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HomeMy WebLinkAbout2004-03-09; City Council; 17538; Fee Increase: Sewer Benefit Area Ha z L 4 Q) 0 I e 0 0 N d z TI u 5 4 0 V) 2 W CITY OF CARLSBAD - AGENDA BILL DEPT. HD. TITLE: APPROVE ENGINEER'S REPORT AND INTRODUCING ORDINANCE NO. NS- 699 \B# 17,538 - IITG. 3/09/04 IEPT. ENG AND SCHEDULE PUBLIC HEARING RECOMMENDED ACTION: Adopt Resolution No. 2004.-081 approving the Engineer's Report, declaring the City's intention to increase the fees for Sewer Benefit Area H, and setting the public hearing to consider adoption of increased fee. Introduce Ordinance No. NS--699 to increase fees in Sewer Benefit Area H. adding Section 13.1 0.080 to the Carlsbad Municipal Code ITEM EXPLANATION: The Sewer Benefit Area fee program was initially approved under Resolution No. 90-21 to levy and collect fees following a duly noticed hearing by the City Council on January 15, 1991. The original Engineering Report entitled "Benefit Area Fees for Conveyance System Improvements Update to the December 1987 City of Carlsbad Master Plan of Sewerage," dated August 1990, established benefit areas A through M. These Sewer Benefit Areas were located throughout the City and were used to collect funds for sewer system improvements that were not funded by the City's sewer connection fee program. This fee update is only applicable to Sewer Benefit Area H, which is tributary to the Vallecitos Interceptor Sewer. The sewer facilities include the construction of an interceptor sewer consisting of numerous pipeline reaches and the Poinsettia Lift Station. The pipeline reaches include a 12-inch diameter gravity flow pipeline in Poinsettia Lane from Alicante Road to a point 1,320 feet east (VBTlA, VBTlC, and VBTlD), a 12-inch diameter forcemain from Poinsettia Lift Station to El Camino Real (VBT1 G), a 12-inch diameter and 1 0-inch diameter gravity flow sewer pipeline in Alicante Road proceeding north 2,256 feet (VBT1 E), an 8-inch diameter gravity flow sewer pipeline in Alicante Road from Poinsettia Lane south to Lapis Road (VBT1 F), and an 8-inch diameter gravity flow sewer pipeline in El Fuerte Street from Poinsettia Lane to La Golondrina Lift Station (VBTlB). The improvements also include right-of-way acquisition costs, engineering, contract administration, construction engineering, construction inspection, and mitigation measures. The fee amount in Sewer Benefit Area H was established in 1990 to fund the construction of the required sewer facilities described above. The cost to design and construct the pipelines and Poinsettia Lift Station have increased, and the amount of development, in terms of equivalent dwelling units (EDU's), within Sewer Benefit Area H has decreased since the approval of the Sewer Benefit Area fee program. Therefore, it is necessary to update the initial Engineer's Report, and revise the fees in order that sufficient funds are collected to construct all of the identified sewer facilities. The updated fee program must be approved by a two-thirds vote of the City Council at a duly noticed public meeting at which oral or written presentations can be made. At least 14 days prior to the meeting, staff will mail written notice of the time and place of the meeting to property owners, which is scheduled for April 6, 2004, including a general explanation of the matter to be considered to any interested party who files a written request with the City for mailed notice of the meeting on new or increased fees or service charges. In addition, data indicating the amount of cost, or estimated cost, required to provide the service for which the proposed increased fees are levied and the revenue sources anticipated to provide the service, including General Fund revenues, which is contained in the attached Engineer's Report, shall be available at the office of the City Clerk consistent with Health and Safety Code Section 5471 and Government Code Sections 66013 and 6601 6. The proposed fee updates are exempt from Proposition 21 8 (see California Constitution, Article 13D, Section 6(5)(c)). Page 2 of Agenda Bill No. 17 I 538 Sewer Benefit With the City Council's two-thirds vote of approval, the modification of the fees for Sewer Benefit Area H will become effective 30 days after adoption of Ordinance No. NS--699 . Initial 1990 Current Recommended Sewer Benefit Sewer Benefit Sewer Benefit The attached Engineer's Report, dated January 2004, includes a Sewer Benefit