HomeMy WebLinkAbout2004-04-06; City Council; NS-699; Increase Fees in Sewer Benefit Area H...1
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E%W/ 61 79
ORDINANCE NO. NS-699
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ADDING SECTION 13.10.080 TO
THE CARLSBAD MUNICIPAL CODE TO INCREASE FEES IN
SEWER BENEFIT AREA H.
WHEREAS, the City prepared a study entitled "Updated Fee Study Report for Sewer
Benefit Area H", dated January 2004, which updated the Sewer Benefit Area Fees for Sewer
Benefit Area H, the "Engineer's Report"; and
WHEREAS, the Engineer's Report is incorporated as Exhibit "A" to this ordinance; and
WHEREAS, the Engineer's Report estimates the capital costs of construction of sewer
faci I ity imp roveme n ts; and
WHEREAS, fees to implement the construction of those improvements in Sewer Benefit
Area H are set forth in the Engineer's Report; and
WHEREAS, the fees so established do not exceed the reasonable costs of constructing
these facilities and the fees are not levied for general revenue purposes; and
WHEREAS, the Engineer's Report was available for public inspection and review fourteen
(14) days prior to this public meeting; and
WHEREAS, the Finance Director is directed to establish a fund or funds necessary to
2ollect the fees so imposed and to maintain said fund or funds and the interest collected therein
and to authorize expenditures for only those projects, bond payments or other construction
activities set forth in the Engineer's Report. The Finance Director is further directed to make a
?eport, at least annually, and within sixty (60) days of the close of the fiscal year, determining the
Deginning and ending balances for the fiscal year and the fees, interest and other income and
imount of expenditure on each public facility. The fees deposited in the fund or funds shall not be
:ommingled with any other fees or revenue of the City. The Finance Director is further directed to
nake this information available to the public and to report to the City Council not less than fifteen
:15) days after making said information available to the public. The Finance Director shall monitor
hese funds so that, if required, the City Council may make written findings that all or any portion of
he fees remaining unexpended or uncommitted in the fund for five or more years are still
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necessary and needed for the purpose to which the fee is to be expended and demonstrate a
reasonable relationship between that fee and the costs of the improvements.
NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ordain as
follows:
SECTION I: Section 13.10.080 is hereby added to Title 13, Chapter 13.10 of the
Carlsbad Municipal Code to read as follows:
"Section 13.1 0.080
SEWER BENEFIT AREA FEES
"Except as provided, every person who wishes to use the City's sewer facilities in Sewer
Benefit Area H shall pay to the City, prior to the issuance of a building permit, a sewer benefit area
fee of eight hundred eight dollars ($808) per equivalent dwelling unit for sewer benefit area H.
The fee established by this section shall apply to building permits issued thitty (30) days following
adoption of this ordinance for residential developments, and commercial and industrial buildings.
"The sewer benefit area fees shall be adjusted annually effective September 1, by the
annual change to the Engineering News Record Los Angeles Construction Cost Index with a base
year index of April 1, 2004."
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Ordinance No. NS-699 page 2
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EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the
City Clerk shall certify the adoption of this ordinance and cause it to be published at least once in
a newspaper of general circulation in the City of Carlsbad within 15 days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the
9th dayof March ,2004, and thereafter,
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
heldon the 6th dayof April ,2004 by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard
ATTEST:
&i/CLh-k-%= KhdAINE M. WOOD, City Clerk
APPROVED AS TO FORM AND LEGALITY
w7lw RONALD R. BALL, City Attorney
Ordinance No. NS-699 page 3
(SEAL)
CITY OF CARLSBAD
UPDATED FEE STUDY REPORT
FOR
SEWER BENEFIT AREA H
January 2004
CITY OF CARLSBAD
UPDATED FEE STUDY REPORT FOR
SEWER BENEFIT AREA H
PURPOSE
The purpose of this report is to update the actual cost of sewer improvements,
estimate the amount of future development, and then allocate the proportionate
share of such estimated cost to each future equivalent dwelling unit (EDU) within
the boundary of Sewer Benefit Area H. The sewer improvements include gravity
flow sewer pipelines, a sewage lift station, and a forcemain. Three reaches of the
gravity flow sewer pipelines, the sewage lift station, and the forcemain were
designed and constructed by Continental Residential, Inc., the developer of
Rancho Carrillo (MP 139F). Morrow Development designed two reaches of the
gravity sewer pipelines for the Villages of La Costa “The Greens”, and these,are
now being constructed. A third gravity flow sewer pipeline will be designed and
constructed in the future by the City of Carlsbad. Wastewater generated in Sewer
Benefit Area H is intercepted by the gravity flow sewer pipelines, which then
convey the flow to the sewage lift station referred to as the Poinsettia Lift Station.
