SR-8-E (34)i'
EPWM CP JM BR SWENT WPD
Cout~cil Meeting July 11, 1995
TO
FROM
SUBJECT
Mayor and Crty Council
C~ty Staff
. r
JUL ~ ~ ~
Santa Monica, Califonua
Introduct~on and First Reading af an Ordinance to Establish a Stormwater
Management Enterprise Fund and Approve a Stormw~ter Management User Fee
INTRODUCTION
This report recammends that the Crty Council ~ntroduce for first readmg an ordinance to estabhsh
a Stormwater Managemen# Enterprise Fund and apprave a Stormwater Management User Fee ta be
jer~ied on aIl parcels v~thtn the C~ty This enterpnse wauld create an equitable and reliable fundmg
source for cntical stormwater management actzv~ties and expanded pollution prevention programs
through the establishment of a user fee based on land use and parcel size The underlying pnnciple
for this method of allocating stormwater costs is that each parcel of real property withtn the C~ty's
boundary uses the storm drain system and costs are le~ied in direct proportion to the amount of
runoff generated The 1995-96 Stormwater Management User Fee wauld be $1 51/month for single
fam~ly (and multiple thereof for multi-farruly and cornrnercial properties) and would be billed by the
Los Angeles County Tax Assessor on the 1995-96 property ta~c bilL
BACKGROUND
Urban Runoff contaminated unth pe#roleum products, pesticides, cherrucals, hea~y metals, animal
droppings and garbage poses a severe threat to the econom~c, recreational and biological resources
of the Crty of Santa Moruca arsd is the larges~ source of pollution to the Santa Momca Bay The City
has lang been committed to local and regional actions to improve the condit~on af the Bay and protect
the health and safety of the mi~~~ons of res~dents and v2sitors who enjoy Santa Mon~ca's reno~vned
beaches and ocean front each year This comm~tment has been demanstrated over the past decade
by a number of innavative cost -effective programs and palicies aimed at reducing the volume and
toxac~ty of urban runoff 5torrnwater management and pollution prevent~on activities are expected
~
~.~
~~~ ~ ~ ~ ~
to became s~gnificantly mora urgent over the next few years due to implementation of the Federally
mandated 19R5 National Po~~ut~on Discharge E~irr~nation System {NPDES) permrt, the recent~y
approved Santa Monica Bay Restaration Plan and continuecl enf'arcement and monitor~ng of the Crty's
Urban RunoffPallut~on Preventian Ordinance Some of the innovative pro~ects which are m process
mciude
^ Urban runoff low-flow treatment fa.cility
^ Fuel spill detectian system
^ Enforcement of the Urbat~ Runoff Pollution Ordinance
^ An aggressive ca#ch-basin cleaning program
^ Used Oil Recyclmg
^ Household Ha.zardous Waste Collection
^ Extensive public education and outreach effarts
^ S~orm Drain Master Plan
^ Illicit discharge preventson
The proven effectrveness af these starmwater management programs is evidenced by improved
conditions in the Bay Based on Heal the Bay's annual report card which grades storm drain out falls,
the Pico-Kenter outfall ha.s improved fram an F to B and C grades over the past four years
However, without an adec~uate and reliable source of fund~ng for these efforts, such as the
Stormvvater Management User Fee proposed in this repoR, the City of Santa Moruea will not be ab~e
to continue its current pragram activities beyond FY I995-96
CURRENT FUNDING FOR STORMWATER PRQGRAMS
These esseat~al stormwater management activities have ~istor~cally k~een financed pr~manly by the
Wastewater Enterprise Fund, wlvch ~s supported by bimonthly serv~ce charges on the ut~l~ty b~lls of
water customers in the City It is estimated that approximately $1 2 million of Wastewater fund
re~enues would be needed aru3ually to cover the casts of stormwater management activities over the
next 4 years Funding these stormwater management costs through wastewater revenues is no longer
2
recommended for the followmg reasons
Equity -- Wastewater b~lls are based on a custamer's water usage rather than amount of
runoffgenerated by a given parcel of land, therefore the amount paid does not reflect the level
of use and the benefits recerved from the stormwater system by the property owner Under
this system, wa~er customers are subsidizing the costs of stortnwater management far large
properties For exampie, parcels with large impervious a.reas, such as the Asrport, are
respansible far a much ~nore significant partion of stonn runoff than ~s reflected by the-r
proportionate water usage
Retiability o~'Revenue -- State and Federal regula#ions require that the City's wastewater
raxes be stnctly tied to the operations and ca~ital costs far the sewer system only Because
of this, the State Water Resources Control Board strangly discourages funding the Ciry's
stormwater activities frorri the wastewater rates
Over the past two years, staff' have investigated various alternatives for stormwater management
financing in order to ensure adequate re~enues to continue and exgand the City's stormwater
poliut~on control efforts It has been concluded that the creation of a stormwater enterpnse fund is
the best method available to allocate costs fairly and to prov~de rehable funding
