will be guided by the accompanying Text Amendment No. C-24-1, in a cohesive manner.
Section 6. The City Council finds that Specific Plan Amendment No. SPC-24-1 will not have a detrimental effect upon land available for housing within the City. By applying the Specific Plan Amendments to the parcels identified, additional parcels c itywide will be able to rely on the overlays to develop new housing units in the City, including affordable housing
Section 7. The City Council has r eviewed and considered all com ponents of the requested Specific Plan Amendment No. SPC-24-1 including compli ance with the California Environmental Quality Act (CEQA) through the preparation of a N egative Declaration No. MND- 24-1 adopted by separate resolution, the City Council has deter mined that the Negative Declaration is legally adequate and that the Specific Plan Amen dment would not result in any new or substantially severe environmental impacts than those co nsidered and addressed in the Negative Declaration No. MND-24-1.
Section 8 . The City Council hereby approves Specific Plan Ame ndment No. SPC-24- 1 amending the Auto Center Specific Plan, and the Entertainment Corridor Specific Plan of the City of Buena Park and making the findings in support thereof.
ORDINANCE NO.
Section 9. Penalties for Violation. It shall be unlawful for an y person, firm, partnership, or corporation to violate any provisions, or fail to comply wit h any of the requirements of this Ordinance hereby adopted. Any person, firm, partnership, or cor poration violating any provision of this Ordinance or failing to comply with any of its requirem ents shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding One Thousand dollars ($1,000.00) or by imprisonment not exceeding s ix (6) months or by both such fine and imprisonment. Each such person, firm, partnership, or corporation shall be deemed guilty of a separate offense for each and every day or any portion thereof during which any violation of any of the provisions of this Ordinance is committed, continued or permitted by such person, firm, partnership, or corporation, and shall be deemed punishable the refore as provided in this Ordinance.
Section 10. Civil Remedies Available. A violation of any of the p r o v i s i o n s o f t h i s Ordinance shall constitute a nuisance and may be abated by the City through civil process by means of restraining order, preliminary or permanent injunction, or in any other manner provided by law for the abatement of such nuisance.
Section 11. Severability. If any section, subsection, subdivisi on, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sent ence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections , subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
Section 12. The Director of Community and Economic Development shall cause a Notice of Determination to be filed regarding Specific Plan Ame ndment No. SPC-24-1 in accordance with the law.
Section 13. The City Clerk shall certify to the passage of this Ordinance.
PASSED AND ADOPTED this 13th day of February 2024 by the following called vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAINED: COUNCILMEMBERS:
____________________________
Mayor
ATTEST:
___________________________
City Clerk
ORDINANCE NO.
I, Adria M. Jimenez, City Clerk of the City of Buena Park, Cali fornia, do hereby certify that the foregoing ordinance was introduced and passed at a regular meet ing of the City Council of the City of Buena Park held on the 13 th day of February 2024.
_____________________________
City Clerk
ORDINANCE NO.
EXHIBIT - A
Auto Center Specific Plan (ACSP) Amendments
Text to be added shown in gray highlighted text.
SUB-DISTRICT A2
NORTH SIDE OF AUTO CENTER DRIVE
AND
SOUTHEAST CORNER OF STANTON AVENUE AND AUTO CENTER DRIVE.
PERMITTED USES:
Mixed Use Overlay- 60, permitted only on the properties with the overlay in the Zoning Map, and only in compliance with the Objective Design and Development Standards (ODDS)
Public Services:
Flood Control Channel and facilities, utility corridor
SUB-DISTRICTS B1 & B2
OLD TOYOTA DEALERSHIP SITE
AND GENERAL AUCTION CO. SITE
PERMITTED USES:
Mixed Use Overlay- 45, only in compliance with the Objective Design and Development Standards (ODDS)
Vehicle Sales:
ORDINANCE NO.
New sales/lease of autos, motorcycles, trucks or trailers. (3) New boat sales, up to 28 ft. full-length. (3)
Vehicle Rentals:
Automobile rental agency.
ORDINANCE NO.
EXHIBIT –B
Entertainment Center Specific Plan (ECSP) Amendment
Text to be added shown in red colored box. Text to be added shown in gray highlighted text.
(12)
(12) In compliance with the Objective Design and Development Standards (ODDS) only
ORDINANCE NO.
EXHIBIT – C
ORDINANCE NO. _____
TEXT AMENDMENT NO. C-24-1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BUENA
PARK, CALIFORNIA, APPROVING TEXT AMENDMENT C-24-1
ADOPTING THE OBJECTIVE DESIGN AND DEVELOPMENT
STANDARDS REGULATING THE HOUSING INCENTIVE OVERLAYS,
AND MAKING FINDINGS IN SUPPORT THEREOF
A. Recitals.
(i) The City of Buena Park (“City”) is a California char ter city with plenary authority over all “municipal affairs,” and the broad “police powers” vested by California’s Constitution, pursuant to which it may mak e and enforce laws necessary to protect and preserve the health, safety, and welfare of residents, subject only to enactments by the California Legislature on matters of “statewide concern.”
(ii) Consistent with such authority, the City enacted the Buena Park M unicipal Code (“BPMC”) and Buena Park Zoning Code (Title 19 of the BMPC, hereinafter “BPZC”) to, among other things, regulate the location and nature of land uses in the City. (iii) On January 24, 2024, following a duly noticed public hearing, as required by law , the Planning Commission of the City of Buena Park considered Text Amendment No. C-24-1 to adopt the O bjective Design and Development Standards regulating the Housing Incentive Overlays, along with a Negative Declaration No. MND -24-1, and upon conclusion of the public hearing, adopted Resolution No. 6316 thereby recommending that the City Council adopt Text Amendment
(iv) The City Council has reviewed and considered all elements of said proposed Text Amendment No. C-24-1 together with the associated Negative Declaration No. MND-24-1 and the information contained therein.
(v) The draft Objective Design and Development Standards was advertised for a 30-day public review period from December 20, 2023 to January 22, 2024. (vi) This Ordinance shall be submitted for review by the Orange County Airport Land Use Commission for consistency with the Airport Environs Land Use Plan for the Fullerton Municipal Airport.
(vii) All legal prerequisites to the adoption of the Ordinance have occurred.
B. Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BUENA PARK DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council hereby specifically finds that all the facts set forth in the Recitals, Part A, of Ordinance No. 6316 are true and correct.
SECTION 2. The proposed Text Amendment C -24-1 is consistent with the goals, policies, purposes, objectives, and programs of the City’s General Plan as set forth in Exhibit A attached hereto
ORDINANCE NO. _______
and made a part hereto by reference.
SECTION 3. The City Council finds that Text Amendment C-24-1 (Exhibit B) will increase and will not diminish the land available for housing within the City while also balancing the public service needs of the City residents and the fiscal and environmental resources available . The proposed Text Amendment will regulate the development within the Housing Incentive Overlays concurrently adopted via General Plan Amendment No. GP -24-1 and Zone Change No. Z -24-2 that will augment new housing opportunities by facilitating the development of approximately of new residential units. This will increase the City’s housing supply in a manner compatible with the existing and anticipated development in the area. Adoption of the Objective Design and Development Standards does not increase the demand on public services.
SECTION 4 . The City Council finds that facts supporting the above -specified finding s are contained in the staff report and exhibits, and information provided to this Council during the public hearing conducted on January 24, 2024 with respect to the Project.
SECTION 5. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or ineffective. To this end, the provisions of this Ordinance are declared to be severable.
SECTION 6. The City Council finds that all components of the requested Text Amendment No. C-24-1 including compliance with the California Environmental Quality Act (CEQA) through the preparation of a Negative Declaration No. MND -24-1 adopted b y separate resolution, the Negative Declaration is legally adequate and that the amendment would not result in any new or substantially more severe environmental impacts than those considered and addressed in the Negative Declaration No. MND-24-1.
SECTION 7. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published or posted according to law.
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
________________________________
Mayor
ORDINANCE NO. _______
ATTEST:
_______________________________
City Clerk
I, Adria M. Jimenez, City Clerk of the City of Buena Park, California, do hereby certify that the foregoing ordinance was introduced and passed at a regular meeting of the City Council of the City of Buena Park held on the _13th___ day of ____February___ 2024.
ORDINANCE NO. _______
EXHIBIT A
The Objective Design and Development Standards (ODDS) comply with the following General Plan Housing Element goals and policies:
Goal 2.0: Assist in the provision of housing that meets the needs of economic segments of the community.
Policy 2.2: Use density bonuses and other incentives to facilitate the development of new housing for very low- and low-income households.
Finding: The ODDS encourage a mix of income levels for housing development. A lower percentage of very low and low income units is required in order to rely on the ODDS for new development, additionally the ODDS utilize affordable housing density bonuses consistent with the State Density Bonus law for all the additional affordable housing units provided beyond those units minimally required.
Goal 3.0 : Provide suitable sites for housing development which can accommodate a range of housing by type, size, location, price, and tenure.
Policy 3.1: Implement land use policies that allow for a range of residential densities and products, including low -density single-family uses, moderate -density town homes, and higher - density apartments, condominiums, and units in mixed-use developments.
Policy 3.2: Encourage development of residential uses in strategic proximity to employment, recreational facilities, schools, neighborhood commercial areas, and transportation routes.
Policy 3.3 Encourage compatible residential development in areas with recyclable or underutilized land.
Policy 3.4: Allow flexibility within the city to encourage a variety of housing types.
Finding: The ODDS provide regulations for housing development at various densities stating from a minimum density of 16 dwelling units per acre to up to 100 units per acre. Additional density is also possible pursuant to the State Density bonus law. The HIO ODDS encourage mixed -use development allowing for a greater proximity of the new housing units to employment, and other neighborhood serving nonresidential uses. The ODDS provides a path for by -right approval for projects with 20 percent affordable un it requirement. The ODDS establish transitional and supportive housing a residential use of property subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Additionally, removes minimum parking requirements for units occupied by supportive housing residents if the development is located within one-half mile of a public transit stop in accordance with state law.
Goal 4.0: Mitigate any potential governmental constraints to housing production and affordability.
Policy 4.1: Review and adjust as appropriate residential development standards, regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and construction that are determined to be a constraint on the development of housing particularly housing for lower and moderate-income households and for persons with special needs.
ORDINANCE NO. _______
Finding: The ODDS develop objective design standards for multifamily and mixed -use residential developments in compliance wi th state law and develops an administrative procedure for new housing development within the Housing Incentive Overlay zones.
ORDINANCE NO. _______
EXHIBIT B
Objective Design and Development Standards available via website:
https://cms7files1.revize.com/buenaparkca/Document_center/City%20Departments/Community %20development/Planning%20Division/Rezoning%20housing%20element%20sites/HIO%20D OCUMENT_Public%20Review%20Draft%2001.24.24%20-%20response%20included.pdf
Architectural Style Objective Design Standards
https://cms7files1.revize.com/buenaparkca/Document_center/City%20Departments/Community %20development/Planning%20Division/Rezoning%20housing%20element%20sites/Architectur al%20Design%20ODS%20w%20comment.pdf
RESOLUTION NO.
NEGATIVE DECLARATION NO. MND-24-1
A RESOLUTION OF THE CITY COUNCIL BUENA PARK, CALIFORNIA, APPROVING A NEGATIVE DECLARATION NO. MND-21-1 FOR
GENERAL PLAN AMENDMENT NO. GP-24-1, ZONE CHANGE NO. Z-24- 2, SPECIFIC PLAN AMENDMENT NO. SPC-24-1, AND TEXT
AMENDMENT NO. C-24-1 TO IMPLEMENT THE HOUSING INCENTIVE OVERLAYS (HIO) PROGRAMS IN COMPLIANCE WITH THE 2021-2029 HOUSING ELEMENT PROGRAMS 11, 12, AND 16
a. Recitals.
(i) The City of Buena Park 6th Cycle Housing Element Update (HE U) was approved by the City Council on January 25, 2022. In order for the California Department of Housing and Community Development (HCD) to certify the HEU, the Land Use and Community Design Element and Residential Zoning Code Update need to be im plemented. The applications General Plan Amendment No. GP-24-1, Zone Change No . Z-24-2, Specific Plan Amendment No. SP-24-1, Text Amendment No. C-24-1, and Negative Declaration No. MND-24- 1 will implement this program.
(ii) An Initial Study for the Project was prepared pursuant t o Section 15060 of the State Guidelines based on the California Environmental Qual ity Act (CEQA [California Public Resources Code Section 21000 et. Seq]). The Initial Stu dy concluded that there was no substantial evidence that the Project will have a significant e ffect on the environment. The City contracted with an independent consultant for the preparation of the Initial Study. (iii) Purs uant to State CEQA Guidelines Section 15070, and based upon the information contained in the Initial Study, a decision was made to prepare a Negative Declaration (“ND”) for the Project. The City contracted with an independent consultant, CASC Engineering and Consulting, Inc. for the preparation of the ND. (iv) A Negative Declaration (ND) was prepared pursuant to the S tate CEQA Guidelines (California Code of Regulations, Title 14, Section 1 5000 et seq.) and local procedures adopted pursuant thereto.
(v) On December 20, 2023, a Notice of Intent to Adopt a Negativ e Declaration was filed and the ND was forwarded to interested persons, organizations, and agencies. (vi) The public comment period for the draft ND began on Decemb er 20, 2023 and closed on January 22, 2024.
(vii) On January 24, 2024 the Planning Commission of the City o f Buena Park, held a duly noticed public hearing to consider a recommendation recommending that the City Council approve General Plan Amendment No. GP22-1, Zone Change No. Z-24-2, Specific Plan Amendment No. SPC-24-1, Text Amendment No. C-24-1, and ass ociated Draft Negative Resolution No.
2 Declaration No MND-24-1. Said public hearing was concluded prio r to adoption of this Resolution.
(viii) On J anuary 25, 2022, the City Council of the City of Buena Park, he ld a duly noticed public hearing to consider approval of G eneral Plan Amendment No. GP-24-1, with associated Draft Negative Declaration No. MND-24-1. Said public hearing was concluded prior to adoption of this Resolution.
(ix) All legal prerequisites to the adoption of this resolution have occurred.
b. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BUENA PARK doe s hereby determines, finds, and resolves as follows:
Section 1. All of the facts set forth in the recitals of this Resolution, are true and correct and are hereby incorporated by this reference.
Section 2. The City Council finds the Initial Study prepared by the City of Buena Park and Negative Declaration No. MND-24-1 is legally adequate and d etermines that no significant adverse environmental effects will occur with respect to the project identified in this Resolution.
Section 3. This City Council adopts the attached draft Negative Declaration No. MND- 24-1, and certification that the N egative Declaration for General Plan Amendment No. GP-21-1, has been completed in compliance with the California Environmental Quality Act, the State CEQA Guidelines and local procedures adopted pursuant thereto, and has reviewed and considered the information contained in the Negative Declaration.
Section 4. This City Council certifies the completion of Nega tive Declaration No. MND- 24-1. The City of Buena Park shall file a Notice of Determination with the County Clerk of Orange County and the Secretary of the Resources Agency pursuant to the provisions of Section 21152 of Public Resources Code and State CEQA Guidelines adopted pursuan t thereof. There is no evidence before the City that the proposed project will have an y adverse impacts on wildlife resources.
PASSED AND ADOPTED this 13 day of February 2024 by the following called vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Resolution No.
3 _________________________________
M a y o r
ATTEST:
_______________________________
C i t y C l e r k
I, Adria M. Jimenez, MMC, City Clerk of the City of Buena Park , California, hereby certify that the foregoing resolution was duly and regularly pa ssed and adopted at a regular meeting of the City Council of the City of Buena Park, held this 13th day of February 2024.
_________________________________
City Clerk
City of Buena Park
City Council Regular Meeting Agenda Report
RESOLUTION ESTABLISHING A WASTEWATER ENTERPRISE FUND AND NEW WASTEWATER SERVICE RATES Public Hearing to establish a separate enterprise fund for wastewater services and a new rate structure.
Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
PUBLIC HEARING Item: 6B
Presented By
Mina Mikhael, P.E., Director of Public Works/City Engineer Prepared By
Mina Mikhael, Director of Public Works/City Engineer
Approved By
Aaron France, City Manager
RECOMMENDED ACTION
1) Conduct a public hearing regarding a proposed wastewater enterprise fund and rate adjustments; and 2) Adopt a resolution establishing the wastewater enterprise fund and rate adjustments.
PREVIOUS CITY COUNCIL ACTION
At the Study Session on August 8, 2023, the City Council discussed the existing water and wastewater rates. The City of Buena Park ('City') provides water and wastewater services to a population of about 83,500 residents, covering a service area of about 10 square miles. The City serves predominantly residential customers while also serving a mix of commercial, industrial, and entertainment customers. The City owns, operates, and maintains a distribution system to supply water from eight municipal wells supplemented by connections to the Metropolitan Water District (MWD) to import additional water, as needed. The City also owns, operates, and maintains a wastewater collection system that collects wastewater from the City's customers via 168 miles of sewer lines. The collected wastewater is discharged into a large trunk sewer line owned by the Orange County Sanitation District (OCSAN) for wastewater treatment service and disposal through OCSAN's treatment plant. The charges for OCSAN treatment and disposal are placed on the County of Orange tax rolls for payment.
All of the City's water and wastewater revenues and expenses are included in the Water Enterprise Fund.
Buena Park's 70-year-old sewer system is deteriorating. Many of the sewer pipes were built in the 1950s and are in need of maintenance. If the City does not address the sewer infrastructure now, they may break, which could cause spills of raw sewage or allow infiltration into the water system. Any raw sewage spills present health risks to the community. Properly maintained pipes and infrastructure safely transport sewage - essential to maintaining a healthy, safe community. Without continuing to update current rates, the City will not have the financial resources needed to continue essential sewer updates, and the funds would come at the expense of other essential City services. The City has continually been dedicated to spending taxpayer money wisely and proactively preparing for the future. The proposed sewer rates are based upon sound financial planning and budgeting, which will be followed by an annual independent audit of expenditures.
In September of 2020, the City entered into an agreement with Tuckfield & Associates to conduct a rate study that differentiates the revenue and expenses of the Water Enterprise Fund into separate analyses and rates for the water and wastewater enterprises. The objective of this report was to study the level of wastewater revenue being received from current rates to meet projected operation and maintenance expenses and capital requirements, and design new rates that meet the long-term financial planning needs of the water and wastewater utilities. The City and the consultant have held multiple working sessions to study the existing rates and recommend rate structures that best meet objectives while minimizing financial impacts on residents to the greatest extent possible. Through this study, it was determined that the Water Enterprise Fund is healthy and the existing water rates do not need to be revisited at this time. The revenues generated from the current rates as well as the current water reserves show a healthy fund balance to sustain the water program for two to three more years. However, for the wastewater utility, the financial plan developed in the report indicated that there is insufficient revenue to fund the operation and maintenance expenses and capital requirements of that program.
DISCUSSION
Water and Wastewater rates must comply with Proposition 218 (Prop 218). Prop 218 was enacted by voters in 1996 to ensure, in part, that fees and charges imposed for ongoing delivery of a service to a property are proportional to, and do not exceed, the cost of providing service.
Wastewater service fees and charges are property-related fees and charges subject to the provisions of California Constitution Article XIII D, Section 6. To develop wastewater rates that comply with Prop 218, meet industry standards, and accomplish the City's goals for the study, four major steps were discussed: Revenue Requirement Calculation, Cost of Service Analyses, Wastewater Rate Design, and Wastewater Rate Adoption. The current wastewater rates are charged as an eleven percent (11%) fee of the water bill. The bi-monthly water bill consists of charges based on water meter size and volume of water purchased. Through this study, a financial plan was developed for a new Wastewater Enterprise Fund. The study projects a five-year rate-setting period that would implement new rates each February 14 from 2024 to 2028. The study recommends different rates for each customer class with Single-Family Dwellings (SFR) set at $0.65 per 1,000 gallons, Multi-Family Dwellings (MFR) at $0.80 per 1,000 gallons, and Commercial rates at $0.87 per 1,000 gallons. The initial change in the SFR bill is most significant as SFR customers represent 90% of the total number of customers of the wastewater system. To illustrate the impact of the rate change, a SFR customer's bi-monthly bill under the current rates with a 3/4-inch meter (84% of SFR users) using the average consumption of 19 thousand gallons bi-monthly yields a water bill at $9.59. Based on the new rate structure, the same property will have a bill of $12.35, an increase of $2.76 or 28.8%.
