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RPVCCA_CC_SR_2015_06_16_01_FY15-16_Storm_Drain_User_Fee_RateCITY OFi�RANCHO PALOS VERDES PUBLIC HEARING Date: June 16, 2015 Subject: Public Hearing for FY 15-16 Storm Drain User Fee Rate Subject Property: Identified Properties 1. Report of Notice Given: City Clerk Morreale 2. Declare the Hearing Open: Mayor Knight 3. Staff Report & Recommendation: Director of Finance Cullen 4. Public Testimony: Applicant: N/A Appellant: N/A 5. Council Questions: 6. Rebuttal: 7. Declare Hearing Closed: Mayor Knight 8. Council Deliberation: 9. Council Action: Public Hearing Cover Page CITY OF MEMORANDUM RANCHO PALOS VERDES TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL }� , FROM: DEBORAH CULLEN, DIRECTOR OF FINANCEV---/ DATE: JUNE 16, 2015 SUBJECT: PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE REVIEWED: DOUG WILLMORE, CITY MANAGEROA AJ Staff Coordinators: Kathryn Downs, Deputy Director of Finance Ron Dragoo, PE, Principal Civil Engineer Andy Winje, PE, Senior Engineer RECOMMENDATION 1. Receive, review and file the independent 2015 Annual Report on the Water Quality and Flood Protection Program prepared by the Oversight Committee for the storm drain program, dated May 21, 2015 (see Exhibit A); 2. Conduct a public hearing pursuant to Health and Safety Code Section 5473.2 and Section 3.44.40 of the Rancho Palos Verdes Municipal Code on the Annual Report prepared by Harris & Associates, the user fee recommendations included in the Annual Report prepared by the Oversight Committee and information provided by Staff, and determine whether to collect the Storm Drain User Fee (the "Fee") for FYI 5- 16, and if so, the rate per Equivalent Residential Unit ("ERU") for FYI 5-16; 3. At the conclusion of the Public Hearing determine the existence or absence of a majority protest; 4. In the absence of a majority protest, Staff recommends that the Council determine that the rate per ERU for FY15-16 shall be $96.85 as set forth in the Annual Report, adopt the attached Resolution No. 2015 - ; A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING A REPORT, AS FILED, IN CONNECTION WITH THE STORM DRAIN USER FEE ESTABLISHED E PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE June 16, 2015 Page 2 of 8 PURSUANT TO CHAPTER 3.44 OF THE RANCHO PALOS VERDES MUNICIPAL CODE; DETERMINING THE AMOUNT OF SUCH FEE FOR FISCAL YEAR 2015-16; AND ORDERING THAT SUCH FEE BE COLLECTED ON THE COUNTY OF LOS ANGELES TAX ROLL FOR FISCAL YEAR 2015-16; and 5. In the event of a majority protest, direct Staff to present to City Council at a subsequent meeting a resolution determining the amount of the Storm Drain User Fee for FY15- 16 and providing for an alternative method of collecting the Storm Drain User Fee for FY 15-16. EXECUTIVE SUMMARY This public hearing was noticed in the Palos Verdes Peninsula News on June 41" and June 11t" The maximum Fee rate for FY15-16 has been calculated as $96.85/ERU, based upon a 0.1 % increase of the Consumer Price Index. The City Council may set the FY15-16 Fee rate at any amount between $0.00/ERU and $96.85/ERU. The Oversight Committee recommends the maximum Fee rate of $96.85/ERU for FY15-16 (based on a 3-2 vote). Staff also recommends the maximum Fee rate for FY15-16. The Oversight Committee reviewed the following documents: • Draft 2015 Five -Year Storm Drain Plan; Draft 2015 Five -Year Model excerpts for the General Fund, CIP Fund, and Water Quality Flood Protection (storm drain) Fund; Draft 2015 Five -Year Capital Improvement Plan excerpts for storm drain improvements; and The Rate Engineer's draft FY15-16 report including maximum Fee rate calculation. The proposed FY15-16 budget of $1,566,116 for the storm drain program includes: • Point repairs of $900,000; • Storm drain lining of $340,836; • Storm drain maintenance and minor repairs of $245,544; and • Administration of $79,736. In September 2015, the City Council will consider a request from Staff to carryover unspent appropriations for storm drain improvements. The FY14-15 budget for the storm drain program is $7,655,282. To date, a total of $3,842,762 has been spent or committed (contracts and purchase order amounts not yet invoiced). Therefore, Staff expects that the unspent appropriations to carryover may be $3,812,520 ($7,655,282 less $3,842,762). If City Council approves the carryover request and the proposed FY15-16 budget, then the total FY15-16 budget for the storm drain program will be $5,379,839. Upon inquiry from the Oversight Committee, Staff indicated that the storm drain projects could be completed in FY15-16 if there are no staffing vacancies. K PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE June 16, 2015 Page 3 of 8 FY15-16 is the last year of available Fee collection approved by voters; yet there is a total estimate of about $33.6 million of unfunded storm drain improvements, and likely millions more unfunded for water quality compliance. Staff recommends that the City collect the FY15-16 Fee, and proceed with a mail -ballot election of property owners in February - March 2016 to extend the Fee. BACKGROUND Fee and Oversiaht Committee Established In 2005, owners of properties utilizing the City's storm drain system approved the Fee, based upon a 30 -year plan for storm drain improvements, maintenance, and administration with estimated costs totaling about $50 million. In 2007, the City's voters approved a measure to sunset the Fee after 10 years, and establish an Oversight Committee of City residents to monitor annual expenditures of the program. Annual Duties The City's Municipal Code (Section 3.44.080) outlines the Committee's annual task "The committee shall hold at least one public hearing and issue a report, on at least an annual basis, to inform city residents and the city council regarding how storm drain user fee revenues are being spent and to make recommendations to the city council regarding future expenditures of the storm drain user fee revenues. In addition, the oversight committee shall make a recommendation to the city council regarding whether to collect the storm drain user fee for the upcoming fiscal year, and, if so, the rate per ERU for that fiscal year. In making its recommendation to the city council, the oversight committee shall consider the current and projected revenues of the city for the upcoming fiscal year, including but not limited to, property taxes, sales taxes and transient occupancy taxes; the current and projected expenditures of the city for the fiscal year, including, but not limited to, proposed expenditures in connection with the city's storm drain system; the balance, if any, in the water quality and flood protection program enterprise fund, and the current and projected general fund reserves. The oversight committee shall forward its report and recommendations to the city council prior to the annual public hearing on the storm drain user fee that will be conducted by the city council. " The Oversight Committee met on April 9, 2015 and May 7, 2015 to receive information about Fee collections, storm drain expenditures, planned expenditures for the next five years, and future storm drain and water quality needs that have not yet been funded. On May 21, 205, the Oversight Committee conducted its public hearing and developed its recommendation for the FY15-16 Fee rate. The City's Municipal Code (Section 3.44.040) requires the City Council to hold an annual public hearing, then determine whether to collect the Fee for the upcoming year and the K PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE June 16, 2015 Page 4 of 8 rate per ERU. The Municipal Code (Section 3.44.020) further states: "in any year the city council may do any and all of the following: (i) repeal this Chapter 3.44; (ii) reduce the rate per ERU for the storm drain user fee below the maximum rate; or (iii) increase the rate per ERU for the storm drain user fee up to or below the maximum rate if it has been previously set below such rate. In no event shall the city council increase the storm drain user rate per ERU in excess of the maximum rate without approval by a majority vote of the property owners subject to the storm drain user fee." History of Fee Rates and Collections Maximum Actual Staff currently estimates total Fee collections of $1,382,713 for FY14-15. DISCUSSION Ten -Year Program Results Ten-year program results include: • Completion of San Ramon Canyon stabilization and McCarrell Canyon drainage improvements; El Rate per ERU Rate per ERU FY06-07 $ 86.00 $ 86.00 FY07-08 $ 87.72 $ 87.72 FY08-09 $ 89.47 $ 89.47 FY09-10, $ 89.47 $ 89.47 FY10-11'; $ 90.72 $ 90.72 FY11-12,' $ 92.53 $ 92.53 FY12-13 $ 94.38 $ 92.53 FY13-14' $ 96.27 $ 96.27 FY14-15 $ 96.75 $ 96.75 Actual Collections FY06-07 $ 1,188,439 FY07-08 $ 1,221,825 FY08-09 $ 1,251,733 FY09-10 $ 1,263,572 FY10-11 $ 1,312,230 FY11-12 $ 1,319,109 FY12-13 $ 1,312,989 FY13-14 $ 1,360,907 Staff currently estimates total Fee collections of $1,382,713 for FY14-15. DISCUSSION Ten -Year Program Results Ten-year program results include: • Completion of San Ramon Canyon stabilization and McCarrell Canyon drainage improvements; El PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE June 16, 2015 Page 5 of 8 • Completion of many other drainage projects, such as those at Sunnyside Ridge, PVDE and La Vista Verde, the PVDE Switchbacks, Via Colinita, Miraleste Plaza, Seacove, Palos Verdes Bay Club, and Mossbank; • Rehabilitating and lining more than 15,000 linear feet of pipe; and • Performing cleaning and video inspection of all accessible and known City -owned storm drains. Some locations received multiple cleanings and inspections. To date, a total of $41.9 million of projects, maintenance and administration have been funded with: • Fee revenue of $11.6 million; • Grant revenue of $9.5 million; and • General Fund contributions of $20.8 million. The program has corrected many deficiencies in the City's storm drain system; however, more improvements are needed. City Financial Position The City Council is also scheduled to adopt the FY15-16 budget on the June 16th agenda. The complete proposed budget document, 2015 Five -Year Capital Improvement Plan, and 2015 Five -Year Financial Model have been included with the June 16th agenda materials. Following is a summary of the City-wide budget, along with actual and estimated balances for the General Fund, Capital Improvement Projects Fund, and Water Quality Flood Protection Fund. Revenue $33,957,481 As described below, there are significant capital demands on the City's resources that have not yet been programmed. The estimated Water Quality Flood Protection Fund balance at June 30, 2016 includes collection of the Fee for FY15-16. 