BENEFITS UF ESTABLISHING A STOR1b~WATER ENTERPRTSE
A stormwater enteipnse would allocate the costs of stormwater management by creatmg a citywide
Starmwater Management User Fee based on the size and land use of each parcel in the City This
method af financing offers importar~t benef~ts to the Santa Monica communrty
(1) Pollution Control Enhancements -- Critica! stormwater pollution control efforts wh~ch are
now ut the planrung stages will not be unplementED without a new source of fi~ndic-g These
efforts irzclude the proposed c~ry weatl~er flow treatment facility, the intenm diversion of flaws
from the P~er storm drau~ to the sewer system, Enhanced catch basm and street cleaning, anci
3
monitoring and enforcement of the Grty's Urban Runoff 4rdinance These programs are all
necessary to achie~e the gvals and targets of the Council adopted Sustainable Crty Prograrn
(2) Environmental Benefts -- The Crty needs to insure lang-term fina~cing in order ta
~mplement v~tal multi-agency and regional Santa Monica Bay clean-up and protect~on
programs {NPDES and the Santa Monica Bay Restarat~on Pra~ect)
(3) Strengthened Starmwater Program Coordination -- The praposed stormwater management
fee wili allow staff to focus the City's efforts and ensure cans~stent levels of inter-agency
cooperation on pressing stormwater issues
{4) Econornic Benefrts -- The Crty's tourism economy, which accounts for nearly 5,000 jobs and
$300 million in annual visitor spending, is ciependent on a posrtive public image of Santa
Monica beaches resulting from an effectrve stormwater management program The Crty of
L A estimates a 50% decrease in beach attendance from 1983-1993 due to fear of beach
pollution The program enhancements which will be made possible by the stormwater fee
should help re~erse this trend
(5) Flood Contrnl System Improvernent~ -- In order ta provide for the safety of residents of the
City and to pratect property from flood damage, on-gomg maintenance and improvements
to the storm drainage system are necessary and ~nust be adequately funded
(6) Improved Accountability -- Assignmg all stormwater management costs ta the new
Stormwater Enterprise Fund will enhance the ability to track goals and ob~ectives and to
analyze cost effectiveness of the City's stormwater management programs
TFIE ESTABLISHMENT OF A STQRIITWATER ENTERPRTSE
In a report prepared by Kennedy/Jenks ConsuItants in 1994, var~o~s alternati~es retated ta the
development of a funding source for storrnwater activities were evaluated BasEd on this re~iew,
4
Kennedy/Jenks recommended that the Crty establish a stormwa#er enterprise to operate, maintain and
fund the City's storm drain system and create a Stormwater Water Management User Fee to finance
costs related ta stormwater rnanagement Additianally, Ker~edy/Jenks reviewed mechaxusms for
collect~ng revenue for the enterpnse and concluded that the user charge could be most e~'icientiy
collected through the L A County Tax Assessor, bath because the City would not ha~e to create a
new bill~ng system based on parcel owners~~p (rather than water customers), and because the
collection system which is already in place for unpaid parcel charges is well established and effective
Murucipahties are autharized under the Califarnia Health and Safety Code, Section 5471 to colle~t
fees for storm drainage services and facili#ies Fees for storm dratnage improvements and the
aperation and maintenance thereof are alsa authorized under California Government Code SECTION
54300 et seq {State Revenue Bond Law of 1941) Usmg this generaF authority, the cit~es of Los
Angeles, Santa Clarrta, Berkeley, Ontar~o, Hayward, Madesto, Monterey, Palo Alto, Sacramento,
Santa Cruz and San Jose I~ave established stormwater management charges
This fee can be established by the adoption of an ord~nance approved by two thirds af the Crty
Council A 5tormwater Parcel Report descnbing the affected parcels and specific costs must be
approved by the CQUnc~l pnor to being subriutted to the County for annual billmg Initial notification
requirements mclude mailing a notice of intent to all property owners who will be affected by the
Stormwater Management Fee followed by a public heanng Once established, the City would be
requued annually ta publish a notice and to approve an annual Stormwater Parcel Report
Stormwater enterprise custamers are charged for serv~ces pro~ided by the enterpnse and pay rates
base~ an an established schedule As a enterprise fisnction of the City, the stormwater enterprise fund
is subjec# to stnct aud~t requirements by State Code and can only be expended for stormwater related
purposes Approved actrvrt~es include operations and ma~ntenance, capitai improvements, and
regt~tatory compliance
5
CURRENT STORMWATER MANAGEMENT BUDGET
The City's stormwater management program consists of operations and maintenance to the City-
awned starmwater system, compliance with Federal, State and lacal regulations, including
ins~ections, monitonng and enforcemerrt, implementation of the Santa Monica Bay Restoration Plan,
