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HomeMy WebLinkAboutOrd 1994-2596 ORDINANCE NO. 2596 AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS 13.14,100 AND 13.14.150 OF THE MUNICIPAL CODE RELATING TO SEWAGE PUMP STATION CHARGES AND ORDINANCE NO. 2461 AND REPEALING ORDINANCE NOS. 2181, 2286, AND 2477 TO DISSOLVE SPECIAL SEWER SERVICE RATE AREAS WHEREAS, the City of Chula Vista provides sewer service within the boundaries of the City; and, WHEREAS, pursuant to Health and Safety Code Section 5471, on December 16, 1986, the City Council adopted Ordinance 2181 for the Chula Vista Woods Subdivision; on October 11, 1988, the City Council adopted Ordinance 2286 for the Mission Verde Subdivision; on June 11,1991, the City Council adopted Ordinance 2461 for the EastLake Greens Subdivision and the Olympic Training Center and on September 17, 1991, the City Council adopted Ordinance 2477 for the Woodcrest Terra Nova Subdivision establishing special sewer service rate areas for said subdivisions with a monthly surcharge to be assessed for each unit or property; and, WHEREAS, on May 17, 1994, the City Council approved Resolution 17491, adopting Council Policy No. 570.03, the Sewage Pump Station Financing Policy; and, WHEREAS, Section C, part 3, of Council Policy No. 570.03 states that "all existing Special Sewer Service Rate Areas shall 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 with the City". NOW, THEREFORE, BE IT ORDAINED AS FOLLOWS: SECTION 1: Ordinances 2181, 2286, and 2477, which established Special Sewer Service Rate Areas for the financing of M/O costs of sewage pump stations, shall be rescinded with the adoption of this ordinance. The portion of M/O costs for City owned sewage pump stations previously paid through sewer service rate areas shall be paid from the general sewer budget. SECTION 2: 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, shall continue to be effective. SECTION 3: Amend Ordinance No. 2461 for the EastLake Greens Subdivision to relieve affected property owners and schools of the obligation to pay the Special Sewer Service Rate. The developers will continue to be obligated for their Ordinance No. 2596 Page 2 share of payments of the M/O costs associated with the pump stations. Sections VII, Vltl, IX, X, XI, XII of Ordinance No. 2461 shall be deleted. The following sections of Ordinance 2461 will be revised as follows: SECTION I. The City Council of the City of Chula Vista hereby designates 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 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 component zones are "A", "B" and "C". SECTION III. The domestic sewer service charge for each single-family dwelling unit within the EastLake Greens component zones shall be equal to the amount charged other similarly situated customers within the service area of the City. SECTION IV. 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 for its maintenance 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 to be paid by the City 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 by the City that would have been allocatable to the users. Ordinance No. 2596 Page 3 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 within that party's ownership by the total number of EDUs within each zone for which building permits have not been issued by July 1 of that year. EDUs 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 station at any time during the year. If, as a result of said review, the Director determines that there will be insufficient funds estimated in any component zone to provide for said maintenance and operation and that the 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 surcharge as described above, the "loan" by EastLake shall be considered "estimated cost" 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 when either 1 ) a sufficient number of units are connected so that the total of the number of units times the appropriate initial rates will be greater or equal to 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. First sentence only of Section V will be revised as follows: SECTION V. The "EDU factor" for all land uses within the component zones shall be as follows: Ordinance No. 2596 Page 4 SECTION VI. "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 rate" no longer apply. While initial rates are in effect, the pump station costs payable by the City will be determined by multiplying the applicable zone rate factor appropriate by the "EDU" factor listed in Section 5 above. 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. SECTION 4: That Section 13.14.100 of the Chula Vista Municipal Code is amended to read as follows: Sec 13.14.100 Sewage Pump Station C~arge - Sewage Pump Station FinanciI~. A. All the M/O costs for all City owned sewage pump stations wjthln Chula Vista, which costs are in excess of funds deposited by developers responsible for the construction of said pump stations, shall be paid from the general sewer budget. B. When a permanent sewage pump station is approved for construction and has been consn'ucred and accepted by the City, the developer shall deposit the M/O cost of the pump station for a period of 20 years based on an estimate by the City. 1. As an alternative to depositing the full 20 year M/O costs 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 shall be guaranteed with adequate security, one form of which may be a lien upon the property to be developed. The mount of said lien may be adjusted over time as propert~ is sold or as payments are made. No portion of the lien amount shall be teassigned to a buyer of a developed property. 