Loading...
HomeMy WebLinkAboutItem 2g: Endorsement of Flood Control District's Funding Initiative and Support LA County Supervisor's in Setting Property Owner Election on Water Measure • . A. Gn41POkkt4 • n Oil IY,YrOYnIYi p Arllrrl 1.IN) ` P STAFF REPORT Public Works Services Department DATE: May 1, 2012 TO: Mayor and City Council FROM: Tom Tait, Public Works Services Director Prepared by: Vanessa Hevener, Environmental Services Officer SUBJECT: ENDORSE THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT'S WATER QUALITY FUNDING INITIATIVE AND SUPPORT THE COUNTY BOARD OF SUPERVISORS IN SETTING A PROPERTY OWNER ELECTION ON THE "LOS ANGELES COUNTY CLEAN WATER, CLEAN BEACHES PROTECTION MEASURE" Recommendation: Approve SUMMARY The Los Angeles region faces critical and very costly stormwater quality challenges. The Los Angeles County Board of Supervisors is considering scheduling a property owner election for a proposed water quality fee. This report discusses the water quality issues, the fee proposal and the need for a stable funding source to address stromwater and urban water runoff quality issues. It is recommended that the City Council endorse the Los Angeles County Flood Control District's Water Quality Funding Initiative and support the County Board of Supervisors in setting a property owner election on the "Los Angeles County Clean Water, Clean Beaches Protection Measure." DISCUSSION Stormwater and urban runoff often contain trash, bacteria, metals and other pollutants that discharge into streams and waterways and ultimately to the ocean. Many waterbodies in the Los Angeles region are listed as impaired (polluted), having not met State and Federal water quality standards under the Clean Water Act (CWA). The State Water Quality Control Board, through its Regional Boards, is responsible for enforcing the requirements of the Clean Water Act. At the local level, Los Angeles County and Municipalities must obtain the National Pollutant Discharge Elimination System (NPDES) stormwater discharge permit coverage from the Los Angeles Regional Board. Under the NPDES permit, municipalities are responsible for cleaning up impaired waters in their jurisdictions. A central element of the NPDES program, the Clean Water Act requires that States develop Mayor and City Council May 1, 2012 Page 2 of 4 what are known as Total Maximum Daily Loads ("TMDLs") to reduce pollutants in impaired waters. A water body is determined to be an "impaired waterbody", if it does not achieve water quality standards. The TMDL establishes an overall allowance for each pollutant, defining the maximum amount of a pollutant (e.g. trash, bacteria, metal, etc.) that can enter a waterbody and still meet water quality standards. The City of Arcadia is currently regulated by multiple TMDLs including: • Los Angeles River Trash TMDL • Los Angeles River Metals TMDL • Los Angeles River Bacteria TMDL • Los Angeles River Harbor's Toxic TMDL • Peck Road Park Lake TMDL Over the years, the costs of complying with stormwater regulations have continued to increase. Many municipalities have relied on their General Fund budgets, but that is increasingly at the expense of other vital public services. Economic studies on the cost of complying with NPDES/TMDL implementation suggests costly expenditures for local government, ranging in billions of dollars especially given the additional TMDLs being incorporated into the new NPDES Permit. For example, the 2002 University of Southern California study concluded that the costs to comply with TMDLs in the Los Angeles region would range from $47 billion to $239 billion depending on the storm size and treatment level. As a result, municipalities may be responsible for millions of dollars annually to comply with the regulations. Failure to comply with the TMDLs could result in significant Clean Water fines for a non-compliant community of up to $10,000 for each day of violation. Violations can also result in third-party litigation, since violations of the Clean Water Act can be enforced by private parties, such as environmental groups. It is clear that compliance with the NPDES permit and TMDL programs will be expensive for local governments over a long period of time. Unfortunately, local governments lack a stable, long-term dedicated local funding source to address these mandates. Local governments will be faced with either cutting existing services or finding new sources of revenues to fund the NPDES and TMDL programs. Given the overall regional costs and cost burdens that are being placed on municipalities to achieve compliance with NPDES permits and TMDL implementation plans, a sustainable funding source for public investment in water quality improvement programs is essential. As indicated previously, funding for the stormwater program has predominately been funded through the General Fund. As the economy has worsened during past years, municipalities have pursued a concerted effort to find a sustainable funding source for the stormwater program. Currently, the City annually budgets approximately $93,000 in operation and maintenance for the implementation of the NPDES Permit. To date, the City has expended an additional $250,000 for the Trash and Metals TMDL development/compliance. However, staff anticipates the costs to the City will significantly increase as more TMDLs are incorporated into the new NPDES Permit (expected adoption in September 2012). In September 2010, Governor Brown approved AB 2554 which allows the Los Angeles County Mayor and City Council May 1, 2012 Page 3 of 4 Flood Control District to establish a fee to be levied and collected. The Water Quality Funding Initiative (WQFI, also referred to as the Clean Water, Clean Beaches Protection Measure) aims to provide a stable, dedicated, long-term funding source for the implementation, construction, and operations and maintenance of water quality improvements through a property-related fee. Since September 2010, the Flood Control District has worked extensively with municipalities and other stakeholders to draft the proposed Ordinance. The Ordinance would codify the governance, administration, and use of the fee, if and when the fee is approved by the voters. The proposed Ordinance will allocate fee revenues and establish a governance structure in accordance with AB 2554 and the requirements of Proposition 218. It divides anticipated revenues among the Municipalities (40%), Watershed Area Groups, comprised of Municipalities within the watershed (50%), and the Flood Control District (10%). Based on this formula, the City of Arcadia is expected to annually receive approximately $760,000 of the collected revenues while the Rio Hondo Watershed Area Group will receive $9.7 million. Expenditures can include: • implementation of the NPDES permit, • preparing of environmental documents, • education and outreach, • planning, design, construction, implementation, operation and maintenance and monitoring of water quality projects and programs. The proposed fee would be calculated based upon the size of the property, impervious area (e.g., roof, patio, etc) as determined by the property's land use, and the total cost of the improvements to be financed by the proposed fee. Fee amounts for single family residential homes will range between $8 and $83 annually, with the majority of homeowners paying $54 annually. Commercial and industrial parcels, which typically have much more impervious area, will be assessed larger amounts. Government parcels must also be assessed since they contribute runoff as well. The Los Angeles County Flood Control District staff has developed the following tentative schedule subject to the Approval by the Los Angeles