CA Review ___AF___
Meeting Date: Dec. 6, 2022
To: Mayor and City Council/President and Board Members
From: Scott Chadwick, City Manager/Executive Manager
Staff Contact: Dave Padilla, Utilities Engineering Manager [email protected], 442-339-2356
Shoshana Aguilar, Senior Management Analyst
[email protected], 760-814-0241
Subject: Adoption of Hydraulic Modeling Fees
Districts: All
Recommended Actions
Hold a public hearing and:
1. Adopt a resolution of the City Council of the City of Carlsbad establishing fees for hydraulic modeling services for the wastewater collection system.
2. Adopt a resolution of the Board of Directors of the Carlsbad Municipal Water District establishing fees for hydraulic modeling services for the water and recycled water system.
Exec
utive Summary
The potential hydraulic impacts on utility systems resulting from proposed development projects are evaluated by a hydraulic modeling consultant using a computer model of a utility pipe network. The current practice for development project reviews is to have a developer’s hydraulic modeling consultant conduct the analysis, often using computer models that do not adequately characterize a project’s impacts on water, recycled water and wastewater systems.
The Utilities Department staff now have the capability to conduct hydraulic modeling using the services of an independent consultant and an updated and calibrated hydraulic model of the water distribution system. This is necessary to identify and mitigate the potential hydraulic impacts on utility systems resulting from development projects.
Staff are recommending establishing a new set of service fees to charge developers for hydraulic modeling and staff review expenses.
The City Council and the Carlsbad Municipal Water District Board of Directors1 voted on Nov. 8, 2022, to schedule a public hearing on the matter under California Government Code sections
1 The CMWD Board approved the water-related fees contained in the city’s Master Fee Schedule through Resolution No. 1674 on June 14, 2022.
Dec. 6, 2022
Item #11 Page 1 of 11
JOINT CI TY c ,o u NCIL AND
CARLSBA ID ,MUNIC I PA l WATER DISTR I CT
Staff Report
66016-66019. The Building Industry Association of Southern California had requested notification regarding new fees and has been notified.
Discussion
Background
The potential hydraulic impacts on utility systems resulting from proposed development projects are evaluated by a hydraulic modeling consultant using a computer model of a utility pipe network. (Hydraulic refers to liquid moving in a confined space under pressure.) This model predicts pipe flow velocity and pressure under the added hydraulic demands of development projects.
As described in the city’s engineering standards, new developments may be required to conduct hydraulic analyses and produce impact studies to determine system capacity and any improvements needed to meet a project’s demands. The cost of this analysis should be borne by the developers creating the need.
The developers’ hydraulic modeling consultant have been conducting this analysis, often using simplified and uncalibrated or outdated computer models that fail to adequately measure their projects’ impacts.
The analyses conducted by consultants also do not account for recent changes to the water system resulting from development, or from the city and water district’s capital improvement projects. These models are insufficient to adequately assess the hydraulic impacts of proposed development projects and to identify pipe segments that may require the developer to increase the capacity of a pipe to accommodate the new flow.
Updated model of system
The new hydraulic model of the potable water distribution system was built by Innovyze, a leading software developer in the water industry, using CMWD’s GIS-based pipe network. The model was calibrated by Kennedy Jenks, CMWD’s hydraulic modeling consultant, using system- wide hydraulic demands from metered water consumption data. The cost to build and calibrate the hydraulic model is an operational cost and is not included in the proposed fees.
This new model will provide a more accurate analysis of the water distribution system’s capacity in identifying any improvements needed to convey potable water to development sites, in accordance with the city’s engineering standards and California’s Subdivision Map Act, which gave local agencies control over subdivisions.
Staff propose to task the consultant with modeling the hydraulic demands of new developments based on the project’s development density and type, the water generation factors contained in the Water Master Plan and fire flow requirements of adopted city fire codes and standards. This will ensure an unbiased analysis of the potential hydraulic impacts using the latest water distribution system model. The analysis will be able to identify any pipe segments that cannot meet the required hydraulic design criteria, which are flow rate and pressure, due to deficient pipe diameters or inadequate water system redundancy.
