HomeMy WebLinkAboutOrdinance #3504 ORDINANCE NO. 3504
AN ORDINANCE OF THE CITY OF
HUNTINGTON BEACH ADOPTING CHAPTER 14.54
OF THE HUNTINGTON BEACH MUNICIPAL CODE
REGARDING IMPLEMENTATION OF A -
SEWER SERVICE USER CHARGE
PURSUANT TO CALIFORNIA HEALTH& SAFETY CODE
SECTION 5470,ET SEQ.
AND MAKING FINDINGS IN SUPPORT THEREOF
The City Council of the City of Huntington Beach does ordain as follows:
SECTION 1: Findings and Intent. The City Council finds as follows:
A. Portions of the City's existing sewer system are over 80 years old; repairs and
maintenance have not kept pace with the rate of deterioration and required repair,
rehabilitation and replacement needs.
B. The City Council, upon advisement from the City of Huntington Beach Finance
Board in 1995 that the City's infrastructure needs were significantly under-funded,
did direct the Public Works Department staff to initiate a detailed study of
infrastructure needs and make recommendations for the funding of such needs.
C. The City's Public Works Department, in coordination with the City's Public Works
Commission, did commence a major investigation of infrastructure needs, resulting in
its comprehensive report entitled "Integrated Infrastructure Management Program
("IIMP") Report to the City Council. The IIMP Report, presented to the City Council
in April 1997, showed a significant funding shortfall.
D. A Citizens' Infrastructure Advisory Committee ("IAC") was appointed by the City
Council in 1998 to review the IEWP and its forecast shortfall of public funding
resources and make recommendations to the City Council regarding the optimum
approach for financing/funding the most critical and long-term infrastructure needs of
the community. The IAC was composed of representatives from a broad cross-
section of leaders from community organizations including business, school districts,
environmental groups, civic, neighborhood associations, as well as City commissions
and boards.
E. The City Council received a comprehensive study from the Citizens' Infrastructure
Advisory Committee entitled "The City of Huntington Beach's Infrastructure Needs
-Final Report - July 2000" ("IAC Report"). The IAC Report identifies sewer system
repairs and maintenance as the most critical unfunded infrastructure need. The IAC
Report further recommends that the City Council enact a monthly sewer user charge
as soon as possible to raise the funds needed for such repairs and maintenance.
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F. In August 2000, the City Council appointed the Infrastructure Planning Committee
("IPC"), composed of 3 City Council members, 6 IAC members, the chairperson of
the Public Works Commission and the vice-chairperson of the Finance Board, to
make recommendations to the City Council regarding methods of funding and
financing for infrastructure needs.
G. In March 2001, the IPC presented its funding recommendations to the City Council
and reaffirmed that the enactment of a sewer service user charge as soon as
practicable was a key recommendation for funding sewer system repairs and
maintenance. In response to the IPC recommendation, the City Council authorized a
study by Darrel Cohoon &Associates ("DCA") to determine an appropriate sewer
service user charge calculation methodology.
H. The IPC further recommended that the proposed sewer service fund be subject to an
annual review and performance audit, that the interest earned on the fund shall accrue
to that account only, and that the funds shall not be transferred, loaned or otherwise
encumbered for any program except direct costs relating to sewer infrastructure
improvements or maintenance (including construction, design, engineering, project
management, inspection, and contract administration).
I. Additionally, the City is further required to fully comply with the terms and
conditions of"California Regional Water Quality Control Board Santa Ana Region
Cleanup and Abatement Order#00-86"under the probation terms of the March 28,
2001 court order in the Superior Court matter of People v. City of Huntington Beach.
J. The City of Huntington Beach is faced with increasing costs for the operation,
maintenance, and improvement of its sewer service system.
K. Existing City funds and funding sources are insufficient to fund the identified needs
for sewer service improvements, operation and maintenance of the sewer system.
L. Municipalities are authorized under California Health and Safety Code Section 5470,
et. seq. to establish fees and charges for funding sewer services improvements and the
operation and maintenance thereof
M. The City Council finds that a need exists for additional funding for sewer services and
that the establishment of a sewer service user charge is the most equitable method of
providing this funding.
N. In July 2001, DCA submitted its "Sewer Service Charge Approach"which outlines
the sewer charge customer categories, charge types and amounts to be used in
implementing the Sewer Service User Charge.
O. The amount of the proposed sewer service user fees and charges shall not exceed the
reasonable cost of providing the improvements, services, facilities or regulatory
activity for which the fees or charges are charged.