cap~tal impravemer~t pro~ects such as the P~co-Kenter/Pier low-flow treatment plant and the fuel spill
detection system, and an extensive public education and outreach effort While the Los Angeles
County Public Works Department maintains and operates a significant portion of the storm dra~n
system wrthui Santa Mosuca, the City is responsible for the qualrty of the runoff reaching the dramage
system and for the operation and maintenance of 824 catch basins and 20 miles of storm drains
A bnef descnption of proposed stormwater management programs by division is listed below in Table
1 The total stormwater management budget for FY 1995-9b is $1,097,237, with the FY 1996-97
budget pro~ected to ~ncrease to $1,223,478 to aliow for implementat~on of the various enhancements
descnbed previously A pro~ected 5-year stormwater budget ~s detaiied as Attachment A
Table 1. SITI~ZMARY OF STORI«WATER PROGRAMS BY DIVISIdN
Tatal Costs FY 1995/96 ~1.097.322
DIVISION Operations Budget STORI~~WATER PRdGRAMS
Bud et Percent
Wastewater Division $515,496 47% s~~wat~r coo~~cor, sto~ dr~~
maintenance, Industnal Pretreatment Program,
NPDES enforcement and momtonng, Catch
basm cleanuig, Illicit discharge prevenuon,
Street sw m (fund transfer}
Eng~neeTli~g $ 54,079 S% 1~e~r- of Urban nuiot~mmgat~on plans,
DivtSiOri Storm Dram Master Plan, Catch Basm F'~lot
Program, Replacmg a~d upgrading stormwater
fac~lit~es, Design of stormvvater capitaI
ects, ~ncludm trestment fac~hbes
En~ironmental $17b,747 16°10 ~~~c EducaUon and Outresch, Household
Division Hazardous Waste, Small Business Waste,
Used Oil Recychng, Po~lut~on Prevent~on
Pro~rams and Sustauiable C~ty Pro~ram
Capital $350,400 32% Storm Dra~n Connector Pzpes, P~co-
Improvements Kenter/P-er I,ow Flow• Treaanent Fac~lm~ and
P~co-Kenter Pollut~on Sensor S~~stem
Enhancements
6
PROPOSED BILLING STRUCTURE
Under the proposed plan, stormwater revenue requirements would be distnhuted ta the users of the
stormwater system based on the Qarcel size and a runoff factor, reIated to the a~erage pervious to
impen+ious ratio for various land uses Tlus methodolagy zs a common approach ~n allacatmg
stormwater costs because it distributes costs in d~-ect propartion to the amount of runoff into the
stormwater system frorn each parcei Tl~is rnethodology has been used by the L A County F1ood
Control Distnct since I979
Tt~e propased billing rate is based on a standard Basrc Measurement Unrt (BMIJ) which is the
proportionate ninoff from the average smgle fartuly residential pazcel A BMU is equal to 0 4637,
which is the product of multiplying an average single family parcel, which has an area af 0 1526 acres
(6,650 square feet) by the residential runoff factor af 0 4176 The number of Parce~ Billing Units
(PBUs) for a particutar parcel, except for single-family residential, is determined by the foliawmg
formula
Number of PBUs = Parcei S~ze in Acres x Land Use Runoff Coeffic~ent
Basic Measurement Unit [(0 152b x ~ 4176} = Ob37]
Single fanuly res~dences would be billed one PBU, regardless of size
The Basic Fee per PBU is determined by the total number of PBUs in the City di~ided by the
stormwater management b~dget The basic fee for the first year of operation will be based on the
Pro~ected Stormwater Management budget for i996-97 Div~ding the FY 199b-97 budget of
$1,223,478 by 33,792 74, the total number of PBUs in the City, results m a Basic Fee of
$3 02/month
In order to insure a smooth #~-ansition from the previous funding methad to the praposed Stormwater
Mar~agerr~ent User Fee, staff recornmends phasing ~n the Starmwater Management User Fee over a
twa year period Using this approach, only half of the stormwater budget would be reco~ered in the
first year {FY 1995-96), with a corresponding Basic Fee pf $1 S llmonth Dur'sng I995-96, therefore,
7
stormwater management costs will continue to be borne by the Wastewater Fund A sumrnary of
estimated monthly costs per land use for pn~ately owned properry is provided in Table 2
Table 2. Estirnated Monthly Costs of Stormwater Management User Fee
Land Use Acreage Na. Parcels PBUs Avg Monthly Cost/Parcel
FY 95-9b FY 96-97
Smgle Family 1,295 6,609 fi,609 $ 1 51 $ 3 42
Condo {per un~t} 191 7,251 2,449 $ 0 S l $ 1 02
Multi-Familp 825 4,329 9,~88 $ 3 34 $ 6 69
Commerc~al 794 2,188 9,~ 10 $ 6 56 $13 12
It is impartant to note that the actual impact of ttvs charge would he partially offset by the elimination
from the T~ Assessment bill of the per parcel water stand-by charge of $13 previously assessed by
the Metropol~tan Water District As an efficiency and equity measure, the City's Water Fund will be
absorbmg this charge at an annual savings to property owners of about $IS0,000 Accaunt~ng for
tlus annual $13 ($1 OS/month) reductio~, the net impact of the proposed Stormwater Management
User Fee in the first year will actually he $0 43lmonth for a smgle fam~ly house, and in FY 1996-97
would be $ 1 94/month
DISTRIBUTION OF STORMWATER COSTS
The d~stnbutton of eosts for the F'Y 1996-97 stormwater management budget among various land
use classifications is as follows
8
Distribution o~ Cost by Land Use
Corn~ Iri ~: ='
23 •
~ '
.-
r
~
t''~.
