HomeMy WebLinkAbout2022-12-06; City Council; ; Adoption of Hydraulic Modeling FeesCA Review ___AF___
Meeting Date: Dec. 6, 2022
To: Mayor and City Council/President and Board Members
From: Scott Chadwick, City Manager/Executive Manager
Staff Contact: Dave Padilla, Utilities Engineering Manager
dave.padilla@carlsbadca.gov, 442-339-2356
Shoshana Aguilar, Senior Management Analyst
shoshana.aguilar@carlsbadca.gov, 760-814-0241
Subject: Adoption of Hydraulic Modeling Fees
Districts: All
Recommended Actions
Hold a public hearing and:
1. Adopt a resolution of the City Council of the City of Carlsbad establishing fees for
hydraulic modeling services for the wastewater collection system.
2. Adopt a resolution of the Board of Directors of the Carlsbad Municipal Water District
establishing fees for hydraulic modeling services for the water and recycled water
system.
Executive Summary
The potential hydraulic impacts on utility systems resulting from proposed development
projects are evaluated by a hydraulic modeling consultant using a computer model of a utility
pipe network. The current practice for development project reviews is to have a developer’s
hydraulic modeling consultant conduct the analysis, often using computer models that do not
adequately characterize a project’s impacts on water, recycled water and wastewater systems.
The Utilities Department staff now have the capability to conduct hydraulic modeling using the
services of an independent consultant and an updated and calibrated hydraulic model of the
water distribution system. This is necessary to identify and mitigate the potential hydraulic
impacts on utility systems resulting from development projects.
Staff are recommending establishing a new set of service fees to charge developers for
hydraulic modeling and staff review expenses.
The City Council and the Carlsbad Municipal Water District Board of Directors1 voted on Nov. 8,
2022, to schedule a public hearing on the matter under California Government Code sections
1 The CMWD Board approved the water-related fees contained in the city’s Master Fee Schedule through
Resolution No. 1674 on June 14, 2022.
Dec. 6, 2022 Item #11 Page 1 of 11
JOINT CI TY c,o u NCIL AND
CARLSBAID ,MUNICI PA l WATER DISTRI CT
Staff Report
66016-66019. The Building Industry Association of Southern California had requested
notification regarding new fees and has been notified.
Discussion
Background
The potential hydraulic impacts on utility systems resulting from proposed development
projects are evaluated by a hydraulic modeling consultant using a computer model of a utility
pipe network. (Hydraulic refers to liquid moving in a confined space under pressure.)
This model predicts pipe flow velocity and pressure under the added hydraulic demands of
development projects.
As described in the city’s engineering standards, new developments may be required to
conduct hydraulic analyses and produce impact studies to determine system capacity and any
improvements needed to meet a project’s demands. The cost of this analysis should be borne
by the developers creating the need.
The developers’ hydraulic modeling consultant have been conducting this analysis, often using
simplified and uncalibrated or outdated computer models that fail to adequately measure their
projects’ impacts.
The analyses conducted by consultants also do not account for recent changes to the water
system resulting from development, or from the city and water district’s capital improvement
projects. These models are insufficient to adequately assess the hydraulic impacts of proposed
development projects and to identify pipe segments that may require the developer to increase
the capacity of a pipe to accommodate the new flow.
Updated model of system
The new hydraulic model of the potable water distribution system was built by Innovyze, a
leading software developer in the water industry, using CMWD’s GIS-based pipe network. The
model was calibrated by Kennedy Jenks, CMWD’s hydraulic modeling consultant, using system-
wide hydraulic demands from metered water consumption data. The cost to build and calibrate
the hydraulic model is an operational cost and is not included in the proposed fees.
This new model will provide a more accurate analysis of the water distribution system’s
capacity in identifying any improvements needed to convey potable water to development
sites, in accordance with the city’s engineering standards and California’s Subdivision Map Act,
which gave local agencies control over subdivisions.