5 PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE June 16, 2015 Page 6 of 8 Unfunded Storm Drain Imorovements The draft 2015 Five -Year Capital Improvement Plan identifies 4 storm drain projects that have not yet been funded. The total cost estimate ranges from $9.4 million to $14.4 million, with midpoints as follows. Altamira Canyon $ 3,475,000 Paintbrush Canyon 2,568,000 PVDE - Miraleste Canyon 2,850,000 San Pedro & Averill Canyons 3,000,000 Unfunded Projects (midpoint) $111,893,000 The 2015 Storm Drain Master Plan Update is in process of being finalized; and has identified estimated costs of about $15 million to correct hydrologic (direction of movement) and hydraulic (flow capacity) deficiencies in the City's storm drain system. In addition, 18,352 linear feet of Corrugated Metal Pipe (CMP) is in need of "urgent" lining (average through severe defects). If $4.8 million has been spent to date to line about 15,000 linear feet of pipe, then perhaps a preliminary cost estimate for "urgent" lining is roughly $6 million. The final Master Plan document is expected to be available in 2015. The information in the Master Plan and calculations of available funding will be used to determine the order and timing of when the projects can be constructed. The storm drain program also included the installation of catch basin filters to reduce pollution from the City's storm drains. There are about 1,300 catch basins in the City. The City may be required to install screens on all of them. About 200 have been completed; and 1,100 still need to be addressed with a cost estimate range of $600,000 to $900,000 (midpoint of $750,000). Currently identified unfunded storm drain needs may be summarized as follows. Unfunded Projects (midpoint) $11,893,000 Hydrologic & Hydraulic Deficiencies 15,000,000 "Urgent" Lining 6,000,000 Catch Basin Screens (midpoint) 750,000 Unfunded $33,643,000 Other Unfunded Capital Projects New projects that may be required to remain in compliance with the MS4 Water Quality Permit have a greater magnitude than what has been budgeted for this program in the past, and will require a funding mechanism beyond the General Fund. Except for the catch basin screens already installed, funds from this program have been historically spent only on construction or rehabilitation of flood control projects. 0 PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE June 16, 2015 Page 7 of 8 Water quality projects are relatively new and there is limited industrial data to determine costs. However, at the recent community outreach meeting of the Peninsula Watershed Management Group (May 6, 2015, slides available on the City's website), three potential regional projects (in addition to projects already underway in the various cities) were identified that could help the Peninsula cities achieve permit compliance. The City has not committed to these specific projects, but they show the type of work the City (and other Peninsula cities) will need to commit to over the next decade to meet storm water quality standards. The cost of these three projects was estimated between $90 and $130 million. The City's share has been estimated to be 40 to 45%. The draft 2015 CIP Unfunded Projects list includes infrastructure projects with total cost estimates ranging from $19.5 million to 26.8 million (midpoint of $23.1 million), not including storm drain projects. City Council goals include landslide mitigation, and the draft FY15-16 budget includes development of a landslide strategic plan. Staff expects that improvements associated with a landslide strategic plan will have cost estimates in the millions. As noted above, water quality compliance costs are also expected to have cost estimates in the tens of millions. Based on this information, the demand for capital projects may exceed the $23.7 million that may available in the CIP Reserve over the next five years (as estimated in the 2015 Five -Year Financial Model). Calculation of the Maximum FY15-16 User Fee Rate Per the Municipal Code (section 3.44.020), the maximum annual rate per Equivalent Residential Unit (ERU) is increased "by an amount equal to the change in the Consumer Price Index for all Urban Consumers for the Los Angeles, Riverside and Orange County areas (the "CPP), including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year, not to exceed a maximum increase of two percent per year." The increase of CPI is published as of each month-end. Therefore, the CPI increase for the twelve months ended February each year has been used to calculate the maximum Fee increase. The CPI increased by 0.1 % for the twelve months ended February 2015. Applying that same increase to the Fee, results in a maximum rate of $96.85 per ERU for FY15-16. The City Council may set the actual rate per ERU at any amount between zero and the maximum rate each year. The Oversight Committee (3-2) and Staff recommend the FY15-16 Fee rate be set at the maximum of $96.85/ERU. Exhibits Resolution No. 2015 - ; A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING A REPORT, AS FILED, IN CONNECTION WITH THE STORM DRAIN USER FEE ESTABLISHED PURSUANT TO CHAPTER 3.44 OF VA PUBLIC HEARING FOR FY15-16 STORM DRAIN USER FEE RATE June 16, 2015 Page 8 of 8 THE RANCHO PALOS VERDES MUNICIPAL CODE; DETERMINING THE AMOUNT OF SUCH FEE FOR FISCAL YEAR 2015-16; AND ORDERING THAT SUCH FEE BE COLLECTED ON THE COUNTY OF LOS ANGELES TAX ROLL FOR FISCAL YEAR 2015-16 (page 9) A — 2015 Annual Report on the Water Quality and Flood Protection Program dated May 21, 2015 (page 12) B — Annual Report for the Water Quality and Flood Protection Program Storm Drain User Fee FY2015-16, prepared by Harris & Associates, dated May 11, 2015 (page 36) RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING A REPORT, AS FILED, IN CONNECTION WITH THE STORM DRAIN USER FEE ESTABLISHED PURSUANT TO CHAPTER 3.44 OF THE RANCHO PALOS VERDES MUNICIPAL CODE; DETERMINING THE AMOUNT OF SUCH FEE FOR FISCAL YEAR 2015- 16; AND ORDERING THAT SUCH FEE BE COLLECTED ON THE COUNTY OF LOS ANGELES TAX ROLL FOR FISCAL YEAR 2015-16 THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS: Section 1. The City Council finds: A. Pursuant to Ordinance No. 418 of the City Council of the City of Rancho Palos Verdes (the "City Council"), adopted on August 16, 2005, and Chapter 3.44 of the Rancho Palos Verdes Municipal Code (the "Municipal Code"), the City Council is authorized to levy an annual Storm Drain User Fee on each parcel of real property in the City of Rancho Palos Verdes (the "City") that drains into City -maintained storm drain infrastructure. The Storm Drain User Fee is levied to fund the City's Water Quality and Flood Protection Program. B. Pursuant to Section 5473 of the California Health and Safety Code, the City elected in Ordinance No. 418 to have the Storm Drain User Fee collected for each fiscal year on the County of Los Angeles tax roll in the same manner, by the same person, and at the same time as, together with, and not separately from the general taxes of the City. C. A written report (the "Report") entitled, "Annual Report for the Water Quality and Flood Protection Program Storm Drain User Fee FY 2015-16" has been prepared by Harris & Associates and has been filed with the City Clerk. The Report contains a description of each parcel of real property in the City that drains into the City's storm drain system and the proposed amount of the Storm Drain User Fee for each such parcel for Fiscal Year 2015-16 (commencing July 1, 2015 and ending June 30, 2016), computed in conformity with Chapter 3.44 of the Municipal Code. Such Report is on file in the office of the City Clerk and incorporated herein by reference. D. The City Clerk caused notice of a hearing on the Report to be published in the Palos Verdes Peninsula News on June 4, 2015 and June 11, 2015. E. The City Council held a public hearing on the Report on June 16, 2015 (the "Public Hearing"). In addition, pursuant to Section 3.44.40 of the Municipal Code, at the Public Hearing the City Council considered whether to collect the Storm Drain User Fee for Fiscal Year 2015-16, and the rate per Equivalent Residential Unit ("ERU") for Fiscal Year 2015-16. In that regard, the City Council took into account the current and projected revenues of the City for Fiscal Year 2015-16, including but not limited to, property taxes, sales taxes and transient occupancy taxes; the current and R projected expenditures of the City for Fiscal Year 2015-16, including, but not limited to, proposed expenditures in connection with the City's storm drain system; the balance, if any, in the Water Quality and Flood Protection Program Enterprise Fund; and the current and projected General Fund reserves. In addition, the City Council took into account any report and recommendation submitted by the Oversight Committee established by the City Council in connection with the City's Water Quality and Flood Protection Program. F. All interested persons were given an opportunity to attend the Public Hearing and express opinions about the Report and the proposed levy of the Storm Drain User Fee for Fiscal Year 2015-16. The City Council heard and considered all protests and objections against the Report and all testimony regarding the proposed levy of the Storm Drain User Fee for Fiscal Year 2015-16. G. No majority protest