.{,. -
S r
5~
~
.~
Mul~-Fam
28°/a
Condo
796
~-Fa m
>~o~
Non-City gavernmental (such at the Sc~ool Districts, State and County) parcels are not authorized
to pay the pQrt~an of the budget attributed to proposed capital expenditures, therefore the annual fee
these parcels pay wi~l be reduced by 38% A breakdown of costs by Iand use is detailed in
Attachment B
COI~ZPARISUN OF STQRMWATER FEES IN UTHER CALIFORNIA CIT~ES
Municipal entities throughout the country and the State of Califorrua have established enterpnses to
fund stormwater management A survey of Cal~fornia citles which have taken a leadership role by
estab~is}ung ded~cated fund~ng for stormwater programs is surnmarized in Table 3 The average
monthly stormwater enterpr~se charge is $3 56 for a single fam;ly parcel Many of these cities are
currendy considenng increases to thesE charges to respand to heightened operational and regulatary
demands
Public Use
1796
9
- ~~... r
' "• ~
. ~..
- . ' +.
Table 3. SUMMARY OF SINGLE FAMILY STORMWATER FEES IN CALIFORNIA
Ci Year Authorized Av Monthl Rate
Sacrarnento 1982 $10 46
Palo Aito 1990 $ 4 OS
Berkeley 1991 $ 4 17
Sar~ Jose 197b $ 3 75
Modesto 1992 $ 3 4D
Santa Monica (proposed) 1995 $ 3.02
Hayward 1992 $ 2 40
Santa Claryta 1494 $ 2 00
L~s Angeles 199U $ 1 92
Monterey 1994 $ 1 74
Santa Cruz 1994 $ 1 51
Avera e(excl Santa Monica} $ 3 56
BUDGET/FISCAL IMPACT
The propased Stormwater Enterprise Qperations would be orga~za~onally located in the Was~ewater
Divtsion, with reimbursement fvr all ehgible stormwater prograrn costs paid by the Starmwater Fund
via inter-fimd transfer Revenues from stormwater fees co~lected by the L A County Tax Assessor's
bi~ing system wauid r-ot be received until the latter half af the fiscal year Therefore, ~t ~s proposed
that the stormwater enterprise cvntinue to be funded via the Wastewater Fund through 7une 34, 1996,
and that the stormwater charges collected dunng FY 1995-96 be applied ta finance the stormwater
enterprise starting in FY 1496-97 The tatal revenue estimate from the proposed fee in FY 1995-96
is $ b11,739 This revenue will he received in revenne account number 34-500-661-00000-0550-
10040
10
CEQA STATUS
The parcel fee is not subject to CEQA review smce it is not a project pursuant to 14 Cal Code Reg
Section-15378
CONCLUSION
Creat~on of a Stormwater Enterprise will ensure rehable and equitable funding for critical starmwater
rnanagement and beach/ocean pollution control activities, inciuding significant expansion of e~cisting
programs and implementation new programs/efforts over the ne~ few years
RECOMNiENDATION
It is recommended that
1) C~ty Council urtroduce for first readmg an ordinance to estabhsh a Stormwater Managerrient
Enterprise Fund and approve a Storn~water Management User Fee, and
2) Establish a new revenue aceount number 34-500-b61-40000-OSSD-10000 with a FY 1995-96
budget of $ 611,739
Prepared by Craig Perkins, Director En~ironmental and Pub~ic Works Management Department
7oh~ Mundy, Utilrties Manager
Bill~ Romam, Semor Adm~rvstrative Analyst
Attachments Attachment A-Stormwater Management Budget 5-Year Pro~ection
Attachrnent B-Estirnated Costs for Stormwater Management
Ordinance
11
Attachment A
STORMWATER MANAGEMENT BUDGET
5-YEAR PROJECTION
All pro~ect~ons are inflated at 3 5%
USE OF FUNDS FY 1995196 FY 1996197 FY 1997198 FY 799$199 FY 7999/2000
Operat~ons & Ma~ntenance
Labor {7} 440,957 47$,035 497,099 52fi,779 545,216
S~pplies and Expense {2] 258,776 267,833 277,207 28fi,9d9 298,95~
Cap~talOutlay 28,078 29,Qfi1 30,~78 31,131 32,220
Bdl~nglCvllect IBac! Debt [31 19,511 6,400 6,624 6,856 7,b96
Admm indirect 14) Q 0 93,305 96,571 99,95]
Total O&M Expe~ses 5747,322 5773,478 5804,550 5828,569 5857,569
Cap~tal Impro~ements
Low-Flaw Treatment Facility S 1 50,000 $25D,000 $200,OOQ S20Q,000
Storm Drain Connector P~pes 5200,fl00 510~,Q00 S 100,000 OQ $100,000 OQ $ i 00,000 00
Other S10D,000 $100,000 S100,004 5300,000
Total CIP 5350,000 5450,000 5400,000 5400,000 5400,OD0
TOTAL BUDGE~ 51,097,322 $1,223,478 51,204,55Q 51,22$,569 51,257,569
(1 M Labor FTE's may vary from year to year
(2} I~cludes Inter-fund transfers to Street Sweep~ng, Beach Mainter+ance and Water Div~sion