County Board of Supervisors: • May 15, 2012: Board of Supervisors consideration of the Water Quality Funding Initiative Implementation Ordinance and Engineers Report • Fall 2012: Proposition 218 mandated public hearing for the Water Quality Funding Initiative Fee • March — May 2013: Property owner mail-ballot election for the Water Quality Funding Initiative Fee Given the financial challenges to comply with the NPDES and multiple TMDLs, staff proposes to endorse the Los Angeles County Flood Control District's Water Quality Funding Initiative and Support the County Board of Supervisors in Setting a Property Owner Election on the "Los • Angeles County Clean Water, Clean Beaches Protection Measure." FISCAL IMPACT: Mayor and City Council May 1, 2012 Page 4 of 4 With the passage of the property-related stormwater fee, the City of Arcadia is expected to annually receive approximately $760,000 while the Rio Hondo Watershed Area Group will receive $9.7 million. The fees collected would enable the City to initiate, plan, design, construct, implement, operate, and maintain water quality improvement projects and programs. RECOMMENDATION: Endorse the Los Angeles County Flood Control District's Water Quality Funding Initiative and Support the County Board of Supervisors in Setting a Property Owner Election on the "Los Angeles County Clean Water, Clean Beaches Protection Measure". Approver ' -- TT:VH Dominic Lazzal ''o, City Manager Attachment ORDINANCE NO. Version 9.01 An ordinance adding Chapter 18 to the Flood Control District Code of the Los Angeles County Code relating to a water quality fee imposed upon parcels located within the District to pay for projects and programs relating to improving water quality. The Board of Supervisors of the Los Angeles County Flood Control District ordains as follows: Section 1. Chapter 18 of the Flood Control District of the Los Angeles County Code is hereby added to read as follows: Chapter 18 Water Quality Fee Sections 18.01 Short Title 18.02 Definitions 18.03 Purpose and Intent 18.04 Fee Imposed 18.05 Allocation of revenues received from imposition of the Water Quality Fee 18.06 Agreements for Transfer of Proceeds of Water Quality Fee 18.07 Project and Program Eligibility Criteria 18.08 Eligible Expenditures 18.09 Non-Eligible Expenditures 18.10 Formation of Watershed Authority Groups 18.11 Composition of the Watershed Authority Groups 18.12 Governance of Watershed Authority Groups HOA.773698.1 Page 1 of 23 18.13 Development Water Quality Improvement Plans 18.14 Water Quality Improvement Plan - Implementation and Reporting 18.15 Compensation of a Watershed Authority Group Governing Board 18.16 Boundaries of Watersheds 18.17 Duties of Municipalities 18.18 Duties of the Los Angeles County Flood Control District 18.19 Water Quality Oversight Board 18.20 Term and Tenure of Members of the Oversight Board 18.21 Officers of the Oversight Board 18.22 Meetings—Quorum of the Oversight Board 18.23 Compensation of the Oversight Board 18.24 Rules and Regulations of the Oversight Board 18.25 Duties of Oversight Board 18.26 Calculation of the Fee 18.27 Collection--General procedure 18.28 Appeals 18.29 Carryover of Unspent or Unobligated Municipality Funds 18.30 Recordkeeping Requirements and Audits 18.31 District Held Harmless HOA.773698.1 Page 2 of 23 18.01 Short Title. This chapter shall be known as the "Water Quality Improvement Program." (Ord. 2012) 18.02 Definitions. The following words and phrases whenever used in this chapter shall be construed as defined in this Section: "Basin Plan" — Also known as Water Quality Control Plan, means the Regional Water Quality Control Board's master water quality control planning document and forms the basis for protecting water quality in Los Angeles County. The Basin Plan is mandated by both the Federal Clean Water Act and the State Porter-Cologne Water Quality Act. The Basin Plan establishes water quality standards for waters of the State, including surface waters and groundwater. It also includes programs of implementation to achieve water quality standards. The Basin Plan is adopted by the Regional Board and approved by the State Water Resources Control Board and the United States Environmental Protection Agency. "Best Management Practice" or "BMP" means structural, nonstructural, and managerial techniques that are recognized to be the most effective and practical means to control nonpoint source pollutants and are compatible with the productive use of the resource to which they are applied. "Board of Supervisors" means the Board of Supervisors of the District. "Chief Engineer" means the Chief Engineer of the District or his or her designee "Clean Water Act" means the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. 1251 , et seq. (Ord. 98-0021 Section 1 (part), 1998.) "District" means the Los Angeles County Flood Control District, a body corporate and politic. "Impaired - Water Bodies" means all surface water bodies within the District that are identified by the Regional Board in a basin plan as impaired due to pollution pursuant to Section 303(d) of the Clean Water Act (33 U.S.C. Sec. 1313[d]) or Division 7 of the California Water Code "Los Angeles Flood Control District Water Quality Improvement Program" means the projects and programs described in this chapter designed to manage stormwater and urban runoff to reduce and address pollution and contamination of rivers, lakes, streams, and coastal waters, while wherever feasible reducing flooding, maximizing the protection and conservation of surface water and groundwater resources, and protecting and where appropriate restoring habitat and environmental values associated with water quality projects and programs. "Municipality" means any city within the District and.it also means the unincorporated territory of the County of Los Angeles. HOA.773698.1 Page 3 of 23 • "Municipal Projects and Programs" means stormwater and urban runoff projects and programs and surface water improvements implemented by individual cities pursuant to this ordinance. "Multiple Benefits Project" means a project that has more than one benefit, such as increasing water supply, rain water harvesting, water conservation, replenishing groundwater, providing flood protection, protecting open space and natural areas, and restoring and creating wetlands and riparian habitats. "Neighborhood Council" means one of the City of Los Angeles citizen councils established by the neighborhood empowerment initiative that engages and promotes public participation in government to improve government responsiveness to local concerns. "Nonstructural BMP" means those policies, prohibitions, and procedures that are integrated into site design and planning techniques that preserve natural systems and hydrologic functions as well as conserve wetlands and stream corridors on site. "Parcel" means a parcel of real property situated within the established boundaries of the District and described on the local secured tax rolls of the County of Los Angeles. "Pollutant" shall have the same meaning as set forth in Section 502(6) of the Clean Water Act or as incorporated into the California Water Code Section 13373. Pollutants include, but are not limited to, the following: A. Commercial and industrial waste (such as fuels, solvents, chemicals, detergents, plastic pellets, hazardous materials or substances, hazardous wastes, fertilizers, pesticides, soot, slag, ash, and sludge); B. Metals (such as cadmium, lead, zinc, copper, silver, nickel, chromium, and arsenic) and nonmetals (such as carbon, chlorine, fluorine, phosphorous, and sulfur); C. Petroleum hydrocarbons (such as fuels, oils, lubricants, surfactants, waste