CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
5/23/2022
1 SUBJECT:
Adoption of an Ordinance titled “An Ordinance of the City Council of the City of Pacifica Amending Chapter 6, “Sewer Charges” and Chapter 11, “Sewer Connection Charges” of Title 6, “Sanitation and Health” of the Pacifica Municipal Code Relating to Charges for Sewer Service and Connection Fees.”
RECOMMENDED ACTION:
Move to Adopt an Ordinance titled “An Ordinance of the City Council of the City of Pacifica Amending Chapter 6, “Sewer Charges” and Chapter 11, “Sewer Connection Charges” of Title 6, “Sanitation and Health” of the Pacifica Municipal Code Relating to Charges for Sewer Service and Connection Fees.”
STAFF CONTACT:
Lisa Petersen, Director of Public Works
(650) 738-3767
[email protected]
Maria Aguilar, Plant Manager
(650) 738-4660
[email protected]
BACKGROUND/DISCUSSION:
This ordinance was introduced at the regular meeting of the City Council held on May 9, 2022 and is now in order for adoption.
On the same date, City Council adopted a resolution titled “Resolution of the City Council of the City of Pacifica Approving the New Wastewater (Sewer) Service Charges and Wastewater (Sewer) Capacity Fees for Pacifica Municipal Wastewater”.
As stated earlier at that meeting, the City completes a wastewater rate study to determine the rate increases that are necessary to meet the Wastewater Division’s (Wastewater) operating costs, projected Capital Improvement Program (CIP) and expected yearly consumer price index increases. This study was completed by Bartle Wells and Associates (BWA) on January 2022.
Moreover, BWA also completed a Capacity Fee Study on February 2022 to update the City’s current wastewater capacity fees adopted in 1974 with the goals of developing fees that recover the full cost of wastewater system infrastructure assets and planned facilities expenditures that benefit new or expanded development to help ensure that growth pays its own way.
On February 15, 2022, the City Council held a publicly noticed special meeting to discuss the sewer rates and one-time developer sewer capacity fees. At this meeting, the Council adopted a resolution stating its intention to hold a public hearing and consider updating the City’s sewer service changes beginning in year FY 22/2023 for a five-year period to FY 2026/27. The Council also provided direction to staff for capacity fees related to Accessory Dwelling Units (ADU’s) and other low-income housing.
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Finally, staff followed all required public hearing notifications. The public hearing notification for the proposed sewer service charges was first sent to all the property owners on February 25, 2022 and was resent with updates when the public hearing meeting was changed from April 11, 2022 to May 9, 2022. Also, on April 20, 2022, the Notice of Public Hearing for the Proposed Adoption of Amendments to the Pacifica Municipal Codes on Sewer Charges and Sewer Connection Charges was advertised in the Pacifica Tribune and mailed to property owners who have active planning application for development projects.
ALTERNATIVE ACTION:
The Council may choose not to adopt the Ordinance titled “An Ordinance of the City Council of the City of Pacifica Amending Chapter 6, “Sewer Charges” and Chapter 11, “Sewer Connection Charges” of Title 6, “Sanitation and Health” of the Pacifica Municipal Code Relating to Charges for Sewer Service and Connection Fees” to revise and increase the City’s Sewer Charges and Revise the Sewer Connection Charges. This is not recommended as the wastewater utility needs funds for important repairs to the Collection System to address on-going I/I problems and maintenance at the aging Plant is necessary for the Plant to continue to function appropriately.
Additionally, the City needs to update their sewer connection/capacity fees, which have not been updated for many years.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Adoption of the Ordinance titled “An Ordinance of the City Council of the City of Pacifica Amending Chapter 6, “Sewer Charges” and Chapter 11, “Sewer Connection Charges” of Title 6, “Sanitation and Health” of the Pacifica Municipal Code Relating to Charges for Sewer Service and Connection Fees.”
• Stewardship of City Infrastructure and Maintaining a Safe Community: This Adoption of the Ordinance titled “An Ordinance of the City Council of the City of Pacifica Amending Chapter 6, “Sewer Charges” and Chapter 11, “Sewer Connection Charges” of Title 6, “Sanitation and Health” of the Pacifica Municipal Code Relating to Charges for Sewer Service and Connection Fees” to revise and increase the City’s Sewer Charges and Revise the Sewer Connection Charges is the last step necessary to ensure sufficient funding to maintain operations and maintenance of sewer collection system, pump stations, and the Calera Creek Water Recycling Plant.
