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CR41FOR��P City Council Staff Report
Date: April 5, 2017 CONSENT CALENDAR
Subject: APPROVAL OF THE FISCAL YEAR 2017/2018 CSA 152 SPECIAL
ASSESSMENT RATE
From: David H. Ready, City Manager
Initiated by: Engineering Services Department
SUMMARY
In accordance with an administrative services agreement with Riverside County for
administration of the County Service Area 152 ("CSA 152") for the National Pollutant
Discharge Elimination System ("NPDES"), Riverside County requires the City to
establish its CSA 152 budget and confirm the levy of special assessment for Fiscal Year
2017/2018 by April 1, to allow Riverside County sufficient time to assemble and
coordinate with the County's levy of special assessments. This item approves the CSA
152 special assessment rate of $9.50 per single family residential property, which
remains unchanged from prior year's assessments.
RECOMMENDATION:
Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS CALIFORNIA, MAKING FINDINGS AND REAFFIRMING THE
ESTABLISHMENT AND SETTING OF RATES FOR COUNTY SERVICE AREA 152
FOR FISCAL YEAR 2017/2018 TO FUND THE CITY'S NATIONAL POLLUTION
DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT IN ORDER TO OPERATE
AND MAINTAIN THE CITY'S DRAINAGE AND FLOOD CONTROL SYSTEMS."
STAFF ANALYSIS:
The NPDES Program is a federally mandated program to control non-point sources of
runoff pollution. In 1972, the Federal Water Pollution Control Act ("Clean Water Act" or
"CWX) was amended to provide that discharge of pollutants to waters of the United
States from any point source is effectively prohibited, unless the discharge is in
compliance with a NPDES Permit. The Clean Water Act was amended in 1987 to
establish a framework for regulating municipal and industrial stormwater discharges
under the NPDES Program. In 1997, the City adopted Chapter 8.70 of the Municipal
Code which incorporates regulations of the NPDES Program.
ITEM NO.
City Council Staff Report
April 5, 2017 - Page 2
CSA 152 Annual Report/ Levy Assessment
The CWA made it unlawful to discharge any pollutant from a point source into navigable
waters, unless a permit was obtained. EPA's National Pollutant Discharge Elimination
System (NPDES) permit program controls discharges. Point sources are discrete
conveyances such as pipes or man-made ditches. Individual homes that are connected
to a municipal system, use a septic system, or do not have a surface discharge do not
need an NPDES permit; however, industrial, municipal and other facilities must obtain
permits if their discharges go directly to surface waters.
The CWA establishes requirements for the discharge of urban runoff from the Municipal
Separate Storm Sewer System ("MS4") under the NPDES program. The Colorado
River Basin Regional Water Quality Control Board ("RWQCB") issued Permit Order No.
R7-2013-0011 to authorize the discharge of urban runoff from within the City on June
20, 2013. The permit regulates the operation and maintenance of the City's Municipal
Separate Storm Sewer System (or "MS4" — the system of streets and storm drainage
systems that convey storm water runoff to the various waters of the U.S., including the
Tahquitz Creek, Palm Canyon Wash, and Whitewater River). The NPDES permit
regulates the discharge of pollutants in urban stormwater runoff generated from
development projects, and from existing industrial facilities, restaurants, and commercial
sites. The goal of the NPDES permit is to prevent polluted runoff generated on public or
private properties from passing directly to the MS4 and thereby polluting the waters of
the U.S.
The NPDES permit requires the City to inspect construction sites, industrial facilities,
restaurants and commercial sites. Inspection frequency is based on various factors,
such as: the type of business and activities; the types of potential pollutants present;
whether the business is in significant non-compliance and proximity to impacted waters.
Businesses are assigned to a high, medium or low priority inspection based on the
Standard Industrial Code (SIC). Businesses that are classified as high priority must be
inspected annually, medium priority businesses once every two years and low priority
businesses once every five years.
Examples of polluted stormwater runoff that are to be prevented through the City's
NPDES inspection program are shown in the following photos. The examples identify
erosion and sediment pollution caused by an active construction site; oils and polluted
contaminants in a drainage gutter; leaking fluids from stored equipment; and leaking
toxic chemicals and other pollutants from a commercial trash enclosure.