The Poinsettia Lift Station then pumps the wastewater flow in the forcemain to
the Vallecitos Interceptor Sewer at El Camino Real.
Subsequent to the approval of the original benefit area fee program, the final cost
to design and construct the sewer facilities described above increased, and the
amount of development within Sewer Benefit Area “H” has decreased. Therefore,
it is necessary to update the fee amount calculated in the initial fee study report
prepared by Wilson Engineering Consulting Engineers titled “Benefit Area Fees
for Conveyance System Improvements Update to the December, 1987 City of
Carlsbad Master Plan of Sewage”, dated August 1990.
PROCESS
The sewer benefit area fee program was originally approved by the City Council
on January 15, 1991. This updated fee study reflects the updated costs for the
sewer facilities and the number of EDU’s that will connect to and use the sewer
facilities. The fee will be collected with the issuance of all future building permits
within Sewer Benefit Area “H”. Rancho Carrillo (MP 139F), Bressi Ranch
MP178A, and Villages of La Costa ‘The Greens” (CT 99-03) were conditioned to
construct the sewer facilities prior to or concurrent with the issuance of building
permits for these development projects. Reimbursements to Continental
Residential, Inc. will be paid by the City for actual costs incurred subject to the
terms and limits described in the City’s agreement with Continental Residential,
Inc., dated April 14, 2000, as further defined in this report. A future
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reimbursement agreement will specify conditions for reimbursement to Morrow
Development. The developer of Bressi Ranch will not be constructing any of the
sewer facilities; and therefore, no reimbursement will occur with that developer.
BACKGROUND
The sewer facilities described herein provide sewer service to portions of the City
of Carlsbad’s Local Facilities Management Zones (LFMZ) 6, 10, and 18 and all of
LFMZ 17. The total number of existing EDU’s is 1,869. The existing units include
11 1 EDU’s in CT 73-29 (LFMZ 6B), 1,678 EDU’s in Rancho Carrillo (LFMZ 18B),
and 80 EDU’s located east of the City of Carlsbad in the Vallecitos Water District.
Although the 80 units are outside the boundary of Sewer Benefit Area “H, their
sewer pipeline connects to the collector sewer system in Rancho Carrillo.
Vallecitos Water District paid Continental Residential, Inc. for capacity rights in
the sewer system. Based on a review of future planned developments in each
LFMZ, obtained from growth projections by the City’s Planning Department, the
total number of additional future EDU’s is estimated at 2,276, which are within
LFMZ 10A, 10B, lOC, 17A, and 17B. The estimated equivalent dwelling units in
each LFMZ are shown in Appendix B. Appendix C includes the calculation to
determine the number of EDU’s for industrial, commercial, and institutional
development, which is used in Appendix B. The combined total of existing plus
future EDU’s is 4,145. Using 220 gallons per EDU, the total number of EDU’s will
generate an average wastewater flow of 0.91 million gallons per day (mgd), and
a peak flow of 2.19 mgd.
