RPVCCA_SR_2010_06_01_07_Water_Quality_And_Flood_Protection_ProgramCrrvOF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
HONORABLE MAYOR AND MEMBERS OF THE CITY
COUNCIL
DENNIS McLEAN,DIRECTOR OF FINANCE &~
INFORMATION TECHNOLOGY
JUNE 1,2010
SUBJECT:WATER QUALITY AND FLOOD PROTECTION
PROGRAM·PUBLIC HEARING FOR ANNUAL USER
FEE RATE FY10·11
REVIEWED BY:CAROLYN LEHR,CITY MANAGER 09-
Staff Coordinator:Sara Singer,Senior Administrative Analyst@
RECOMMENDATION:
Adopt Resolution No._:A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES DESIGNATING A TIME AND PLACE FOR HEARING
PROTESTS IN CONNECTION WITH THE PROPOSED LEVY OF THE ANNUAL STORM
DRAIN USER FEE FOR FISCAL YEAR 2010-11.
BACKGROUND AND DISCUSSION
In 2005,the City Council adopted Ordinance No.418 establishing the annual Storm Drain
User Fee for all parcels of real property in the City that drain into City's storm drain system.
The Storm Drain User Fee was collected for the first time in Fiscal Year 2006-07.Each
year that the City Council desires to collect the Fee,the City Council must hold a public
hearing to conduct an annual review of the Fee and to consider a written report prepared in
connection with the Fee.
7-1
WATER QUALITY AND FLOOD PROTECTION PROGRAM·PUBLIC HEARING FOR
ANNUAL USER FEE RATE FY10·11
June 1,2010
Page 2 of 3
Process for Public Hearing
The attached resolution schedules a public hearing on the levy of the Storm Drain User
Fee for Fiscal Year 2010-11 on July 6,2010.The resolution directs the City Clerk to
publish notice of the public hearing on June 17,2010 and June 24,2010 in the Palos
Verdes Peninsula News.
The City will be receiving a Rate Analysis Report (the "Report")prepared by Harris &
Associates which identifies each developed parcel that is subject to the Storm Drain User
Fee and the amount of the proposed Fee for each parcel for Fiscal Year 2009-10.The
Report will be placed on file in the office of the City Clerk and be available for public
inspection no later than June 8,2010.
At the July 6,2010 public hearing,the City Council must consider all protests or objections
to the Report and all testimony regarding the proposed levy of the Storm Drain User Fee
for Fiscal Year 2010-11.In addition,pursuant to Section 3.44.40 of the City's Municipal
Code,at the public hearing the City Council must consider whether to collect the Storm
Drain User Fee for Fiscal Year 201 0-11,and,if so,the rate per Equivalent Residential Unit
("ERU")for Fiscal Year 201 0-11.In making its determinations,the City Council must take
into account the current and projected revenues of the City for Fiscal Year 2010-11,
including but not limited to,property taxes,sales taxes and transient occupancy taxes;the
current and projected expenditures of the City for Fiscal Year 2010-11,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 must
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.The Oversight Committee is scheduled to hold a public hearing on
May 26,2010.
At the conclusion of the JUly 6th public hearing,the City Council must determine if a
majority protest exists.A majority protest will exist if written protests are made by the
owners of a majority of the parcels subject to the Fee for Fiscal Year 2010-11.
If there is no majority protest,the City Council may adopt a resolution approving the Report
as filed or modifying the Report,and directing that the Storm Drain User Fee for Fiscal
Year 2010-11 be collected on the County tax roll.On or before August 10,2010,the City
Clerk must file the Report with the County Auditor-Controller together with a statement
endorsed on the Report that it has been finally adopted by the City Council.
In the event of a majority protest,the Storm Drain User Fee may be collected for Fiscal
Year 2010-11,but the Fee may not be collected on the County tax roll.
The maximum annual Storm Drain User Fee rate per ERU was established at $86 for
Fiscal Year 2006-07.Pursuant to Chapter 3.44 of the City's Municipal Code,such
7-2
WATER QUALITY AND FLOOD PROTECTION PROGRAM·PUBLIC HEARING FOR
ANNUAL USER FEE RATE FY10·11
June 1,2010
Page 3 of3
maximum annual rate per ERU shall be increased annually commencing with Fiscal Year
2007-08 by an amount equal to the change in the Consumer Price Index (CPI),but not to
exceed a maximum increase of 2%per year.The Storm Drain User Fee rate per ERU for
Fiscal Year 2009-10 is $89.47.The maximum Storm Drain User Fee rate per ERU for
Fiscal Year 2010-11 is $90.72,based on a 1.4%increase in CPI.
The Report will compute the Fiscal Year 2010-11 Storm Drain User Fee in conformity with
Chapter 3.44 of the Municipal Code,using a rate of $90.72 per ERU.The amount of the
Fee for each developed parcel is based on the parcel's ERUs times the rate per ERU.A
parcel's ERUs are computed by a formula that takes into account the size of the parcel and
the amount of the impervious area.Following the July 6,2010 public hearing,the City
Council may set the rate per ERU at any amount up to and including the maximum rate per
ERU of $90.72.In no event shall the Fiscal Year2010-11 rate per ERU be set in excess of
$90.72 without obtaining approval of a majority of the property owners subject to the Storm
Drain User Fee pursuant to Proposition 218.
