HomeMy WebLinkAboutOrd 2003-2900ORDINANCE NO. 2900
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN INCREASE OF TI-IE
SEWERAGE CAPACITY CHARGE AND THE
MODIFICATION OF THE MASTER FEE SCHEDULE
WHEREAS, in March of 1985, the Engineering Depathnent prepared a study rifled
"Sewerage Facility Participation Fee Study-Modified March 1985". The purpose of this study
was to investigate the feasibility of establishing a capacity fee that would be applicable to all new
sewer connections to the City's sewer collection system; and
WHEREAS, upon completion, this study recommended among other things, the
establishment of a Sewerage Capacity Charge that would be adjusted on an annual basis to
reflect changes in construction costs (suggested basis: Engineering News Record Construction
Index most applicable to July 1 of each year); and
WHEREAS, on April 2, 1985, City Council by Ordinance 2107, approved the
establishment of the Sewerage Facility Participation Fee, now referred to as the Sewerage
Capacity Charge, to enable the citizenry to be repaid for their initial investment and to facilitate
the development of Chula Vista. At that rime, the fee was set to be $300 per Equivalent
Dwelling Unit (EDU); and
WHEREAS, the City of Chula Vista along with fourteen other agencies that belong to the
Metro System sends its flow to the City of San Diego's Point Loma Wastewater Treatment Plant
for handling of the sewage; and
WHEREAS, in anticipation of the significant costs of upgrading the Point Loma
Wastewater Treatment Plant to a secondary treatment facility, for which the City of Chula Vista
as well as other participating agencies was liable, Council on May 5, 1987, approved Resolution
No. 13004 and Ordinance No. 2002 increasing the Sewerage Capacity Charge from $300 to
$600; and
WHEREAS, in 1989 following the adoption of the Clean Water Act, the Environmental
Protection Agency (EPA) directed the City of San Diego to upgrade the plant to a Secondary
Treatment facility. Since Federal funds were not anticipated to be available for the required
upgrades at that time and the cost of bringing the plant into compliance seemed to be far greater
than what was originally anticipated in 1987, Council on October 17, 1989 approved Resolution
Nos. 15352 and 15352A. These resolutions increased the Sewerage Capacity Charge to $2,000,
pending the completion of various studies being conducted at that time to determine the impact
of upgrading the treatment plant; and
WHEREAS, in October 9, 1990, Council by Resolution 15894 further increased the
Sewer Participation Fee to $2,220 to enable the City meet its obligation to the Metro System for
the upgrade of the treatment plant; and
WHEREAS, the City has not adjusted the Sewerage Capacity Charge since 1990, even
though Metro's costs for the provision of sewage capacity and treatment services have been
increasing annually for the past twelve years. In addition, no adjustments had been done to this
charge to keep up with inflation as originally intended at the inception of the fee; and
Ordinance 2900
Page 2
WHEREAS, Chula Vista currently has capacity rights in the Metro Sewer System to
cover growth for the next few years. This capacity was acquired with funds generated by the
Sewerage Capacity Charge that existing residents paid when they made their connection to the
City's sewer system. If reserved capacity in the Metro Sewer System had not been purchased,
new residents would either have not been permitted to build, or would have been required to pay
for the acquisition of additional treatment capacity. Instead, new residents are permitted to make
use of the reserved capacity held by the City; and
WHEREAS, the increase in the Sewerage Capacity Charge, applicable to all new sewer
connections, is proposed as a mean of recuperating the cost of reserve capacity and also maintain
a fund that will fund the acquisition of additional capacity and subsidize the cost of the necessary
sewer improvements that will benefit all City residents; and
WHEREAS, the City recently retained PBS&J to update the City's Wastewater Master
Plan with the primary goal of evaluating the adequacy of the existing wastewater collection
system to sustain the long-term growth of the City. The plan will also assist the City in:
budgeting for Capital Improvement Projects (CIP), allocating resources for the acquisition of
additional sewage capacity and determining the short and long-term sewer capacity needs of the
City. Since the Master Plan is scheduled to be completed by Fall 2003, the consultant is advising
the City to implement one of the recommendations made in the 1984, Sewerage Facility
Participation Fee Study, which is to adjust the Sewerage Capacity Charge to reflect the changes
in construction costs, based on the Engineering News Record Construction Cost Index (ENR
CCI). This increase will be needed to keep up with inflation while the consultant makes its final
recommendation; and
WHEREAS, the ENR CCI is a monthly composite figure of the cost of various
construction material and labor costs as measured by the Engineering News Record Magazine.