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City Council Staff Report
April 5, 2017- Page 3
CSA 152 Annual Report/Levy Assessment
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City Council Staff Report
April 5, 2017 - Page 4
CSA 152 Annual Report/ Levy Assessment
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City Council Staff Report
April 5, 2017 - Page 5
CSA 152 Annual Report/Levy Assessment
Riverside County originally formed CSA 152 to finance a portion of its programs and
obligations associated with its NPDES Permit. The City annexed into CSA 152 in 1993,
to allow for the levy of special assessments to offset the City's costs related to
administering the NPDES Program.
On June 23, 2016, the City Council approved an Administrative Services Agreement
with Riverside County that facilitates the County's administration of the NPDES
Program on the City's behalf, to be offset by the special assessments collected in CSA
152. The special assessment rate in Palm Springs is $9.50 annually per Benefit
Assessment Unit ("BAU"). The BAU is defined as a single family home on a 7,200
square feet (1/6 acre) lot. In accordance with the agreement with Riverside County, the
City is required to complete its annual report for the CSA 152 Program, and confirm the
CSA 152 assessment, by April 1 to allow Riverside County to assemble and coordinate
the levy of the CSA 152 special assessments in the next tax roll.
Staff recommends that the City Council adopt a Resolution making certain findings and
setting the BAU for CSA 152 at the currently adopted and existing rate of $9.50 which
does not exceed the prior BAU special assessment rate originally adopted by the City
Council in 1994. The annual report confirming the special assessment rate is included
as Attachment 1.
ENVIRONMENTAL IMPACT:
The requested City Council action is not a "Project" as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the
whole of an action, which has a potential for resulting in either a direct physical change in
the environment, or a reasonably foreseeable indirect physical change in the
environment. According to Section 15378(b), a Project does not include: (5)
Organizational or administrative activities of governments that will not result in direct or
indirect physical changes in the environment.
FISCAL IMPACT:
The CSA 152 special assessment of $9.50 per BAU is estimated to generate $454,925
in revenue in Fiscal Year 2017/2018 to fund all activities associated with the City's
NPDES Program.
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City Council Staff Report
April 5, 2017 - Page 6
CSA 152 Annual Report/ Levy Assessment
SUBMITTED:
Marcus L. Fuller, MPA, P.E., P.L.S. David H. Ready, Esq., 05;15-
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Assistant City Manager/City Engineer City Manager
Attachments:
1. Annual Report
2. Resolution
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ATTACHMENT 1
07
QNBS
helping communitles
fund tomorrow
City of Palm Springs
County Service Area 152 - National Pollutant Discharge
Elimination System (NPDES)
Fiscal Year 2017118 Annual Report
Main Office
32605 Temecula Parkway.. Suile 100
Ternecula. CA 92592
Toll free: 800.676.7516 Fax 951.296.1998
Regional Office
870 Market Street. Suite 1223
San Francisco, CA 94102
Toll free; 800.434.8349 Fax: 415,391.8439
08
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Phone -(760) 323-8299
CITY COUNCIL
Robert Moon, Mayor
Ginny Foat, Mayor Pro Tem
Chris Mills, Councilmember
Geoff Kors, Councilmember
J.R. Roberts, Councilmember
CITY STAFF
Marcus Fuller, Assistant City Manager/City Engineer
Savat Khamphou, Senior Civil Engineer
NBS
Dave Ketcham, Client Services Director
Jason Roth, Consultant
09
TABLE OF CONTENTS
1 EXECUrIVE SUMMARY 1 f
I MA/NMNANCEAND SERMES 2--1
I ESAWATEOFCOSTS 3-1
3.1. District Budget..............................................................................................3-1
3.2. Fund Balances..............................................................................................3-1
4, MEMODOLOGYOFCHARGE ¢f
4.1. Background and Methodology......................................................................4-1
4.2. Land Use Categories....................................................................................4-1
4.3. Maximum Annual Rate .................................................................................4-2
5 CSA MBOUNDAR/ES 5-f
6 LEVYL/ST/NG &f
10
1 EXECUTIVE SUMMARY
The County of Riverside (the "County") formed County Service Area 152 (the "CSA 152") on
November 26, 1991 with the passage of Resolution No. 93-634. At formation, CSA 152 encompassed
all unincorporated lands within the boundaries of the County. The purpose of the formation was to
provide for implementation of the federally mandated National Pollutant Discharge Elimination
System (NPDES) Program (the "Program") to control non-point source pollution. Non-point source
pollution, caused by rain or snowmelt, moves water over and through the ground picking up natural or
synthetic pollutants from the ground and then transmitting these pollutants into streams, rivers, lakes,
wetlands, estuaries, coastal water, and groundwater. NPDES is part of the Clean Water Act, Section
319, enacted by Congress in 1987. The Clean Water Act requires that all municipal, industrial, and
commercial facilities that discharge wastewater or storm water directly from a point source into waters
of the United States must obtain a NPDES permit. Permits are issued to ensure the receiving waters
will achieve the federally mandated water quality standards. States are required to address such
pollution by producing assessment reports, adopting management programs to control non-point
source pollution, and implementing these management programs to curb pollution.