against the Report, determined in accordance with Health and Safety Code Section 5473.2, exists. Section 2. The City Council hereby overrules all protests and objections; hereby approves and adopts the Report as filed; hereby determines that the Storm Drain User Fee for Fiscal Year 2015-16 against each parcel described in the Report shall be as described in the Report; and orders that the Storm Drain User Fee shall be collected for Fiscal Year 2015-16 on the County of Los Angeles tax roll in the same manner, by the same person, and at the same time as, together with, and not separately from the general taxes of the City. Section 3. The City Clerk is directed to file a copy of the Report, with a statement endorsed on the Report over the City Clerk's signature that the Report has been approved and adopted by the City Council, with the City Treasurer on or before August 10, 2015 pursuant to Section 4 of Ordinance No. 418. Section 4. The City Clerk is directed to file a copy of the Report, with a statement endorsed on the Report over the City Clerk's signature that the Report has been approved and adopted by the City Council, with the Auditor of the County of Los Angeles on or before August 10, 2015 pursuant to Section 5 of Ordinance No. 418. PASSED, APPROVED and ADOPTED this 16th day of June, 2015. ATTEST: City Clerk -2- Mayor 10 State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, CARLA MORREALE, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2015- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 16, 2015. City Clerk -3- Exhibit A 2015 ANNUAL REPORT ON THE WATER QUALITY AND FLOOD PROTECTION PROGRAM May 21, 2015 INTRODUCTION A voter proposition established this Oversight Committee and the Committee's duties were elaborated by the Rancho Palos Verdes (RPV) City Council in 2007. The Committee is instructed to annually review project expenditures and plans for the Water Quality and Flood Protection (WQFP) Program and to recommend a User Fee Rate for each fiscal year. The Committee currently consists of the following members: Elizabeth Sala (Chair) Yi Hwa Kim (Vice -Chair) Krista Johnson Frank Lyon Mickey Rodich The Committee met three times with the City's Finance and Public Works staffs in April and May. The Committee reviewed WQFP Program activities in FY14-15, as well as projects planned and budgeted expenditures proposed for FYI 5-16. Staff also provided the Committee with the proposed Storm Drain Plan through FY19-20, excerpts from the City's 2015 Five -Year Financial Model, the 2015 Capital Improvement Plan (CIP), and Staff's recommendation for the FYI 5-16 User Fee Rate. This report conveys the Committee's conclusions and recommendations in accordance with its responsibilities designated by the City Council on May 5, 2009 and documented in RPV Municipal Code Section 3.44.080. HISTORY OF COMPLETED PROJECTS During the years this Committee has been in operation since 2007, the Staff has annually projected five- year models for identifying and implementing a list of 38 needed storm drain and water quality projects. The total project costs for the 38 originally -listed projects have been roughly estimated at $46 million. The respective City Councils, with Staff advice, have set project priorities and implemented projects as funding was approved. Staff has advised the Committee that of the original 38 projects, 34 have been addressed (through construction or mitigation by another project) at a total cost of about $39.67 million. In rough order by dollar amount, the money for program initiatives that are completed or in progress has come from the City's General Fund ($18.6 million), from collections of the Storm Drain User Fee ($11.61 million), and from state and federal grants ($9.46 million). Four projects remain unfunded at an estimated cost of at least $9.37 million (in 2005 dollars). An additional $2.23 million has been spent or committed for administration of the program, purchase of land and equipment, and an update of the Master Plan of drainage (funded from City's General Fund). Page 1 of 3 12 Exhibit A FY14-15 EXPENDITURES The WQFP Program expenditure plan (i.e. budget) approved by the City Council for FY14-15 totaled $7.66 million, including carryovers from the prior year. Based upon the staff report dated May 21, 2015, $3.84 million had been spent or committed through June 30, 2015. Fiscal year expenditures are summarized by the Staff in the Storm Drain Plan through FYI 9-20 (Attachment A). Major projects for FYI 4-15 are described in Attachment B. Staff estimates a carryover from the FY14-15 budget to the FY15-16 budget of approximately $3.81 million. Based upon Staff reports to the Committee this variance, between the $7.66 million FY14-15 budget and the estimated FY14-15 expenditures of about $3.84 million, is primarily attributable to the following projects (see Attachment C) that were delayed due to wrapping up the San Ramon Canyon stabilization project and staff vacancies: • Altamira Canyon Drainage Study $500,000; • Storm Drain Lining $799,470; • Via Colinita & Roan projects $231,095; • South Hawthorne/Via Frascati projects $440,000; • PVDS projects (East of Barkentine and at Sacred Cove) $896,000; and • Marguerite Open Channel $317,670. FEE COLLECTIONS FOR FY14-15 User Fee collections are estimated to be about $1.38 million during FYI 4-15. COMMITTEE FINDING CONCERNING USER FEE EXPENDITURES IN FY14-15 The Committee believes that all WQFP Program costs for FY14-15 that included User Fee revenues have been properly committed and spent to discover and mitigate storm drain problems in the City. User Fees have paid for a significant portion of City investment in storm drain rehabilitation and new construction from 2007 to date, supplementing the General Fund from which the majority of such expenditures have been funded. PLANS FOR FY15-16 Staff presented the Committee with a proposed FY 15-16 Storm Drain expenditure plan in the amount of $1.57 million (see Attachment A for details). These are newly budgeted funds, not including previously authorized but unspent funds (which are referred to above as "carryover" funds). When combined with the expected $3.81 million in uncommitted funds to be carried forward from FYI 4-15, the total WQFP Program expenditures in FYI 5-16 are projected to be about $5.38 million. All planned projects appear necessary and are being funded appropriately under the present circumstances. Page 2 of 3 13 Exhibit A USER FEE RATE FOR FY15-16 The WQFP Committee recommends (3-2) that the annual Storm Drain User Fee for the FY15-16 be set at the maximum allowable rate of $96.85/ERU as limited by the 0.1% increase in CPI (see Attachment D). All members agree there are more known projects important to public safety and the protection of public and private property than there is funding available, even including the maximum user fee. The Committee believes the User Fee is an appropriate, reliable, dedicated funding source, authorized by the voters, which addresses known storm drain problems. Loss of the User Fee will cause storm drain projects to compete with other types of infrastructure needs for City funding. OTHER COMMENTS Taking note of the historic importance of the User Fee collections in funding critical WQFP projects, the Committee again recommends the City initiate planning for appropriate funding of the City's storm drain and water quality issues beyond June 30, 2016, when the Storm Drain User Fee sunsets. The last fee collections will occur during FYI 5-16. Although storm drains have been the primary focus of WQFP funding since 2007, federal and state laws that are coming to bear on the City mandate expansive, new, water quality control measures which the City must fund. Future funding of mandatory water quality projects may differ from storm drain issues in one key respect. The existing User Fee is not charged to those of the City's land owners whose parcels are served by County of Los Angeles storm drains. The existing storm drain User Fee is charged on a parcel -by - parcel basis only to that fraction of the City's land owners whose parcels are served by City -managed storm drains. Water quality measures, however, will affect all landowners, and, indeed, all residents. Therefore, water quality expenditures should be allocated citywide. The Committee recommends the following: 1. The continuation of a dedicated funding source for storm drain projects, and; 2. The identification or creation of an appropriate funding source for mandated water quality projects and programs. Attachments A: Storm Drain Plan through FY19-20 B: April 9, 2015 Staff Report - STORM DRAIN PROJECT STATUS UPDATE C: Storm Drain Project Sheets (excerpts from the draft 2015 Five -Year Capital Improvement Plan) D: "Annual Fee Rate" excerpt from the Annual Report for the Water Quality and Flood Protection Program Storm Drain User Fee FY2015-16 prepared by Harris & Associates Page 3 of 3 14 City of Rancho Palos Verdes Draft 2015 Five -Year Storm Drain Plan Backbone Projects 2 McCarrell Canyon McCarrell Canyon, Tarragon Property 2 Acquisition 1 Sunnyside Ridge A 3 Lower San Ramon Canyon Stabilization 5 PVDE Miraleste Canyon System B 6 PVDE San Pedro Canyon System C JAltamira Canyon Drainage Study Paintbrush Canyon Drainage Study Pipe Lining D 12 Storm Drain lining Capacity & Secondary System Projects �E­-7 Via Colinita & Roan Projects Hawthorne Blvd. (closed FY10-11, re- allocated to the San Pedro Canyon Storm 2 Drain Project) 9 PVDE Lower Switchbacks F 6 South Hawthorne/Via Frascati 11 Middlecrest Road Project G 11 PVDS (East of Barkentine) H 11 PVDS at Sacred Cove Filtration Systems 1 12 Catch Basin Filtration Devices 2 30502 PVDW Catch Basin Other Projects McCarrell Canyon Interim, 2 Barkentine/Seacove McCarrell Canyon Interim, Gabion & Timber 2 Walls 2 Palos Verdes Bay Club Interim Improvemen 10 PVDS Salvation Army Outlet _ 6 Bronco Drive 5 Noble View Canyon 12 Citywide Interim, Other 10 Alicia Place Storm Drain Relocation Prior Years" (Memo only) Paid FY14-15 Expected 