Area boundary map on Figure 1 of the report. Sewer Benefit Area H is divided into sewer drainage zones. These drainage zones were created to serve portions of Local Facilities Management Zones (LFMZ) 6, 10, and 18, and all of LFMZ 17. The fee area includes every parcel within the boundaries of Sewer Benefit Area H, which is defined as all parcels in sewer drainage zones 6B, 10A, 10B, 1 OC, 17A, 17B and 18B. The Engineer's Report describes the improvements to be funded, provides a detailed estimate of current cost for the improvements, apportions the costs to the properties within Sewer Benefit Area H and establishes a schedule of fees to be collected. Area H Table 1 reflects the differing improvement obligations required by Sewer Benefit Area H. The initial, current as of September 1, 2003, and recommended fees are as follows: Area Fee Area Fee Area Fee $51 4/EDU $698/EDU $808/EDU This proposed recommended fee will be adjusted in the future based on changes in the construction cost index as reported by the Engineering News Record for the Los Angeles area. The fees may also be adjusted in the future based on changes in development, such as density changes resulting from a general plan amendment or an unexpected increase in construction costs. Adjustments of this latter type will require approval by a two-thirds vote of the City Council at a duly noticed public meeting, and adoption of a new ordinance. Existing residences, located within Sewer Benefit Area H are excluded from the payment of the Sewer Benefit Area fee. If the cost of the improvements constructed by a developer exceeds the fee obligation for the development for which the improvements were constructed, the developer is eligible for a reimbursement of the difference from the proceeds of the Sewer Benefit Area fee program. Such reimbursement will occur in accordance with established City policy at the time the reimbursement is requested. One existing reimbursement agreement has been approved by the City Council with Continental Residential, Inc., on April 14, 2000 to construct the Poinsettia Lift Station, the forcemain, and a portion of the gravity flow sewer pipelines. It is anticipated that one additional reimbursement agreement will be prepared for Morrow Development to construct the remaining gravity flow sewer pipelines. Property owners within the affected boundary were contacted and presented the Engineer's Report to obtain input from the property owners regarding Sewer Benefit Area H fee increase. These include owners of Bressi Ranch Development, Villages of La Costa "The Greens", and Rancho Carrillo developments. Comments were received in January 2004. ENVIRONMENTAL IMPACT: The Sewer Benefit Area fee program was reviewed under Environmental Impact Assessment No. 90-04 and a Negative Declaration was issued, finding that no environmental impact will occur as a result of the Sewer Benefit Area fees. Since the initial engineering report, dated August 1990, the project has been reduced in size because the number of equivalent dwelling units (EDU's) have been reduced from 4,836 to the updated EDU's of 4,145. This reduction in EDU's has correspondingly reduced the size of some of the pipelines and the Poinsettia Lane Lift Station. Individual environmental reviews were performed on the various pipeline reaches and Poinsettia Lift Station as they impacted land development projects, and these projects were approved through environmental impact reports. Page 3 of Agenda Bill No. 17 J 538 FISCAL IMPACT: Sewer Benefit Area H will generate that portion of the revenue allocable to the undeveloped properties within Sewer Benefit Area H, which are needed to reimburse developers for the oversizing cost of constructing the sewer facilities described in the Updated Fee Study Report. The total estimated cost of the sewer facilities is $3,257,000. All of the pipeline reaches have already been or will be constructed by developers except sewer pipeline Reach VBTl B. The remaining pipeline, Reach VBTl B, is being removed from Sewer Benefit Area H because it will not serve any new development, but will be constructed by the City using Sewer Replacement Funds. Approval of the plans and specifications and construction of Reach VBTl B will be submitted to the City Council for their consideration in the future. EXHIBITS: 1. Adopt Resolution No. 2004-081 approving the Engineer's Report, declaring the City's intention to increase the fees for