oils, solvents, coolants, and grease); D. Eroded soils, sediment, and particulate materials in amounts which may adversely affect the beneficial use of the receiving waters, flora, or fauna of the state; E. Animal wastes (such as discharges from confinement facilities, kennels, pens, recreational facilities, stables, and show facilities); F. Substances having acidic or corrosive characteristics, such as a pH of less than six or greater than nine; G. Substances having unusual coloration or turbidity, levels of fecal coliform, fecal streptococcus, or enterococcus, which may adversely affect the beneficial use of the receiving waters, flora, or fauna of the state; HOA.773698.1 Page 4 of 23 H. Trash and other refuse generated in urban environments (such as expanded polystyrene foam products, plastic products, cigarettes, and various food wrapping and containers.) "Porter Cologne Act " means the Porter Cologne Water Quality Control Act, codified at California Water Code, Section 13000 et seq., and its implementing regulations, Division 7 of the California Water Code. "Program Administrative Costs" means all executive, organizational, and clerical costs associated with the general management of WAG and WQIPP other than direct project or program-related costs. "Project and Program Selection Criteria" means established standards set forth in Section 18.07 to evaluate the merit of a project or program that is being proposed to be funded pursuant to this chapter. "Regional Board" means the California Regional Water Quality Control Board for the Los Angeles Region. "Regional Projects and Programs" means stormwater and urban runoff projects and programs of regional significance whose combined tributary area exceeds 200 acres of land, address pollutant loads from more than one jurisdiction, or are part of a plan that treats an entire reach of a river or subwatershed, such as a TMDL implementation plan. "Stakeholder(s)" means a person, citizen group, homeowners and other property owner groups, business groups, nongovernmental organizations, environmental groups, Neighborhood Councils, business groups, water resources agencies such as groundwater producers, water districts, private and public water agencies, and other interested parties that have a direct or indirect stake in the Los Angeles Flood Control District Water Quality Improvement Program because they can affect or be affected by the actions, objectives, and policies of a project or program implemented by a Municipality or Watershed Authority Group. "Storm Drain System" means public infrastructure designed to convey stormwater and nonstormwater "Stormwater" means any water that originates from atmospheric moisture (rainfall or snowmelt) and falls onto land, water, and/or other surfaces within the District. "Stormwater Quality Benefit" means reduction in pollutant loading from stormwater and urban water runoff. "Stormwater Runoff' means stormwater that travels across any land surface to the storm drain system and/or receiving waters. "Structural BMP" means any facility constructed or implemented to control, treat, store, divert, neutralize, and dispose of runoff in order to reduce pollutants. HOA.773698.1 Page 5 of 23 "Sustainable Solutions" means balanced approaches that preserve the long term well-being of communities and the environment by investing in and promoting economically sound, socially desirable and environmentally healthy projects, programs, and services to achieve multiple benefits. "Urban Runoff" means surface water flow within the District produced by nonstorm events including, but not limited to, flow from residential, commercial, or industrial activities involving the use of potable and nonpotable water. "Water Quality Fee" means the fee for property-related services imposed pursuant to this chapter. "Water Quality Oversight Board" or "Oversight Board" has the meaning set forth in Section 18.19 of this chapter. "Water Quality Improvement Plan" or"WQIP" shall have the meaning set forth in Section 18.13 of this chapter. "Watershed Authority Group" or "WAG" means the group of municipalities and the County unincorporated territory within each of the watershed areas identified in Sections 18.10 and 18.16 responsible for developing the Water Quality Improvement Plan and carrying out the regional projects and programs to reduce pollution loads to the impaired waters of the watershed in accordance with this chapter. "Watershed Area" means one of the nine geographic areas defined in Section 18.16 pursuant to Assembly Bill 2554. (More definitions may follow) 18.03 Purpose and Intent. This chapter is enacted pursuant to Sections 2 and 16 of the Los Angeles County Fiood Control Act, (Chapter 755 of the Statutes of 1915) and subsequent amendments. The purpose of this chapter is to protect the health and safety of the residents of the District by protecting the beneficial uses, marine habitats, and ecosystems of receiving waters within the District from pollutants carried by stormwater and urban runoff. The intent of this chapter is to enhance the water quality of impaired water bodies in the District, consistent with the Clean Water Act and Porter Cologne Act by providing funding for Municipalities and Watershed Authority Groups to initiate, plan, design, construct, implement, operate, maintain, and sustain water quality improvement projects and programs based on effective best management practices. It is also the intent of this chapter that wherever feasible, water quality improvement projects and programs shall be designed to achieve multiple benefits and incorporate sustainable solutions as defined in'Section 18.02. HOA.773698.1 Page 6 of 23 18.04 Fee Imposed. A Water Quality Fee shall be imposed upon parcels within the District in the manner set forth in this chapter. The amount of the fee shall be computed for each parcel as set forth in Section 18.26. The fee shall be levied and collected as set forth in Section 18.27 of this chapter, and revenues derived from the fee shall be paid into the Los Angeles County Treasurer & Tax Collector to the credit of the District. The Board of Supervisors shall expend and disburse the funds in accordance with this chapter. 18.05 Allocation of Revenues Received from Imposition of the Water Quality Fee The revenues received by the District from the Water Quality Fee shall be allocated and used as follows: A. Ten percent shall be allocated to the District to be used for implementation and administration of water quality projects and programs, as determined by the District, including activities such as regional planning, regional water quality monitoring consistent with MS4 permit, preparation of technical, financial, and administrative reports, and any other related activities, and for payment of the costs incurred in connection with the levy and collection of the fee and the distribution of the funds generated by imposition of the fee. B. Forty percent shall be allocated to Municipalities, in the same proportion as the amount of fees collected within each Municipality, to be expended by those Municipalities, for eligible water quality municipal projects and programs, as established in this chapter. C. Fifty percent shall be allocated to nine Watershed Authority Groups as defined in Sections 18.10 and 18.16 of this chapter, in the same proportion as the amount of fees collected within each watershed area to be used to develop and implement water quality improvement plans and regional projects and programs through a stakeholder driven process within the watersheds as set forth in this chapter. The implementation of a water quality improvement plan by a Watershed Authority Group shall require the consent of any Watershed Authority Group member whose jurisdiction comprises more than 40 percent of the total land area in a watershed. • HOA.773698.1 Page 7 of 23 • 18.06A Revenue Bonds The governing board for the District, the respective Municipalities within the District's boundaries, or the County are authorized to issue and sell revenue bonds under the authority of Assembly Bill 2554 (Chapter 602 — June 30, 2010) and this chapter. This ordinance authorizing the issuance of such revenue bonds shall not become effective until 30 days after its adoption. Bonds issued hereunder may be secured by revenues derived from fees or charges as set forth in this chapter. Only those amounts specifically allocated to the District, a Municipality within the district's boundaries or the County may be used for its respective bonds. Revenue bonds issued pursuant to this chapter shall not constitute any indebtedness of the County, except and only when the County issues revenue bonds pursuant to this chapter, but shall be payable, principal and interest, only from revenue funds derived from revenues received from the District. 