Staff propose to task the consultant with modeling the hydraulic demands of new
developments based on the project’s development density and type, the water generation
factors contained in the Water Master Plan and fire flow requirements of adopted city fire
codes and standards. This will ensure an unbiased analysis of the potential hydraulic impacts
using the latest water distribution system model. The analysis will be able to identify any pipe
segments that cannot meet the required hydraulic design criteria, which are flow rate and
pressure, due to deficient pipe diameters or inadequate water system redundancy.
By establishing a new set of service fees, staff will be able to charge developers for the
hydraulic modeling and staff review expenses. The independent hydraulic modeling consultant
would bill the Utilities Department or Carlsbad Municipal Water District directly, and the actual
Dec. 6, 2022 Item #11 Page 2 of 11
costs for consultant fees would be passed on to the developer. The proposed fee would include
staff time for review and processing of the consultant’s work at rates established in the most
recent City Council-approved cost-of-service study.
Basis for potable water modeling fee
The cost to conduct hydraulic modeling varies with the size of a project and the complexity of
the water system, and staff recommend recovering the cost based on the consultant’s actual
billings. Maintaining the model with the help of a contracted consultant to reflect changes in
the water distribution system would ensure reliability and confidence in the modeling results.
The end results are that developers can have their projects approved with confidence that their
water demands will be met and that deficient pipe segments would be replaced when hydraulic
impacts are identified, in compliance with CMWD Ordinance No. 47,2 the city’s engineering
standards and the Subdivision Map Act.
A companion processing fee could also be established for staff time to review consultant work.
At present, staff costs for water hydraulic modeling or review are not recovered by
development review fees. The proposed processing fees, described in more detail below, are
based on the city’s most recent cost-of-service study, which was adopted by the City Council in
2021. Staff review of hydraulic modeling results ensures that no project moves forward without
available water system capacity for the proposed development.
Basis for recycled water and wastewater modeling fees
There is currently no need for recycled water hydraulic modeling because the distribution
system is in its final stages of build-out, in accordance with the Recycled Water Master Plan and
the associated hydraulic modeling. The recycled water distribution system has fewer customer
connections and smaller demands than the potable system’s domestic and firefighting
demands. The fee structure established by the recommended action will apply when hydraulic
modeling is necessary to evaluate recycled water demands not previously evaluated in the
Recycled Water Master Plan.
Wastewater hydraulic modeling also involves a complex pipe network and sewer generation
rates and, with the exception of capital improvement project design, is currently performed by
a developer’s consultant. While the Utilities Department does not currently charge for
wastewater hydraulic modeling by the city’s consultant, staff propose to establish this fee at
the actual cost to evaluate new developments or those that propose a zoning change or higher
development density that differs from the Sewer Master Plan, as updated in 2019, that would
result in increased rates of sewer generation.
A processing fee will also be established for staff time to initiate consultant tasks and review
their work.
Proposed fee structure
This proposed fee structure is similar to the Community Development Department’s fees for
“third party review-consultant cost,” which is billed at actual cost and can be found in the fiscal
year 2022-23 Master Fee Schedule. A processing fee will be charged for each third-party review
for determination of modeling scope, engineering review and processing consultant billings.
2 CMWD Ordinance No. 47 defined and established the prices and conditions of water delivery, and provided the
method of establishing and fixing rates and charges for water delivered and for the extension of CMWD’s facilities.
Dec. 6, 2022 Item #11 Page 3 of 11
These fees will apply when new or increased hydraulic demands not previously accounted for in
City or CMWD master plan studies or system hydraulic models are proposed.