The study recommends a 3% increase for the remaining four years. These indexing rate adjustments are to keep up with the City's rising costs of wastewater operational services and the City's capital improvement plan. Wastewater rates have been determined based on industry standard rate setting methodologies set forth by the Water Environmental Federation Manual to ensure that the results of this study meet Prop 218 requirements and create rates that do not exceed the proportionate cost of providing the services.
Consistent with the requirements of Proposition 218, it is recommended that the City Council hold a public hearing and consider any written protests submitted by property owners or account holders, and unless protests are received by more than a majority of the properties served, that the City Council adopt the Resolution approving the proposed rate increase.
PUBLIC HEARING NOTICE
In October 2023, staff prepared and mailed a Notice of Public Hearing for the Consideration of Proposed Wastewater Rate Adjustments to all water customers indicating a Public Hearing date of February 13, 2024.
BUDGET IMPACT
Attachments
240213_BP Wastewater Enterprise Fund Reso FINAL.pdf
Exhibit 1.pdf
Sewer Rate Increase Public Hearing Notice_ Water Bill Insert.pdf BP Wastewater Rate Study Final Report.pdf
2023-08-08 CC A PACKET_Wastewater AR.pdf
Approval of this resolution by the City Council will result in the proposed wastewater sewer rates going into effect on February 14, 2024. These rates will be reflected on new billing cycles that cover start dates on or after February 14, 2024.
The adjusted rates will result in an overall increase in revenue for the Wastewater Enterprise Fund. The indexing rate adjustment will be calculated and become effective on February 14 of each year through February 14, 2028, and will be based on the City's actual costs of wastewater services.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BUENA PARK , CALIFORNIA,
ESTABLISHING A WASTEWATER ENTERPRISE FUND AND NEW WASTEWATER SERVICE RATES
WHEREAS, Buena Park’s 70-year-old sewer system is deteriorating. Many sewer pipes were built in the 1950s and are in need of maintenance; and
WHEREAS, if the City does not maintain the sewer pipes now , they may break , which could cause spills of raw sewage or allow infiltration into the water system; and
WHEREAS, any raw sewage spills present health risks to our community. Properly maintained pipes and infrastructure safely transport sewage -- essential to maintaining a healthy, safe community; and
WHEREAS, without continuing to update current rates, the City does not have the money needed to continue essential sewer upgrades. The funds would come at the expense o f other essential City services; and
WHEREAS, the City has continually been dedicated to spending money w isely and proactively preparing for the future. The sewer rate is based upon sound financial planning and budgeting followed by an annual independent audit of expenses.
WHEREAS, Section 3.04.070 of the Buena Park Municipal Code authorizes the Director of Finance, with the recommendation and approval of the City Council, to establish special funds for the deposit of moneys of the City;
WHEREAS, Section 3.36.070 of the Buena Park Municipal Code authorizes the City Council to establish by resolution the rates to be charged and collected by the City for water supplied to consumers within the City.
WHEREAS, the City’s water rates and charges currently incorporates charges for the discharge of wastewater by consumers of the City’s water system, and the City Council finds it necessary and appropriate to separate wastewater fees and charges from existing water rates and to create a special enterprise fund to receive and manage the revenues of said wastewater fees and charges; and
WHEREAS, the City Council wishes to establish and increase the rates and charges for wastewater services and facilities furnished by the City in accordance with the rate schedule provided in Exhibit 1 hereto (“Wastewater Rates”);
WHEREAS, the City Council has caused notice of the time and place of a public hearing on the proposed Wastewater Rates to be mailed as required by as required by Proposition 218, and Section 6 of Article XIID of the California Constitution, and Government Code Section 53755, and each notice described the amount of proposed charges, the basis upon which the amount of the proposed charges was calculated, the reason for the proposed charges, the date, time, and location of a public hearing on the proposed charges, and otherwise complied with requirements of law;
WHEREAS, on February 13, 2024, the City Council conducted a public hearing on the proposed Wastewater Rates and heard and considered all objections and protests thereto, and majority protest to the imposition of the Wastewater rates was not received; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, THE CITY COUNCIL FOR THE CITY OF BUENA PARK DOES HEREBY FIND, DECLARE AND RESOLVE:
Section 1: The foregoing recitals are true, correct, and incorporated as substantive findings and made a part of this Resolution.
Section 2. The City Council hereby authorizes the Director of Finance to establish, manage, and maintain a special enterprise fund for the benefit of the City’s wastewater system, and to receive all revenues generated by the Wastewater Rates.
Section 3. The City Council hereby adopts and approves the fees and charges in the amounts and on the effective dates set forth in the Wastewater Rate schedule provided in Exhibit No. 1 to this Resolution.
Section 4: To the extent that any other provision of local law relating to the establishment of wastewater service charges is inconsistent with this Resolution, the provisions of this Resolution shall prevail.
Section 5: The City Clerk shall certify to the adoption of this Resolution.
PASSED AND ADOPTED this 13th day of February 2024, by the following called vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
______________________________
Mayor
ATTEST:
City Clerk
I, Adria Jimenez, MMC, City Clerk of the City of Buena Park, California, hereby certify that the foregoing resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Buena Park, held this 13th day of February, 2024.
______________________________
City Clerk
EXHIBIT 1
WASTEWATER SERVICE CHARGES
The Wastewater service charges are comprised of the following rate:
Proposed Wastewater Variable Charges ($/Kgal)
February 14,
2024
February 14,
2025
February 14,
2026
February 14,
2027
February 14,
2028
Single Family $0.65 $0.67 $0.69 $0.71 $0.73
Multi-family $0.80 $0.82 $0.85 $0.87 $0.90
Commercial $0.87 $0.89 $0.92 $0.95 $0.98
T h e C i t y o f B u e n a P a r k o p e r a t e s a n d m a i n t a i n s 1 6 8 m i l e s o f s e w e r l i n e s a n d h a s a r e s p o n s i b i l i t y t o a d d r e s s s e w e r i n f r a s t r u c t u r e n e e d s t o p r o t e c t t h e h e a l t h a n d s a f e t y o f r e s i d e n t s a n d o u r c o m m u n i t y . M a n y o f t h e C i t y ’ s s e w e r p i p e s w e r e b u i l t i n t h e 1 9 5 0 s a n d a r e i n n e e d o f m a i n t e n a n c e . P r o p e r l y m a i n t a i n e d p i p e s a n d i n f r a s t r u c t u r e s a f e l y t r a n s p o r t s e w a g e - - e s s e n t i a l t o m a i n t a i n i n g a h e a l t h y , s a f e c o m m u n i t y .
T h e C i t y o f B u e n a P a r k ( C i t y ) i s p r o p o s i n g a n i n c r e a s e t o t h e s e w e r s e r v i c e c h a r g e d u e t o t h e i n c r e a s e d c o s t s o f o p e r a t i n g , m a i n t a i n i n g , a n d i m p r o v i n g T h e C i t y o f B u e n a P a r k ( C i t y ) i s p r o p o s i n g a n i n c r e a s e t o t h e s e w e r s e r v i c e c h a r g e d u e t o t h e i n c r e a s e d c o s t s o f o p e r a t i n g , m a i n t a i n i n g , a n d i m p r o v i n g t h e C i t y ’ s s e w e r s y s t e m . T h i s c h a n g e w i l l g e n e r a l l y r e s u l t i n a n i n c r e a s e i n s e w e r s e r v i c e c h a r g e s o n c u s t o m e r s ’ b i - m o n t h l y w a t e r b i l l . Wi t h o u t c o n t i n u i n g t o u p d a t e c u r r e n t r a t e s , t h e C i t y d o e s n o t h a v e t h e f u n d s n e e d e d t o c o n t i n u e e s s e n t i a l s e w e r u p g r a d e s . T h e f u n d s w o u l d c o m e a t t h e e x p e n s e o f o t h e r e s s e n t i a l C i t y s e r v i c e s .
T h e b i - m o n t h l y w a t e r b i l l i n c l u d e s c h a r g e s f o r f o u r d i f f e r e n t s e r v i c e s : w a t e r , s e w e r , t r a s h , a n d p a r a m e d i c s s u b s c r i p t i o n p r o g r a m . P r o p o s e d c h a n g e s a r e T h e b i - m o n t h l y w a t e r b i l l i n c l u d e s c h a r g e s f o r f o u r d i f f e r e n t s e r v i c e s : w a t e r , s e w e r , t r a s h , a n d p a r a m e d i c s s u b s c r i p t i o n p r o g r a m . P r o p o s e d c h a n g e s a r e l i m i t e d t o t h e s e w e r s e r v i c e f e e . C u r r e n t l y , t h e s e w e r s e r v i c e f e e c o n s i s t s o f a n 1 1 % s u r c h a r g e o f t h e w a t e r s e r v i c e c h a r g e . S o i f a w a t e r s e r v i c e c h a r g e t o t a l e d $ 1 0 0 , t h e s e w e r s e r v i c e c h a r g e w o u l d b e a n a d d i t i o n a l $ 1 1 . T h e n e w p r o p o s e d s e w e r s e r v i c e f e e i s a v a r i a b l e c h a r g e b a s e d u p o n t h e a m o u n t o f w a t e r c o n s u m e d w i t h t h r e e r a t e s f o r d i f f e r e n t t y p e s o f p r o p e r t i e s : S i n g l e - F a m i l y D w e l l i n g , M u l t i - F a m i l y D w e l l i n g , a n d C o m m e r c i a l .
S i n g l e - F a m i l y D w e l l i n g s
S i n g l e - F a m i l y D w e l l i n g s w i l l b e c h a r g e d a s e w e r s e r v i c e f e e o f $ 0 . 6 5 p e r 1 , 0 0 0 g a l l o n s o f w a t e r c o n s u m e d . A n a v e r a g e c u s t o m e r ’ s b i - m o n t h l y b i l l u n d e r t h e c u r r e n t r a t e s , w i t h a 3 / 4 - i n c h w a t e r m e t e r , u s i n g 1 9 t h o u s a n d g a l l o n s b i - m o n t h l y , y i e l d s a s e w e r c h a r g e o f $ 9 . 5 9 . B a s e d o n t h e p r o p o s e d r a t e s t r u c t u r e , t h e s a m e p r o p e r t y w i l l h a v e a b i - m o n t h l y s e w e r c h a r g e o f $ 1 2 . 3 5 , a n i n c r e a s e o f $ 2 . 7 6 e v e r y t w o m o n t h s .
M u l t i - F a m i l y D w e l l i n g s
M u l t i - F a m i l y D w e l l i n g s w i l l b e c h a r g e d a s e w e r s e r v i c e f e e o f $ 0 . 8 0 p e r 1 , 0 0 0 g a l l o n s o f w a t e r c o n s u m e d . A n a v e r a g e c u s t o m e r ’ s b i - m o n t h l y b i l l u n d e r t h e c u r r e n t r a t e s v a r i e s , b u t t y p i c a l l y w i l l y i e l d a s e w e r c h a r g e b e t w e e n $ 2 . 0 8 a n d $ 2 . 8 9 . B a s e d o n t h e p r o p o s e d r a t e s t r u c t u r e , t h e s e p r o p e r t i e s w i l l t y p i c a l l y h a v e a b i - m o n t h l y s e w e r c h a r g e b e t w e e n $ 4 . 0 9 a n d $ 6 . 7 6 , a n i n c r e a s e o f $ 2 . 0 1 t o $ 3 . 8 7 e v e r y t w o m o n t h s .
C o m m e r c i a l c u s t o m e r s w i l l b e c h a r g e d a s e w e r f e e o f $ 0 . 8 7 p e r 1 , 0 0 0 g a l l o n s o f w a t e r c o n s u m e d .
T h e C i t y h a s c o n t i n u a l l y b e e n d e d i c a t e d t o s p e n d i n g y o u r m o n e y w i s e l y a n d p r o a c t i v e l y p r e p a r i n g f o r t h e f u t u r e . T h e s e w e r r a t e i s b a s e d u p o n s o u n d f i n a n c i a l p l a n n i n g a n d b u d g e t i n g f o l l o w e d b y a n a n n u a l i n d e p e n d e n t a u d i t o f e x p e n s e s . f i n a n c i a l p l a n n i n g a n d b u d g e t i n g f o l l o w e d b y a n a n n u a l i n d e p e n d e n t a u d i t o f e x p e n s e s .
T h e C i t y h a s p r e p a r e d a r e p o r t e n t i t l e d “ W a s t e w a t e r R a t e S t u d y ” p r e p a r e d b y T u c k f i e l d a n d A s s o c i a t e s a n d d a t e d A u g u s t 2 0 2 3 . T h e W a s t e w a t e r R a t e S t u d y i s o n f i l e i n t h e o f f i c e o f t h e C i t y C l e r k a t 6 6 5 0 B e a c h B o u l e v a r d , B u e n a P a r k , C a l i f o r n i a , a n d a v a i l a b l e f o r p u b l i c i n s p e c t i o n .
T h e n e w s e w e r r a t e s a r e p r o p o s e d t o b e e f f e c t i v e F e b r u a r y 1 4 , 2 0 2 4 , a n d w i l l b e a d j u s t e d e a c h F e b r u a r y 1 4 t h t h e r e a f t e r t h r o u g h 2 0 2 8 . A t t h e p u b l i c h e a r i n g , t h e C i t y C o u n c i l w i l l c o n s i d e r a d j u s t i n g t h e S e w e r S e r v i c e C h a r g e s , a s d e p i c t e d i n t h e c h a r t b e l o w :
C I T Y O F B U E N A P A R K
P u b l i c H e a r i n g N o t i c e F E B R U A R Y 1 3 , 2 0 2 4 , A T 6 : 0 0 P M O u r L o c a l W a s t e w a t e r a n d S e w e r S e r v i c e s S i n g l e - F a m i l y D w e l l i n g
M u l t i - F a m i l y D w e l l i n g
C u r r e n t R a t e
P r o p o s e d R a t e
S e w e r S e r v i c e R a t e C o m p a r i s o n
1 1 % S u r c h a r g e o f W a t e r S e r v i c e C h a r g e $ 9 . 5 9 e v e r y t w o m o n t h s
$ 0 . 6 5 p e r 1 , 0 0 0 g a l l o n s o f W a t e r C o n s u m e d $ 1 2 . 3 5 e v e r y t w o m o n t h s
$ 2 . 7 6 e v e r y t w o m o n t h s
1 1 % S u r c h a r g e o f W a t e r S e r v i c e C h a r g e $ 2 . 0 8 - $ 2 . 8 9 e v e r y t w o m o n t h s
$ 0 . 8 0 p e r 1 , 0 0 0 g a l l o n s o f W a t e r C o n s u m e d $ 4 . 0 9 - $ 6 . 7 6 e v e r y t w o m o n t h s
$ 2 . 0 1 - $ 3 . 8 7 e v e r y t w o m o n t h s
1 1 % S u r c h a r g e o f W a t e r S e r v i c e C h a r g e $ 0 . 8 7 p e r 1 , 0 0 0 g a l l o n s o f W a t e r C o n s u m e d C o m m e r c i a l
C a r g o p r o m e d i o p o r s e r v i c i o d e a l c a n t a r i l l a d o A u m e n t o t o t a l p r o m e d i o
C a r g o p r o m e d i o p o r s e r v i c i o d e a l c a n t a r i l l a d o V i v i e n d a s - U n i f a m i l i a r e s
T a r i f a A c t u a l
T a r i f a P r o p u e s t a
C o m p a r a c i ó n d e l a s T a r i f a s d e l S e r v i c i o d e A l c a n t a r i l l a d o 1 1 % R e c a r g o d e l C a r g o d e l S e r v i c i o d e A g u a $ 9 . 5 9 c a d a d o s m e s e s
0 . 6 5 ¢ p o r 1 , 0 0 0 g a l o n e s d e A g u a C o n s u m i d a $ 1 2 . 3 5 c a d a d o s m e s e s
$ 2 . 7 6 c a d a d o s m e s e s
다 가 구 주 택
1 1 % R e c a r g o d e l C a r g o d e l S e r v i c i o d e A g u a $ 2 . 0 8 - $ 2 . 8 9 c a d a d o s m e s e s
0 . 8 0 ¢ p o r 1 , 0 0 0 g a l o n e s d e A g u a C o n s u m i d a $ 4 . 0 9 - $ 6 . 7 6 c a d a d o s m e s e s
$ 2 . 0 1 - $ 3 . 8 7 c a d a d o s m e s e s
1 1 % R e c a r g o d e l C a r g o d e l S e r v i c i o d e A g u a 0 . 8 0 ¢ p o r 1 , 0 0 0 g a l o n e s d e A g u a C o n s u m i d a C o m e r c i a l
A v e r a g e S e w e r S e r v i c e C h a r g e
A v e r a g e S e w e r S e r v i c e C h a r g e
A v e r a g e T o t a l I n c r e a s e
현 재 요 금
제 안 요 금
하 수 도 요 금 비 교
2개월마다 $ 9 . 5 9
2개월마다 $ 1 2 . 3 5
2개월마다 $ 2 . 7 6
2개월마다 $ 2 . 0 8 - $ 2 . 8 9
2개월마다 $ 4 . 0 9 - 6 . 7 6
2개월마다 $ 2 . 0 1 - $ 3 . 8 7
1 1 % 수도 서비스 요금 할증료
물 소비량 1 , 0 0 0갤런당 $ 0 . 6 5 갤런
1 1 % 수도 서비스 요금 할증료
물 소비량 1 , 0 0 0갤런당 $ 0 . 8 7 갤런
평균 하수도 서비스 요금
평균 하수도 서비스 요금
평 균 총 인 상
V i v i e n d a - M u l t i f a m i l i a r
단 독 주 택
상 업 용 건 물
1 1 % 수도 서비스 요금 할증료
물 소비량 1 , 0 0 0갤런당 $ 0 . 8 0 갤런
E l A y u n t a m i e n t o d e B u e n a P a r k o p e r a y m a n t i e n e 1 6 8 m i l l a s d e a l c a n t a r i l l a d o y t i e n e l a r e s p o n s a b i l i d a d d e h a c e r f r e n t e a l a s n e c e s i d a d e s d e i n f r a e s t r u c t u r a d e a l c a n t a r i l l a d o p a r a p r o t e g e r l a s a l u d y l a s e g u r i d a d d e l o s r e s i d e n t e s y n u e s t r a c o m u n i d a d . M u c h a s d e l a s t u b e r í a s d e a l c a n t a r i l l a - d o d e l A y u n t a m i e n t o f u e r o n c o n s t r u i d a s e n l o s a ñ o s 5 0 y n e c e s i t a n m a n t e n i m i e n t o . T u b e r í a s e i n f r a e s t r u c t u r a s e n b u e n e s t a d o t r a n s p o r t a n l a s a g u a s r e s i d u a l e s d e f o r m a s e g u r a , l o q u e e s e s e n c i a l p a r a m a n t e n e r u n a c o m u n i d a d s a n a y s e g u r a .
E l A y u n t a m i e n t o d e B u e n a P a r k ( l a C i u d a d ) p r o p o n e u n i n c r e m e n t o d e l p r e c i o d e l s e r v i c i o d e a l c a n t a r i l l a d o d e b i d o a l i n c r e m e n t o d e l o s c o s t o s d e o p e r - a c i ó n , m a n t e n i m i e n t o y m e j o r a d e l s i s t e m a d e a l c a n t a r i l l a d o d e l a C i u d a d . E s t e c a m b i o g e n e r a l m e n t e r e s u l t a r á e n u n i n c r e m e n t o e n e l p a g o d e l s e r v i c i o d e a l c a n t a r i l l a d o e n l a f a c t u r a b i m e s t r a l d e a g u a d e l o s u s u a r i o s . S i n o s e s i g u e n a c t u a l i z a n d o l a s t a r i f a s a c t u a l e s , l a C i u d a d n o t i e n e e l d i n e r o n e c e s a r i o p a r a c o n t i n u a r c o n l a s m e j o r a s e s e n c i a l e s d e l a l c a n t a r i l l a d o . L o s f o n d o s a c u d i r í a n a e x p e n s a s d e o t r o s s e r v i c i o s e s e n c i a l e s d e l a C i u d a d .
