sr-091410-1eCity Council Meeting: September 14, 2010
Agenda Item: (~
To: Mayor and City Council
From: Dean Kubani, Director of the Office of Sustainability and the Environment
Subject: Resolution to Adopt the Urban Runoff Reduction Fee
Recommended Action
Staff recommends that the City Council adopt a resolution to establish the Urban Runoff
Reduction Fee rate for FY 2010-11 as authorized in SMMC Chapter 7.10, Urban Runoff
Pollution Control.
Executive Summary
This report transmits a resolution which sets the annual unit cost for the Urban Runoff
.Reduction Fee as specified in SMMC 7.10. The unit cost for FY 2010-11 is $7.61 per
gallon and is used to calculate the fee that may be paid by a project applicant in-lieu of
constructing a system to capture and mitigate urban runoff on a project site. Collected
funds will be used by the City to construct urban runoff BMPs on City property. There
are no direct financial impacts from adoption of this resolution.
Discussion
City Council adopted the revised SMMC Chapter 7.10 Urban Runoff Pollution Mitigation
Ordinance (Ordinance) on July 27, 2010. The Ordinance allows an applicant for a new
development or redevelopment project in the City to pay an Urban Runoff Reduction
Fee (Fee) in-lieu of on-site installation of a post-construction structural best
management practice (BMP) to capture and mitigate runoff from the project site: The
Ordinance specifies that the Fee shall be used by the City exclusively to construct Low
Impact Development (LID) post-construction structural BMPs on City property designed
to achieve the same level of water quality protection as if all of the. runoff was retained
on the project site.
1
The Ordinance specifies the following formula for calculation of the Fee:
Project Mitigation Volume (cubic feet) X 7.49 (gallons/cubic foot) X Unit Cost
(dollars/gallon)
The Ordinance specifies that the initial Unit Cost shall be established by resolution of
the City Council based on the average cost per gallon of water for the City to construct
post-construction structural BMPs on City properties during a five year period prior to
the adoption of the resolution. Based upon project data for City BMP projects over.the
five year period between July 1, 2005 and June 30, 2010 the average unit cost is $7.61
per gallon. The Government Projects and BMP Post-Construction Costs FY05-10 table
(Attachment A) shows the government projects that have post-construction BMPs in the
last five .fiscal years, costs per gallon to install the BMPs, and the Unit Cost for the
coming fiscal year. The Unit Cost is the average of all the costs per gallon for the
government projects. The costs per gallon come from the City's ACCESS database
that tracks all construction projects with post-construction BMP requirements.
The database, which is overseen by the City's Watershed Management Program
Coordinator, compiles construction costs for these projects. Attachment A contains
these BMP post-construction costs for the specific government projects during the
required time frame to calculate the Unit Cost. These costs are fixed construction costs.
The Ordinance specifies that the Unit Cost shall thereafter be adjusted annually based
on changes in new construction costs beginning on July 1, 2011.
The attached resolution (Attachment B) sets the unit cost for FY 2010-11 at $7.61 per
gallon.
2
Financial Impacts & Budget Actions
No financial impacts result from this action. In the event that project applicants choose
to pay the Urban Runoff Reduction Fee the revenues will accrue to account
34661.407160 and all revenues will be used to construct structural LID BMPs on City
property. Prior to construction of those projects staff will return to Council for
authorization as required.
Prepared by: Neal Shapiro, Watershed Management Coordinator
Approved:
1~~ f ,
Dean Kubani
Director, Office of Sustainability and the
Environment
Forwarded to Council:
.'-CS~
Rod Gould
City Manager
Attachments:
Attachment A: Government Projects and BMP Post-Construction Costs Table,
FY05-10
Attachment B: Resolution
3
Attachment A
Government Projects and BMP Post-Construction Costs Table, FY05-10
Government Project Address $ [Gallon*
503 Olympic Blvd. $ 7.27
3201 Airport Avenue $ 9.63
1525 Euclid Street $ 29.71
1620 6th Street $ 1.59
333 Civic Center Drive $ 2.38
1930 Stewart Street $ 0.47
415 Palisades Beach Road $ 2.23
Unit Cost $ 7.61
* Cost per gallon for the installation of the post-construction BMP.
Reference Resolution No.
10522 (CCS).