(3} I~cludes S10,D00 set up fee to LA County
(41 Admin Indirect is undetermined #or the first two years of operation
Attachment B
ESTIMATED COSTS FOR STORMWATER MANAGEMENT
Based on PBU = 0637 {oer LA Countv F1ood Contralf
Land Use Number of Runoff Tota! Avg Monthly
Descript~on Acreage Parcels Factor PBUs Cost Cost/Parcel
SM C~ty Owned
AErport 202 57 6 varGes 2798 5107,303
CARS 105 8B 33 ~aries 361 S~ 3,D70
Resource Mgmt 13 11 10 varies 169 $6,119
Fire Department 1.16 4 0 8409 15 5543
City Yard 90 43 ~aries 735 52fi,611
Transportation 912 8 0.9086 130 54,707
Library 2 25 4 0 8194 29 S 1,050
SM College Distnct 37 2 2 0 4733 27fi 59,993
SMUSD 79 33 15 0 8194 1 Q20 536,929
LA County 5 24 3 ~ar~es 54 Ofi053 $1,957
State of Cal~forn~a 2 6 1 0 9086 37 02645 S 1,341
U S Go~'t 0.86 1 D 9486 12 24828 5443
5ubtotai 549 3 130 5636 3353 5204,Ofi6
Residential
Single Family 1,294 52 6,609 0 4176 6,609 00 5239,2$1 S3 02
Condo/unit 191 26 7,251 0 8194 2,449 80 588,696 S1 02
Multi-Fam~ly $24 69 4,329 vanes 9,587 70 5347,126 S6 68
Commerc~al 5fi3 52 1,707 ~ar~es 6,898 52 S249,783 S12 19
IndustrEal 147 55 322 ~aries 1,742 79 $63,098 516 33
~ecreational 23 31 34 vanes 211 78 S7,6fi8 $18 79
Inst~t~utionai 59 85 125 vanes 656 81 523,780 $15 85
Subtotal 3,104 7p 20,377 00 28,156 4Q 51,019,412
Total 3,654.00 Z0,5a~ o0 33,792 74 57.223,478
Budget FY 1998-97 S 1,223,478
f:\atty\muni\laws~mjm~starm2
City Gouncil Meeting 7-11-95 Santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL ~F THE CITY OF
SANTA MONICA ADDING CHAPTER 7.56 TO THE SANTA
MONICA MUNICIPAL C~DE TO ESTABLISH THE CITY~S
STaRM DRAINAGE SYSTEM AS A CITY UTiLITY AND
ENTERFRISE, A STORMWATER MANAGEMENT FEE
AND A STORMWATER ENTERPRISE FUND
WHEREAS, the City af Santa Monica regulates the quality of
stormwater runoff that enters the City's storm drainage system,
operates and maintains 20 miles of storm drains and 824 catch
basins, and enfarces and implements local, state and federa~
stormwater regulations including the City's Urban Runoff Pollution
Control ordinanee and the Federal Natianal Pallution Discharge
Elimination System (NPDES) permit; and
WHEREAS, the stormwa~er management programs of the City of
Santa Monica his~orically have been funded by the Wastewater
Enterprise Fund, which is supported by bimonthly service charges on
the utility bills vf water customers in the City, and which wi11 be
facing new demands for large capital outlays for the sewage
treatment system in the coming years; and
WHEREAS, the stormwater management and pallutian prevention
activities of the City are expected to become significantly mare
urgent over the next few years due to the federal mandates af the
1
1995 National Pollution Discharge E~imination System (NPDES)
Permitting process; and
WHEREAS, the annual cost for stormwater management is
projected to be approximately $1.2 million tor the next four years;
and
WHEREAS, finding an alternati~e methad for financing the
City's stormwater costs serves the City~s l~ng term interests as it
prevents significant increases in wastewater rates, allocates costs
more equitably by charging citizens a fee which reflects the amaunt
~f stormwater runoff generated by a given parcel of land instead of
by a customer's water usage, provides a more reliable revenue base
for stormwater management demands, and insures long term financ~ng
in order to fully implement the Santa Monica Bay protection
programs; and
wHEREAS, an improperly maintained storm drainage system can
create prablems such as increased risk af flooding, personal
injury, and property damage; and
WHEREAS, stormwater runoff can be cantaminated with petroleum
products, pesticides, chemicals, heavy metals~ animai drappings,
wastes containing human pathogens and garbage/litter which if
present can flow untreated throtzgh the storm drains and can enter
the oc~an at surf line; and
WHEREAS, in order to protect the economic, recreatianal and
biological resaurces of the Santa Monica Bay, to pro~ide for the
safety of the residents of the City and ta protect property in the
City fram the damage associated with flooding and ta meet the water
2
quaZity requirements of the NPDES permit issued ta the City, it is