The Program requires runoff be controlled by all storm water systems. Therefore, all local agencies,
including the City of Palm Springs (the "City"), bear the responsibility for their own storm water
systems in which they own and operate. Storm water systems include, but are not limited to
roadways, drainage systems, washes, etc. As such, the City annexed into CSA 152 in 1993, to allow
for the levy of the Charge to offset the City's costs related to administering the Program.
Annually the City Council of the City of Palm Springs (the "Council') will pass a resolution approving
the annual report(the"Report")and setting the BAU Rate.
The proposed BAU Rate for Fiscal Year 2017/18 remains at$9.50.
The following table summarizes the proposed Fiscal Year 2017/18 annual levy to cover the
management and implementation of the Program:
Fiscal Year 2017/18 Proposed Levy Summary
Number of Parcels Levied for Proposed Levy
Parcel Type Fiscal Year 2017118 for Fiscal Year 2017118
Assessor's Parcel Number 22,910 $353,224.36
Taxable Possessory Interest 5,187 101,700.86
Total: 28,097 $464,926.22
The Program is levied in accordance with the methodology adopted and approved by the City Council
at the time of the CSA 152 formation. The final levy submitted to the Riverside County Auditor-
Controller in August, may vary due to changes in the County's secured roll data that is released in
July.
County Service Area 152 Annual Report—City of Palm Springs 1-1
Prepared by NBS— Fiscal Year 2017/18 1
2. MA/NTENANCEAND SERYWES
The City's portion of the Program is levied and collected annually to offset costs associated with the
Program. Revenues generated from the charge regularly provide a variety of services benefiting the
properties that lie within the City's boundaries. The City provides services either directly through City
staff, indirectly via contractors, or through County efforts to service the public improvements and
specified areas within the boundaries of the City.
In general, the services provided using CSA 152 revenues include, but are not limited to, the following
activities resulting from the management and implementation of the Program:
• Developing a plan to reduce pollutants in storm water runoff that meets the minimum federal
standards at minimum cost to area residents.
• Identifying the various locations of pollution and types of pollutants carried in storm water
runoff.
• Reviewing existing programs designed to protect against water pollution.
• Developing new programs to meet future federal standards and obtaining necessary permits
from the State and regional water quality authorities.
• Educating the public about the problems associated with storm water runoff pollution, helping
citizens learn what they can do to help contain this problem.
The implementation of the Program requires the City to provide maintenance to improvements and
various services to ensure compliance with the Program requirements. These services include, but
are not limited to:
• Water quality monitoring program
• Pollution prevention program
• Public education program
• Inspections
• Code enforcement
Street cleaning, sweeping, and maintenance
• Hazmat removal
• Basin cleaning and maintenance
• Contractual services
Consultant services
• Administration of the program
• Staffing costs and overhead allocations
Actual services provided may differ from those authorized based upon current resources, needs, and
funding levels available. In addition, the Program may be authorized to provide additional services as
outlined previously, beyond what services are actually provided.