By establishing a new set of service fees, staff will be able to charge developers for the hydraulic modeling and staff review expenses. The independent hydraulic modeling consultant would bill the Utilities Department or Carlsbad Municipal Water District directly, and the actual Dec. 6, 2022
Item #11 Page 2 of 11
costs for consultant fees would be passed on to the developer. The proposed fee would include staff time for review and processing of the consultant’s work at rates established in the most recent City Council-approved cost-of-service study.
Basis for potable water modeling fee
The cost to conduct hydraulic modeling varies with the size of a project and the complexity of the water system, and staff recommend recovering the cost based on the consultant’s actual billings. Maintaining the model with the help of a contracted consultant to reflect changes in the water distribution system would ensure reliability and confidence in the modeling results.
The end results are that developers can have their projects approved with confidence that their water demands will be met and that deficient pipe segments would be replaced when hydraulic impacts are identified, in compliance with CMWD Ordinance No. 47,2 the city’s engineering standards and the Subdivision Map Act.
A companion processing fee could also be established for staff time to review consultant work.
At present, staff costs for water hydraulic modeling or review are not recovered by development review fees. The proposed processing fees, described in more detail below, are based on the city’s most recent cost-of-service study, which was adopted by the City Council in 2021. Staff review of hydraulic modeling results ensures that no project moves forward without available water system capacity for the proposed development.
Basis for recycled water and wastewater modeling fees
There is currently no need for recycled water hydraulic modeling because the distribution system is in its final stages of build-out, in accordance with the Recycled Water Master Plan and the associated hydraulic modeling. The recycled water distribution system has fewer customer connections and smaller demands than the potable system’s domestic and firefighting demands. The fee structure established by the recommended action will apply when hydraulic modeling is necessary to evaluate recycled water demands not previously evaluated in the Recycled Water Master Plan.
Wastewater hydraulic modeling also involves a complex pipe network and sewer generation rates and, with the exception of capital improvement project design, is currently performed by a developer’s consultant. While the Utilities Department does not currently charge for wastewater hydraulic modeling by the city’s consultant, staff propose to establish this fee at the actual cost to evaluate new developments or those that propose a zoning change or higher development density that differs from the Sewer Master Plan, as updated in 2019, that would result in increased rates of sewer generation.
A processing fee will also be established for staff time to initiate consultant tasks and review their work.
Proposed fee structure
This proposed fee structure is similar to the Community Development Department’s fees for “third party review-consultant cost,” which is billed at actual cost and can be found in the fiscal year 2022-23 Master Fee Schedule. A processing fee will be charged for each third-party review for determination of modeling scope, engineering review and processing consultant billings.
2 CMWD Ordinance No. 47 defined and established the prices and conditions of water delivery, and provided the method of establishing and fixing rates and charges for water delivered and for the extension of CMWD’s facilities.
Dec. 6, 2022
Item #11 Page 3 of 11
These fees will apply when new or increased hydraulic demands not previously accounted for in City or CMWD master plan studies or system hydraulic models are proposed.
