Agenda Item: 3
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: June 14, 2022
SUBJECT: INTRODUCTION AND FIRST READING OF AN ORDINANCE
DETERMINING THE ANNUAL STORMWATER POLLUTION
PREVENTION FEE FOR FISCAL YEAR 2022-23
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council:
1. Conduct a public hearing on the Stormwater Pollution Prevention Fee for Fiscal Year 2022-23.
2. Introduce an ordinance entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA, DETERMINING THE ANNUAL STORMWATER POLLUTION PREVENTION FEE FOR FISCAL YEAR 2022-23;" waive reading of the text and consent to read by title only, as listed on agenda; and pass to second reading.
BACKGROUND
The collection of the Annual Stormwater Pollution Prevention Fee (Fee) began in 1995. The Fee supports the requirements of the 1972 Federal Clean Water Act and National Pollutant Discharge Elimination System Permit (NPDES Permit). Under the NPDES Permit and with the fees collected, state-mandated programs such as pollution education and prevention, cleaning of storm drain catch basins, street sweeping, inspections, and water quality monitoring are administered and funded.
Pursuant to Section 15.50.070 of the Santa Clarita Municipal Code, the City of Santa Clarita (City) shall annually hold a public hearing or meeting, where an oral and written presentation may be made in connection with the Fee. The City Clerk has published notice of such annual public hearing as provided by law for the City Council meeting of June 14, 2022.
In 2009, property owners approved the Fee through a special ballot election process conducted per the requirements of the California State Constitution and under Proposition 218 and Article XIIID. A total of 13,459 valid ballots were received. Of those ballots received, 10,294 (76 percent) voted "yes," and 3,165 (24 percent) voted "no." As a result, the City Council held a public hearing on October 27, 2009, and adopted Ordinance No. 09-14 (Ordinance), establishing the new methodology to be used to calculate the Fee. With the new rate methodology, the approved Fee reduced the annual stormwater cost for most residential property owners.
Pursuant to Section 3 of the Ordinance, the City Council shall annually determine the rates of the Fee subject to the maximum Fee authorized by the Ordinance. The City Council may determine to do any of the following: A) discontinue the Fee; B) reduce or maintain the actual Fee rate imposed below the maximum Fee rate authorized; or C) adjust the rate up to or below the maximum voter-authorized rate if it has been previously set below such rate. The City Council is not required to include an inflation increase annually, but may choose to accumulate the inflationary increase and enact the cumulative amount.
Staff recommends the Stormwater Fee for Fiscal Year (FY) 2022-23 be levied at $29.19 per Equivalent Residential Unit (ERU), which is equal to the maximum fee allowable under the guidelines of Proposition 218. The recommended levy represents an adjustment of $1.80 as compared to the levied fee of $27.39 in FY 2021-22. The fee is calculated by adding an amount equal to the Consumer Price Index (CPI) for All Urban Consumers for the Los Angeles, Long Beach, and Anaheim area for the preceding year ending December 2021 (6.60 percent).
As financial obligations associated with the NPDES Permit issued by Los Angeles Regional Water Quality Control Board (Regional Board) and State Water Resources Control Board continue to expand, the accumulation of an inflationary adjustment provides maximum flexibility for the City to meet its permit obligations. The NPDES Permit requires the City to implement multiple programs and activities designed to reduce or eliminate water pollution. Some of these programs include street sweeping, construction site inspections, industrial inspections, illicit discharge investigations, spill clean-up, storm drain maintenance, public information, land- development requirements, water testing, stormwater infiltration projects and City-wide administration.
The renewal of the NPDES Permit in 2021 required an evaluation of all available water quality monitoring data. As a result, modifications were made to the Enhanced Watershed Management Plan and the Coordinated Integrated Management Plan. These revised plans are currently under review by the Regional Board and are anticipated to be approved by the end of 2022. If the updated Enhanced Watershed Management Plan is approved, the City will be responsible for the development of projects and programs that would result in 215 acre-feet of stormwater infiltration, with a current capacity from existing projects of approximately 45 acre-feet. These projects will capture and infiltrate stormwater by way of large regional basins, underground infiltration facilities or distributed small green streets dedicated to sequestering pollutants, replenishing groundwater and preventing pollutants from reaching the Santa Clara River.
Currently, costs are estimated at $500,000 to $1 million per acre-foot of capacity for infiltration basins.
The Fee was originally developed to fund the implementation of NPDES Permit requirements in addition to the ongoing maintenance of stormwater infrastructure. However, the revenues are insufficient to cover the costs of additional requirements to construct capital projects. In order to meet these obligations, staff continues to seek additional funding through multiple grants. While Measure W is intended to provide capital funding, it is insufficient to fund all of the projects required by the NPDES Permit.
The FY 2022-23 Stormwater Pollution Prevention Fee Engineer’s Report and a preliminary list of the rates for all properties subject to the Fee is attached to this item with a draft ordinance determining the rate. If the ordinance is adopted, Willdan Financial Services is directed to prepare and file the final list of rates with the Los Angeles County Auditor Controller to be placed on the tax rolls and collected with regular City and County taxes.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no impact to the General Fund by this action.
ATTACHMENTS
Public Hearing Notice
Ordinance
FY 2022-23 Stormwater Engineer's Report (available in the City Clerk's Reading File) FY 2022-23 Stormwater Fee Tax Roll (available in the City Clerk's Reading File)