Sewer Benefit Area H, and setting the public hearing to consider adoption of increased fee. 2. Introduce Ordinance No. NS--699 adding Section 13.1 0.080 to the Carlsbad Municipal Code to increase fees in Sewer Benefit Area H. 3. Engineer's Report entitled, "City of Carlsbad Updated Fee Study Report for Sewer Benefit Area H", dated January 2004, including the Sewer Benefit Area Boundary Map attached as Figure 1 to the report. DEPARTMENT CONTACT: Bill Plummer, (760) 602-2768, bDlum@ci.carlsbad.ca.us 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2004-081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE ENGINEER’S REPORT, DECLARING THE CITY’S INTENTION TO INCREASE THE FEES FOR SEWER BENEFIT AREA H, AND SETTING THE PUBLIC HEARING TO CONSIDER ADOPTION OF INCREASED FEE. WHEREAS, the City Council of the City of Carlsbad, California, is considering the update and modification of the fees authorized to be levied and collected within Sewer Benefit Area H; and WHEREAS, the City Council initially imposed Sewer Benefit Area Fees by Resolution No. 31 -21 in January 1991 ; and WHEREAS, the City Council may update and modify the fees for Sewer Benefit Area H by a two-thirds approval of an ordinance consistent with Health and Safety Code Section 5471 and Government Code Sections 6601 3 and 6601 6; and WHEREAS, any increase in the Sewer Benefit Area H fees which may resultfrom the update and modification of the existing fees is not subject to Article Xlll D of the California Constitution; and WHEREAS, at this time there has also been submitted a Report of the Engineer entitled ‘Updated Fee Study Report for Sewer Benefit Area H”, dated January 2004, hereinafter referred to as “Report”, said Report generally setting forth the following: Boundary map of area of benefit; Description of proposed public improvements; Updated estimate of cost for said improvements; Method and apportionment for distribution of costs based upon benefits received A. B. C. D. from the proposed public improvements; and WHEREAS, at this time the City Council of the City of Carlsbad, California, is now ready to approve the Report as submitted by the Engineer and to consider the proposed update and modification of the Sewer Benefit Area H fees. Yl Yl 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That this City Council does hereby declare its intention to proceed to authorize the update and modification of the fees authorized to be levied and collected within Sewer Benefit Area H, by adopting Ordinance No. NS-699 for the purpose of financing the costs and expenses relating to certain public improvements in Sewer Benefit Area H. A general description of the improvements to be funded is as follows: This fee update is only applicable to Sewer Benefit Area H, which is tributary to the Vallecitos Interceptor Sewer. The sewer facilities include the construction of an interceptor sewer consisting of numerous pipeline reaches and the Poinsettia Lift Station. The pipeline reaches include a 12-inch diameter gravity flow pipeline in Poinsettia Lane from Alicante Road to a point 1,320 feet east (VBT1 A, VBTlC, and VBTlD), a 12-inch diameter forcemain from Poinsettia Lift Station to El Camino Real (VBT1 G), a 12-inch diameter and 1 0-inch diameter gravity flow pipeline in Alicante Road north 2,256 feet (VBTIE), and an 8-inch diameter gravity flow pipeline in Alicante Road from Poinsettia Lane south to Lapis Road (VBT1 F). The improvements also include right-of-way acquisition costs, engineering, contract administration, construction engineering, construction inspection, and mitigation measures. REPORT SECTION 3. The Report, titled City of Carlsbad, Updated Fee Study Report for Sewer Benefit Area H, January 2004, as submitted by the Engineer, is hereby approved and adopted by this City Council and shall be kept on file in the Office of the City Clerk and remain open for public inspection. MAP SECTION 4. That a map of the Sewer Benefit Area H, showing the boundaries and area of benefit to be charged to pay the costs and expenses of the improvements designated as "SEWER BENEFIT AREA H" is included as Figure 1 to the Report, and the same is hereby approved and adopted. Ill Ill Resolution No. 2004-081 page 2 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COST ESTIMATE SECTION 5. The cost estimate, as set forth in the Report of the Engineer, reflects the total updated estimated costs for the improvements, and the method of fee