necessary to design, construct, operate, maintain, improve, and
replace starm drainage facilities which collect stormwater runoff
and convey and treat such runoff in a safe manner to an acceptable
point af discharge; and
WHER~AS, the City has studied storm water runaff patterns
within the City as well as existing and proposed starm water
management systems and associated public improvements, and has
determined that its storm drainage system should be operated,
maintained, upgraded, constructed and reconstructed as an
enterprise and uti~ity of the City; and
WHEREAS, all developed real property and, to a lesser extent,
undeveloped property, utiiize the City's storm drainage system
because these properties contribute storm and surface water runaff
to the City's storm drainage sys~em as a re~ult of the impervious
and semi-impervious nature of the property; and
WHEREAS, the City is authori~ed under California Government
Cade Sections 54300 et seq., California Health and Safety Code
Sectian 5471, and California Constitution Article XI, Sections 5
and 7 ta establish fees and charges to fund storm drainage
improvements and the operation and maintenance thereaf; and
WHEREAS, municipal entities in nearly every state in the
country and throughout the State of California, including the City
of Los Angeles, Santa C~arita, Berkeley, Ontario, Hayward, Modesto,
Manterey, Palo Alto, Sacramenta, Santa Cruz, San Jose and Tracy~
3
have established utility enterprises to fund stormwater management;
and
WHEREAS, the City Council finds that a need exists to
establish a dedicated funding source for stormwater management
activities of the City and that the establishment of a storm
drainage utility and enterprise with user fees and charges is the
most equitable method of providing this funding; and
WHEREAS, in ard~r to fund such stormwater facilities and
activities it is necessary to impose on all propert~es in the City
a user charge for storm drainage services;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HER~BY ORDAYN AS FdLLOWS:
SECTYON 1. Chapter 7.55 is hereby added to the Santa Monica
Municipal Code to read as f~llows:
CHAPTER 7.56. STORMWATER UTILITY.
7.56.010. Definitions.
The following words ar phrases as used in
this Chapter shall have the following
meanings:
Adjustment. A determination that the
valumetric amount of storm drainage which
enters the storm drainage system from a parcel
is substantially different from the average
storm drainage.
4
Annual Budqet. The annual costs for the
storm drainage and storm drainage system to
pravide for, among other related matters, the
funding, including the establishment af a
rEServe balance, permitting, ma~ntaining,
planning, designing, reconstructing,
constructing, environmentaZly restoring,
regulating, water quality testing, and
inspecting of storm drainage and the storm
drainage system and the management and
administration thereaf. The annual budget
shall be based on the budget adopted by the
City Council in the fiscal year in which the
stormwater management user fees are impased
except the fees imposed in Fiscal Year 1995-96
shall be based on the Projected Stormwater
Management Budget for Fiscal Year 1996-97.
A~erage 8tarm Drainage. The average
amount af starm dra~nage which enters the
storm drainage system from a parcel, based on
runoff factors established by the Los Angeles
County Flood Control District.
Basic Measurement Unit (BMII). The
propartionate stormwater runoff from the
average s~ngle family residential parcel. The
average single family residential parcel has
5
an area of ~.1525 acres and a runoff factor of
0.4~76. The product of these numbers is .0637
and is defi~ed as the Basic Measurement Un~t.
All sing~e ~amily residential parcels consist
of one (1.0) Basic Measurement Unit.
Basia Fes (BF). The fea/charge for ane
(1.0) PBU.
City. The City of Santa Monica.
City-Wide PBU's. The number of PBU's
collectively for every parcel in the City.
Director. The Director of the
Environmental and Public Works Management
Department, or his or her designee.
Gavernmen~al. A municipal carporation,
city and caunty, county, state, federal, or
governmental body, ag~ncy or ent~ty.
