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HomeMy WebLinkAboutReso 56-2017 (17-615) OTK,SAN,� City of South San Francisco - P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA - - City Council �'t R> Resolution: RES 56-2017 File Number: 17-615 Enactment Number: RES 56-2017 RESOLUTION UPDATING THE SEWER CAPACITY CHARGE ESTABLISHED PURSUANT TO RESOLUTION 39-2010 TO INCREASE THE CHARGE FOR FISCAL YEAR(FY) 2017-18 WHEREAS,the General Plan of the City of South San Francisco ("City")was adopted in 1999 by Resolution No. 139-99, and contains policies requiring that future residents and businesses equitably share the costs associated with providing wastewater service to new development in the City(Policies 5.3-G-5, 5.3-I-5); and WHEREAS, development anticipated under the General Plan would require replacing and upgrading existing sanitary sewer infrastructure facilities and constructing new facilities to adequately serve the community; and WHEREAS, the City has adopted a Five-Year Capital Improvement Program(CIP), which describes all of the City's capital improvement projects, including the infrastructure necessary to adequately serve development anticipated under the General Plan,which CIP is available for review at the City of South San Francisco Public Works Division, 550 N. Canal, San Francisco, CA 94080; and WHEREAS, the City has adopted and enforces a sewer capacity charge, imposed on new development and certain redevelopment,which charge was last updated in 2010; and WHEREAS,the City contracted with Michael Baker International to update the Citywide Sewer Capacity Fee and demonstrate the nexus between the proposed updated charge and the new development that will be responsible for paying the charge (Development Impact Mitigation Fee Update, May 2017,hereafter "Study"); and, WHEREAS,upon adoption,this Resolution supersedes all prior resolutions pertaining to imposition of a Sewer Capacity Charge; and WHEREAS, on June 14, 2017,the City Council held a lawfully noticed public hearing to consider the proposed Sewer Capacity Charge. NOW,THEREFORE, BE IT RESOLVED that based on the entirety of the record before it, which includes without limitation, the South San Francisco General Plan; the South San City of South San Francisco Page 1 File Number: 17-615 Enactment Number: RES 56-2017 Francisco Municipal Code; the Five-Year Capital Improvement Program; the Development Impact Mitigation Fee Update,prepared by Michael Baker International, dated May 2017; all reports,minutes, and public testimony submitted as part of the Budget Standing Committee study session on May 25,2017; all reports, minutes, and public testimony submitted as part of the City Councils' duly noticed public hearing on June 14, 2017,the City Council of the City of South San Francisco hereby finds as follows: The foregoing recitals are true and correct and made a part of this Resolution. 2. The Development Impact Mitigation Fee Update,prepared by Michael Baker International, dated May 2017 and attached as Exhibit A is incorporated by reference as part of this Resolution, as if set forth fully herein. The documents and other material constituting; the record for these proceedings are located and available for review during regular business hours at the City of South San Francisco City Clerk's Office, 400 Grand Avenue, South San Francisco, CA 94080. The Sewer Capacity Charge set forth in this Resolution, is a "capacity charge" as that term is defined in Government Code, § 66013(b)(3),the purpose of which is to finance the replacement and renewal of existing sanitary sewer facilities and the upgrade and construction of new sanitary sewer facilities to reduce impacts caused by future development and redevelopment in the City. The Sewer Capacity Charge set forth in this Resolution does not exceed the estimated reasonable cost of providing the service for which the charge is imposed,because, as demonstrated in more detail in Exhibit A,the charge imposes a proportional share of City's total sewer system investment, including specified future capital improvement projects, on new development requesting a connection to the sewer system, and redevelopment resulting in an increase in the use of the sewer system.There is a reasonable relationship between the use of the Sewer Capacity Charge set forth in this Resolution and the type of development projects on which such charges are imposed in that all development in the City-both residential and non-residential-generates or contributes to the need for the sewer facilities and improvements listed in the Study.Additionally,there is a reasonable relationship between the need for the facilities and improvements listed in the Study and the type of development projects on which the Sewer Capacity Charges set forth in this Resolution are imposed in that new development in the City-both residential and non-residential-will generate persons who live, work and/or visit the City and who generate or contribute to the need for the facilities and improvements listed in the Study. 