L a f a c t u r a b i m e n s u a l d e l a g u a i n c l u y e c o b r o s p o r c u a t r o s e r v i c i o s d i s t i n t o s : a g u a , a l c a n t a r i l l a d o , b a s u r a y p a r a m é d i c o s . L o s c a m b i o s p r o p u e s t o s s e l i m i - t a n a l a t a s a d e a l c a n t a r i l l a d o . A c t u a l m e n t e , l a t a s a d e a l c a n t a r i l l a d o c o n s i s t e e n u n r e c a r g o d e l 1 1 % s o b r e e l c o b r o d e l s e r v i c i o d e a g u a . L a n u e v a c u o t a d e s e r v i c i o d e a l c a n t a r i l l a d o p r o p u e s t a e s u n c o b r o v a r i a b l e b a s a d o e n l a c a n t i d a d d e a g u a c o n s u m i d a c o n t r e s t a r i f a s p a r a d i s t i n t o s t i p o s d e p r o p i e - d a d e s : ( 1 ) V i v i e n d a - U n i f a m i l i a r , ( 2 ) V i v i e n d a - M u l t i f a m i l i a r y ( 3 ) C o m e r c i a l .
A l a s V i v i e n d a s - U n i f a m i l i a r e s s e l e s c o b r a r á u n c a r g o p o r s e r v i c i o d e a l c a n t a r i l l a d o d e . 6 5 ¢ p o r c a d a 1 , 0 0 0 g a l o n e s d e a g u a c o n s u m i d o s . L a f a c t u r a b i m e n s u a l d e u n u s u a r i o m e d i o c o n l a s t a r i f a s a c t u a l e s , c o n u n c o n t a d o r d e a g u a d e ¾ d e p u l g a d a y u n c o n s u m o b i m e n s u a l d e 1 9 . 0 0 0 g a l o n e s , s u p o n e u n c o b r o d e $ 9 . 5 9 p o r e l s e r v i c i o d e a l c a n t a r i l l a d o . D e a c u e r d o c o n l a e s t r u c t u r a d e t a r i f a s p r o p u e s t a , l a m i s m a p r o p i e d a d d e b e r á p a g a r u n c a r g o b i m e n s u a l d e $ 1 2 . 3 5 , l o q u e s u p o n e u n i n c r e m e n t o d e $ 2 . 7 6 c a d a d o s m e s e s .
V i v i e n d a s - M u l t i f a m i l i a r e s
V i v i e n d a s - M u l t i f a m i l i a r e s s e c o b r a r á u n a c u o t a d e s e r v i c i o d e a l c a n t a r i l l a d o d e 0 . 8 0 ¢ p o r 1 , 0 0 0 g a l o n e s d e a g u a c o n s u m i d a . L a f a c t u r a b i m e n s u a l p r o m e d i o d e u n u s u a r i o c o n l a s t a r i f a s a c t u a l e s v a r í a , p e r o n o r m a l m e n t e s u p o n d r á u n c o b r o p o r a l c a n t a r i l l a d o d e e n t r e $ 2 . 0 8 y $ 2 . 8 9 . D e a c u e r d o c o n l a e s t r u c t u r a d e t a r i f a s p r o p u e s t a , e s t a s p r o p i e d a d e s n o r m a l m e n t e t e n d r á n u n c o b r o b i m e n s u a l d e a l c a n t a r i l l a d o d e e n t r e $ 4 . 0 9 y $ 6 . 7 6 , l o q u e r e p r e - s e n t a u n i n c r e m e n t o d e $ 2 . 0 1 a $ 3 . 8 7 c a d a d o s m e s e s .
A l o s u s u a r i o s C o m e r c i a l e s s e l e s c o b r a r á u n a t a s a d e a l c a n t a r i l l a d o d e 0 . 8 7 ¢ p o r c a d a 1 , 0 0 0 g a l o n e s d e a g u a c o n s u m i d a .
L a C i u d a d s e h a d e d i c a d o c o n t i n u a m e n t e a g a s t a r s u d i n e r o c o n s e n s a t e z y a p r e p a r a r s e d e f o r m a p r o a c t i v a p a r a e l f u t u r o . L a t a s a d e a l c a n t a r i l l a d o s e b a s a e n u n a s ó l i d a p l a n i f i c a c i ó n f i n a n c i e r a y p r e s u p u e s t a r i a s e g u i d a d e u n a a u d i t o r í a a n u a l i n d e p e n d i e n t e d e l o s g a s t o s .
L a C i u d a d h a p r e p a r a d o u n i n f o r m e t i t u l a d o " E s t u d i o d e T a r i f a s d e A g u a s R e s i d u a l e s " p r e p a r a d o p o r “ T u c k f i e l d a n d A s s o c i a t e s ” y f e c h a d o e n a g o s t o d e l 2 0 2 3 . E l E s t u d i o d e T a r i f a s d e A g u a s R e s i d u a l e s s e e n c u e n t r a a r c h i v a d o e n l a o f i c i n a d e l a S e c r e t a r í a M u n i c i p a l , e n 6 6 5 0 B e a c h B o u l e v a r d , B u e n a P a r k , C a l i f o r n i a , y e s t á d i s p o n i b l e p a r a i n s p e c c i ó n p ú b l i c a .
S e p r o p o n e q u e l a s n u e v a s t a r i f a s d e a l c a n t a r i l l a d o e n t r e n e n v i g o r e l 1 4 d e f e b r e r o d e l 2 0 2 4 , y s e a j u s t a r á n c a d a 1 4 d e f e b r e r o a p a r t i r d e e s a f e c h a S e p r o p o n e q u e l a s n u e v a s t a r i f a s d e a l c a n t a r i l l a d o e n t r e n e n v i g o r e l 1 4 d e f e b r e r o d e l 2 0 2 4 , y s e a j u s t a r á n c a d a 1 4 d e f e b r e r o a p a r t i r d e e s a f e c h a h a s t a e l 2 0 2 8 . E n l a a u d i e n c i a p ú b l i c a , l a C i u d a d c o n s i d e r a r á a j u s t a r l o s C a r g o s p o r S e r v i c i o d e A l c a n t a r i l l a d o , c o m o C o m o s e m u e s t r a e n e l g r á f i c o e n e l l a d o r e v e r s o .
C I T Y O F B U E N A P A R K
N O T I F I C A C I Ó N D E A U D I E N C I A P Ú B L I C A 1 3 D E F E B R E R O D E 2 0 2 4 , A L A S 6 : 0 0 P M . 2 0 2 4 년 2 월 1 3 일 화요일 오후 6 시 개최 예정 공청회
N u e s t r o s S e r v i c i o s L o c a l e s d e A g u a s R e s i d u a l e s y A l c a n t a r i l l a d o 부 에 나 파 크 시 는 1 6 8 여 마 일 의 하 수 관 을 운 영 및 유 지 관 리 하 고 있 으 며 , 주 민 과 지 역 사 회 의 건 강 과 안 전 을 보 호 하 기 위 해 하 수 도 인 프 라 문 제 를 해 결 해 야 할 책 임 을 가 지 고 있 습 니 다 . 시 의 하 수 관 중 상 당 수 는 1 9 5 0 년 대 에 건 설 되 어 유 지 보 수 가 필 요 한 상 태 입 니 다 . 적 절 하 게 유 지 관 리 된 하 수 관 및 관 련 시 설 은 하 수 를 안 전 하 게 운 반 하 며 , 이 는 건 강 하 고 안 전 한 지 역 사 회 를 유 지 하 는 데 필 수 적 입 니 다 . 부 에 나 파 크 시 ( 이 하 시 ) 는 시 의 하 수 도 시 설 운 영 , 유 지 관 리 및 개 선 비 용 증 가 로 인 해 하 수 도 요 금 인 상 을 제 안 합 니 다 . 이 변 경 으 로 인 해 일 반 적 으 로 고 객 의 격 월 수 도 요 금 고 지 서 에 하 수 도 요 금 이 인 상 될 것 입 니 다 . 현 재 요 금 을 계 속 갱 신 하 지 않 을 시 , 시 에 서 는 필 수 적 인 하 수 도 유 지 보 수 를 계 속 하 는 데 필 요 한 자 금 이 부 족 하 게 되 며 , 이 자 금 은 다 른 필 수 시 내 인 프 라 시 설 을 희 생 하 여 마 련 할 수 있 습 니 다 . 격 월 로 청 구 되 는 수 도 요 금 에 는 수 도 , 하 수 도 , 쓰 레 기 , 구 급 대 원 등 네 가 지 서 비 스 에 대 한 요 금 이 포 함 되 어 있 습 니 다 . 제 안 된 변 경 사 항 은 하 수 도 요 금 에 만 격 월 로 청 구 되 는 수 도 요 금 에 는 수 도 , 하 수 도 , 쓰 레 기 , 구 급 대 원 등 네 가 지 서 비 스 에 대 한 요 금 이 포 함 되 어 있 습 니 다 . 제 안 된 변 경 사 항 은 하 수 도 요 금 에 만 해 당 됩 니 다 . 현 재 하 수 도 요 금 은 수 도 서 비 스 요 금 의 1 1 % 할 증 료 로 구 성 됩 니 다 . 따 라 서 수 도 서 비 스 요 금 이 총 1 0 0 달 러 인 경 우 하 수 도 서 비 스 요 금 은 1 1 달 러 가 추 가 됩 니 다 . 새 로 제 안 된 하 수 도 요 금 은
( 1 ) 단 독 주 택 , ( 2 ) 다 가 구 주 택 , ( 3 ) 상 업 용 건 물 의 세 가 지 유 형 에 따 라 소 비 되 는 물 의 양 에 따 라 변 동 되 는 요 금 으 로 부 과 됩 니 다 . 단 독 주 택에 는 소 비 된 물 1 , 0 0 0 갤 런 당 $ 0 . 6 5 의 하 수 도 요 금 이 부 과 됩 니 다 . 현 재 요 금 에 따 른 평 균 고 객 이 3 / 4 인 치 수 도 계 량 기 를 사 용 하 여 격 월 로 1 9 , 0 0 0 갤 런 을 사 용 할 경 우 격 월 고 지 서 에 는 하 수 도 요 금 이 $ 9 . 5 9 로 계 산 됩 니 다 . 제 안 된 요 금 구 조 에 따 르 면 동 일 한 건 물 의 격 월 하 수 도 요 금 은 $ 1 2 . 3 5 로 , 2 개 월 마 다 $ 2 . 7 6 씩 인 상 됩 니 다 .
다 가 구 주 택
다 가 구 주 택에 는 소 비 된 물 1 , 0 0 0 갤 런 당 $ 0 . 8 0 의 하 수 도 서 비 스 요 금 이 부 과 됩 니 다 . 현 재 요 금 에 따 른 고 객 의 평 균 격 월 청 구 서 는 다 양 하 지 만 일 반 적 으 로 2 . 0 8 달 러 에 서 2 . 8 9 달 러 사 이 의 하 수 도 요 금 이 부 과 됩 니 다 . 제 안 된 요 금 구 조 에 따 르 면 , 이 러 한 부 동 산 은 일 반 적 으 로 2 개 월 마 다 2 . 0 1 ~ 3 . 8 7 달 러 씩 인 상 된 4 . 0 9 ~ 6 . 7 6 달 러 의 하 수 도 요 금 이 부 과 됩 니 다 . 제 안 요 금 물 소 비 량 1 , 0 0 0 갤 런 당 $ 0 . 8 7 / 갤 런 . 상 업 용 건 물 에 는 소 비 한 물 1 , 0 0 0 갤 런 당 $ 0 . 8 7 의 하 수 도 요 금 이 부 과 됩 니 다 . 시 정 부 는 여 러 분 의 돈 을 현 명 하 게 사 용 하 고 미 래 를 선 제 적 으 로 준 비 하 기 위 해 지 속 적 으 로 노 력 해 왔 습 니 다 . 하 수 도 요 금 은 건 전 한 재 정 계 획 과 예 산 책 정 , 그 리 고 매 년 실 시 하 는 독 립 적 인 비 용 감 사 를 기 반 으 로 합 니 다 .
시 정 부 에 서 는 2 0 2 3 년 8 월 터 크 필 드 앤 어 소 시 에 이 츠 ( T u c k fi e l d a n d A s s o c i a t e s ) 가 작 성 한 " 하 수 도 요 금 연 구 " 라 는 제 목 의 보 고 서 를 준 비 했 습 니 다 . 하 수 도 요 금 시 정 부 에 서 는 2 0 2 3 년 8 월 터 크 필 드 앤 어 소 시 에 이 츠 ( T u c k fi e l d a n d A s s o c i a t e s ) 가 작 성 한 " 하 수 도 요 금 연 구 " 라 는 제 목 의 보 고 서 를 준 비 했 습 니 다 . 하 수 도 요 금 연 구 는 캘 리 포 니 아 주 부 에 나 파 크 의 6 6 5 0 B e a c h B o u l e v a r d 에 있 는 시 정 부 서 기 사 무 소 에 보 관 되 어 있 으 며 , 일 반 인 이 열 람 할 수 있 습 니 다 . 새 로 운 하 수 도 요 금 은 2 0 2 4 년 2 월 1 4 일 부 터 적 용 될 예 정 이 며 , 이 후 2 0 2 8 년 까 지 매 년 2 월 1 4 일 에 조 정 될 예 정 입 니 다 . 공 청 회 에 서 시 의 회 는 반 대 쪽 의 차 트 에 표 시 된 대 로 하 수 도 서 비 스 요 금 조 정 을 고 려 할 것 입 니 다 .
지 역 하 수 및 폐 수 시 설
Submitted By:
Tuckfield & Associates
Contact: Mr. Clayton Tuckfield
2549 Eastbluff Dr, #450B
Newport Beach, CA 92660
(949) 760-9454
www.tuckfieldassociates.com
July 2023
Report to:
City of
Buena Park
6650 Beach Boulevard
Buena Park, CA 90622
Report on:
W astewater Rate Study
[This Page Intentionally Left Blank for Two-sided Printing]
Tuckfield & Associates
2549 Eastbluff Drive, Suite 450B, Newport Beach, CA 92660 Phone (949) 760-9454 Fax (949) 760-2725
Email [email protected]
July 28, 2023
Mr. Mina Mikhael, PE
Public Works Director
City of Buena Park
6650 Beach Boulevard
Buena Park, CA 90622
Dear Mr. Mikhael:
I am pleased to present this Wastewater Rate Study (Study) report to the City of Buena Park (City). This Study included a comprehensive review of the City’s wastewater revenue and expenses, development of a long-range financial plan, and design of wastewater rates. The rates presented in this report have been developed based on cost of service principles and industry methods that result in fair and equitable rates for the users of the wastewater system in accordance with Proposition 218.
The major objectives of the Study include the following. Generate positive levels of income in the Study period Maintain operating and capital reserves at or greater than target levels Maintain any debt service coverage requirement ratios at or greater than the minimum required Meet annual capital replacement spending requirements from the proposed wastewater rates and charges and cash reserves
Several workshops were held with City staff to facilitate discussions regarding wastewater rates. The wastewater revenue, revenue requirements, number of customers, volumes, cost of service allocations, and current and available rate structures were analyzed and discussed that resulted in the rates proposed in this report.
This report includes an executive summary and presents the findings and recommendations for the financial plan and rates for the City’s wastewater enterprise system. Tables and figures throughout the report are provided to demonstrate the calculations and document the results.
It has been a pleasure to work with City staff during the performance of this study. If there are any questions, please contact me at (949) 760-9454.
Very Truly Yours,
TUCKFIELD & ASSOCIATES
G. Clayton Tuckfield
President/Project Consultant
Wastewater Rate Study
City of Buena Park
Table of Contents Page
Executive Summary ............................................................................................... 1 Background ..................................................................................................................................................... 1 Objectives of the Study ................................................................................................................................... 1 Process and Approach .................................................................................................................................... 2 Cost-Based Rate-Setting Methodology ................................................................................................... 2 Revenue Requirement Calculation .................................................................................................. 3 Cost of Service Analyses ................................................................................................................. 3 Wastewater Rate Design ................................................................................................................. 3 Wastewater Rate Adoption .............................................................................................................. 3 Current Wastewater Rates .............................................................................................................................. 4 Wastewater Financial Plan .............................................................................................................................. 4 Wastewater Financial Plan Results ....................................................................................................... 4 Proposed Wastewater Rate Structure and Rates ........................................................................................... 6 Wastewater Bill Impacts .................................................................................................................................. 7 Wastewater Rate Survey .............................................................................................................................. 10 Introduction ........................................................................................................... 12 Objectives ...................................................................................................................................................... 12 Scope of Study .............................................................................................................................................. 12 Assumptions ......................................................................................................... 13 Reserve Policy .............................................................................................................................................. 13 Operating Reserve ................................................................................................................................. 13 Capital Replacement Reserve ............................................................................................................... 14 Beginning Balances and Reserve Targets .................................................................................................... 14 Wastewater Financial Planning ........................................................................... 14 Current Wastewater Rates ............................................................................................................................ 14 Wastewater User Classifications ................................................................................................................... 15 Number of Customers............................................................................................................................ 15 Number of Meters of Wastewater Customers ....................................................................................... 16 Water Sales Volumes of Wastewater Customers ................................................................................. 16 Wastewater Financial Plan ............................................................................................................................ 17 Revenues ............................................................................................................................................... 17 Miscellaneous Revenues ....................................................................................................................... 18 Revenue Requirements ......................................................................................................................... 18 Operation and Maintenance Expense ............................................................................................ 18 Wastewater Rate Study
City of Buena Park
Table of Contents (continued)
Page
Wastewater Capital Improvement Program........................................................................................... 19 Wastewater Financial Plan .................................................................................................................... 20 Proposed Revenue Adjustments.................................................................................................... 20 Wastewater Cost of Service ................................................................................ 23 Industry Methodology .................................................................................................................................... 23 Costs of Service to be Allocated ................................................................................................................... 23 Cost Allocation to Wastewater Parameters ................................................................................................... 24 Unit of Service ............................................................................................................................................... 26 Unit Costs of Service ..................................................................................................................................... 26 User Class Costs ........................................................................................................................................... 27 Wastewater Rates ................................................................................................. 28 Design of Wastewater Rates ......................................................................................................................... 28 Proposed Variable Charges................................................................................................................... 28 Proposed Wastewater Rates ................................................................................................................. 29 Wastewater Bill Impact Analysis ......................................................................... 29 Wastewater Rate Survey ...................................................................................... 31 List of Tables
Table ES-1 Proposed Wastewater Revenue Adjustments ............................................................................... 5 Table ES-2 Current and Proposed Wastewater Fixed and Variable Charges .................................................. 7 Table ES-3 Comparison of Current Single-family Residential Bi-Monthly Wastewater Bill with 3/4-inch Meter with Proposed Bill Using January 2024 Wastewater Rates .................................. 8 Table ES-4 Local Community Rate Structures ............................................................................................... 10 Table 1 Assumptions and Planning Factors .............................................................................................. 13 Table 2 June 30, 2022 Beginning Fund Balances and Reserve Targets ................................................... 14 Table 3 Historical and Projected Average Number of Wastewater Customers by Classification ............. 15 Table 4 FY 2021-22 Wastewater Accounts by Meter Size........................................................................ 16 Table 5 Historical and Projected Water Consumption of Wastewater Customers (1,000 gal) .................. 17 Table 6 Projected Rate-based Wastewater Revenue from Current Rates ............................................... 17 Table 7 Projected Wastewater Miscellaneous Revenue ........................................................................... 18 Table 8 Projected Wastewater Operation and Maintenance Expense ..................................................... 19 Table 9 Wastewater Capital Improvement Program ................................................................................. 19 Table 10 Wastewater Financial Plan ........................................................................................................... 21 Table 11 Wastewater Costs to be Recovered From Rates ......................................................................... 24 Wastewater Rate Study
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Table 12 Allocation of Revenue Requirements to Cost Component ........................................................... 26 Table 13 Development of Unit Costs ........................................................................................................... 27 Table 14 Distribution of Costs to Customer Classes ................................................................................... 27 Table 15 Design of Wastewater Rates ........................................................................................................ 28 Table 16 Current and Proposed Wastewater Fixed and Variable Charges ................................................ 29 Table 17 Comparison of Current Single-family Residential Bi-Monthly Wastewater Bill with Proposed Bill Using January 2024 Wastewater Rates................................................................. 30 Table 18 Local Community Rate Structures ............................................................................................... 31 List of Figures
Figure ES-1 Wastewater Financial Plan ............................................................................................................. 5 Figure ES-2 Comparison of Wastewater Year End Cash Balances with Target Reserves ............................... 6 Figure ES-3 Comparison of Current and Future Single-family Residential Bi-monthly Wastewater Bills with 3/4-inch Meter at 19 kgal ........................................................... 8 Figure ES-4 Single-family Residential Bi-monthly Wastewater Bill Impacts with 3/4-inch Meter Using Proposed January 1, 2024 Wastewater Rates .................................................................... 9 Figure ES-5 Multifamily Residential Bi-monthly Wastewater Bill Impacts with 2-inch Meter Using Proposed January 1, 2024 Wastewater Rates ................................................................... 9 Figure ES-6 Commercial Bi-monthly Wastewater Bill Impacts with 6-inch Meter Using Proposed January 1, 2024 Wastewater Rates .................................................................. 10 Figure 1 Wastewater Financial Plan Comparison of Revenue with Annual Obligations ............................ 22 Figure 2 Comparison of Wastewater System Cash Reserves with Target Reserves ................................ 23 Figure 3 Comparison of Average Single-family Residential Current Bills with Projected Future Bills ........ 30 List of Charts
Chart ES-1 Comparison of Buena Park Single-family Residential Bi-Monthly Wastewater Bills with Other Communities with 3/4-inch Meter Using 19 kgal ........................................................... 5 Chart 1 Comparison of Buena Park Single-family Residential Bi-Monthly Wastewater Bills with Other Communities with 3/4-inch Meter Using 19 kgal ......................................................... 32 List of Appendices
Appendix A-1 Allocation of Revenue Requirements to Cost Component ........................................................... 34 Appendix A-2 Units of Service ............................................................................................................................ 35
Wastewater Rate Study City of Buena Park
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Executive Summary
The City of Buena Park (City) engaged Tuckfield & Associates to perform a comprehensive Wastewater Rate Study (Study) for the City. The Study consisted of developing a long-range wastewater system financial plan, determining the cost of providing wastewater service to City customers, and designing wastewater rates for implementation. The overall objectives of the Study included the following.