2. In instances where the property to ultimately be sewed 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 shall 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 EDLFs connected to the pump station as determined by the Director. In instances where the developer has deposited the full estimated 20 year M/O costs, 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. 3. For temporary sewage pump stations, where the property to ultimately be Ordinance No. 2596 Page 5 served is not whofly within the ownership of the devdoper who builds the pump station, each subsequent developer connecting EDLFs to the station shall be responsible for the payment of a portion of the annual M/O cost which is proportional to the number of EDU's that devdoper has connected as compared to the total number of connected EDIYs. C. 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 shall be calculated by the City on a calendar year basis. That total, plus an estimated amount for inflation, ff any, less deposits or contributions estinaated to be on hand at the end of the fiscal year current at that time, shah be included as a system cost in the normal City-wide sewer budget and distributed among aH properties within the City connected to the Chula Vista sewer system during the fiscal year begi,ning on the immediately following July 1. D. 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. E. This section 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. F. All previous agreements and ordinances relating to spedal sewer service rate areas or zones are hereby amended to be in conformity with Council Policy No. 570.03. This section is enacted pursuant to an exercise by the City Council of its police powers as a Charter dty, and pursuant to Health and Safety Code Section 5471, Government Code Sections 54300 et seq., or any other applicable state law. SECTION 5: That Section 13.14.150 of the Chula Vista Municipal Code is amended to read as follows: 13.14.150 paymentofSewerServiceCJ~arges-p,.naltyfo~Delinqmmcy-Discontinuance of Service-Whea-Unlawful Connection-BackbHlin~ and Pimalty. A. Billing and Payment. All sewer service charges shall be billed upon a monthly or bi-monthly basis, or on the Tax Bill, as determined by the City Council, and shah be payable upon the billing of such charges to the owner or the occupant. B. 1. Director's Report. Annually, not later than August 10, the City Clerk shall set the Report of the Director of Public Works filed pursuant to Section 13.14.100 and/or 13.14.110 for public hearing before the City Council and duly cause Notice thereof and of the filing of said report to be published once at least ten days in advance thereof in a newspaper of general circulation published in the City of Chula Vista. 2. Notice to Property Owner. When the Director of Public Works requests Ordinance No. 2596 Page 6 that such charges be collected on the Tax Bill for the first time, the City Clerk shall, in addition to the notice required by subsection B.I., cause to be mailed to each person assessed for each property described in the report, at the address shown on the last available assessment roll, Notice of the filing of the report and of the date, time, and place of the public hearing thereon. If such charges are collected on the Tax Bill pursuant to such Notice, annually thereafler such notice need not be given but only the notice by publication required by subsection B. 1. C. Coundl Action. The City Council shah conduct a public hearing to consider the amount of such charges, and whether they shah be collected on the Tax Bill. The first year said charges are proposed to be placed on the Tax Bill, such action is subject to a majority protest. 1. If a majority of the owners of affected properties protest placement on the Tax Bill, the charges shall not be so collected, but shall be established by City Council Resolution and collected pursuant to subsection D hereof. 2. If there is no majority protest and the City Council determines to place the charges, or some of them, on the Tax Bill, for those to be collected on the Tax Bill the City Council shall by ordinance approve the report of the Director of Public Works, along with any corrections thereto and establish the amounts of such sewer service charges to be placed on the Tax Bill. The City Clerk shall endorse thereon that it is the report finally approved _ by the City Council, and forward the appropriate data forthwith to the County Auditor for enrollment on the Assessment Roll, and ultimate collection by the Tax Collector on the Tax Roll in accordance with Health and Safety Code Section 5473 et seq.. Pursuant to Health and Safety Code Section 5473.8, all laws applicable to the levy, collection and enforcement of real propen3r taxes including, but not limited to, delinquency, correction, cancellation, refund and redemption, are applicable to such charges. a. Pursuant to Health and Safety Code Sections 5471 and 5473.10, the City Council shall establish by ordinance the charges as those set forth in said report (along with any corrections) and hereby establishes the basic penalty for delinquency in the amount of 10% of the delinquent amount, plus one and one half (1-1/2) percent per month for nonpayment of the charge and basic penalty (designated for administrative convenience only in the Master Fee Schedule), which shall also be collected by the Tax Collector on behalf of City. b. The Director of Finance shall give Notice to the owner of any parcel when any such charges become