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SR-11-A (34) -:fct' .- [{} '/- II-I'r ~~i T'''' ~'l~^ fa.) L- ~ . 'Ji J 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. - 1 - /1.,,1t 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. - 2 - 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 - 3 - 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 - 4 - 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 - 5 - 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). - 6 - 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 - 7 - 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 - 8 - 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 - 9 - 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 - 10 - 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 - 1 - 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: - N." ~~~,Pd~-' ~ '\~ ~,.~-, .. ~"'t ~.-->~ ROBERT M. MYERS City Attorney - 2 - Adopted and approved this 30th day of October, 1990. ;fp~/) ~ 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: /' 0~ ' /J ' ~-~~ Q. /. -- . City ClerY