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HomeMy WebLinkAboutREVISE DRAINAGE FEE - Ordinance 3741 Amend Chapter 14.48 of (2) PROOF OF PUBLICATION STATE OF CALIFORNIA} ) ss. COUNTY OF ORANGE } 1 am a Citizen of the United States and a "ANORDINANCEOFTHE THE REVISED >DRDt- OF CITY OF HUNTINGTON NC€ CONTA US AN .resident of the County aforesaid; l am HUNTING ONBEA(M CHAPTER 14A8 UUFH. E FAACCITOR;TOD UTOMATjI-" over the age of eighteen years, and not a LEGAL HUNNIOP L CODE H CALLY ELECT AN'THY FEE ORDINANCE NO.374.1� RELATING CODE TO REFLECT ANY FU- Adopted by the City, '_RELItTIN�TO DRAINAGE T1J1iE�ICR€AS€IN CON- party to or interested in the below entitled 'Adopted I FEES STf ICTiQNCOSTS 1� y, AU�SUST Z1,200.6 ` SYNOPSIS; COPIES- If""O= matter. l am a principal clerk of the - HE: 2005 `.DRAINAGE NA ARE AVAILABLE HUNTINGTON BEACH INDEPENDENT, FEE STUDY DETERMINED IN THE CITY CLERK'S, THE �F� TO BE_AS- OfE10E.. SESSED ON FUTURE PRI- PASSED AND ADOPTED a VOTE RY PMEN the the City'Council 0f newspaper of general circulation, NECESSARY TO FUND the City of'Huntington THE RECOMMENDED Beach'at'a:regular meet- printed and published in the City of D R A't N.A G E"t t M- ing held August2l,M PROVEMENTS WITHIN by,{he fa110wrng roll call . Huntington Beach County of Orange ANY' DEVELOPMENT'S vote: DRAINAGE DISTRICT. AY[i-.`Bohr,' Coerp'er, State of California, and that attached 4IVFNJHE COST,N€CES-'.Snllivan; Hardy,, Hansen, SARY TQ FUND THE RE- ,Cook Notice is a true and complete copy as bpAAVING STORM"'RAIN- NOESe, Rreen IMPROVEMENT AS ASSEIfT:- Now" {� COMPARED TO TH :RE- T11s ordieo�e is of,' was printed and published in the MAII II ,DEVEIO,ABLE fective 30 drays after LA , THE RESULTS OF ndaptron Huntington Beach Issue of Said THE STUDY, INDICATED CiTYOF THAT ,AN UNDIiE 6140- HUNTINGTON REACH newspaper to wit the Issue(s) of: DEN WOULD BE PLACED 2000MAIWSTREET ON FUTURE DEVELOP- HUNTINGTON REACH, %MEIN PR ECTS.IT WAS' . CA 92bA$' RECOMMENDED THAT 7I4=536 i221 THE EXISTING FEES BE MARL.FLYNN_` ADJUSTED BY HE IN- '' CITY CLERK 'USTRY',.STA+NDARp Published- HuOngtori` CONSTRUCTIO!V 'COST Beach Indpendeht Aug, INDEX TO REFLECT THE MY 2006', 08540 INCREASED .COST OFI '— AUGUST 31 , 2006 CONSTRUCTION-,SINCE, THE .CURRENT FEE WAS ADOPTED-AN 1985, AN THAT ^_THESE .FEES" BE A EU 'TO ESTAB� LASH MMON, FEE OF 'ACRE TO MAW4� T THE. 'HIGHEST NAGti DISTRICT.FEE, declare, under penalty of perjury,that the foregoing is true and correct Executed on AUGUST 31 ,2 0 0 6 at Costa Mesa, California. Signature RECEIVED JUL 24 PM 5: 39 Council/Agency Meeting Held: YI-7,106 Deferred/Continued to: cl%-y 07: G'T 01 S3 1z 11 C,I'l - jApproved 0 Condikn—dly kolft-'4'0)LI Denied ity CIV Si tur Council Meeting Date: 8/7/2006 Department ID Number: PW 06-029 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY-CPUNCIL MEMBERS SUBMITTED BY: PENEL(?E CULBRETH-GRAFY, CITY ADMINISTRATOR PREPARED B—*�WROBERT F. BEARDSLEY, PE, DIRECTOR OF PUBLIC WORK SUBJECT: Revise Drainage Fee s) Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(] Statement of Issue: A revision to the Drainage Fee is proposed to reflect the increased cost of construction. Funding Source: No funding is required for this action. Recommended Action: Motion to: 1. Adopt Ordinance No. an ordinance of the City of Huntington Beach, amending Chapter 14.48 of the Municipal Code relating to Drainage Fees; and 2. Motion to adopt Resolution No. a resolution of the City of Huntington Beach establishing the schedule for drainage fees. Alternative Action(s): Deny or modify the recommended actions. REQUEST FOR ACTION MEETING DATE: 8/7/2006 DEPARTMENT ID NUMBER:PW 06-029 Analysis: In 2005, the City Council adopted the "Citywide Urban Runoff Management Plan" which included the Drainage Master Plan. Based upon the recommendations of the Drainage Master Plan, staff prepared the "2005 Drainage Fee Study". The Study determines the fee to be assessed on future private development, necessary to fund the recommended drainage improvements within any development's drainage district. Given the cost necessary to fund the remaining storm drain improvements as compared to the remaining developable land, the results of the study indicated that an undue burden would be placed on future development projects. It is recommended however, that, at a minimum, the existing fees be adjusted by the industry standard Construction Cost Index to reflect the increased cost of construction since the current fee was adopted in 1985. Furthermore, it is recommended that these fees be adjusted to establish a common fee of $12,600 per acre to match the highest drainage district fee. The revised ordinance will contain an annual adjustment factor to automatically adjust the fee to reflect any future increase in construction costs. The City Attorney has concurred with the precepts and proposed adjustments to the fee structure presented herein and in the "2005 Drainage Fee Study" (Attachment 4). In addition, the Drainage Fee Study was provided to the Chamber of Commerce for their review and comment. A public hearing notice was posted in accordance with legal requirements. Public Works Commission Action: Not required. Environmental Status: Categorically Exempt per Section 15273(a)(4). Attachment(s): City Clerk's Page Number No. Description 1. Ordinance No. 141 2. Ordinance No. t 141 Legislative Draft 3. Resolution No. o?eP 4. 1 "2005 Draina a Fee Study" G:\R C A\2006\06-029 August 7 Broussard (Drainage Fee).doc-2- 7/20/2006 5:09 PM ATTACHMENT # 1 ORDINANCE NO. 3741 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 14.48 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO DRAINAGE FEES The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. Section 14.48.010 of the Huntington Beach Municipal Code is hereby amended to read as follows: 14.48.010 Master plan of drainage. The City has adopted a Master Plan of Drainage pursuant to California Government Code sections 66483 et seq. Said drainage plan has been determined by the Board of Supervisors of the County of Orange to be in conformity with the County drainage plan. A copy of the City's Master Plan of Drainage is on file in the City Clerk's Office and the same is made a part hereof as if fully set forth in this chapter. The City Council hereby finds, by adopting the City's Master Plan of Drainage, that the subdivision and development of property within the district areas requires the construction of the facilities as set forth in the aforementioned Master Plan of Drainage. The City Council hereby finds, by adopting the City's Master Plan of Drainage,that the fees, established by resolution of the City Council, are fairly apportioned within the drainage areas set out in the City's Master Plan. (1985-7/75, 2798-11/85) SECTION 2. Section 14.48.020 of the Huntington Beach Municipal Code is hereby amended to read as follows: 14.48.020 Drainage areas. The boundaries of the drainage areas are hereby declared to be those identified in the Master Plan of Drainage, which is on file in the City Clerk's Office, and the same are made a part hereof as though fully set forth in this chapter. All drainage facilities set forth in the Master Plan of Drainage for the city of Huntington Beach are in addition to present local drainage facilities serving the drainage areas. (1985-7/75,2798-11/85) SECTION 3. Section 14.48.030 of the Huntington Beach Municipal Code is hereby amended to read as follows: 06ord/chap 1448 1 Ord. No. 374' 14.48.030 Drainage fund. There is hereby created a separate fund which shall be known as the "planned local drainage facilities fund." All moneys collected pursuant to this chapter shall be deposited into the"planned local drainage facility fund" and separate accounts shall be established for each local drainage area. SECTION 4. Section 14.48.050 of the Huntington Beach Municipal Code is hereby amended to read as follows: 14.48.050 Drainage fees. There is hereby established a requirement for the payment of fees for the purpose of defraying the actual or estimated costs of constructing planned drainage facilities for the removal of surface and storm waters for the various drainage areas. Actual drainage fees for each drainage area shall be established and amended from time to time by resolution of the City Council. Such fees shall be collected, deposited and expended pursuant to California Government