05-06 Thru FY14-15 Spent or Carryover FY13-14 Budget Committed to FYI 5-16 7,487,716 501,995 1,403,500 417,361 16,505,919 2,775,934 2,386,053 251,878 7,996 - 500,000 996,696 1 799,470 210,329 231,095 19,575 440,000 - 446,000 - 450,000 38,255 53,000 8,600 135,000 119,213 185,000 26,000 66,000 27,000 7,400 98,480 500,000 799,470 231,095 440,000 446,000 450,000 53,000 Attachment A Total Budgeted Remaining Y19-20 Projected Projects RModel By Project ` (Original 38) 7,487,716 1,403,500 417,361 19,281,853 - 259,874 500,000 120,000 2,839,637 2,438,992 1,750,000 120,000 350,000 1 6,534,655 441,424 19,575 440,000 446,000 450,000 491,255 8,600 135,000 119,213 185,000 26,000 66,000 27,000 7,400 98,480 1 139.160 1 Page 1 of 2 15 City of Rancho Palos Verdes Draft 2015 Five -Year Storm Drain Plan Attachment A Page 2 of 2 16 Prior Years' (Memo only) Total Paid FY14-15 Expected Budgeted Remaining FY05-06 Thru FY14-15 Spent or Carryover FY16-16 FY16-17 FY17-18 FYI 8-19 FY19 20 + Projected Projects Ref. Area FY13-14 Budget Committed' to FYI Draft Budget 5YR Model SYR Model 6YR Model SYR Model By Project (original 38) 3 Tarapaca Landslide Study 6,377 6,377 6 PVDE Engineering Reserve 20,360 20,360 6 PVDE Inlets - - 10 Mossbank Storm Drain Rehabilitation 245,885 245,885 4 PVDS @ Altamira Canyon - - 5 Via Canada 89,334 89,334 J 12 Marguerite Open Channel 64,040 330,685: 13,015 317,670 394,725 K 12 Point Repair Projects - 150,000 150,000 900,000 1,050,000 Miscellaneous Repairs & Maintenance - 12 Miscellaneous Repairs 145,470 145,470 Storm Drain/Filtration Maintenance (includes Hawthorne, Montemalaga & Video L 1 12 Inspection/Cleaning) 1 785,153 725,286 347,306 266,029 245,544 250,455 1 250,000 250,000 250,000 2,756,438 Subtotal Pro ect & Maintenance Costs 32,760,641f 6,909,466 3,248,369 3,653,264 1,48fi 380 J 598,108 600,000 600,000 720,000 43,674,495 7,167,789 162,200 583,616 170,033 424,360 159,256 79,736 70,994 72,998 74,977 77,076 11,813 1,765,427 810,000 - - - - 19,750 12 Purchase of Push Camera 11,813 12 Administration (contract/staff engineer) 1,227,446 M 12 Drainage Master Plan Program 226,384 12 Storm Water Enterprise Asset Registry - 12 Asset Maintenance Management System - 12 Hydrologic, Hydraulic & Pollutant Modelling - 12 Analysis & Prioritizing of Deficiencies - 12 Capital Improvement Programming I - 12 Land Acquisition 19,750 Total Pro ram Costs 34,245,934' 7,655,282 3,842,762 3,812,520 1,566,116 669,102 672;998 674,977 797,076 P, 46,281,485 7,167,789 Note: • This schedule reflects actual costs and does not include depreciation or capitalization of storm drain im vements, which are included in the City's financial statements. ro Page 2 of 2 16 CITY OF Attachment B TO: HONORABLE CHAIR & MEMBERS OF THE OVERSIGHT COMMITTEE FOR THE WATER QUALITY & FLOOD PROTECTION PROGRAM FROM: KATHRYN DOWNS, ACTING DIRECTOR OF FINANCE DATE: APRIL 9, 2015 SUBJECT: STORM DRAIN PROJECT STATUS UPDATE RECOMMENDATION Receive and file the storm drain project status update. BACKGROUND & DISCUSSION The FY14-15 budget includes total appropriations of $7,655,282 for various projects, maintenance, and planning efforts; including $2.8 million to complete the Lower San Ramon Canyon stabilization project. Staff expects to propose about $1.5 million of additional appropriations for FY15-16. Public Works Staff has prepared an update of all FY14-15 appropriated projects and FY15-16 proposed projects (see Attachment A). Staff will be prepared to present the status update and answer Committee Member questions. 17 Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 1 of 9 PROGRAM HIGHLIGHTS — PROJECTS INCLUDED IN FY14-15 BUDGET San Ramon Canyon (PVDE/PVDS Roadway) Stabilization Project The San Ramon Canyon Project was completed in November 2014. The contractor completed the original scope of the project for less than the bid price due to the value engineered change orders approved shortly after the contract was awarded, favorable conditions in the field and effective construction management. The contractor was then asked to increase the scope to include improvements to the drainage along the switchbacks, which was on the City's list of storm drain projects. This additional work brought the value of the contractor's work to about $15.3M, less than 2% over the bid. However, because this included an extra project and because this project would be eligible for 50% reimbursement from the State grant awarded to the City, it was not a hard decision to include it. The total of the overall costs for the San Ramon Project that are eligible for 50% grant reimbursement (dating back to September 2009 and including the extra work) have not exceeded the capacity of $18.94M as stipulated by the grant awarded to the City. Therefore, with the State's permission, we are also contracting for additional work that will be grant eligible. This work is to restore the lining of the 66 -inch McCarrell Canyon pipe which was installed in 2007. This steel pipe, very similar to the San Ramon Pipe, had been installed with a coal tar epoxy liner that did not stand up to the abrasion and impact of the debris laden storm water it conveyed to the ocean from Barkentine Canyon. A polyurethane liner, which is more flexible and resistant to impacts, will be used. This technology was used for the San Ramon pipe. Master Plan of Drainage Program The Master Plan of Drainage (MPD) was awarded to RBF Consulting (now called Baker Consulting) in October 2013. The city received its first draft report in January 2015, which has been reviewed and returned with comments. The draft included the identification of potential capacity deficiencies that will be cost estimated and prioritized in the final draft. The City also asked Baker to include results of a yearlong pipe inspection program, performed by a different City contractor, so that the list of prioritized projects will consider both capacity and condition deficiencies. We expect to have a final report later this spring. Storm Drain Lining and Inspection Costs to line the McCarrell Canyon pipe, that exceed funds budgeted to the San Ramon project will accounted for under this item. The engineer's estimate for this work is $620,000 and bids be received later in April. When the last major lining project was completed in 2013, there remained a number of pipes though could not be lined due to the need for point repairs. Several of these have been addressed this year and work has been completed as a part of the PVDE Arterial Roadway Rehabilitation Project. The remaining pipes, those not in the PVDE project, are slated for design in this fiscal year and we expect to be under contract for design work by W-0 Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 2 of 9 the end of the year. Construction of these repairs will likely occur in FY 2015-2016. In addition, a 3 -year contract was also awarded last year to inspect and clean storm drain pipes along Western Avenue, on the City's west side and on the east side. While giving the City valuable information about the next set of pipes that need to be lined, the results will also enable the Master Plan of Drainage to include condition assessments in its prioritized list of projects. The City is currently preparing a small system to be lined in this fiscal year. These pipes were not earlier identified and only came to our attention after a small soil collapse in the back yard of a resident. Although the collapse is small in size and stabilized, this is considered an urgent repair and will be completed as soon as possible Marguerite Channel and PVDS (East of Barkentine) These two projects were combined in one feasibility study that was also completed this year. A preliminary design report is now underway and will be used to develop a scope of work for the final design projects. At this time we will separate the projects and proceed with construction as resources allow. The work at Marguerite Channel is a fairly straightforward effort to stabilize the eroding channel walls and reduce flow velocity in the channel. The work at the PVDS site is more complex as it involves several pipelines, open channels, crossing of PVDS, private property, the city's nature preserve and a nearby mapped landslide. Altamira Canyon Planning, research and scoping of a project to address continuing erosion of the Altamira Canyon are underway. City Staff anticipates issuing an RFP and bringing on a design consultant after preliminary project limits are established and initial public outreach for this privately owned land that handles City runoff is completed. PVDS at Sacred Cove There is a need for work identified at this location and it is being incorporated into the work to maintain the roadway along PVDS through the landslide area. In addition, some very large ground fissures have opened up beneath the pipe and have caused the area to be closed for safety. Work is pending, but the changing nature of the landslide's effects on the road and the pipe infrastructure, keep it from being easily scoped for a design consultant, resulting in delays. Consultant proposal for new scope are expected soon. A summary of on-going projects and proposed projects for FY15-16 follows. The alphabetical reference for each project described below has also been added to the Five Year Storm Drain Plan Through FY19-20 schedule. `Vil Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 3 of 9 PROJECT UPDATES - PROJECTS IN FY14-15 BUDGET A. San Ramon Canyon Flood Reduction Project Spent in Prior Years: $16.5 MM FY14-15 Budgeted: $ 2.8 MM FY14-15 Budget Adjust: $ 0.4 MM Expected Carryover: $ 0 MM Total/Estimated Costs: $19.7 MM Percentage Completion: 100% Description/Status: Project to stabilize PVDE and PVDS, eliminate flooding on 25th Street and divert storm water around Tarapaca landslide by installation of a 4,000 LF steel pipeline, restoring streambed and mitigating environmental impacts. City Council awarded construction and professional service contracts on March 5, 2013, as well as a budget resolution for $17,949,603. Groundbreaking