6. Based on a recent flow monitoring report, a sewer flow of 188 gallons per day is representative of 1.0 Equivalent Dwelling Unit(EDU). The proportional flow rates for higher density residential land use types serve as justification for EDU factors of 0.76 for Multi-Family and City of South San Francisco Page 2 File Number: 17-615 Enactment Number: RES 56-2017 0.59 for Mobile Homes.The Study indicates that anticipated flow volume,biological oxygen demand (BOD) and the total suspended solids(TSS) serve as reasonable cost parameters in calculating the EDU for non-residential land use types. 7. Collection, management, and expenditure of the Sewer Capacity Charge will comply with the requirements of Government Code § 66013,because as demonstrated in this Resolution, the charge and any interest accrued will be deposited in a separate fund, and the City will annually report on the monies collected and expended. In adopting and imposing the Sewer Capacity Charge,the City has complied with the procedures for adoption described in Government Code § § 66016, 66017, and 66018, because 14 days prior to the scheduled public hearing written notice was mailed to all individuals requesting notice of such increases, 10 days prior to the public hearing the data indicating the amount of estimated cost required to provide the service for which the fee is charged and the revenue sources anticipated to provide the services were made available for public inspection at City Hall, 400 Grand Avenue, South San Francisco,the City held a lawfully noticed public hearing on June 14, 2017, at which oral and written presentations could be made,the proposed capacity charge is to be adopted by resolution, and the proposed capacity charge will not become effective until August 14, 2017,which is more than sixty days from the date of the public hearing. BE IT FURTHER RESOLVED,that based on the entirety of the record as described above, and for the reasons set forth in this Resolution, including the incorporated Exhibit,the City Council of the City of South San Francisco, hereby adopts the Sewer Capacity Charge, as set forth below: I. Definitions. A. " Equivalent Dwelling Unit("EDU") shall mean a unit of measurement, which as described in the Study, is equivalent to 188 gallons of daily flow plus 0.39 pounds per day of biochemical oxygen demand(BOD)plus 0.28 pounds per day of total suspended solids(TSS). B. " Facilities" shall mean those facilities that are described in the Five-Year Capital Improvement Program and the Study, and that are necessitated in whole or in part by new connections to the Sewer Facilities or increased usage of existing connections. "Facilities" shall also include comparable alternative facilities, should future circumstances, including but not limited to changes in projections of development in the region, unforeseen maintenance issues, or infeasibility of certain capital improvement projects, necessitate construction of such alternative facilities; provided that the City Council later determines in accordance with applicable law(1)that there is a reasonable relationship between the development within the City and the need for alternative facilities; (2)that the alternative facilities are comparable to the facilities listed in the Five-Year Capital Improvement Program and Study; and(3)that revenue City of South San Francisco Page 3 File Number: 17-615 Enactment Number: RES 56-2017 from charges charged pursuant to this Resolution will be used only to pay the charge payors' fair and proportionate share of alternative facilities. C. " Sewer Capacity Charge" shall mean one-time charge imposed at the time a user newly connects to the Sewer Facilities, directly or indirectly, or upon a user increasing their use of the Sewer Facilities, as described in Section II and further set forth in this Resolution. D. " Sewer Facilities" shall mean the gravity collection lines,pump stations, a wastewater treatment plant, a disposal system, and other related apparatuses and appurtenances, used by the City as a means of collecting, treating, anddisposing of wastewater from residential and non-residential users. II. Sewer Capacity Charge Imposed. A. Effective August 14, 2017, in accordance with California Government Code § 66013, a Sewer Capacity Charge shall be imposed and paid at times and in the amount prescribed in this Resolution, on users that connect to the Sewer Facilities for the first time, and on users that increase their sanitary sewer usage due to: (1)changes in or any improvements to residential uses resulting in an increased Equivalent Dwelling Unit calculation for the use; or(2) changes in or any improvements to nonresidential uses, resulting in an increased Equivalent Dwelling Unit calculation for the use. B.A replacement or reconstruction of a residential or non-residential structure that has been damaged or destroyed by