allocation represents a fair method of allocation of the costs to the area of benefit. The updated estimated cost of the improvements is $3,257,000. COST ALLOCATION SECTION 6. The above fees, as set forth in the Report of the Engineer, shall be applicable to all property within Sewer Benefit Area H, except for parcels with existing building permits that are exempt from the fee, and said fees shall be payable as a condition of issuing a building permit for the property and portions of the property to be developed. The Benefit Area Fees shall be adjusted annually, effective September 1, according to the change to the Engineering News Record Los Angeles Construction Cost Index (Index) with a base year index as of April 1, 2004. The City Council further finds that adjusting the fee annually according to this Index most accurately reflects the increased construction costs associated with the improvements and that by using this Index the fees shall not exceed the reasonable future construction costs and the fees will not be used for general revenue purposes. Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Resolution No. 2004-081 page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 7. For any and all information relating to these proceedings, your attention is directed to the below designated person: WILLIAM E. PLUMMER DEPUTY CITY ENGINEER CITY OF CARLSBAD 1635 FARADAY AVENUE CARLSBAD, CA 92008 TELEPHONE: (760) 602-2768. At least fourteen (14) days prior to the public meeting to consider approval of the increase in fees for Sewer Benefit Area H, staff will mail written notice of the time and place of the public meeting, including a general explanation of the matter to be considered to any interested party who files a written request with the City for mailed notice of the meeting on increased fees. SECTION 8. The public hearing to consider adoption of the Sewer Benefit Area H fee increase shall be held on April 6, 2004 at the Council Chambers of the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Couqil held on the 9th dayof March ,2004 by the following vote, to wit: '-._ AYES: Council Members Lewis, Finnila, Kulchin, Hall, and Packard ATTEST LmAIN M. WOOD, City Clerk B Resolution No. 2004-081 page 4 (SEAL) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. NS-699 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADDING SECTION 13.1 0.080 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 facility improvements; 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 collect 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 report, at least annually, and within sixty (60) days of the close of the fiscal year, determining the beginning and ending balances for the fiscal year and the fees, interest and other income and amount of expenditure on each public facility. The fees deposited in the fund or funds shall not be commingled with any other fees or revenue of the City. The Finance Director is further directed to make this information available to the public and to report to the City Council not less than fifteen (1 5) days after making said information available to the public. The Finance Director shall monitor these 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 iecessary and needed for the purpose to which the fee is to be expended and demonstrate a *easonable relationship between that fee and the costs of the improvements. NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ordain as iollows: 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 thirty (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." Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ordinance No. NS-699 page 2 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the 3ty Clerk shall certify the adoption of this ordinance and cause it to be published at least once in 3 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 ,2004, and thereafter, 9th dayof March PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the day of , 2004 by the following vote, to wit: AYES: NOES: ABSENT: CLAUDE A. LEWIS, Mayor ATTEST LORRAINE M. WOOD, City Clerk APPROVED AS TO FORM AND LEGALITY (SEAL) RONALD R. BALL, City Attorney Ordinance No. NS-699 page 3 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 2 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 3 eastern boundary of MP 178A and is labeled reaches VBTID, VBTlC and VBTIA. A third gravity sewer pipeline connects to reach VBTlE at Alicante Road and extends south in Alicante Road to Lapis Road (North). This third pipeline is labeled VBTI F. Subsequent to the preparation of the original fee report, pipeline reach VBTIB, 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. VBTIB will replace the existing La Golandrina Lift Station, which presently pumps the wastewater to Leucadia Wastewater District. Funding for Reach VBTIB 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, IOA, IOB, lOC, 17A, 17B, 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 -21 9 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. 