Code sections 66483 et seq.,and all other applicable laws of the state of California. All necessary drainage fees established by the city shall be deposited with the city prior to recordation of a subdivision map, or issuance of a building permit if a subdivision map is not required. The subdivider or person to whom a building permit has been issued may make application for a reimbursement agreement. (1985-7/75, 1998-9/75, 2068-7/76, 13-11185,2142-1177, 2163-2177,2179-4/77) Within 180 days after the last day of each fiscal year, the City Council shall review the status of compliance with this Chapter, including the amount of fees collected and expenditures from the "planned local drainage facility fund". SECTION 5. Section 14.48.090 is hereby added to the Huntington Beach Municipal Code , said section to read as follows: 14.48.090 Annual Construction Cost Index Adjustment. (a) Each drainage fee shall be adjusted to reflect the annual percentage adjustment in the Construction Cost Index ("CCI") established by Engineering News Record as published by McGraw Hill Construction/McGraw Hill Companies as of July 1 commencing July 1, 2007. (b) Adjustments based on these criteria will be determined on July 1 of each year. The adjustments will be implemented effective the following October 1, which is the beginning of the city's fiscal year. 06ord/chap 14-48 2 Ord. No. 3741 SECTION 6. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21 day of p,,,q„G t ,200___6_. Mayor ATTEST: APPROVED AS TO FORM: Qho,*X) City Clerk City Attorney I-ripy'2(0 REVIEWED AND APPROVED: per, AND APP OVED: City Administrator / irector of Public Works 06ord/chap 1448 3 Ord. No. 3741 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I,JOAN L. FLYNN,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 7th day of August,2006, and was again read to said City Council at a re ular meeting thereof held on the 21st day of August,2006, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Bohr, Coerper, Sullivan, Hardy, Hansen, Cook NOES: Green ABSENT: None ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the 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 Huntington Beach Fountain Valley Independent on August 31,20W In accordance with the City Charter of said City Joan L. Flynn,City Clerk CU Clerk and ex-officio aerk Deputy city clerk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 ORDINANCE NO.73 LEGISLATIVE DRAFT Chapter 14.48 DRAINAGE (13-11/85, 1985-7/75, 1998-9/75,2048-5/76,2068-7/76, 2073-7/76,2142-1/77,2163-2/77,2165-3/77, 2179-4/77,2798-11/85) Sections: 14.48.010 Master plan of drainage 14.48.020 Drainage areas 14.48.030 Drainage fund 14.48.040 Advances from general fund 14.48.050 Drainage fees 14.48.060 Applicability 14.48.070 Conditions governing reimbursements 14.48.080 Drainage fee deferments 14.48.090 Annual Construction Cost Index Adjustment 14.48.010 Master plan of drainage. Ref rvneo is made to the C4tys The City has adopted a Master Plan of Drainage, da4ed july 1985, whieh is hereby,,,aopbe,a pursuant to California Government Code sections 66483 et seq. Said drainage plan has been determined by the Board of Supervisors of the County of Orange to be in conformity with the Ceounty drainage plan. A copy of the City's Master Plan of Drainage, dated ittly 1985, is on file in the City Clerk's Office and the same is made a part hereof as if fully set forth in this chapter. The City Council hereby finds, by adopting the City's Master Plan of Drainage, that the subdivision and development of property within the district areas requires the construction of the facilities as set forth in the aforementioned Master Plan of Drainage. The City Council hereby finds, by adopting the City's Master Plan of Drainage, that the fees, established by resolution of the City Council, are fairly apportioned within the drainage areas set out in the City's Mmaster Pplan fef the eity, dated ittly 1 (1985-7/75, 2798-11/85) 14.48.020 Drainage . The boundaries of the drainage areas are hereby declared to be those identified in the Master Plan of Drainage, dated ittly 1985, which is on file in the City Clerk's Office, and the same are made a part hereof as though fully set forth in this chapter. All drainage facilities set forth in the Master Plan of Drainage for the city of Huntington Beach are in addition to present local drainage facilities serving the drainage areas. (1985-7/75, 2798-11/85) 14.48.030 Drainage fund. There is hereby created a separate fund which shall be known as the "planned local drainage facilities fund." All moneys collected pursuant to this chapter shall be deposited d fain ge ffind into the "planned local drainage facility fund" and separate accounts shall be established for each local drainage area. legisdrft/m04 48 1 The city shall have the right in lieu of accepting cash,pursuant to this chapter,to accept other proper and valid consideration. (1985-7/75) 14.48.040 Advances from general fund. The city may advance funds from its general fund to pay the cost of constructing drainage facilities within a local drainage area and may reimburse the general fund for such advances from the planned local drainage facilities fund for the local drainage area in which the drainage facilities were constructed. (1985-7/75) 14.48.050 Drainage fees. There is hereby established a requirement for the payment of fees for the purpose of defraying the actual or estimated costs of constructing planned drainage facilities for the removal of surface and storm waters for the various drainage areas. Actual drainage fees for each drainage area shall be established and amended from time to time by resolution of the City Council. Such fees shall be collected, deposited and expended pursuant to California Government Code sections 66483 et seq., and all other applicable laws of the state of California. All necessary drainage fees established by the city shall be deposited with the city prior to recordation of a subdivision map, or issuance of a building permit if a subdivision map is not required. The subdivider or person to whom a building permit has been issued may make application for a reimbursement agreement. (1985-7/75, 1998-9/75,2068-7/76, 13-11/85,2142-1/77, 2163-2/77,2179-4/77) Within 180 days after the last day of each fiscal year, the City Council shall review the status of compliance with this Chapter, including the amount of fees collected and expenditures from the "planned local drainage facility fund. 14.48.060 Applicability. The provisions of this chapter shall apply to all subdivisions of land and the development of all land within the drainage area unless the fees were previously paid by prior development. It shall be the responsibility of the applicant to construct all on-site improvements as may be required by the city, including all off-site drainage facilities as are required by the city. The applicant shall be reimbursed by the city for all required off-site construction, in accordance with section 14.48.070. (1985-7/75) 14.48.070 Conditions governing reimbursements. Notwithstanding any other provisions of this chapter,the payment of refunds shall be governed as follows: (a) Refunds shall be payable for a period of five (5)years from date of applicant's application. (b) Refunds shall not exceed 90 percent of off-site construction costs. (c) Refund shall bear no interest. (d) The city shall not be liable for payment of any refund by reason of its failure to collect or receive from any person the drainage fee. legisdrft/mc 14 48 2 (e) The city retains the right to exempt a public agency from payment of drainage fees and shall not be liable to applicant for refund because of said exemption. (f) Reimbursement agreements covering the payment of refunds shall be writing. (g) The city shall not be required to make reimbursement to any person until all drainage construction projects in a drainage area are completed. (1985-7/75,2048-5/76) 14.48.080 Drainage fee deferments. The owner or developer of any industrial property may apply to have a portion of the drainage fees required by this section deferred for a period of time not to exceed five (5)years from the date of deferment. The application for deferment of any drainage fees must be made to the director of public works and be approved by the City Council. The owner or developer of any property to be used for open space