Owner. The Iegai owner of the parcel of
real property, except when the legal owner of
the real property is such due ta the ho~ding
af a martgage, note or other such securit~, in
which case the "owner" shall be deemed to be
the beneficial owner of said parcel of real
property.
Parcel. The smallest, separately
segregated lot, unit or plat of land having an
identified owner, boundaries, and surface area
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which is documented for property tax purpases
and given an assessor's identificatian number
by the County of Los Angeles Tax Assessor.
Parcel Billinq Units ("PBU"). The number
of Basic MeasurEment Units for a particular
parcel and, except for sinqle family
residences, is determined using the following
f armu la :
PBU ={parcel size~ x (runaff factor}
BMU
Single family residences have one (1) PBU.
Parael Size. The size of the parcel
measured irt acres .
Runo€f Factar. A number that represents
the amount of average storm drainage from a
parcel far a particular land use. The runoff
factor shall be derived from the runoff
factors utilized by the Los Angeles County
Flood Control District, a copy of which shall
be maintained on fi~e in the City Clerk's
~ffice.
Single-Family Residential Parcel. A
deveioped parcel with ane (1} single-family
detached housing unit.
Storm Drainage. The water that enters
the City's storm drainage system. From the
standpoint of source, it may be a combination
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of the runoff fram residences, commercial
buildings, industrial plants and institutions,
t~gether with any groundwater and surface
water that may be present.
Storm Drainage System. All of the
property invalved in the operation of the
storm drainage collection and disposal system
for the City of Santa Monica, including
conduits, natural or artificial drains,
channe~s and watercourses, together with
appurtenances, pumping stations and equipment.
User. An owner, whether private,
governmental, or otherwise of a unit,
building, premises, lot, or parcel in the City
of Santa Monica.
7.56.020. IItility Created.
The City designates the City's storm
drainage system as a City enterprise and
utility. This utility will be suppQrted ail
or in part by the imposition of a Stormwater
Management User Fee on all parcels of praperty
within the City which discharge storm water to
the City's storm drainage system or are
otherwise served by the City's storm drainage
system, except as otherwise provided in this
Chapter. The purpase of this utility is to
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provide for, among other related matters, the
funding, including the establishment of a
reserve balance, permitting, maintaining,
planning, designing, reconstructing,
constructing, environmentally restoring,
regulatinq~ water quality testing, and
inspecting of storm drainage and the storm
drainage system and the management and
administration thereof.
7.56.030. Stormwater Management User
Fees.
(aj Th~re is imposed on each and every
parcel in the City, and its owner, a
Stormwater Management User Fee. This fee is
necessary to pay for (1} the operation,
administration, maintenance, improvement,
environmental restoration, and replacement of
the exis~~ng storm drainage system, (2) the
operation, administration, maintenance,
~nvironmental restaration and replacement of
future such systems, {3) improving the
quality of stormwater, (4) complying with
local, state, and federal stormwater
regulations and (5) to pay for, or secure the
payment of, any indebtedness incurred for
these purpases. All of the proceeds of these
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feas are in payment for use of the City's
Stormwater Management Utility by developed and
undeveloped parcels and their owners. This
fee shall nat exceed the reasonable cost of
providing the services, facilities or
regulatory activity for which the fee is
charged.
(b) The Basic Fee shall be calcu~ated by
applying the following formula:
BF = Annual Budget
City-Wide PBU~s
(c) The Stormwater Management user Fee
for each parcel shall be calculated by
applying the following formula:
Annual Fee = PBU X BF
(d) For Fiscal Year 1995-96, only one-
half the annua~ fee shall be imposed on each
parcel.
(e) The annua~ fee for non-City
gavernmental parcels shall be reduced by the
pereentage of the Annual Budget attributable
to praposed capital expenditures.
7.56.040. stormwater Management
Enterprise And Utility Fund.
(a) There is hereby established a
special fund in the City Treasury entitled
"The Starmwater Management Enterprise and
l0
Utility Fund, " herein after referred to as the
Fund.
(b) Al1 revenues from the Stormwater
Managemen~ User Fees established pursuant to
Section 7.56.030 sha~l be deposited into the
Fund.
(c) Manies deposited inta this Fund
sha~l only be expended for storm draan and
storm drainage related purpases as described
in Sections 7.56.020 and 7.56.03a.
(d) Appropriations shall be made as
provided far by the City Council.
{e) Monies in the Fund which are
r~ceived by the City subject to any
limitativns on their use may only b~ expended
in accordance with those limitations.
7.56.050. Collection and En€orcement.
(a) The Stormwater Management User Fee
shall be collected by and be payable to the
Los Angeles Caunty Tax Collector for the 1995-
96 fiscal year, and each subsequent fiscal
year, along wi~h the general taxes, fees, and
charg~s collected by the Tax Coll.ector.
