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HomeMy WebLinkAbout1980-08-05; City Council; 5861-2; Master Drainage Plan - Financial Analysis/'*?cP CITY OF CARLSBAD Initial: DATE: August 5. 1980" C. Atty DEPARTMENT: Engineering • c- M9r- SUBJECT: MASTER DRAINAGE PLAN - FINANCIAL ANALYSIS STATEMENT OF THE MATTER . The City Council, at their May 27, 1980 meeting gave conceptual approval to a Master Drainage Plan for the City. To implement the plan, the Council will be asked to adopt a resolution approving the consultant's master plan and an ordinance describing a fee structure. Prior to adopting the ordinance and resolution, the Council" should consider the financial impact of the various alternatives presented in the consultant's report. By adopting either four, thirteen or thirty-one, drainage, areas, the Council will affect both administrative effort and total funds raised by the fees. EXHIBITS Master Drainage Plan Financial Analysis RECOMMENDATION Approve the creation of thirteen drainage areas and authorize staff to prepare the necessary resolution and ordinance to implement the Master Plan of Drainage. (Approach 2) . Council Action: 8-5-80 Council approved the above stated staff recommendation. MEMORANDUM - July 25, 1980 TO: ASSISTANT CITY MANAGER/DEVELOPMENT FROM: CITY ENGINEER SUBJECT: MASTER DRAINAGE PLAN - FINANCIAL ANALYSIS Background The City has recently completed a Storm Drain Master Plan in accordance with the provisions of the State Map Act. The City, after adopting the Master Plan, may adopt an ordinance imposing fees on subdividers for the construction of proposed facilities. In order to adopt the fee structure, the Council must: 1. Adopt a Master Drainage Plan. 2. Find that the construction of the proposed facilities will be required by development of property within the drainage areas. 3. Find that fees are fairly apportioned within each area on the basis of benefits conferred on property proposed for subdivision or on the need for drainage facilities created by development. 4. Ensure that acreage fees for any property proposed for subdivision within a drainage area do not exceed an amount which is calculated by dividing the total cost of facilities for a drainage area by the total acreage of the area. 5. The facilities proposed for funding are in addition to any existing facilities. Fee Structure The Master Drainage Plan identifies three different approaches to creation of drainage areas. 1. Approach 1 divides the City into four drainage areas (outside Zone 1 of the Flood Control District). 2. Approach 2 divides the City into thirteen drainage areas (outside Zone 1 of the Flood Control District). 3. Approach 3 divides the City into 31 drainage areas. •Approach No. 1 Area A $ 443 per acre Area B 655 per acre Area BN 2702 per acre Area C 1204 per acre This approach will raise about $8.7 million of the $14 million required to fund the facilities described in the Master Plan. The remaining $5.3 million must be raised by assessment districts, general fund appropriations, grants, or other methods. The drain- age areas are large enough that the requirements to spend funds in the basins which they are raised would not be a problem. The fee range is $443 per acre to $2702 per acre. Approach No. 2 Area AA $3719 per acre Area AB 3563 per acre Area AC 2800 per acre Area AD 2204 per acre Area AE 145 per acre Area BA 2036 per acre Area BB 1574 per acre Area BC 1308 per acre Area BD-BK 3263 per acre Area BM 5435 per acre Area BL 2198 per acre Area BN 2938 per acre Area CB-CM 1204 per acre This approval will raise approximately $10 million of the $14 million required, leaving $4 million for assessment districts, general funds, etc. Some of the drainage areas have become much smaller and the problems of administering thirteen different funds and potential projects in thirteen drainage areas are significantly more com- plicated than the four areas of Approach Number 1. The fee range is $145 per acre to $5435 per acre. -2- Approach 3 This approach divides the City into 31 drainage areas with fees ranging from $145 per acre to $8,605 per acre. The money raised would be about $11 million leaving only $3 million for assessment districts and general funds. Managing the funds and projects for 31 districts would be cumbersome and the additional $600,000 which might be generated by this approach over Approach Number 2 would not justify the increased administrative effort. Developed Areas Since some of the land in the City is already developed, it would not be possible to levy a fee in those areas. The cost of projects to serve areas which are presently developed is estimated at $3 million. Funding of these projects will be either by assessment district (as with the Bristol Cove Assessment District) or by General Fund (as with the State Street Storm Drain). HUD funding or revenue sharing funds may also be utilized. Analysis of Alternate Approaches The Subdivision Map Act allows the Council to charge acreage fees provided the charge is related to benefit received. The Map Act limits the fee to an amount not to exceed the cost of the drainage facilities divided by the total acreage in the drainage district. This formula in effect means that a large number of small districts will raise more money than one citywide district. However, a large number of districts creates difficult administrative problems. Approach 3 is about as close as the City can get to raising all funds necessary to provide the facilities in future development. Approach 2 would be about $1 million short of complete funding of facilities for future improvement and Approach 3 would be about $2.3 million short. The Engineering Department would prefer the drainage areas to be larger for easier administration; however, the attorney feels that four drainage areas for a City of our size is too few. Perhaps the best recommendation is Approach 2 dividing the City into thirteen drainage areas. Developer Requirements The drainage fee is designed to cover the costs of facilities described in the Master Plan and not smaller "local" drainage facilities. A developer will normally be required to construct all Master Plan drainage facilities which lie within the limits of his/her proposed development. In addition, the developer may also be required to construct downstream drainage facilities to protect downstream properties from damage. The developer will be given credit for his/her investment in construction of drainage facilities against the amount of drainage fees required by ordinance. Reimbursement for extension of drainage facilities outside the limits of the developer's project will be possible through City approved reimbursement agreements to be ful- filled by future drainage fees. LE:Idg 7/25/80 _3_