fire, flood, explosion,wind, earthquake, riot, or other calamity or act of God, shall not be subject to payment of the Sewer Capacity Charge,provided that(1)there is no change in use of the structure; and(2)the number Equivalent Dwelling Units in the replaced or reconstructed structure do not exceed the number of Equivalent Dwelling Units in the damaged or destroyed structure.Any excess Equivalent Dwelling Units shall be subject to the Sewer Capacity Charge. III.Amount of Sewer Capacity Charge. A. For residential users, the amount of the Sewer Capacity Charge shall be equal to four thousand, seven-hundred eighty five dollars and 88 cents per($4,785.88)per Equivalent Dwelling Unit as adjusted pursuant to Section IX of this Resolution. The number of Equivalent Dwelling Units for a particular residential use shall be determined by the Water Quality Control Plant Superintendent, or his or her designee in accordance with chart with below. For uses that are not clearly identified below,the Water Quality Control Plant Superintendent has the authority to assign a classification based on the most similar use. City of South San Francisco Page 4 File Number: 17-615 Enactment Number: RES 56-2017 tesidential Land Use EDU Factor ingle-Family Home 1.00 Multi-Family 0.76 4obile Home 0.59 B. For non-residential users,the amount of the Sewer Capacity Charge shall be equal to four thousand, seven-hundred eighty five dollars and 88 cents per($4,785.88)per Equivalent Dwelling Unit as adjusted pursuant to Section IX of this Resolution. The number of Equivalent Dwelling Units for a particular non-residential use shall be determined by the Water Quality Control Plant Superintendent, or his or her designee, in accordance with the following formula: EDUs=(0.00347 x Flow)+(0.362 x BOD) +(0.589 X TSS), where "Flow" equals the user's average daily flow measured in gallons per day, "BOD" equals the user's biochemical oxygen demand measured in pounds per day, and "TSS" equals the user's total suspended solids measured in pounds per day.A non- residential user's Flow, BOD, and TSS shall be determined by the Water Quality Control Plant Superintendent, or his or her designee. C. For mixed-use projects that contain a residential component, the amount of the Sewer Capacity Charge shall be equal to the sum of(i)the Sewer Capacity Charge that would be imposed on the residential portion of the project pursuant to Subsection(A), and(ii)the Sewer Capacity Charge that would be imposed on the non-residential portion of the project pursuant to subsection(B). IV.Time for Imposing and Payment of Sewer Capacity Charge. A. For residential projects and the residential portion of mixed-use projects,the Sewer Capacity Charge shall be imposed and paid prior to issuance of a building permit for the project. B. For non-residential projects, and the non-residential portion of mixed-use projects,the Sewer Capacity Charge shall be imposed and paid prior to issuance of a building permit, except that the Water Quality Control Plant Superintendent, or his or her designee,may allow for payment of the Sewer Capacity Charge at a later date,provided that in no case shall a final certificate of occupancy be issued prior to payment of the applicable Sewer Capacity Charge. V. Establishment of Sewer Capacity Charge Fund. The existing "Sewer Capacity Charge Fund," shall be the fund into which all monies collected City of South San Francisco Page 5 File Number: 17-615 Enactment Number: RES 56-2017 pursuant to the Sewer Capacity Charge shall be deposited. VI. Use of Sewer Capacity Charge Revenue. In accordance with California Government Cade Section 66013(c),the revenues raised by payment of the Sewer Capacity Charge shall be placed in a separate, interest bearing account to permit accounting for such revenues and the interest which they generate. Such revenues and interest shall be used only for the purposes for which this Sewer Capacity Charge was collected, which are the following: To pay for acquisition of the Facilities. To pay for design, engineering, construction of and property acquisition for, and reasonable costs of outside consultant studies related to,the Facilities. To reimburse the City for the Facilities constructed or reconstructed by the City with funds from other sources including funds from other public entities,unless such funds were obtained from grants or gifts intended by the grantor to lie used for the Facilities. To reimburse persons who have designated and constructed or reconstructed any of the Facilities with prior City approval and have entered into a reimbursement agreement. To pay for and/or reimburse costs of program development and ongoing administration of the Sewer Capacity Charge program, including,but not limited to,the cost of studies, legal costs, and other costs of adopting and updating the Sewer Capacity Charge. VII.Accounting. In accordance with California Government Code Section 66013(d),the City shall make available to the