HomeMy WebLinkAbout2013/07/09 Item 08CITY COUNCIL
AGENDA STATEMENT
~~~/j CITY OF
'"~`"' CHULAVISTA
7/9/13, Item
ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA
AMENDING MUNICIPAL CODE SECTIONS 8.25.020 AND
8.25.095 CONSTRUCTION AND DEMOLITION DEBRIS
RECYCLING
SUBMITTED BY: FINANCE DIRECTOR
DIRECTOR OF PUBLIC WORKS ,A, __ //
ADMINISTRATIVE SERVICES MANAGER ``~'d-
REVIEWED BY: CITY MANAGER~,~r JS
ASSISTANT CITY MANAGER
4/STHS VOTE: YES ~ NO ^X
SUMMARY
In 2008, the City Council adopted the Construction and Demolition Debris Recycling
Program. This program is just one of several landfill diversion programs necessary to
achieve the State mandated 50% landfill diversion requirement. Since that time
modifications have been made to the program with stakeholder input and the
implementation of the California Green Building Code.
The actions presented for Council approval will remove the interest payment requirement
and the corresponding tax liability for developers/applicants for performance deposits in the
construction and demolition debris recycling program (CVMC 8.25.095.B.3); increase the
time frame to refund performance deposits from 30 days to 60 days (CVMC
8.25.095.B.6.a).; and clarify the definition of "inert waste" (CMVC 8.25.020.EE).
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance
with the California Environmental Quality Act (CEQA) and has determined that
the activity is not a "Project" as defined under Section 15378 of the State CEQA
Guidelines because the activity consists of administrative/fiscal actions that will not
result in direct or indirect physical changes to the environment. Therefore, pursuant to
Section 15060(c) (3) of the State CEQA Guidelines the activity is not subject to CEQA.
Thus, no environmental review is required.
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RECOMMENDATION
That Council adopts the-ordinance.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
In 2008, the City Council adopted the Construction and Demolition Debris Recycling
Program. This program is just one of several landfill diversion programs necessary to
achieve the State mandated 50% landfill diversion requirement. Since that time
modifications have been made to the program with stakeholder input and the
implementation of the California Green Building Code.
A performance deposit is required for any covered project as defined in the Chula Vista
Municipal Code Section 8.25.095. The performance deposit works to ensure that the
debris generated during construction and/or -demolition activities is in fact recycled per
Chula Vista Municipal Code and the California Green Building Standards. For
construction projects, the deposit amount is .75% or'/a of a percent of the value of the
project. For demolition projects, the deposit amount is 1.5% or one and one-half percent
of the value of the project. A developer/applicant demonstrates their level of compliance
with the recycling goals as documented by their Waste Management Report and recycling
facility receipts.
Interest Requirement
Currently,, the Chula, Vista Municipal. Code Section 8.25.095 B.3 -Amount of
Performance Deposit states:...Performance deposit funds in the form of cash, money
order, or check will be placed in a secured account subject to interest. The performance
depositand accrued interest shall be returned to the applicant upon acceptance of proof
of compliance in full. If partial compliance, the performance deposit and associated
interest will be refunded on a prorated basis dependent on the degree of compliance...
On the surface this .seems like a fair and equitable .practice. However, the practical
application of this municipal code section creates an onerous administrative process for
the City and a confusing tax implication for the developers/applicants.
The Finance Department charges a 1% security deposit bookkeeping fee to cover the
expense of managing and tracking the interest on each performance deposit and the
subsequent administrative costs for issuing a refund check, as authorized by the City's
Master Fee Schedule. In some instances the interest earned on the account is not
sufficient to cover the bookkeeping fee. It is an unintended consequence of the process
that the developer/applicant could receive less than the full refund of their deposit even
though they are compliant with the recycling ordinance.
