HomeMy WebLinkAboutHuntington Harbour Clean Water & Safe Navigation Boat Fee - Dredging - Code Enforcement (agreement to be prepared in future & approved In-house) - 2002-10-07Council/Agency Meeting Held: 1e - 07^ 01
Deferred/Continued to:
Approved 0 ConditionalJyApprov@d _ 0 Denied Clify Clerk'^ ignature„ `
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Council Meeting Date: October 7, 2002 Department ID Num er: CS02-036.
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
C=
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS c-- =
SUBMITTED BY: RY SILVER, City Administrator age
PREPARED BY: b GAIL HUTTON, City Attorney �
to-
SUBJECT: APPROVE HIRING OF CONSULTANT TO DEVELOP A
HUNTINGTON HARBOUR CLEAN WATER AND SAFE
NAVIGATION BOAT FEE
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Should the city retain a consultant to assist in the development of a
fee structure for boats in Huntington Harbour.to address water quality, code enforcement,
and dredging?
Funding Source: $25,000 from General Fund Attorney Fees Professional Services Account
#10015301.69375 to be reimbursed with adoption of fee.
Recommended Action: Motion to:
Authorize the expenditure of $25,000 from General Fund Attorney Fees Professional
Services Account #10015301.69375 for the purpose of contracting with a consultant to
assist the city in the development of a fee .for boats in Huntington Harbour to address code
enforcement and dredging costs.
Alternative Action(s): Do not appropriate funds for a consultant to perform a fee study, and
do not implement a fee to offset code enforcement and dredging costs in the harbor.
Analysis: In January 2002, City Council gave staff direction to develop a new enforcement
ordinance for Huntington Harbour. The City Attorney's Office • has prepared the new
enforcement ordinance, which is scheduled for first reading on October 21, 2002. The
ordinance will require enforcement of live-aboards, leaking holding tanks, derelict boats,
derelict or illegal docks, zoning code violations, illegal structures, and environmental
regulations. Staff has done a preliminary analysis on the cost to provide this enforcement.
Staff has also completed a dredging study and has determined that the cost to implement the
dredging and the new ordinance, entitled Huntington Harbour Clean Water and Safe
Navigation Ordinance, will be approximately $700,000 a year. Staff anticipates that the
Regional Water Quality Control Board will soon mandate enforcement of more stringent
pollution standards. In an effort to offset these costs, staff is recommending that a
REQUEST. FOR COUNCIL ACTI
MEETING DATE: October 7, 2002 DEPARTMENT ID NUMBER: CS02-036
Huntington Harbour Clean Water and Safe_ Navigation Boat Fee be established. To
determine what this fee should be, staff is recommending the hiring. of a professional
consultant.
One of the city's premier developments is Huntington Harbour, built upon an estuary that
leads to the Pacific Ocean. It consists of single-family residences and condominiums with
waterfront access to the harbor. In addition, there is a marina, fuel station, and launch ramp
as well as restaurants and other businesses in the harbor. The Army Corps of Engineers
previously would dredge the harbor but has indicated that it will no. longer do so. The city is
faced with the dual problems of funding the dredging operation as well as the enforcement of
more stringent pollution standards from the Regional Water Quality Control Board. The city
is exploring the feasibility of levying a user fee or other fees on boats to fund the dredging
and code enforcement activities. There are a number of issues that need to be addressed.
The actual ownership of the waterway as well as any federal or state constraints or
preemptions on charges will need to be explored. In levying a user fee, state law requires a
clear nexus between the fee and the services provided. The actual charge must also be
reasonably related to the cost of the service provided.
There are at least five types of boating uses of the harbor: 1) boats in permanent slips; 2)
boats in transit or temporary overnight slips; 3) boats in sublet slips; 4) boats launched from
the launch ramp; 5):boats moored or slipped while undergoing repairs; and 6) boats visiting
for a short period such as lunch at a restaurant or taking on fuel. The fees by type of activity
would most likely differ or, in some cases, be waived.
The collection methods could vary widely from the city sending out bills to boat owners or the
city collecting the fee as part of the personal property tax levy. The identification of the boats
to be charged may be a challenge. By the very nature of boats, they move and in some
cases are absent during a census. When they are sold, they are removed from the harbor
and replaced with others. The monitoring and collection of the fee will require establishment
of a simple mechanism to minimize collection costs and.administration of the fee.
Scope of Services
Task 1: Clarify surrounding legal issues -- This task will primarily involve the City Attorney's
Office with the consultant assisting in identifying legal issues .that must be clarified before
funding mechanisms can be evaluated. Examples include the applicability of Proposition 218
and whether federal waterway laws preclude a harbor user fee.
Task 2: Quantify costs to be recovered — City staff will provide estimated dredging costs.
The consultant will work with the city to identify proposed code enforcement costs and apply
an appropriate overhead factor. The consultant will utilize the city's existing overhead
calculation with any adjustments required.