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SFCTYON 2: The City of Huntington Beach Municipal Code("Municipal Code") is hereby
amended by adding new Chapter 14.54 entitled "Sewer Service User Charge"to read as follows:
14.54.010 Short Title
This Chapter of the Municipal Code may be cited as the "Sewer Service User Charge"
Ordinance.
1.4.54.020 Intent and Purposes
Pursuant to California Health dr Safety Code Section 5470 et. seq., the City is authorized
to adopt fees and charges for the acquisition, construction, reconstruction, maintenance,
and operation of sewerage facilities. This Chapter is intended to ensure that sufficient
revenues are collected to adequately acquire, construct, reconstruct, maintain, and operate
the City's needed sewerage facilities. By imposing a charge that is reasonably related to
the burdens imposed upon the sewerage facilities by sewer service customers, the City
will be able to acquire and/or construct the required capital improvements to the
sewerage facilities, undertake the needed reconstruction and maintenance of existing
sewerage facilities, and operate the sewerage facilities in accordance with the goals,
objectives and policies of the City's Integrated Infrastructure Management Program.
14.54.030 Definitions
For the purpose of this Chapter, the following terms shall be defined as follows:
(a) "City" shall mean the City of Huntington Beach.
(b) "Public Works Director" shall mean the Public Works Director or the
Director's designee.
(c) "Sewer Charge Customer Category" shall mean any of the specific use categories
that have been listed in the Ordinance establishing sewer service user rates and
charges pursuant to Section 14.54.040.
(d) "Sewer Service Customer" shall mean the person obligated to pay the Sewer
Service User Charge or other fee(s) established pursuant to this Chapter.
(e) "Sewer Service Fund" shall mean the special fund established pursuant to this
Chapter into which all revenues from sewer service user charges will be
deposited.
(f) "Sewer Service User Charge" or"Charge" shall mean the charge imposed on
sewer service customers pursuant to this Chapter.
(g) "Sewer System" shall mean all sanitary sewer facilities owned and maintained by
the City of Huntington Beach and used for the purpose of collecting and
conveying sewage to the Orange County Sanitation District's treatment and
conveyance facilities.
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(h) "Water Customer" shall mean any person with a City water utility account.
14.54.040 Establishment of a Sewer Service User Charge
A Sewer Service User Charge is hereby established. After the effective date of this
Chapter, any water customer of the City of Huntington Beach is hereby required, unless
exempted pursuant to the provisions of Section 14.54.100, to pay a Sewer Service User
Charge in the manner and amount specified herein.
The City Council shall, by Ordinance, set the specific amount of the rates and charges for
sewer service customers and the rates and formulas for modifying the charges to account
for annual adjustments in the Consumer Price Index for All Urban Consumers ("Mu")
in Los Angeles, Orange and Riverside Counties established by the U.S. Bureau of Labor
Statistics. The specific amount of the charge shall be based upon the sewer service
customer category with allowance for adjustments and exemptions as set forth in this
Chapter.
14.54.050 Sewer Service Fund Created
(a) The City hereby establishes a special fund within the City's fiscal system to be
known as the "Sewer Service Fund."
(b) All revenues from sewer service user charges and any related fees and charges
shall be deposited to the Sewer Service Fund.
(c) The interest earned on the Sewer Service Fund shall accrue to that account only.
(d) The monies in the Sewer Service Fund shall not be transferred, loaned or
otherwise encumbered for any program except the acquisition, construction,
reconstruction, maintenance, and operation of the City's sewer system or as may
be further authorized under State law in accordance with the provisions of Health
&Safety Code Section 5471.
(e) Revenues derived pursuant to this Chapter and placed into the Sewer Service
Fund shall not be used for the acquisition or construction of new local street
sewers or laterals as distinguished from main trunk, interceptor and outfall sewers
or as may be further prohibited under State law in accordance with the provisions
of Health &Safety Code Section 5471.
14.54.060 Setting
_of Sewer Service User Rates and Charges
(a) The City Council shall by Ordinance establish a system of sewer service user
charges for all water customers in the City.
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(b) To the extent practicable, user charges shall be based on each sewer service
customer's category of expected rate and volume of sewer service usage. Said
charges shall not exceed the reasonable cost of providing the services, facilities or
regulatory activity for which the fee is charged.
