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HomeMy WebLinkAboutNS-2479 - Adding Article XVII to Chapter 13 and Sections 39-55.1 to 39-55.5 to the City's Code...ORDINANCE NO. NS-2479 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADDING ARTICLE XVII TO CHAPTER 13 AND SECTIONS 39-55.1 - 39-55.5 TO THE CITY'S CODE, ESTABLISHING A SEWERAGE SERVICE ENTERPRISE FUND AND SEWERAGE SERVICE FEE THE CITY COUNCIL OF THE CITY OF SANTA ANA ORDAINS AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: The City has for generations provided to its citizens a system to transport sewerage generated by residents and businesses to the County of Orange system where it is treated and disposed. On May 21,2001 the City Council was presented, at a study session, with evidence demonstrating that large portions of the City's sewerage system, located in no one area but citywide, is of sufficient age that it is need of additional and extraordinary repair and replacement. The City currently does not levy a fee or charge for the service of transporting sewerage. This service is a commodity in that the more water a water customer consumes the greater the sewerage that the customer generates. The City's Charter and State law, including but not limited to Government Code section 54340 et seq., provide that the City may establish reasonable charges and fees for the service the City provides in transporting sewerage to the Orange County publicly owned treatment works and related infrastructure. A fee for this service would not duplicate any existing fee, charge, levy or other toll currently collected by the City or any public agency, and would be distinct and separate from any current or future (i) sewer standby or availability charge or assessment, (ii)special benefit assessment of special tax imposed pursuant to state or local law, (iii) sewer connection charge or sewer capacity charge paid in connection with or as a condition of approving an application for sewer service, or (iv) any mitigation fee imposed on new development pursuant to state law (Government Code § 66000 et seq.) or local law. This fee would not be charged, because no sewerage service is being provided, to raw land, vacant property (i.e., where no water service is being Ordinance No. NS-2479 Page 1 of 6 provided), to a customer who is consuming no water, to a water customer who is directly connected to a county owned sewer, or to a water customer whose only water consumption is for fire service or irrigation. The moneys collected by such a service fee would be placed into a fund that would be used only to repair, replace and perform preventative maintenance on city owned sewer mains or sewer trunk lines, and associated costs. In addition, in a change to current policy, the City could use such funds to repair and replace that portion of the sewer customer's lateral that lies within the public right of way when necessary. No moneys from this fund would go to the city's general fund. This ordinance has been found to be, and the Council concurs is, exempt from the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code § 15273(a)(1) (exempting charges imposed by public agencies to meet operating expenses) and State CEQA Guidelines § 15301 (exempting the repair, maintenance or minor alteration of existing public facilities). Section 2: Sections 39-55.1 - 39.55.6 are hereby added to the Santa Ana Municipal Code to read as follows: Sec. 39-55.1. Sewerage Service Fee - Purpose. In order to reimburse the City, in part, for its service in transporting sewerage from a water utility customer or other person using the city-owned sewer system and facilities to Orange County's publicly owned treatment works and related infrastructure, and to operate, maintain, repair and replace said city- owned sewer system and facilities, it is appropriate for the City to charge a sewerage service fee. This fee does not duplicate any existing fee, charge, levy or other toll currently collected by any public agency, and is intended to be, and shall be interpreted as, distinct and separate from any current or future (a) sewer standby or availability charge or assessment; (b) special benefit assessment or special tax imposed pursuant to state or local law; (c) sewer connection charge or sewer capacity charge paid in connection with or as a condition of approving an application for sewer service; or (d)any mitigation fee imposed on new development pursuant to state law (Government Code § 66000 et seq.) or local law. Where appropriate, words and phrases used in sections 39-55.1 through 39.55.6 shall have the same meaning as given them under Article II of this Chapter. Sec. 39-55.2. Sewerage Service Fee - Establishment. a. Except as provided in section 39-55.3 of this Code, upon each water utility customer of the City there shall be imposed, in addition to the commodity charge for usage of City water, a sewerage service fee. All sewerage Ordinance No. NS-2479 Page 2 of 6 service fees imposed pursuant to this subsection shall be due and payable at the time and in the manner provided in this Code for payment of water utility bills pursuant to Article II of this Chapter, but shall be listed as a separate line item on the water utility bill. The sewerage service fee shall be charged based upon the volume of usage of the city's sewer system by the water utility customer, as measured by metered water service. b. Excepts as provided in section 39-55.3, subsections (a) through (c) of this Code, upon any person who receives potable water service from a municipal water provider other than the City or from a private water provider, and who discharges into the city-owned sewer system and facilities there shall