was held on April 16, 2013. Construction completed in November 2014. Staff expects to request a budget adjustment of about $0.4 million to provide for the switchbacks work that was added to the scope of the project. The FY13-14 budget included $465,425 of available money for the PVDE Lower Switchbacks project, which was not carried forward to FY14-15 in error. B. San Pedro Canyon Storm Drains Spent in Prior Years: $251,878 FY14-15 Budgeted: $ 7,996 Funds Encumbered: $ 0 Expected Carryover: $ 0 Total/Estimated Costs: $251,878 Percentage Completion: 100% Description/Status: This project includes several pipe systems that are tributary to San Pedro Canyon. Staff has completed construction of drainage improvements to the Miraleste Plaza (in prior years) and along PVDE this year. While there is additional work to do in this area, the remaining funds are not sufficient for a stand-alone project and will be returned to the overall program for re -allocation. The new Master Plan of Drainage will inform future project descriptions and estimated costs. C. Altamira Canyon Drainage Project Study Report FY14-15 Budgeted: $500,000 Funds Encumbered: $ 0 Expected Carryover: $500,000 Total/Estimated Cost: TBD Percentage Completion: 0% W Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 4 of 9 Description/Status: Altamira Canyon is located on the south side of the Peninsula and runs from south of Crest Road, through the Abalone Cove community, across PVDS and to the ocean. This PSR will investigate design requirements and alternative solutions for the Altamira Canyon drainage system. Hydrology, hydraulics, scour analysis, design parameters, maintenance economy, land ownership, easement requirements, constructability, environmental regulation, permits and costs will all be addressed. D. Storm Drain Lining, Other Spent in Prior Years: $3,996,696 FY14-15 Budgeted: $ 799,470 Encumbered Funds: $ 0 Expected Carryover: $ 799,470 Total/Estimated Cost: $4,796,166 (to date) Percentage Completion: Ongoing Description/Status: Costs to repair the liner to the McCarrell Canyon pipe will be covered here. The Engineer's estimate for this work is $620,000 and a better cost estimate will be known in mid-April 2015 as bids are opened. Additional work to make an emergency repair to a pipe in the back yard of a resident where a soil collapse occurred is also expected in this fiscal year, but so far the work has not been priced. E. Via Colinita and Roan Projects Spent in Prior Years: $210,329 FY14-15 Budgeted: $231,095 Encumbered Funds: $ 0 Expected Carryover: $231,095 Total/Estimated Cost. $441,424 Percentage Completion: 50% Description/Status: The majority of the Via Colinita segment of this project was completed in prior years at a cost of about $210,000, however, drainage issues on Via Colinita are only partially analyzed at this time. Additional work there will be deferred pending modeling results from the Master Plan of Drainage. A project to repair the Roan Road system is currently underway. Bidding of this project is anticipated in April resulting in a construction contract award in May and construction beginning and ending this summer. 21 Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 5 of 9 F. South Hawthorne / Via Frascati FY14-15 Budgeted: $440,000 Encumbered Funds: $ 0 Expected Carryover: $440,000 Total/Estimated Cost: TBD Percentage Completion: 0% Description/Status: This "project" is actually two projects that have been bundled together at the initiation of the WQFP program and carried forward. They are not significantly related. South Hawthorne has historically experienced some flooding but development of the Oceanfront Estates neighborhood entrance and improvements to Golden Cove Shopping Center may have alleviated them. Staff proposes using information developed in the master plan to confirm or deny the need for further investigation. On Via Frascati, flooding has been infrequent and seems to have been solved with installation of curb and gutter along a portion of the road. G. PVDS (East of Barkentine) FY14-15 Budgeted: $446,000 Encumbered Funds: $ 0 Expected Carryover: $446,000 Total/Estimated Cost: $446,000 Percentage Completion: 10% Description/Status: This project is located along PVDS in the Seacove area. A preliminary design report for this project, combined with a similar report for Marguerite Channel, is being developed and final design will begin this year. (Funds were encumbered against the Marguerite Channel project for this and last year.) Final design and construction of improvements will likely be constructed in FY2015-16. H. PVDS at Sacred Cove Project FY14-15 Budgeted: $450,000 Encumbered Funds: $ 0 Expected Carryover: $450,000 Total/Estimated Cost: TBD Percentage Completion: 0% Description/Status: This project will seek to reestablish and improve drainage adjacent to PVDS in the Sacred Cove (landslide) area. The existing system has been rendered ineffective due to misalignment over time from land movement and will need to be rebuilt. 22 Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 6 of 9 I. Catch Basin Screening Devices Spent in Prior Years: $438,255 FY14-15 Budgeted: $ 53,000 Encumbered Funds: $ 0 Expected Carryover: $ 53,000 Total/Estimated Cost: $491,255 Percentage Completion: 75% Description/Status: Retrofitting of catch basins with full capture pipe screens is required by the Regional Board for the Machado Lake watershed and now the Santa Monica Bay watershed. The final 40 or so catch basins draining to Machado Lake will be retrofitted in Spring of 2015 with no further cost to the City for construction. The new MS4 Permit requires the City to retrofit the basins in the City that drain to the ocean, however, it is not clear if this will mean all basins or only a portion. It is recommended to roll any unused funds forward year by year to achieve permit compliance. J. Marguerite Open Channel Spent in Prior Years: $ 64,040 FY14-15 Budgeted: $330,685 Encumbered Funds: $ 13,015 Expected Carryover: $317,670 Total/Estimated Cost: $394,725 Percentage Completion: 10% Description/Status: This project is located adjacent to Calle Entradero. It is currently being studied by a consultant to determine extent and nature of flood control improvements needed. A preliminary design report is underway, which will lead to final design beginning later this fiscal year. Construction is anticipated in FY 2015-16. Spent and encumbered funds include study and preliminary design of both this and the PVDS East of Barkentine projects. K. Point Repair Projects (Legacy to 2012 Lining Project) FY14-15 Budgeted: $ 150,000 Encumbered Funds: $ 0 Expected Carryover: $ 150,000 Total/Estimated Cost: $1,050,000 Percentage Completion: 0% Description/Status: After completion of the 2012 Lining Project, five pipes remained that could not be lined because point repairs needed to be made. The difficulty of executing these repairs required the pipes be pulled from that project. This new project intends to accomplish the repairs needed making the pipes ready for the next lining project, if in fact a lining 23 Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 7 of 9 is needed after the repair. The budget in FY2014-15 is for design of repairs and establishment of access rights. Design contract is expected to be awarded in this FY with carryover into next year, with construction to follow. L. Miscellaneous Repairs / Inspection and Cleaning FY14-15 Budgeted: $725,286 Encumbered Funds: $496,619 Expected Carryover: $228,667 Percentage Completion: On-going Description/Status: These projects typically address smaller maintenance improvements, repairs and emergency work. About $350,000 of the encumbered funds for this year are for inspection and cleaning to assist in planning the next lining project. Some emergency work will be needed at a location where a small soil collapse occurred in the back yard of a resident. Some of this work may be lining, which will be included in the "Storm Drain Lining" category. M. Drainage Master Plan Program Spent in Prior Years: $226,384 FY14-15 Budgeted: $583,616 Encumbered Funds: $424,360 Expected Carryover: $159,256 Total/Estimated Cost: $810,000 Percentage Completion: 80% Description/Status: RBF Consulting Engineers (now Baker Consulting) was awarded the contract to develop a new Master Plan of Drainage. The GIS -based master plan will be a living document that catalogues all existing facilities, allows for changes resulting from maintenance activities and improvement projects that are completed, provides for modeling and what if scenarios, and identifies project priorities to meet discovered deficiencies. Baker anticipates delivery of a final draft in late FY 2014-15. It is recommended to roll any unused funds forward year by year to enhance and maintain this living document. NEW PROJECTS INCLUDED IN DRAFT FY14-15 BUDGET Storm Drain Lining, Other (Item D) FY15-16 Proposed: $ 340,836 Total/Estimated Cost: $5,137,002 (projected through FY 2015-16) Percentage Completion: Ongoing Description: Continuing program to install liners and rehabilitate existing pipes. ME Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 8 of 9 Point Repair Projects (Item K) FY15-16 Proposed: $ 900,000 Total/Estimated Cost: $1,050,000 Percentage Completion: 0% Description: This new project intends to accomplish the repairs needed making the pipes ready for the next lining project, if in fact a lining is needed after the repair. Design was initiated in FY2014-15 and will carryover. These new funds will be added for construction. Miscellaneous Repairs / Inspection and Cleaning (item L) FY15-16 Proposed: $ 245,544 Total/Estimated Cost: $1,755,983 (projected through FY 2015-16) Percentage Completion: On-going Description: Continuing program allocation to perform smaller repairs and maintenance, for inspection and cleaning. WATER QUALITY CONSIDERATIONS The City is currently preparing, in collaboration with other peninsula watershed management agencies, an Enhanced Watershed Management Plan (EWMP) in response