Fee name Fee
type Notes Hours@rate Fee/deposit
Third-party hydraulic modeling-
consultant cost
Per
project 1, 4 Actual cost
Water
System pressure check Each 2 1.5@$217 $326
1-4 units residential and commercial
greater than 9,400 square feet
Per
project 2, 3 3.0@$217 $651
All others Per
project 2, 3 5.0@$217 $1,085
Recycled water
System pressure check Each 2 1.5@$201 $302
1-4 units residential and commercial
greater than 9,400 square feet
Per
project 2, 3 2.5@$201 $503
All others Per
project 2, 3 5.0@$201 $1,005
Wastewater
1-4 units residential and commercial
greater than 9,400 square feet
Per
project 2, 3 2.0@$191 $382
All others Per
project 2, 3 4.0@$191 $764
1. Set by city policy
2. Set by 2021 Cost-of-Service Study
3. Staff cost is in addition to actual consultant billings
4. Total fee will reflect actual consultant billings
Dec. 6, 2022
Item #11 Page 4 of 11
Other cities and water agencies also charge developers for hydraulic modeling. In some cases, deposit accounts are used, and costs for third party modeling and engineering staff review may be withdrawn from the accounts. The table below shows how some other agencies bill:
Agency Fee Fee basis
City of Oceanside Varies, $2,626 to over
$10,662 Based on number of units
Ramona Municipal Water District $2,000 Deposit plus time and materials
San Dieguito Water District
(Encinitas) $1,000 Deposit plus time and
materials
Vallecitos Water District (San
Marcos and a portion of Carlsbad) $600 to $2,500 Deposit plus time and materials
Vista Irrigation District $1,140 Flat fee
Options
Staff provide the following options for consideration by the City Council and the CMWD Board:
1. Hold a joint public hearing of the City Council of the City of Carlsbad and the Board of Directors of the Carlsbad Municipal Water District and adopt resolutions establishing hydraulic modeling fees
Pr os:
• Provides a mechanism for cost recovery of consultant hydraulic modeling costs and staff costs for review and processing
• Will allow for an independent evaluation of hydraulic impacts resulting from development projects using the latest, calibrated hydraulic model • Conforms with the process described in the city’s engineering standards for development project review and processing
• Should decrease staff time for review of hydraulic studies and the number of submittal iterations for developers
Co
ns:
• Developers will have to familiarize themselves with a new process • Developers will be billed for the Utilities Department staff’s time
2. Do not conduct a public hearing or do not adopt resolutions establishing hydraulic modeling fees
Pr os:
• Developers will continue to contract directly with a consultant for hydraulic modeling services
Co
ns:
• Does not provide a mechanism to recover staff costs for review and processing of hydraulic studies
• Costs for review and processing of hydraulic studies are not borne by the developer Dec. 6, 2022
Item #11 Page 5 of 11
• Continues the iterative review process for staff review of studies that does not conform with the city’s engineering standards
• Hydraulic studies will continue to use models that do not adequately characterize potential impacts on utility systems resulting from development projects Staff recommend Option 1 for the City Council’s and the CMWD Board’s approval.
Fiscal Analysis
There will be no net revenue or expense associated with the consultant cost because that fee will reimburse the city and CMWD at the actual cost. Staff time will be recovered at the full cost of service which includes direct and indirect costs as calculated in the city’s most recent cost-of- service study.
Based on past reviews, staff estimate up to 50 hydraulic modeling results could be reviewed annually. Based on historical trends, if the City Council and the CMWD Board adopt the hydraulic modeling fees, annual revenue is estimated at $48,800, which would be routed to the operating fund responsible for hydraulic modeling costs. These fees may offset project costs in water, recycled water or wastewater.
Next Steps
If the City Council and the CMWD Board wish to establish the hydraulic modeling fees as recommended by the staff and adopt the resolutions in Exhibits 1 and 2, the fees will go into effect no sooner than 60 days after adoption, in accordance with California Government Code Section 66017, or Feb. 4, 2023.
Environmental Evaluation
This action does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and therefore does not require environmental review.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act, and it was available for public viewing and review at least 72 hours prior to the scheduled meeting date. In addition, notices on the proposed fee changes were published in a newspaper of general circulation and sent to the Building Industry Association of Southern California.
