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HomeMy WebLinkAboutReso 1994-17491RESOLUTION NO. 17491 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING COUNCIL POLICY ON SEWAGE PUMP STATION INSTALLATION AND FINANCING OF MAINTENANCE AND OPERATION COSTS WHEREAS, there presently is no set City policy on the construction of sewage pump stations and revision of sewage pump station fees; and, WHEREAS, on September 17, 1991, City Council requested that staff create a policy for future decisions regarding sewage pump stations; and, WHEREAS, Council's concern was that homeowners are being required to pay pump station fees while no mechanism is in place to assure that developers install such stations only in situations where they are justified from an overall economic viewpoint; and, WHEREAS, staff has now established a policy for future decisions regarding the construction of sewage pump stations and the manner of financing the maintenance and operation costs associated with sewage pump stations. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby adopt the Council Policy on Sewage Pump Station Financing set forth in Exhibit "A", attached hereto and incorporated herein by reference as if set forth in full. Presented by ~rof Public Works ohn P. Lippi~ ~F~~s t~oL~_,~ / Resolution No. 17491 Page 2 ATFA(}IMENT A EXlSrlNG SEWAGE PUMP STATIONS 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 1S. 16. 17. 18. 19. 20. Location C. V. Woods Subdivision Candelwood Subdivision Mission Verde Subdivision Terra Nova Subdivision Rancho Robinhood II Rancho Robinhood III EastLake Parkway (A) Otay Lakes Road (B) East Orange Avenue (C) Olympic Training Center (OTC) Boat House Marina Parkway "Y Street Sandpiper Way "G" Street Hilltop Drive Hilltop Park Max Field Police Department Auto Park M/O Costs Residents Residents Residents Residents Residents Developer** Both* Both* Both* OTC Temporaw/Pennanent Temporary Temporary Temporary Temporary Per agreement, the developer and residents are both paying for the sewage pump station M/O costs. When either the conslruction of a subarea is 75% complete or enough funds are collected from the residents at the initial rate to pay for the annual M/O costs, EastLake and the builders will discontinue paying for these costs, Developer paid a fiat deposit to City. we project that the principal and interest on this deposit will run out in the year 2000. After that time, M/O costs will be paid by the City. Resolution No. 17491 Page 3 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: SEWAGE PUMP STATION FINANCING POLICY ADOFrED BY: Resolution No. 17491 POLICY EFFECTIVE NUMBER DATE PAGE 570-03 05-17-94 1 OF 4 DATED: 05-17-94 BA(~(GROUND The City presently has no set procedure for approving the construction of sewage pump stations or for the establishment and revision of sewage pump station fees for the recovery of Maintenance and Operation costs for such pump stations. On September 17, 1991 the City Council directed staff to prepare a policy statement for guidance in providing legal and efficient service to the public and developers. PURPOSE To establish a policy for future decisions minimizing the use of sewage pump stations and providing for the financing of the maintenance and operation costs associated with sewage pump stations when used. POLIGY The City Council hereby establishes the following policy and procedures relative to the construction of sewage pump stations and to the financing of their associated costs for maintenance, operation, repair, replacement, retrofit and rehabilitation (all of which are referred to herein as M/O costs): The construction of sewage pump stations is to be discouraged and shah be approved oniy in accordance with the provisions of this policy. The following actions shah be taken before (1) approving a Tentative Subdivision Map or a Preliminary Parcel Map for a project dependent upon the construction of a sewage pump station for the provision of sewer service or (2) first approval (Design Review or similar action) for a project not requiring approval of a Tentative Map or Preliminary Parcel Map: The developer shah prepare and provide the City with a study analyzing the feasibility of constructing a gravity sewer line versus installing a sewage pump station. The study shah include a comparison of the cost of constructing a gravity sewer line to that of installing, maintaining and operating the pump station. The most cost effective and technically feasible alternative, as determined by the Director of Public Works (Director), will be included as part of the required subdivision or project improvements. In the event that the construction of a gravity sewer is not possible because of topographic or jurisdictional constraints the above study may be limited to the provision of sufficient Resolution No. 17491 Page 4 SUBJECT: COUNCIL POLICY CITY OF CHULA VISTA SEWAGE PUMP STATION FINANCING POLICY ADOPTED BY: Resolution No. 17491 POLICY EFFECTIVE NUMBER DATE PAGE 570-03 05-17-94 2 OF 4 IDATED: 05-17-94 evidence to demonstrate the existence of the constraint and an estimate of the cost of maintaining and operating the proposed pump station. If the decision to build a pump station is predicated upon an economic consideration, then the full study as oudined above will be required. The Director of Public Works shah review the above study and if the need for a sewage pump station is not indicated by the results of the above study, said sewage pump station and the Tentative Map, Preliminary Map or other such dependent project shah not be approved, subject to applicant appeal to the City Council. Where the review by the Director indicates that connection to a gravity sewer is cost effective and feasible a pump station dependent development or project shah be processed only with advance approval of the City Council of the use of a sewage pump station. In the event that the need for a sewage pump station is discovered after approval of a Tentative Subdivision Map or a Preliminary Parcel Map or after an initial City approval (such as Design Review) of a project not requiring such a