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HomeMy WebLinkAbout1991/06/11 Item 6 ORDINANCE NO. 24'1 SECOND READING AND ADOPTION AN ORDINANCE OF THE CITY OF CHULA VISTA ESTABLISHING A SPECIAL SEWER SERVICE RATE AREA AND COMPONENT ZONES FOR EASTLAKE GREENS SUBDIVISION AND THE OLYMPIC TRAINING CENTER WHEREAS, the City of Chula Vista provides sewer service within the boundaries of the City, and WHEREAS, the EastLake Greens Subdivision requires the ongoing maintenance of three pump stations through formation of a special sewer service rate area with three component zones, and WHEREAS, EastLake Development Company, the owner of EastLake Greens subdivision and the Olympic Training Center Property, has entered into an agreement consenting to the imposition of a special fee to cover the costs of operating, maintaining and removing the temporary sewer pump stations serving the areas of Tentative Subdivision Map No. 88-3 and Parcel Map 16318 and certain other costs, and WHEREAS, the City of Chula vista has the authority to impose special rates and charges by ordinance pursuant to Health and Safety Code Section 5471. NOW, THEREFORE, BE IT ORDAINED AS FOLLOWS: Section 1. The City Council of the City of Chula Vista hereby establishes a special sewer service rate area with three component zones, within the boundaries of Tentative subdivision Map NO. 88-3 and Parcel Map 16318 of the City of Chula Vista, as shown on Exhibit 1 attached hereto, for the purpose of providing special sewer services to said area and zones through three temporary sewer pump stations, and to subsequently provide customary service through a gravity-flow system. Said sewer services shall be provided by the City of Chula vista in conformance with the contract between the City of Chula vista and EastLake Development Company, dated January 9, 1990, as amended by agreement dated June 4, 1991. The name of the proposed special area is "EastLake Greens Special Rate Area", with subareas or zones "A", "Bn and .C". Section 2. The Director of public Works (Director) is authorized following consultation with EastLake Development Company or its successors in interest to adjust the zone boundary 1 ines wi th in the Area shown on Exhibi t 1, as development occurs and connections to pump stations or gravity sewer lines occur. Not more than ten percent (lO%) of the total anticipated equi valent dwelling uni ts (EDU' s) in the Area may be so administratively adjusted without Council approval. The Director is hereby authorized to prepare and record substi tute Exhibit 1 maps hereto as such changes periodically occur. ,..I Section 3. The domestic sewer service charge for each single-family dwelling unit with the EastLake Greens Special Rate Area shall be equal to the amount charged other similarly situated customers within the service area of the City, except as hereinafter provided. Section 4. On or about July 1 of every year, commencing on the July 1 immediately following placement of each sewer pump station into service and acceptance by City of responsibility of its ma in tenance and operation, the Director shall determine the estimated costs for maintenance and operation of each pump station for the following fiscal year. The determination shall be made for each component zone. If said estimated maintenance and operation costs exceed estimated funds collected from users for any zone, and the Director has not made a determination for that zone that the "initial rates" no longer apply, the Director shall notify EastLake Development Company and/or its successors in interest of the amount of their portion of the surcharge, pursuant to the First Amendment to Agreement between City and EastLake dated June 4, 1991. The total amount of EastLake/successors surcharge to be paid shall be the difference between said total estimated maintenance and operation costs, and the amount estimated to be collected from users, as described in this section, and Sections 5 and 6. Following determination of the total amount of the above described surcharge each year, the Director shall determine how to apportion the total surcharge among EastLake and their successors in interest, based on the following formula: Each party (EastLake and successors) shall be responsible for the same percentage of the total surcharge as that determined by dividing the number of EDUs for which building permits have not been obtained by July 1 wi thin that party I s owner Ship by the total number of EDUs within each subarea for which building permits have not been issued by July 1 of that year. EDU I s shall be evaluated based on the "EDU factor" described below. The Director may, at his discretion, review the status of funds available for the purpose of operating and maintaining said pump sta tion at any time dur ing the year. If, as a resul t of said review, the Director determines that there will be insufficient funds available in any subarea pump station fund to provide for said maintenance and operation and that the fund balance is likely to be depleted within 30 days, the Director shall notify Eastlake in writing of such situation and require EastLake to provide sufficient funds to provide for said maintenance and operation to July 1 of that fiscal year pursuant to the agreement between the City and EastLake as amended, dated June 4, 1991. EastLake shall, within 30 days of receipt of said notification, deposit said required funds with the City treasurer. When the next annual determination is made of the ,...j,- surcharge as descr ibed above, the "loan" by EastLake shall be considered "estimated costs" and the value of the surcharge shall be determined after such credit. The Director shall determine for any zone that the "initial rates" no longer apply and that "permanent rates" apply when he or she determines either that 1) sufficient funds are being collected from users to provide for the annual maintenance and operation costs, or 2) within that zone, 75% of the total number of EDUS within the zone have been connected to the pump station. Section 5. The "EDU factor" for all land uses within the special sewer service rate area shall be as follows: Land Use category "EDU Factor" Single Family Detached Single Family Attached High School-2400 Students Elementary School-800 Students Golf Course Club House Grounds 1.0 0.75 171.42 (prorated) 42.86 (prorated) 8.93 For any land be determined based generated per day. uses not listed above, the EDU factor shall on 1.0 EDU per 280 gallons of sewage Section surcharge shall EastLake Special 6. A special operations and be assessed for each user serviced Rate Area. maintenance within the "Initial rates" shall be in effect for all three zones commencing from the date of enactment of this ordinance until such time as the Director makes a determination for that zone that "initial rates" no longer apply. Following such determination, the "permanent rates" shall be in effect for that zone. The monthly amount paid by each customer within any zone is