SR-11-A (34)
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Santa Monica, California
GS:SES:RH:BJ:mh (10/16)
SRI023
Council Meeting: 10/23/90
TO: Mayor and city Council
FROM: City staff
SUBJECT: Recommendation to Adopt the Attached Resolution
Establishing Hazardous Materials Fees
Introduction
This report recommends adoption of the attached resolution
establishing hazardous materials business plan fees.
Background
On February 10, 1987, the City of Santa Monica adopted an
ordinance dealing with the Hazardous Materials Release Response
Plans and Inventory. This ordinance established procedures for
businesses which use hazardous materials to submit a business
plan which provides:
1) a list of hazardous materials used,
stored and disposed of in the course of their operations; 2)
plans and procedures for emergency response notification,
mitigation and evacuation: and 3) a description of training
methods used for employees who handle hazardous materials. The
information generated from the business plans is used to enhance
the city's emergency preparedness for hazardous materials
emergencies. In addition, the chemical inventory data which is
collected is utilized in the City's Hazardous Waste Minimization
and Industrial Waste Programs.
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Proposed Hazardous Materials Business Plan Fees
Section 5513(a) of the Municipal Code establishes the authority
for the City to recover the costs of administering the hazardous
materials program by collecting a fee from the businesses
required to file a business plan.
Program costs
The costs discussed below are based upon average time
requirements to carry out the Hazardous Materials program.
Presently, an estimated total of 5,206 staff hours per year are
required to administer the program at an annual cost of $200,122.
city staff associated directly with the program include the
Environmental Programs Administrator, Environmental Coordinator,
staff Assistant III, Fire Department Captains, Engineers,
Firefighters and Fire Prevention Inspectors, Fiscal Staff
Assistant II and the Emergency Services Coordinator. Duties
related to the administration of the program which are performed
by these staff members are as follows.
Environmental Programs Administrator. The Administrator will
establish program direction and policy, review relevant
legislative trends and provide program staff reports and
information items. These tasks will require approximately 250
hours per year.
Environmental Coordinator. The Coordinator will provide daily
program administration; review technical information, business
plans and legislation; and respond to inquiries. These tasks
will require approximately 710 hours per year.
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staff Assistant III. The Staff Assistant responds to inquiries,
reviews business plans for completeness and accuracy, assigns
chemical identification numbers to inventory forms, coordinates
Fire Department inspections 1 enters data into the computer and
prepares mailings. These tasks will require approximately 1/437
hours per year.
Fire Department Personnel.
The Fire Department captains I
Engineers, Firefighters and Fire Prevention Inspectors perform
hazardous materials inspections at approximately 615 businesses
per year.
These tasks require approximately l, 879 hours per
year.
Emergency Services Coordinator.
The Coordinator updates the
Santa Monica Hazardous Materials Emergency Area Plan from
information generated from the business plans.
This task
averages approximately 600 hours per year.
Fiscal Staff Assistant II. Fiscal staff Assistant will process
checks received as payment of the proposed business plan fees.
This task will require approximately 330 hours per year.
The following table summarizes the above information and
indicates the cost of performing the described duties:
Title
Employee's
Hourly Rate
Hours with city
Per Year Overhead Total
250 $57.79 $ 14,446
710 44.21 31/389
1,437 29.39 42,237
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Environmental Programs
Administrator
Environmental Coordinator
staff Assistant III
Fire Department Personnel*
1,879
38.71
72,734
Emergency Services Coordinator
600
49.25
29,548
Fiscal staff Assistant II
330
29.60
9,768
$200,122
GRAND TOTAL
*It is assumed that all titles perform an equal number of
inspections: therefore, an average hourly rate is used in the
above table.
Fee Structure
Costs of the program will be recovered from a fee based upon the
size and degree of potential hazard a business poses to the
community. The size of a business is determined by the physical
plant size and number of employees.
The degree of hazard is
based upon the type, volume and number of hazardous materials
handled at a facility. Each business will be classified into one
of four categories based upon a formula similar to the one used
to calculate the fees for failed hazardous materials inspections
(see Exhibit A: Formula Used to Calculate Business Category).
Using the value obtained from the formula, each business will be
classified using the following schedule:
Less than or
equal to 0.9
Type 1
No. in
Typical Business Description Category
Low volume photographic shop, 180
small dry cleaner, small print
shop, small auto repair facility
single practitioner medical office
Gas station, cabinet and 190
furniture refinisher, medium
size auto repair facility,
multi-practitioner medical office
Value
Category
1.0 - 1.4
Type 2
1.5 - 2.4
Type 3
Large auto repair facility
(dealership), small rnanufac-
155
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turers and industrial shops,
small chemical producer
2.5 - 5.0
Type 4
Large scale manufacturer,
hospital, utility companies
25
Average staff time and hourly cost required to process and verify
a business plan under each category has been determined and is
outlined in Exhibit B.