Fee name Fee
type Notes Hours@rate Fee/deposit
Third-party hydraulic modeling-
consultant cost
Per
project 1, 4 Actual cost
Water
System pressure check Each 2 1.5@$217 $326
1-4 units residential and commercial
greater than 9,400 square feet
Per
project 2, 3 3.0@$217 $651
All others Per
project 2, 3 5.0@$217 $1,085
Recycled water
System pressure check Each 2 1.5@$201 $302
1-4 units residential and commercial
greater than 9,400 square feet
Per
project 2, 3 2.5@$201 $503
All others Per
project 2, 3 5.0@$201 $1,005
Wastewater
1-4 units residential and commercial
greater than 9,400 square feet
Per
project 2, 3 2.0@$191 $382
All others Per
project 2, 3 4.0@$191 $764
1. Set by city policy
2. Set by 2021 Cost-of-Service Study
3. Staff cost is in addition to actual consultant billings
4. Total fee will reflect actual consultant billings
Dec. 6, 2022 Item #11 Page 4 of 11
Other cities and water agencies also charge developers for hydraulic modeling. In some cases,
deposit accounts are used, and costs for third party modeling and engineering staff review may
be withdrawn from the accounts. The table below shows how some other agencies bill:
Agency Fee Fee basis
City of Oceanside Varies, $2,626 to over
$10,662 Based on number of units
Ramona Municipal Water District $2,000 Deposit plus time and
materials
San Dieguito Water District
(Encinitas) $1,000 Deposit plus time and
materials
Vallecitos Water District (San
Marcos and a portion of Carlsbad) $600 to $2,500 Deposit plus time and
materials
Vista Irrigation District $1,140 Flat fee
Options
Staff provide the following options for consideration by the City Council and the CMWD Board:
1. Hold a joint public hearing of the City Council of the City of Carlsbad and the Board of
Directors of the Carlsbad Municipal Water District and adopt resolutions establishing
hydraulic modeling fees
Pros:
• Provides a mechanism for cost recovery of consultant hydraulic modeling costs and
staff costs for review and processing
• Will allow for an independent evaluation of hydraulic impacts resulting from
development projects using the latest, calibrated hydraulic model
• Conforms with the process described in the city’s engineering standards for
development project review and processing
• Should decrease staff time for review of hydraulic studies and the number of
submittal iterations for developers
Cons:
• Developers will have to familiarize themselves with a new process
• Developers will be billed for the Utilities Department staff’s time
2. Do not conduct a public hearing or do not adopt resolutions establishing hydraulic modeling
fees
Pros:
• Developers will continue to contract directly with a consultant for hydraulic
modeling services
Cons:
• Does not provide a mechanism to recover staff costs for review and processing of
hydraulic studies
• Costs for review and processing of hydraulic studies are not borne by the developer
Dec. 6, 2022 Item #11 Page 5 of 11
• Continues the iterative review process for staff review of studies that does not
conform with the city’s engineering standards
• Hydraulic studies will continue to use models that do not adequately characterize
potential impacts on utility systems resulting from development projects
Staff recommend Option 1 for the City Council’s and the CMWD Board’s approval.
Fiscal Analysis
There will be no net revenue or expense associated with the consultant cost because that fee
will reimburse the city and CMWD at the actual cost. Staff time will be recovered at the full cost
of service which includes direct and indirect costs as calculated in the city’s most recent cost-of-
service study.
Based on past reviews, staff estimate up to 50 hydraulic modeling results could be reviewed
annually. Based on historical trends, if the City Council and the CMWD Board adopt the
hydraulic modeling fees, annual revenue is estimated at $48,800, which would be routed to the
operating fund responsible for hydraulic modeling costs. These fees may offset project costs in
water, recycled water or wastewater.
Next Steps
If the City Council and the CMWD Board wish to establish the hydraulic modeling fees as
recommended by the staff and adopt the resolutions in Exhibits 1 and 2, the fees will go into
effect no sooner than 60 days after adoption, in accordance with California Government Code
Section 66017, or Feb. 4, 2023.
Environmental Evaluation
This action does not constitute a project within the meaning of the California Environmental
Quality Act under Public Resources Code section 21065 in that it has no potential to cause
either a direct physical change in the environment or a reasonably foreseeable indirect physical
change in the environment and therefore does not require environmental review.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act, and it was available for
public viewing and review at least 72 hours prior to the scheduled meeting date. In addition,
notices on the proposed fee changes were published in a newspaper of general circulation and
sent to the Building Industry Association of Southern California.
Exhibits
1. City Council resolution
2. CMWD Board resolution
Dec. 6, 2022 Item #11 Page 6 of 11
RESOLUTION NO. 2022-276
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING FEES FOR WASTEWATER COLLECTION SYSTEM
HYDRAULIC MODELING SERVICES
WHEREAS, the City Council received a report from staff on hydraulic modeling services on Nov.