The sewer facilities are “developer funded”, except for the sewer pipeline VBT1 B,
which will be designed and constructed by the City of Carlsbad. As a result, the
sewer benefit area fees collected by the City for Sewer Benefit Area ”H” will be
used to reimburse Continental Residential, Inc., developer of Rancho Carrillo,
and Morrow Development, developer of Villages of La Costa “The Greens” for
constructing the sewer facilities. The amount of the reimbursement is
proportionate to the cost share of the sewer facilities constructed by each
developer.
IMPROVEMENTS
The sewer facilities convey all flows to the Vallecitos Interceptor Sewer, at a
location near the intersection of El Camino Real and Cassia Road. The first
segment is a forcemain within an easement listed as pipeline reach VBTlG. The
forcemain extends to a point east of the intersection of Poinsettia Lane and
Alicante Road, which is the location of Poinsettia Lift Station. Poinsettia Lift
Station was previously called North La Costa Lift Station in the original fee study
report. Two gravity sewer pipelines begin at the Poinsettia Lift Station. One
sewer extends westerly along Poinsettia Lane to Alicante Road and then north in
Alicante Road to the north property line of CT 99-03. This pipeline is labeled
reach VBTlE. The other sewer extends east within Poinsettia Lane to the
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eastern boundary of MP 178A and is labeled reaches VBTlD, VBT1C and
VBTl A. A third gravity sewer pipeline connects to reach VBTl E at Alicante Road
and extends south in Alicante Road to Lapis Road (North). This third pipeline is
labeled VBTl F.
Subsequent to the preparation of the original fee report, pipeline reach VBTlB,
has been eliminated from the sewer benefit area fee program because it will be
designed and constructed by the City to serve 11 1 lots in CT 73-29. CT 73-29 is
located east of Villages of La Costa “The Greens” and within LFMZ 6B. VBTlB
will replace the existing La Golandrina Lift Station, which presently pumps the
wastewater to Leucadia Wastewater District. Funding for Reach VBTlB will be
obtained from the City’s sewer replacement fund.
The Sewer Benefit Area H fee program includes only the cost to design and
construct the gravity sewer pipelines, Poinsettia Lift Station, the forcemain and
the appurtenances and right-of-way necessary for those facilities. It does not
finance the cost of roadway improvements, water facilities, recycled water
facilities, sidewalks, landscaping, streetlights, traffic signals, sidewalks, and
franchise utilities. The cost of these other improvements are the responsibility of
adjacent land developers, and if applicable the Carlsbad Municipal Water District
or the City of Carlsbad pursuant to the policy and practice of the City of Carlsbad.
BOUNDARIES OF SEWER BENEFIT AREA H
Sewer Benefit Area “H is divided into sewer drainage zones. These were
created as part of each Local Facilities Management Zone (LFMZ). Each
drainage zone is consistent with its LFMZ. The Sewer Benefit Area Fee is paid
by or will be collected from every parcel within the boundaries of Sewer Benefit
Area “H”, which is defined as all parcels in sewer drainage zones 6B, lOA, lOB,
lOC, 17A, 178, and 18B.
It is noted that the boundaries of LFMZ 10A and 1OC were modified from the
original report. LFMZ 10A has been modified to exclude Lots 2, and 3 in CT 99-
03, and one 3.29-acre lot fronting El Camino Real, which is owned by Paziura
Alfonsa. These three lots cannot connect to the Poinsettia Lift Station through
proposed gravity sewer pipelines. Closer analysis shows that sewer service will
be provided through either a direct connection to the Vallecitos Interceptor Sewer
or a future gravity sewer will need to be constructed to connect these lots to the
Vallecitos Interceptor Sewer west of El Camino Real. LFMZ 1OC was also
modified by deannexing Lots 10, 12, and 17 of CT 99-03 from Carlsbad and
annexing these to Leucadia Wastewater District by the City of Carlsbad under
Resolution No. 2001-219 on July 24, 2001. Appendix A includes a map showing
the final boundaries of Sewer Benefit Area H, and the location of each sewer
facility identified in this report.