18.06B Agreements for Transfer of Proceeds of the Water Quality Fee Each Municipality and Watershed Authority Group shall enter into an agreement with the Board of Supervisors, as governing body of the District, to provide for the transfer and use of funds as provided in this chapter. A uniform form agreement shall be developed by the District cooperatively with Municipalities and Watershed Authority Groups and shall include guidelines for project and program selection and implementation and for monitoring, reporting, and auditing related to project and program implementation and expenditures. The agreements shall specify the process for establishing Watershed Authority Group Stakeholder Advisory Panels, as well as a process for stakeholder engagement in a Municipal plan, project and program development. Water Quality Fee funds received by Municipalities and Watershed Authority Groups shall be kept separate from other Municipality and Watershed Authority Group funds. Interest earned on Water Quality Fee funds shall be reallocated for use in water quality projects and programs. Sec. 18.07 Project and Program Eligibility Criteria All projects and programs and project or program elements implemented by Municipalities and Watershed Authority Groups and funded by the fee established by this chapter shall have as their primary purpose the reduction of pollutant loads to impaired waters in the District pursuant to Section 303(d) of the Clean Water Act (33 U.S.C. Sec. 1313[d]) or Division 7 of the California Water Code. Wherever feasible, projects and programs shall use sustainable solutions to achieve stormwater quality benefits. Projects and programs shall directly contribute to or support through public education, monitoring and other programs, management of stormwater and urban runoff to allow maximum beneficial use of water resources and achieve multiple benefits wherever feasible including: HOA.773698.1 Page 8 of 23 • Protecting and enhancing available water supply through rain water harvesting and ground water replenishment • Water conservation/reuse • Flood protection • Protection of public health • Protection of open space and natural areas that provide water quality and related benefits • Creation, restoration, or improvement of wetlands, riparian, and coastal habitats to provide water quality benefits or restore resources damaged by stormwater pollution In addition to the above, project and program eligibility is based on the following criteria: 1. Reduce and prevent pollution in stormwater/urban runoff from contaminating rivers, lakes, creeks, streams, bays, beaches, and coastal waters of Los Angeles County. 2. Demonstrate the ability to provide and sustain long-term water quality benefits, and where feasible, reduce the sources of degradation. 3. Be designed and located to maximize the stormwater and urban runoff water quality benefits. 4. Identify the nonpoint source(s) and/or specific source(s) of pollution to be prevented, reduced, or abated. 5. Include and describe water quality performance measurements to be implemented. 6. Provide for operation, maintenance, and monitoring to assess effectiveness. 7. Include an adaptive management component that addresses changing environmental conditions. 8. To the extent possible, integrate with existing implementation plans submitted to the Regional Board, and coordinate with and be incorporated into the California State Department of Water Resources certified Integrated Regional Water Management Plan for that watershed. 9. Contribute to achievement of the water quality elements of existing and future plans to restore or revitalize rivers, lakes, streams, bays, beaches, and coastal waters within the District, such as the LA River Revitalization Plan or the Sun Valley Watershed Management Plan 10.To the extent possible, maximize the effective use of funds by leveraging other private, local, State, and Federal funds for water quality and other project elements. • 11.Include a costs/benefit analysis and include in this analysis the relative socioeconomic, environmental and other costs against the extent of stormwater quality benefit. HOA.773698.1 Page 9 of 23 • 12.Be based on sound science and the best available information. 13.Additional criteria as recommended by the Oversight Board and approved by the Board of Supervisors 18.08 Eligible Expenditures Eligible expenditures include, but are not limited to, planning, design, construction, implementation, and upkeep of projects, as well as monitoring public education and other programs. Projects and programs include, but are not limited to, stormwater/urban runoff prevention, cleanup, monitoring, control and diversion; water quality, pollution, and bacteria control; trash capture; protection of open space and natural areas that provide water quality and related benefits; creation. restoration or improvement of wetlands, riparian, and coastal habitats to provide watt :- quality benefits or restore resources damaged by stormwater pollution; creation of stormwater retention facilities and water conservation/reuse facilities. Eligible expenditures also include: A. Expenditures for consultants, partner agencies, contractors, and staff engaged in research and data development, planning, design, construction, BMP monitoring, outreach, and implementation of water quality projects and programs. B. Costs of studies, investigation, computer modeling, and monitoring related to pollutants and pollutant loading in water bodies. C. Costs for WQIP regional and municipal program implementation, and project construction, implementation, operations and maintenance pursuant to this chapter. D. Costs for adding a water quality element to a project built for another purpose. E. Expenditures associated with obtaining permits necessary to implement projects and programs including agency MS4 permits. F. Funds provided to an adjoining Watershed Authority Group, Municipality, or the District for eligible joint projects and programs with recognized mutual benefit. G. Cost of claims associated with contractual obligations. H. Expenditures for the operation, maintenance, and where applicable upgrade and replacement of existing regional and Municipal projects, that meet the requirements of this chapter. Debt service and debt issuance costs should the District, Municipalities, or the Watershed Authority Groups determine that bonds are prudent and necessary to implement the programs. HOA.77369E.1 Page 10 of 23 J. Development of Water Quality Improvement Plans and Programs, and environmental impact studies. K. Program Administrative Costs for Municipalities and Watershed Authority Groups not to exceed 10 percent of the annual Water Quality Fee revenue received by a Municipality or by a Watershed Authority Group in a fiscal year. L. Educational and outreach programs designed to enlist the public in reducing pollution in stormwater and urban runoff by better managing stormwater and urban runoff. 