delinquent for 60 days, and of any penalties and interest thereon as provided herein, and that they shall constitute a lien with the force, effect and priority of a judgment lien against the lot or parcel against which it was imposed, good for three years from recordation, if recorded. The Director of Finance shall record with the County Recorder, pursuant to Health and Safety Code Section 5473.11, a certificate specifying the amount of the unpaid charges and penalties and Ordinance No. 2596 Page 7 interest thereon, when any such charges become delinquent for 60 days. D. Non-Tax Bill. Alternatively, the charge and the billing therefor may be combined with other utility bills and separately designated, or otherwise billed and collected, as determined by the City Council. Said charge, together with penalties and interest, and reasonable attorneys' fees (hereafter collectively referred to as Charge), shah be a charge on the property served and shall be a continuing Hen upon the property served, the lien to become effective upon recordation of a Notice of Delinquent Sewer Service Charge. Each such Charge also shah be the personal obligation of the person who was the owner of such property served at the time when the Charge was levied. The personel obligation for Delinquent Sewer Service Charges shall not pass to an owne(s successors in title as their personal obligation unless express]y assumed by them. Any Charge imposed in accordance with this ordinance shall be a debt of the owner of property served from the time the Charge is levied. At any time after any charges have become delinquent, the City Engineer may file for record in the office of the San Diego County Recorder, a Notice of Delinquent Sewer Service Charge as to such property served, which notice shah 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 charges 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 u'ustee authorized by the City to enforce the lien, ff by nonjudidal foreclosure as provided 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 acc~-uing 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 charge and all other charges 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 Engineer shah record a further notice, similarly signed, stating the satisfaction and release of such lien. Each 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 fight to enforce the lien by sale is hereby conferred upon the City and its trustee designated in the Notice of Delinquent Charge, 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 charges, costs, late penalties and attorneys' fees shah be maintainable without foreclosing or waiving the lien securing the same. In any action by the City to collect delinquent charges, accompanying late charges or interest, the prevailing pan? shall be entitled to Ordinance No. 2596 Page 8 recovery of its costs and reasonable attorneys' fees. E. Penalty for Delinquency. If the sewer service charge is not paid before the dose of business or postmarked before midnight of the final date for payment as shown on the billing, a basic penalty of ten (10) percent of the charge(s) shall be added thereto, pins one and one half (1-1/2) percent per month for nonpayment of the charge and basic penalty (designated for administrative convenience only in the Master Fee Scheduie); provided, however, that when the final day for payment falls on Saturday, Sunday or a legal holiday, payment may be made without penalty on the next regular business day. F. Service Discontinuance. In the event the owner or occupant of any premises shall be delinquent in payment of the sewer service charge and such delinquency continues for a period of five days afte~ the final date for payment of such charge, the city shall have the right, forthwith and without notice, to discontinue sewer service to such delinquent owner or occupant, and sewer service shall not again be supplied to such person until all delinquent sewer service charges plus the penalties thereon as herein provided have been paid. The sewer service charges may be collected by suit in any court of competent jurisdiction or any other msnner. G. Unlawful Connection. In the event that any parcel or building is determined by the Director to have been nnlawfu]ly connected to the public wastewater system, the City shall have the fight to terminate sewer service to such parcel or building as _ provided in section 13.06.110. Sewer service shall not again be supplied to such parcel or bnilding until aH delinquent sewer service charges which have been accumulated during the current ownership of the parcel or building, plus a basic penalty of 10% of the delinquent sewer service charge plus one and one half (1- 1/2) percent per month for non-payment of the charge and the basic penalty (designated for admlni~trative convenience only in the Master Fee Schedule), has been paid. SECTION 6: 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 7: Effective Date. This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Ordinance No. 2596 Page 9 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 2nd day August, 1994, by the following vote: AYES: Councilmembers: Fox, Horton, Moore, Rindone NOES: Councilmembers: Nader ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None ATTEST: Beverly A/. Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Ordinance No. 2596 had its first reading on July 19, 1994, and its second reading and adoption at a regular meeting of said City Council on the 2nd day of August, 1994. Executed this 2nd day of August, 1994. Beverly A<. Authelet, City Clerk