2025-04-29; City Council; 05; Amendment to Carlsbad Municipal Code Chapter 13.10, Section 13.10.080 Sewer Benefit Area fees A through M

CA Review CKM

Meeting Date: April 29, 2025

To: Mayor and City Council

From: Geoff Patnoe, City Manager

Staff Contact: Shoshana Aguilar, Senior Management Analyst [email protected], 760-814-0241
Dave Padilla, Assistant Utilities Director
[email protected], 442-339-2356

Subject: Amendment to Carlsbad Municipal Code Chapter 13.10, Section 13.10.080 Sewer Benefit Area fees A through M

Districts: All

Recommended Action
Introduce an ordinance amending Carlsbad Municipal Code Chapter 13. 10, Section 13.10.080 – Sewer Benefit Area Fees A through M.

Executive Summary
The city has several sewer benefit areas in which users are charged a fee to connect to and use the city’s sewer system. This item is to introduce an ordinance modifying the Carlsbad Municipal Code so that the sewer benefit area fees may be adjusted by a resolution instead of an ordinance. This would increase efficiencies and is in line with how sewer connection fees and most other city fees are set.

No adjustments to the fees are proposed.

Explanation & Analysis
The Sewer Benefit Area fees, sometimes referred to as capacity charges, cover the proportional cost of providing wastewater collection facilities in each sewer benefit area. Carlsbad Municipal Code Chapter 13.10, Section 13.10.080 states, except as provided, every person who wishes to use the city’s sewer facilities in Sewer Benefit Areas A through M shall pay a fee to the city before the city grants a building permit.
• Sewer benefit area fees are distinguished from sewer connection fees, which cover the cost of connecting to the wastewater collection system. • Not all areas of the city are included in a sewer benefit area, as shown in Exhibit 3. • For projects connecting to the city’s wastewater collection system outside of a sewer benefit area, only the sewer connection fee is charged under the City Council-approved Master Fee Schedule.

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Item #5 Page 1 of 6

• Projects in a sewer benefit area are charged the sewer benefit area fee along with the sewer connection fee.
• Sewer benefit area fees are only charged for new connections to the wastewater collection system rather than on a monthly basis.

Staff periodically review sewer benefit area fees to make sure the fees appropriately recover the city’s costs. Under the Municipal Code, the fees need to be adjusted through an ordinance.

Adjusting fees by ordinance was a requirement of California Health and Safety Code Section 5471, which authorizes the fees. However, Section 5471 was amended in 2017 to allow the fees to be adopted by resolution. If adopted, this change will allow sewer benefit area fees to be adjusted more efficiently and in a manner comparable to other city fees.

Existing ordinance
The current ordinance lists the fee per equivalent dwelling unit for each sewer benefit area, A through M. It also states that the fees shall be adjusted annually based on the Engineering News Record Los Angeles Construction Cost Index with a base year index of April 1, 2010. The ordinance was last updated in 2012.

Proposed change
As described in Exhibit 2, the proposed change is to remove the fee amounts and state that sewer benefit area fees will be set by resolution, as authorized by California Health and Safety Code Section 5471, and adjusted annually – effective September 1 – by the annual change to the Engineering News Record Los Angeles Construction Cost Index. The fees and sewer benefit areas may also be changed in accordance with an associated engineering report, which may be approved by a resolution.

Fiscal Analysis
Amending Municipal Code Chapter 13.10, Section13.10.080 has no fiscal impact. Staff are not proposing any changes to the fee amounts.

Next Steps
An ordinance to amend the Municipal Code is typically adopted after the City Council’s second reading of the item. Once the ordinance is adopted, the City Clerk’s Office will publish a summary of the ordinance in a newspaper of general circulation within 15 days. The ordinance would be effective 30 days after its adoption. If approved today, staff will return at a future meeting for the adoption of the ordinance.

Environmental Evaluation
The proposed action to amend the Carlsbad Municipal Code to allow for adjustment of sewer benefit area fees by resolution is exempt from environmental review under the California Environmental Quality Act Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment.

Exhibits

1. City Council Ordinance

2. Proposed change

3. Sewer benefit areas map
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Exhibit 1
ORDINANCE NO. CS-491
AN OR

DINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE CHAPTER 13.10, SECTION 13.10.080 – SEWER BENEFIT AREA FEES A THROUGH M WHEREAS, on July 10 , 2012, the City Council of the City of Carlsbad, California, amended Carlsbad Municipal Code Chapter 13.10, Section 13.10.080 – Sewer Benefit Area Fees A Through M , describing the fees for each area and the cost inflator; and WHEREAS, Section 13.10.080 currently requires sewer benefit area fees to be set by ordinance; and
WHEREAS, the California Health & Safety Code Section 5471 allows the fees to be adopted by resolution; and
WHEREAS, the City Council has determined that additional revision s to the code are necessary so the fees may be set via resolution similar to other city fees.

NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains as follows:

1. That the above recitations are true and correct.

2. That the proposed action to amend the Carlsbad Municipal Code to allow for adjustment of SBA fees by resolution is exempt from environmental review under the California Environmental Quality Act, or CEQA, Guidelines Sections 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment.

3. That the Carlsbad Municipal Code Chapter 13.10, Section 13.10.080 is amended to read as follows:

Chapter 13.10

SEWER CONNECTION AND CAPACITY PERMITS AND FEES
Section 13.10.080 Sewer benefit area fees.

Except as provided, every person who wishes to use the city's sewer facilities in a sewer benefit area shall pay to the city, prior to the issuance of a building permit, a sewer benefit area fee, which will be set by resolution.

Se
wer
benefit area fees shall be adjusted annually effective September 1, by the annual change to the Engineering News Record Los Angeles Construction Cost Index. The fees may be changed and April 29, 2025
Item #5 Page 3 of 6
sewer benefit areas may be added or removed by resolution in accordance with an associated engineering report.

SEVERABILITY: If any portion of this ordinance , or its application to particular persons or ci
rcumstances is held to be invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision will not affect the validity of the remaining portions of this chapter to persons or circ
umstances not similarly situated.

EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen
days after its adoption.

INTRODUCED AND
FIRST READ at a Regular Meeting of the Carlsbad City Council on the 29th day o
f April, 2025, and thereafter
PA
SSED, A PPROVED AND ADOPTED at a R egular Me eting o f the C ity C ouncil of t he C ity o f Carlsbad on the __ day of ________, 2025, by the following vote, to wit:

AYES:

NAYS:

ABSTAIN:

ABSENT:
__________________
____________________
KEITH BLACKBURN, Mayor
_______ ___________
____________________
SHERRY FREISINGER, City Clerk
(SEAL)
April 29, 2025
Item #5 Page 4 of 6
Exhibit 2
Chapter 13.10

SEWER CONNECTION AND CAPACITY PERMITS AND FEES
Section 13.10.080 Sewer benefit area fees A through M.

Except as provided, every person who wishes to use the city's sewer facilities in a Ssewer Bbenefit Aareas A through M, shall pay to the city, prior to the issuance of a building permit, the followinga sewer benefit area fee, which will be set by resolution.:
$95

5.00 per equivalent dwelling unit for Sewer Benefit Area A; $1,087.00 per equivalent dwelling unit for Sewer Benefit Area B; $2,003.00 per equivalent dwelling unit in Sewer Benefit Area C; $2,007.00 per equivalent dwelling unit in Sewer Benefit Area D; $2,960.00 per equivalent dwelling unit in Sewer Benefit Area E; $2,976.00 per equivalent dwelling unit in Sewer Benefit Area F; $600.00 per equivalent dwelling unit for Sewer Benefit Area G; $873.00 per equivalent dwelling unit for Sewer Benefit Area H; No fee per equivalent dwelling unit for Sewer Benefit Area I; $1,647.00 per equivalent dwelling unit in Sewer Benefit Area J; $1,302.00 per equivalent dwelling unit for Sewer Benefit Area K; $1,302.00 per equivalent dwelling unit for Sewer Benefit Area L; and $64.00 per equivalent dwelling unit for Sewer Benefit Area M.

The sSe
wer benefit area fees shall be adjusted annually effective September 1st, by the annual change to the Engineering News Record Los Angeles Construction Cost Index. The fees may be changed and sewer benefit areas may be added or removed by resolution in accordance with an associated engineering report with a base year index of April 1, 2010.

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Item #5 Page 5 of 6
Exhibit 3
April 29, 2025
Item #5 Page 6 of 6
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Legend
A,B , C Sewer Benefi t Area
Sewer Benefi t Area Bounda ry
Previous Sewer Benefit Areas I and K are now in L
Amendment to CMC Chapter 13.10.080-Sewer Benefit
Areas
Shoshana Aguilar, Senior Management
Analyst
Utilities Department
Dave Padilla, Utilities Assistant Director
April 29, 2025

PROPOSED ACTION
Introduce an ordinance amending Carlsbad
Municipal Code Chapter 13.10, Section

13.10.080 – Sewer Benefit Area Fees A
Through M.