18.09 Ineligible Expenditures Below are examples of ineligible expenditures or uses of water quality fees created by this chapter: A. Non-water quality components of projects and programs except insofar as these components are incidental to or a co-benefit of a water quality improvement program, project, or project element. B. Expenditures incurred prior to the effective date of this ordinance. C. Fines and violations imposed by the Regional Board for violations of water quality regulations. D. Expenditures related to investigation, defense, and litigation related to regulatory permit violation, notices of violations, or noncompliance regulations, brought forth by a Municipality, the Regional Board, State or Federal government, or third parties except as described in Section 18.08 G. of this chapter. E. Expenditures related to investigation, defense, and any other activity for litigation where the District is named as a party. F. Expenditures by Watershed Authority Groups for non-regional projects and programs. 18.10 Formation of Watershed Authority Groups The following nine Watershed Authority Groups shall be established: Ballona Creek, Dominguez Channel, Upper Los Angeles River, Lower Los Angeles River, Rio Hondo, Upper San Gabriel River, Lower San Gabriel River, Santa Clara River, and Santa Monica Bay. The Watershed Authority Groups shall be Joint Powers Authorities formed in accordance with Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code. The District will provide administrative and technical assistance, if requested, relating to the formation and operation of the Watershed Authority Groups. Where existing joint powers groups have formed pursuant to the Joint Powers Law (Governance HOA.773698.1 Page 11 of 23 • Code Section 6400) and can qualify under this chapter they may act as the Watershed Authority Group hereunder. 18.11 Composition of the Watershed Authority Groups Membership in each Watershed Authority Group will consist of all Municipalities that are located within the boundaries of that Watershed Authority Group as defined in Section 18.16. Any Municipality that is located in more than one Watershed Authority Group shall have membership in all Watershed Authority Groups in which such Municipality is located. A Municipality may join a Watershed Authority Group at any time. A 60 percent participation by member Municipalities is required to form a Watershed Authority Group. Only one joint powers authority is allowed in each Watershed Authority Group. 18.12A Governance of Watershed Authority Groups A. The governing board of each Watershed Authority Group shall be comprised of a staff representative with demonstrated expertise in water quality from each of the Municipalities in the watershed. The City Council of each member Municipality shall appoint the staff representative and one alternate staff member. The Board of Supervisors shall appoint staff representatives and alternate staff members to represent the County unincorporated communities. A Municipality or the Board Alternate staff members only serve in the absence of the primary representative. Consultants may also be hired by Municipalities or the County to serve in place of municipal or county staff representatives. B. Each member Municipality shall have one seat on the Watershed Authority Group and one vote on items of business regardless of the size of the Municipality. C. Each Watershed Authority Group shall empanel a Stakeholder Advisory Panel to provide for Stakeholder input into the development of Water Quality Improvement Plans and project selection. D. At its first meeting and annually thereafter, the Watershed Authority Group governing board shall choose from among its members a chair and vice-chair to serve for one year. E. A quorum is required for Watershed Authority Group governing boards to take action on any item of business. A quorum shall consist of the representatives or alternates of a simple majority of the member Municipalities. If the quorum requirement is met, approval of any item of business requires a simple majority vote of those in attendance, provided; however, that the implementation of a Water Quality Improvement Plan or program by a Watershed Authority Group shall require the consent of any Watershed Authority Group member whose jurisdiction comprises more than 40 percent of the total land area within such Watershed Authority Group. The governing board of each Watershed Authority Group shall determine the frequency, location, and schedule for regular meetings, except that meetings shall be held quarterly HOA.773698.i Page 12 of 23 at a minimum. Subject to the requirement of quarterly meetings, a regular meeting may be cancelled if the chair determines that there is no business to be transacted and so notifies the members. F. The Watershed Authority Group is a public body and shall comply with open public meeting requirements of the Ralph M. Brown Act, California Government Code Sections 54950-54963, the Public Records Act (Government Code Section 6200), the Political Reform Act (Government Code Section 87100), and all other laws applicable to such bodies. 18.12B Duties of the Watershed Authority Groups Watershed Authority Groups shall have the following duties: A. Plan, implement, and maintain projects and programs pursuant to this chapter. B. Develop and annually update Water Quality Improvement Plans. C. Create and convene a Stakeholder Advisory Panel. D. Annually submit Water Quality Improvement Plans to the Flood Control District for review by the Oversight Board and certification by the Board of Supervisors. E. Submit to the District annually a detailed report containing an accounting of how fee revenues were expended as described in Section 18.30. HOA.773698.1 Page 13 of 23 18.13 Development of Water Quality Improvement Plans Each Watershed Authority Group shall develop, and annually update a Water Quality Improvement Plan for the area within its boundary that identifies, prioritizes, budgets, and schedules regional watershed-based projects and programs to be implemented in the watershed within the next five years using proceeds of the Water Quality Fee allocated to the Watershed Authority Groups. To the extent possible, the Water Quality Improvement Plan should also include reference to Municipalities' projects and programs funded with the Municipal share of the Water Quality Fee. All regional projects included within a Water Quality Improvement Plan must include plans and budgets for operation and maintenance for the useful life of the projects and programs. Projects and programs developed by Watershed Authority Groups shall be regional, watershed-based, and utilize proven, sustainable strategies and techniques, successful best management practices, tools, and methodologies. Projects and programs shall be designed, evaluated, and carried out using the best available scientific information and analysis so as to maximize stormwater quality benefits and be economically efficient, cost-effective, and consider relative socioeconomic, environmental, and other impacts and benefits. Watershed Authority Groups shall consult with Stakeholders and receive input and recommendations from a Stakeholder Advisory Panel regarding the development of Water Quality Improvement Plans. Water Quality Improvement Plans shall be aligned with current basin plan, NPDES MS4 Permits, Total Daily Maximum Load, and other related regulatory programs, State-certified Integrated Regional Water Management Plans, watershed plans, and other regional water quality-focused and related planning efforts. A Water Quality Improvement Plan should include: 1. Identification of pollutants of concern, quantifiable improvement targets to address current water quality regulations, and a timeline for accomplishing them. 2. Description of projects, programs, operations/maintenance, and related activities to achieve the improvement targets. 