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HomeMy WebLinkAboutStaff Report 3.D 01/04/2016Agenda Item #3.D � F DATE: January 4, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan j a .ASCE — Director, Public Works and Utilities Leah Walker, P.E. — Environmental Services Manager SUBJECT: Adoption (second reading) of an Ordinance Adding Chapter 15.90 to Title 15 of the Petaluma Municipal Code, Authorizing the Approval of Recycled Water Service Agreements and Associated Easements for the Petaluma Recycled Water System by City Council Resolution and Authorizing the City Manager to Execute Recycled Water Service Agreements and Accept Associated Easements RECOMMENDATION It is recommended that the City Council adopt the Ordinance Adding Chapter 15.90 to Title 15 of the Petaluma Municipal Code, Authorizing the Approval of Recycled Water Service Agreements and Associated Easements for the Petaluma Recycled Water System by City Council Resolution and Authorizing the City Manager to Execute Recycled Water Service Agreements and Accept Associated Easements. BACKGROUND On December 7, 2015, the City Council unanimously approved the first reading of an ordinance adding chapter 15.90 to Title 15 of the Petaluma Municipal Code, authorizing the approval of recycled water service agreements and associated easements for the Petaluma recycled water system by City Council resolution and authorizing the City Manager to execute recycled water service agreements and accept associated easements. The item passed with a vote of 6 -0, with Mayor Glass absent. During the December 7, 2015 City Council meeting, Council approved the resolution certifying addendum No. 1 to the Program Environmental Impact Report for the water recycling expansion program certified by resolution No. 2008 -206 and the resolution approving the form recycled water service agreements and associated easements for the Petaluma recycled water system and authorizing the City Manager to execute recycled water service agreements and accept associated easements The proposed ordinance amendment, included as Attachment 1 would provide legislative authority for City Council approval of form agreements and easements for recycled water by resolution and would authorize the City Manager to execute recycled water service agreements and accept easements using Council- approved form documents. This action meets the requirements of Section 46, Article VII of the Petaluma City Charter, provides for appropriate City Council oversight of the recycled water program, promotes efficient use of public resources and fiscal efficiency, and allows necessary flexibility to manage the Recycled Water Program. The proposed action will effectively meet the needs of recycled water users and maximize recycled water use while generating additional revenue for recycled water operations. This action is consistent with General Plan 2025 Goal 8 -G -3: "Maximize the use of recycled water as a potable water offset to manage water demands, and to meet regulatory requirements for wastewater discharge." FINANCIAL IMPACTS The projected revenues from the five recycled water applications currently received are expected to be $145,000 annually beginning in 2016. The five users have requested a little more than 178 acre -feet per year, which represents about 3 percent of the City's wastewater flow and about 8 percent of the total recycled water produced in 2014. The total annual budget of the recycled water program within the wastewater enterprise fund is $1,108,182 to cover the costs of treatment, pumping, pump and pipe repairs, maintenance, customer service, metering and billing. ATTACHMENTS 1. Ordinance Adding Chapter 15.90 to Title 15 of the Petaluma Municipal Code, Authorizing the Approval of Recycled Water Service Agreements and Associated Easements 2 EFFECTIVE DATE OF ORDINANCE Introduced by Attachment 1 ORDINANCE NO. N.C.S. Seconded by AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA ADDING CHAPTER 15.90 TO TITLE 15 OF THE PETALUMA MUNICIPAL CODE, AUTHORIZING, PURSUANT TO SECTION 46 OF ARTICLE VII OF THE CHARTER OF THE CITY OF PETALUMA, THE APPROVAL OF RECYCLED WATER SERVICE AGREEMENTS AND ASSOCIATED EASEMENTS FOR THE PETALUMA RECYCLED WATER SYSTEM BY CITY COUNCIL RESOLUTION AND AUTHORIZING THE CITY MANAGER TO EXECUTE RECYCLED WATER SERVICE AGREEMENTS AND ACCEPT ASSOCIATED EASEMENTS WHEREAS, the City of Petaluma General Plan 2025 recognizes the use of recycled water as a potable water offset and to meet regulatory requirements for wastewater discharge; and WHEREAS, on November 3, 2008, the City Council, by Resolution No. 2008 -206, certified the Program Environmental Impact Report (EIR) for the Water Recycling Expansion Program; and WHEREAS, the City of Petaluma owns and operates the Ellis Creek Water Recycling Facility pursuant to Petaluma Municipal Code Chapter 15.44- 15.76, Title 15 and other applicable law; and, WHEREAS, in order to provide recycled water to customers for irrigation and generate revenue to support recycled water system operations, the City enters into service agreements to serve properties both inside and outside City jurisdiction limits ( "Service Agreements "); and, WHEREAS, the City desires to increase the number of properties both inside and outside City jurisdiction limits that are served with recycled water; and WHEREAS, on December 7, 2015, the City Council, by Resolution No. 2015 -188, certified Addendum No. 1 to the EIR for the Water Recycling Expansion Program; and WHEREAS, some but not all of the future properties to be served require obtaining property owner permission to allow for the use of private property to transport and deliver recycled water; and 3 WHEREAS, the nature of improvements related to the transport and delivery of recycled water that may be located on private property are permanent in nature, requiring easements from properties on which the improvements would be located; and WHEREAS, Section 46 of Article VII of the Petaluma City Charter requires that action providing for acquisition of property be taken by ordinance of the City Council unless the Council takes action pursuant to a general law of the State; and WHEREAS, Council desires to provide for more efficient use of public resources, promote fiscal efficiency, and provide necessary flexibility to manage the Water Recycling Expansion Program to effectively meet the needs of recycled water users. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. The foregoing recitals are true and correct and incorporated by reference. Section 2. Chapter 15.90 Added. Chapter 15.90 is hereby added to Title 15 of the Petaluma Municipal Code as follows: CHAPTER 15.90 Recycled Water Agreements 15.90.100 Findings and Purpose. Section 46 of Article VII of the Petaluma City Charter provides that action to provide for acquisition of property be taken by ordinance unless the Council takes action pursuant to a general law of the State. The large number of recycled water service agreements for properties located outside the City boundaries, makes approval of individual agreements and easements by ordinance impractical and costly in terms of staff time and other public resources. Legislative authority for City Council approval of form agreements and easements for recycled water, and for City Manager execution of recycled water service agreements and easements using Council - approved form documents; is intended to meet the requirements of Section 46, Article VII of the Petaluma City Charter, provide for appropriate City Council oversight concerning the recycled water program, provide for efficient use of public resources, promote fiscal efficiency, and provide necessary flexibility to manage the Recycled Water Program to effectively meet the needs of recycled water users and maximize recycled water services and generation of revenue for recycled water. 15.90.200 Approval of Recycled Water Service Agreements and Easements by Resolution. In accordance with Section 46 of Article VII of the City of Petaluma Charter, the City Council of the City of Petaluma may approve form agreements with associated form easements for recycled water service by resolution. 0 15.90.300 Execution of Recycled Water Service Agreements and Easements by City Manager. The City Manager or his /her designee is authorized to execute, on behalf of the City, recycled water service agreements and accept easements using forms that have been approved by City Council resolution as long as such agreements and easements do not differ materially from such approved forms. Section 3. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 4. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 5. Publication. The City Clerk is hereby directed to post and /or publish this ordinance or a synopsis of it for the period and in the manner required by the City Charter. 5