As such, the City's consultant and staff believe that it is a more accurate predictor of the effects
of inflation on a typical construction project than the Consumer Price Index (CPI) or other
measure of inflation. Utilizing the ENR CCI for July 1990 and for July 2002 as the basis of the
increase, the Sewerage Capacity Charge will be increased from $2,220 per Equivalent Dwelling
Unit to $3,000 per Equivalent Dwelling Unit; and
WHEREAS, the City Council has determined that the amount of the fee levied by this
ordinance does not exceed the estimated cost of providing the public facilities.
NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
SECTION I: That the Chapter XII Engineering - Sewer, Section 3(a) of part A of the Master
Fee Schedule be, and the same is hereby amended to mad as follows:
"3. Sewerage Capacity Charge
a. The owner or person making application for a permit to develop or modify
use of any residential, commercial, industrial or other property which is projected
by the City Engineer to increase the volume of flow in the City sewer system by
at least one-half of one Equivalent Dwelling Unit of flow shall pay a sewerage
facility participation fee Sewemgu Capacity Charge. The base charge is hereby
established as $3,000 per Equivalent Dwelling Unit of flow."
SECTION II: California Environmental Quality Act (CEQA) Findings for Statutory Exemption.
Ordinance 2900
Page 3
The City Council does hereby fred that the Sewerage Capacity Charge herein imposed is
for the purpose of obtaining funds for capital projects necessary to maintain service within
existing service areas. There£ore, the City £mds that the adoption of this ordinance is statutorily
exempt under the provisions of CEOA Guidelines Section 15060(c)(3).
SECTION III: Findings.
The City Council finds that the collection of the Sewerage Capacity Charge, established
by Ordinance No. 2107, at the time the building permit is issued is necessary. This will ensure
that funds will be available for the acquisition of capacity rights in the Metro System, construct
improvements to enhance capacity in the City's sewer system and to pay for the treatment of
sewage; and
The City Council f'mds that developers of land within the City should be required to
mitigate the burden created by development through the payment of a fee to finance a
development's appropriate portion of the total cost of the sewer improvements, sewage treatment
and capacity rights in the Metro System; and
The City Council finds that the legislative findings and determinations set forth in the
ordinance referred to in the above recitals continue to be true and correct; and
The City Council finds, after consideration of the evidence presented to it, that the
increase of the Sewerage Capacity Charge is necessary in order to assure adequate sewer service
to the City; and
The City Council finds, based on the evidence presented at the meeting and the
information received by the City Council in the ordinary course of its business, that the
imposition of the Sewerage Capacity Charge on all future developments in the City for which
building permits have not been issued is necessary in order to protect the public health, safety
and welfare; and
The City Council finds that the amount of the amended fee levied by this ordinance does
not exceed the estimated cost of providing the sewer service to the developments within the City;
and
The City Council finds that it is appropriate to approve an increase to the Sewerage
Capacity Charge to reflect: the acquisition of additional capacity rights; the annual increase in
the Metropolitan Sewerage System Costs; the increase in the need for improvements created by
the demand for more capacity in the sewer system; and
The City Council finds it is necessary to ensure sewer capacity in the Metro system
before the reserved capacity is exhausted and to ensure the timely payment to adequately fund
ongoing and future sewer improvements to enhance capacity in the City's sewer system triggered
by future development.
SECTION IV: Time Limit for Protest and Judicial Action.
Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance
shall be brought within the period as established by law.
In accordance with Government Code Section 66020(d)(1), the ninety-day approval
period in which parties may protest beginning upon the effective date of this ordinance.
Ordinance 2900
Page 4
SECTION V: Effective Date.
This ordinance shall become effective sixty (60) days after its second reading and
adoption.
Presented by
Approved as to form by
Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 25th day of March, 2003, by the following vote:
ATTEST:
Councilmembers:
Councilmembers:
Councilmembers:
Davis, Rindone, Salas, McCann, and Padilla
None
None
AYES:
NAYS:
ABSENT:
Susan Bigelow, City Cler'~k
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 2900 had its first reading at a regular meeting held on the 18th day of March,
2003 and its second reading and adoption at a regular meeting of said City Council held on the
25th day of March, 2003.
Executed this 25th day of March, 2003.
Susan Bigelow, City Cle~