3. Description of the process for prioritizing those projects and programs. 4. Financial breakdown of the project/program identifying which components will be financed with revenue from the Water Quality Fee. 5. Identification of the entities responsible for pianning, design, construction, operations and maintenance, and monitoring of the projects and programs. 6. Description of performance measurements to ensure proper operability and intended performance of projects and programs included in the Water Quality Improvement Pian. HOA.773698.1 Page 14 of 23 7. Annual budget for the use of funds allocated to the Watershed Authority Group pursuant to this chapter. 8. Description of Stakeholder Advisory Panel and Stakeholder involvement process. 9. Description of other benefits to water supply, water conservation, habitat improvement, and flood control. 10.Additional project selection criteria as recommended by the Oversight Board and adopted by the Board of Supervisors to reflect current state of water quality within the District. Water Quality Improvement Plans must be certified annually by the Board of Supervisors before funding will be disbursed to Watershed Authority Groups. A Watershed Authority Group shall annually submit its proposed Water Quality Improvement Plan to the District on dates to be determined by the Chief Engineer pursuant to Section 18.18 of this chapter. The Chief Engineer will submit the Water Quality Improvement Plan to the Water Quality Oversight Board with draft findings and recommendations. The Oversight Board will then review the Water Quality Improvement Plan pursuant to Section 18.25, and will consider testimony from Stakeholders and make its independent recommendations to the Board of Supervisors for their action. The Board of Supervisors may certify the Water Quality Improvement Plan or return it to the Water Quality Oversight Board for further work or investigation. 18.14 Water Quality Improvement Plan - Implementation and Reporting, Ownership of Projects Each Watershed Authority Group shall implement its respective Water Quality Improvement Plan following and in accordance with certification by the Board of Supervisors, and shall include an annual update and status and performance report to the District that summarizes implementation progress of the Water Quality Improvement Plan. Projects implemented or constructed by a Watershed Authority Group shall, in perpetuity, be owned, operated, and maintained by said Watershed Authority Group, or a Municipality as may be agreed upon with the Watershed Authority Group. 18.15 Compensation of a Watershed Authority Group Governing Board Members of governing boards of Watershed Authority Groups shall not receive compensation for their service to the Watershed Authority Group board. 18.16 Boundaries of Watershed Area Descriptions of the Watershed Areas are included below. Detailed maps of the Watershed Areas shall be retained by the Chief Engineer. A. Ballona Creek Watershed HOA.773698.1 Page 15 of 23 The Ballona Creek Watershed includes the Cities of Beverly Hills, Culver City, West Hollywood, the northerly side of the City of Inglewood, various portions of the City of Los Angeles, and various portions of the unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. B. Dominguez Channel Watershed The Dominguez Channel Watershed includes the Cities of Carson, Gardena, Hawthorne, Lawndale, Lomita, Rolling Hills Estates, easterly portion of El Segundo, southerly portion of Inglewood, northerly portions of Redondo Beach, Rolling Hills, various portions of the City of Los Angeles, and portions of unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. C. Upper Los Angeles River Watershed The Upper Los Angeles River Watershed includes the Cities of Burbank, Glendale, La Canada Flintridge, San Fernando, South Pasadena, the westerly portions of Alhambra, Monterey Park, Pasadena, northerly portion of Vernon, various portions of the City of Los Angeles, and various portions of the unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. D. Lower Los Angeles River Watershed The Lower Los Angeles River Watershed includes the Cities of Bell, Bell Gardens, Commerce, Compton, Cudahy, Huntington Park, Lynwood, Maywood, South Gate, the westerly portions of Downey, Long Beach, Paramount, Pico Rivera, Signal Hill, southerly portions of Montebello, Vernon, portions of the City of Los Angeles, and portions of the unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. E. Rio Hondo Watershed The Rio Hondo River Watershed includes the Cities of Arcadia, Monrovia, San Gabriel, San Marino, Sierra Madre, Temple City, westerly portions of Bradbury, Duarte, El Monte, Irwindale, South El Monte, northerly portion of Monterey Park, easterly portions of Alhambra, Pasadena, and various unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. F. Upper San Gabriel River Watershed The Upper San Gabriel River Watershed includes the Cities of Azusa, Baldwin Park, Claremont, Covina, Glendora, Industry, La Puente, La Verne, Pomona, San Dimas, Walnut, West Covina, easterly portions of Duarte, El Monte, Irwindale, westerly portion of Diamond Bar, and various unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. HOA.773698.1 Page 16 of 23 G. Lower San Gabriel River Watershed The Lower San Gabriel River Watershed includes the Cities of Artesia, Bellflower, Cerritos, Hawaiian Gardens, La Mirada, Lakewood, Norwalk, Santa Fe Springs, Whither, easterly portions of Downey, Long Beach, Paramount, Pico Rivera, Signal Hill, and unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. H. Santa Clara River Watershed The Santa Clara River Watershed includes the City of Santa Clarita, and various portions of unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. I. Santa Monica Bay Watershed The Santa Monica Bay Watershed includes the Cities of Agoura Hills, Hermosa Beach, Malibu, Santa Monica, Westlake Village, westerly portions of Palos Verdes Estates, Redondo Beach, southerly portion of Rancho Palos Verdes, westerly portions of Calabasas, El Segundo, Manhattan Beach, Rolling Hills Estates, Torrance, portions of the City of Los Angeles, and various portions of unincorporated areas of the County of Los Angeles, as depicted on maps in the Office of the Chief Engineer. 