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COST ESTIMATE
An updated cost estimate is included in Appendix D and totals $3,257,000. The
cost includes construction costs, environmental, land acquisition, overhead, and
bonds. The updated cost estimate also includes the cost of engineering design,
management, and inspection during construction as well as the administrative
cost.
METHODOLOGY TO DETERMINE FEE
To determine the updated Sewer Benefit Area “H” fee the cost share for MP
139F must first be deducted from the total project cost. The reason for deducting
the cost share of MP 139F is that no Sewer Benefit Area “H fees were collected
from development within MP 139F. The fees were not collected because
Continental Residential Inc., constructed sewer facilities greater in capacity than
what was required to provide sewer service for MP 139F. Therefore, the updated
fee is based on the total project cost minus the cost share for MP 139F divided
by the future EDU’s. The future EDU’s are totally outside of the boundary of MP
139F. The cost share for MP 139F is based on a ratio of existing EDU’s in MP
139F divided by the total number of existing and future EDU’s in Sewer Benefit
Area “H.
The cost of pipeline reach VBTIB will not be included in the analysis for the
updated Sewer Benefit Area ”H fee. The City will pay for the entire cost of reach
VBTl B through sewer replacement funds. The City is funding VBTl B because
the property owners that will be provided sewer service through reach VBTl B are
already connected to the City’s sewer system and these connections occurred
prior to the formation of Sewer Benefit Area “H thus no additional connection fee
can be assessed. Reach VBTlB is necessary to eliminate an existing temporary
lift station, referred to as La Golandrina Lift Station. The City entered into an
agreement dated August 20, 1981, with Leucadia Wastewater District to abandon
La Golandrina Lift Station, upon completion of the sewer system in Sewer Benefit
Area “H. The City is using La Golandrina Lift Station to temporarily pump
wastewater to the Leucadia Wastewater District sewer system.
Revenue received from Sewer Benefit Area “H” fees will be used to reimburse
two developers for constructing oversized sewer facilities. Continental
Residential, Inc. will be reimbursed the oversizing cost tributary to the Poinsettia
Lift Station, forcemain (VBT1 G), and gravity sewer pipeline reaches VBTI A,
VBTI C, and VBTl D. Morrow Development will also be reimbursed for oversizing
sewer pipeline reaches VBTI E and VBTl F. E.ach developer will be reimbursed
from fees collected based on the ratio of the cost of the sewer facilities
constructed by each developer. The costs for each developer are shown in
Appendix D.
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SEWER BENEFIT AREA “H” FEE CALCULATION
“ EDU’s
Tributary to
MP 139F
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The sewer benefit area fee is based on the total project cost to construct the
sewer facilities identified for Sewer Benefit Area “H” minus the cost share of
those facilities tributary to MP 139F divided by the future EDU’s. The total project
cost is $3,257,000. The cost share for MP139F is determined by the ratio of
existing EDU’s in MP139F divided by the total number of existing and future
EDU’s in Sewer Benefit Area “H”. This calculation is shown in Table 1.
EDU’s in in Sewer of Total Project
Sewer Benefit Benefit Area Cost for area
Area “H” “H” less outside
subarea 66 MP 139 F
2276 4034 2276/4034 x
100%~ 56.42%
TABLE 1
Estimated Cost Share of Sewer Facilities for Development Outside of
Current SBA “H” Fee
$698/EDU
MP 139F and Within Sewer Benefit Area “H”
Total Existina I Total Future 1 Total EDU‘s I Percent Share
Proposed SBA “H” Fee
$1,838,000 / 2,276 EDU’S = $808/EDU
Developer Cost to be
Reimbursed to
Developer (a)
Continental $2,978,500
Cost Share
of Sewer
Benefit Area “H” outside
MP 139F
56.42% x
$3,257,000 =
$1,838,000
Percent Share Developer Receives of
SBA “H” Fees Collected
$2,978,500 / $3,257,000 x 100 = 91.45 %
The sewer benefit area “H” fee is calculated by dividing the cost share for areas
outside of MP 139F, determined in Table 1, by the future EDU’s. The future
EDU’s are estimated at 2,276 as determined in Appendix 6. The updated sewer
benefit area H” fee is shown in Table 2
Homes, Inc.