FISCAL IMPACT:
The fiscal impact for FY2022/23 will be a revenue generation of $18.2M or a 4% increase from the prior year for Sewer Funds 34 and 18. The 4% increase is based on the 3.5% rate payer increase plus an additional 0.5% increase to revenues that is projected to be paid through new development. The increased rates will provide the wastewater program with a total of $98.7 million over the five years to address capital replacement and increased costs. As noted, the City’s current single-family capacity fees are $3,825 per unit. Updated capacity fees will generate an additional $8,566 per new single-family connection. Based on 0.5% growth per year or 64 connections, the increased fee could generate an additional $548,224 per year.
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
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May 23, 2022
ORDINANCE NO. (ID # 4991)
ORDINANCE NO. ____-C.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA AMENDING CHAPTER 6, “SEWER CHARGES” AND CHAPTER 11, “SEWER CONNECTION CHARGES” OF TITLE 6, “SANITATION AND HEALTH”
OF THE PACIFICA MUNICIPAL CODE
RELATING TO CHARGES FOR SEWER SERVICE AND CONNECTION FEES RESOLVED by the City Council of the City of Pacifica, California, that WHEREAS, on May 8, 2017, the City adopted five years of rate increases from fiscal years 2017-18 through 2021-22; and
WHEREAS, the City desires to update its sewer service charges and connections fees and delete outdated sections of the Sewer Serve Charge Code and Sewer Connection Fees Code; and
WHEREAS, the City wishes to make these changes to streamline adoption of charges in the future; and
WHEREAS, Pacifica Municipal Code sections 6-6.404 and 6-6.406 currently provide the maximum and minimum annual sewer charges for FY 2017 through 2022 and Article 10 provides the manner in which rate increases may be established; and WHEREAS, staff is recommending that Pacifica Municipal Code sections 6-6.404 and 6-
6.406 be amended to allow the City Council to fix rates for sewer services by resolution and revised from time to time with the objective that the City sewer system be operated on a sound economic basis; and
WHEREAS, Pacifica Municipal Code sections 6-11.102, 6-11.103 and 6-11.104 currently provide the fees for sewer connection, for sewage facilities, for the main trunk interceptor and outfall sewers, and for eliminating inflow and infiltration; and WHEREAS, staff is recommending that Pacifica Municipal Code sections 6-11.102, 6-
11.103 and 6-11.104 be amended to consolidate the sewer connection fees, inflow and infiltration fees, trunk line fees, and sewer tap fees into one sewer capacity fee and to allow the City Council to fix rates for sewer connection fees by resolution and revised from time to time with the objective that the City sewer connection system be operated on a sound economic basis; and
NOW, THEREFORE, the City Council of the City of Pacifica does ordain as follows:
Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.
Section 2. Amended. Sections 6-6.406, “Minimum rate”, of Article 4 and Article 10 within Chapter 6, “Sewer Charges” of Title 6 of the Pacifica Municipal Code are hereby amended by repealing Section 6-6.406 and Article 10 in their entirety.
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Section 6-11.103 “Sewer connection charges to provide funds for sewage facilities, main trunk, interception, outfall sewers, acquisitions, construction or reconstruction of sanitation or sewage facilities,” 6-11.104 “Inflow/Infiltration charges to provide funds for eliminating and equivalent volume of inflow and infiltration as the wastewater flow contributed to the collection system” of Article 1 “Sewer Connection Charges” and Article 3 “Sewer Tapping Charges” within Chapter 11 “Sewer Connection Charges” of Title 6 of the Pacifica Municipal Code are hereby amended by repealing sections 6-11.103 and 6-11.104 in their entirety.
Sections 6-6.403 “Liens” and 6-6.404 “Schedule” of Chapter 6, “Sewer charges” within Title 6 “Sanitation and Health” are amended to read as follows (strikethrough marking items as deleted, underlines marking additions):
Sec. 6-6.403. Liens.