to MS4 Permit requirements from the Regional Water Quality Control Board, Los Angeles (Regional Board). The EWMP will identify the activities required to determine what pollutants of concern to address, what specific pollutant levels are allowed to be discharged from the storm drains, how, where and when to monitor storm water and dry weather flow samples, and what programmatic efforts (e.g. public outreach and education) and structural projects (BMPs) the City will need to implement to meet these limits. In addition to projects in the Water Quality Flood Protection program, the CIP is carrying about $1.2 million worth of water quality structural improvements that are anticipated as a result of these regulations. Of course, if pollutant loads are higher than anticipated, or if regulations tighten further, additional projects may be necessary. Historically, the City has not used WQFP funds to cover requirements of the MS4 Permit, with an exception for installation of treatment hardware, typically connector pipe screens in catch basins. In future years, the percentage of funds expended on structural BMPs as compared to programmatic BMPs (education and outreach) in response to the MS4 Permit is expected to grow. Future expenditures from the WQFP fund, and any subsequent funding schemes to address storm water infrastructure should consider the impacts of these more stringent regulations and the need for projects to address them. 25 Attachment B PROJECT STATUS UPDATE ATTACHMENT A Page 9 of 9 INFRASTRUCTURE MANAGEMENT PLAN After its establishment by the City Council earlier this fiscal year, the Infrastructure Management Advisory Committee held its first meeting on January 15, 2015. The committee is tasked with, among other things, consideration of drainage infrastructure needs in the context of other infrastructure needs in the City and development of an Infrastructure Management Plan (IMP), which is intended to be a comprehensive financial planning tool for all of the City's publicly held infrastructure. This committee will assist Public Works and Finance Staff to develop an IMP to address the long-term capital needs of the City. Staff expects that the IMP will provide a roadmap for future systematic replacement, refurbishment, and financing of City infrastructure, including drainage facilities. 26 Attachment C PROJECT: STORM DRAIN LINING TYPE: Storm Drain System LOCATION: Project Area 12 DEPARTMENT: Public Works DESCRIPTION: All Corrugated Metal Pipe storm drain lines within the City have reached their design life expectancy and need to be lined to extend their life another 30+ years. CMP dating back to the 1940s has been discovered and requires rehabilitation, along with those most recently installed in the 1970s. A large number of drainage problems citywide can be overcome by relining deteriorated pipes and improving inlet and outlet structures. PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN CONSTRUCTION $340,836 $347,653 $350,000 $350,000 $350,000 PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL $340,836 $347,653 $350,000 $350,000 $350,000 IMPACT ON OPERATING BUDGET Funding and/or Grant Information: WQFP user fees through FY15-16 and the CIP Reserve funds (General Fund money) thereafter. Ongoing maintenance costs should decrease, as pipes which have been lined generally require less maintenance, resulting in a cost savings. Because the Storm Drain User Fee sunsets in FY15-16, lining projects will compete with other infrastructure rehabilitation projects for funding from the CIP Reserve in the future. JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: 27 Attachment C PROJECT: PAINTBRUSH CANYON DRAINAGE PROJECT STUDY REPORT TYPE: Storm Drain System LOCATION: Project Area 11 DEPARTMENT: Public Works The Project Study Report is expected to include: 1) a study of the drainage area; 2) a study of the drainage needs; 3) multiple design alternatives; 4) identification of environmental requirements; 5) DESCRIPTION: identification of right-of-way needs; and 6) a recommended scope for development of an engineering design leading to construction of drainage improvements. Any improvements to drainage in Paintbrush Canyon will be complex due to right-of-way and landslide issues. PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN $120,000 CONSTRUCTION PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL $120,000 IMPACT ON OPERATING BUDGET Funding Information: WQFP user fees and CIP Reserve funds (General Fund money). JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: Preventing runoff water from entering the landslide has been shown to directly affect land movement in landslide areas. This project is expected to help slow movement within the Portuguese Bend landslide, eventually affecting the land movement on Palos Verdes Drive South. Attachment C PROJECT: STORM DRAIN POINT REPAIR PROJECTS TYPE: Storm Drain System LOCATION: Citywide DEPARTMENT: Public Works DESCRIPTION: During the 2012 Storm Drain Lining and Rehabilitation Project, several pipes were unable to be lined due to local structural failure of the pipes. This project will provide funds to correct the deficient locations in these pipes to prepare them for lining in the future. PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN CONSTRUCTION $900,000 PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL $900,000 IMPACT ON OPERATING BUDGET Funding Information: WQFP user fees. JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: Many of these point repairs are difficult to access and may require acquisition of temporary or permanent access easements to address current and future maintenance needs. Locations include Santa Rena pipe inlet, Enrose Avenue CMP, Via Colinita north of Maine, Vista Mesa, and PVDE at Marion Drive. LOCATION PHOTO I MAP 29 Attachment C PROJECT: ALTAMIRA CANYON TYPE: Storm Drain System LOCATION: Project Area 4 DEPARTMENT: Public Works A project within lower Altamira Canyon to aid in slowing the damage being caused by storm water runoff through the entire reach of the Canyon is needed. The installation of Gabion-type erosion control structures within lower Altamira Canyon are needed to help control DESCRIPTION: runoff velocities and minimize erosion within the canyon. This project includes the installation of protective measures to minimize further erosion in Altamira Canyon. This project could range from stabilization at bends in stream beds, with limited velocity controls, to channel stabilization. PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN CONSTRUCTION PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL IMPACT ON OPERATING BUDGET To be assessed. JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: Note: The Altamira Canyon project has been studied and analyzed over the past decades; however the need to minimize runoff from entering the ground in Altamira Canyon still remains. A project study report has been funded for FY14-15. This estimate does not include right-of-way costs. A previously designed and funded project was abandoned due to right-of-way issues and owners lack of support. Estimated Cost: $1,600,000 - $5,350,000 30 Attachment C PROJECT: PAINTBRUSH CANYON DRAINAGE TYPE: Storm Drain System LOCATION: Portuguese Bend DEPARTMENT: Public Works DESCRIPTION: The Paintbrush Canyon Drainage System project will capture runoff at the head of the Portuguese Bend landslide in three locations, transfer that runoff via surface -mounted High Density Polyethylene (HDPE) pipe under Palos Verdes Drive South, (through an existing steel tunnel), and continue the flow along the existing storm drain pipe alignment to the ocean. PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN CONSTRUCTION PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL IMPACT ON OPERATING BUDGET TBD JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: Preventing runoff water from entering the landslide has been shown to directly affect land movement in landslide areas. This project is expected to help slow movement within the Portuguese Bend landslide, eventually affecting the land movement at Palos Verdes Drive South. A project study report has been proposed for FY 19-20. Estimated Cost: $2,568,000 31 Attachment C PROJECT: PVDE- MIRALESTE CANYON TYPE: Storm Drain System LOCATION: Project Area 5 DEPARTMENT: Public Works DESCRIPTION: Work within this project area includes storm drainage systems along Palos Verdes Drive East at the northern end of PVDE, South Coach, Rocking Horse, Clevis, North Colt, South Colt, Via Canada, and South Via Canada. This project includes the installation of a number of pipelines and re -setting surface drainage systems to drain into Miraleste Canyon, PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN CONSTRUCTION PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL IMPACT ON OPERATING BUDGET TBD JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: Estimated Cost: $2,500,000 - $3,200,000 32 Attachment C PROJECT: SAN PEDRO & AVERILL CANYONS TYPE: Storm Drain Systems LOCATION: Project Area 6 DEPARTMENT: Public Works DESCRIPTION: Work within this project area would include storm drainage systems at Miraleste, South Miraleste, North Corsini, Via Colinita, La Vista, Vista Mesa, and a curb and gutter project on Via Frascati. This project would include the installation of a number of pipelines and regrading of roads and surface drainage systems to drain into the San Pedro and Averill Canyons. A project at Miraleste Plaza has been completed. PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN CONSTRUCTION PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL IMPACT ON OPERATING BUDGET TBD JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: Estimated Cost: $2,700,000 - $3,300,000 33 Attachment C CATCH BASIN SCREEN PROJECT: INSTALLATION TYPE: Storm Drain System LOCATION: Citywide DEPARTMENT: Public Works In order to comply with certain water quality regulations imposed by the Regional Water Control Board, the City will need to install catch basin screens to prevent trash and debris from entering the DESCRIPTION: Santa Monica Bay and LA Harbor. It is not clear yet how many of the City's catch basins will require the retrofit or how intense the implementation scheme will be. PROJECT COST ESTIMATES (IF KNOWN) CATEGORY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ACQUISITION ENGINEERING/DESIGN CONSTRUCTION PROJECT MANAGEMENT/OVERSIGHT LEGAL TOTAL IMPACT ON OPERATING BUDGET Funding Information: WQFP (Storm Drain User Fee) Fund and CIP Reserve funds (General Fund money). JUSTIFICATION FOR INCLUSION ON 5 YEAR CIP SAFETY X ECONOMY AND EFFICIENCY SUPPORTS ESSENTIAL CITY SERVICES X OUTSIDE FUNDING COMMITTED/ELIGIBLE SUPPORTS CITY COUNCIL GOALS X COMMUNITY QUALITY/SUSTAINABILITY X OTHER PROJECT INFORMATION: The City has installed these screens in about 100 catch basins (for the Machado Lake watershed) at a recent cost of about $700 each (not including permitting). There are up to 1,200 catch basins remaining that may require this retrofit. Estimate cost: $600,000 - $900,000. S 3 . l3t'4 159' T l9 1 h SrR 9 'Y 11 r" L4 F.,, Y � r i' �.ij'f( �.,;� '� Fs� 3 ?t T { "tiPP•' �11'fNt:t.':.t{. t Sr � ` {"x, °t 57t ��}ltN,tT. 