Morrow $278,500 $278,500 / $3,257,000 x 100 =
The cost share of the fees collected will be reimbursed to Continental Residential
Inc., and Morrow Development based on a ratio of project cost attributed to each
developer divided by the total project cost. The cost share to each developer is
summarized in Table 3.
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APPENDIX A
SEWER BENEFIT AREA H
FACILITY LOCATION AND BOUNDARY MAP
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. . .. . . . . . .-_ _. .. . ~ ... . .. _-
c - L
APPENDIX B
ESITIMATED EQUIVALENT DWELLING UNITS IN
SEWER BENEFIT AREA H
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: Dwelling Units in Sewer Ber
Industrial/
Estin
LFMZ
6B
1 OA
1 OB
1 oc
17A
17B
!fit Area H
Total
m5Tq-r
CT 99-03
186
Lot Lot 5 I
MP139F 1663 15
.-
Lot 7
CT 02-22
CT02-23
MP 178A
PA- 1
PA-2
PA-3
PA-4
PA-6
I27
75
82
64
PA-5 I
PA-7
PA-8
PA-9
PA-1 1
PA-1 2
PA-1 3
PA-1 4
PA-1 5
VWD (b)
Total
99
98
72
10
94
80
2757 46.20
17
14.2
Commercial
72
18.81
206.97
353.63
331.06
21 0.68
72.1 4
8.28
67.96
1341.53
111.00
72.00
17.00
96.00
141.20
75.00
82.00
18.81
206.97
353.63
331.06
64.00
86.00
21 0.68
99.00
98.00
72.00
10.00
94.00
72.1 4
8.28
67.96
1678.00
80.00
41 44.73 ~~
(b) By separate agreement with Vallecitos Water District dated March 24, 2000,
80 EDU’s are connected to the sewer system of Sewer Benefit Area “H”.
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ZCI ,
APPENDIX C
ESTIMATED EQUIVALENT DWELLING UNITS FOR
FUTURE INDUSTRIAL, COMMERCIAL, AND
INSTITUTIONAL DEVELOPMENT IN
SEWER BENEFIT AREA H
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- ._ - .. .
Estimated Equivalent Dwelling Units for Industrial, Commercial and
I Total EDU’s I 14.90 (a) The conversion factor for industrial and commercial development is based on the 2003 Sewer Master plan of 1,150 gpd/lO,OOO square feet of building area for non-residential flows. At 220
gallons per day per EDU the conversion factor is 1,913 square feet of buitding area per EDU.
snackbar, and a peak discharge of 18,000 gallons per week from the swimming pool backwash.
Peak use of the restrooms will equate to 1 EDU per restroom. The poot backwash equates to
2,571 gallons per day. Assuming 220 gallons per EDU the pool backwash is 12 EDU’s. For the
Alga Norte Park the total EDU’s is 5 EDU’s for restrooms plus 12 EDU’s for backwash water or
a total of 17 EDU’s.
EDU, which equates to 14.2 EDU’s.
equates to 12.9 EDU’s.
(b) Lot 5 includes the City’s proposed Alga Norte Park, which will have five restroom facilities, a
(c) Lot 7 is planned for a proposed elementary school site with 850 students at 60 students per
(d) The existing Carrillo Elementary School has 775 students at 60 students per EDU, which
(e) The Carrillo Ranch City Park has two restrooms and a small kitchen, which equates to 2 EDU’s.
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APPENDIX D
UPDATED PROJECT COST ESTIMATE
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PROJECT COST ESTIMATE FOR
SEWER BENEFIT AREA H
of Construction Cost)
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