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~Additioirally, the Finance Department must request a W9 form from the applicant and
then issue a 1099 Misc. Income Statement for the company to recognize the revenue
(interest) paid to them by the city, thus creating a tax liability for the company. This
process is confusing and frustrating for the developer/applicant who just wants the
performance deposit returned. These consequences can be eliminated by removing the
interest requirement on the performance deposit, thus streamlining the process for the'
developer/applicant, removing the tax liability and ensuring a full refimd of the amount
due.
The proposed modification to the ordinance would read:
Performance deposit funds in the form of cash, money order, or check will be placed in a
secured account--su~ect te-interest. The performance deposit andaec~ued-interest
shall be returned to the applicant upon acceptance of proof of compliance in full. If
partial compliance, the performance deposit and-assesiated interest-will be refunded on
a prorated basis dependent on the degree of compliance. T„n°-'~=ilFretain-tJ~e i+#e+est
on-arry~epasit-fends-neNefunded ~ ,
Review and Release of Performance Deposit
Per City Ordinance (CVMC 8.25.095.B.6.a) staff is required to review the final Waste
Management Report and receipts to confirm compliance with the recycling goals and
then forward a request to the Finance Department to release the deposit within a 30 day
timeframe. Since the Construction and Demolition Debris Recycling Ordinance was
adopted, the Finance Department has modified the check writing process, only issuing
checks every other week. Staff is recommending that the refund timeframe be increased
to 60 days to ensure thorough review of the Waste Management Report and adequate
time to calculate, process, and' issue the refund check.
The proposed modification to the ordinance would read:
a. Compliance. If the WMR Compliance Official determines that the applicant has
fully complied with the diversion requirement applicable to the project, he or she
shall cause the release of the performance deposit to the applicant within X860
days of the applicant's submission of the documentation required under this
section. If the applicant has complied in part, a portion of the performance deposit
will be withheld. The amount withheld will be proportional to the percentage of
materials that are not recycled/diverted.
Modification to the definition of "Inert Waste"
The proposed changes to the definition of "Inert Waste" coincide with the California
Green Building Standards Code and help to clarify the description.
CVMC 8.25.020.EE defines "Inert waste" means materials such as concrete, soil, idl
cured asphalt, bricks rocky slab, ceramics, earthen cooking ware, clay and clay
products ~~~t~~crushedglass,-n„~~_~fibert>lass non-n~oociroof
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shingler and X~laster Inert waste does not contain putYescible tivaste or compostable
waste. "
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is
not site specific and consequeritly, the 500-foot rule found in California Code of
Regulations section 18704.2(x)(1) is not applicable to this decision. Staff is not
independently aware, nor has staff been informed by any City Councilmember, of any
other fact that may constitute a basis for a decision maker conflict of interest in this
matter.
CURRENT YEAR FISCAL IMPACT
Approval of this item will result in a reduction in staff time through process improvement
of the Construction and Demolition Performance Deposit procedures. All Construction
and Demolition Debris Recycling Program costs are covered in, the Environmental
Services Fund and will not impact the General Fund.
ONGOING FISCAL IMPACT
Al1.Construction and Demolition Debris Recycling Program costs are covered in the
Environmental Services fund and will not impact the General Fund.
Prepared by: Lynn France, Environmental Services Program Manager, Public Works Department
H:IPUBLIC WORKS- ENGUGENDAICAS20l3i07-09-131REPORT-PW-C&D ordinance modifications 6-10-13.doc
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ORDINANCE NO.
ORDINANCE OF THE CITY QF.CHULA VISTA AMENDING
MUNICIPAL CODE SECTIONS 8.25.020 AND 8.25.095
CONSTRUCTION AND DEMOLITION DEBRIS RECYCLING
WHEREAS, in 2008 the Chula Vista City Council adopted the Construction and
• Demolition. Debris Recycling Ordinance Chula Vista Municipal Code ("CVMC") section
8.25.095 ("C & D Ordinance") as a necessary program to meet the State mandated 50% landfill
diversion requirement (AB 939- The Solid Waste Management Act); and
WHEREAS, the C & D Ordinance was modified in 2008 and 2009 as the result of active
stakeholder input; and
WHEREAS, in 2010 the City Council adopted the California Green Building Standards
Code to ensure that California buildings were built to improve public health, safety and general
welfare by enhancing the design and construction of buildings through the use of building
concepts having a reduced negative impact or positive environmental impact and encouraging
sustainable construction practices; and
WHEREAS the C &' D Ordinance was modified to conform to the California Green
Building Standards Code in 2012; and
WHEREAS, City staff recommends that the C & D Ordinance and CVMC section
8.25.020 be' amended to clarify the definition of inert waste, remove the interest payment
requirement and corresponding tax liability for developers/applicants, and;adjustthe time frame
-~ for deposit refunds; and
WHEREAS, the proposed changes to the CVMC are the result of •active, continuous
improvements Yo the program processes and clarification of the definitions as motivated by
stakeholder input, California Green Building Standards Code. changes and staff review.
NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows:
Section I. Ordinance Modifications
The below referenced sections of Chula Vista Municipal Code Chapter 8.25 are amended
as follows:
' A. Section 8.25.020 Definitions: Subsection EE is amehded to read: "
"EE. "Inert waste'' means materials such as concrete, soil, fully cured asphalt, bricks,
rocks, slag, ceramics, eartheh cooking ware, clay and clay products, crushed glass,
fiberglass, roof shingles, and plaster. Inert waste does not contain putrescible waste. or
compostable waste."
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Ordinance
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B. Section 8.25.095.B Submission of Waste Management Report:
1. Subsection 3 is amended to read:
" 3. Amount of Performance Deposit. The applicant for any covered project shall submit
to the City a performance deposit, with the exception of City-sponsored projects, tenant
improvements greater than 1,000 square feet but less than 10,000 square feet, and
individual single-family home construction, remodel, addition or renovation projects. The
amount of the performance deposit shall be calculated as the lesser of three-quarters of
one'percent of the total project cost for new construction and one and one-half percent of
the total project costs for demolition projects or $30,000 maximum. Acceptable forms of
payment iriclude cash, money order, check, or surety bond. All bonds shall be in the form
prescribed by the City and by such- sureties which are admitted insurers in the state of
California, are subject to regulation by the Department of Insurance, and which satisfy all
state requirements. The City shall not accept a surety bond-for any project with a
performance deposit calculated at $10,000 or less.
Performance deposit funds in the,form of cash,.money order, or check will be placed in a
secured account. The. performance deposit shall be returned to the applicant upon
acceptance of proof of compliance in full. If partial compliance, the performance deposit
will be refunded on a prorated basis dependent on the degree of compliance. "
2. Subsection 6.a is amended to read:
"a. Compliance. If the WMR Compliance Official determines that the applicant has fully
complied with the diversion requirement applicable to the project, he or she. shall. cause
the release of the performance deposit to the. applicant within 60 days~of the applicant's
submission of the documentation required under this section. If .the applicant has
complied in part, a portion of the performance deposit will be withheld. The amount
withheld will. be proportional to the percentage of materials that are not
recycled/diverted." . ~ .
Section II. Severability
If any portion of this Ordinance, or its application to any person or circumstance, is for
any reason held to be invalid, unenforceable or unconstitutional, by a .court of competent
jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or
unconstitutionality shall not affect the validity or enforceability of the remaining portions of the
Ordinance, or its application to any other person or circumstance. The City Council of the City of
Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase
of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses
or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional.
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Section III. Construction
The City Council of the City of Chula Vista intends this Ordinance to supplement, not to
duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in
light of~that intent.
Section IV. Effective Date
This Ordinance shall take effect and be in force on the thirtieth day after its final passage.
Section V. Publication
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause
the same to be published or posted according to law..
Presented By: Approved as to~f~km by:
Maria Kachadoorian, Finance Director ~~,~`Gle ~. G o s, City
Richard bIopkins, Public Works Director
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