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HomeMy WebLinkAbout03 - NPDES Inspection Fee Ordinance RevisionsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 3 April 13, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office, Code & Water Quality Enforcement Division Jim Sinasek, Division Manager, 949 -644 -3220, 6sinasek (cbcitv.newport- beach.ca.us SUBJECT: National Pollution Discharge Elimination System ( NPDES) Required Inspection Fee Ordinance Revisions ISSUE: Should the City begin collecting an inspection fee, as detailed below, to cover the costs associated with inspections that are required under our NPDES Permit? RECOMMENDATION: 1. Introduce Ordinance NO. 2004 -_ amending Chapter 14.36 of the Newport Beach Municipal Code, and pass to 2nd Reading on April 27, 2004. DISCUSSION: The City operates its storm drain system under a permit (called the Municipal Separate Storm Sewer System or "MS4" Permit) issued by the California Regional Water Quality Control Board, Santa Ana Region ( "Regional Board "). The Regional Board issues the MS4 Permit pursuant to the Board's obligations under the National Pollution Discharge Elimination System — NPDES is part of the Federal Clean Water Act. Among other things, the Permit requires local governments to (at least annually) inspect various active construction sites (sites for which the Building Department has issued an active Building, Grading or Pool Permit) so as to ensure that the contractor and /or property owner is complying with construction site "best management practices" (BMPs) that eliminate urban runoff especially during the wet season (October 1st through April 30th). The Construction Site Inspection program includes inspection frequencies, more frequent re- inspections when violations are found, enforcement, and extensive documentation. . FY 2003 -04 was the first year that the City was required to regularly perform these inspections —all are done according to established priority of high /medium (whereby NPDES Required Inspection Fee Ordinance Revisions April 13, 2004 Page 2 the total disturbed soil area is equal to or greater than one acre or where the area is less than one acre and tributary to and /or within 500 feet of an ASBS) or low (whereby the total disturbed soil area in less than one acre). More than 300 inspections must be completed between October 1 2003 and April 30, 2004. Approximately 280 have been completed to date. While this is a very time - intensive activity, we have not charged a fee to the applicant in conjunction with a building permit, pool permit, grading permit or any other permit to cover the costs to the City of this specific activity. In effect, the remainder of the city's taxpayers are funding this specific service to building permit holders. Because the inspections are a user service, we propose that fees paid by the applicant for a building, pool, grading or other pertinent permit affecting water quality should include a Water Quality Inspection Fee to cover the actual cost of water quality inspections. We propose a fee schedule based upon the evaluation of the project. The scale would be as follows: Permit Inspection Fee $105.00 $210.00 $330.00 $560.00 Permit Valuation $00.01 to $250,000.00 $250,001.00 to $750,000,00 $750,001.00 to $1,000,000.00 $1,000,001 plus This is based upon the average estimated amount of each inspector's time to travel to the site, to do the required inspection, to write a correction report and to do the follow - up necessary to clear any violation(s) that may be required in conjunction with the required inspection. The first permit valuation tier would cover most smaller single - family and duplex dwellings, demolitions, pool installations and smaller valuation projects; the second tier would cover large single - family dwellings, and pool installations; the third tier would cover most commercial and large single - family structures, including multiple apartment permits; and, the fourth tier would be appropriate for home tracts and larger commercial projects. We propose a 100% cost recovery percentage for these Water Quality Inspection Fees, because we believe the General Fund of the City should not be burdened by this user - driven activity. Given the amount of activity in FY 2003 -04, we estimate the collection of this inspection fee will generate approximately $154,770.00 in fee revenue. The attached ordinance establishes this fee. If it is approved by the City Council, staff will present amendments to the Master Fee Resolution at second �J 0 0 NPDES Required Inspection Fee Ordinance Revisions April 13, 2004 Page 3 0 reading of the ordinance to set the fee at $105.00, $210.00, $330.00 and $560.00 respectively. The City Attorney's Office, the Revenue Division and the Code and Water Quality Enforcement Division have participated in the preparation of the proposed additions. Prepared by: Submitted by: /1" inasek, Division Manager D' iff, Assistarif City Manager JAttachments: Proposed Ordinance No. 2004- 0 n U ORDINANCE NO.2004- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING CHAPTER 14.36 OF TITLE 14 OF NEWPORT BEACH MUNICIPAL CODE PERTAINING TO WATER QUALITY INSPECTION COST RECOVERY The City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: SECTION 1: Chapter 14.36.040B of the Newport Beach Municipal Code is hereby amended to read as follows: B. Cost Recovery. The City shall be reimbursed by the project applicant for all costs and expenses incurred by the planning agency (planning department, engineering department or building department) in the review and inspection of new development or significant development projects for compliance with the DAMP. The City planning agency (planning department, engineering department or building department) may elect to require a deposit of estimated costs and expenses, and the actual costs and expenses shall be deducted from the deposit, and the balance, if any, refunded to the project applicant. SECTION 2: The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within fifteen (15) days after its adoption. This Amended Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 13`h day of April, 2004, and adopted on the 27`h day of April, 2004, by the following vote, to -wit: ATTEST: ITY CLERK AYES, COLINCILMEMBERS NOES,COLINCILMEMBERS ABSENT, COLINCILMEMBERS MAYOR is