1. Ensure revenue is sufficient to meet the annual operation and maintenance (O&M) expense and capital needs of the wastewater system.
2. Ensure that rates are fair and equitable and follow industry cost of service guidelines.
3. Provide revenue stability, preserve the overall financial health of the wastewater system, and maintain adequate operating and capital reserves.
This report documents the assumptions, cash position, methodologies, analyses, and proposed rates developed during the Study. The executive summary provides an overview of the Study, including recommendations of wastewater rates for the period fiscal year (FY) 2023-24 to FY 2027-28 (the “Study Period”).
Background
The City provides wastewater service to a population of about 83,500 (California Department of Finance, January 2023), covering a service area of about 11 square miles. The City serves predominantly residential customers while also serving a mix of commercial, industrial, and entertainment customers.
The City’s largest water users consist of Ameripec, Knotts Berry Farm, and Los Coyotes Country Club.
The City owns, operates, and maintains a collection system that collects wastewater from the City’s customers through 168 miles of sewer lines of various sizes. The collection system does not have lift stations and all wastewater flows by gravity. The wastewater collected is discharged into a large trunk sewer owned by the Orange County Sanitation District (OCSD) for wastewater treatment service and disposal at OCSD’s treatment plant. OCSD’s treatment and disposal charges are placed on the county tax rolls for payment.
Method
To meet the objectives discussed above, general tasks employed to complete the wastewater rate study and design rates include the following.
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1. Developing long-term financial plans that meet the wastewater utilities’ operating revenue requirements while adequately funding reserves in accordance with industry best practices and the City’s goals.
2. Conducting cost of service (COS) analyses that establishes a connection between the cost to serve customers and the responsibility of each class, in compliance with Proposition 218 and based on industry standard methodologies.
3. Designing five years of wastewater rates that comply with Proposition 218 and ensure financial sufficiency to fund operating costs over the study period.
Working with City staff, the objectives were prioritized to design appropriate wastewater rates. These prioritized objectives included considering a rate structure that promotes fairness and equity between customer classes, that allows ease of customer understanding, recognizes affordability, and minimizes impacts to customers. The proposed wastewater rates and the wastewater rate structure proposed in this Study are recommended to best meet these objectives. Wastewater costs and financial planning were discussed with City staff to minimize financial impacts to the greatest extent possible.
Process and Approach
Several meetings were held with City staff to discuss and understand the objectives, characteristics, and challenges of the City’s wastewater utility. The meetings provided an opportunity to develop the recommendations and results detailed in this report. Various assumptions and inputs were confirmed and an iterative process was used to view several scenarios to determine the recommended financial plan and rates for service.
A cost of service and rate model was developed and used to analyze various rate scenarios to fully fund the wastewater utilities’ operating revenue requirements through fair, equitable, and defensible cost- based rates. The COS analysis and resulting wastewater rates are developed using the principles established by the Water Environment Federation’s (WEF) Financing and Charges for Wastewater Systems Manual of Practice No.27.
Cost-Based Rate-Setting Methodology
To develop wastewater rates that comply with Proposition 218, meet industry standards, and accomplish the City’s goals for the study, four major steps were followed as discussed below.
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Revenue Requirement Calculation
The first step in the rate-making process is to determine the adequate and appropriate level of funding for a given utility. The annual costs of providing wastewater service, or revenue requirement, for the forward-looking financial plan considers the short-term and long-term service objectives of the utility over the planning horizon. The financial plan includes consideration of capital facilities, operations and maintenance (O&M), non-rate sources of revenues, and financial reserve policies to determine the adequacy of a utility’s current rates to recover its costs. Several factors affect these projections, including the number of customers served, water use trends, non-recurring revenues, conservation, use restrictions, inflation, interest rates, capital financing needs, and other changes in operating and economic conditions, among others.
Cost of Service Analyses
The cost-of-service analysis utilized to develop the wastewater rates follows the guidelines for allocating costs outlined in the Water Environment Federation (WEF) Manual of Practice No. 27. The cost-of-service analysis and rate design process consists of the major steps outlined below.
1. Allocate functionalized O&M expenses to cost components that may include wastewater flow, strength, customer, and general.
2. Develop customer class characteristics and units of service by cost component.
3. Calculate the unit cost rate of each cost component by dividing the total cost of each cost component by the total units of service for that component.
4. Calculate the cost of service for each customer class by multiplying the unit cost by the units of service for each customer class.
Wastewater Rate Design
Rates are designed to recover the various customer classes’ cost of service and achieve the City’s objectives. Within the legal framework and industry standards, properly designed rates should support and optimize a blend of objectives, such as revenue stability, conservation, affordability, and customer understanding, among others. Rates act as a public information tool in communicating these objectives to customers.
Wastewater Rate Adoption
Wastewater rates proposed for implementation must comply with Proposition 218. Proposition 218 was enacted by the voters to ensure that fees and charges for wastewater service to a property are Wastewater Rate Study City of Buena Park
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proportional to, and do not exceed, the cost of providing service. The wastewater rates developed in this study were designed based on industry standards and following the state’s Proposition 218 legal requirements. The methodology allocates costs consistent with the function of wastewater facilities and their associated costs. This report documents the proposed rates and provides the basis upon which the rates were calculated, the rationale and justifications behind the proposed charges, any changes to rate structures, and anticipated financial impacts to ratepayers.
Current Wastewater Rates
Wastewater customers of the City are currently charged eleven percent (11%) of their water bill. The customer’s bi-monthly water bill charges a fixed charge based on their meter size and a water volume usage rate for every 1,000 gallons of water read from their water meter. The wastewater revenue received is dependent upon the water sales volumes of the City’s water system.
Wastewater Financial Plan
A financial plan was developed for the wastewater enterprise that projected revenue and revenue requirements (costs) for the system. The proposed financial plan detailed in this report follows industry standards for long-term financial planning. Working closely with City staff, revenues and expenses were projected to reinforce sound fiscal management practices. The financial plan utilizes fiscal year (FY) 2022-23 as the first year and then projects FY 2023-24 through FY 2027-28 as the five-year rate-setting period. Each fiscal year begins on July 1 and ends on June 30. The proposed rates were developed for implementation beginning on January 1, 2024 and each January 1 thereafter through FY 2027-28.
The financial plan relies on reasonable assumptions based on industry indices, such as general inflation from the Consumer Price Index (CPI), and input from City staff. The financial plan’s operation and maintenance expense increases annually which reflects a weighted average of inflation across several categories including personnel costs, energy, and general.
The financial plan maintains the existing City’s goals for cash reserves. The reserves include an Operating Reserve of 25 percent (90 days) of operation and maintenance expense and a Capital Reserve equal to the average annual spending of the City’s wastewater capital improvement plan (CIP).
Wastewater Financial Plan Results
Table ES-1 below presents the results of the financial plan and the proposed revenue increases necessary to maintain the revenue sufficiency, fund the operating and capital requirements, and achieve the reserve targets of the wastewater enterprise. The proposed revenue adjustments Wastewater Rate Study City of Buena Park
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represent increases to total revenue received from rates, necessary to recover the projected O&M expense and CIP spending and achieve cash reserve goals.
Figure ES-1 illustrates the 10-year financial plan for FY 2022-23 to FY 2031-32. The stacked bars represent the cost of the utility including O&M expense (blue bars), CIP spending (green bars), and contribution to cash reserves (purple bars). Current revenues (black line) are not sufficient to meet projected future costs. If the revenue adjustments from Table ES-1 are implemented, projected revenues with the increases (red line) will meet annual revenue requirements and accumulate cash reserves to target levels.
Table ES-1
Proposed Wastewater Revenue Adjustments
[1] The revenue adjustment this year may not match Tables ES-2 and Figure ES-3 due to rate structure change and cost of service adjustments.
Projected
Revenue Adjustment FY 23-24 [1] FY 24-25 FY 25-26 FY 26-27 FY 27-28 Effective Date January 1,
2024
January 1,
2025
January 1,
2026
January 1,
2027
January 1,
2028
Percent Adjustment 42.5% 3.0% 3.0% 3.0% 3.0%
Figure ES-1
Wastewater Financial Plan
$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32Revenues and Revenue Requirements ($ Millions)O&MCapital SpendingReserves IncreaseRevenue with IncreasesRevenue w/o Increases Wastewater Rate Study City of Buena Park
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Figure ES-2 shows the end of year cash balance of the wastewater utility for FY 2022-23 to FY 2031-32.
The figure indicates that if the revenue adjustments are implemented, the wastewater utility will achieve the operating and capital target reserves by the 10th year in FY 31-32.
Proposed Wastewater Rate Structure and Rates
Workshops were conducted with City staff that explored various rate structures which could be used for wastewater systems. The City’s options for rate structures were limited due to the information that was available from the City.
The current wastewater charge is equal to 11 percent of the customer’s water bill. The rate structure selected to replace it is a variable rate structure that charges for wastewater service based on metered water consumption. A customer will be charged according to one of three classifications consisting of Single-family Residential (SFR), Multifamily Residential (MFR), and Commercial (COM).
Figure ES-2
Comparison of Wastewater End of Year Cash Balances with Target Reserves
$0.0$0.5$1.0$1.5$2.0$2.5$3.0FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32Revenues and Revenue Requirements ($ Millions)End of Year Cash ReservesTarget Reserves Wastewater Rate Study City of Buena Park
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Table ES-2 presents the proposed usage rates for the next five years of FY 2023-24 through FY 2027-28 based on the Study recommendations. The rates are based on the COS analyses, discussions with City staff, and proposed revenue adjustments in Table ES-1.
Wastewater Bill Impacts
SFR customers represent 90 percent of the total number of customers of the wastewater system. The average SFR customer with a 3/4-inch meter (84 percent of SFR users) using the average water consumption of 19 thousand gallons (kgal) bi-monthly will have an increase in their wastewater bill from $9.59 to $12.35, an increase of $2.76 or 28.8 percent. Table ES-3 shows the bi-monthly bills at various levels of water use. Figure ES-3 shows how the average bi-monthly bill will increase with the proposed wastewater rates.
Table ES-2
Current and Proposed Wastewater Fixed and Variable Charges
Current Jan 1, Jan 1, Jan 1, Jan 1, Jan 1,
Rates 2024 2025 2026 2027 2028
Fixed Charge ($ per bi-month)
5/8 or 3/4-inch $4.59
1-inch $7.65
1 1/2-inch $15.30
2-inch $24.47
3-inch $48.95
4-inch $76.48
6-inch $152.96
8-inch $244.73
10-inch $351.80
Variable Charge ($ per 1,000 gal)
Single Family $0.26 $0.65 $0.67 $0.69 $0.71 $0.73
Multi-family $0.26 $0.80 $0.82 $0.85 $0.87 $0.90
Commercial $0.26 $0.87 $0.89 $0.92 $0.95 $0.98
Customer Class
Meter Size
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Figures ES-4, ES-5, and ES-6 present bi-monthly wastewater bill impacts to SFR, MFR, and COM wastewater bills respectively at various levels of usage from the implementation of the proposed January 1, 2024 wastewater rates. The meter sizes chosen for SFR and MFR are the most common for the class.
Table ES-3
Comparison of Current Single-family Residential Bi-monthly Wastewater Bills With 3/4-inch Meter With Proposed Bills Using January 2024 Wastewater Rates
Current Bill Proposed FY 23-24 Bill
Service Volume Current Service Volume Proposed Dollar Percent Descrip Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $4.59 $0.00 $4.59 $0.00 $0.00 $0.00 ($4.59) -100.0%
5 $4.59 $1.31 $5.90 $0.00 $3.25 $3.25 ($2.65) -44.9%
10 $4.59 $2.63 $7.22 $0.00 $6.50 $6.50 ($0.72) -10.0%
15 $4.59 $3.94 $8.53 $0.00 $9.75 $9.75 $1.22 14.3%
Average 19 $4.59 $5.00 $9.59 $0.00 $12.35 $12.35 $2.76 28.8% 25 $4.59 $6.57 $11.16 $0.00 $16.25 $16.25 $5.09 45.6%
30 $4.59 $7.89 $12.48 $0.00 $19.50 $19.50 $7.02 56.3%
50 $4.59 $13.15 $17.74 $0.00 $32.50 $32.50 $14.76 83.2% Figure ES-3
Comparison of Current and Future Single-family Residential Bi-monthly Wastewater Bills with 3/4-inch Meter at 19 kgal
[1] The percentage change in this year does not match overall increase due to cost of service adjustments. [2] The percentage change in years after the first year may not match overall increases due to rounding.
Proposed
Jan 1, Jan 1, Jan 1, Jan 1, Jan 1,
SFR Charges Current 2024 [1] 2025 2026 2027 2028
Fixed Charges $4.59 $0.00 $0.00 $0.00 $0.00 $0.00
Variable Charges $5.00 $12.35 $12.73 $13.11 $13.49 $13.87 Total Charges $9.59 $12.35 $12.73 $13.11 $13.49 $13.87
Dollar Change $2.76 $0.38 $0.38 $0.38 $0.38
Percent Change [2] 28.8% 3.1% 3.0% 2.9% 2.8%
$9.59
$12.35 $12.73 $13.11 $13.49 $13.87
$0
$2
$4
$6
$8
$10
$12
$14
$16
Current 2024 [1] 2025 2026 2027 2028
Fixed Charges Variable Charges
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Figure ES-4
Single-family Residential Bi-monthly Wastewater Bill Impacts with 3/4-inch Meter Using Proposed January 1, 2024 Wastewater Rates
Very Low 5 kgal Low 10 kgal Average 19 kgal High 25 kgal Very High 30 kgal Current $5.90 $7.22 $9.59 $11.16 $12.48
Proposed $3.25 $6.50 $12.35 $16.25 $19.50
Dollar Change ($2.65) ($0.72) $2.76 $5.09 $7.02
Percent Change -44.9% -10.0% 28.8% 45.6% 56.3%
$0
$5
$10
$15
$20
$25
Very Low 5 kgal Low 10 kgal Average 19 kgal High 25 kgal Very High 30 kgal Current Proposed
Figure ES-5
Multifamily Residential Bi-monthly Wastewater Bill Impacts with 2-inch Meter Using Proposed January 1, 2024 Wastewater Rates
50 kgal 100 kgal 175 kgal 250 kgal 300 kgal
Current $37.62 $50.76 $70.48 $90.20 $103.34
Proposed $40.00 $80.00 $140.00 $200.00 $240.00
Dollar Change $2.38 $29.24 $69.52 $109.80 $136.66
Percent Change 6.3% 57.6% 98.6% 121.7% 132.2%
$0
$50
$100
$150
$200
$250
$300
50 kgal 100 kgal 175 kgal 250 kgal 300 kgal
Current Proposed
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Wastewater Survey
A wastewater rate survey was conducted for neighboring communities to the City of Buena Park. Table ES-4 provides the rate structures used by local communities selected by the City. The table shows that the cities of Brea and Stanton use a fixed charge rate structure whereas Placentia, Fullerton, and La Palma use a variable rate structure.
Figure ES-6
Commercial Bi-monthly Wastewater Bill Impacts with 6-inch Meter Using Proposed January 1, 2024 Wastewater Rates
200 kgal 400 kgal 700 kgal 1000 kgal 1500 kgal
Current $205.54 $258.12 $336.99 $415.86 $547.31
Proposed $174.00 $348.00 $609.00 $870.00 $1,305.00
Dollar Change ($31.54) $89.88 $272.01 $454.14 $757.69
Percent Change -15.3% 34.8% 80.7% 109.2% 138.4%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
200 kgal 400 kgal 700 kgal 1000 kgal 1500 kgal
Current Proposed
Table ES-4
Local Community Rate Structures
Rate SFR MFR Commercial
City Structure Fixed Variable Fixed Variable Fixed Variable $/bi-mo $/1,000 gal $/bi-mo $/1,000 gal $/bi-mo $/1,000 gal Brea Fixed $18.86 $11.82 $156.26 [1]
Stanton Fixed $12.04 $9.63 12.04 [2]
Placentia Variable $0.47 $0.52 $0.49
Fullerton Variable $1.90 $1.90 $1.90
La Palma Variable $1.14 $1.14 $1.14
[1] A fixed charge that varies based on assigned w astew ater flow in feet per minute. [2] Charge per 1,000 sf for standard commercial customer.
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Chart ES-1 has been prepared to compare the City’s average SFR wastewater bill with those of other communities, both with a 3/4-inch meter using the City’s SFR average consumption of 19 kgal per month.
The communities selected are local to the City and were based on discussions with City staff. The chart indicates that the City’s SFR wastewater bill with the January 1, 2024 increase will be in the mid-range of the communities listed.
Chart ES-1
Comparison of Buena Park Single-family Residential Bi-monthly Wastewater Bills with Other Communites with 3/4-inch Meter Using 19 kgal
Note: Above table uses wastewater rates in effect July 2023. Bills are based on each agency’s published rate schedule. City of Buena Park January 2024 bill is based on the rate structure and rates in Table ES-2.
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Introduction
The City of Buena Park (City) engaged Tuckfield & Associates to perform a Wastewater Rate Study (Study) for its wastewater collection system. This Study develops pro forma statements of revenues and revenue requirements, determines the cost of providing service to customer classifications, and designs new rates and charges for implementation.
Objectives
The objectives of this Study are to (1) ensure revenue is sufficient to meet the annual operation and maintenance (O&M) expense and capital needs of the wastewater system, (2) ensure that rates are fair and equitable and follow industry cost of service guidelines, and (3) provide revenue stability, preserve the overall financial health of the wastewater system, and maintain adequate operating and capital reserves.