public, within 180 days after the last day of each fiscal year, and may include as part of the City's annual financial report,the following information for that fiscal year: A description of the charges deposited in the fund. The beginning and ending balance of the account and the interest earned from investment of moneys in the fund. The amount of charges collected in that fiscal year. An identification of the following: City of South San Francisco Page 6 File Number: 17-615 Enactment Number: RES 56-2017 Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used. Each public improvement on which charges were expended that was completed during the fiscal year. Each public improvement that is anticipated to be undertaken in the following year. A description of each interfund transfer or loan made from the Sewer Capacity Charge Fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred money are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive can the loan. The information required pursuant to this Section 7 may be included in the City's annual financial report. The information prescribed in this Section 7 shall not apply to: Money received to construct public facilities pursuant to a contract between a local agency and a person or entity, including,but not limited to, a reimbursement agreement pursuant to California Government Code Section 66003. Charges that are used to pay existing debt service or which are subject to a contract with a trustee for bondholders that require a different: account of the charges, or charges that are used to reimburse the local agency or to reimburse a person or entity who advanced funds under a reimbursement agreement or contract for facilities in existence at the time the charges are collected. VIII.Master Fee Schedule The City of South San Francisco Master Fee Schedule shall include the Sewer Capacity Charge, as set forth in this Resolution. IX. Sewer Capacity Charge Adjustments. Annually,beginning January 1, 2018, the Sewer Capacity Charge shall automatically City of South San Francisco Page 7 File Number: 17-615 Enactment Number: RES 56-2017 adjust by the percentage change in the San Francisco Construction Cost Index(CCI) as reported in the Engineering News Record for the twelve-month period ending in October of the previous year. The adjusted per EDU Sewer Capacity Charge; for residential users shall be rounded to the nearest hundredth of a dollar.The adjusted per EDU Sewer Capacity Charge for non-residential users shall be rounded to the nearest whole dollar. X. Subsequent Analysis and Revision of the Sewer Capacity Charge. The Sewer Capacity Charge set forth herein is adopted and implemented by the City Council in reliance on the record of these proceeding, described above, including the CIP and Study. The City may continue to conduct further study and analysis to determine whether the Sewer Capacity Charge should be revised. When additional information is available,the City Council may review the Sewer Capacity Charge to determine that the Sewer Capacity Charge amounts are reasonably related to the impact of new or expanded usage of the Sewer Facilities. In addition to the inflation adjustments pursuant to Section IX,the City Council may revise the Sewer Capacity Charge, in accordance with the relevant provisions of law,to incorporate the findings and conclusions of further studies. XI. Severability. Each component of the Sewer Capacity Charge and all portions of this Resolution are severable. Should any individual component of the Sewer Capacity Charge or any portion of this Resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining Sewer Capacity Charge components and/or Resolution portions shall be and continue in full force and effect, except as to those components and/or Resolution portions that have been adjudged invalid. The City Council of the City of South San Francisco hereby declares that it would have adopted this Resolution' and each section, subsection, clause, sentence,phrase, and other portion thereof, irrespective of the fact that one or more section, subsection, clause, sentence,phrase, or other portion mad be held invalid or unconstitutional. XII. Effective Date. This Resolution shall become effective immediately upon its passage and adoption. The Sewer Capacity Charge adopted by this Resolution,however, shall not become effective, and shall not be imposed until August 14, 2017. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 14th day of June, 2017 by the following vote: 2823207.1 City of South San Francisco Page 8 File Number: 17-615 Enactment Number: RES 56-2017 * * * * * At a meeting of the City Council on 6/14/2017, a motion was made by Richard Garbarino, seconded by Mark Addiego, that this Resolution be approved.The motion passed. Yes: 5 Vice Mayor Normandy, Councilmember Garbarino, Councilmember Matsumoto, Mayor Gupta, and Councilmember Addiego ___Li :=/] .__ Attest by Gabrie Rodrigu City of South San Francisco Page 9