The sewer charges set forth in this article shall be a lien upon the premises and shall be reimbursable to the owner of the premises by any nonowner tenant of other occupant thereof.
(§ 2.03, Ord. 423)
Sec. 6-6.404. Schedule of Charges for Service.
The City Council shall fix the rates to be charged for sewer service by the City, by resolution, and in so doing shall distinguish the different classes of service made available and fix rates appropriate to each class of service. Rates shall be fixed and revised from time to time with the objective that the City sewer system shall be operated on a sound economic basis.
Annual sewer charges shall be based upon water consumption that is in conformity with the rate measurement formulas set forth in this article and shall be charged at a maximum of:
Fourteen dollars and point 08834 cents ($14.08834) per one hundred (100) cubic feet of water consumption, effective July 1, 2017.
Fifteen dollars and point 21541 cents ($15.21541) per one hundred (100) cubic feet of water consumption, effective July 1, 2018.
Sixteen dollars and point 43264 cents ($16.43264) per one hundred (100) cubic feet of water consumption, effective July 1, 2019.
Seventeen dollars and point 58293 cents ($17.58293) per one hundred (100) cubic feet of water consumption, effective July 1, 2020.
Eighteen dollars and point 81373 cents ($18.81373) per one hundred (100) cubic feet of water consumption, effective July 1, 2021.
(§§ 2.04 through 2.59, Ord. 423, as amended by § 1, Ord. 17-C.S., eff. March 11, 1971, § 1, Ord. 113-C.S., eff. June 12, 1974, § 1, Ord. 150-C.S., eff. June 9, 1975, § 1, Ord. 206-C.S., eff. June 9, 1977, § 2, Ord. 223-C.S., eff. March 29, 1978, § 1, Ord. 235-C.S., eff. August 14, 1978, § 1, Ord. 264-C.S., eff. August 13, 1979, § 1, Ord. 305-C.S., eff.
September 9, 1981, § 1, Ord. 345-C.S., eff. September 8, 1982, § 1, Ord. 415-C.S., eff.
August 22, 1984, § 1, Ord. 449-85, eff. August 31, 1985, § 1, Ord. 465-86, eff. August 13, 1986, § 1, Ord. 486-C.S., eff. July 22, 1987, § 1, Ord. 507-C.S., eff. July 27, 1988, § 1, Ord. 531-C.S., eff. July 26, 1989, § 1, Ord. 555-C.S., eff. August 8, 1990, § 1, Ord. 573-C.S., eff. July 24, 1991, § 1, Urgency Ord. 593-C.S., eff. July 6, 1992, § 1, Ord. 606- C.S., eff. June 28, 1993, § 1, Ord. 616-C.S., eff. July 27, 1994, § 1, Ord. 629-C.S., eff.
July 26, 1995, § 1, Ord. 643-C.S., eff. August 7, 1996, § 1, Ord. 655-C.S., eff. August 13, 1997, § 1, Ord. 662-C.S., eff. July 22, 1998, § 1, Ord. 668-C.S., eff. July 28, 1999, § 1, Pacifica City Council 5
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Ord. 676A-C.S., eff. August 9, 2001, § 1, Ord. 691-C.S., eff. August 8, 2001, § 1, Ord. 702-C.S., eff. July 24, 2002, § 1, Ord. 710-C.S., eff. August 14, 2003, § 1, Ord. 717-C.S., eff. August 26, 2004, § 2, Ord. 719-C.S., eff. October 27, 2004, § 1, Ord. 726-C.S., eff.
July 27, 2005, § 1, Ord. 727-C.S., eff. July 27, 2005, § 1, Ord. 737-C.S., eff. July 26, 2006, § 1, Ord. 748-C.S., eff. July 5, 2007, § 1, Ord. 750-C.S., eff. July 5, 2007 and § 1, Ord. 759-C.S., eff. June 26, 2008; Ord. No. 764-C.S., § 1, eff. June 11, 2009, § 1, Ord. 772-C.S., eff. June 24, 2010, § 1, Ord. 783-C.S., eff. June 23, 2011, § 1, Ord. 790-C.S., eff. June 13, 2012; § 1, Ord. 794-C.S., eff. June 13, 2013, and § 1, Ord. 816-C.S., eff.