't. �•.. t tnt t}' 9�..t�,y .: !' may, Y idle > S ,, 3.:�'.: � � i'+.5Ft5`ititi trt Itl jtt tf� ttyfr d- W, � T115�`4.tt r��VV 5� t St 5 SGtly �J t \ r. ;'��y �d i..>k f ,moi- 1ti�•}ht4{.�ltlh.attj{�'h r, �`p 5K J � Lia 4� 34 Attachment D City of Rancho Palos Verdes May 11, 2015 Water Quality and Flood Protection Program Storm Drain User Fee Annual Report- FY 2015-16 Page 6 Annual Fee Rate Table 4 provides the calculation of the Maximum Annual Fee Rate for FY 2015-16 and shows the actual proposed Fee Rate. Table 4 -Annual Fee Rate Base Year - FY 2006-07 CPI Increase CPI Rate 2% Rate Max. Rate $86.00 Actual Rate $86.00 FY 2007-08 3.8% $89.27 $87.72 $87.72 $87.72 FY 2008-09 3.3% $90.61 $89.47 $89.47 $89.47 FY 2009-10 0.0% $89.47 $91.26 $89.47 $89.47 FY 2010-11 1.4% $90.72 $91.26 $90.72 $90.72 FY 2011-12 2.3% $92.81 $92.53 $92.53 $92.53 FY 2012-13 2.1% $94.47 $94.38 $94.38 $92.53 FY 2013-14 2.2% $96.46 $96.27 $96.27 $96.27 FY 2014-15 0.5% $96.75 $98.20 $96.75 $96.75 FY 2015-16 0.1% $96.85 $98.69 $96.85 $96.85 The maximum rate will increase automatically on an annual basis by an amount equal to the annual change in Consumer Price Index for all Urban Consumers (CPI) for the Los Angeles, Riverside, Orange County Areas including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year (12 months ended February), not to exceed a maximum increase of two percent (2%) per year. The actual rate to be levied each year will be as approved by the City Council at a public hearing, after they consider an Annual Fee Report outlining the estimated annual costs of the program. Table 5 provides sample fee calculations for various land uses and parcel sizes based on the proposed Actual Fee Rate. Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 11May 15 R2.docx Harris & Associates 35 Annual Report forthe Water Quality and Flood Protection Program Storm Drain User Fee FY 2015-16 Forthe City of Rancho Palos Verdes Los Angeles County, California May 11, 2015 36 City of Rancho Palos Verdes Water Quality and Flood Protection Program Storm Drain User Fee Annual Report— FY 2015-16 TABLE OF CONTENTS Certificates................................................................. Pg. 1 Introduction............................................................... Pg. 2 Cost Estimates............................................................ Pg. 3 Annual Fee Rate Calculations .................................... Pg. 4 Sample Calculations ................................... Pg. 7 Assessment Roll ..............................Under Separate Cover May 11, 2015 Q:\RPV\Stormwater\PY15-16\reports\SD Pee Rpt 15-16 11 May 15 R2.docx I Harris &Associates 37 City of Rancho Palos Verdes Water Quality and Flood Protection Program Storm Drain User Fee Annual Report — FY 2015-16 FY 2015-16 Annual Report City of Rancho Palos Verdes Storm Drain User Fee The undersigned respectfully submits the enclosed report as directed by the City Council. DATED: May 11, 2015 BY: K. Dennis Klingelhofer R.C.E. No. 50255 May 11, 2015 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached, was filed with me on the day of 2015. Carla Morreale, City Clerk, City of Rancho Palos Verdes Los Angeles County, California By I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll thereto attached was finally adopted and confirmed by the City Council of the City of Rancho Palos Verdes, California, on the day of 2015. Carla Morreale, City Clerk, City of Rancho Palos Verdes Los Angeles County, California By Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 11May15 R2.doex MI Harris & Associates W City of Rancho Palos Verdes May 11, 2015 Water Quality and Flood Protection Program Storm Drain User Fee Annual Report — FY 2015-16 Page 2 INTRODUCTION To insure a flow of funds for the Water Quality and Flood Protection Program, the City of Rancho Palos Verdes established a user fee in September 2005. This Fee ensures a fair and equitable levying of the costs of the Water Quality and Flood Protection Program. Pursuant to Section 3.44.40 of the City's Municipal Code, at a public hearing, the City Council will consider whether to collect the Storm Drain User Fee for Fiscal Year 2015-16 (July 1, 2015 through June 30, 2016), and, if so, establish the rate per Equivalent Residential Unit for Fiscal Year 2015-16. In making its determinations, the City Council will take into account the current and projected revenues of the City for Fiscal Year 2015-16, including but not limited to, property taxes, sales taxes and transient occupancy taxes; the current and projected expenditures of the City for Fiscal Year 2015-16, including, but not limited to, proposed expenditures in connection with the City's storm drain system; the balance, if any, in the Water Quality and Flood Protection Program Enterprise Fund; and the current and projected General Fund reserves. In addition, the City Council will consider any report and recommendation submitted by the Oversight Committee established by the City Council in connection with the City's Water Quality and Flood Protection Program. This report, as signed and presented to the Council for approval, has been prepared according to the methodology and rates approved by the City Council in 2005. The Storm Drain User Fee is levied under the authority of the California Health and Safety Code Section 5471 et seq. (the "Code"). Payment of the fees for each parcel will be made in the same manner and at the same time as payments are made for property taxes for each property. This report contains the necessary data required to establish the annual fee rates and is submitted for filing in the office of the City Clerk, where it shall remain open for public inspection. Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 11 May 15 R2.docx Harris & ASSOC1dte5 W City of Rancho Palos Verdes Water Quality and Flood Protection Program Storm Drain User Fee Annual Report — FY 2015-16 COST ESTIMATE May 11, 2015 3 The estimated annual costs to fund the Water Quality and Flood Protection Program are provided below in Table 1. Table 1— Estimated Annual Costs BEGINNING FUND BALANCE (7/1/15) ESTIMATED REVENUES Annual Fee Levy $863,848 $1,434,984 Interest Earnings $600 CIP Transfer $0 City Contribution $0 ESTIMATED EXPENDITURES Storm Drain Master Plan $1,435,584 $0 Backbone Projects $900,000 Pipe Lining $340,836 Secondary Projects $0 Other Projects $0 Miscellaneous Repairs & Maintenance $245,544 Filtration Device Installation $0 Reserve for Anticipated Additional Costs Administration (contract/staff engineer) $79,736 ENDING FUND BALANCE (6/30/16) $1,566,116 $733,316 The ending fund balance constitutes a Reserve for Future Projects. Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 11May] 5 R2.doex 01 Harris & Associates ON City of Rancho Palos Verdes May 11, 2015 Water Quality and Flood Protection Program Storm Drain User Fee Annual Report — FY 2015-16 Page 4 ANNUAL FEE RATE CALCULATIONS By definition, all properties that drain into the City's storm drain system use the storm drain system. The amount of use attributed to each parcel is measurable by the amount of storm runoff contributed by the property, which is directly proportional to the amount of impervious area on a parcel (such as buildings and concrete). The more impervious area on a property, the more storm runoff the property generates. Vacant, unimproved parcels are still in their natural states and do not contribute any additional runoff to burden the system, therefore these parcels are not charged a storm drain fee. Table 2 shows the estimated Impervious Percentages for single-family residential (SFR) properties of various size ranges. These Impervious Percentages are the estimated percent impervious cover on a property based on a ten percent data sampling of SFR parcels within the City of Rancho Palos Verdes when the fee was initially adopted. Because of the variations in condominiums and non -SFR properties, which include multi -family residential, institutional (such as churches and private schools) and government-owned properties, these properties were reviewed individually using the City GIS and Aerial photography to determine the actual Impervious cover for each parcel. Table 2 — SFR Impervious Percentages Land Use SFR1 Impervious Percentage 74.0% SFR Size Ranges 0.01 - 0.16 acres (-1 sf - —7,012 sf) SFR2 58.0% 0.161 - 0.20 acres (7,013 sf - 8,755 sf) SFR3 48.5% 0.201 - 0.28 acres (8,756 sf - 12,239 sf) SFR4 41.0% 0.281 - 0.54 acres (12,240 sf - 23,565 sf) SFR5 34.5% 0.541 - 2.99** acres (23,566 sf - 130,680 sf) SFR6 n/a* 3.0 acres and greater " the actual impervious percentage is used for each parcel. ** the actual impervious percentage is used for SFR5 over 3/4 AC if less than originally noticed. The amount each parcel uses the storm drain system is computed by the following formula: (Parcel Area) x (Impervious Percentage) = Drainage