Scope of the Study
Numerous workshops were conducted with City staff to discuss the issues, assumptions, and rate structures associated with designing the wastewater rates proposed in this Study. This report includes the findings and recommendations from the workshops and from analyzing the wastewater system’s financial status and related capital improvement plan (CIP) projects. Historical trends were analyzed from data supplied by the City showing the number of customers, volumes, revenue, and revenue requirements.
Revenue requirements include operation and maintenance (O&M) expense, routine capital outlays, CIP funding, debt service, and additions to reserves. Changing conditions such as additional facilities, system growth, employee additions/reductions, and non-recurring maintenance expenditures are recognized.
Inflation for ongoing expenditures is included to reflect cost escalation.
The financial plan and rates developed herein are based on funding of the CIP and estimates of FY 2022- 23 O&M expenses provided by the City. Deviation from the financial plans, construction cost estimates and funding requirements, major operational changes, or other financial policy changes that were not foreseen, may result in the need for lower or higher revenue than anticipated. It is suggested that the City conduct an update to the rate study at least every three to five years for prudent rate planning.
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Assumptions
Several assumptions were used to conduct the Study for the period FY 2022-23 to FY 2027-28. The assumptions included growth rates in customer accounts and related consumption, interest earnings rates, and expense inflation factors for projecting revenue and expense. The financial planning assumptions are provided in Table 1.
Reserve Policy
The City’s goal is to provide operating and capital cash reserves for its wastewater system consistent with its needs. The reserves provide a means to meet unanticipated reductions in revenues, meet changes in the costs of providing services, provide for fixed asset repair and replacement, natural disaster needs, and other issues. The reserves levels also provide guidelines to maintain the financial health and stability of the wastewater enterprise. The reserve types and the amount of reserves used in this Study are discussed below.
Operating Reserve
The purpose of the Operating Reserve is to provide working capital to meet cash flow needs during normal operations and support the operation, maintenance, and administration of the utility. This reserve Table 1
Assumptions and Planning Factors
Description Value
Annual Account & Demand growth [1]
Residential 0.25%
All Other 0.25%
Interest earnings on fund reserves (annual)2.50%
Cost Escalation
Personnel Services [2] 5.0%
Benefits 8.0%
Electrical Power 3.0%
Chemicals 3.0%
All Other Operations & Maintenance 2.0%
Capital 3.0%
[1] Annualized growth in sewer accounts is based on historical information provided by staff.
[2] Personnel Services growth in staffing, promotions, and inflation is 5.0% annually.
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ensures that operations can continue should there be significant events that impact cash flows. The target balance to be maintained is 25 percent (90 days) of the annual wastewater operating expense budget which may increase annually with the City’s future expense budgets.
Capital Replacement Reserve
The purpose of the Capital Replacement Reserve is to fund future replacement of fixed assets and fund Capital Improvement Plan (CIP) projects. The capital reserves are used to fund the replacement of collection lines and other collection facilities and equipment as they reach their useful life or obsolescence. The reserve target has been established as the average annual CIP spending over the next five years.
Beginning Balances and Reserve Targets
As of June 30, 2022, the City’s beginning reserve balances for the wastewater enterprise are listed in Table 2 below. The reserves are used in developing the financial plan for the wastewater utility system.
The Target Reserves are also provided in the table. The table indicates that the current cash reserves for the wastewater system are slightly lower than desired based on the City’s goals and will be increased through the rates designed in this Study.
Wastewater Financial Planning
Financial planning for the wastewater enterprise includes identifying and projecting revenues and revenue requirements of the wastewater system for a five-year planning period. Estimates of revenue from various sources are compared with the projected revenue requirements. This comparison allows Table 2
June 30, 2022 Beginning Fund Balances and Reserve Targets
Wastewater
Reserve Reserve
Reserve Type Balance Target
Operating Fund Reserve $162,000 $162,000
Capital Replacement Reserve $941,468 $1,537,400
Total $1,103,468 $1,699,400
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the review of the sufficiency of existing revenue to meet projected annual revenue requirements, which provides the basis for any revenue adjustments. New wastewater rates and charges are created in a later section of this report to recover the City’s projected annual operating and capital costs associated with the wastewater system.
This section discusses the current wastewater rates, user classifications, revenues and revenue requirements, planned CIP projects and financing sources, and proposed revenue adjustments.
Current Wastewater Rates
The current wastewater rates consist of charges to all wastewater system customers equal to 11 percent of their water bill. When a customer receives their bi-monthly bill, a line item on the bill shows the total water bill and then a separate line item for the wastewater bill.
Wastewater User Classifications
Number of Customers
The City’s wastewater customer classifications are the same as the water customers with the exception of Irrigation customers. Since landscape irrigation water use does not return to the sewer collection system, these customers are not charged for wastewater service. The wastewater customer classifications are Single-family Residential SFR), Multifamily residential (MFR), and Commercial (COM) classifications.
Residential customers account for about 90 percent of the total accounts served by the wastewater system. Growth in all accounts reflects the City’s historical growth pattern of 0.25%, which is about 40 new accounts annually for the SFR class. Table 3 provides the historical and projected average number of accounts/customers by classification.
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Number of Water Meters of Wastewater Customers
Table 4 provides a summary of the current average number of wastewater customers by meter size. The majority of SFR customers have 3/4-inch meters (84 percent) installed at the service location. MFR customers show a range of meter sizes from 3/4-inch to 6-inch with 2-inch being the most common. COM customers have a wider range of meter sizes from 3/4-inch to 10-inch with 2-inch being the most common. It is assumed that all new SFR customers will have 1-inch meters installed at the service location and this is the minimum size for new meter installations for the City’s customer base.
Water Sales Volumes of Wastewater Customers
Table 5 provides the historical and projected water sales volumes of wastewater customers by classification. Water sales volumes were projected by recognizing the growth in the number of accounts and the FY 2021-22 use per customer. SFR customers account for more than 52 percent of the water sales volumes of wastewater customers.
Table 3
Historical and Projected Average Number of Wastewater Customers by Classification
Historical Projected
Customer Class FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Number of Accounts
Single Family 16,865 16,907 16,949 16,991 17,033 17,076 17,119 Multi-family 690 692 694 696 698 700 702
Commercial 1,069 1,072 1,075 1,078 1,081 1,084 1,087
Total Accounts 18,624 18,671 18,718 18,765 18,812 18,860 18,908 Table 4
FY 2021-22 Wastewater Accounts by Meter Size
Type of Use 3/4" 1" 1.5" 2" 3" 4" 6" 8" 10"
Number of Accounts
Single Family 14,218 2,609 31 7
Multi-family 125 183 173 191 12 3 3
Commercial 254 180 171 352 57 43 6 4 2
Total Number of Accounts14,597 2,972 375 550 69 46 9 4 2 Wastewater Rate Study City of Buena Park
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The water sales volumes of wastewater customers are used to estimate wastewater discharge volumes by classification. The wastewater discharge volumes (wastewater flow) are used for cost allocation purposes to assign cost responsibility to customer classes.
Wastewater Financial Plan
The financial plan provides the means of analyzing the sufficiency of revenue to meet revenue requirements of the wastewater system, the impact on reserves, and the ability to fund on-going O&M expense and capital infrastructure requirements. Discussed below are the projection of revenue, O&M expense, CIP needs of the wastewater system and its financing, and revenue adjustments needed to maintain a sustainable wastewater enterprise.
Revenues
The Sewer Fund receives revenue from charges for wastewater service and miscellaneous sources.
Wastewater service revenue is received by from current wastewater charges equal to an 11 percent surcharge on water revenue. Table 6 provides the projection of wastewater service revenue for the City.
Table 5
Historical and Projected Water Consumption of Wastewater Customers (1,000 gallons)
Historical Projected [1]
Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Single Family 1,935,749 1,772,322 1,776,725 1,781,128 1,785,531 1,790,038 1,794,546 Multi-family 649,050 594,255 595,733 597,211 598,690 600,168 601,646 Commercial 1,102,280 1,009,538 1,012,363 1,015,188 1,018,013 1,020,838 1,023,664 Total Projected Consumption3,687,079 3,376,115 3,384,821 3,393,527 3,402,234 3,411,044 3,419,856 [1] Forecast assumes that the use per customer from FY 21-22 and applied to the number of customers.
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Miscellaneous Revenue
Currently only interest income is identified as a miscellaneous source of revenue for the wastewater system. Table 7 below provides the projection of interest income.
Revenue Requirements
Revenue requirements of the wastewater system include expenses associated operating and maintaining the wastewater system and annual capital improvement spending on replacement and new improvements.
Operation and Maintenance Expense
O&M are an on-going obligation of the wastewater system and such costs are normally met from wastewater service revenue. O&M includes the cost to operate and maintain the wastewater collection system and lift stations facilities. Costs also include personnel services, technical services and other general and administrative expenses.
Table 6
Projected Rate-based Wastewater Revenue from Current Rates
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Wastewater Service Revenues
Wastewater Charges [1] $1,751,383 $1,756,441 $1,761,453 $1,766,713 $1,772,211 $1,777,343 Total Wastewater Service Revenue $1,751,383 $1,756,441 $1,761,453 $1,766,713 $1,772,211 $1,777,343 [1] Charges for w astew ater service are 11 percent of the customer's w ater bill.
Table 7
Projected Wastewater Miscellaneous Revenue
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Interest Income $30,496 $30,548 $29,729 $33,850 $38,053 $42,320 Total Miscellaneous Revenues $30,496 $30,548 $29,729 $33,850 $38,053 $42,320 Wastewater Rate Study City of Buena Park
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O&M has been projected recognizing the major expense categories of personnel services, electric power expense, chemicals, capital outlay, and all other expenses. Personnel costs consist of salaries and benefits expense of those personnel directly involved with providing wastewater service. Salaries expense is projected to increase by 5 percent annually while benefits expense is also projected to increase by 8 percent annually. Electric power expense is projected to increase annually at 3 percent while chemicals expense increases by 3 percent. All other O&M expenses are projected to increase by 2 percent annually. Capital outlay is projected to increase by 3 percent annually. Table 8 provides a summary of the wastewater O&M expenses for the Study period.
Wastewater Capital Improvement Program
The City has developed a CIP that lists wastewater capital expenditures for FY 2022-23 through FY 2027- 28, presented in Table 9. The CIP consists of various miscellaneous sewer improvements, utility main lining, sewer manhole rehabilitations, and other CIP sewer projects that the City estimates are needed to maintain a safe and reliable wastewater system for its citizens and service area. The City estimates that it will spend approximately $9.5 million over this period. The CIP is proposed to be funded through City wastewater rates and charges revenue and cash reserves.
Table 8
Projected Wastewater Operation and Maintenance Expense
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Personnel Services
Regular Salaries and Overtime $265,583 $295,729 $310,662 $326,352 $342,840 $360,166 Benfits 139,685 159,911 172,705 186,522 201,444 217,557 Subtotal $405,268 $455,640 $483,367 $512,874 $544,284 $577,723 Wastewater Operations and Maintenance
Prof / Contractual Service $39,250 $40,035 $40,836 $41,653 $42,486 $43,336 Professional Services - City 12,600 12,852 13,109 13,371 13,638 13,911 Equipment Rental and Maintenance 165,260 168,565 171,936 175,374 178,881 182,458 Lab/Chemicals Supplies 1,500 1,545 1,591 1,639 1,688 1,739 Supplies 6,220 6,344 6,471 6,601 6,733 6,867 Machinery Equip 10,155 10,358 10,565 10,776 10,992 11,212 All Other 8,845 9,022 9,202 9,385 9,574 9,764 Subtotal $243,830 $248,721 $253,710 $258,799 $263,992 $269,287 Total Wastewater System O&M Expense $649,098 $704,361 $737,077 $771,673 $808,276 $847,010 Wastewater Rate Study City of Buena Park
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Wastewater Financial Plan
A financial plan has been prepared for the wastewater utility that includes the revenues and revenue requirements that were identified for the wastewater system. The plan is presented in Table 10 and incorporates specific financial planning goals to provide guidance to maintain the health of the wastewater utility on an on-going basis. The goals included the following items.
Generate positive levels of income in each year of the Study period Provide funding of the capital improvement plan requirements Maintain the operating and capital reserves at or greater than Target levels Maintain any debt service coverage requirement ratios at or greater than the minimum required Proposed Revenue Adjustments
Table 10 provides the annual revenue increases recommended to meet the financial planning goals for the five-year Study period. The financial plan indicates that annual revenue increases of 42.5 percent are recommended on January 1, 2024 followed by 3.0 percent increases annually on each January 1 through FY 2027-28. The increases are necessary to meet the planning goals discussed above.
Table 9
Wastewater Capital Improvement Program [1]
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Misc. Sewer System Imp. $100,000 $103,000 $106,100 $109,300 $112,600 $115,900 Utility Main Lining 500,000 515,000 530,500 546,400 562,800 579,600 Sewer Manhole Rehab 300,000 309,000 318,300 327,800 337,700 347,800 CIP Project(s) - Sewer - 695,300 716,100 737,600 759,700 782,500 Total Wastewater CIP $900,000 $1,622,300 $1,671,000 $1,721,100 $1,772,800 $1,825,800 [1] City provided information.
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A graphical depiction of the revenue and revenue requirements from Table 10 is presented in Figure 1.
Revenue using the current rates is shown as the black line while revenue with increases described above is shown as the red line. The figure shows that implementation of the proposed revenue increases will provide sufficient revenue to allow the wastewater enterprise to meet its annual O&M expense, capital spending requirements, and cash contributions to reserves as represented in the figure.
The figure indicates that while the current level of revenue meets the wastewater system annual O&M requirements, it will not provide sufficient revenue to meet the future CIP spending needs of the Table 10
Wastewater Financial Plan
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Proposed Revenue Increase (January 1) 42.5% 3.0% 3.0% 3.0% 3.0% Wastewater Operations
Revenue
Projected Wastewater Service Revenue [1] $1,751,383 $1,756,441 $1,761,453 $1,766,713 $1,772,211 $1,777,343 Total Additional Wastewater Service Revenue [2] 0 311,036 779,994 858,794 940,477 1,024,817 Interest Income [3] 30,496 30,548 29,729 33,850 38,053 42,320 Total Revenues $1,781,879 $2,098,025 $2,571,176 $2,659,357 $2,750,741 $2,844,480 Revenue Requirements
Operation and Maintenance Expense $649,098 $704,361 $737,077 $771,673 $808,276 $847,010 Total Revenue Requirements $649,098 $704,361 $737,077 $771,673 $808,276 $847,010 Net Funds Available Before Capital $1,132,781 $1,393,664 $1,834,099 $1,887,684 $1,942,465 $1,997,470 Wastewater Capital
Capital Improvement Program $900,000 $1,622,300 $1,671,000 $1,721,100 $1,772,800 $1,825,800 Total Capital Improvement Spending $900,000 $1,622,300 $1,671,000 $1,721,100 $1,772,800 $1,825,800 Net Funds After Capital $232,781 ($228,636) $163,099 $166,584 $169,665 $171,670 Available Operating and Capital Reserves
Available Reserves
Beginning available reserves [4] $1,103,468 $1,336,249 $1,107,613 $1,270,712 $1,437,296 $1,606,961 Additions (reductions) 232,781 (228,636) 163,099 166,584 169,665 171,670 Ending available reserves 1,336,249 1,107,613 1,270,712 1,437,296 1,606,961 1,778,631 Target Reserves [5] 1,834,400 1,898,600 1,958,300 2,020,500 2,084,300 2,150,800 Above (below) Target ($498,151) ($790,987) ($687,588) ($583,204) ($477,339) ($372,169) [1] Projected Revenue from Table 6.
[2] Additional revenue from proposed rate adjustments. [3] Interest earnings on the average fund balance calculated at 2.50%. [4] The available beginning FY 22-23 cash balance provided by City. [5] Target reserve includes both operating and capital reserve targets.
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system. In FY 2022-23, the level of CIP spending has been reduced from the level needed to provide funding for the CIP and to increase cash reserves. The following year in FY 2023-24, the level of CIP spending required is restored to a level necessary to maintain a safe and reliable wastewater enterprise system.
Figure 2 compares the wastewater system projected cash reserves (operating and capital) with the Target reserves. The blue columns represent the cash reserve balance at the end of year while the red line indicates the Target reserve level. The figure shows that the cash reserve balance (blue columns) is below the Target reserve (red line) in the initial years of the Study Period, however, it is projected to reach the Target reserve in the last year of the 10-year financial plan.
Figure 1
Wastewater Financial Plan
Comparison of Revenue with Revenue Requirements
$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32Revenues and Revenue Requirements ($ Millions)O&MCapital SpendingReserves IncreaseRevenue with IncreasesRevenue w/o Increases Wastewater Rate Study City of Buena Park
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Wastewater Cost of Service
This section of the report discusses how the wastewater system’s operating and capital costs are allocated for use in designing rates. Establishing rates in California requires that the agency responsible for imposing property-related fees create a nexus between the cost of providing service and the rates to be imposed.
Industry Methodology
Methodology from the Water Environment Federation (WEF) is used in this Study to allocate wastewater costs in an appropriate manner. WEF is an industry trade organization that provides guidance on operations, technical training, education, and management of wastewater utilities. General principles are provided to assist agencies with the design of wastewater rates and charges that are consistent with local requirements while also recognizing state laws and legal framework.
Costs of Service to be Allocated
Table 11 provides the summary of costs to be recovered from wastewater rates for each year of the next five years. The annual revenue requirement for years FY 2023-24 through FY 2027-28 is calculated by Figure 2
Comparison of Wastewater System Cash Reserves with Target Reserves
$0.0$0.5$1.0$1.5$2.0$2.5$3.0FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32Revenues and Revenue Requirements ($ Millions)End of Year Cash ReservesTarget Reserves Wastewater Rate Study City of Buena Park
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subtracting revenue offsets (non-rate revenues such as interest income) and adjustments from the O&M expense and capital revenue requirements. The annual increase or decrease in cash is either subtracted from or added to the revenue requirement. Additionally, because the revenue increases are proposed to occur on January 1 of each year, an adjustment needs to be made for the partial year revenue increase.
The annual costs shown in Table 11 will form the basis for the proposed rates for each year.
Cost Allocation to Wastewater Parameters
This Study uses the WEF functional cost approach to cost allocation and the components for wastewater service would most often be Flow (volume), Bio-chemical Oxygen Demand (BOD), Suspended Solids (SS), and Customer. The annual cost of providing service is distributed among customer classes commensurate with their service requirements. A wastewater utility COS analysis involves the following steps.
1. Categorize Costs into System Functions: Utilizing an agency’s approved budget, financial reports, operating data, engineering data, and CIP, a rate study generally categorizes (i.e., functionalizes) the operating and capital costs of the water system among major system functions. Examples of system functions for a wastewater utility include, but are not limited to collection, pumping, treatment, disposal, and general Table 11
Wastewater Costs to Be Recovered From Rates
Projected
Description FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Wastewater Costs
Operation and Maintenance Expense $704,361 $737,077 $771,673 $808,276 $847,010 Capital Improvement Plan 1,622,300 1,671,000 1,721,100 1,772,800 1,825,800 Interest Income (30,548) (29,729) (33,850) (38,053) (42,320) Adjustments
Adjustments to Annual Cash Balance ($228,636) $163,099 $166,584 $169,665 $171,670 Adjustments to Annualize Rate Increase [1] 435,451 43,926 45,379 46,886 48,432 Total Costs to be Recovered $2,502,928 $2,585,373 $2,670,886 $2,759,574 $2,850,592 [1] Adjustment to annualize revenue from the parial year rate adjustment.
Costs Met From Other Sources
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(indirect) including engineering, finance, information technology, laboratory, and customer service.
2. Allocate Functionalized Costs to the Appropriate System Cost Components: Cost components represent the major items of a wastewater system for which the agency incurs specific costs, with one or more functions attributable to one or more system components. Wastewater components typically include Volume (Flow), Biological Oxygen Demand (BOD), Total Suspended Solids (TSS), and Customer.