June 7, 2017)
Sections 6-11.102 “Sewer connection charges” and 6-11-105 “Sewer connection charges: time of payment for proposed structures” of Article 1 within Chapter 11, “Sewer Connection Charges” within Title 6 “Sanitation and Health” are amended to read as follows (strikethrough marking items as deleted, underlines marking additions):
Sec. 6-11.102. Sewer connection charges.
The City Council shall fix the fees to be charged for sewer connection by the City, by resolution. Fees shall be fixed and revised from time to time with the objective that the City sewer system shall be operated on a sound economic basis.
The following charges are hereby established for the connection of the plumbing of any building or structure to the sanitary sewer system of the City:
(a) Residential schedule in the original City limits:
(1) Six Hundred and no/100ths ($600.00) Dollars for each single-family, townhouse, and condominium dwelling unit; and
(2) Four Hundred Sixty and no/100ths ($460.00) Dollars for each multiple-family dwelling unit.
(b) Commercial schedule in the original City limits:
(1) Six Hundred and no/100ths ($600.00) Dollars per unit for commercial units not discharging industrial waste; and
(2) A charge based on the biochemical oxygen demand removal requirements, gallonage of flow, or a combination thereof, for commercial and industrial units discharging industrial waste;
(c) Areas annexed:
(1) For areas annexed between November 23, 1957 and December 31, 1960, subject to the City's then existing bonded indebtedness for sewer purposes:
(i) Eight Hundred Thirty and no/100ths ($830.00) Dollars for each single-family, townhouse, and condominium dwelling unit;
(ii) Six Hundred Thirty and no/100ths ($630.00) Dollars for each multiple dwelling unit; and
(iii) A charge as set forth in subsection (b) of this section for commercial and industrial units.
(2) For areas annexed after December 31, 1960, subject to the City's then existing bonded indebtedness for sewer purposes:
(i) One Thousand Two Hundred Sixty and no/100ths ($1,260.00) Dollars for each single-family, townhouse, and condominium dwelling unit; (ii) Eight Hundred Eighty and no/100ths ($880.00) Dollars for each multiple dwelling unit; and
(iii) A charge as set forth in subsection (b) of this section for commercial and industrial units.
(d) A charge for schools based on the following formula:
Number of Students× School
Hours×5
(School Days) × 600.00*
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Number of persons
per average family
24 hours/day
7 (days of week)
* Residential unit charge
(e) A charge for the Commercial Recreation District (C-R), as set forth in Section 9-
4.1501 of Article 15 of Chapter 4 of Title 9 of this Code, for the connection of the plumbing of any building or structure to the sanitary sewer system of the City equivalent to one-half (½) the fees set forth, in subsections (a), (b), (c), and (d) of this section.
To provide for construction cost increases due to inflation, on July 1 of each year, beginning September 1, 1984, the fee shall be increased on the basis of the Construction Cost Index (CCI) in the San Francisco Bay Area, published in the issue of the Engineering News Record (ENR) by McGraw-Hill Publication Company. (§ 2, Ord. 5, as amended by § 1, Ord. 374, § 2, Ord. 128-C.S., eff. September 25, 1974, § 1, Ord. 188-C.S., eff. December 22, 1976, § 1, Ord. 265-C.S., eff. October 11, 1979, and § 2, Ord. 385-C.S., eff. February 8, 1984, as renumbered by § 2, Ord. 395-C.S., eff.
March 28, 1984; § 2, Ord. 853-C.S., eff. February 26, 2020) 6-11.105: Sewer connection charges: time of payment for proposed projects The sewer connection charges set forth in this article shall be payable at or before the time of application for such new or increased service. the time a building permit is issued by the City for the construction of a proposed building or structure.
Section 3. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), under Section 15061(b)(3) of the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.
Section 4. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.
Section 5. Publication. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.
Section 6. Effective Date. This Ordinance shall go into effect thirty (30) days after the date of its passage and adoption.
PASSED AND ADOPTED by the City Council of the City of Pacifica, State of California this 23rd day of May 2022, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Mary Bier, Mayor
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ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 8
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* * * * *
(ID # 4991) at 5/23/2022 4:30 PM City Council Regular Meeting