Units The more Drainage Units a parcel has, the more storm run-off it generates, and the more it uses the storm drain system. It is often convenient to relate other land uses to a developed single family home, instead of working exclusively with Drainage Units. Since 85% of the parcels within the City are designated as Single Family Residential (SFR) parcels, and the median number of Drainage Units is 0.118 for all SFR parcels, it makes sense to relate all parcels to this median residential property. Therefore, 0.118 Drainage Units is set equal to one Equivalent Residential Unit (ERU). Q:\RPV\Stormwater\FY 15-16\reports\SD Fee Rpt 15-16 11 May 15 Rldocx Harris & Associates 41 City of Rancho Palos Verdes May 11, 2015 Water Quality and Flood Protection Program Storm Drain User Fee Annual Report - FY 2015-16 Page 5 Parcels within the City that have runoff flowing out of the City without going through any City - maintained drainage infrastructure are not included in this fee. There are also a number of County - maintained pipes within the City. If properties drain exclusively to these pipes and the pipe system does not include any City -maintained infrastructure, then they are not included in the fee. These areas, which consist of approximately 3,047 parcels, are excluded from the Storm Drain User Fee. For the purposes of this report, City -maintained infrastructure includes pipes, inlets, outlets, and natural drainage courses, and is also referred to as the "City's storm drain system." Inventory of Parcels Table 3, below, provides a summary of parcels by land use and shows the total estimated Drainage Units and ERUs for the City. SFR1 1,114 162.569 SFR2 1,899 349.683 SFR3 3,097 736.832 SFR4 2,811 1108.43 SFR5 952 746.759 SFR6 10 49.76 CNDO 1,846 139.478 MFR 39 53.69 COM 47 144.935 INST 20 114.24 GOV 47 490.238 -Percent Table 3 - Drainage Unit Summary DrainagePercent Changein Drain Units ERU Drain Units overPriorYr 120.055 1,017.4233 120.056 0.00% Table Land Use Description SFR: 0.01 - 0.16 acres (-0 sf- -7,012 sf) 58.0% 202.669 1,717.5829 202.768 405% SFR: 0.161 -0.20 acres (7,013 sf- 8,755 sf) 48.5% 357.420 3,029.0239 357.307 0.03% SFR: 0.201 - 0.28 acres (8,756 sf - 12,239 sf) 41.0% 451.424 3,825.6320 450.244 0.26% SFR: 0.281 - 0.54 acres (-12.240 sf - 23,565 so 34.5%* 214.802 1,820.3560 213.391 0.66% SFR: 0,541- 2.99 acres (-23.566 sf - 130,680 sf) actual* 3.666 31.0677 3.666 0.00% SFR: 3.0 acres and greater actual* 95.727 811.2726 95.727 0.00% Condominiums actual* 41.736 353.6949 41.736 0.00% Multi -Family Residential actual* 64.669 548.0422 64.692 -0.04% Churches, Private Schools, Institutions actual* 120.454 1,020.7963 120.454 0.00% Government-owned parcels 1,748.339 14,816.5611 1,745.225 0.18% the actual impervious percentages have been used for parcels with these landuses which includes SFR5 parcels > .75 AC The parcel areas for condominiums are calculated by dividing the total area of the condominium complex (which includes the common area) by the number of condominium units, and the total imperviousness of the entire complex is attributed to each individual condo parcel in the complex. (This divides the runoff of the entire complex to each of the individual units.) Because the condominium common areas are taken into consideration in this manner, they are exempt from the charge. Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 11 May 15 R2.docx I Harris Associates 4L City of Rancho Palos Verdes May 11, 2015 Water Quality and Flood Protection Program Storm Drain User Fee Annual Report- FY 2015-16 Page 6 Annual Fee Rate Table 4 provides the calculation of the Maximum Annual Fee Rate for FY 2015-16 and shows the actual proposed Fee Rate. Table 4 -Annual Fee Rate Base Year - FY 2006-07 FY 2007-08 CPI Increase 3.8% CPI Rate $89.27 2% Rate $87.72 Max. Rate $86.00 $87.72 Actual Rate $86.00 $87.72 FY 2008-09 3.3% $90.61 $89.47 $89.47 $89.47 FY 2009-10 0.0% $89.47 $91.26 $89.47 $89.47 FY 2010-11 1.4% $90.72 $91.26 $90.72 $90.72 FY 2011-12 2.3% $92.81 $92.53 $92.53 $92.53 FY 2012-13 2.1% $94.47 $94.38 $94.38 $92.53 FY 2013-14 2.2% $96.46 $96.27 $96.27 $96.27 FY 2014-15 0.5% $96.75 $98.20 $96.75 $96.75 FY 2015-16 0.1% $96.85 $98.69 $96.85 $96.85 The maximum rate will increase automatically on an annual basis by an amount equal to the annual change in Consumer Price Index for all Urban Consumers (CPI) for the Los Angeles, Riverside, Orange County Areas including all items as published by the U.S. Bureau of Labor Statistics as of March 1 of each year (12 months ended February), not to exceed a maximum increase of two percent (2%) per year. The actual rate to be levied each year will be as approved by the City Council at a public hearing, after they consider an Annual Fee Report outlining the estimated annual costs of the program. Table 5 provides sample fee calculations for various land uses and parcel sizes based on the proposed Actual Fee Rate. Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 1 Way 15 R2.docx Harris & Associates 43 City of Rancho Palos Verdes May 11, 2015 Water Quality and Flood Protection Program Storm Drain User Fee Annual Report - FY 2015-16 Page 7 Table 5 - Sample Calculations Land Use Designation Parcel Area (sf) Parcel Area (ac) x Est. Imperv. Percent Drainage = Units / 0.118 = ERU's FY 15-16 Annual Fee Rate/ERU $96.85 SFR1 3,500 0.08 x 0.740 = 0.059 / 0.118 = 0.5000 $48.43 SFR2 7,400 0.17 x 0.580 = 0.099 / 0.118 = 0.8390 $81.26 SFR2 8,300 0.19 x 0.580 = 0.110 / 0,118 = 0.9322 $90.28 SFR3 9,200 0.21 x 0.485 = 0.102 / 0.118 = 0.8644 $83.72 SFR3 10,000 0.23 x 0.485 = 0.112 / 0.118 = 0.9492 $91.93 SFR3 11,300 0.26 x 0.485 = 0.126 / 0.118 = 1.0678 $103.42 SFR4 13,500 0.31 x 0.410 = 0.127 / 0.118 = 1.0763 $104.24 SFR4 17,000 0.39 x 0.410 = 0.160 / 0.118 = 1.3559 $131.32 SFR4 21,400 0.49 x 0.410 = 0.201 / 0.118 = 1.7034 $164.97 SFR5 52,300 1.20 x 0.345 = 0.414 / 0.118 = 3.5085 $339.80 CNDO* 1,307 0.03 x 0.800 = 0.024 / 0,118 = 0.2034 $19.70 CNDO* 3,049 0.07 x 0.850 = 0.060 / 0.118 = 0.5085 $49.25 Non -SFR 13,068 0.30 x 0.820 = 0.246 / 0.118 = 2.0847 $201.90 Non -SFR 13,068 0.30 x 0.700 = 0.210 / 0.118 = 1.7797 $172.36 Non -SFR 29,185 0.67 x 0.350 = 0.235 / 0.118 = 1.9915 $192.88 Non -SFR 29,185 0.67 x 0.700 = 0.469 / 0.118 = 3.9746 $384.94 Non-5FR 71,874 1.65 x 0.650 = 1.073 / 0.118 = 9.0932 $880.68 Non -SFR 71,874 1.65 x 0.850 = 1.403 / 0.118 = 11.8898 $1,151.53 Non -SFR 135,907 3.12 x 0.400 = 1.248 / 0.118 = 10.5763 $1,024.31 Non -SFR 135,907 3.12 x 0.600 = 1.872 / 0.118 = 15.8644 $1,536.47 0.118 = Drainaee Units ner median SFR ERU = Equivalent Residential Unit * Condominium parcel areas = the area of the entire complex divided by the total number of units in the complex. The Preliminary Fee Roll, which is a listing of each parcel to be charged a fee and the maximum and actua I fee for FY 2015-16, is on file in the office of the City Clerk. Appeals Process If a property owner disagrees with the calculation of his or her fee, based on the parcel area and estimated impervious percentage assigned to the property, then the property owner may appeal the calculation as follows: 1. Property owner must provide written documentation explaining the reason why the charge should be changed. This documentation must include: a. The name, phone number, mailing address, and email address, if available, of the property owner. Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 11 May 15 Rldoex Harris & Associates CEl I City of Rancho Palos Verdes May 11, 2015 Water Quality and Flood Protection Program Storm Drain User Fee Annual Report — FY 2015-16 Page 8 b. The Assessor's Parcel Number (APN) of the property in question. c. To -scale drawings of the property in question and the impervious areas located on it with accompanying calculations. The to -scale drawings shall include the square footage and labels for each impervious area (i.e. house, garage, driveway, patio, tool shed, carport, etc.). 2. If additional documentation is required or insufficient documentation was submitted, a representative of the Public Works Department or his or her designee (Staff) will notify the property owner in writing within two (2) weeks of receipt of the appeal. 3. Once Staff has determined that sufficient documentation has been submitted, Staff will perform the initial review. Staff will notify the property owner in writing within four (4) weeks from the time sufficient documentation was submitted as to whether or not the fee amount will be changed. a. If the determination is to change the fee amount, then the new fee amount will be documented within the City's fee database. b. If the determination is that the fee should not be changed, the property owner can appeal Staff's decision to the Director of Public Works (Director). The appeal must be made in writing and returned no later than four (4) weeks from the date of mailing of Staffs initial review decision. The Director will notify the property owner in writing within four (4) weeks from the date of receipt of the appeal as to whether or not the fee amount will be changed. If the Director's determination is that the fee should not be changed, the property owner can appeal this decision to the City Council. The appeal must be made in writing and returned no later than four (4) weeks from the date of mailing of the Director's appeal decision. The City Clerk shall fix a time and place for hearing the appeal and shall give notice in writing to the appellant in the manner prescribed in Section 3.16.090 for service of notice of hearing. The City Council's determination on the appeal shall be final. Appeals will be accepted annually up until June 30 for inclusion on the following fiscal year's property tax roll submittal. However, if an appeal is granted by Staff, the Director or the City Council that does not permit inclusion for the following fiscal year's property tax roll submittal, a reimbursement will be provided to the property owner by the City. Q:\RPV\Stormwater\FY15-16\reports\SD Fee Rpt 15-16 11May] 5 R2.doex Harris &Associates 45