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Thursday, Mar 28, 2024

Stormwater Ordinance Brings Higher Fees, New Standards

This is the Valley Industry & Commerce Association’s (VICA) monthly column for the Business Journal. VICA is a business advocacy group representing the San Fernando Valley and surrounding areas. If the recession didn’t hinder the construction industry enough in the past year, additional costs to developers are in the pipeline for 2010. Fortunately, the Valley Industry and Commerce Association (VICA) and other business groups are working with the City of Los Angeles to mitigate the impact of the Stormwater Low Impact Development Ordinance. The ordinance, currently under consideration by the city, raises several concerns among the business community. The most glaring problem is the ordinance’s attempt to regulate types of stormwater runoff that are already regulated by the L.A. Regional Water Quality Control Board (LARWQCB). The city’s Municipal Separate Storm Sewer System (MS4) permit, issued by LARWQCB, is set to renew in 2010. This means that current regulations are likely to change when the new MS4 permit is issued and any ordinance adopted by the city prior to the new permit would need to be amended. Aside from the obvious inefficient use of the city’s resources, the ordinance is vague in several important areas and raises concerns about cost, coordination among departments and consistency in regulation. When it comes to discharge standards the ordinance is very unclear. Initial drafts of the ordinance allowed for no runoff from the sites, but later drafts permit no runoff “to the maximum extent feasible” and allows for “high efficiency removal treatment.” While this language is an improvement it is still vague and the coalition of business groups is calling for further definition and clarity on this portion of the ordinance. There is also little clarification as to how projects currently in the city’s queue will be impacted by the new ordinance. It is clear that those already through the permitting process will be exempt, but others still under consideration may face new costs and regulations not initially anticipated. Projects currently in the pipeline must be exempted from the ordinance in order to prevent costly redesigns and other setbacks. A huge concern regarding the ordinance is the cost to developers. Most developments will see fees increase from $600 to $2,000. The ordinance also adds a $200 fee for small projects. The business coalition is still looking for answers from the city about the need for the increases, if the city can handle the greater workload and the impact on small projects now subject to a new fee. In addition to the permitting fees, there are so-called “in-lieu fees” assessed on projects for required improvements, but developers cannot elect to pay the fee instead of complying fully with the ordinance requirements. This raises concerns about their legality. The group also questions the high fee amount, currently set at $20 per gallon. All of the concerns described above have be outlined and submitted to the city for review. The business coalition is now waiting to hear the answers and research the city has collected in response. So far, the city and its representatives have been receptive to the suggestions from the business community and are taking the concerns seriously. The true test of the months-long discussion will be on Jan. 15 when the ordinance goes before the Public Works Commission. Do you think the city will address the business community’s concerns and incorporate their requests in the ordinance? Are city fees hurting your business? Email your responses or thoughts about the column to [email protected].

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