Based on the costs associated with the
time requirements for each permit type, annual program revenue is
projected below.
Number of Amount of Total
Businesses Proposed Annual Annual
Type in category Fee (Rounded) Revenue
Type 1 180 $ 172 $ 30,960
Type 2 190 295 56,050
Type 3 155 552 85,560
Type 4 25 1,099 27,475
GRAND TOTAL $200,045
Annual due dates of the business plan are based on the Fire
Department's inspection schedule.
Approximately one-fourth of
the businesses (138) have already filed business plans and will
not be required to pay a fee this fiscal year, but will be
required to pay the appropriate fee in subsequent years. The
following table shows the remaining businesses that will be
required to pay a fee this fiscal year and the estimated revenue
that will be generated.
Type No. in Category Fee FY 1990-91
Type 1 135 $ 172 $23,220
Type 2 142 295 41,890
Type 3 116 552 64,032
Type 4 19 1,099 20,881
GRAND TOTAL $150,023
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Fee Comparison
Fee structures established by other jurisdictions in the Southern
California area are presented below for comparison.
with the
exception of pasadena, EI Segundo and Glendale, the cities
surveyed stated that the fees represented estimates of program
costs and had been established at the time the programs were
implemented. However, most cities indicated that the fees were
set too low to recover the actual costs of the program and will
likely be increased in the future.
Santa Monica's fees will
recover the complete cost of the program.
F e e S t r u c t u r e - -
Administering Agency Type 1 Type 2 Type 3 Type 4
Santa Monica (proposed) $172 $295 $552 $1,099
pasadena1 140 279 419 698.75
El segundo2 100 225.99 450 1,050-1,200
Los Angeles County 100 300 700 1,000
Long Beach 94 284 473 568+
Burbank3 50 100 300 700
Inglewood4 75-700
Beverly Hills -0- 67 201 335
GlendaleS 20-120 270-390 450-510 660
city of Los Angeles6 61-3,100
lAdd to the base fee listed above a 40% surcharge for each of the
following: any extremely hazardous substance handled; more than
eight chemicals handled; more than four inventory turnovers per
year; more than three handlers per building; storage and disposal
of hazardous waste.
2Hazardous materials fees are included in fire prevention fees.
3Hazardous materials fees are included in fire inspection fees.
4Fees were not comparable to Santa Monica's proposed fee
structure since Inglewoodls fees are based on business type, not
quantity of hazardous materials used.
SFees as shown plus the following: $100 for extremely hazardous
materials, add 35% if six or more but less than ten hazardous
materials are handled, add 50% if 10 or more hazardous materials
are handled, add $60 for Types 1 and 2 if the City of Glendale
determines a business plan is required (similar to Santa Monica's
abbreviated business plan requirement).
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6The City of Los Angeles determines the fee on an individual
basis depending upon the number of hazardous materials handled on
site.
Financial/Budget Impact
The Hazardous Materials Release Response Plans and Inventory
Program annual costs are estimated to be $200,122 and will be
recovered by the recommended fees.
Revenue for fiscal year
1990-91 is estimated to be $150,023. Subsequent fiscal years
would recover the full program costs. Fees will be deposited in
Revenue
Account
Numbers
31-500-662-00000-0468-10000
and
01-500-662-00000-0468-10000 based upon the percentage of program
costs financed by the Wastewater Fund (44%) and the General Fund
(56%) .
Recommendation
It is recommended that the city Council:
1. Increase
the
FY
1990-91
revenue
at
line
items
31-500-662-00000-0468-10000 by $66,010 and 01-500-662-00000-
0468-10000 by $84,013~ and
2. Adopt the attached resolution establishing the Hazardous
Materials Release Response Plans and Inventory fees as
described in this report.
Prepared by: stan Scholl, Director of General Services
Rich Holland, Environmental Programs Administrator
Brian Johnson, Environmental Coordinator
Attachments: Exhibit A - Formula Used to Calculate Business
category
Exhibit B - Computation of Proposed Fees
Resolution
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EXHIBIT A
FORMULA USED TO CALCULATE BUSINESS CATEGORY
The following formula is used to determine the category in which
a business falls.