18.17 Duties of Municipalities Each Municipality receiving funding from the Water Quality Fee shall have the following duties: A. Implement projects and programs pursuant to this chapter. Projects implemented or constructed by a Municipality shall, be owned, operated, and maintained by said Municipality. Municipalities may modify, update, or cancel projects and programs if proven to be ineffective in reducing pollution in stormwater or urban runoff. B. Actively and collaboratively participate in Watershed Authority Groups. C. Submit to the District annually, within 90 days after the end of the fiscal year, a detailed report containing an accounting of how Water Quality Fee revenues were expended as described in Section 18.30. D. Annually provide the District and the appropriate Watershed Authority Group with a list of the projects and programs financed with funding from the Water Quality Fee. E. Adopt those policies and ordinances necessary to implement this chapter within its area. HOA.773698.1 Page 17 of 23 F. A Municipality may at the discretion of its governing board, enter into a binding agreement with another Municipality, the County, consultant, or other entity to carry out the Municipality's duties pursuant to this chapter. G. If a Municipality does not comply with Section 18.17 (C) or (0), future funds may be withheld pending compliance. H. Submit to the Oversight Board for review and approval, plans for all new projects and programs that exceed $1 million in costs that are funded by the Water Quality Fee pursuant to this chapter. Approval of the Oversight Board for projects and programs that exceed $1 million in cost funded by the Water Quality Fee is required prior to implementation by Municipalities. A Municipality may appeal the decision of the Oversight Board to the Board of Supervisors The $1 million threshold will be adjusted annually according to the Consumer Price Index (CPI) by the increase, if any, in the CPI for all urban consumers in the Anaheim, Los Angeles, and Riverside areas, as published by the United States Government Bureau of Labor Statistics from April of the previous calendar year to March of the current calendar year. 18.18 Duties of the Los Angeles County Flood Control District It shall be the duty of the Chief Engineer to administer the Water Quality Fee Ordinance as follows: A. Overall program administration including activities such as auditing of Municipalities' and Watershed Authority Groups' expenditures, the levy and collection of the fee and the distribution of the funds generated by imposition of the fee, and other activities as determined necessary by the District. B. Provide technical and administrative support to Municipalities, the Watershed Authority Groups, and the Oversight Board. C. To develop and enter into agreements with Municipalities and Watershed Authority Groups pursuant to Section18.06. D. Review Water Quality Improvement Plans submitted by the Watershed Authority Groups and make findings and recommendations to the Oversight Board as to such Programs' compliance with the requirements of this chapter. E. Through its Chief Engineer, act as secretary of the Oversight Board. F. Oversee the distribution of funds from the Water Quality Fee in accordance with this chapter. HOA.773698.1 Page 18 of 23 G. Prepare an annual report to the Board of Supervisors that summarizes the program revenue, expenditures, and activities funded, and other matters as may be required for compliance with Article XIII D of the California Constitution. H. Develop and implement stormwater and urban runoff quality monitoring programs to align with existing and emerging water quality monitoring programs and efforts throughout the District. I. Provide regional planning and assistance to Municipalities and Watershed Authority Groups, such as development of pollutant loading, scientific research, and computer modeling. J. Develop a model Joint Powers Authority Agreement to be used as a basis for Watershed Authority Groups, with input from a working group consisting of counsel for Municipalities and the District. K. Implement new and maintain existing stormwater and urban runoff projects and programs owned or operated by the District. L. Prepare financial, technical, and administrative reports associated with the items identified in thischapter?. M. Develop WQIP preparation guidelines, criteria, and processes in collaboration with Watershed Authority Groups to be recommended to the Oversight Board for review and approval. N. Upon request by a Watershed Authority Group, provide advance funds up to 20% of the fees collected within the Watershed Authority Group Boundary towards the development of the first Water Quality Improvement Plan. 18.19 Water Quality Oversight Board A Water Quality Oversight Board is established and will be referred to hereinafter in this chapter as the "Oversight Board." The Oversight Board will consist of 13 members appointed as follows: each of the nine Watershed Authority Groups will appoint one member, the Board of Supervisors will appoint one member from the environmental community; one to be appointed by the Board of Supervisors to represent the District; and two members to be appointed by the Board of Supervisors from the general public. Oversight Board members, except for the two general public members appointed by the Board of Supervisors, shall have expertise in water quality and be qualified in one or more of the following areas: science, engineering, water supply, flood control, biology, chemistry, law, fiscal analysis, and environmental science. Individuals with these qualifications may be selected from academia, professional societies, nongovernmental organizations, and private and public sector employees. HOA.773698.1 Page 19 of 23 • The purpose of the Oversight Board will be to conduct public hearings and make findings and recommendations to the Board of Supervisors on matters related to Water Quality Improvement Plans submitted by Watershed Authority Groups, project selection and project selection criteria, review of Municipal projects and programs costing more than $1 million, and appropriate use of Water Quality Fees. The District is responsible for providing administrative and technical support to the Oversight Board and for keeping a record of all proceedings and notifying all interested parties of the findings and decisions of the Oversight Board. 18.20 Term and Tenure of Members of the Oversight Board Members of the Oversight Board shall serve for a term of two years, subject to removal by the entity that appointed them at any time for any reason. If a member is removed, a replacement shall be appointed by their appointing authority within 60 days of such removal. Any member whose term has expired hereunder, may continue to discharge the duties as a member until a successor has been appointed. 18.21 Officers of the Oversight Board At its first meeting and annually thereafter, the Oversight Board shall choose from among its members a chair and vice-chair to serve for one year. The Chief Engineer shall act as secretary. 18.22 Meetings—Quorum of the Oversight Board The Oversight Board shall determine the frequency and schedule for regular meetings, except that meetings shall be held as necessary to timely process Water Authority Group projects and programs. Regular meetings may be cancelled if the chair determines that there is no business to be transacted and so notifies the members. A quorum is required for the Oversight Board to take action on any item of business. A quorum shall consist of seven members of the Oversight Board. If the quorum requirement is met, approval of any item of business requires a simple majority vote of those in attendance. 18.23 Compensation of the Oversight Board Members of the Oversight Board shall not receive compensation for their service to the Oversight Board. • HOA.773698.1 Page 20 of 23 18.24 Rules and Regulations of the Oversight Board The Oversight Board shall recommend rules and regulations governing its own procedures for adoption by the Board of Supervisors. Prior to consideration by the Board of Supervisors, any such rules and regulations shall be submitted to the Watershed Authority Group and they shall have 90 days to provide written comment thereon. Copies of these rules and regulations shall be made available to the public. The Oversight Board and/or the Watershed Authority Groups may also, from time to time, recommend amendments to this ordinance to the Board of Supervisors for consideration. . The Oversight Board is a public body and shall comply with open public meeting requirements of the Ralph M. Brown Act, California Government Code Sections 54950-54963, the Public Records Act (Government Code Section 6200), the Political Reform Act (Government Code Section 87100), and all other laws applicable to such bodies. 