3. Determine Units of Service and Unit Costs for Cost Components: Each cost component is associated with a specific unit of service; costs within each component are divided by the total units of service to determine the unit cost. For example, volume (flow) costs are associated with total annual wastewater flow. Dividing total annual costs allocated the Flow component by total annual estimate water flow yields the unit cost of treating wastewater flow.
4. Distribute Cost Components to Customer Classes: The costs of the system, allocated by system component unit costs, are distributed to customer classes in proportion to their respective demands and burdens on the system using the units of service and unit costs for each component.
Since the City’s wastewater treatment service is provided by OCSD and charged separately, the cost components related to the City’s costs are Flow and Customer only.
The City’s operating and capital costs are assigned to each of these two parameters based on recommendations in the WEF methodology. All of the City’s costs could be related to Flow, however 10 percent of the City’s O&M expense and capital costs are allocated to the Customer component to reflect WEF recommendations, recognizing that there is a minimum collection pipe size for sewer cleaning purposes that is independent of the volume transported by the sewer.
A detailed allocation is provided in Appendix A-1 for FY 2023-24. Allocations for future years are allocated similarly. The total cost to be recovered in FY 2023-24 from the users of the wastewater system is presented in Table 12.
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Units of Service
The Flow and Customer costs of service stated in Table 12 are distributed to each user customer classification (SFR, MFR, and Commercial) by identifying how each group uses the wastewater system, or their units of service. The units of service for the Flow and Customer components could be determined from the total volume of wastewater discharged to the OCSD and the number of the City’s wastewater customers/accounts.
However, the City’s wastewater flow to the OCSD is not metered and the City’s number of dwelling units is not known. Therefore, this study uses percentages applied to water consumption for customer class to estimate the wastewater flow (volume) contribution to the collection system for the Flow component.
A SFR customer is estimated to have 61 percent of their water consumption return as wastewater volume, based on the assumption that a SFR household contributes 55 gallons of wastewater per capital per day (gpcd) with a US Census estimate of 3.5 persons per household (pph). MFR and COM customers are estimated to have the percentage of their water consumption returned to sewer as wastewater volume as 75 percent and 95 percent respectively. The Commercial return percentage is higher because it is assumed that most of the City’s Commercial customers have separate irrigation meters, thereby reflecting that most of the water consumption for the class returns to the sewer.
The number of annual bills of each customer class that are mailed on a bi-monthly basis are used for the Customer component. Appendix B-1 provides the development of units of service used in the Study.
Unit Costs of Service
Table 13 presents the unit costs of providing service for the wastewater system. The costs of service by the Flow and Customer cost components from Table 12 are divided by the Flow and Customer units of service determined above and in Appendix B-1. The unit costs are used to establish the annual costs to be recovered from each customer class.
Table 12
Allocation of Wastewater Revenue Requirements
to Cost Component
Revenue Cost Component
Year Requirement Flow Customer
FY 23-24 $2,502,928 $2,252,625 $250,303
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User Class Costs
Each customer classification’s responsibility for a portion of the total annual cost of service is established through application of the unit costs of service in Table 13 to each customer classifications’ units of service from Appendix B-1. The unit Flow costs of service are multiplied by the estimated Flow developed each customer class. The unit Customer costs are multiplied by the number of annual bills mailed to each class.
The total cost of service responsibility of each class then is the sum of its allocated Flow costs and Customer costs, thereby establishing total cost of service by class. The cost of service responsibility for each class is provided in Table 14.
Table 13
Development of Unit Costs
FY 23-24 Cost Component
Description Total Costs Flow Customer
Total Costs of Service$2,502,928 $2,252,625 $250,303
Units of Service 2,496,174 151,674
Unit Costs of Service $0.9024 $1.6503
Units of Measure 1,000 gal Bills
Table 14
Distribution of Costs to Customer Classes
Allocated Cost Component
Description Total Cost Flow Customer
Unit Costs of Service $0.9024 $1.6503
Units of Measure 1,000 gal Bills
Single Family
Units of Service 1,087,630 101,694
Allocated Cost of Service $1,149,333 $981,511 $167,823
Multi-family
Units of Service 446,800 43,530
Allocated Cost of Service $475,042 $403,206 $71,836
Commercial
Units of Service 961,745 6,450
Allocated Cost of Service $878,553 $867,908 $10,644
Total Costs of Service $2,502,928 $2,252,625 $250,303
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Wastewater Rates
The goal of the rate design is to achieve fairness while ensuring that each customer class pays its fair share of costs. Rates should be simple to administer, easy to understand, and comply with regulatory requirements. This section describes how wastewater rates and charges are designed and includes the proposed schedule of wastewater rates for implementation.
Design of Wastewater Rates
Numerous workshops were conducted with City staff to review common wastewater rate structures as well as those used by other cities local to Buena Park. Several rate structures were reviewed and analyzed. The wastewater rate structure selected is based on available information and is within the capabilities of the City’s billing system. The selected rate structure is a variable rate structure. The design of the wastewater variable rates is discussed below.
Proposed Variable Charges
Table 15 presents the design of the proposed variable rates for City customers for FY 2023-24. Flow and Customer costs that were allocated to each customer classification are divided by their individual water consumption volumes to determine a variable rate that is specific to the customer class. The calculated variable rates recognize that not all of the water used by customers return to the sewer as wastewater volume or flow and therefore the variable rates are different for each customer class. While the overall cost of service was allocated to customer class based on their estimated wastewater volume, the costs allocated are recovered based on their water consumption read through the water meter.
Table 15
Design of Wastewater Rates
Component Total Water Variable
Description Flow [1] Customer [1] COS Use [2] Rate [3] 1,000 gal $/1,000 gal
FY 23-24 Cost of Service
Single Family $981,511 $167,823 $1,149,333 1,776,725 $0.65 Multi-family 403,206 71,836 475,042 595,733 $0.80 Commercial 867,908 10,644 878,553 1,012,363 $0.87 Total COS $2,252,625 $250,303 $2,502,928 3,384,821
[1] From Table 14.
[2] From Table 5 and Appendix B-2.
[3] Cost of Service divided by w ater use by class.
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Proposed Wastewater Rates
Table 16 presents the proposed variable rates for the wastewater system for the next five years. The current fixed charges and variable rates are also provided in the table as well as the proposed wastewater rates for implementation beginning on January 1, 2024. Wastewater `variable charges increase from January 1, 2024 following the annual cost of service of Table 11 and generally increasing with the percentage increases identified in Table 10.
Wastewater Bill Impact Analysis
An impact analysis was performed to evaluate the change in SFR customer wastewater bills that would occur from the implementation of the proposed wastewater rates for the January 1, 2024 increase. As shown in Table 17, a SFR customer with a 3/4-inch meter consuming the average water volume of 19 kgal bi-monthly will experience a bill that will increase from $9.59 to $12.35, an increase of $2.76 or 28.8 percent. Other levels of consumption are also provided in the table.
Table 16
Current and Proposed Wastewater Fixed and Variable Charges
Current Jan 1, Jan 1, Jan 1, Jan 1, Jan 1,
Rates 2024 2025 2026 2027 2028
Fixed Charge ($ per bi-month)
5/8 or 3/4-inch $4.59
1-inch $7.65
1 1/2-inch $15.30
2-inch $24.47
3-inch $48.95
4-inch $76.48
6-inch $152.96
8-inch $244.73
10-inch $351.80
Variable Charge ($ per 1,000 gal)
Single Family $0.26 $0.65 $0.67 $0.69 $0.71 $0.73
Multi-family $0.26 $0.80 $0.82 $0.85 $0.87 $0.90
Commercial $0.26 $0.87 $0.89 $0.92 $0.95 $0.98
Customer Class
Meter Size
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Figure 3 presents how the average SFR customer with a 3/4-inch meter consuming 19 kgal bi-monthly bill will change over time. Once the January 1, 2024 rates have been implemented, increases in future bills reflect modest inflation.
Table 17
Comparison of Current Single-family Residential Bi-monthly Wastewater Bills With 3/4-inch Meter With Proposed Bills Using January 2024 Wastewater Rates
Current Bill Proposed FY 23-24 Bill
Service Volume Current Service Volume Proposed Dollar Percent Descrip Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $4.59 $0.00 $4.59 $0.00 $0.00 $0.00 ($4.59) -100.0%
5 $4.59 $1.31 $5.90 $0.00 $3.25 $3.25 ($2.65) -44.9%
10 $4.59 $2.63 $7.22 $0.00 $6.50 $6.50 ($0.72) -10.0%
15 $4.59 $3.94 $8.53 $0.00 $9.75 $9.75 $1.22 14.3%
Average 19 $4.59 $5.00 $9.59 $0.00 $12.35 $12.35 $2.76 28.8% 25 $4.59 $6.57 $11.16 $0.00 $16.25 $16.25 $5.09 45.6%
30 $4.59 $7.89 $12.48 $0.00 $19.50 $19.50 $7.02 56.3%
50 $4.59 $13.15 $17.74 $0.00 $32.50 $32.50 $14.76 83.2% Figure 3
Comparison of Current and Future Single-family Residential Bi-monthly Wastewater Bills with 3/4-inch Meter at 19 kgal
[1] The percentage change in this year does not match overall increase due to cost of service adjustments. [2] The percentage change in years after the first year may not match overall increases due to rounding.
Proposed
Jan 1, Jan 1, Jan 1, Jan 1, Jan 1,
SFR Charges Current 2024 [1] 2025 2026 2027 2028
Fixed Charges $4.59 $0.00 $0.00 $0.00 $0.00 $0.00
Variable Charges $5.00 $12.35 $12.73 $13.11 $13.49 $13.87 Total Charges $9.59 $12.35 $12.73 $13.11 $13.49 $13.87
Dollar Change $2.76 $0.38 $0.38 $0.38 $0.38
Percent Change [2] 28.8% 3.1% 3.0% 2.9% 2.8%
$9.59
$12.35 $12.73 $13.11 $13.49 $13.87
$0
$2
$4
$6
$8
$10
$12
$14
$16
Current 2024 [1] 2025 2026 2027 2028
Fixed Charges Variable Charges
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Wastewater Rate Survey
A wastewater rate survey was conducted for neighboring communities to the City of Buena Park. Table 18 provides the rate structures used by local communities selected by the City. The table shows that the cities of Brea and Stanton use a fixed charge rate structure whereas Placentia, Fullerton, and La Palma use a variable rate structure.
Chart 1 compares the City’s SFR bi-monthly wastewater bill with the bills of the communities listed above, both with a 3/4-inch meter and using the City’s SFR average consumption of 19 kgal per month. The rate survey includes rate schedules in effect July 2023. Wastewater bills for the City are shown using the current rates and the proposed rates for implementation January 1, 2024. The chart indicates that the City’s SFR wastewater bill with the January 1, 2024 increase will be in the mid-range of the communities listed.
Table 18
Local Community Rate Structures
Rate SFR MFR Commercial
City Structure Fixed Variable Fixed Variable Fixed Variable $/bi-mo $/1,000 gal $/bi-mo $/1,000 gal $/bi-mo $/1,000 gal Brea Fixed $18.86 $11.82 $156.26 [1]
Stanton Fixed $12.04 $9.63 12.04 [2]
Placentia Variable $0.47 $0.52 $0.49
Fullerton Variable $1.90 $1.90 $1.90
La Palma Variable $1.14 $1.14 $1.14
[1] A fixed charge that varies based on assigned w astew ater flow in feet per minute. [2] Charge per 1,000 sf for standard commercial customer.
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Chart 1
Comparison of Buena Park Single-family Residential Bi-monthly Wastewater Bills with Other Communites with 3/4-inch Meter Using 19 kgal
Note: Above table uses wastewater rates in effect July 2023. Bills are based on each agency’s published rate schedules. City of Buena Park January 2024 bill is based on the rate structure and rates in Table 16.
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Appendix A
Wastewater System Allocation of Revenue Requirements and Units of Service are provided in Appendix A.
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Appendix A-1Allocation of Revenue Requirements to Cost ComponentTotalDescription FY 23-24 Flow CustomerPersonnel ServicesSalaries and Benefits [1] $455,640 $410,076 $45,564Total Utility Billing $455,640 $410,076 $45,564Wastewater Operations and MaintenanceProf / Contractual Service $40,035 $36,031 $4,004Professional Services - City 12,852 11,567 1,285 Safety Shoes 510 459 51 Equipment Rental - City 41,147 37,032 4,115 Equipment Maintenance - City 127,418 114,676 12,742 Mgmt Info Sys Chgs - City 3,871 3,484 387 Small Toll / Equip Expense 1,091 982 109 Uniform Expense 306 275 31 Membership/Subs/Certs 765 688 77 Hardware Supplies 5,579 5,021 558 Lab/Chemicals Supplies 1,545 1,390 155 Asphalt and Concrete 765 688 77 Conf/Meeting/Training 1,428 1,285 143 All Other 11,409 10,268 1,141 Total Wastewater Operating Expense $248,721 $223,846 $24,875Total Operation and Maintenance Expense $704,361 $633,922 $70,439Capital CostsCapital Improvement Spending 1,622,300 1,460,063 162,237 Total Capital Costs $1,622,300 $1,460,063 $162,237AdjustmentsRevenue Offsets ($30,548) ($27,493) ($3,055)Adjustments to Annual Cash Balance (228,636) (205,771) (22,865) Adjustments to Annualize Rate Increase 435,451 391,904 43,547 Total Adjustments $176,267 $158,640 $17,627Total Cost of Service $2,502,928 $2,252,625 $250,303
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Appendix A-2Units of ServiceOverall TotalFY 23-24 Return WastewaterCustomer Class Annual Use Factor Volume 1,000 gal 1,000 galSingle Family 1,776,725 61% 1,087,630Multi-family 595,733 75% 446,800Commercial 1,012,363 95% 961,745Total System3,384,821 2,496,174 Agenda Report to City Council
Study Session
MEETING DATE: August 08, 2023
TO: The Mayor and City Council
TITLE: DISCUSS AND PROVIDE DIRECTION REGARDING THE
WASTEWATER ENTERPRISE RATE STUDY
DISCUSSION:
The City of Buena Park ('City') provides water and wastewater service to a population of about 83,500 residents, covering a service area of about 10 square miles. The City serves predominantly residential customers while also serving a mix of commercial, industrial, and entertainment customers. The City owns, operates, and maintains a distribution system to supply water from eight municipal wells supplemented by connections to the Metropolitan Water District (MWD) to import additional water, as needed. The City also owns, operates, and maintains a wastewater collection system that collects wastewater from the City's customers via 168 miles of sewer lines.
The collected wastewater is discharged into a large trunk sewer line owned by the Orange County Sanitation District ('OC San') for wastewater treatment service and disposal through OC San's treatment plant. The charges for OC San's treatment and disposal are placed on the County of Orange tax rolls for payment. All of the City’s water and wastewater revenues and expenses are included in the Water Enterprise Fund.
In September 2020, the City entered into an agreement with Tuckfield & Associates to conduct a rate study that differentiates the revenue and expenses of the Water Enterprise Fund into separate analyses and rates for the water and wastewater enterprises. The objective of this report was to study the wastewater rate and design a rate that includes long-term financial planning to meet the wastewater utility's operating revenue requirements. The City and the consultant have held multiple working sessions to study the existing rates and recommend a rate structure that best meets the objectives while minimizing financial impacts on residents to the greatest extent possible.
Through this study, it was determined that the Water Enterprise Fund is healthy and the existing water rates do not need to be revisited at this time. The current rates as well as the current revenue reserves show a healthy fund balance to sustain the water program for two to three more years.
Water and Wastewater rates must comply with Proposition 218 (Prop 218). Prop 218 was enacted by voters in 1996 to ensure, in part, that fees and charges imposed for ongoing delivery of a service to a property are proportional to, and do not exceed, the cost of providing service.
Wastewater service fees and charges are property-related fees and charges subject to the Regular City Council Meeting of August 8, 2023
provisions of California Constitution Article XIII D, Section 6. To develop wastewater rates that comply with Prop 218, meet industry standards, and accomplish the City's goals for the study, four major steps were discussed: Revenue Requirement Calculation, Cost of Service Analyses, Waste Water Rate Design, and Wastewater Rate Adoption.
The current wastewater rates are charged as an eleven percent (11%) fee of the water bill. The bi- monthly water bill consists of charges based on water meter size and volume of water purchased.
Through this study, a financial plan was developed for a new Wastewater Enterprise Fund. The study projects a five-year rate-setting period that would implement new rates each January 1 for 2024 to 2028. The study recommends different rates for each customer class with Single Family Dwellings (SFR) set at $0.65 per 1,000 gallons, Multi-Family Dwelling (MFR) at $0.80 per 1,000 gallons, and Commercial rates at $0.87 per 1,000 gallons. The change in the SFR bill is of most interest since SFR customers represent 90% of the total number of customers of the wastewater system. To illustrate the impact of the rate change, a SFR customer's bi-monthly bill under the current rates with a 3/4-inch meter (84% of SFR users) using the average consumption of 19 thousand gallons bi-monthly yields a water bill at $9.59. Based on the new rate structure, the same property will have a bill at $12.35, an increase of $2.76 or 28.8%. The study recommends a 3% increase for the remaining 4 years. Industry standard rate setting methodologies set forth by the Water Environmental Federation Manual were used to ensure that the results of this study meet Prop 218 requirements and create rates that do not exceed the proportionate cost of providing the services.
Prepared by: Mina Mikhael, P.E., Director of Public Works/City Engineer Approved by: Aaron France, City Manager
Presented by: Mina Mikhael, P.E., Director of Public Works/City Engineer
ATTACHMENTS
1) DRAFT Wastewater Rate Study
Regular City Council Meeting of August 8, 2023
City of Buena Park
City Council Regular Meeting Agenda Report
DISCUSS AND PROVIDE DIRECTION REGARDING THE COMMUNITY GYMNASIUM RENTAL USER GROUP RATES Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
STUDY SESSION Item: 9A
Presented By
Dale Kurata, Community Services Supervisor
Prepared By
Dale Kurata, Community Services Supervisor
Approved By
Aaron France, City Manager
DISCUSSION
At the January 23, 2024 meeting, and at the request of Vice Mayor Ahn, City Council discussed an item pertaining to the fees paid for use of the Community Gymnasium by Thanksgiving Church. This item included discussion on a fee waiver, fee group reclassification from non-profit to city assisted group status to reduce fees, and possible exploration of a Joint Use Agreement (JUA) between the City and Thanksgiving Church.
During discussion, the City Council did not want to waive fees, nor reclassify Thanksgiving Church to city-assisted group status. Further, City Council agreed with staff that there is not a clear City usage of Thanksgiving Church facilities as part of a JUA.
City Council considered reducing the non-profit gymnasium rental rate of $32 per hour for all non-profits to match the city- assisted rate of $21 per hour, and asked staff to bring back the breakdown of Community Gymnasium rental fees by user groups.
City recreation programs, leagues, and classes remain the primary focus of the gymnasium programming. The gymnasium is rented during available, non-programmed hours. Rental user groups vary year to year. FY 22-23 there were 146 rentals, of which 73% were by Buena Park-based organizations.
Below are the FY 22-23 revenue actuals from rentals.
*Staff Fee - $20 per hour (variable based on size, all rentals are charged at least one staff) Based on prior year actuals, reducing the non-profit rate from $32 per hour to $21 per hour would reduce revenues an estimated $2,130.
User Group Rate # Rentals # Hours Rental Fees Staff Fees* Total Fees City Assisted $21 per hr. 0 0 0 0 0
Non-Profit $32 per hr. 73 194 $6,208 $4,610 $10,818
Private $42 per hr. 0 0 0 0 0
Commercial $79 per hr. 73 224 $17,696 $5,210 $22,906
Total 146 418 $23,904 $9,820 $33,724
City Council expressed interest in reducing the non-profit rate, possibly to match the city assisted rate of $21 per hour.
Staff is seeking City Council direction on amending the fee schedule.