8, 2022, and scheduled a public hearing for Dec. 6, 2022; and
WHEREAS, the City Council has determined the cost of providing hydraulic modeling services
for the wastewater collection system; and
WHEREAS, the City Council finds it necessary to recover the costs for these city services; and
WHEREAS, the City Council has held the necessary public hearing and allowed for public
comment on the establishment of said fees.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the fees shown in Attachment A are established and will be incorporated into the
Master Fee Schedule. The fees shall become effective on Feb. 4, 2023.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 6th day of December, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
MATT HALL, Mayor
for
Exhibit 1
Dec. 6, 2022 Item #11 Page 7 of 11
Yt'v
Attachment A
Attachment A to Exhibit 1-Hydraulic Modeling Fees
Fee Name Fee Type Notes Fee/Deposit
Third-Party Hydraulic Modeling-consultant cost per project 1, 4 Actual Cost
Wastewater
1-4 units residential and
commercial > 9,400 s.f. per project 2, 3 $382
All others per project 2, 3 $764
[1] Set per city policy
[2] Set per 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings
[4] Total fee will reflect actual consultant billings
Dec. 6, 2022 Item #11 Page 8 of 11
RESOLUTION NO. 1690
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,
ESTABLISHING FEES FOR WATER AND RECYCLED WATER SYSTEM
HYDRAULIC MODELING SERVICES
WHEREAS, the Board of Directors of the Carlsbad Municipal Water District, or CMWD, approved
the water-related fees contained in the city's Master Fee Schedule through Resolution No. 1674 on
June 14, 2022; and
WHEREAS, the CMWD Board of Directors received a report from staff on hydraulic modeling
services on Nov. 8, 2022, and scheduled a public hearing for Dec. 6, 2022; and
WHEREAS, the CMWD Board of Directors has determined the cost of providing hydraulic
modeling services for the water and recycled water systems; and
WHEREAS, the CMWD Board of Directors finds it necessary to recover the costs for these city
services; and
WHEREAS, the CMWD Board of Directors has held the necessary public hearing and allowed for
public comment on the establishment of said fees.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors
of the City of Carlsbad, California, as follows:
1.That the above recitations are true and correct.
2.That the fees shown in Attachment A are established and will be incorporated into the
Master Fee Schedule. The fees shall become effective on Feb. 4, 2023.
Exhibit 2
Dec. 6, 2022 Item #11 Page 9 of 11
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District of the City of Carlsbad on the 6th day of December, 2022, by the
following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
MATT HALL, President
for
J,._,, FAVIOLA MEDINA, City Clerk Services Managerr/-(SEAL)
Dec. 6, 2022 Item #11 Page 10 of 11
Attachment A
Attachment A to Exhibit 2-Hydraulic Modeling Fees
Fee Name Fee Type Notes Fee/Deposit
Third-Party Hydraulic Modeling-consultant
cost per project 1, 4 Actual Cost
Water
System Pressure Check each 2 $326
1-4 units residential and commercial > 9,400
square feet (s.f.)per project 2, 3 $651
All others per project 2, 3 $1,085
Recycled Water
System Pressure Check each 2 $302
1-4 units residential and
commercial > 9,400 s.f.per project 2, 3 $503
All others per project 2, 3 $1,005
[1]Set per city policy
[2] Set per 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings
[4] Total fee will reflect actual consultant billings
Dec. 6, 2022 Item #11 Page 11 of 11
Public Hearing for New Hydraulic
Modeling Fees
Vicki Quiram, Utilities Director/General Manager
Shoshana Aguilar, Senior Management Analyst
December 6, 2022
Ccarlsbad
Municipal Water District
( City of
Carlsbad
RECOMMENDED ACTIONS
1.Adopt a resolution of the City Council of the City of Carlsbad
establishing fees for hydraulic modeling services for the
wastewater collection system.
2.Adopt a resolution of the Board of Directors of the Carlsbad
Municipal Water District establishing fees for hydraulic modeling
services for the water and recycled water system.
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
BACKGROUND
Current practice:
•Developer’s hire engineers to determine water
demand and wastewater flow and to study whether
Carlsbad has sufficient infrastructure capacity to
serve the development.