4 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 VBTlB 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 VBTIB through sewer replacement funds. The City is funding VBTlB 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 VBTl A, VBTl C, and VBTl D. Morrow Development will also be reimbursed for oversizing sewer pipeline reaches VBTlE and VBTlF. Each 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. 5 SEWER BENEFIT AREA “H” FEE CALCULATION Total Existing EDU’s Tributary to MP 139F 1758 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 MPl39F divided by the total number of existing and future EDU’s in Sewer Benefit Area “H”. This calculation is shown in Table 1. Total Future EDU’s in Sewer Benefit Area “H” 2276 TABLE 1 Estimated Cost Share of Sewer Facilities for Development Outside of Current SBA “H” Fee $698/E DU MP 139F and Within Sewer B Total EDU’s Proposed SBA “H” Fee $1,838,000 / 2,276 EDU’S = $808/EDU Developer Continental in Sewer Benefit Area “H” less Cost to be Reimbursed to Developer (a) Percent Share Developer Receives of SBA “H” Fees Collected $2,978,500 $2,978,500 / $3,257,000 x 100 = 91.45 Yo subarea 6B 4034 I DeveloDment I I 8.55 YO I mefit Area “H” Percent Share Homes, Inc. Morrow of Total Project Cost for area outside $278,500 $278,500 / $3,257,000 x 100 = MP 139 F 2276/4034 x Homes, Inc. Morrow 1 OOYo= 56.42% $278,500 $278,500 / $3,257,000 x 100 = Cost Share of Sewer Benefit Area “H” out side MP 139F $3,257,000 = $1,838,000 56.42% X DeveloDment 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 B. The updated sewer benefit area H” fee is shown in Table 2 8.55 Yo Table 2 ComDarison of Existina and ProDosed Sewer Benefit Area “H” Fee 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. (a) Refer to Appendix “D” for derivation of costs shown. 6 APPENDIX A SEWER BENEFIT AREA H FACILITY LOCATION AND BOUNDARY MAP 7 a, c 0 N a, 0, m c .- 2 n L $ a, H -i APPENDIX B ESTIMATED EQUIVALENT DWELLING UNITS IN SEWER BENEFIT AREA H 9 ts in Sewer Ber !fit Area H Estirr rted Numbe of Equivalei : Dwelling Ur 1341 53 ils 1,869. All others 41 44.73 are future 2757 46.20 Total Industrial/ Commercial LFMZ 6B Description CT 73-29 Residential 111 Institutional 111.00 1 OA CT 99-03 Lot 1 Lot 5 Lot 6 72 72.00 17.00 96.00 17 96 1 OB 1 oc CT 99-03 Lot 7 CT 02-22 CT02-23 MP 178A PA- 1 PA-2 PA-3 PA-4 PA-6 PA-1 0 MP 178A PA-5 PA-7 PA-8 PA-9 PA-1 1 PA-1 2 PA-1 3 PA-1 4 PA-1 5 14.2 127 75 82 141.20 75.00 82.00 17A 18.81 206.97 353.63 331.06 18.81 206.97 353.63 331.06 64.00 86.00 64 86 17B 21 0.68 72.14 8.28 67.96 21 0.68 99.00 98.00 72.00 10.00 94.00 72.14 8.28 67.96 99 98 72 10 94 - I 15 18B MP 139F WD (b) 1663 80 1678.00 80.00 (a) Existing EDU’s are shown in bold type andto and totals 2,276. (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”. 10 APPENDIX C ESTIMATED EQUIVALENT DWELLING UNITS FOR FUTURE INDUSTRIAL, COMMERCIAL, AND INSTITUTIONAL DEVELOPMENT IN SEWER BENEFIT AREA H 11 Estimated Equivalent Dwelling Units for Industrial, Commercial and (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 building 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 pool 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. 12 APPENDIX D UPDATED PROJECT COST ESTIMATE 13 PROJECT COST ESTIMATE FOR SEWER BENEFIT AREA H Construction Cost (based on engineer’s estimate) 1 Gravity Sewer VBTl E 16 PVC 51 LF @ $53/LF Morrow Development $2,700 2 12 PVC 3,097 LF @ $36/LF 10” PVC 995 LF @ $30/LF Manholes 14 EACH @ $3500/EA Gravity Sewer VBTl F 8 PVC 1,274 LF @ $25/LF 11 1,500 29,900 49,000 31,900 I Manholes 4 EACH @ $3500/EA Total Construction Cost 14,000 $239.000 14 Design Consultant (1 0% of Construction Cost) Overhead Costs (4% of Construction Cost) Construct ion Administration (2.5% of Construct ion Cost) Total Cost: Total Sewer Benefit Area H Project Cost ’ 231900 9,600 6,000 $278,500 $3,257,000