County Service Area 152 Annual Report—City of Palm Springs 2-1
Prepared by NBS—Fiscal Year 2017/18 12
3. EST/MATEOFCOSTS
I f. District Budget
Adopted Proposed
2016M7 2017118
124-242 CSA 152-STREET CLEANING Budget Budget Detail
40800 OVERTIME $4,000 $4,000
Availability $4,000
42500 TRAVEL&TRAINING $160 $0
$0
43100 HAZMAT REMOVAL $15,200 $15,200
Waste discharge fee $15,200
43200 CONTRACTUAL SERVICES $355,000 $361 000
Emergency Event Street Sweeping(Clean
St BPO) $20,000
Roadside Cleanup $80,000
Waste Disposal-$40/T x 250T $10,000
NPDES Permit Fee $16,000
NPDES Cost Sharing w/RCFC&WCD $35,000
NPDES Stormwater Program $200,000
48400 ADMINISTRATION $10,000 $10,000
Fee $10,000
TOTALS: $384,360 $390,200
32. FundB81aJ7CW
The City may contribute financial resources to CSA 152 and the associated Program. However, the
County holds monies that are available to the City. Below are the most recent City-held and County-
held fund balances available.
City-Held Fund Balance as of County-Held Fund Balance as
June 30,2016 of December 31,2016
($17,220.001 $1,650,069. 66
County Service Area 152 Annual Report—City of Palm Springs 3-1
Prepared by NBS—Fiscal Year 2017118 13
4. METHODOLOGYOF MARGE
4 f Background and Methodo%gy
The methodology for the charge is the BAU method developed by Riverside County Flood Control
District. This method spreads the total charge to parcels within CSA 152 in proportion to each parcel's
runoff. Runoff is determined by first knowing a parcel's size in acres, its present land use, and then
assigning a runoff factor to its general land use category. Runoff factors are estimates of how much
rainfall runs off a parcel in comparison to the amount of rainfall that falls on a parcel. In other words,
the runoff factor is a way of expressing the relative degree of imperviousness of parcels with different
land uses. Paved and improved parcels have runoff factors closer to 1.0 (where 1.0 equals 100%
runoff) than do unpaved or unimproved parcels. Reducing the large number of land uses in the
County to six general categories for estimating runoff under the benefit assessment procedure
provides for a manageable and reasonable computation method.
For the Program, additional factors have been brought into the analysis that consider the type of
activity on that land use. The Program is required by Federal Regulation to focus its attention on
urbanized areas or developments and to exclude agricultural properties. Therefore, agricultural and
vacant undeveloped properties have been completely exempted from the Program though they may
have some amount of runoff.
The computation of the charge for any parcel is based on the number of BAUs assigned to that
parcel. A single-family residential parcel of 7,200 square feet (1/6 acre) in size with a runoff factor of
0.40 was selected as the standard BAU. The number of BAUs for any other parcel can be computed
by relating its size and land use to the BAU.
4.2. Land Use Categories
The table below shows the six categories of land use, their respective runoff factors, and the BAU per
acre.
Group Land Use Factor BAU Per Acre
A Commercial, Industrial 0.80 12
B Apartments/Mobile Home Parks, Churches, Schools 0.60 9
C Single Family Residential 0.40 6
D Poultry, Irrigated/Cultivated Crops, Livestock, Vacant 0.00 0
Undeveloped
E Golf Courses, private Parks 0.0067 0.10
F Parcels with Miscellaneous Structures 0.0033 0.05
Calculation of a typical Commercial Charge is as follows:
(BAU)X(Developed Acreage)X(Rate) =Annual Charge
County Service Area 152 Annual Report—City of Palm Springs 4-1
Prepared by NBS—Fiscal Year 2017/18 14
4,3, Maximum Annua/Rate
The Charge's maximum annual rate is $9.50 per BAU and the maximum annual rate is the same as
was originally adopted in 1994.
Fiscal Year Fiscal Year Fiscal Year
District 201WI7Actual 2017/18 2017118
-7 Rate Proposed Rate Approved Rate
County Service Area 152 $9.50 $9.50
County Service Area 152 Annual Report—City of Palm Springs 4-2
Prepared by NBS—Fiscal Year 2017/18
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6, LEVYL/ST/NG
Due its size, the Levy Listing in electronic format is on file with the City. The description of each lot or
parcel as part of the records of the County Assessor of the County of Riverside are, by reference,
made part of this Report.