City of Buena Park
City Council Regular Meeting Agenda Report
DISCUSS AND PROVIDE DIRECTION REGARDING THE CITY'S TEMPORARY SIGN ORDINANCE Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
STUDY SESSION Item: 9B
Presented By
Christopher Cardinale, City Attorney & Adria Jimenez, City Clerk / Director of Government and Community Relations
Prepared By
Christopher G. Cardinale, City Attorney
Approved By
Aaron France, City Manager
DISCUSSION
The City’s temporary sign ordinance (Division 9, Chapter 19.904 of the Buena Park Municipal Code, the “Temporary Sign Ordinance”) has been the topic of discussion several times over the years. On September 10, 2019, the City Council adopted a comprehensive update to the Temporary Sign Ordinance in response to concerns about the proliferation of privately-placed signage during election cycles, and a then-recent decision issued by the United States Supreme Court that required cities across the country to review their sign regulations to ensure content neutrality.
In April 2021, the City Council again discussed the Temporary Sign Ordinance and received a presentation by staff about compliance by private parties and enforcement over the previous several years. In August 2021, the City Council approved minor amendments to the Temporary Sign Ordinance to reduce administrative time associated with enforcement against private parties posting “temporary special event signs” in the public rights-of-way. The most common type of these signs pertain to campaigns or elections, but other examples include signs inviting residents to attend social gatherings, support groups, community meetings, religious services, educational meetings, or other non-commercial events or occasions within the City.
In February 2023, the City Council discussed the Temporary Sign Ordinance and again expressed concerns with the overconcentration of temporary special event signs in the City, and particularly with repeat offenders of the ordinance. The City Council discussed imposing additional time, place and manner restrictions on the placement of temporary special event signage in public rights of way, and directed staff to analyze options and return with suggestions for updating the Temporary Sign Ordinance to address the City Council’s concerns. The preferred option of the City Council at the time was an ordinance that prohibited the placement of temporary special event signage upon the public right of way except for pre- approved locations in the City.
The City Attorney and City Clerk have worked together to prepare an amendment to the Temporary Sign Ordinance to implement this approach, and the Public Works Department was consulted to determine the viability of various locations for the posting of temporary signage with the City’s right of way. Staff believes this approach presents a content-neutral mechanism for regulating the time, place, and manner by which temporary special event signs may be posted in the public rights-of way and will simplify both public understanding and staff administration of the ordinance moving forward.
A summary of the proposal is as follows:
Temporary signs on private property are not governed by the Temporary Sign Ordinance and would not be impacted by the code amendment; but instead are subject to general land use / zoning standards.
If this approach is acceptable by the City Council, staff seeks input from the City Council on the locations / intersections where temporary special event signs should be allowed. Staff has identified several potential locations for the City Council’s consideration, with the locations selected based on a variety of factors including visibility and the practicality of posting signage at the location. Staff notes that several locations which the community might historically associate with locations for the posting of temporary signs are actually located on private property; and as a result, are not regulated or included in the proposed list of publicly owned locations for the posting of temporary special event signage.
Viable city-owned property locations identified by staff for consideration are listed below and included on the attached map and will be discussed more at the meeting:
DISTRICT 1
DISTRICT 2
DISTRICT 3
All temporary signs would continue to be prohibited on public property or public rights-of-way except for: (a) "official signs," such as those posted by or for a governmental purpose (i.e. traffic control signs, public notices, city-sponsored events); and (b) “temporary special event signs” posted by private persons at preapproved locations in the City.
The code amendment would add specific definitions of “public property” and “public rights of way” (within 10 feet of the curb face) to provide clarity in compliance and enforcement.
The code amendment would identify the locations (with reference to specific intersections) in the City where temporary special event signs may be posted.
The code amendment would prohibit more than 3 temporary special event signs from being placed by the same person at any single location at the same time, and requires signs to comply with objective design, size, and maintenance standards.
Prohibits “temporary special event signs” from being placed more than 30 days before the occasion or event to which it relates, and requires signs to be removed 10 days after it concludes.
The code amendment would allow the City to enforce the Temporary Sign Ordinance through a variety of means, including: (1) immediate removal and storage of unlawfully placed signs; (2) escalating fines ($100, $200, $500 per violation within a 12-month period); (3) administrative cost recovery by the City; and (4) other lawful mechanisms.
The code amendment would make other clerical and conforming changes to the City’s Temporary Sign Ordinance.
Beach Blvd. / Los Coyotes Dr.
Dale St. / Artesia Blvd.
Malvern Ave. / Stanton Ave.
Stanton Ave./Commonwealth Ave.
Beach Blvd. / Franklin St.
Beach Blvd. / Commonwealth Ave.
Orangethorpe Ave. / Western Ave.
Beach Blvd. / Orangethorpe Ave.
Stanton Ave. / Auto Center Dr.
Knott Ave./ La Palma Ave.
Crescent Ave. / Western Ave.
Crescent Ave. / Stanton Ave.
La Palma Ave. / Dale St.
Attachments
CC District Map Temp Signs.pdf
DISTRICT 4
DISTRICT 5
If the City Council desires to move forward with the proposed amendment, staff recommends the City Council: (1) provide preliminary direction on the locations for sign placement; and (2) refer the matter to the Planning Commission to initiate a formal text amendment to Title 19 of the Buena Park Municipal Code. The Planning Commission’s recommendation would return to the City Council at a future public hearing / meeting.
Crescent Ave. / Los Altos Dr.
Crescent Ave. / Pierce Dr.
Monroe Ave. / Pierce Dr.
Artesia Blvd. / Knott Ave.
Knott Ave. / 8th St.
Western Ave. / 9th St.
Valley View Ave. / Orangethorpe Ave.
City of Buena Park
City Council Regular Meeting Agenda Report
DISCUSS AND PROVIDE DIRECTION CONCERNING AN ENERGY CONSERVATION AND EFFICIENCY PROJECT AT
VARIOUS CITY FACILITIES
Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
STUDY SESSION Item: 9C
Presented By
Christopher Cardinale, City Attorney
Prepared By
Christopher G. Cardinale, City Attorney
Approved By
Aaron France, City Manager
DISCUSSION
On March 8, 2022, the City Council received a study session presentation about an investment grade audit (“IGA”) of City facilities with a goal of identifying potential energy efficiency projects that would generate both environmental benefits and long-term cost-savings to the City. The City Council expressed interest in the concept and directed staff to move forward with a solicitation of qualified companies.
Then, in January 2023, the City issued a formal Request for Qualifications (RFQ) for qualified energy service companies (“ESCOs”) to perform an IGA and subsequently implement an energy infrastructure modernization project at City facilities. The RFQ was structured and based on similar solicitations issued by other jurisdictions in the past few years and described a two-phase project approach: (1) ESCOs to complete the IGA and identify potential energy conservation measures ("ECMs") and cost savings for the City; and (2) the City's review of the ESCOs' recommendations and approval for the ESCO to complete the specified project.
On March 28, 2023, the City Council received a study session presentation and reviewed the RFQ results, after which it directed staff to negotiate an Energy Services Agreement with NORESCO, the company deemed by the committee to be the most qualified to provide the services requested. Staff and NORESCO immediately commenced negotiations on the terms and conditions of a potential agreement, with a primary topic of focus being how best to structure the project delivery in a manner that achieved the parties' goals and objectives and also complied with limitations of California law; most notably Section 1090 of the Government Codes ("Section 1090").
Section 1090 is well-known conflict-of-interest law that prohibits public officials from entering in or participating in the making of any contract in which the public official has a financial interest. This prohibition applies not only to elected and appointed public officials, but also to independent contractors that serve in advisory positions that have the potential to exert considerable influence over the contracting decisions of a public agency. The nature, extent, and circumstances of when Section 1090 applies to independent contractors is not always clear, but the Fair Political Practices Commission (FPPC) has issued two opinion letters bearing on the two-step project for ESCOs concluding that:
Negotiations between the City and NORESCO took these concepts into consideration, but ultimately were interrupted by the California Legislature's adoption in October 2023 of Assembly Bill 334, which amended existing law to clarify the circumstances where Section 1090 applies to independent contractors, and prohibits cities from entering into a new (or amending an existing) contract with an independent contractor if the original scope of work includes "engaging in or advising on public contracting." Section 1090 prohibits cities from entering into a second contract with an ESCO, or amending an existing contract with an ESCO, where the ESCO under the original contract establishes the scope of work for the second contract. (Sodergren, May 22, 2019; Clendenin, December 18, 2020); but,
A city may enter into a single contract with an ESCO to design and implement an energy conservation project.
Both City staff and NORESCO representatives agree the clarification provided by Section 1090 means that the original "Two Step" project approach described in the RFQ is unworkable, leaving the parties with two options for moving forward with this project:
Staff recommends (and NORESCO concurs) that the City Council proceed under the second option and resolicit proposals under a new “progressive design build” process recently enacted by the California Legislature. Specifically, Senate Bill 706 (effective January 1, 2024) allows cities to contract for both the design and construction of a project costing more than $5 million through a single contractor. A summary of the process is as follows:
The City previously hired a consultant (NV5) to assist it with negotiating terms with NORESCO, and with their assistance are finalizing a draft RFQ that would comply with the Senate Bill 706 process. The proposed project described in the RFQ would include energy generation and efficiency upgrades at the City Yard, City Hall, Police Department, Community Center, Ehlers Event Center, and the City's various park facilities. Specific upgrades and projects at these facilities would include the following:
If approved by the City Council, staff is prepared to issue the new RFQ before the end of the week with responses due in 6-8 weeks. The City Council could then proceed with consideration of selecting a contractor and proceeding with preliminary design and preconstruction work by spring of this year. This timeline preserves the City’s NEM 2.0 application, which was filed last March, and will, in staff’s opinion, result in a timely and cost-effective project that aligns with the City’s financial and energy conservation goals.
Enter into a single contract with NORESCO for complete design and construction of the energy conservation measures recommended by NORESCO without clear parameters on the scope or cost of work, and with little room for the City to modify the contract moving forward; or,
Cancel the original RFQ and resolicit competitive proposals under California’s design-build statutes, a procurement process void of Section 1090 concerns having been cleared by the California Legislature.
The City issues a Request for Qualifications that identifies: (a) the size, type, design character, and expected cost range of the project (this component was not included in the City’s original RFQ); (b) the methodology that will be used to evaluate qualifications; (c) the procedure that will be used for selecting the contractor; and, (d) factors that will be considered in evaluating proposals.
Contractors responding to the RFQ must demonstrate their design / construction expertise; provide detailed information about company owners, past projects completed, licenses and registrations, financial capacity, safety record, and insurance compliance; and contractors must be willing to comply with the City’s Community Workforce Agreement.
The City then enters into a contract with the selected contractor to begin design and preconstruction activities sufficient to establish a guaranteed maximum price ("GMAX") for the project. In developing the GMAX project price, the contract must utilize those subcontractors listed in their original proposal; or otherwise must bid out work not self-performed.
If the City and selected contractor reach an agreement on the GMAX price, the City may in its sole discretion amend the contract to allow the contractor to perform the work. If the City and contractor cannot reach an agreement on the cost to complete the work, or if the City otherwise elects not to award the remaining work to the contractor, the City may formally solicit proposals from other design build entities and award the contract on a “best value basis.” Interior and Exterior LED Lighting: Upgrade or replace LED Lighting for interior and exterior of the Project Sites, with the exception of the exterior of Ehlers Event Center (already complete).
HVAC Replacements: City Hall, Police Department, and some park facilities.
HVAC Control: All Project sites.
EV Charging Stations: City Hall, Police Department, Community Center, and Ehlers Event Center, and City Yard. Conduits or charging stations should be planned for fleet charging as well as public interface charging.
Solar PV Installations: Carport solar PV installations in specified area of the parking lot at Ehlers Event Center, City Hall, the Community Center, and City Yard, and rooftop solar PV installations at City Hall, Police Department, and City Yard. The solar PV installations would fall within the parameters of the City's NEM 2.0 application.
Others: The selected ESCO may investigate any other energy conservation measures or improvements at the Project Sites believed to be cost effective and consistent with the stated Project Goals. Other opportunities include mechanical pool equipment upgrades.
City of Buena Park
City Council Regular Meeting Agenda Report
DISCUSS AND PROVIDE DIRECTION ON A LOCAL WORKER PROTECTION ORDINANCE The City Council will discussion and provide direction concerning local worker and working animal protection ordinances.
Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
STUDY SESSION Item: 9D
Presented By
Christopher Cardinale, City Attorney
Prepared By
Christopher G. Cardinale, City Attorney
Approved By
Aaron France, City Manager
DISCUSSION
Mayor Sonne and Council Member Traut calendared a discussion of local worker and working animal protections. To prepare for this item, staff surveyed and summarizes below applicable federal and state laws on this topic, as well as local ordinances adopted by other cities in California.
Staff recommends that the City Council review this report and staff's representation and provide direction with respect to any specific areas of topics the City Council desires to explore in more detail. If the City Council directs staff to move forward with further evaluation or drafting of an ordinance on any of these topics, staff recommends the City Council authorize staff to engage the public and interested stakeholders in the discussion to identify potential benefits, risks, issues, business or economic impacts, and alternatives to the regulation. For example, an understanding of the wage rates, scheduling practices, worker protection policies, and safety regulations already in place among established brands and business may reveal existing best practices or particular issues of concern that might be incorporated into a City ordinance.
Federal and State Law.
Federal and California law establish baseline statutory worker protections and rights. At the federal level this includes minimum wage requirements, workplace safety protections, healthcare coverage, social security, unemployment benefits, whistleblower protections, family leave, and prohibitions on employment-based discrimination. As explained in more detail below, California law adds increased protections in the majority of these areas and establishes requirements for rest and meal breaks, minimum wage and overtime, benefits if injured or unemployed, health and safety in the workplace, and whistleblower and retaliation protections. Examples of these protections include the following:
Minimum Wage: Effective January 1, 2024, the minimum wage in California is $16.00 for all employers. The minimum wage for fast food workers will be $20.00 as of April 2024, and the minimum wage for health care facility workers will start at $23.00 as of June 1, 2024.
Overtime: For most occupations, overtime equal to 1.5 times the regular rate of pay must be paid for all hours worked over 8 hours in one day or over 40 hours in one week. Most occupations also receive double time for all hours over 12 in one day or over 8 hours on the seventh day of a work week.
Breaks: Workers must be given a paid 10-minute rest break every 4 hours of work, and meal breaks of at least 30 minutes after no more than 5 hours of work.
Manner of Wage Payment: With certain exceptions employees must be paid at least twice per month on designated regular paydays, and a paystub must be provided showing the pay period, wages earned, hours worked, hourly rate(s) of pay, and relevant tax information.
Local Worker Protection Ordinances
Cities have the power to make and enforce within their jurisdictional limits all ordinances and regulations that are not in conflict with federal or state law; and this authority is broader for charter cities, which may regulate all municipal affairs.
This includes the power to enact laws and regulations governing the workplace and many municipalities have chosen to do so. The following are several examples:
- Prohibiting hotels from having a policy where guestrooms are not sanitized and cleaned after each use. - Requiring hotels to maintain room attendance records for three years, including: name, rate of pay, pay received, identification of rooms cleaned, square footage cleaned, overtime hours worked, and training records. - Providing hotel workers with written notice of their rights. - Workers assigned to guestroom or restroom facilities must be given a personal security device at no cost, which may be activated whenever the worker reasonably believes they observe violent or threatening conduct or in the event of an emergency. The worker may immediately vacate the area and wait for assistance and cannot be retaliated against for utilizing measures.
- Hotels with more than 60 rooms must have a designated security guard that can receive security device alerts, and employees must be given training on a variety of topics like: workers' rights and responsibilities, best practices for identifying and responding to suspected instances of human trafficking, domestic violence, or violent/threatening conduct, best practices for effective cleaning techniques, best practices for identifying the avoiding insect/vermin infestation, and best practices for identifying and responding to other potential criminal activity.
- Hotels must post notice in each guestroom and restroom facility that workers are carrying personal security devices.
- Workers are entitled to paid time off to report any violent or threatening conduct to law enforcement, and reasonable accommodations must be provided upon request to workers that have experienced an incident, including modified work schedules, reassignment to vacant positions, and reasonable adjustments to job structure.
- In an eight-hour shift, room attendants may only be required to clean up to 4,000 square feet for hotels with less than 59 guest rooms, or 3,500 square feet for hotels with more than 60 guest rooms, without being paid overtime. Workers must consent to working more than 10 hours in a day. - Hotel workers have a private right of enforcement against employees in California Superior Court. - Local protections may be waived in a collective bargaining agreement, and hotels may apply for a one-waiver based on a showing of financial hardship that compliance will force a reduction in workforce by more than 20 Health & Safety: Employers are obligated to keep employees safe at work by: identifying health and safety hazards and correcting them; having written health and safety plans (i.e. Injury and Illness Prevention Program); advising and training employees how to work safely; carrying workers compensation insurance; tracking and reporting workplace injuries and illnesses; and posting Cal/OSHA Safety and Health Protections at job sites.
Reporting Protections: Employees may not be threatened or retaliated against for pursuing wage claims, reporting injuries or hazards, filing a claim with administrative agencies, or unionizing. Prohibited retaliation includes terminating an employee, chaining assignments or shifts, threatening deportation, or hindering alternative employment.
Workers Compensation: Employers are obligated to pay for medical care for injuries and illnesses related to work, regardless of fault for the injury. California law also offers limited unemployment benefits to workers not currently employed.
Local Minimum Wage: Approximately 40 cities in California have adopted local minimum wage laws, with the range of pay ranging from $16.50 to $19.08 depending on the jurisdiction. The majority of these jurisdictions are located in northern or central California, with southern California cities, including Los Angeles (city and county), San Diego, Malibu, Santa Monica, Pasadena, and West Hollywood.
Hotel Worker Protections: Several cities in California have enacted ordinances establishing special rights and protections for hotel workers, including Anaheim, Irvine, Long Beach, Santa Monica, Los Angeles, West Hollywood, and Glendale. Features of these ordinances include some or all of the following:
percent or cut its workers' hours by more than 30 percent.
Senate Bill 998 (Wiener) was recently introduced in the California Legislature and would establish the following protections:
- Mandatory contracts: Any freelancer performing over $250 of work for a hiring entity over a four-month period is entitled to a contract outlining the scope of the work expected, the rate of pay, and the method of payment. - 30-day payment terms: Clients must pay their freelancers within 30 days of completion of work unless otherwise specified in the contract.
- Payment agreement protections: Clients cannot require that freelancers accept less than the contract stipulates in exchange for faster payment.
- Anti-retaliation: Clients cannot retaliate against freelancers for pursuing payment. - Double damages: Freelancers, who are the victim of non-payment, are entitled to damages equal to double the payment originally specified in their contract, plus costs and attorney's fees.
Working Animal Protection Ordinance
The rights and protection of "working animals" is also an area that may be regulated locally by cities pursuant to their police policies. The law generally considers and treats domestic animals as property, and cities may prescribe reasonable regulations so long as they are not arbitrary and unreasonable burdens have not been imposed.
California law currently regulates this area, and for example makes it a crime to engage in any of the following activities:
maliciously and intentionally maiming, mutilating, torturing, killing or wounding a living animal; overdriving, overloading, driving when over loaded, overworking, torturing, tormenting, depriving of necessary sustenance, drink, or shelter, cruelly beating, mutilating, or cruelly killing any animal; or subjecting any animal to needless suffering, inflicting unnecessary cruelty upon the animal, or in any manner failing to provide the animal with proper food, drink, or shelter or protection from the weather.
Specific to horses, which are commonly used in entertainment-related functions, California law includes several protections.
For example, the "poling" of a horse is prohibited, which consists of forcing, persuading, or enticing a horse to jump in such manner that one or more of its legs will come in contact with any kind of wire, or a pole, stick, rope or other object with sharp points, or raising, throwing or moving a pole, stick, wire, rope or other object, against one or more of the legs of a Fair Work Week Ordinances: The cities of Los Angeles, Berkely, and Emeryville have enacted ordinances that establish mandatory scheduling practices such as: two weeks' notice of work schedules, overtime or payment premiums for last minute scheduling changes, allowing employees to decline back-to-back shifts without adequate rest (i.e. 10 hours between shifts), and requiring employers to offer additional hours to existing part-time employees.
