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HomeMy WebLinkAboutOrd 2005-3007 ORDINANCE NO. 3007 ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AN INCREASE OF THE SEWERAGE CAPACITY CHARGE AND THE MODIFICATION OF THE MASTER FEE SCHEDULE WHEREAS, in March of 1985, the Engineering Department prepared a study titled, "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 I of each year); and WHEREAS, on April 2, 1985, City Council by Ordinance No. 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 time, 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 Lorna Wastewater Treatment Plant for handling of the sewage; and WHEREAS, in anticipation of the significant costs of upgrading the Point Lorna 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 (EP A) 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 dete=ine the impact of upgrading the treatment plant; and WHEREAS, on October 9, 1990, City Council, by Resolution No. 15894, further increased the sewer participation fee to $2,220 to enable the City to meet its obligation to the Metro System for the upgrade of the treatment plant; and WHEREAS, on March 18,2003, City Council, by Ordinance No. 2900, further increased the sewer participation fee to $3,000 to enable the City to acquire additional capacity rights in the Metro System and cover the costs associated with the significant increment in Metro expenditures and improvements required to adequately service the City's growth; and Ordinance No. 3007 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 ofreserve 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 completed the Wastewater Master Plan Update 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. In the study, the consultant is advising the City to implement the "Buy-In" method, which is to adjust the sewerage capacity charge by dividing the total value of the regional wastewater system by the total wastewater flow. This increase will be needed to keep up with inflation while the consultant makes its final recommendation; and WHEREAS, utilizing the "Buy-In" method as the basis of the increase, the sewerage capacity charge will be increased from $3,000 per Equivalent Dwelling Unit to $3,478 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 ofChula 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 read 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 capacity charge. The base charge is hereby established as $3,478 per Equivalent Dwelling Unit of flow." SECTION II: California Environmental Quality Act (CEQA) Findings for Statutory Exemption. The City Council does hereby find 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. Therefore, the City finds that the adoption of this ordinance is statutorily exempt under the provisions of CEQA Guidelines Section l5060( c )(3). Ordinance No. 3007 Page 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, construction improvements to enhance capacity in the City's sewer system and to pay for the treatment of sewage; and The City Council finds 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)(I), the ninety-day approval period in which parties may protest beginning upon the effective date ofthis ordinance. Ordinance No. 3007 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 ~/ Sohaib AI-Agha City Engineer G--- ~ Ann Moore City Attorney Ordinance No. 3007 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista, California, this 17th day of May, 2005, by the following vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: -~~~~~ Susan Bigelow, MMC, City CI 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. 3007 had its first reading at a regular meeting held on the 10th day of May, 2005 and its second reading and adoption at a regular meeting of said City Council held on the 17th day of May, 2005. Executed this 17th day of May, 2005. ~~I~~ Susan Bigelow, MMC, City Cle