County Service Area 152 Annual Report—City of Palm Springs 6-1
Prepared by NBS—Fiscal Year 2017/18 17
ATTACHMENT 2
18
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS CALIFORNIA, MAKING FINDINGS AND
REAFFIRMING THE ESTABLISHMENT AND SETTING OF
RATES FOR COUNTY SERVICE AREA 152 FOR FISCAL
YEAR 2017/2018 TO FUND THE CITY'S NATIONAL
POLLUTION DISCHARGE ELIMINATION SYSTEM
(NPDES) PERMIT IN ORDER TO OPERATE AND
MAINTAIN THE CITY'S DRAINAGE AND FLOOD
CONTROL SYSTEMS
WHEREAS, the Riverside County Service Area 152 (CSA 152) was created under the
Benefit Assessment Act of 1982 (Government Code Section 54702, et seq.), which
authorized local agencies to impose benefit assessments to finance the maintenance
and operation costs of flood control and drainage systems, based on the proportionate
storm water runoff from each parcel; and
WHEREAS, under the federally-mandated but unfunded National Pollutant Discharge
Elimination System (NPDES) Program, the City is required to have a valid permit from
the Regional Water Quality Control Board to discharge water runoff from properties
within the boundaries of the City; and
WHEREAS, street sweeping is a pro-active method of ensuring pro-active maintenance
from street runoff into the flood control and drainage systems of the City; and
WHEREAS, the City is a co-permittee of NPDES Permit No. CAS-617002 with the
Coachella Valley Water District, County of Riverside and the incorporated cities therein;
and
WHEREAS, the City, by its Resolution No. 18088 adopted on May 5, 1993, requested
the Local Agency Formation Commission to undertake proceedings to annex the City of
Palm Springs into CSA 152 for the purpose of partially funding the City's implementation
of the NPDES Program; and
WHEREAS, the Count of Riverside, by its Resolution No. 93-454 adopted December
21, 1993, annexed the City of Palm Springs into CSA 152 to partially fund the costs of
maintaining and operating the City's flood control and drainage systems under the
NPDES Permit; and
WHEREAS, the City by its Resolution No. 18351 adopted March 16, 1994,
recommended that the County Board of Supervisors adopt the City's proposed initial
budget for the portion of CSA 152 contained within the City; and
WHEREAS, the CSA 152 charges assessed on each parcel within the City are
determined in proportion to the storm water runoff attributable to each parcel; and
19
Resolution No.
Page 2
WHEREAS, the City uses revenues from the CSA 152 assessments solely for the
purpose of complying with the terms of the NPDES Permit, and for maintaining and
operating the City's flood control and drainage system; and
WHEREAS, Proposition 218, adopted by voters on November 6, 1996, established new
procedures and approval requirements for all existing assessments, unless the
assessment is exempt from the new requirements; and
WHEREAS, certain assessments that existed on November 6, 1996, are specifically
exempt from the Proposition 218 procedures and approval requirements, including
assessments imposed exclusively to finance the capital costs and maintenance and
operation expenses for sidewalks, streets, sewers, water, flood control, drainage
systems or vector control.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE
AS FOLLOWS:
Section 1. The City Council finds the foregoing recitals to be true and correct.
Section 2. The City Council finds and declares that the City's CSA 152 charges are
assessments within the definition of California Constitution Article XIIID, Section 2(b), in
that they confer special benefits upon each parcel of property subject to the assessments.
Section 3. The City Council finds and declares that pursuant to Article XIIID, Section 5(a),
the City's CSA 152 assessments are exempt from the new procedures and approval
requirements of Article XIIID, Section 4, because the City's CSA 152 assessments existed
before November 6, 1996, and the assessments are imposed exclusively to finance the
capital costs and maintenance and operation expenses for flood control and drainage
systems in the City.
Section 4. The City Council hereby reaffirms its adoption of the annual assessment for
CSA 152 and hereby determines that the annual assessment rate for Fiscal Year
2017/2018 for CSA 152 is to be set at Nine Dollars and Fifty Cents ($9.50) per Benefit
Assessment Unit. The method of computation has not been changed nor has the rate of
assessment been increased since the assessment was first approved the City in
accordance with Resolution No. 18351 adopted March 16, 1994.
Section 5. The City Council hereby authorizes the County of Riverside to levy
assessments under CSA 152 for the benefit of the City.
Resolution No.
Page 3
ADOPTED this 5th day of April, 2017.
David H. Ready, City Manager
ATTEST:
Kathleen D. Hart, Interim City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on April 5, 2017, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Kathleen D. Hart, Interim City Clerk
City of Palm Springs, California
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