Range
Points
Part A: Number of Employees
1 - 5
6 - 50
Over 50
1
2
3
Part Bl: Number of Hazardous Materials
1 - 5
6 - 50
Over 50
1
2
3
Part B2: Number af Extremely
Hazardous Substances
o
1 - 2
3 - 5
Over 5
o
1
2
3
Part C: Size of Facility
(square footage)
Under 2,000 1
2,001 - 10,000 2
Over 10,000 3
Part Dl: Quantity of Hazardous Materials
Gases (cubic feet)
1 - 199 0
200 - 1,000 1
1,001 - 10,000 2
Over 10,000 3
Part D2: Quantity of Hazardous Materials
Solids (pounds)
o - 499 0
500 - 5,000 1
5,001 - 50,000 2
Over 50,000 3
Part 03: Quantity of Hazardous Materials
Liquids (gallons)
o - 54 0
55 - 550 1
551 - 5,000 2
Over 5,000 3
Once point values have been determined for each part described
above, they are used in the following formula:
A + Bl + B2 + C + 01 + 02 + 03
4
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EXHIBIT B
COMPUTATION OF PROPOSED FEES
Hourly Rate
including
Hours OVerheadjlnfla- Total
Title per Plan tion Factor by Title
Type 1
Environmental .45 $57.78 $ 26.00
Programs Administrator
Environmental Coordinator .4 44.58 17.83
staff Assistant III 1.4 29.39 41.14
Fire Department Personnel .4 38.70 15.48
Emergency Services Coordinator 1.1 49.24 54.16
Fiscal Staff Assistant II . 6 29.60 17.76
TOTAL - Type 1 Fee $ 172.37
TYPE 2
Environmental .45 $57.78 $ 26.00
Programs Administrator
Environmental coordinator .5 44.58 22.29
staff Assistant III 2.0 29.39 58.78
Fire Department Personnel 3.0 38.70 116.10
Emergency Services Coordinator 1.1 49.24 54.16
Fiscal Staff Assistant II .6 29.60 17.76
TOTAL - Type 2 Fee $ 295.09
TYPE 3
Environmental .45 $57.78 $ 26.00
Programs Administrator
Environmental Coordinator 2.0 44.58 89.16
staff Assistant III 4.0 29.39 117.56
Fire Department Personnel 6.4 38.70 247.68
Emergency Services Coordinator 1.1 49.24 54.16
Fiscal staff Assistant II .6 29.60 17.76
TOTAL - Type 3 Fee $ 552.32
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Title
TYPE 4
Environmental
Programs Administrator
Environmental Coordinator
staff Assistant III
Fire Department Personnel
Emergency Services Coordinator
Fiscal Staff Assistant II
Hours
per Plan
Hourly Rate
including
Overhead/Infla-
tion Factor
.45 $57.78
9.4 44.58
7.3 29.39
9.5 38.70
1.1 49.24
.6 29.60
TOTAL - Type 4 Fee
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Total
by Title
$ 26.00
419.05
214.54
367.65
54.16
17.76
$:Ij)99.16
GS:SS:RH:BJ:mh
SR1023R
City Council Meeting 10-23-90
Santa Monica, California
RESOLUTION NUMBER 8127(CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ESTABLISHING FEES FOR
HAZARDOUS MATERIALS RELEASE RESPONSE
PLANS AND INVENTORY PROGRAM
WHEREAS, the City Council of the City of Santa Monica
adopted Ordinance Number 1400(CCS) on February 10,
1987,
establishing the Hazardous Materials Release Response Plans and
Inventory Program; and
WHEREAS, Section 5513(a) of the Munlcipal Code of the City
of Santa Monica enables the City Council to set fees to recover
the cost of enforcing the program,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1.
The following fees are hereby established
pursuant to Santa Monica Municipal Code Section 5513(a):
Business Plan Filing Fee
Business Type
Fee
Type 2
$ 172
$ 295
$ 552
Type 1
Type 3
Type 4
$1,099
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SECTION 2. All fees shall be paid by the business annual
due date as established by the City of Santa Monica.
SECTION 3. The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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Adopted and approved this 30th day of October, 1990.
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Mayor Pro Tempore
I hereby certify that the foregoing Resolution No. 8127(CCS)
was duly adopted by the city Council of the City of Santa Monica
at a meeting thereof held on October 30, 1990 by the following
Council vote:
Ayes: Councilmembers: Abdo, Genser, Jennings, Katz,
Reed, Mayor Pro Tempore Finkel
Noes: counci1members: none
Abstain: Councilmembers: none
Absent: Councilmembers: Mayor Zane
ATTEST:
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-- . City ClerY