determined by mUltiplying the applicable zone rate factor appropriate by the "EDU" factor listed in Section 5 above. For "initial rates", the zone rate factor for zones A and B is one dollar ($1.00) per month. The initial zone rate factor for zone "C" is two dollars ($2.00) per month. For "permanent rates": The zone rate factor for zones A and B is obtained by dividing the estimated annual maintenance and operation cost for the pump station serving that zone by the total number of EDUs, respectively, on line in that zone the June 30 preceding the fiscal year for which the rate is to be established. The zone rate factor for zone C is obtained by dividing the estimated annual maintenance and operation costs for the pump station serving zone C by the total number of ED Us on line in that zone 4,,,,3 on the June 30 preceding the fiscal year for which the rate is being established, and adding the value of the zone surcharge for zone B as calculated above. The monthly charge shall be calculated and collected administratively, unless it results in an increase. In that event, the proposed increase shall be reviewed by Council in advance at a noticed public hearing. Section 7. Said surcharge, together with interest, costs, la te charges and reasonable attorneys' fees, shall be a charge on the property served and shall be a continuing lien upon the property served against which each such surcharge is made, the lien to become effective upon recordation of a Notice of Delinquent Sewer Surcharge, as provided in Section 8 herein. Each such Sewer Surcharge, together with interest, costs, late charges and reasonable attorneys' fees, also shall be the personal obligation of the person who was the owner of such property served at the time when the Sewer Surcharge was levied. The personal obligation for delinquent Sewer Surcharge shall not pass to an owner's successors in title as their personal obligation unless expressly assumed by them. section 8. Any Sewer Surcharge made in accordance with this ordinance shall be a debt of the owner of property served from the time the Sewer Surcharge is levied. At any time after any Sewer Surcharges levied by the City affecting any property served have become delinquent, the City may file for record in the office of the San Diego County Recorder, a Notice of Delinquent Sewer Surcharge as to such property served, which notice shall state all amounts which have become delinquent with respect to such property served and the costs (including attorneys fees), late penalties and interest which have accrued thereon, and the amount of any Sewer Surcharges relating to such property served which is due and payable although not delinquent. The notice also shall contain a description of the property served with the name of the record or reputed record owner of such property, and the name and address of the trustee authorized by the City to enforce the lien, if by nonjudicial foreclosure as provided in Section 9 below. Immediately upon recording of any Notice of Delinquency pursuant to the foregoing provisions of this Section, the amounts delinquent, as set forth in such notice, together with the costs (including attorneys' fees), late penalties and interest accruing thereon, shall be and become a lien upon the property served described therein, which lien also shall secure all costs (including attorneys' fees), late penalties and interest accruing thereon. In the event the delinquent Sewer Surcharge and all other Sewer Surcharges which have become due and payable with respect to the same property, together with all costs (including attorneys' fees), late charges and interest which have accrued on such amounts, are paid fully or otherwise satisfied prior to the completion of any sale held to foreclose the lien provided for in this ordinance, the City , ...If shall record a further notice, similarly signed, stating the satisfaction and release of such lien. Section 9. Each Sewer Surcharge lien may be foreclosed as and in the same manner as the foreclosure of a mortgage upon real property under the laws of the state of California, or may be enforced by sale pursuant to Sections 2924, 2924(b), 2924(c) and 1367 of the California Civil Code, or any successor statute or law, and to that end, the right to enforce the lien by sale is hereby conferred upon the City and its trustee designated in the Notice of Delinquent Sewer Surcharge, or a trustee substituted pursuant to California civil Code Section 2934a. The City shall have the power to bid for the property served at a foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Suit to recover a money judgment for unpaid Sewer Surcharge, costs, late penalties and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same. In any action by the City to collect delinquent Sewer Surcharges, accompanying late charges or interest, the prevailing party shall be entitled to recovery of its costs and reasonable attorneys' fees. Section 10. When a Notice of Delinquent Sewer Surcharge has been recorded, it shall constitute a lien on that respective property by parcel and shall be prior and superior to all other liens except all taxes, bonds, assessments and other levies which, by law, would be super ior thereto. Sale or transfer of any property served shall not affect the assessment lien. section 11. In the event such temporary sewer pump station is taken out of service as a result of the development of gravity-flow sewer lines external to and adjacent to the Area, or any zone thereof, the operations and maintenance charge shall be discon tinued; provided, however, that (a) such surcharge may be continued after a pump station is taken out of service for the purpose of providing for the cost of removal of the pump station and connection to a gravity sewer system; (b) the surcharge shall not exceed the average such assessment in prior years, and {cl such surcharges shall be used solely for the actual connection of the EastLake Greens collection system to the new trunk line or force main which rendered the temporary sewer pump station necessary. Section 12. All surcharge collections shall be placed in a separate fund established for the purpose of administering this ordinance. All interest accruing in such account shall remain therein. Section 13. This ordinance shall continue in full force and effect until repealed. It is the intent of the City to repeal this ordinance upon termination of the January 9, 1991 "Agreement to Provide for Sewer Pump Station Maintenance and Operation to the EastLake Greens Tentative Map 88-3 of the City of Chula Vista", in accordance with its terms. '~5 Section 14. The City Clerk of the City of Chula vista is hereby directed to publish this ordinance within fifteen (15) days after its passage in the Chula Vista Star News, a newspaper of general circulation published in the city of Chula Vista. Section 15. This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by bvC~ J ~~ John P. Lippitt, Director of Public works Bruce M. Boogaa 8455a ,,~