Exhibits
1. City Council resolution
2. CMWD Board resolution
Dec. 6, 2022
Item #11 Page 6 of 11
RESOLUTION NO. 2022-276
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING FEES FOR WASTEWATER COLLECTION SYSTEM
HYDRAULIC MODELING SERVICES
WHEREAS, the City Council received a report from staff on hydraulic modeling services on Nov. 8, 2022, and scheduled a public hearing for Dec. 6, 2022; and WHEREAS, the City Council has determined the cost of providing hydraulic modeling services for the wastewater collection system; and
WHEREAS, the City Council finds it necessary to recover the costs for these city services; and WHEREAS, the City Council has held the necessary public hearing and allowed for public comment on the establishment of said fees.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the fees shown in Attachment A are established and will be incorporated into the Master Fee Schedule. The fees shall become effective on Feb. 4, 2023.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 6th day of December, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
MATT HALL, Mayor
for
Exhibit 1
Dec. 6, 2022 Item #11 Page 7 of 11
Yt'v
Attachment A
Attachment A to Exhibit 1-Hydraulic Modeling Fees
Fee Name Fee Type Notes Fee/Deposit
Third-Party Hydraulic Modeling-consultant cost per project 1, 4 Actual Cost Wastewater
1-4 units residential and
commercial > 9,400 s.f. per project 2, 3 $382
All others per project 2, 3 $764
[1] Set per city policy
[2] Set per 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings [4] Total fee will reflect actual consultant billings
Dec. 6, 2022
Item #11 Page 8 of 11
RESOLUTION NO. 1690
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,
ESTABLISHING FEES FOR WATER AND RECYCLED WATER SYSTEM
HYDRAULIC MODELING SERVICES
WHEREAS, the Board of Directors of the Carlsbad Municipal Water District, or CMWD, approved the water-related fees contained in the city's Master Fee Schedule through Resolution No. 1674 on June 14, 2022; and
WHEREAS, the CMWD Board of Directors received a report from staff on hydraulic modeling services on Nov. 8, 2022, and scheduled a public hearing for Dec. 6, 2022; and WHEREAS, the CMWD Board of Directors has determined the cost of providing hydraulic modeling services for the water and recycled water systems; and WHEREAS, the CMWD Board of Directors finds it necessary to recover the costs for these city services; and
WHEREAS, the CMWD Board of Directors has held the necessary public hearing and allowed for public comment on the establishment of said fees.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the fees shown in Attachment A are established and will be incorporated into the Master Fee Schedule. The fees shall become effective on Feb. 4, 2023.
Exhibit 2
Dec. 6, 2022 Item #11 Page 9 of 11
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 6th day of December, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
MATT HALL, President
for
J,._,, FAVIOLA MEDINA, City Clerk Services Manager
r/- (SEAL)
Dec. 6, 2022 Item #11 Page 10 of 11
Attachment A
Attachment A to Exhibit 2-Hydraulic Modeling Fees
Fee Name Fee Type Notes Fee/Deposit
Third-Party Hydraulic Modeling-consultant
cost per project 1, 4 Actual Cost
Water
System Pressure Check each 2 $326
1-4 units residential and commercial > 9,400
square feet (s.f.) per project 2, 3 $651
All others per project 2, 3 $1,085
Recycled Water
System Pressure Check each 2 $302
1-4 units residential and
commercial > 9,400 s.f. per project 2, 3 $503
All others per project 2, 3 $1,005
[1] Se
t per city policy
[2] Set per 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings [4] Total fee will reflect actual consultant billings
Dec. 6, 2022
Item #11 Page 11 of 11
AFFIDAVIT OF MAILING
NOTICE OF PUBLIC HEARING
TO: CITY CLERK
DATE OF PUBLIC HEARING: f:JQ{!_, 0, d[):J.;)
J
SU BJ ECT 1----/2-e.& /;=- H::iJ2-_,_,j_,._(!_, fY]Q.d2.11 ~ ~- ,J ' fu.() LOCATION: [?i200 Carlsbad Village Drive, Carlsbad, CA 92008 D Other: _________________ _
DATE POSTED TO CITY WEBSITE / / /(}.;;)~
DATE NOTICES MAILED TO PROPERTY OWNERS: ________ _ _
NUMBER MAILED :
I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad and the foregoing is true and correct.
DEPARTMENT: ~TY CLERK'S OFFICE □ OTHER _______ _
~wYYJOAa.t71U~
Signature Date
----- ------------ ------------------------------------------------------------- SENT TO FOR PUBLICATION VIA E-MAIL TO: □ Union Tribune on ___ _ ~ Coast News on· }j/J~ /;J.::)_
PUBLICATION DATE: Union Tribune --------- -----
Coast News _.....,l-'-l-'--!-"-":J=....,,s: ....... -'--l-ba~2::,,,.,.c------ l declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carls bad and the foregoing is true and corre ct.
DEPARTMENT: [3-c'(TY CLERK'S OFFICE □ OTHER _____ __ _
\ jM:naJ ~
Signature Date
Attachments: 1) Mailing Labels
2) Notice w/ attachmen ts
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN to you, because your interest may be affected, that the City Council of the City of Carlsbad and the Carlsbad Municipal Water District will hold a joint public hearing at the Council Chamber, 1200 Carlsbad Village Drive, Carlsbad, Californi a, at 5 p.m. on Tuesday, Dec. 6, 2022, to consider adopt ing fees for hydraulic modeling services for the water, recycled water, and wastewater systems.