18.25 Duties of Oversight Board The Oversight Board will have the following duties: A. Conduct public hearings to review Water Quality improvement Plans prepared by Watershed Authority Groups pursuant to Section 18.13, including feasibility and funding of projects and programs, and make recommendations to the Board of Supervisors regarding certification of the Water Quality Improvement Plans within 120 days of submission by a Watershed Authority Group. B. Review and approve Municipal projects and programs costing more than $1 million pursuant to Section 18.17, subsection H of this chapter. C. Assist the Chief Engineer of the District in examining the overall program to ensure that revenues are expended in accordance with the purposes of this chapter and make findings and recommendations on general matters related to the program, and matters related to misuse of funds by Municipalities or Watershed Authority Groups. D. Review and approve WQIP preparation guidelines and criteria as recommended by the Chief Engineer in collaboration with Watershed Authority Groups. 18.26 Calculation of Fee Each parcel's proportional allocation of the improvements and services costs within District is best reflected by the overall stormwater runoff associated with those parcels, which can be equitably represented by each parcel's proportional impervious area. In order to establish an appropriate fee for each parcel within the LACFCD, the total impervious area for each parcel within the District shall be based on land use, zoning and parcel lot sizes. The annual budget required for anticipated projects within the District, the Municipalities, and the Watershed . Authority Groups shall be divided by the total impervious area of the parcels within each of those respective areas to establish a fee rate, and this rate shall be proportionately applied to each parcel's proportional impervious area to establish the parcel's proportional annual fee. HOA.773698.1 Page 21 of 23 When the impervious surface of a parcel is increased or decreased due to development changes, the annual fee amount(s) shall be adjusted for the fiscal year next succeeding the change in impervious surface. 18.27 Collection—General Procedure The Water Quality Fee shall be collected for each fiscal year on the tax roll in the same manner, by the same persons, and at the same time as, together with and separately from, the general taxes of the County of Los Angeles. The Auditor-Controller shall provide each Watershed Authority Group with an annual accounting of the total of the fees collected in the watershed, including the fees collected in each Municipality. The Auditor-Controller shall also provide an annual statement of the fees collected to each Municipality. Insofar as feasible and not inconsistent with this chapter, the times and procedures regarding exemptions, due date, installment payments, corrections, cancellations, refunds, late payments, penalties, liens, and collections for secured roll ad valorem property taxes shall be applicable to the collection of this fee. 18.28 Appeals The Chief Engineer shall establish and administer an appeals process to address alleged errors in the imposition of the fee provided herein. 18.29 Carry-Over of Unobligated Municipality and Watershed Authority Group Funds Municipalities may carry over unobligated funds for up to five years, as may be provided in the transfer of proceeds agreement in Section 18.06, provided that details on future projects and programs are included in the annual report pursuant to Section 18.30 of this ordinance. Watershed Authority Groups may carry over unobiigated funds for up to five years, as may be provided in the transfer of proceeds agreement in Section 18.06, provided that a Water Quality Improvement Plan has been developed and certified by the Board of Supervisors. 18.30 Recordkeeping requirements and Audits A. Municipalities and Watershed Authority Groups shall maintain Water Quality Fees separate from any other Municipality and Watershed Authority Group funds, and shall submit to the County's Auditor-Controller, on an annual basis, a detailed report containing an accounting of how fee revenues were spent and identifying any unspent funds carried over. Governing boards of said Watershed Authority Groups and Municipalities must certify that all expenditures met the requirements of this ordinance. B. Municipalities and Watershed Authority Groups shall keep and preserve, for a period of five years after the end of each fiscal year ending June 30, all records necessary to determine the amounts expended, and of eligibility of water quality projects and programs. Municipalities and Watershed Authority Groups, upon demand by the HOA.773698.1 Page 22 of 23 County's Auditor-Controller, shall make such records available for inspection and audit by District or its authorized representative. C. At all reasonable times, Municipalities and Watershed Authority Groups shall permit Chief Engineer, or his or her duly authorized representative, to examine all projects and programs that were erected, constructed, implemented, operated, or maintained using Water Quality Fees pursuant to this ordinance. Municipalities and Watershed Authority Groups shall also permit the County's Auditor-Controller to examine, audit, and transcribe any and all books, accounts, papers, maps, and other records that relate to projects and programs implemented pursuant to this ordinance. D. Prior to any finding that a Municipality or Watershed Authority Group has expended funds in a manner not authorized by this chapter, the Oversight Board shall conduct a hearing. The Municipality or Watershed Authority Group shall have 90 days to respond to findings, including describing any corrective action it intends to take. If the Oversight Board finds these actions inadequate, then it shall make written recommendations to the Board of Supervisors. The Board of Supervisors may adopt the recommendations, which may include a demand to pay back inappropriately expended funds, without further notice of hearing, or may set the matter for a de novo hearing before the Board of Supervisors, subject to Section 18.06 of this chapter. 18.31 District Held Harmless Nothing in this chapter shall require the District to accept ownership or responsibility for projects implemented or constructed by Municipalities or Watershed Authority Groups with the proceeds of the Water Quality Fee. Unless the District enters into an express agreement with a Watershed Authority Group or Municipality to the contrary, the District will not be liable in connection with errors, defects, injuries, property damage caused by or attributed to any project or program that is funded with the Water Quality Fee, and the Municipalities and Watershed Authority Groups will be required to indemnify the District and hold it harmless for claims, liability, and expenses, including attorneys fees, incurred by the District as a result of projects and programs implemented by the Municipalities and Watershed Authority Groups pursuant to this chapter. Section 2 This ordinance is hereby adopted by the Board of Supervisors and shall take effect upon authorization of the electors voting in favor at the special election called for xxxxxxxxx, to vote on the measure. P:\wmpub\Funding initiative\Ordinance\WO Ordinance 8_8 4pm.docx HOA.773698.1 Page 23 of 23