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SR 07-26-2011 9A (2)City Council Meeting: July 26, 2011 Agenda Item: To: Mayor and City Council From: Dean Kubani, Director, Office of Sustainability and the Environment Subject: Public Hearing and Approval of the Stormwater Parcel Reports and Stormwater Management User Fees for Fiscal Year 2011-12 Recommended Action Staff recommends that the City Council approve the 2011 Stormwater Parcel Reports pursuant to the California Health and Safety Code, and Stormwater Management User Fees for Fiscal Year 2011-12. Executive Summary Each year, the City of Santa Monica produces two stormwater parcel fee reports listing each property in the city and the amount of the stormwater fees to be paid by each property owner. This information must be submitted by August 10 of each year to the County of Los Angeles Tax Assessor so that these fees can be incorporated into the County parcel tax bill, enabling the City to receive its stormwater fees in the coming fiscal year. These fees support the City's Watershed Management Program. The Council has taken this action annually beginning in 1995. The Stormwater Management User Fee, and the Clean Beaches and Oceans Parcel Tax (Measure V) generate approximately $4 million annually, which are critical to the City's ongoing watershed management program and enable the City to comply with Federal and State water quality regulations, as well as support the City's Watershed Management Plan and the Sustainable City Plan. No budget impacts are associated with taking this recommended action. 1 Background Stormwater Management User Fee On July 25, 1995 (City Council Meeting: 07/25/95), City Council adopted an ordinance establishing the Stormwater Management User Fee to support stormwater management activities. The Los Angeles County Tax Auditor-Controller's Office is responsible for the collection of the annual fee, which. is then forwarded to the City. The stormwater management program consists of: Periodic upgrades to the storm drain system.; ® Enforcement of local, State and Federal stormwater regulations, such as the City's Urban Runoff Pollution Prevention Ordinance (SMMC 7.10) and the Los Angeles County National Pollutant Discharge Elimination System (NPDES) permit, • Implementation of the Santa Monica Bay Restoration Plan, • Strategies, such as Best Management Practices (BMPs), aimed at reducing the volume and pollutant load of urban runoff flowing into Santa Monica Bay, and • Operation and maintenance of the City's storm drain system and BMPs. Clean Beaches and Ocean Parcel Tax The Clean Beaches and Ocean Parcel Tax (Measure V) was passed by 67% of Santa Monica voters in November 2006 for the purpose of implementing the City's Watershed Management Plan (Plan). The goals of the Plan are to reduce urban runoff pollution; reduce urban flooding; increase water reuse and conservation; increase recreational opportunities and open space; and increase wildlife and marine habitat. Revenues generated by Measure V can be used for operations and maintenance costs related to storm drainage systems, and multipurpose capital improvement projects that improve the quality of urban runoff, as well as paying for any indebtedness incurred for these purposes. Watershed management and pollution prevention activities of the Plan assist the City in complying with the National Pollutant Discharge Elimination System (NPDES) permit requirements, meeting the goals of the Clean Water Act, and new 2 regulations promulgated by the Los Angeles Regional Water Quality Control Board relating to Total Maximum Daily Loads. Discussion The Stormwater Parcel Reports list all privately-owned parcels with their associated fees. The City must submit these reports to the Los Angeles County Auditor- Controller's Office by August 10, 2011, for inclusion on the 2011-12 tax rolls. A public hearing and Council approval are required prior to submittal for billing. Notification regarding a public hearing was published in the Santa Monica Daily Press on July 10, 17 and 24, 2011. The 2011-12 Parcel Report is also available for public review at the City Clerk's Office and the City's Main Library. The Stormwater Parcel Reports are based on the most accurate parcel database available for calculating the number of Parcel Billing Units (PBU), used for the Stormwater Management User fee, and the Basic Tax (BT), used for the Clean Beaches and Ocean Parcel tax. The number of PBUs and the BTs are calculated based on land use, runoff factor and parcel size, which are directly proportional to the amount of runoff generated by a given parcel. The proposed 2011-12 Stormwater Management User Fee is $36 per PBU, which is the same as the original 1995 rate. The proposed 2011-12 Clean Beaches and Ocean Parcel Tax is $91.65 per BT per parcel, which is an increase of 2.0% from the previous year due to the Consumer Price Index increase for the period February 2010 -January 2011. 3 Financial Impacts & Budget Actions The total revenue estimate from the proposed fees for Fiscal Year 2011-12 is approximately $1.2 million from the Stormwater Management Fund and $2.8 million from the Clean Beaches and Ocean Parcel Tax Fund for a total of $4 million. Projected revenues totaling $4 million for these fees and parcel taxes are included in the FY2011- 13Adopted Budgets. Prepared by: Neal Shapiro, Watershed Management Coordinator Approved: Forwarded to Council: ~~L Dean Kubani, Director Office of Sustainability and the Environment Attachment: Stormwater Parcel Reports ~~ ~ ~~ ~ ~ Rod Gould City Manager (Hardcopies of the reports are available for public review in the City Clerk's office and the Main Library) Electronic versions of reports are available at: htto:!/www.smgov.net/Departments/OSE/Categories/Urban Runoff/Storm water Parcel Fees.asox 4 Additional attachments available for review in the City Clerk's Office