developments such as for horses, golf driving ranges, or other transitional or temporary uses, may apply to have a portion of the drainage fees required by this section deferred for a period of time not to exceed ten(10) years from the date of application. In the case of open space developments, every owner or developer shall pay a cash deposit in the amount of 10 percent of the drainage fee established at the time the owner or developer files application for fee deferment, 25 percent of said drainage fee five (5) years after said application, and 65 percent of said drainage fee ten(10)years after said application. For each subsequent developer, or for each change of use, the subsequent developer shall pay 10 percent of the drainage fee established at the time the subsequent developer filed application for fee deferment, 25 percent of said drainage fee five (5)years after said application and 65 percent of said drainage fee ten(10)years after said application, or the entire balance if the balance of the total drainage fee owed to the city is the lesser amount. Each deposit shall be retained by the City Treasurer and shall be applied to the drainage fee which is in effect at the time of the application for deferment and shall be a credit to the total drainage fee applicable to such property. In the case of industrial development,the owner or developer shall pay a cash deposit in the amount of 20 percent of the drainage fee established for the development at the time of deferment. The remaining 80 percent shall be paid at the rate of 20 percent per year for the following four(4)years on the anniversary date of the deferment. For the purposes of this section, transitional and temporary uses shall only be those uses permitted by ordinance,use permit or conditional use permit, and approved by the planning commission or board of zoning adjustments. The City Council shall have the discretion to accept or reject any application for deferment of drainage fees or any portion thereof. Application for such deferment shall be made to the director of public works and be approved by the City Council. In the event the required waiver is denied,the cash deposit shall be returned to the applicant within a reasonable time. Land areas which are covered by existing reimbursement agreements for storm drains or other drainage structures are excluded from deferment of drainage fees hereunder. (2073-7/76, 2165-3/77) 14.48.090 Annual Construction Cost Index Adiustment. legisdrft/mc14 48 3 (a) Each drainage fee shall be adjusted to reflect the annual percentage adjustment in the Construction Cost Index ("CCI") established by Engineering News Record as published by McGraw Hill Construction/McGraw Hill Companies as of July 1 each year commencing July 1, 2007. (b) Adjustments based on these criteria will be determined on July 1 of each year. The adjustments will be implemented effective the following October 1, which is the beginning of the city's fiscal year. legisdrft/mc 14 48 4 ATTAC H M E N T #3 RESOLUTION NO. 2006-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING THE SCHEDULE FOR DRAINAGE FEES AUTHORIZED BY HUNTINGTON BEACH MUNICIPAL CODE CHAPTER 14.48. WHEREAS, pursuant to Chapter 14.48 of the Huntington Beach Municipal Code, the City Council is authorized to collect fees for the purposes of defraying the actual or estimated costs of constructing planned drainage facilities for the removal of surface and storm waters from local drainage areas; and The City Council has reviewed the report entitled 2005 Drainage Master Plan included within the"Citywide Urban Runoff Management Plan"dated January 2005, which contains an estimate of the total costs of constructing the local drainage facilities required by the Drainage Master Plan and includes a map of such area showing its boundaries and the location of such facilities; and The Drainage Master Plan has been available for public inspection and review prior to consideration of this resolution by the City Council after a public hearing; and The 2005 Drainage Master Plan has been determined by resolution of the Board of Supervisors to conform to the drainage plan for Orange County, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The 2005 Drainage Master Plan is hereby adopted. 2. The following new drainage fee schedule is established for the City: NEW DRAINAGE OLD DRAINAGE DISTRICT FEE PER ACRE DISTRICT 1. Santa Ana River/H. B.Channel/Talbert Channel $12,600 2. Wintersburg Channel/Downtown $12,600 3. Wintersburg Channel/Downtown $12,600 4. Wintersburg Channel/Downtown $12,600 5. Huntington Harbour $12,600 3. The Drainage Master Plan establishes that the drainage fees authorized herein are charges for existing facilities and new facilities to be constructed in the future that will benefit the person being charged. 4. California Environmental Quality Act. The City Council hereby finds that the adoption of this Resolution is exempt from the California Environmental Quality Act("CEQA") under Section 15273(a)(4) of the California Code of Regulations, commonly known as the G:\RESOLUTN\2005\DrainageFees 14.48.doc Reso. No. 2006-23 CEQA Guidelines. The City Council finds that this exemption applies because the charges authorized herein are for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas, and there is no reasonable possibility that the modification of the drainage fee areas and fees authorized by Huntington Beach Municipal Code Chapter 14.36 could negatively affect the physical environment. Any environmental impacts associated with specific projects that may be undertaken with the monies collected pursuant to this resolution and Huntington Beach Municipal Code Chapter 14.48 will be assessed as each project is formulated. The City Council also hereby finds that the adoption of this Resolution is exempt from CEQA pursuant to the Supplemental Environmental Categorical Exemptions adopted by the City Council pursuant to Resolution No. 4501, which provides that information collection which does not result in a serious or major disturbance to an environmental resource are exempt as a Class VI exemption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 7 th day of August , 2006. Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City Ad inistrator S+YCyAttorney TIA D AND APP OVED: Director of Public Works GARESOLUTN12005�DrainageFees 14.48.doe Res. No. 2006-23 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN 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 resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 7th day of August, 2006 by the following vote: AYES: Bohr, Coerper, Sullivan, Hardy, Hansen, Cook NOES: None ABSENT: Green ABSTAIN: None C Clerk and ex-offici Jerk of the City Council of the City of Huntington Beach, California ATTACHMENT #4 CITY OF HUNTINGTON BEACH 2000 Main Street ♦ PO Box 190 ♦ CA 92648 Robert F. Beardsley, PE Department of Public Works Director (714) 536-5431 2005 DRAINAGE FEE STUDY Executive Summary The City of Huntington Beach recently completed an update to its Master Plan of Drainage (MPD) as part of the Citywide Urban Runoff Management Plan. The MPD has identified numerous capacity enhancements within the existing drainage system, which is estimated to cost approximately $120 million to meet the established 100-year storm criteria. An additional $121 million has also been identified to provide enhancements to meet other established "convenience" criteria. The convenience criteria generally relates to self-imposed requirements such as limiting flooding of non-residential streets to all but one lane or disallowing flooding to cross intersections. These requirements can be restrictive, however as previously mentioned are provided as a convenience to the public with little relationship to the potential to flood habitable structures. The City's only dedicated fund for drainage improvements is through collection of a drainage fee, which is assessed to development projects. As such, the current fee structure, which was adopted in 1985, is based on the total cost of drainage improvements within the drainage district, divided by the remaining developable area within that district. This study analyzes the fee structure necessary to implement the drainage improvements as identified in the recent MPD. Due to the estimated costs involved, compared to the remaining developable area left