SR-07-22-2014-9ACity Council Meeting: July 22, 2014
Agenda Item: 9 -A
To: Mayor and City Council
From: Dean Kubani, Sustainability Manager, Office of Sustainability and the
Environment
Subject: Public Hearing and Approval of the Stormwater Parcel Reports, and
Stormwater Management User Fees and Clean Beaches and Ocean
Parcel Taxes for Fiscal Year 2014 -15
Recommended Action
Staff recommends that the City Council approve the 2014 Stormwater Parcel Reports
pursuant to the California Health and Safety Code, and Stormwater Management User
Fees and Clean Beaches and Ocean Parcel Taxes for Fiscal Year 2014 -15.
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 7 to the County of Los
Angeles Tax Assessor for these fees to be incorporated into the county parcel tax bill.
Adoption of the bill enables 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. These funds 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.
Background
Stormwater Management User Fee
On July 25 1995, 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
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the City in complying with the National Pollutant Discharge Elimination System
(NPDES) permit requirements, meeting the goals of the Clean Water Act, and new
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 7, 2014, for inclusion on the 2014 -15 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 6,
13 and 20, 2014. The 2014 -15 Parcel Reports are 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 2014 -15 Stormwater
Management User Fee is $36 per PBU, which is the same rate since the original 1995
rate was instituted; the Stormwater Management User Fee is fixed. This rate has no
annual Consumer Price Index adjustment. Based on new building construction included
in the most recent parcel database data, staff estimates receiving an additional $16,000
over the prior year revenue estimate in FY 2014 -15. The proposed 2014 -15 BT for the
Clean Beaches and Ocean Parcel Tax is $96.15, which is an increase of 0.83% from
the previous year rate based upon the Consumer Price Index increase for the period
February 2013 — January 2014. This annual rate adjustment is set in section
7.64.040(e) of the Clean Beaches and Ocean Parcel Tax Act. Based on this rate
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adjustment and new building construction, staff projects receiving $57,000 more than
the prior year estimate for the Clean Beaches and Ocean Parcel tax.
Financial Impacts & Budget Actions
Staff anticipates that the proposed BT for the Clean Beaches and Ocean Parcel Tax will
bring in annual revenues of $2.9 million, including a projected $57,000 increase over the
prior year budget. The proposed Stormwater Parcel Tax fee will provide annual
revenues of $1.1 million, including a projected $16,000 increase over the prior year
budget. Revenues are included in the FY 2014 -15 Adopted Budget at accounts
06661.405490 (Clean Beaches) and 34661.405500 ( Stormwater).
Prepared by: Neal Shapiro, Sr. Sustainability Analyst
Approved:
Dean Kubani, Sustainab lity Manager
Forwarded to Council:
Rod Gould
City Manager
Attachment: Stormwater Parcel Reports
(Hardcopies of the reports are available for public review in the City
Clerk's office and the Main Library)
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Reference:
Staff Report 07/22/2014, Item
9A, Attachment A —
Stormwater Parcel Reports
is available at the City Clerk's
Office
Located in the oversize area of
the vault
505 - 001 -05