map said study shah be performed prior to any fttrther review of applications for approval. Where a Tentative or Preliminary Map is required, such a discovery shah be considered to constitute a significant change in the project and require consideration of a Revised Tentative or Preliminary Map. In the instance of a project not requiting a Final Map or a Parcel Map said study shah be required prior to the issuance of any building permit. No new Special Sewer Service Rate Areas providing for the financing of M/O costs of sewage pump stations shah be established within Chula Vista subsequent to the adoption of this policy by the City Council. All the M/O costs for all City owned sewage pump stations within Chula Vista, which costs are in excess of funds deposited by developers responsible for the construction of said pump stations, shah be paid from the general sewer budget. When a permanent sewage pump station is approved for construction and has been constructed and accepted by the City, the developer shah deposit the M/O cost of the pump station for a period of 20 years based on an estimate by the City. Resolution No. 17491 Page 5 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: SEWAGE PUMP STATION FINANCING POLICY ADOFrED BY: Resolution No. 17491 POLICY EFFECTIVE NUMBER DATE PAGE 570-03 05-1%94 3 OF 4 DATED: 05-17-94 As an alternative to depositing the full 20 year M/O cost with the City immediately upon completion of the sewage pump station, the developer and the City may enter into an agreement providing for the M/O costs to be paid by the developer over a period of time. In this instance, the commitment to pay shah be guaranteed with adequate security, one form of which may be a lien upon the property to be developed. The amount of said lien may be adjusted over time as property is sold or as payments are made. No portion of the lien amount shah be reassigned to a buyer of a developed property. In instances where the property to ultimately be served by a permanent pump station is not fully contained within the ownership of the developer who builds the pump station and an agreement with the City has been entered into as provided above, during a given year that developer shah be responsible for the portion of the M/O cost which is proportional to the number of EDU's he has connected to the pump station as compared to the full number of EDU's connected to the pump station as determined by the Director. In instances where the developer has deposited the full estimated 20 year M/O cost, a subsequent developer using the pump station shall be required to reimburse the original developer for previously deposited M/O costs (plus interest) for EDU's to be connected by that subsequent developer. For temporary sewage pump stations, where the property to ultimately be served is not wholly within the ownership of the developer who builds the pump station, each subsequent developer connecting EDU's to the station shah be responsible for the payment of a portion of the annual M/O cost which is proportional to the number of EDU's that developer has connected as compared to the total number of connected EDU's. All existing Special Sewer Service Rate Areas within the City shah be modified as of July 1, 1994 to relieve affected homeowners or businesses of the obligation to pay the Special Sewer Service Rate applicable to the pump station. Where existing agreements or ordinances provide for developer contributions toward the payment of M/O costs, those portions of the agreements or ordinances which apply to developer contributions, including expiration dates if any, shah continue to be effective. For all active sewage pump stations, the total of M/O costs, including costs of replacements, utilities, personnel, equipment, supplies and overheads of all City sewage pump stations shah be calculated by the City on a calendar year basis. Resolution No. 17491 Page 6 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: SEWAGE PUMP STATION FINANCING POLICY ADOPTED BY: Resolution No. 17491 POLICY EFFECTIVE NUMBER DATE PAGE 570-03 05-17-94 4 OF 4 IDATED: 05-17-94 That total, plus an estimated amount for inflation, if any, less deposits or contributions estimated to be on hand at the end of the fiscal year current at that time, shall be included as a system cost in the normal City-wide sewer budget and distributed among all properties within the City connected to the Chula Vista sewer system during the fiscal year beginning on the immediately following July 1. The actual cost of bypassing or removing a temporary sewage pump station from service and connecting the collection system to an adjacent permanent gravity system shall be paid from the regular sewer budget, and that cost (less any remaining deposits collected for that purpose) shall be distributed among all properties connected to the Chula Vista sewer system as in C4 above. Portions of this policy concenaing the payment of M/O costs shah not be applicable to any sewage pump station not owned by the City or to any agreement with a public agency or private entity concerning such a pump station. However, minor privately owned sewage pump stations or lift stations for individual buildings shall not be considered for maintenance and operation by City forces. Those portions of the policy which pertain to the justification for pump station installation within the City shall apply to all sewage pump stations, whether proposed for City ownership or not. 7 Resolution No. 17491 Page 7 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 17th day of May, 1994, by the following vote: YES: Councilmembers: Fox, Horton, Moore, Nader NOES: Councilmembers: None ABSENT: Councilmembers: Rindone ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Vicki C. Soderquist, E~p,uty City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO CITY OF CHULA VISTA ) ) SS. I, Vicki C. Soderquist, Deputy City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17491 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 17th day of May, 1994. Executed this 17th day of May, 1994. Vicki C. Soderquist, Deputy-q,ty Clerk