•Hydraulic models used are not standardized or up to
date and can be inaccurate.
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
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Figure 4 Ccarlsbad
Municipal Water District
(cityof
Carlsbad
BACKGROUND
Proposed practice:
•Utilities partnered with a third-party to update
and calibrate hydraulic models to accurately
determine development impacts to water and
wastewater service
•Moving forward, developers will have their
projects evaluated by the third-party engineering
firm using the new hydraulic models
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
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Ccarlsbad
Municipal Water District
(cityof
Carlsbad
FEE STRUCTURE
Proposed practice:
•Third-party hydraulic modeling fees will be charged to
developers (actual cost)
•Fee for staff review and processing of consultant’s work
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
•Estimated 50 hydraulic modeling studies per year
•Estimated annual revenue for staff time: $48,800
•Deposited to the applicable operating fund to
recover staff time cost
FISCAL ANALYSIS
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
•Consider adopting the hydraulic modeling fees into
the FY 2022-23 Master Fee Schedule
•If adopted, the fees will be effective no sooner than
60 days after adoption (Government Code § 66017),
or Feb. 4, 2023.
NEXT STEPS
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
RECOMMENDED ACTIONS
1.Adopt a resolution of the City Council of the City of Carlsbad
establishing fees for hydraulic modeling services for the
wastewater collection system.
2.Adopt a resolution of the Board of Directors of the Carlsbad
Municipal Water District establishing fees for hydraulic modeling
services for the water and recycled water systems.
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
QUESTIONS
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
FEE STRUCTURE - WATER
Fee Name Fee type Notes Hours at rate Fee/deposit
Third-party hydraulic modeling-
consultant cost per project 1, 4 Actual Cost
Water
System pressure check each 2 1.5 at $217 $326
1-4 units residential and
commercial > 9,400 square feet per project 2, 3 3.0 at $217 $651
All others per project 2, 3 5.0 at $217 $1,085
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
[1] Set by city policy
[2] Set by 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings
[4] Total fee will reflect actual consultant billings
Ccarlsbad ( City of
Municipal Water District Carlsbad
FEE STRUCTURE – RECYCLED WATER
Fee Name Fee type Notes Hours at rate Fee/deposit
Third-party hydraulic modeling-
consultant cost per project 1, 4 Actual Cost
Recycled water
System pressure check each 2 1.5 at $201 $302
1-4 units residential and
commercial greater than 9,400
square feet
per project 2, 3 2.5 at 201 $503
All others per project 2, 3 5.0 at 201 $1,005
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
[1] Set by city policy
[2] Set by 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings
[4] Total fee will reflect actual consultant billings
Ccarlsbad ( City of
Municipal Water District Carlsbad
FEE STRUCTURE - WASTEWATER
Fee Name Fee type Notes Hours at rate Fee/deposit
Third-party hydraulic modeling-
consultant cost per project 1, 4 Actual Cost
Wastewater
1-4 units residential and
commercial greater than 9,400
square feet
per project 2, 3 2.0 at 191 $382
All others per project 2, 3 4.0 at 191 $764
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
[1] Set by city policy
[2] Set by 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings
[4] Total fee will reflect actual consultant billings
Ccarlsbad ( City of
Municipal Water District Carlsbad
TABLE FOOTNOTES
[1] Set by city policy
[2] Set by 2021 Cost-of-Service Study
[3] Staff cost is in addition to actual consultant billings
[4] Total fee will reflect actual consultant billings
Consultant (actual) cost = [1] and [4]
Staff costs = [2] and [3]
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
BACKGROUND
Computer models are used to simulate development
project hydraulic demands on:
•Water and recycled water distribution systems
•Wastewater collection system
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad
BACKGROUND
Development projects must evaluate impacts on utility
systems:
•Carlsbad Municipal Code, Title 13 - Sewers
•CMWD Ordinance No. 47
•Subdivision Map Act
•CEQA Guidelines
ITEM 11: Public Hearing to Establish Hydraulic Modeling Fees
Ccarlsbad ( City of
Municipal Water District Carlsbad