Those persons wishing to speak on this proposal are cordially invited to attend the public hearing. Copies of the staff report will be available by Friday, Dec. 2, 2022. If you have any questions, please contact Dave Padilla in the Utilities Department at (442)339-2356 or dave.pad [email protected]. The meeting can be viewed online at https://www .carlsbadca.gov/city- hall/meetings-agendas or on the City's cable channel.
In addition, written comments may be submitted to the City Council at or prior to the hearing via U.S. Mail to the attention of Office of the City Clerk, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, or via email to clerk@carlsbadca .gov.
If you challenge the fees for hydraulic modeling services in court, you may be limit ed to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City of Carlsbad, Attn: City Clerk's Office, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, and at or prior to the public hearing.
PUBLISH: Nov. 25, 2022
CITY OF CARLSBAD
CITY COUNCIL
Public Hearing for New Hydraulic
Modeling Fees
Vicki Quiram, Utilities Director/General Manager
Shoshana Aguilar, Senior Management Analyst
December 6, 2022
Ccarlsbad
Municipal Water District
( City of
Carlsbad
RECOMMENDED ACTIONS
1. Adopt a resolution of the City Council of the City of Carlsbad es
tablishing fees for hydraulic modeling services for the wastewater collection system.
2. Adopt a resolution of the Board of Directors of the Carlsbad Mu
nicipal Water District establishing fees for hydraulic modeling services for the water and recycled water system.
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees Ccarlsbad ( City of
Municipal Water District Carlsbad
BACKGROUND
Current practice:
• Developer’s hire engineers to determine water
de
mand and wastewater flow and to study whether
Carlsbad has sufficient infrastructure capacity to
serve the development.
• Hydraulic models used are not standardized or up to
da
te and can be inaccurate.
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees WiW!
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Figure 4 Ccarlsbad
Municipal Water District
( cityof
Carlsbad
BACKGROUND
Proposed practice:
• Utilities partnered with a third-pa rty to update
and calibrate hydraulic models to accurately
determine development impacts to water and
wastewater service
• Moving forward, developers will have their
pr
ojects evaluated by the third-party engineering
firm using the new hydraulic models
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees ,.
I ..... , 11 ·:;sw
Model
Meter
Calibration PIiots
Nr, ' 2u..M 1ota,1Z 1:n,1 111.ll)·ll 1"-W -.,· l, tz"'4 '1111
Average Maximum Minimum
7.62 10.55 4.60
7.82 11.03 4.35
~~n.1.1,1 ~1,·.n.1
Ccarlsbad
Municipal Water District
( cityof
Carlsbad
FEE STRUCTURE
Proposed practice:
• Third-party hydraulic modeling fees will be charged to d
evelopers (actual cost)
• Fee for staff review and processing of consultant’s work ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees Ccarlsbad ( City of
Municipal Water District Carlsbad
• Estimated 50 hydraulic modeling studies per year
• Estimated annual revenue for staff time: $48,800
• Deposited to the applicable operating fund to
rec
over staff time cost
FISCAL ANALYSIS
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees Ccarlsbad ( City of
Municipal Water District Carlsbad
• Consider adopting the hydraulic modeling fees into
the
FY 2022-23 Master Fee Schedule
• If adopted, the fees will be effective no sooner than 60 days after adoption (Government Code § 66017),
or Feb. 4, 2023.
NEXT STEPS
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees Ccarlsbad ( City of
Municipal Water District Carlsbad
RECOMMENDED ACTIONS
1. Adopt a resolution of the City Council of the City of Carlsbad es
tablishing fees for hydraulic modeling services for the wastewater collection system.
2. Adopt a resolution of the Board of Directors of the Carlsbad Mu
nicipal Water District establishing fees for hydraulic modeling services for the water and recycled water systems.
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees Ccarlsbad ( City of
Municipal Water District Carlsbad
QUESTIONS
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees Ccarlsbad ( City of
Municipal Water District Carlsbad