Employees may also request preference for certain hours, times, or locations of work, which need not be approved but must be considered by employers. Employers are generally prohibited from requiring employees to find shift coverage for absences that are protected by law, and notice of the ordinance must be posted in the workplace. Violations are punishable by City fines of $500/day or a private right of action by the employee. These ordinances only apply to retail or similarly-defined businesses with more than 300 employees globally.
Family-Friendly Ordinance: The City of Berkely adopted an ordinance giving employees the right to request a flexible and predictable work schedule. Employers do not have to approve the request but must respond in writing within 21 days of the request and cite a business reason for denial. The ordinance applies to employers with 10 or more employees, and to full-time employees working at least three months.
Freelance Worker Protection Ordinance: The City of Los Angeles enacted an ordinance that requires a written contract for independent contractors and freelance workers that earn $600 or more in the calendar year from the same hiring entity. The ordinance has certain exceptions but generally applies to any employing entity regularly engaged in business or commercial activity, including trades, businesses, and non-profit businesses. The written contract must include: the name and contact information of the hiring entity and worker, listing of services to be provided, their value, and the rate or method of payment. Workers may file a complaint for violations with the Department of Public Works and monetary penalties of $250 may be awarded to employees. horse while it is jumping so that the horse, in either case, is induced to raise such leg or legs higher in order to clear the obstruction. Tripping a horse is also unlawful, as is use of bristle-bur, tack bur, or other devices on a horse.
California law also requires animals kept in confined areas to have an adequate exercise area, and that any restrictions on the animal preventing it from becoming entangled or injured and allowing the animal's access to adequate shelter, food, and water. Animals also must be afforded proper care and attention by their owners and keepers, and the Health & Safety Code prescribes specific standards for the horses including:
Last session the California Legislature considered but did not pass Assembly Bill 554, which would have expanded the right of certain nonprofit corporations whose organizational purpose is to prevent cruelty to animals to bring suit to enforce these laws. The bill was intended to bridge hurdles associated with "standing" to bring these types of lawsuits in court.
Staff surveyed local ordinances in this area, and while there are few examples. The City of Chino recently adopted an ordinance titled the Working Animal Protection Act. The measure applies to animals used and trained to perform specific tasks or functions, and makes minor additions to the protections already required by state law by:
Staff will be available to respond to specific questions of the City Council and to implement any direction on these issues.
Enclosures must be of sufficient size to enable the horse to comfortably stand up, turn around, and lie down, and shall be kept free of excessive urine and waste matter.
Paddocks and corrals shall be of adequate size for the equine to move about freely.
Buildings, premises, and conveyances shall be kept free of sharp objects, protrusions, or other materials that are likely to cause injury.
Horses must be supplied with nutritionally-adequate feed and clean water, in accordance with standards published by the Cooperative Extension of the Division of Agricultural Sciences of the University of California.
Track and equipment shall be appropriate and fit properly.
After use the horse must be cooled out to a normal condition at rest.
Requiring working animals at spectator events to be confined by a sound fence (e.g. wood, brick, pipe corral, or chain link) when working, resting, and feeding;
Requires working animals in the public rights-of-way to be contained by a harness, bridle, headstall, lead rope, or lease, and by an appropriate age for birds; and
Prevents interference with another person's right to use a working animal.
City of Buena Park
City Council Regular Meeting Agenda Report
DISCUSS AND PROVIDE DIRECTION ON THE CITY'S GRANT APPLICATION FOR CALOPTIMA HOUSING AND
HOMELESSNESS INCENTIVE PROGRAM (HHIP)
Meeting
Tuesday, February 13, 2024, 5:00 PM
Agenda Group
STUDY SESSION Item: 9E
Presented By
Matt Foulkes, Community and Economic Development Director Prepared By
Matt Foulkes, Director of Community and Economic Development Approved By
Aaron France, City Manager
DISCUSSION
This study session item was requested by Councilmember Castañeda to discuss and provide direction on whether the City should apply for the Housing and Homelessness Incentive Program (HHIP) Round 3 funding from CalOptima Health.
CalOptima Health, through its Board of Directors and partnership with the Department of Health Care Services, have allocated grant funds to meet three specific priority areas as it relates to reducing and preventing homelessness.
CalOptima Health has indicated that while the funding opportunity areas referenced above are intentionally broad, there are specific requirements pertaining to who is eligible to receive the grant funds and what the funds are to be used for. For example, the Equity grants priority area are intended for organizations with an annual operating budget of less than $5- million and are focused on supporting specific populations experiencing homelessness. The operating budget limitation results in the City is not being an eligible grant recipient in this priority area. The Transitional Housing development priority area grant is intended for affordable housing developers, who have site control of a specific property in the county with intent to construct supportive or transitional housing. While the City is the regulatory agency who approves plans for affordable housing development in the City, it is not a housing developer and is not an eligible grant recipient in this priority area.
The Systems Change grant priority area is intended for projects or programs that propose an innovative intervention to homelessness and that can be replicated on a county-wide basis or have county-wide implications. It is designed to support projects and initiatives that seek and deploy creative and effective solutions to combat homelessness, with strong emphasis on implementing evidence-based practices and novel approaches. Per the Notice of Funding Availability ("NOFA"), successful applicants will develop and pilot groundbreaking programs aimed at reducing homelessness and improving the lives of those affected by it. Examples include addressing student homelessness, equitable access to data and technology solutions such as the Homeless Management Information System (HMIS). The City is an eligible grant recipient in this funding priority area along with non-profit organizations, tribes, public schools or universities. The total grant funds available in the Systems Change priority area is $10.18 million with a minimum grant award of $2-million. CalOptima Health may award up to (5) Systems Change grants, but have indicated that they expect to award one or two. Grant recipients in the category will have up to three years to expend the grant funds awarded.
Grant proposals will be evaluated on the following criteria:
Priority Area 1 - Infrastructure to coordinate and meet member housing needs (Transitional Housing); Priority Area 2 - Partnerships and capacity to support referrals for services (Equity); and Priority Area 3 - Innovation and implementation of strategic interventions (Systems Change) Attachments
Attachment 1 - CalOptimaHealth_NOFORound_3_Announcement_508.pdf Systems Change Grant Program Concept - Accessory Dwelling Unit (ADU) Development Grant Based on initial discussions with Council Member Castañeda, should the City Council direct staff to apply for the Systems Change grant, the program that would be applied for would be for the development of a City-administered ADU/JADU development fund. These funds, would allow participating property owners in Buena Park to apply for funding in the form of a forgivable loan to offset all, or a portion of the costs to construct an ADU or JADU on their property in exchange for entering into an agreement with the City to rent the ADU/JADU to a CalOptima Health member for a specified period of time (ex. 10-years). Provided the property owner rents the ADU/JADU to a CalOptima Health member during the agreement period, at the end of the term the loan would be forgiven and the deed restriction would be removed allowing the property owner to rent the ADU/JADU to the public at-large. The proposed program would aim to leverage the City's efforts over the past 12- months to streamline the ADU development process by providing pre-approved ADU plans for use by property owners. The City could also partner with participating lending institutions to streamline the financing process for property owners needing to supplement the City's grant funds with other institutional financing for the ADU/JADU construction. If a property owner wishes to sell the property, refinance the loan or discontinues renting to a CalOptima Health member, the loan would be due and payable and could then be reallocated to another participating property. If awarded the full $10.18- million, the City estimates that up to 100 ADU/JADUs could be developed throughout the city.
Program administration would be a three-way partnership between the City, who would assist with the initial ADU/JADU development along with ongoing compliance auditing of each unit; CalOptima Health, who would assist property owners to identify eligible CalOptima Health members for residency; and the property owner, who would provide housing for the extremely-low income or previously homeless tenant. The proposed program appears to meet each of the evaluation criteria specified in the NOFA and while it would be implemented locally in Buena Park, the program could be replicated by other cities in the county, if successful. There is also an opportunity to outsource the ongoing compliance portion of the program to a third-party, non-profit partner if one can be identified, which would lessen the administration burden on the City.
Grant applications are due on February 22, 2024. Should the City Council direct staff to pursue this grant, staff will quickly mobilize with the assistance from Council Member Castañeda to complete the grant application and submittal materials prior to the February 22nd deadline. Grant award notifications are scheduled for April 2024, with a grant start date of May 2024.
CalOptima Health core value alignment - Project is trauma-informed, inclusive, non-residency restricted, low- barrier, person-centered, and aligned with the housing-first and harm-reduction principles.
Program Description - The program description is clear and concise.
Program Implementation - The plan is complete and includes specific objectives, logical and feasible activities, as well as clearly defined measures of success.
Sustainability - Program or project is sustainable beyond this funding opportunity if funding is awarded or is time- bound and does not require continuous funding.
Readiness - Projects can launch soon after grant award.
Experience - Expertise in providing proposed services and/or implementation of similar project in the past.
Capacity of Applicant - Able to demonstrate financial and management capacity to carry out the project, as evidenced in the submission of required materials in the application.
Evaluation Plan - Application clearly articulates a feasible and well-thought-out plan for evaluating project success.
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Housing and Homelessness Incentive
Program (HHIP) Round 3:
Notice of Funding Opportunity (NOFO)
CalOptima Health solicits equity, systems change, and transitional housing capital funding requests for people experiencing homelessness.
Application Deadline — February 22, 2024 (5 p.m. PST)
Background
CalOptima Health’s mission is to serve member health with excellence and dignity, respecting the value and needs of each person. With a strategic goal of decreasing health inequities, CalOptima Health is engaging in programs and expanding partnerships to better serve members who are at greater risk for poor health outcomes, especially those experiencing homelessness.
CalOptima Health’s Board of Directors has shown a strong commitment to the issue of homelessness, as demonstrated by the ongoing allocation of Board reserved funds. The Board’s support of these efforts is central to the overarching community investment strategy.
Further, CalOptima Health is participating in the Department of Health Care Services’ Housing and Homelessness Incentive Program (HHIP) through which additional funds can be earned. This voluntary program is intended to support delivery and coordination of health and housing services for Medi-Cal members experiencing homelessness or at risk of homelessness by rewarding and incentivizing Managed Care Plans for taking an active role in reducing and preventing homelessness.
Through this program, CalOptima Health has the opportunity to earn funding by meeting specific program measures that fall under three priority areas:
1. Infrastructure to coordinate and meet member housing needs;
2. Partnerships and capacity to support referrals for services; and
3. Delivery of services and member engagement. In June 2023, CalOptima Health’s Board approved the creation of a new priority area, as part of the evolving community investment strategy: Innovation and implementation of strategic interventions (referred to as systems change for the purposes of this NOFO).
The combined resources made available through CalOptima Health board allocated funds and HHIP has to da
te facilitated broad reaching and meaningful investments across Orange County. This third funding opportunity will focus on equity grants, systems change programs and capital for transitional housing (including recuperative care). The application period is January 17 – February 22, 2024.
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Community Investment Strategy
CalOptima Health is prioritizing projects and programs that are trauma-informed, inclusive, non- residency restricted, low barrier, and aligned with housing-first and harm-reduction principles. This includes ensuring the “voice of lived experience” is integrated into all phases: design, development, implementation and evaluation.
CalOptima Health is committed to the following:
Working toward a cohesive, countywide approach to address and prevent homelessness Developing equitable systems that distribute resources among a variety of community service providers across all three Orange county Service Planning Areas Promoting and facilitating innovation in data collection and sharing, with emphasis on greater integration across systems
Increasing the number of service providers and the capacity of these providers to add to the overall continuum of care infrastructure throughout Orange County Establishing and/or using best practices in providing care by meeting members “where they are” and increasing access to that care
Delivering culturally competent services to traditionally underrepresented populations (e.g., families, seniors, LGBTQIA+ and Black, Indigenous and People of Color [BIPOC]) Investment and implementation of programs that add to the available affordable housing pool
Description of Funding Priorities
Applications must demonstrate how the request adds to the existing cadre of services offered in Orange County with a focus on non-duplicative, sustainable programming.
This funding opportunity is purposefully broad in order to solicit as many ideas as possible from organizations across Orange County working to address the homelessness crisis. CalOptima Health will be working to award funds across all three Service Planning Areas unless otherwise noted.
Funding Priority #1: Equity Grants
The objective of this funding priority is to ensure all individuals experiencing homelessness have access to housing and supportive services that center around their lived experience, are reflective of their unique experiences and are culturally appropriate. Applicants who can demonstrate expertise in addressing the needs of specific populations experiencing homelessness, including, but not limited to, BIPOC, transitional aged youth (TAY), older adults (age 55+), LGBTQIA+ populations and justice- involved individuals, will be prioritized during the application review process.
Requirements:
1. Organizations must have an annual operating budget of $5 million or less.
2. Organizations must demonstrate how they support specific populations experiencing homelessness connecting to permanent supportive or affordable housing.
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3. Organizations are not eligible if they’ve previously received a CalOptima Health HHIP Equity or HHIP Capacity grant in a previous funding round. Participants in CalOptima Health’s Nonprofit Healthcare Academy are eligible for this opportunity if they meet the other requirements.
Funding Priority #2: T ransitional Housing
The objective of this funding priority is to increase availability and access to transitional housing (including medical transitional housing such as recuperative care) among people experiencing homelessness. An effective and dignified transitional housing project makes available supportive and other medically appropriate services, as applicable, that center on the person’s lived experience, are reflective of their unique experiences and are culturally appropriate. Occupancy can range anywhere from six to 24 months. Please see the attached housing continuum document (page 7) for more details on CalOptima Health’s perspective on transitional housing and how it fits into the full housing continuum.
Projects that deliberately increase equitable and countywide access to transitional housing will be prioritized along with projects that take a capital approach to addressing an identified transitional or temporary housing service deficit in Orange County. Projects that can launch more quickly will also be prioritized. Creativity is encouraged in bridging the transition from street and/or emergency shelter to more permanent housing.
Examples of transitional housing, for the purposes of this funding opportunity can include but are not limited to the following:
• Recuperative Care
• Short-term Post Hospitalization Housing
• Bridge Housing
• Sober Living Centers
• Residential Recovery Homes
Requirements:
1. Projects must be located within the county of Orange.
2. Applicants must have site control and be able to provide the site address. Site control is not required only in cases where grant funding is being used to purchase the property. However, in those instances the address of the property to be purchased must still be included and there must be formal documentation of intent to purchase.
3. Projects must provide a letter of support for the proposed project from the city in which it is located. The address of the site must be included in the letter of support.
4. Applicants must demonstrate how the project is sustainable once launched including revenue generated as a contracted provider of CalOptima Health Enhanced Care Management and/or Community Supports.
5. Applicants must have prior experience with developing and/or operating transitional housing.
6. Proposed projects must offer a minimum of six months occupancy and up to 24 months.
7. Proposed projects must provide privacy and enable people to perform normal household tasks in a space that is both safe and dignified.
8. Emergency shelter or congregate housing sites are not eligible for this funding opportunity.
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Funding Priority #3: Systems Change Projects
This funding priority focuses on addressing homelessness through the development of innovative interventions that are county-wide or have county-wide implications. It is designed to support projects and initiatives that seek and deploy creative and effective solutions to combat homelessness, with a strong emphasis on implementing evidence-based practices and novel approaches.
Successful applicants will develop and pilot groundbreaking programs aimed at reducing homelessness and improving the lives of those affected by it. Some examples include, but are not limited to, addressing student homelessness, equitable access to data and technology solutions such as the Homeless Management Information System, improve quality of services in permanent supportive/other housing, community engagement. This could mean operationalization of a new process, practice, etc.
All applicants will be given the opportunity to meet with staff for a 30-minute phone consultation prior to submission of Systems Change applications to determine if their proposal is appropriate for this funding opportunity. Those phone consultations can be scheduled by submitting a request to [email protected]. Please title your email “Request for HHIP Systems Change Phone Consult” and we will reply to you with available times.
Req
uirements:
1. Proposed projects must be implemented county wide or have demonstrable county-wide impact.
2. Applications must clearly articulate the problem to be solved, propose a feasible solution, and demonstrate how success or progress can be achieved.
3. Applicants must clearly demonstrate experience with implementing system-wide interventions and/or programs.
Grant Budgets, Amounts and Duration
Funding
Priority
Grant
Request Limit
Total
Amount
Available
Notes Specific to this Priority Project Duration
Equity
Grants
No minimum
$100,000
maximum
request
$1 million
• Up to 10 organizations will be
selected for funding.
• One-year projects.
Transitional
Housing
No minimum
$5 million
maximum
Up to $25
million
• A minimum of 5 awards could
be made in this category but
potentially more.
• Dependent on capital
project timeline.
• Not restricted to one-
year; can be multi-year.
Systems
Change
Projects
$2 million
minimum
$10.18 million
maximum
Up to $10.18
million
• A minimum of one award will
be made but there is potential
for up to five.
• Projects can be from
one to three years in
duration.
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Payment will be made as defined in the fully executed grant agreement for awarded grants. Capital projects are paid in full upon execution of the contract. Prohibited budget items include lobbying and ongoing rental assistance.
Entities Eligible to Apply
1. Or
ganizations may only submit one (1) application for this funding opportunity.
2. For Equity grants and Systems Change projects : A pplicants must be a 501(c)(3) or equivalent in good standing with the IRS. Equivalent organizations may include tribes, public schools, universities, and local, state or federal government agencies and programs.
3. For Transitional Housing projects : P roposals will be accepted from nonprofit and for-profit organizations, joint ventures, or partnerships that serve the identified purpose of this NOFO.
4. Equity grant applicants must have annual operating budgets less than or equal to $5 million.
5. A
pplicants must propose projects or programs that align with the funding opportunity in this document and present a plan that aligns with connecting individuals to permanent/affordable housing or increasing the number of transitional housing units available in Orange County.
6. Applicants that previously received funding from CalOptima Health must be/have been in good standing with the terms of that contract or grant agreement to be eligible for new funding.
7. Funds must benefit actively enrolled CalOptima Health members.
8. Applicants are strongly en couraged to apply for funds when they are ready to implement the activity proposed for funding.
9. There are no requirements for cost sharing, matching or cost participation.
Remember: C arefully review all threshold eligibility requirements. Applicants who fail to meet threshold requirements will be deemed ineligible. Applicants must successfully complete an application and submit it by the deadline to be considered for funding.
Proposal Evaluation Criteria
Criterion Maximum
Points Description of basis for assigning points
1 CalOptima
Health core
value alignment
15 Project is trauma-informed, inclusive, non-residency restricted, low barrier, person-centered, and aligned with housing-first and harm-reduction principles.
2 Program
Description
15 Program description is clear, concise and
3 Program
Implementation
10 Plan is complete and includes specific objectives, logical and feasible activities, as well as clearly defined measures of success.
4 Sustainability 10 Program or projects is sustainable beyond this funding opportunity if funding is awarded or is time-bound and does not require continuous funding.
5 Readiness 15 Projects that can launch soon after grant award will receive more points.
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6 Experience 15 Expertise in providing proposed services and/or implementation of similar projects in the past.
Must be clearly articulated in application.
7 Capacity of
Applicant
10 Able to demonstrate financial and management capacity to carry out the project, as evidenced in the submission of required materials in application portal.
8 Evaluation Plan 10 Applicant clearly articulates a feasible and well thought out plan for evaluating project success.
Total Earnable Points 100
Application Timeline
Action Date
Application Released/Portal Opens 1/17/2024
Round 3 NOFO – Bidder’s Conference
* Q&A posted on the Funding Opportunity webpage by 2/5/2024 1/31/2024 at 11 a.m. PST Application Deadline 2/22/2024 at 5 p.m. PST
Internal Review 2/23 – 3/8/2024
CalOptima Health Board of Director’s Meeting 4/4/2024
Announcement of Approved Grants 4/5/2024
Grants Start Date 5/1/2024
Documents and Portal Access
All documents related to this NOFO and application portal access are available at this site:
https://www.caloptima.org/en/About/CurrentInitiatives/CalAIM/FundingOpportunities
Bidder’s Conferences
Join our Bidder’s Conference for this funding opportunity by registering through the link below:
Bidder’s Conference
Date and Time: Wednesday, January 31, 2024, 11 a.m. PST Link: https://us06web.zoom.us/webinar/register/WN_vcAqy2XoQJyATU_vCiSrPg Questions about the funding opportunity or application? Contact the CalAIM Program Development team at [email protected].
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