14.54.070 Annual Prollram Review
The Sewer Service Fund shall be subject to an annual review and performance audit by
the Public Works Commission. The City Council periodically, at least annually, shall
receive at a regularly scheduled meeting, oral and written presentations as recommended
by the Public Works Commission, concerning fees, rates, and/or charges proposed to be
modified or added to the sewer service user charge. Such public meeting and oral and
written presentations shall be provided prior to the City Council taking any action on any
new or modified sewer service user charges. At least one such public hearing shall be
held annually, in conjunction with the City's annual budget process and hearing.
14.54.080 Billing of Sewer ,Service User Charges
The billing of the sewer service user charge for water customers of the City shall be made
at such time and frequency and such method as the City Council may deem appropriate
by Ordinance.
14.54.090 Payment and Collection of Sewer Service User Charges
All sewer service user charges, however billed, shall be subject to the payment, collection
and enforcement procedures for water billings as set forth in Municipal Code Section
14.12.120.
14.54.100 Exemptions
(a) Exemption Categories. The following water customers shall be exempt from the
requirements of this Chapter:
(1) The City of Huntington Beach.
(2) Water customers with irrigation only accounts or meters as determined by
the Public Works Director.
(3) Water customers who are not connected to the City sewer system.
(b) Claim for Exemption Required. Any claim of exemption under 14.54.100(a)(3)
must be filed in the same manner and will be considered pursuant to the same
procedure as for a sewer service user charge adjustment as provided in Section
14.54.110.
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14.54.110 Sewer Service User Charge Adiustments and Appeals Process
(a) Any water customer subject to the sewer service user charge may apply to the
City for an adjustment of or exemption from the charge.
(b) Any water customer who has reason to dispute the imposition or computation of
the sewer service user charge billed pursuant to this Chapter shall file, within
sixty(60) days of payment of the charge, an application for an adjustment in the
manner prescribed by the Administrative Implementation Guidelines. The Public
Works Director shall consider all data provided along with the application and
shall render a decision in writing to the applicant within forty-five (45) days of the
date that the application is received.
(c) Any applicant who has reason to dispute a decision of the Public Works Director
regarding the application for adjustment and for exemption pursuant to Section
14.54.110(b) shall file an appeal of said decision to the Public Works Commission
in the manner prescribed by the Administrative Implementation Guidelines. The
decision of the Public Works Commission will be final with respect to City action
on the appeal.
14.54.120 Refund of Sewer Service User Charge
-Upon application for a sewer service user charge adjustment or exemption pursuant to
Section 14.54.110, a charge will be refunded, wholly or in part, only if a water customer
demonstrates to the satisfaction of the Public Works Director and/or Public Works
Commission that the charge was erroneously or illegally collected, or if the City is
compelled to do so pursuant to a final judgment by a court of competent jurisdiction.
14.54.130 Preparation of Administrative Implementation Guidelines
Within sixty(60) days after the effective date of the Ordinance enacting this Chapter, the
Public Works Director shall prepare administrative guidelines to implement the
provisions of this Chapter. The guidelines shall include administrative procedures,
example fee calculations, application and appeals forms and such other information that
will assist City staff, decision makers, sewer service customers and the general public to
understand how the provisions of this Chapter are to be implemented.
SECTION 3. Severability. The City Council hereby declares that the provisions of this
Ordinance are severable and, if for any reason a court of competent jurisdiction shall hold any
phrase, sentence, paragraph or section of this Ordinance to be invalid, such decision shall not
affect the validity of the remaining parts of this Ordinance.
SECTION 4. Effective Date. This Ordinance shall take effect and be in full force thirty(30)
days from and after passage thereof
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PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 4th day of September 2001.
Mayor
ATTEST: APPROVED AS TO FORM:
tso
City Clerk City Attorney
REVIEWED AND APPROVED: _7ED AND APPRO, ED
0
City Adifinistrator Public Works Director
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Ord. No. 3504
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH } _
1, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the
City of Huntington.Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing ordinance was read to said City Council at
a regular meeting thereof held on the 20th day of Aueust, 2001, and was again read to
said City Council at a r_egular meeting thereof held on the 4th day of September, 2001,
and was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council.
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo,Dettloff, Bauer
NOES: None
ABSENT: None
ABSTAIN: None
1,Connie Brockway CITY CLERK ofthe City of
Huntington Beach and ex-officio Clerk of the City
Council,do hereby certify that a synopsis of this
ordinance has been published in the Independent on
2001
In accordance with the City Charter of said City City Clerk and ex-officio Clerk
Connie Brockway, City Clerk of the City Council of the City
� u y City Clerk of Huntington Beach, California
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