(b} The Stormwater Management User Fee
shall be an obl~ga~ion of the record owner af
each parcel billed far storm drainage service.
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The fee shal~ be due and payable on the date
that Las Angeles County tax payments are due.
(c) The fee shall be considered
delinquent if payment is not received within
thirty ( 3 0} days of the date the payment is
due and payable. The City shall impose a ten
parcent (10%) nan-payment penalty on all
delinquent accounts. An additional one
percent (l~) penalty shall be imposed for each
additional thirty (30} day period the amount
remains unpaid.
{d) If the biil is not paid within sixty
(60) days af the date the payment is deemed
delinquent, the amount owing shall constitute
a lien against the parcel receiving the
service, and the City shall notify the
Assessee of the Zi~n as provided far in Heaith
and Safety Code Sectian 5473.11. The lien
shall remain in effect for three (3) years
unless released upon payment of the
delinquent amount plus all penalties
associated therewith or otherwise discharged.
(e} If any portion of the colleetion or
expenditure of the Stormwater Management User
Fee provided for herein is declared invalid or
unconstitutional, the remaining collect~on, or
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expenditure of the Stormwater Management Fee
shall not be affected but shall remain in full
force and effect.
7.56.060. Adjustments ana Appeals.
(a) The Director shall have tha power ta
provide for adjustments which reflect, insofar
as determined reasanably possible by the
Director, the receipt from a premises into the
storm drainage system of quantities of stqrm
drainage which may be substantially different
from the av~rage storm drainage, as said term
is used her~in.
(b} Any us~r may apply in writing to the
Directar for an adjustment within thirty (30)
days from the date the tax bill is maiied with
respect to the periad far which the user seeks
adjustment.
(c) The Director shall provide for
action to ba taken and a determination to be
made upon each app~ication for adjustment
within thirty (30} days from the date said
application is filed whenever reasonably
possible, and shall cause the applicant to be
immediately notif ied in writing of any
determination on the app~ication for
adjustment. Request for production of
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additional information may be made of the
applicant, and if the applicant fails to
produce the requested information within
fifteen (15) days from the date of mailing the
request therefor, the adjustment proceedings
may be terminated or such ather action may lae
taken as is deemed by the Director to be
appropriate,
(d) Any person who has filed an
applicatian for adjustment and received a
determination thereon, and who has ~ikewise
complied with the procedures of this Section,
may request a hearing before a Hearing
Examiner within the time and manner set forth
in Section 6.I6.030. No hearing request shall
be held unless, within the time period to
request a hearing, the person has first paid
the disputed fee under protest.
(e) An ad~ustment determination shall
become fina]. upon the termination af time for
filing a hearing b~fore a Hearing Examiner as
provided for in this Section where no requ~st
has been filed. In the event a request has
been timely filed, th~ determination by
Hearing Examiner shall be fina~ an the date
that the deca.sion is rendered except for
14
judicia~ review. The Hearing Examiner's
decisian shall not be appealable to the City
Cauncil.
(f) The filing of an application for
adjustm~nt ar a raquest for a hearing before a
Hearing Examiner from a determination therein
shall not stay continued and further billing
during the course of time consumed in said
proceedings. Any such continu~d and further
bill~ng will be adjusted, if appropriate, at
the termination af the proceedinqs in
confarmance with the determination therein.
Acceptance of any payment by the Los Angeles
County Tax Collectar an behalf of the City
subsequent to the application for adjustment
shall n~t preclude billing and collection
different from or in excess af such payments
and in conformance with said tinal
determination.
(g) Where a determination or adjustment
has become final as provided in this Section,
future tax bills shall reflect such
adjustment, unless otherwise determined by the
Diractor.
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7.56.07D. Feea And Charqes Superseded.
The fees and charges established by this
Chapter shall supersede a11 prev~ously
established fees and charges for the same
r~gulatian, product, or service.
7.56.080. Annual RevieW.
The Director shall annually review the
Storm~ater Management User Fee and recommend
to the City Council relative to any necessary
rate adjustments so as to ensure that each
user will pay his ar her proportianate share
o~ the costs of storm drainage services.
SECTION 2. Any provision of the Santa Monica Municipal Cade
or appendices thereto inconsistent with the provisions of this
Ordinance, to the extent af such inconsistancies and no further, is
hereby repealed or modified to that extent necessary to effect the
pravisians of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, ar
phrase of this Ordinance is far any reason held to be invalid or
unconstitutional by a decision af any court of competent
jurisdiction, such dec~sion shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby
declares that it would have passed this ordinance and each and
every sectian, subsectian, sentence, clause, or phrase not declared
16
invalid or uncanstitutianal without regard tQ whether any partion
of the ordinance would be subseque~tly declared invalid or
uncanstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adaption.
APPROVED AS TO FORM:
~
SHA JONE M UTRIE
City Attorne
i~