in the city, this fee would cause an undue burden on any future development. Therefore, until such time that an alternative funding source can be identified, staff recommends that the current fee structure be utilized with inflation adjustments to reflect the increase in the cost of construction. Since the adjusted fee is well below the legally permissible fee, a single fee of $12,600 per acre is recommended. Existing Drainage Fee The 1979 MPD was used to identify drainage enhancements and associated costs, which totaled approximately $28 million at the time. The current drainage fees were established and adjusted by Resolution #5578, which was adopted in 1985 and is outlined below: Drainage District Fee per Acre Huntington Harbor $5,500 Wintersburg Channel $5,500 Talbert Channel $7,000 Downtown $6,000 Huntington Beach Channel $7,000 Santa Ana River $9,000 1 GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc Drainage Fee Based on 2005 MPD The City completed an updated MPD earlier this year. The MPD delineated the city into 5 drainage districts, (Figure 1) and identified the cost of capacity enhancements into two basic categories (Figure 2). The first category, identified enhancements related to flood protection against a 100-year storm event. The cost of drainage improvements to achieve those criteria is approximately $120 million. The second category identified enhancements where "convenience" criteria, which were established when self-imposed restrictions, were exceeded. The additional cost to meet the second criteria was estimated at approximately $121 million. 2' nnoaeling Regions a� N 0 1 2 Miles Figure 1. 2005 MPD Drainage Districts 2 GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc Table 4-9A City of Huntington Beach Drainage Master Plan Candidate System Upgrade Projects January 2005 Pipe Length Cost, Rounded to Description All Sizes 1,000s (feet) :IPROJECT TOTALS 1.Total Length&Cost for all Major Drainage Watershed Planning Areas to meet Q100 211,911 $120,157,000 Criteria Only 2.Additional Length&Cost for Major Drainage Watershed Planning Areas to meet 228,435 $86,692,000 Self Imposed Restrictions 3. Half-round Facilities Improvements $2,300,000 4.Storm Water Pump Station Rehabilitation/Replacement $32,500,000 Total Costs for all Upgrade Projects(Items 2+3+4) $241,649,000 Figure 2. Excerpts from Table 4-9A from 2005 MPD 3 GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc The following fee schedule was determined based on the cost to meet the established criteria: Table 1. Drainage Fee Schedule (Based on 2005 MPD) Drainage Undeveloped Flood Fee Based on Total Fee Based on District Area Improvement Q100 Improvement Total Cost (Acres) Cost Protection Cost Per Acre (Q100) Per Acre (All) 1 100 $61,000,000 $610,000 $125,000,000 $1,250,000 2 3 $21,000,000 $7,000,000 $30,000,000 $10,000,000 3 18 $21,000,000 $1,666,667 $36,000,000 $2,000,000 4 2 $8,000,000 $4,000,000 $25,000,000 $12,500,000 5 10 $9,000,000 $900,000 $25,000,000 $2,500,000 Total 133 $120,000,000 $241,000,000 As evidence by the above fee structure, to adjust the fee to reflect the actual cost to fund the drainage improvements as compared to the remaining developable acreage in the city would place an undue burden on future development. Therefore until such time that an alternative citywide funding source can be identified to fund these improvements, staff recommends adjusting the existing fee structure to a palatable level, but at a minimum, to account for the increase in the cost of construction since the fee was adopted in 1985. Proposed Drainage Fee A comparison of the Engineering News Record (ENR) construction cost index (CCI) is used to adjust the existing fee structure as shown: Year CCI 1985 4195 2006 7692 The cost of construction has increased by a factor of 1.8. Therefore this increase will be applied to the existing drainage fee schedule. However, the Subdivision Map Act requires that an increase in the drainage fee be based on the latest adopted MPD. Therefore, the following schedule applies the current fee structure to the new drainage districts as well as adjusts the current fees to account for inflation. GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc 4 Table 2. Drainage Fee Schedule (Existing Schedule Adjusted for Inflation) New Old Drainage District(s) Existing Fee Adjusted Fee Drainage Per Acre Per Acre District 1 Santa Ana River/ H. B. Channel /Talbert Channel $7,000 $12,600 2 Wintersburg Channel / Downtown $5,500 $9,900 3 Wintersburg Channel/ Downtown $5,500 $9,900 4 Wintersburg Channel / Downtown $5,500 $9,900 5 Huntington Harbour $5,500 $9,900 * Lowest district fee used Recommendation As all of the fee rates would be well below what could legally be applied, as shown in Table 1., and to ensure proper collection and a sense of common equity by those paying future fees, staff recommends that all districts be charged the same rate at a minimum of$12,600 per acre. 5 GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc RCA ROUTING SHEET INITIATING DEPARTMENT: PUBLIC WORKS SUBJECT: Revise Drainage Fee COUNCIL MEETING DATE: August 7, 2006 RCA ATTACHMENTS STATIiS Ordinance (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Attached ❑ Contract/Agreement (w/exhibits if applicable) Not Applicable (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. Not Applicable Approved as to form by City Attorne El Certificates of Insurance (Approved b the City Attorne Attached ( pp Y Y Y) Not Applicable Attached Fiscal Impact Statement (Unbud et, over $5,000) Not Applicable If applicable) Attached Bonds ❑ ( pp ) Not Applicable ❑ Attached Staff Report (If applicable) Not Applicable ❑ Commission, Board or Committee Report If applicable) Attached ❑ P ( pp ) Not Applicable s/Conditions for Approval and/or Denial Attached ElFindin 9 Pp Not Applicable ❑ EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR ED Administrative Staff Assistant City Administrator Initial 6 City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author: T. Broussard �J {� CITY OF HUNTINGTON BEACH 2000 Main Street P . O . Box 1 90 Huntington Beach , CA 92648 LETTER OF TRANSMITTAL Fax (714) 374-1573 Attention: Joan Flynn Date: July 17, 2006 To: City Clerk's Office Project/C.C.No.: 2000 Main Street Regarding: Drainage Fee Huntington Beach, CA 92648 ❑ We are sending you: ❑ By Mail ❑ By Fax Mail(Number of pages including this sheet:) ® We are hand delivering: ❑ Attached ❑ Under a separate cover via the following items: ❑ Shop drawings ❑ Prints ❑ Plans ❑ Samples ❑ Specifications ❑ Copy of letter ❑ Change Order ® Other: Notice of Public Hearing Item# Copies Pa es Description 1 1 1 Notice of Public Hearin 2 3 4 5 These are transmitted as checked below: ❑ For approval ❑ Approved as submitted ❑ Resubmit copies for approval ® For your use ❑ Approved as noted ❑ Submit copies for distribution ® For your action ❑ Returned for corrections ❑ Return corrected prints ❑ For review/comment ❑ Other: Remarks: On August 7, 2006, the City Council will consider revising the Drainage Fee. Please find attached the Notice of Public Hearing to be published on July 27, and August 3, 2006 pursuant to Gov. Code Sections 66018, 6062a as well as mailed by July 24, 2006 to all persons requesting notice pursuant to Gov. Code Section 66016. Also attached is the Report to be held by the City Clerk for public review. Please contact me at extension 5247 with any questions you may have or Leonie Mulvihill, the attorney assigned to this item, at extension 5620. By: _ I j P--n��j Todd Broussard, Principal Civil Engl er Cc: Leonie Mulvihill wl co py ��%,.'d^�� —��" 0 GAENGINEERING DIVISION\BROUSSARD\STORM DRAIN\DRAINAGE FEE\TRANSToOwCLERKDRAINAGEFEE2.DOC T� vEGm41LL� NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REVISION TO DRAINAGE FEE Notice is hereby given that the City Council of the City of Huntington Beach will hold a public hearing in the Council Chambers of the Civic Center, 2000 Main Street, Huntington Beach at the hour of 6:00 p.m., or as soon thereafter as possible on August 7, 2006, for the purpose of considering revisions to the Drainage Fee. The proposed Fee would be imposed on property owners as a condition of development of their property, which results in an increase in runoff. A report detailing the reasons and methodology for the Drainage Fee will be available for public review at City Hall, 2000 Main Street in the City Clerk's office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday,beginning July 27, 2006. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the above proposals. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to,or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated July 27, 2006 City of Huntington Beach by: Joan Flynn, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone(714) 536-5227 DADocuments and Settings\esparzap\Local Settings\Temporary lntemet Files\OLK61 E\Drainage Fee Noticel.doc NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REVISION TO DRAINAGE FEE Notice is hereby given that the City Council of the City of Huntington Beach will hold a public hearing in the Council Chambers of the Civic Center, 2000 Main Street, Huntington Beach at the hour of 6:00 p.m.,or as soon thereafter as possible on August 7, 2006, for the purpose of considering revisions to the Drainage Fee. The proposed Fee would be imposed on property owners as a condition of development of their property, which results in an increase in runoff. A report detailing the reasons and methodology for the Drainage Fee will be available for public review at City Hall, 2000 Main Street in the City Clerk's office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday, beginning July 27, 2006. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the above proposals. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated July 27, 2006 City of Huntington Beach by: Joan Flynn, City Clerk 2000 Main Street Huntington Beach,CA 92648 Telephone(714) 536-5227 D.\Documents and Settings\esparzap\Local Settings\Temporary Internet Fi1es\0LK61 E\Drainage Fee Notice Ldoc 3 .r CITY OF HUNTINGTON BEACH 2000 Main Street ♦ PO Box 190 ♦ CA 92648 Robert F. Beardsley, PE Department of Public Works Director (714) 536-5431 2005 DRAINAGE FEE STUDY Executive Summary The City of Huntington Beach recently completed an update to its Master Plan of Drainage (MPD) as part of the Citywide Urban Runoff Management Plan. The MPD has identified numerous capacity enhancements within the existing drainage system, which is estimated to cost approximately $120 million to meet the established 100-year storm criteria. An additional $121 million has also been identified to provide enhancements to meet other established "convenience" criteria. The convenience criteria generally relates to self-imposed requirements such as limiting flooding of non-residential streets to all but one lane or disallowing flooding to cross intersections. These requirements can be restrictive, however as previously mentioned are provided as a convenience to the public with little relationship to the potential to flood habitable structures. The City's only dedicated fund for drainage improvements is through collection of a drainage fee, which is assessed to development projects. As such, the current fee structure, which was adopted in 1985, is based on the total cost of drainage improvements within the drainage district, divided by the remaining developable area within that district. This study analyzes the fee structure necessary to implement the drainage improvements as identified in the recent MPD. Due to the estimated costs involved, compared to the remaining developable area left in the city, this fee would cause an undue burden on any future development. Therefore, until such time that an alternative funding source can be identified, staff recommends that the current fee structure be utilized with inflation adjustments to reflect the increase in the cost of construction. Since the adjusted fee is well below the legally permissible fee, a single fee of $12,600 per acre is recommended. Existing Drainage Fee The 1979 MPD was used to identify drainage enhancements and associated costs, which totaled approximately $28 million at the time. The current drainage fees were established and adjusted by Resolution #5578, which was adopted in 1985 and is outlined below: Drainage District Fee per Acre Huntington Harbor $5,500 Wintersburg Channel $5,500 Talbert Channel $7,000 Downtown $6,000 Huntington Beach Channel $7,000 Santa Ana River $9,000 1 WEngineering DivisionTroussarMtorm Drain\Drainage Fee0rainage Fee Study.doc Drainage Fee Based on 2005 MPD The City completed an updated MPD earlier this year. The MPD delineated the city into 5 drainage districts, (Figure 1) and identified the cost of capacity enhancements into two basic categories (Figure 2). The first category, identified enhancements related to flood protection against a 100-year storm event. The cost of drainage improvements to achieve those criteria is approximately $120 million. The second category identified enhancements where "convenience" criteria, which were established when self-imposed restrictions, were exceeded. The additional cost to meet the second criteria was estimated at approximately $121 million. Liu AD _r 1 2 AAodeling Regions � s z N 0 1 2 Miles Figure 1. 2005 MPD Drainage Districts 2 G:\Engineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc Table 4-9A City of Huntington Beach Drainage Master Plan Candidate System Upgrade Projects January 2005 Pipe Length Cost, Rounded to Description All Sizes 1,000s (feet) TOTALSiPROJECT 1.Total Length&Cost for all Major Drainage Watershed Planning Areas to meet Q100 211,911 $120,157,000 Criteria Only 2.Additional Length&Cost for Major Drainage Watershed Planning Areas to meet 228,435 $86,692,000 Self Imposed Restrictions 3. Half-round Facilities Improvements $2,300,000 4.Storm Water Pump Station Rehabilitation/Replacement $32,500,000 Total Costs for all Upgrade Projects(Items 2+3+4) $241,649,000 Figure 2. Excerpts from Table 4-9A from 2005 MPD 3 GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc The following fee schedule was determined based on the cost to meet the established criteria: Table 1. Drainage Fee Schedule (Based on 2005 MPD) Drainage Undeveloped Flood Fee Based on Total Fee Based on District Area Improvement Q100 Improvement Total Cost (Acres) Cost Protection Cost Per Acre (Q100) Per Acre (All) 1 100 $61,000,000 $610,000 $125,000,000 $1,250,000 2 3 $21,000,000 $7,000,000 $30,000,000 $10,000,000 3 18 $21,000,000 $1,666,667 $36,000,000 $2,000,000 4 2 $8,000,000 $4,000,000 $25,000,000 $12,500,000 5 10 $9,000,000 $900,000 $25,000,000 $2,500,000 Total 133 $120,000,000 $241,000,000 As evidence by the above fee structure, to adjust the fee to reflect the actual cost to fund the drainage improvements as compared to the remaining developable acreage in the city would place an undue burden on future development. Therefore until such time that an alternative citywide funding source can be identified to fund these improvements, staff recommends adjusting the existing fee structure to a palatable level, but at a minimum, to account for the increase in the cost of construction since the fee was adopted in 1985. Proposed Drainage Fee A comparison of the Engineering News Record (ENR) construction cost index (CCI) is used to adjust the existing fee structure as shown: Year CCI 1985 4195 2006 7692 The cost of construction has increased by a factor of 1.8. Therefore this increase will be applied to the existing drainage fee schedule. However, the Subdivision Map Act requires that an increase in the drainage fee be based on the latest adopted MPD. Therefore, the following schedule applies the current fee structure to the new drainage districts as well as adjusts the current fees to account for inflation. GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doe 4 Table 2. Drainage Fee Schedule (Existing Schedule Adjusted for Inflation) New Old Drainage District(s) Existing Fee Adjusted Fee Drainage Per Acre Per Acre District 1 Santa Ana River/ H. B. Channel /Talbert Channel $7,000 $12,600 2 Wintersburg Channel / Downtown $5,500 $9,900 3 Wintersburg Channel / Downtown $5,500 $9,900 4 Wintersburg Channel / Downtown $5,500 $9,900 5 Huntington Harbour $5,500 $9,900 * Lowest district fee used Recommendation As all of the fee rates would be well below what could legally be applied, as shown in Table 1., and to ensure proper collection and a sense of common equity by those paying future fees, staff recommends that all districts be charged the same rate at a minimum of$12,600 per acre. 5 GAEngineering Division\Broussard\Storm Drain\Drainage Fee\Drainage Fee Study.doc NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REVISION TO DRAINAGE FEE Notice is hereby given that the City Council of the City of Huntington Beach will hold a public hearing in the Council Chambers of the Civic Center, 2000 Main Street, Huntington Beach at the hour of 6:00 p.m., or as soon thereafter as possible on June 5, 2006, for the purpose of considering revisions to the Drainage Fee. The proposed ordinance would modify Chapter 14.14 of the Huntington Beach Municipal Code. The proposed revised Fee would be imposed on property owners as a condition of development of their property, which results in an increase in runoff. A report detailing the reasons and methodology for the Drainage Fee will be available for public review at City Hall, 2000 Main Street in the City Clerk's office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday, beginning May 18, 2006. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the above proposals. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated City of Huntington Beach by: Joan Flynn, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone (714) 536-5227 DADocuments and Settings\esparzap\Local SettingsUemporary Internet Fi1es\0LK61E\Drainage Fee Notice.doc fir C 42�J�s ire a1� / Ap © 6 NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REVISION TO DRAINAGE FEE Notice is hereby given that the City Council of the City of Huntington Beach will hold a public hearing in the Council Chambers of the Civic Center, 2000 Main Street, Huntington Beach at the hour of 6:00 p.m., or as soon thereafter as possible on June 5, 2006, for the purpose of considering revisions to the Drainage Fee. The proposed ordinance would modify Chapter 14.14 of the Huntington Beach Municipal Code. The proposed revised Fee would be imposed on property owners as a condition of development of their property, which results in an increase in runoff. A report detailing the reasons and methodology for the Drainage Fee will be available for public review at City Hall, 2000 Main Street in the City Clerk's office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday, beginning May 18, 2006. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the above proposals. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated City of Huntington Beach by: Joan Flynn, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone (714) 536-5227 DADocuments and Settings\esparzap\Local SettingsUemporary Internet Files\OLK610Drainage Fee Notice.doc NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REVISION TO DRAINAGE FEE Notice is hereby given that the City Council of the City of Huntington Beach will hold a public hearing in the Council Chambers of the Civic Center, 2000 Main Street, Huntington Beach at the hour of 6:00 p.m., or as soon thereafter as possible on June 5, 2006, for the purpose of considering revisions to the Drainage Fee. The proposed Fee would be imposed on property owners as a condition of development of their property, which results in an increase in runoff. A report detailing the reasons and methodology for the Drainage Fee will be available for public review at City Hall, 2000 Main Street in the City Clerk's office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday, beginning May 18, 2006. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the above proposals. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated City of Huntington Beach by: Joan Flynn, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone (714) 536-5227 DADocuments and Settings\esparzap\Local Settings\Temporary Internet Fi1es\0LK61E\Drainage Fee Notice.doe NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REVISION TO DRAINAGE FEE Notice is hereby given that the City Council of the City of Huntington Beach will hold a public hearing in the Council Chambers of the Civic Center,2000 Main Street,Huntington Beach at the hour of 6:00 p.m., or as soon thereafter as possible on June 5, 2006, for the purpose of considering revisions to the Drainage Fee. The proposed Fee would be imposed on property owners as a condition of development of their property, which results in an increase in runoff. A report detailing the reasons and methodology for the Drainage Fee will be available for public review at City Hail, 2000 Main Street in the City Clerk's office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday,beginning May 18, 2006. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the above proposals. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated City of Huntington Beach by: Joan Flynn, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone(714) 536-5227 GAEngineering Division\Broussard\.Storm Drain\Drainage Fee Notice.doc %- Y,,,r-MA-/L — NOTICE OF PUBLIC HEARING CITY OF HUNTINGTON BEACH REVISION TO DRAINAGE FEE Notice is hereby given that the City Council of the City of Huntington Beach will hold a public hearing in the Council Chambers of the Civic Center, 2000 Main Street, Huntington Beach at the hour of 6:00 p.m., or as soon thereafter as possible on June 5, 2006, for the purpose of considering revisions to the Drainage Fee. The proposed Fee would be imposed on property owners as a condition of development of their property,which results in an increase in runoff. A report detailing the reasons and methodology for the Drainage Fee will be available for public review at City Hall, 2000 Main Street in the City Clerk's office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday,beginning May 18, 2006. All citizens are invited to attend the public hearing and provide the City Council with written and oral comments and ask questions concerning the above proposals. Written communications to the City Council may also be mailed to the City Clerk. The City of Huntington Beach endeavors to accommodate persons of handicapped status in the admission or access to, or treatment or employment in, City programs or activities. The City of Huntington Beach is an equal opportunity employer. Dated City of Huntington Beach by: Joan Flynn, City Clerk 2000 Main Street Huntington Beach, CA 92648 Telephone(714) 536-5227 GAEngineering Division\Broussard\Storm Drain\Drainage Fee Notice.doc CITY OF HUNTINGTON BEACH 2000 Main Street P . O . Box 190 Huntington Beach , CA 92648 LETTER OF TRANSMITTAL Fax (714) 374-1573 Attention: Joan Flynn Date: May 3, 2006 To: City Clerk's Once ProjectlC.C.No.: 2000 Main Street Regarding: Drainage Fee Huntington Beach, CA 92648 ❑ We are sending you: ❑ By Mail ❑ By Fax Mail(Number of pages including this sheet:) ® We are hand delivering: ❑ Attached ❑ Under a separate cover via the following items: ❑ Shop drawings ❑ Prints ❑ Plans ❑ Samples ❑ Specifications ❑ Copy of letter ❑ Change Order ® Other: Notice of Public Hearin Item# Copies Page's Description, 1 1 1 Notice of Public Hearin 2 3 4 5 These are transmitted as checked below: ❑ For approval ❑ Approved as submitted ❑ Resubmit copies for approval ® For your use ❑ Approved as noted ❑ Submit copies for distribution ® For your action ❑ Returned for corrections ❑ Return corrected prints ❑ For review/comment ❑ Other: Remarks: On June 5, 2006, the City Council will consider revising the Drainage Fee. Please find attached the Notice of Public Hearing to be published on May 18, and 25, 2006 pursuant to Gov. Code Sections 66018, 6062a as well as mailed by May 22, 2006 to all persons requesting notice pursuant to Gov. Code Section 66016. Also attached is the Report to be held by the City Clerk for public review. Please contact me at extension 5247 with any questions you may have or Leonie Mulvihill,the attorney assigned to this item, at extension 5620. By: Q,,,jj Todd Broussard, Principal Civil Engineer Cc: Leonie Mulvihill w/copy G:\ENGINEERING DIVISION\BROUSSAm\STORM DRAIN\TRANSTOCrrYCixRKDRAINAGEFEE.Doc PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) 1 am a Citizen of the United States and a U' WmMma Ar affy resident of the County aforesaid; 1 am nc REIN MTODRMEFEE Notice is,hereby given over the age of eighteen years, and not a that the,City Council of the City".of.Huntington party to or interested in the below entitled Beach will hold a pubic ;hearing in the .Council ,,Chambers of the Civic matter. I am a principal clerk of the -Zenter, 2000 Main HUNTINGTON BEACH INDEPENDENT, Street,t-Huntingtonr a newspaper of general circulation, F 6:0© p.m.' or as soon P P 9 Jurfe�a5, 2006, forlethe