be imposed a sewerage service fee. All sewerage service fees imposed pursuant to this subsection shall be due and payable at the time and in the manner provided in this Code for payment of water utility bills pursuant to Article II of this Chapter. The sewerage service fee shall be charged based upon the volume of usage of the city's sewer system by the person, as measured by metered water service or other means approved by the Director of the Public Works Agency or designee. Sec. 39-55.3. Sewerage Service Fee - Exceptions. The following types of connections shall not be liable for payment of the sewerage service fee: (a) fire service connections when separately metered; (b) irrigation service connection when separately metered; (c) any individual, partnership, association, corporation or agency of government that is not connected to the City's sewerage system; provided, however, that it shall be the obligation of the individual, partnership, association, corporation or agency of government to present evidence of this fact to the City; or (d) any water utility customer who has not received City supplied water during a billing period. Sec. 39-55.4. Sewerage Service Fee - Setting Reasonable Fee. The City Council shall, from time to time, set a reasonable sewerage service fee by resolution. All monies collected from the sewerage service fee, including penalties and interest for late payment, shall be deposited into the Sewerage Enterprise Fund established pursuant to Chapter 13 of this Code. Sec. 39.55.5. Sewerage Service Fee - Delinquencies. Ordinance No. NS-2479 Page 3 of 6 Delinquent sewer service fee charges against a water utility customer or person shall constitute a lien against property upon recordation following appropriate action by the city council following substantial compliance with all provisions of Government Code section 54354 et seq., as it may be amended from time to time, including notice and an opportunity to be heard; except as may be provided therein. As a separate and distinct remedy, the city attorney is authorized to bring suit pursuant to Government Code section 54356. The city shall not disconnect water utility service for failure to pay the sewer service fee, unless said failure is accompanied by a customer's failure to pay the water utility service in which case disconnection of water utility service shall be governed by Article II of this Chapter. Section 33-55.6. Variance From Payment Of Sewerage Service Fee. Any person subject to the Sewerage Service Fee may request that the Director or designee waive the requirement of payment of the Sewerage Services Fee due to individual cimumstances that demonstrate, on a case-by- case basis, that the amount of the fee is not reasonably related the cost of the service the City provides in transporting sewerage to the Orange County publicly owned treatment works and related infrastructure. The decision of the Director or designee may be appealed pursuant to Chapter 3 of this Code. Section 3: follows: Article XVII is hereby added to Chapter 13 of the Code to read as ARTICLE XVlI. SEWERAGE ENTERPRISE FUND Sec. 13-155. Creation of Sewerage Enterprise Fund. There is hereby created and established the Sewerage Enterprise Fund. Sec. 13-156. Deposit of Moneys. All moneys received by the City as a sewerage service fee established pursuant to section 39.55.1 of the Code, shall be deposited into the Sewerage Enterprise Fund.. Sec. 13-157. Expenditure of Moneys. Moneys in the sewer enterprise fund shall be expended only for: (a) repair, replacement and preventative maintenance of city owned main/trunk sewer lines; (b) repair and replacement of sewer laterals, from city owned main/trunk lines and only for that portion located in the public right of way, if in the sole and Ordinance No. NS-2479 Page 4 of 6 final determination of the Executive Director of the Public Works Agency or designee this portion of lateral is in need of replacement or repair; provided, however that moneys in the fund shall not be expended for maintenance or cleaning of said laterals; (c) planning, study, administrative, record-keeping, and mapping costs directly relating to subsections (a) and (b); (d) costs of inspection of city owned mains/trunks; and (e) repayment of and costs associated with issuance of bonds, certificates of participation or other financing tools, whose proceeds shall be used exclusively for those activities set forth in subsections (a) through (d). Sec. 13-158. Interest and other income. Interest received by the City of Santa Ana from the investment of money in the sewerage enterprise fund, and all other income derived from the use of such moneys, shall be deposited in the sewerage enterprise fund. Section 4: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. In particular, should the lien provision of section 2 of this ordinance be deemed to affect the constitutionality of this ordinance, then the city council declares that it would have adopted this ordinance without the first sentence of section 39-55.5. ADOPTED this 17th dayof September , 2001. Miguel A. Pulido '~ Mayor Ordinance No, NS-2479 Page 5 of 6 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney Be~j~(min Kaufman Chi~Assistant City Attorney AYES: NOES: ABSTAIN: Councilmembers: Alvarez, Bist, Franklin, McGuigan, Solorio (5) Councilmembers: Christv (1) Councilmembers: None NOT PRESENT: Councilmembers: Pulido CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-2479 to be the original ordinance adopted by the City Council of the City of Santa Ana on September 17, 2001, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Clerk~df the Counci ~/ City of Santa Ana Ordinance No. NS-2479 Page 6 of 6