FISCAL IMPACT
The City Council preViously approved the establishment of a Water Quality and Flood
Protection Enterprise Fund (the "Enterprise Fund").The Storm Drain User Fee revenues
are deposited into the Enterprise Fund to enable program accountability and s~paration
from all other financial activities of the City.The Enterprise Fund is audited annually by .
independent Certified Public Accountants as a part of their examination of the City's
financial statements.
Attachments:Resolution No.2010-_
7-3
RESOLUTION NO._
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES
DESIGNATING A TIME AND PLACE FOR HEARING PROTESTS IN CONNECTION
WITH THE PROPOSED LEVY OF THE ANNUAL STORM DRAIN USER FEE FOR
FISCAL YEAR 2010·11
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS,
DETERMINES,AND RESOLVES AS FOLLOWS:
Section 1.The City Council of the City of Rancho Palos Verdes (the "City
Council")pursuant to its Ordinance No.418,adopted on August 16,2005,established
an annual Storm Drain User Fee (the "Storm Drain User Fee")for services and facilities
furnished by the City in connection with its storm drain system.In the absence of a
majority protest,and unless the City Council,by resolution,provides for an alternative
procedure for collection,for each year that the Storm Drain User Fee is collected,the
Storm Drain User Fee shall be collected on the County of Los Angeles Tax Roll,in the
same manner,by the same persons,and at the same time as,together with and not
separately from,the general taxes of the City in the manner prescribed by Sections
5470 et seq.of the California Health and Safety Code.
Section 2.Harris &Associates is preparing a written report (the "Report")
containing a description of each developed parcel within the City to which the Storm
Drain User Fee is applicable and the amount of the Storm Drain User Fee for each
such parcel for Fiscal Year 2010-11.Such Report shall calculate the amount of the
Storm Drain User Fee for each developed parcel for Fiscal Year 2010-11 using $90.72
as the rate per Equivalent Residential Unit (ERU)for Fiscal Year 2010-11 in
accordance with Chapter 3.44 of the City's Municipal Code.The amount of the Fee for
each developed parcel is based on the parcel's ERUs times the rate per ERU.A
parcel's ERUs are computed by a formula that takes into account the size of the parcel
and the amount of the impervious area.Upon the filing of the Report with the City Clerk,
the City Clerk is hereby directed to place the Report on file in the office of the City Clerk
and make such Report available for public inspection.
Section 3.NOTICE IS HEREBY GIVEN that the City Council designates
Tuesday,July 6,2010,at the hour of 7:00 p.m.,in the Council Chambers,Fred Hesse
Park Community Center,29301 Hawthorne Boulevard,Rancho Palos Verdes,
California,as the time and place for a Public Hearing on the above-described Report.
In addition,pursuant to Section 3.44.40 of the City's Municipal Code,at the Public
Hearing the City Council will consider whether to collect the Storm Drain User Fee for
Fiscal Year 2010-11,and,if so,the rate per ERU for Fiscal Year 2010-11.In making its
determinations,the City Council will take into account the current and projected
revenues of the City for Fiscal Year 2010-11,including but not limited to,property taxes,
sales taxes and transient occupancy taxes;the current and projected expenditures of
the City for Fiscal Year 2010-11,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
-1-7-4
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.
Following the Public Hearing,if the City Council determines to levy the Storm
Drain User Fee for Fiscal Year 2010-11,the City Council may set the rate per ERU for
the Storm Drain User Fee at any amount up to and including the maximum rate of
$90.72 per ERU.In no event shall the Fiscal Year 2010-11 rate per ERU be set in
excess of $90.72 without approval by a majority vote of the property owners subject to
the Storm Drain User Fee pursuant to Proposition 218.
Section 4.At the above-described Public Hearing,all interested persons shall
be afforded the opportunity to hear and be heard,and the City Council shall consider all
objections and protests against the Report and all testimony regarding the proposed
levy of the Storm Drain User Fee for Fiscal Year 2010-11.If protests against the
Report are made by a majority of owners of the Identified Parcels by the close of the
Public Hearing,the City may impose the Storm Drain User Fee for Fiscal Year 2010-11,
but may not collect the Storm Drain User Fee on the County Tax Roll for Fiscal Ye"ar
2010-11.In the absence of a majority protest,the City Council may adopt the Report,
as filed,or as modified by the City Council,and may order that the Fiscal Year 2010-11
Storm Drain User Fee be collected on the County Tax Roll.
Section 5.The City Clerk is hereby authorized and directed to give notice of
the above-described Public Hearing by publishing a notice of the Public Hearing in the
Palos Verdes Peninsula News pursuant to Government Code Section 6066 on June 17,
2010 and June 24,2010.
Section 6.Reference is hereby made to the Report described in Section 2
hereof,which Report shall be placed on file in the office of the City Clerk no later than
June 8,2010,for a full and detailed description of the proposed Storm Drain User Fee
for Fiscal Year2010-11.
Section 7.The City Council hereby designates Dennis McLean,the City's
Director of Finance and Information Technology,telephone number (310)544~5212,to
answer inquiries regarding the Public Hearing,protest proceedings and procedural or
technical matters.
PASSED,APPROVED and ADOPTED this __day of ,2010.
Mayor
ATTEST:
City Clerk
-2-7-5
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.2010-was duly and regularly passed and adopted
by the said City Council at a regular meeting thereof held on ,2010.
City Clerk
Resolution No.2010-__
-3-7-6