printed and published in the City of ',,purpose of considering `yrevisions to the Drainage Huntington Beach County of Orange fee. The proposed djfy , � Hance .would .mod'+fy. <.Chapter' 14.14 ;of, thee State of California, and that attached Muntmgton 'B�ach Mu Notice is a true and complete copy as 1-pospai Code. The would' posed revised Fee would' was tinted and published in the ,•� imposed on property P P _Ae elopment oofitithe r Huntington Beach issue of said Property, which unoff.' in an increase In runoff. .A report detailing the newspaper to wit the Issue(s) of: '.reasons and methodolo ..,gy for the Drainage Fee will be available for ub- 1ic review at City ,t2000 Main Street int� ',City Clerk's offtie be- tween the hours of 8:00, ;,,a.m.and 5:00p.m.Mon day through Fridayy, be MAY 18 25 2006 ginning May 18,2006. i v:: All citizens are invited to attend the pubiiq,, hearing and provide the City;Council'with written and oral comments and ask questions concern .ink the above,proposals Written cemmnniCations to the City Council may I declare, under penalty of perjury, that _also be mailed to the City Clerk, The City of Huntington the foregoing is true and correct. Beach`endeavors to ac- ,commodate persons of` '.,handicapped status. in Executed on MAY 25 2006 -4he admission access o, or tree#mentor ern ployment in, City•,pro grams or activities. The at Costa Mesa, California. :City of Huntington Beach is an equal'oppor tunity employer. Dated:May 18,2690 City of Huntington Beach by: Joan hym, City Clerk Signature ;, 2000MainStreet Huntington Beach,CA "J2648 Telephone (714)536-5221 Published Huntington Beach, Independent May 18,25,2006 062-292 PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) N071cfOFc eF I am a Citizen of the United States and a MMMMBUCH UMTOOMMU resident of the County aforesaid; I am Notice is hereby given othat the City,Council of over the age of eighteen years and not a the City of Huntington the will hold a public 'Ahearing in the Council party to or interested in the below entitled ,Chambers of the Civic :,center„" 2000 Main matter. I am a principal clerk of the Street, Huntington HUNTINGTON BEACH INDEPENDENT, G:00 m.;Bea° . or, h°us of % as coon thereafter as possible on a newspaper of general circulation, pure 5, of c for the ..purpose of considering printed and published in the City of 'rems to the Frogs :FeeeSi. The:proposea d ordi- nance would modify Huntington Beach, County of Orange, 7Chapter 14.14 of the State of California, and that attached Huntington Beach - nicipat-Code. The.proro- posed revised Fee would be imposed on property Notice is a true and complete copy as " owners as a condition of was printed and published in the 'prop rty,w of their P 'property, which results Huntington Beach ISSUe of said ,,in an increase'in runoff. A report detailing"the reasons and methodolo- newspaper to wit the Issue(s) of: gy for the Drainage Fee +wilt be available for pub .Aic review at City Hail, ,2000 Main in the �,Gity Clerk's office ire dween'the hours of 8:00 a.m.`and 5:00`p.m.Mon +day through Friday, be ginning May 18,2006. MAY 18,25,2006 to Ilatt na Sthe �publiic hearing and provide the City Council with written` and oral comments and ask -questions concern-. ;ing the above:proposals. IWritten communications "to the City Council may also be mailed to the I declare f under penalty of penury, that City Clerk.,' The City of Huntington the foregoing is true and correct. Reach endeavors commodate persons of ;(handicapped status in. -the admission or access' to, or treatment or`em Executed on MAY 25 A,2006 grrarnsaor in, pro- Executed City of Huntington' at Costa Mesa, California. .8.each is an equal oppor- tunity employer., Dated:May 18,2006 City of Huntington ,,Beach by: JoanFlynn­ City Clerk. 2000 Main Street Signature Huntington Beach,CA', "92648 Telephone (714)536-5227 Published Huntington Beach Independent Ma 18,25,2006', . 052-29 j Lugar, Robin From: Flynn, Joan �� ; -- Sent: Tuesday, May 30, 2006 7:41 PM �1 - To: Beardsley, Robert; Lugar, Robin Subject: Re: 6/5/2006 Agenda Item D-1 Drainage Master Plan Fees Ok -- Joan -----Original Message----- From: Beardsley, Robert To: Flynn, Joan CC: Bazant, Denise; Greene, Joyce; Emery, Paul; Webb, David; Broussard, Todd; Culbreth- Graft, Penelope; Lugar, Robin Sent: Tue May 30 19:27:27 2006 Subject: RE: 6/5/2006 Agenda Item D-1- Drainage Master Plan Fees Yes, since it is a noticed hearing, we will have to keep it visible. I'm okay with the "date uncertain" as we won't know when it will be ready depending on the time we can set with the Chamber. -----Original Message----- From: Flynn, Joan Sent: Tuesday, May 30, 2006 7:19 PM To: Beardsley, Robert; Culbreth-Graft, Penelope; Lugar, Robin Cc: Bazant, Denise; Greene, Joyce; Emery, Paul; Webb, David; Broussard, Todd Subject: Re: 6/5/2006 Agenda Item D-1- Drainage Master Plan Fees Thank you Bob for the heads up. Robin Lugar will pull it from the agenda tomorrow. Since it was noticed, I believe we will leave a place holder with an item description and the bolded words "pulled from the agenda to be renoticed and reagendized to a date uncertain" -- does anyone have a problem with that wording? -----Original Message----- From: Beardsley, Robert To: Culbreth-Graft, Penelope CC: Bazant, Denise; Greene, Joyce; Emery, Paul; Webb, David; Broussard, Todd; Flynn, Joan Sent: Tue May 30 19:09:22 2006 Subject: 6/5/2006 Agenda Item D-1- Drainage Master Plan Fees Penny: I confirmed that this item has not been reviewed with the Chamber and I agree that this would be a matter of significant interest. We will make contact with Joyce Riddell and advise her of the item. I anticipate that the Chamber Development Committee will want a briefing and, so, I will be pulling this item for further review and readvertise the hearing when the item is ready for Council consideration. Bob 1 ,� CITY OF HUNTINGTON BEACH 2000 Main Street ♦ PO Box 190 ♦ CA 92648 Robert F. Beardsley, PE Department of Public Works Director (714) 536-5431 2005 DRAINAGE FEE STUDY Executive Summary The City of Huntington Beach recently completed an update to its Master Plan of Drainage (MPD) as part of the Citywide Urban Runoff Management Plan. The MPD has identified numerous capacity enhancements within the existing drainage system, which is estimated to cost approximately $120 million to meet the established 100-year storm criteria. An additional $121 million has also been identified to provide enhancements to meet other established "convenience" criteria. The City's only dedicated fund for drainage improvements is through collection of a drainage fee, which is assessed to development projects. As such, the current fee structure, which was adopted in 1985, is based on the total cost of drainage improvements within the drainage district, divided by the remaining developable area within that district. This study analyzes the fee structure necessary to implement the drainage improvements as identified in the recent MPD. Due to the estimated costs involved, compared to the remaining developable area left in the city, this fee would cause an undue burden on any future development. Therefore, until such time that an alternative funding source can be identified, staff recommends that the current fee structure be utilized with inflation adjustments to reflect the increase in the cost of construction. Since the adjusted fee is well below the legally permissible fee, a single fee of $12,600 per acre is recommended. Existing Drainage Fee The 1979 MPD was used to identify drainage enhancements and associated costs, which totaled approximately $28 million at the time. The current drainage fees were established and adjusted by Resolution #5578, which was adopted in 1985 and is outlined below: Drainage District Fee per Acre Huntington Harbor $5,500 Wintersburg Channel $5,500 Talbert Channel $7,000 Downtown $6,000 Huntington Beach Channel $7,000 Santa Ana River $9,000 1 GAEngineering Division\Broussard\Storm Drain\SDMP\Drainage Fee Study.doc Drainage Fee Based on 2005 MPD The City completed an updated MPD earlier this year. The MPD delineated the city into 5 drainage districts, (Figure 1) and identified the cost of capacity enhancements into two basic categories (Figure 2). The first category, identified enhancements related to flood protection against a 100-year storm event. The cost of drainage improvements to achieve those criteria is approximately $120 million. The second category identified enhancements where "convenience" criteria, which were established for lesser storm events, were exceeded. The additional cost to meet the second criteria was estimated at approximately $121 million. MOWi11g RBQIOfl6 l i �r N vR� 0 1 2 Miles J. Figure 1. 2005 MPD Drainage Districts 2 GAEngineering Division\Broussard\Storm Drain\SDMP\Drainage Fee Study.doc Table 4-9A City of Huntington Beach Drainage Master Plan Candidate System Upgrade Projects January 2005 CMP and CS REPLACEMENT Pipe RC13 Project ID Watershed Upstream Node Downstream Length Diameter or Culvert Q-Flow Cost, Rounded to Size Length No. No. Number Node Number (feet) RCB Culvert Width (cfs)(') 1,000s (feet) (feet) Year Constructed Height(feet) (feet) PROJECT • 1.Total Length&Cost for all Major Drainage Watershed 211,911 $120,157,000 Planning Areas Q100 Only 2.Total Length&Cost for all Major Drainage Watershed 440,346 $206,849,000 Planning Areas 3. Half-round Facilities Improvements $2,300,000 4.Storm Water Pump Station Rehabilitation/Replacement $32,500,000 Total Costs for all Upgrade Projects(Items 2+3+4) $241,649,000 Figure 2. Table 4-9A from 2005 MPD 3 GAEngineering Division\Broussard\Storm Drain\SDMP\Drainage Fee Study.doc The following fee schedule was determined based on the cost to meet the established criteria: Table 1. Drainage Fee Schedule (Based on 2005 MPD) Drainage Undeveloped Flood Total Fee Based on Fee Based on District Area Improvement Improvement Qioo Protection Total Cost (Acres) Cost Cost Per Acre Per Acre 1 100 $61,000,000 $125,000,000 $610,000 $1,250,000 2 3 $21,000,000 $30,000,000 $7,000,000 $10,000,000 3 18 $21,000,000 $36,000,000 $1,666,667 $2,000,000 4 2 $8,000,000 $25,000,000 $4,000,000 $12,500,000 5 10 $9,000,000 $25,000,000 $900,000 $2,500,000 Total 133 $120,000,000 $241,000,000 As evidence by the above fee structure, to adjust the fee to reflect the actual cost to fund the drainage improvements as compared to the remaining developable acreage in the city would place an undue burden on future development. Therefore until such time that an alternative citywide funding source can be identified to fund these improvements, staff recommends adjusting the existing fee structure to a palatable level, but at a minimum, to account for the increase in the cost of construction since the fee was adopted in 1985. Proposed Drainage Fee A comparison of the Engineering News Record (ENR) construction cost index (CCI) is used to adjust the existing fee structure as shown: Year CCI 1985 4195 2006 7692 The cost of construction has increased by a factor of 1.8. Therefore this increase will be applied to the existing drainage fee schedule. However, the Subdivision Map Act requires that an increase in the drainage fee be based on the latest adopted MPD. Therefore, the following schedule applies the current fee structure to the new drainage districts as well as adjusts the current fees to account for inflation. 4 GAEngineering Division\Broussard\Storm Drain\SDMP\Drainage Fee Study.doc Table 2. Drainage Fee Schedule (Existing Schedule Adjusted for Inflation) New Old Drainage District(s) Existing Fee Adjusted Fee Drainage Per Acre Per Acre District 1 Santa Ana River/ H. B. Channel /Talbert Channel $7,000 $12,600 2 Wintersburg Channel / Downtown $5,500 $9,900 3 Wintersburg Channel / Downtown $5,500 $9,900 4 Wintersburg Channel/ Downtown $5,500 $9,900 5 Huntington Harbour $5,500 $9,900 * Lowest district fee used Recommendation As all of the fee rates would be well below what could legally be applied, as shown in Table 1., and to ensure proper collection and a sense of common equity by those paying future fees, staff recommends that all districts be charged the same rate at a minimum of$12,600 per acre. 5 GAEngineering Division\Broussard\Stonn Drain\SDMP\Drainage Fee Study.doc PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) f NOME OF KW HEARING I am a Citizen of the United States and a °TY'OFHUNTINOTON BMW resident of the County aforesaid; 1 am REVISIOHTO$RMMFEE Notice is hereby,given over the age of eighteen years, and not a thaf the City Council of the City of Huntington party to or interested in the below entitled Beach will hold a public hearing in the Council Chambers`;of the'r*ivic matter. I am a principal _.clerk of the Center, 2000 Mai HUNTINGTON BEACH INDEPENDENT, Street,t Huntingtone hour of 6:00 p.m., or as 'soon a newspaper of general circulation, tF�ereafter as possiblel on August 7, 2006, for printed and published in the City of the purpose of consid- ering revisions to the Huntington Beach County of Orange Drainage Fee. The_°`° posed Fee would be im State of California, and that attached posed °npropditi own- ers as a- conddion of Notice is a true and complete copy as development of their property,;which results I in an increase in runoff. was printed and published in the A report detailing the reasons and method6to- Huntington Beach issue of Said will for availathe ble free. will be available for pub- lid review at City Hall, newspaper to wit the Issue(s) of: 2000 Main Street in the City Clerk's office be- tween the hours of 8.100'' a.m.and 5:00 p.m."Mon- day through Friday;be- ginning July 27,2006: All citizens are invited' to attend the public JULY 2712006 hearing and provide the City Council with writ AUGUST 0 3� 2 O 0 6 ten and oral comments and ask questions con- cerning the 'above pro- posals. Written commu- nications to the City' Council ,may also be mailed to the City Clerk. The City of Huntington declare, under penalty of e u that commeach endeavors n of }�' ry ,n� ac- commodate persons of h `� d J r , handicapped status in the foregoing is true and correct. the admission or access to, or treatment or em- ployment in, City pro- grams or,actiyities,.The City of Huntiiigtori Beach is am equal op Executed on AUGUST 0 3, 2 O 0 6 portunity employer. at-Costa Mesa Califiornia. 2006 Dated July City of Huntington on Beach � by:Joan Flynn, ^. City Clerk, 20MMain Street Huntington Beach,CA 92 Telephone(7114)5, 5 / Published Huntington Signature Beach Independent, my :7 27,August 3,2006 074-488 PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) N�OTI(f AF F'II�K HEARING I am a Citizen of the United States and a WYOFNMSTON". resident of the County aforesaid; I am . ..TOWAGEF. over the age of eighteen years, and not a Notice hereby given that the I y Council'.of party to or interested in the below entitled the City Huntington Beach will hold,a public hearing in the Council - matter. I am a principal -clerk of the Chambers of the Civic _ HUNTINGTON BEACH INDEPENDENT, St eet, 'Huntington Beach ;,ab the. hour-of a newspaper of general circulation, 6:oD p.m:,,Ior as soon thereafter as- possible printed and published in the City of th August 7, co for he purpose off consid- - ering revisions to the Huntington Beach, County of Orange, Drainage Fee. The pro- State of California, and that attached posed Fee would be i n- posed on property own- ers as a condition 1of Notice is a true and complete copy as development of their property, which results was printed and published in the in an increase in runoff. ,A report detailing the' reasons and methodolo= Huntington Beach Issue of said q for the Drainage'Fee will be available for pub- newspaper to wit the Issue(s) of: lic-revidw, of City Hall, 2000 Main Street in the City Clerk s'office be- tween the hours of 8.00, a.m.and>5:00,p.m.Mon- day through Friday,'be- ginning July27,2006. All citizens are invited JULY 2 7, 2 0 0 6 to attend the public hearing and provide the .City Council with writ- AUGUST 0 3 r 2 0 0 6 ten and oral comments and ask,questions con-' cerning the above pro- posals. Written commu- nications` to the City 1 Council may, also ,be mailed to'the,City Clerk. The City of Huntington I declare, under penalty of perjury, that commodateapersons of handicapped status in the foregoing is true and correct. the admission or access to, or treatment or em ployment in, City pro- grams or activities.;The City -of Huntington' Executed on AUGUST 0 3,2 0 0 6 Beach is an equal op- portunity Dated July 27,2006 at-Costa Mesa, California. City of Huntington Beach by:Joan Flynn, City Clerk 2000.Main Street..r Huntington Beach,CA 92648 -5227 PUillishedhone( Hunnting Signature Beach Independent July 27,August 3,2006 074-488