Task 3: Identify parameters of user fee — In this task, the consultant will investigate whether
any vessels should be excluded 'from the dredging/code enforcement charge (one -day
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REQUEST FOR COUNCIL ACTIQN
MEETING DATE: October 7, 2002
DEPARTMENT ID NUMBER: CS02-036
visitors, etc.), and whether the fee should vary based on frequency of usage, vessel size or
type of use. Based on these parameters, the consultant will identify the customer base that
the fee will be spread among.
Task 4: Canvass other harbors — In this task, the consultant will contact other harbor
operations to see how other jurisdictions have handled similar issues.
Task 5: Evaluate funding alternatives — Based on information gathered in tasks 1 through 4,
the consultant will evaluate the various funding alternatives. Criteria will include legality,
equality, ease of administration, and convenience to rate payers. The consultant will present
evaluation findings to the city for an ultimate decision. Fee mechanism alternatives might
include increased slip fees, surcharge on personal property tax roles, surcharge on fuel
dispensing, etc.
Task 6: Calculate fee, prepare documentation and report — The consultant will use the
information developed in prior tasks to calculate the fee and prepare the fee documentation.
The fee amount will be set to offset the cost of dredging and code enforcement operations.
The consultant will compile findings in a draft report suitable for discussion with staff, and
then finalize the report including staff comments.
Finally, the .consultant will provide 1) tables that present the costs to be funded and the
customer base; 2) results from a canvass of other harbors; and 3) a final report that briefly
discusses the various alternatives considered and presents the final fee for consideration by
Council. Staff estimates that there are over 4,800 boats moored and/or docked in Huntington
Harbour. To raise $700,000 per year, the average annual boat fee should be $150.
The cost to do the above scope of work will not exceed $25,000, which will be reimbursed to
the General Fund Attorney Fees Professional Services Account when the fee is established
and collected.
Timeline
Staff plans to bring this issue to Council according to the following schedule:
October 21, 2002 -------------------------
November 18, 2002 ----------------------
February 3, 2003 --------- I
18, 2003 -----------------------
May2003----------------------------------
August 2003
First reading of enforcement ordinance.
Second reading of enforcement ordinance.
Public hearing on boat fee.
Adoption of resolution establishing boat fee.
Notification to all Huntington Harbour boat owners
of new enforcement ordinance, purchase of
sticker requirement, and payment of fee within
90 days.
Begin enforcement of both boat fee and
ordinance.
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R• UEST FOR COUNCIL ACTIQN
MEETING DATE: October 7, 2002 DEPARTMENT ID NUMBER: CS02-036
The above timeline may be subject to change depending on the consultant's ability to
complete the fee study within the time frame outlined above.
Attachment(s):
RCA Author: RH:cr
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(14) •
October 7, 2002 - CoUSI/Agency Agenda - Page 14
E-13. (City Council) Approve Hiring of Consultant to Develop a Huntington Harbour
Clean Water and Safe Navigation Boat Fee (for Code Enforcement and Dredging
Costs) ( . ) — Authorize the expenditure of $25,000 from General Fund Attorney Fees
Professional Services Account #10015301.69375 for the purpose of contracting with a
consultant to assist the city in the development of a fee for boats in Huntington Harbour
Tto address code enforcement and dredging costs. Submitted by the City Attorney.
1tJ1J Funding Source: $25,000 from General Fund Attorney Fees Professional Services
Tf)� Account to be reimbursed with adoption fee.
(1) Requested total revenue figures that city receives from boat
fees and property tax; and (2) Confirm the Army Corps of
Engineers' role relative to responsibility for dredging.
Approved 5-0-2 (Dettloff absent; Houchen out of room)
E-14. (City Council) Adopt Resolution No. 2002-95 Amendina Resolution No. 2002-86
(which was Approved at the 9/16/02 Council Meeting) to Modify Salary and
Benefits for the City Attorney ( . ) — Adopt Resolution No. 2002-95 — "A Resolution
of the City Council of the City of Huntington Beach Amending Resolution No. 2002-86
Related to Benefits and Salary for the City Attorney." Submitted by the City
Administrator. Funding Source: Funding for the appointment is included in the FY 02-03
budget.
Approved 6-0-1 (Dettloff absent)
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RCA ROUTING SHEET
INITIATING DEPARTMENT:
CITY ATTORNEY'S OFFICE
SUBJECT:
APPROVE HIRING CONSULTANT TO DEVELOP
HUNTINGTON HARBOR CLEAN WATER AND SAFE
NAVIGATION BOAT FEE
COUNCIL MEETING DATE:
October 7, 2002
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other.Exhibits
Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorne
Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Not Applicable
Financial Impact Statement Unbudget, over $5,000
Not Applicable
Bonds If applicable)
Not Applicable
Staff Report If applicable)
Not Applicable
Commission, Board or Committee Report If applicable)
Not Applicable
Findings/Coriditions for Approval and/or Denial
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED ;FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
RCA Author: