Cupertino City Council
June 6, 2023

Attachment C
ORDINANCE NO. 19- 2183

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADDING CHAPTER 3.38 OF THE MUNICIPAL CODE TO ESTABLISH THE

CLEAN WATER AND STORM PROTECTION FEE
WHEREAS, the City of Cupertino ("City ") oversees and manages a municipal separate stonn sewer system ("MS4 "), which includes making capital improvements, overseeing maintenance and operations , and conducting activities to ensure compliance with all state and federal regulations associated with the Clean Water Act and the City's National Pollutant Discharge Elimination System ("NPDES") pennit; and
WHEREAS , the City's MS4 is made up of a comprehensive drainage infrastructure system that includes man-made drainage elements such as curbs and gutters, ditches, culverts , pipelines, manholes , catch basins (inlets) and outfall structures; and WHEREAS, the City, through its MS4, provides storm drainage services ("Services") that include, but are not liinited to, collecting, conveying , protecting , treating, and managing storm water runoff from improved parcels within the City; and WHEREAS, in 1992, the City adopted a $12 per residence storm drain service charge to conserve
and protect the MS4 from the burden placed on it by the increasing flow of nonpoint source runoff and to otherwise meet the requirements of the Clean Water Act, EPA regulations and the City's NPDES permits, which charge has not been increased since its inception ; and WHEREAS, the City does not currently have adequate funding to fully finance the system needs of its MS4 , and in order to finance the infrastructure, maintenance , and regulatory oversight of the MS4 and the provision of services, the City Council has determined that there is a need to adopt an additional fee ("Clean Water and Storm Protection Fee"), in compliance with Article XIIID of the California Constitution (Proposition 218), to cover the costs associated with capital improvements, operations and maintenance , and regulatory compliance needs of the MS4; and WHEREAS , on March 5, 2019, the City Council approved the Fee Report for the 2019 Clean Water and Storm Protection Fee Report ("Fee Report") that sets forth the basis and the amount of the Clean Water and Storm Protection Fees on various parcels of land in order to finance, in compliance with Article XIIID of the Constitution, the clean water and storm protection program needs and is attached hereto as Exhibit A; and
WHEREAS, the City Council on March 5, 2019 adopted Resolution No . 19-022 initiating proceedings in accordance with Article XIIID of the Constitution, approving the Fee Report, and setting the date of May 7, 2019 for a public hearing and directing the mailing of a notice to the owners of real property affected by the proposed Clean Water and Storm Protection Fee, which included a description of the proposed Clean Water and Storm Protection Fee, the amount to be charged , the total amount to be collected, and the right of property owners to protest the Clean Water and Storm Protection Fee;and
WHEREAS, the City Council on March 5, 2019 adopted Resolution No. 19-023 establishing procedures for conducting a ballot proceeding in accordance with Article XIIID of the Constitution ; and
WHEREAS, the Clean Water and Storm Protection Fee is a property-related fee, subject to Proposition 218.
1 WHEREAS , the City mailed notices of a public hearing on March 19, 2019 and conducted said public hearing on May 7, 2019 and heard testimony from residents and property owners regarding the proposed Clean Water and Stonn Protection Fee, and a majority protest was found not to exist; and
WHEREAS , the City Council introduced this Ordinance on May 7, 2019, after a duly noticed public hearing; and
WHEREAS, Article XIIID of the Constitution requires that the property-related fees defined in the Fee Report and included in this Ordinance shall not be imposed unless and until that fee is submitted and approved by a majority vote of the property owners of the property subject to the Clean Water and Storm Protection Fee; and
WHEREAS, upon introduction of this Ordinance, the City Council will direct that it be submitted to the affected prope1iy owners in a mail ballot proceeding in accordance with Article XIIID of the Constitution , Section 53755.5 of the Government Code , and City of Cupertino Resolution No . 19- 023.

NOW, THEREFORE , the Council of the City of Cupertino does ordain as follows:

SECTION ONE - Chapter 3.38 of the Cupertino Municipal Code is hereby established to read as follows :

3.38.010 Purpose of the Fee-Limitation of Use.

A. The purpose of the Clean Water and Storm Protection fee is to conserve and protect the City 's essential values of maintaining our aging storm drainage infrastructure, encouraging groundwater replenishment, and maintaining a sustainable environment in accordance with the Clean Water Act, EPA regulations and the City ' s NPDESpennits .

B. The specific purpose of the Clean Water and Storm Protection fee established pursuant to this chapter is to derive fee revenue, which shall only be used for the acquisition, construction, reconstruction , maintenance, and operation of the storm drainage system of the City or related green infrastructure or other activities required by the City's NPDES pennits , to repay principal and interest on any bonds which may hereafter be issued for said purposes , to repay loans or advances which may hereafter be made for said purposes, and for any other purpose set forth in Section3 .38.160.

C. The Clean Water and Storm Protection fee is imposed pursuant to Articles Xill C and D of the California Constitution , Government Code Sections 38900 - 38901 and 53755 - 53756, and Health and Safety Code Section 5471 - 5473 .11 .

D. Proceeds from the Clean Water and Storm Protection fee will be deposited in the "environmental management / clean creeks fund " created by Section 3.36.170 of Chapter 3.36 of the Municipal Code (Storm Drainage Service Charge) as the "storm drainage service charge fund" and subsequently renamed , and may be comingled with the revenues of the City 's storm drainage service charge because they are authorized to be used for the samepurposes .

3.38.020 Definitions.

Except where the context otherwise requires , the following definitions in this section shall govern the construction of this chapter:
2 (
A "City" means and includes all territory lying within the municipal boundaries of the City of Cupertino as presently existing plus all territory which may be added thereto during the effect term of the ordinance codified herein .

B. "Condominium" means a parcel that is an individually-owned single residential unit attached to an w1divided or joint ownership of the remaining p01tion of the prope1ty. The "Condominium 1" category refers to a condominium complex where each residential unit has no other units above or below it. The "Condominium 2+" refers to a condominium complex where residential units are built above or below other residential units.

C. "Director of Public Works" means the Director of Public Works and his/her duly authorized agents and representatives .

D. "Fee Report" means the report prepared by SCI Consulting Group dated February 2019 which was approved by the City Council on March 5, 2019 in Section 2 of Resolution No. 19-022. The Fee Report sets forth the rate structure and methodology of apportionment of the fee to various categories of parcels and shall be the basis for the Clean Water and Storm ProtectionFee.

E. "Director of Administrative Services" means the Director of Administrative Services of the City of Cupertino and his/her duly authorized agents and representatives .

F. "Impervious Area" means any part of any parcel that has been modified by the action of any person in a manner which reduces the land's natural ability to absorb and hold storm and surface water.

This includes, but is not limited to, activities such as: grading of property, the creation of any hard surface area which either prevents or retards the entry of water into the soil mantle, or the hardening of an existing surface which causes water to flow at an increased rate . Common impervious areas include, but are not limited to, roof tops, walk-ways, patios, driveways, parking lots or storage areas, concrete or asphalt paving, gravel roads, or any cleared, graded, paved , graveled, or compacted surface or paved earthen materials used for vehicular travel, or areas covered with surfaces which similarly impede the natural infiltration of surface water into soil mantle . Impervious area can be expressed as a percentage of a parcel 's total size.

G. "Maintenance and operation" means the administration, operation , maintenance and repair of any facility in the City's storm drain system, including , but not limited to:

1. Items ordinarily recognized as capital items ( e.g., acquisition of interests in land) when reasonably necessary to support operations;

2. Street sweeping, catch basin cleaning , and capture and removal of trash from the storm drain system;

3. Replacement of portions of existing facilities damaged or destroyed as a result of accident or natural disasters or found to be of inadequate size or condition;

4. Damages or settlements paid in the course of, or because of, threatened or actual legal actions related to the City's storm drain system or non-point sourceprogram ;

5. Regional monitoring, permit fees, public education and awareness programs regarding the City's storm drain system and the City's nonpoint sourceprogram;

6. Management of the City 's non-point source program including, but not limited to, BMP manuals, public outreach, printed materials , City staff and legal costs relatedthereto. 3 H. "Multi-Family Residential" means parcels improved or used for a residence for five or more ( families living independently of each other and doing their own cooking and which is not separately assessed by the county tax assessor for each such family dwelling . This term is synonymous with "apartment. "
I. "Open Space " means land that is substantially in a natural condition and includes agricultural or other lands that demonstrate storm water absorption equal to or greater than natural conditions .

J. "Parcel" means a unit of land which is designated by the tax assessor of Santa Clara County for property tax purposes.

K. "Rate Category " means a group of parcels that are of similar imperviousness characteristics and are charged the same rate. Single-Family Residential Parcels are categorized by size; Non-Single­ Family Parcels are categorized by impervious percentage ranges .

L. "Single-Family Residential " means parcels, other than multi-family parcels, improved or used solely as a residence for one, two , three or four families living separately in separate dwelling units.

M . " Storm drainage system " means any pipe, conduit, or sewer of the City designed or used for the collection , conveyance and management of storm and surface waters and drain age including unpolluted cooling water and unpolluted industrial process water but excluding any community sanitary sewer system .

N. " Vacant ( developed)" means a parcel which has been altered from its natural condition through grading or compaction activity or in another manner which reduces the land's natural ability to absorb and hold storm and surface water without any structure existing upon it. (

3.38.030 Determination and Imposition of Fee for Fiscal Year 2019-20.

For purposes specified in Section 3.38.010, the Clean Water and Storm Protection fees established pursuant to this chapter are hereby prescribed and imposed, and shall be paid to and collected by the City , for services and facilities furnished by the City in connection with its storm drainage system to or for each parcel which is benefited directly or indirectly by said storm drainage system or any part thereof, or from which any storm water is conveyed or discharged directly or indirectly into the storm drainage system . Said fee is imposed annually and will be assessed and collected as follows :

A. Single-Family Residential Class
Category 1-t Parcel Size (acres) Annual Fee per Parcel
-., -
Small Under 0.13 $36 .58
Medium 0.13 to 0.22 $44.42
Large 0.23 to 0.40 $55 .58
Extra Large Over 0.40 $106.42
Condominium 1 Na $36.58'
4 I Condominium 2+ Na $11.99
B. Non-Single-Family Residential Class
Category' Annual Fee
per 0.10 Acre
I
of Parcel Size2
Multi-Family $30.88
Commercial / Retail / fudustrial $40.38
Office $30.88
Church I fustitutional $26.13
School with play field $19.00
Park $7.13
Vacant ( developed) $2.38
Rate Structure Notes:

1. The Rate Category for any Non-Single-Family parcel shall be assigned by the description of the land use of the parcel. For Non-Single-Family land uses that do not fit the descriptions in Table 5 of the Fee Report (for example, mixed use parcels), the rate with the nearest percent impervious area shown in Table 5 of the Fee Report shall be assigned to a parcel.

2. Non-Single-family fees are calculated in 0.1-acre increments . For example, an office parcel is charged at $30.88 for each tenth of an acre or portion thereof.

C. Non-single-family parcels and condominium parcels that comply with the version of Provision C.3 (New Development and Redevelopment Requirements) of the City 's NPDES permit that is applicable at the time of building permit issuance shall have their fees reduced by 25% in recognition of the reduced impact on the City's storm drainage system inherent in C.3 compliance, as documented in the Fee Report (Low Impact Development Rate Adjustment) . Other single-family residential parcels do not qualify for this rate reduction. C.3 compliance will be determined on a case-by-case basis by the Director of Public Works, who may also establish procedures to verify and validate such compliance on a periodic basis .

D. For non-single-family residential parcels that have both improvements and significant open space areas (described in the Fee Report as "hybrid parcels") , the chargeable acreage shall be adjusted downward in recognition that the open space areas do not increase the need for the fee. 5 E. Open space and agricultural parcels are not subject to the Clean Water and Storm Protection fees.

3.38.040 Annual Review of Fee.

Commencing with Fiscal Year 2020-21, the City Council shall, by resolution, annually determine the Clean Water and Storm Protection Fee in accordance with the following:

A. In no event shall the rate for any category of property be increased beyond the rate approved by a majority vote of property owners subject to the Clean Water and Storm Protection fee. Commencing in Fiscal Year 2020-21 , the amount of the Clean Water and Storm Protection Fee may be increased by an amount equal to the change in the Consumer Price Index for all Urban Consumers for the area including Santa Clara County (the "CPI"), including all items as published by the U.S. Bureau of Labor Statistics as of December of each succeeding year, not to exceed a maximum increase of three percent (3%) in any single year. Adjustments will only occur if actual additional costs are incurred .

B. The Clean Water and Sto1m Protection fee shall not be deemed to be increased in the event the actual fee upon a parcel in any given year is higher due to a change in use of the subject parcel or an increase in the amount of the impervious area of the subject parcel.

C. In any year in which the City Council does not change the Clean Water and Storm Protection fee rate, pursuant to the voter-approved CPI allowable annual increase, the previously adopted fee shall continue in full force and effect for the next fiscal year.

D. The City Council shall not be required to enact a CPI increase each year. 3.38.040.A .

3.38.050 Various Actions.

Without a vote of the property owners , in any year the City Council may do any and all of the following: (a) discontinue the Clean Water and Storm Protection fee; (b)reduce the rate for all parcel categories ; or ( c) increase the rate up to or below the maximum voter-authorized rate if it has been previously set below such rate.

3.38.060 Effective Date of Fees.

The Clean Water and Storm Protection fees shall become effective on July 1, 2019.

3.38.070 Fees Collected with General Taxes.

A. Subject to the exceptions hereinafter set forth, the City elects, as an alternative procedure for the collection of Clean Water and Storm Protection fees prescribed or imposed by the provisions of this chapter, to have all such Clean Water and Storm Protection fees for each fiscal year collected on the tax roll in the same manner, by the same persons and at the same time as, and together with and not separately from, its general taxes.

B. The Director of Public Works is hereby directed to prepare and file with the City Clerk, on or before the fifteenth day of June of each year, or such other date or dates as the City Council may specify by resolution , a written report containing a description of each and every parcel of real property receiving the benefit of the storm drainage system mentioned in this chapter, except for those parcels the fees for which are not to be collected on the tax roll, and the amount of the Clean Water and Storm Protectionfees 6 {
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for each parcel for the forthcoming fiscal year, computed in confonnity with the fees presc1ibed by the provisions of this chapter .

C. The City Clerk shall cause notice of the filing of said report and of a time and place of hearing thereon to be published , p1ior to the date for hearing, in a newspaper of general circulation printed and published within the City. The publication of said notice shall be once a week for two consecutive weeks . Two publications in a newspaper published once a week or more often, with at least five days intervening between the respective publication dates, not counting such publication dates, are sufficient.

The period of notice commences upon the first day publication and tenninates at the end of the fourteenth day .

D. At the time stated in the above-mentioned notice, the City Council shall hear and consider all objections or protests, if any, to the report referred to in said notice, and may continue the hearing from time to time. If the Council finds that protest is made by owners of a majority of separate parcels of property described in the report, then the report shall not be adopted , and fees shall be collected separately from the tax roll and shall not constitute a lien against any parcel orparcels .

E. Upon the conclusion of the hearing, the City Council may adopt , revise, change, reduce, or modify any fee or ove1rule any or all objections and shall make its determination upon each fee as described in said report, which determination shall be final.

F. 1. On or before the first day of August of each year following such final determination , the City Clerk shall file with the Finance Director a copy of the report with a statement endorsed thereon over the City Clerk's signature that it has been finally adopted by the CityCouncil.

2. The Finance Director shall thereupon cause said fees to be placed on the prope11y tax roll and collected by the County for the City, as hereinafter provided . The County 's tax collector shall enter the amounts of the fees against the respective parcels as they appear on the current assessment roll. If the property is not described on the roll, the County 's tax collector may enter · the description thereon, together with the amounts of the fees as shown in the report .

G. The amount of the fees shall constitute a lien against the parcel against which the fee has been imposed as of noon on the first Monday in March immediately preceding the date of the levy .

H. The tax collector shall include the amount of the fees on bills for taxes levied against the respective parcels . Thereafter the amount of the fees shall be collected at the same time and in the same manner and by the same persons as, together with and not separately from, the general taxes for the City, and shall be delinquent at the same time and thereafter be subject to the same delinquency penalties .

I. All laws applicable to the levy, collection and enforcement of general taxes of the City including , but not liinited to, those pertaining to matters of delinquency, collection, cancellation, refund and redemption, are applicable to such fees.

J. The tax collector may, at the tax collector 's discretion, issue separate bills for such fees and separate receipts for collection on account of such fees .

K. If any parcels receiving benefit from the storm drainage system are omitted from the abovementioned report or said tax roll , either because the fee therefor shall not have yet been ascertained by the City as of the date of said report , or for any other reason , the Clean Water and Storm Protection fee for such parcels shall be collected in the manner provided elsewhere in this chapter. If the fee for any parcels , as shown on said report for the forthcoming fiscal year, should be less than what should be the 7 fee therefor under the provisions of this chapter , the balance of such fee shall be collected in the mam1er ( provided elsewhere in this chapter. If, however, the fee for any parcels shown in the report and collected on the tax roll should exceed the correct fee for such parcels for the fiscal year , the Finance Director shall refund the excess amount so collected .

3.38.080 Payment of Balance of Fee.

A If the fee for any parcels placed on the tax roll, or for any parcels collected based upon · billing, was less than what should be the fee therefor under the provisions of this chapter due to error, the balance of said fee shall be collected by a bill or invoice based on a detailed statement showing the basis of the calculations , the location of the parcels and other relevant information, and prepared on or after January 1st for the preceding six months from July to December during which a discrepancy between the amount collected and the correct fee is discovered, and on or after July 1st for the preceding six months from January to June during which such a discrepancy is discovered . The Finance Director shall mail said bill or invoice to the person or persons listed as the owners of the parcels on the last equalized assessment roll of the County at the address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the Finance Director.

Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice shall not excuse the owner of any parcels from the obligation of paying the balance of any Clean Water and Storm Protection fee for any parcels owned by him or her.

B. The interested owner may, at any reasonable time, review the detailed statement prepared by the Finance Director .

C. The balance of the Clean Water and Storm Protection fee for such parcels shall be due and ( payable on the date the bill or invoice referred to in this section is mailed .

3.38.090 Collection of Fees Omitted from Tax Roll-Billing.

A The Finance Director shall semi-annually, on or after July 1st, prepare or cause to be prepared a detailed statement containing the basis of the calculations , the location of the parcels and other relevant information, showing the total monthly fee for the preceding six months from January to June and on or after January 1st, for the preceding six months from July to December for any parcels the fee for which should be collected on the tax roll pursuant to Section 3.38 .070A but was omitted from the report referred to in Section 3.38 .070B, or parcels the fee for which is collected pursuant billing.

B. An invoice may be rendered for a period of less than six months if the commencement dateof fees is other than July 1st or January 1st, as may be the case with newaccounts .

C. On the basis of the statement, the Finance Director shall prepare a bill or invoice showing the total fee for such six months or less, and shall mail said bill or invoice to the person or persons listed as the owners of the parcels on the last equalized assessment roll of the County at the address shown on such assessment roll, or to the successor in interest of such owner if the name and address of such successor in interest is known to the Director. Failure to mail any such bill or invoice , or failure of any owner to receive any such bill or invoice shall not excuse the owner of any parcels from the obligation of paying any Clean Water and Storm Protection fee for any parcels owned by him or her.

D. The interested owner may, at any reasonable time, review the detailed statement prepared by the Finance Director.
8 E. The Clean Water and Sto1m Protection fee for such parcels shall be due and payable immediately upon receipt of the bill or invoice referred to in this section .

3.38.100 Payment of Fees-Owner Responsibility.

The owner of any parcel is and shall be responsible for payment of any and all Clean Water and Stonn Protection fees applicable to parcels owned by him or her. It shall be and is hereby made the duty of each such owner to provide to the Finance Director information sufficient to calculate the land area of the parcels within thirty days after request of the Finance Director and ascertain from the Finance Director the amount and due date of any such fee applicable to parcels owned by such owner and to pay such fee when due and payable. It also shall be and is hereby made the duty of all owners of all parcels to inform the Finance Director immediately of all circumstances , and of any change or changes in any circumstances, which will in any way affect the applicability of any fee. In particular, but not by way of limitation, an owner of any parcel shall immediately inform the Finance Director of any sale or transfer of such parcel by or to such owner.

3.38.110 Payment of Fees-Location.

Except as otherwise provided elsewhere in this chapter, all Clean Water and Storm Protection fees shall be payable at the office of the Finance Director in the City Hall of the City.

3.38.120 Payment of Fees-Delinquency Date.

Except as otherwise provided elsewhere in this chapter, each Clean Water and Storm Protection fee shall be delinquent if not paid on or before the fortieth day immediately following the date upon which such Clean Water and Storm Protection fee became due and payable .

3.38.130 Penalty for Delinquency.

Except as otherwise provided elsewhere in this chapter, whenever any Clean Water and Storm Protection fee becomes delinquent, there shall be imposed a penalty equal to one hundred percent of the amount as set forth under Section 3.38 .030 .

3.38.140 Disputed Fees.

If any owner disputes the amount of the fee in any bill or invoice, the owner shall, within thirty days from and after the date such bill or invoice is mailed, and no later, file a claim with the Finance Director accompanied by detailed supporting factual data in support of the claim. It shall be the duty of each such owner to prove to the Finance Director, that such fee is in error and the correct amount thereof .

If the Finance Director determines that the bill or invoice was in error, the Finance Director shall correct said bill. Failure to dispute the amount of the fee in accordance with this section shall be deemed acceptance of the correctness of the fee.

3.38.150 Fiscal Accountability
A. The City shall retain an independent auditor to conduct an annual audit of the Clean Water and Storm Protection Fee and environmental management/ clean creeks fund as part of its comprehensive annual financial report . The auditor shall include an accounting of the revenue received from the fee and expenditures thereof in the audited financial statements. The auditor's report shall be presented to the City Council and made available to the public . The Director of Administrative Services or the Director of Public Works shall prepare and present to the City Council an annual report in conjunction withthe 9 annual audit that reviews the status and performance of the programs, services and projects funded wholly ( or paiiially with proceeds of the Clean Water and Stonn Protection Fee.

B. The City Council shall either select a citizen 's oversight committee or assign oversight duties to a pre-existing oversight c01mnittee to review and report annually on the receipt of revenue and expenditure of funds from the storm drainage service charge fund authorized by this chapter.

3.38.160 Special Fund-Restricted Use of Revenues.

A. All revenues collected pursuant to the provisions of this chapter shall be placed into a special fund, which is known as the "environmental management/ clean creeks fund," created by Section

3.36.170 of Chapter 3.36 of the Municipal Code (Storm Drainage Service Charge) . Such revenues may be used for the purpose specified in Section 3.38.010, and for no other purpose; provided, however, that moneys deposited in the fund may be used for direct and administrative costs of the City in collecting the Clean Water and Storm Protection fees imposed by this part and for direct and indirect overhead costs of the City in perfomling any tasks, including, but not limited to, calculation of the benefits received by properties from the storm drainage system.

B. As used in this section , "direct costs" means wages and salaries and costs of employee fringe benefits incurred by the City, and rnileage reimbursement attributable to said collection activities. As used in this section, "administrative costs" includes, but is not limited to all costs for computer service, materials , postage, supplies and equipment.

C. Notwithstanding subsections 3.38.160A and 3.38.160B, interest on revenues in the environmental management / clean creeks fund may be credited to the general fund of the City or to any ( other fund in the discretion of the City Council.

3.38.170 Refunds.

Whenever any refunds should become owing by virtue of any relief granted by the City Council pursuant to the provisions of Section 3.38.140 or by virtue of any error made in ascertaining the fee applicable to any parcels, the Finance Director is authorized to make such refunds and to expend for such purpose the moneys in the environmental management I clean creeks fund. Notwithstanding the provisions of Section 3.38.140, any claim for refund for fees collected under Section 3.38.070 must be made within one year after the date bills for taxes are received by the owner . The City shall not be liable for interest or any amount detemlined to be refundable .

3.38.180 Inspection of Parcels Authorized.

The Director of Public Works, the Finance Director and their authorized representatives are hereby given power and authority to enter upon and within any parcels to ascertain the nature of such parcels; to inspect, observe, and review the benefit received from the storm drain system as may be allowed by law.

3.38.190 Payment of Delinquent Fees-City Enforcement Powers.

A. Notwithstanding other remedies, in the event of the failure of any owner to pay when due any Clean Water and Storm Protection fees applicable to parcels owned by such owner, the City may enforce payment of such delinquent fees by instituting action in any court of competent jurisdiction to collect any fees which may be due and payable in the same manner as any other debts owing to the City may be , collected. \
10 B. Any and all delinquent payments may be placed on the tax roll , and collected with prop.erty taxes , as provided in Section 3.38.070 .

C. Such other action may be taken as may be autho1ized by law and by the CityCouncil.

D. Remedies under this section are in addition to and do not supersede or limit any and all other remedies , civil and criminal.

SECTION TWO - CEQA EXEMPTION
The City Council finds, based on its own independent judgement , that the proposed amendments to the Cupertino Municipal Code are statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b )(8) and CEQA Guidelines 15273(a) - Rates, Tolls, Fares, and Charges and categorically exempt pursuant to CEQA Guidelines Section 15301. A Notice ofExeniption will be filed with the County Clerk.

SECTION THREE - INCONSISTENCIES REPEALED
This Ordinance is intended to be contro lling on the authority to establish the Clean Water and Stonn Protection fee, and shall supersede all prior ordinances , resolutions, rules or regulations that in conflict wherewith. Any provision of the Cupertino Municipal Code, or appendices thereto , or any other ordinances of the City inconsistent herewith , are repealed only to the extent of such inconsistencies and no further.

SECTION FOUR- IMPLEMENTATION
The City Manager is hereby authorized and directed to take any action and sign any documents necessary to implement this ordinance .

SECTION FIVE - SEVERABILITY
If any section, subsection , sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid , such a decision shall not affect the validity of the remaining portions of the Ordinance . The Council of the City of Cupertino hereby declares that they would have passed this Ordinance and each section or subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences , clauses or phrases be declared invalid.

SECTION SIX- EFFECTIVE DATE; PUBLICATION.

The City Clerk is directed to post and publish this ordinance in accordance with law in a newspaper of general circulation printed and published in the County of Santa Clara , or as otherwise required by law .

This ordinance shall take effect as provided by Government Code Section 36937 . 11 INTRODUCED at a regular meeting of the City Council of the City of Cupertino on the 7th day of May 2019 and enacted at a regular meeting of the City Council of the City of Cupertino after ce1iification of the ballot results on the 16°
1 day of July 2019 .

Members of the City Council:

AYES:

NOES:

Scharf, Chao, Paul, Sinks, Willey
None
ABSENT: None
ABSTAJN: None
SI~
1_/ J~i\~~
Steven Scharf, Mayor Date \
City of Cupertino
ATTEST:

Ci4-r: . 9 ,l, l'j,f- &-- ( t 1-
Date
Grace Schmidt, City Clerk
APPROVED AS TO FORM:
"-·
?(3aL,q 1~A-- '--~
l
Heather Minner, City Attorney Date
Exhibit A (Attachment Bl) - Fee Report for the 2019 Clean Water and Stonn Protection Fee Report (
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l

ST ATE OF CALIFORNIA )

COUNTY OF SANTA CLARA )

CITY OF CUPERTINO )
I, GRACE SCHMIDT, City Clerk and ex-officio Clerk of the City Council of the City of Cupertino, California, do hereby certify the attached to be a true and con-ect copy of Ordinance No. 19-2183, which was enacted on July 16th, 2019, and that it has been published or posted pursuant to law (G.C. 40806).

IN WITNESS WHEREOF, I have hereunto set my hand and seal this 16th day of July, 2019.

GRACE SCHMIDT, City Clerk and Ex-officio Clerk
of the City Council of the City of Cupertino, California (
Attachment B 1

CITY OF C UPERTINO

FEE REPORT
2019 CLEAN WATER AND STORM PROTECTION FEE
FEBRUARY 2019
PURSUANT TO THE ARTICLES XII IC & 0 OF THE CALIFORNIA CONSTITUTION, AND THE GOVERNMENT (ODE SECTIONS 38900 - 38901 ET AL.

ENGINEER OF WORK:

SCI ConsultingGroup
4745 MANGELS BOULEVARD
FAIRFIELD, (AUFORNIA 94534
PHONE 707.430.4 300
FAX 707.430.4319
WWW SCI-CG.COM

CITY OF CUPERTINO

CITY OF CUPERTINO

CITY COUNCIL
Steven Scharf, Mayor
Liang Chao, Vice Mayor
Darcy Paul, Councilmember
Rod Sinks, Councilmember
Jon Willey, Councilmember

INTERIM CITY MANAGER
Timm Borden

PUBLIC WORKS DEPARTMENT
Roger Lee, Acting Director

ENGINEER OF WORK
Jerry Bradshaw, SCI Consulting Group
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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SCCConsultingGroup
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TABLE OF CONTENTS
INTRODUCTION AND EXECUTIVE SUMMARY ....................................................... ............... ........ 1 OVERVIEW ...... ............................................... ....... ................................. ......................... 1 CITY'S FACILITIES .. ................................................... .. .. .......................... ......... ................ 1 STORMWATER FUNDING BACKGROUND ............................................................. ................ 2 LEGAL REQUIREMENTS OF STORMWATER FEE ................ ...................................... .. ........... 2 FACILITIES AND SERVICES .............................................................. ................. ........... ............ 4 FINANCIAL NEEDS AND REVENUE REQUIREMENTS ................................................ .......... .......... 5 SUMMARY OF CLEAN WATER AND STORM PROTECTION SYSTEM NEEDS .............................. 5 ANNUAL REVENUE REQUIREMENT ..................................................................................... 6 RATE STRUCTURE ANALYSIS ................................... .................................... .......... ................. 7 SINGLE-FAMILY RESIDENTIAL PARCELS AS BENCHMARK ......................................... ............ 7 NON-SINGLE-FAMILY RESIDENTIAL PARCELS ........................... ..... .................................... . 9 Low IMPACT DEVELOPMENT RATE ADJUSTMENT.. .................. ............................ .............. 11 STORMWATER FEE CALCULATION .......... ......... ............................. ............................ .... ... 12 ANNUAL COST INDEXING ............................. -......................................... .......................... 14 MANAGEMENT AND USE OF STORMWATER FUNDS .............. .. ............................................ 14 APPENDICES ................. .................................. ........................... ......................................... 15 APPENDIX A-REGULATORY ASSESSMENT & COST AND REVENUE ANALYSIS ..................... 15 APPENDIX B-PERCENTAGE OF IMPERVIOUS AREA ESTIMATIONS ...................................... 28 APPENDIX C-STORMWATER RATES FROM OTHER MUNICIPALITIES .................................. 30

CITY OF CUPERTINO
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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LIST OF TABLES
TABLE 1 - SUMMARY OF PROGRAM REVENUES ............................... .. ................. ..................... . 5 TABLE 2 - SUMMARY OF PROGRAM COSTS ...... .............. .................... ...................... ................ 6 TABLE 3-ESTIMATE OF ANNUAL REVENUE REQUIREMENT ............. .................................... ...... 6 TABLE 4- SUMMARY OF SINGLE-FAMILY RESIDENTIAL PARCELS .......... ......................... .......... .. 9 TABLE 5- SUMMARY OF NON-SFR PARCELS ........ ........ ................ .................................. ....... 10 TABLE 6-Low IMPACT DEVELOPMENT RATE ADJUSTMENT ANALYSIS ............ ........................ . 12 TABLE ?-PROPOSED 2019 CLEAN WATER & STORM PROTECTION FEE SCHEDULE ................. 13 TABLE 8- PERCENT OF IMPERVIOUS AREA FROM STORM DRAIN MASTER PLAN .................. ...... 28 TABLE 9-PERCENTAGE OF IMPERVIOUS SURFACE FROM STORM DRAIN MASTER PLAN ............ 29 TABLE 10 - RECENT STORM DRAIN BALLOT MEASURES ................................. ......................... 31 TABLE 11-SAMPLE OF RATES FROM OTHER MUNICIPALITIES ............. ......................... .. ......... 32

CITY OF CUPERTINO
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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INTRODUCTION AND EXECUTIVE SUMMARY

OVERVIEW
The City of Cupertino ("City") has engaged SCI Consulting Group to study, make recommendations, and assist in the implementation of a funding approach for its municipal separate storm sewer system1 ("MS4") including environmental programs, maintenance and operations, and compliance with all state and federal regulations associated with the National Pollutant Discharge Elimination System2 ("NPDES") permit.

Since 2013 the City's Public Works Department has developed several planning documents pertaining to its Clean Water and Storm Protection program ("Program"). These include the Trash Reduction Plan (2014 ), the Green Infrastructure Plan currently under development (to be completed in 2019) and the Storm Drain Master Plan ("SDMP," completed in 2018).

These plans made it clear that the Program would need to expand its levels of service to achieve the goals of responsible environmental stewardship and smart investment in the City's aging infrastructure.

In 2018, the City embarked on a two-phase project to determine the feasibility of implementing a dedicated, sustainable revenue stream to fund the City's Clean Water and Storm Protection needs. The first phase included exploring potential funding sources, estimating user rate ranges for various budget scenarios, and conducting a public opinion survey of Cupertino residents and property owners to determine storm drain-related priorities and willingness to support a fee for these services. The City Council has now embarked on the second phase: implementation of a funding mechanism. This Fee Report is the first step in that process.

CITY'S FACILITIES

CITY OF CUPERTINO
The City operates and maintains a storm drainage system, as it is empowered to do per Government Code Sections 38900 and 38901. This system is comprised of integrated storm drain pipes, inlets, outfalls. culverts, and ditches which divert stormwater to local creeks to prevent flooding. As the community grew and neighborhoods and business districts expanded, the City's storm drainage system was developed. When the first NPDES permit was issued in the early 1990s, the City recognized the fiscal burden these new clean water requirements would bring and established a property fee on most parcels to fund this activity.

Since that time the City has worked diligently and efficiently to continue meeting the ever­ increasing requirements of the NPDES permit, while the State's clean water requirements have evolved into a comprehensive environmental stewardship program. 1 In this report, the terms "storm sewer," "storm drainage," " storm protection," and "stormwater" are used interchangeably, and are considered to be synonymous. 2 Created in 1972 by the Clean Water Act, the NPDES permit program is authorized by the EPA to allow state governments to perform many permitting, administrative, and enforcement aspects of the program.

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The operations and maintenance ("O&M") side of the Program has also developed many activities that support a clean water supply and maintain the City's aging infrastructure to protect the neighborhoods and businesses from local flooding. On average, the industry­ standard life expectancy of a storm drain system is approximately 60 years. The majority of the City's storm drain pipes were installed approximately 50 or more years ago, leaving the City with a system that is approaching the end of its useful life. Moreover, as noted in the Storm Drain Master Plan, so'me of the drainage system does not have adequate capacity.

STORMWATER FUNDING BACKGROUND
The City historically has funded its clean water program and storm drain maintenance activity primarily through two sources: The General Fund and the Storm Drainage Service Charge3 established in 1992. The 1992 charge, established at $12 per year for single-family residential and $144 per acre for commercial parcels, has not been increased since its inception.4 For more than a decade, the General Fund has carried the increasing burden of the Program. As a result, the City has needed to limit capital expenditures and keep operations and maintenance activities to a less than desirable level of service, mostly responding to storm-related emergencies and basic regulatory compliance.

The scale and projected needs of the system in a time of competing demands on the General Fund point toward the need for developing a separate, dedicated and sustainable funding stream. As many other municipalities in California have done, including San Jose and Palo Alto, the City of Cupertino is considering developing a new, additional, more secure and (
predictable source of funding for the Program. This Fee Report is the first step in that ( process, should the City decide to proceed.

LEGAL REQUIREMENTS OF STORMWATER FEE

CITY OF CUPERTINO
This Report calculates the Stormwater Fee as a property-related fee. Property-related fees are subject to the requirements of Articles XIIIC and D of the State Constitution, which were approved by voters in 1996 through Proposition 218, as well as the Proposition 218 Omnibus Implementation Act (Government Code Sections 53750 - 53758).

Any property-related fee must comply with requirements of Article XIIID, Section 6. These include the following:
• Revenues derived from the fee shall not exceed the funds required to provide the property-related service;
• Revenues derived from the fee shall not be used for any purpose other than that for which the fee was imposed;
• The amount of a fee upon any parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel; 3 Cupertino Municipal Code Chapter 3.36.
4 This "freeze" on the stormwater fees are due primarily to the stringent requirements of Proposition 218 for a ballot measure to increase fees.
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CITY OF CUPERTINO

• No fee may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Fees based on potential or future use of service are not permitted. Standby charges, whether characterized as charges or assessments, shall be classified as assessments and shall not be imposed without compliance with the assessment section of the code; and
■ No fee may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services where the service is available to the public at large in substantially the same manner as it is to the property owners. 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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FACILITIES AND SERVICES

CITY OF CUPERTINO
The City operates and maintains a municipal separate storm sewer system within the City's boundaries. The system is made up of man-made drainage systems including, but not limited to, curbs and gutters, ditches, culverts, pipelines, manholes, catch basins (inlets) and outfall structures. The natural creek system that runs throughout the City serves as the backbone of the City's system. While primary maintenance of those creeks is the responsibility of the Santa Clara Valley Water District, the City, through its Program, collaborates with the Water District for creek stewardship and educational activities. The system serves the entire City.

The primary storm drainage service provided by the City is the collection, conveyance, and overall management of the stormwater runoff from parcels. By definition, all parcels that shed stormwater into the City's system, either directly or indirectly utilize, or are served by, the City's storm drainage system. The need and necessity of this service are derived from property improvements, which historically have increased the amount of stormwater runoff from the parcel by constructing impervious surfaces such as rooftops, pavement areas, and certain types of landscaping that restrict or retard the percolation of water into the soil lens beyond the conditions found in the natural, or unimproved, state. As such, open space land (in a natural condition) and agricultural lands that demonstrate stormwater absorption equal to or greater than natural conditions are not charged a fee. Other vacant land that was once improved or has been prepared for future improvements do not qualify as open space or natural land and will typically be charged a fee.

The 2018 SDMP contains a thorough set of maps and lists of various elements within the stormwater system. Those descriptions are the basis for this Report. 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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FINANCIAL NEEDS AND REVENUE REQUIREMENTS

SUMMARY OF CLEAN WATER AND STORM PROTECTION SYSTEM NEEDS

CITY OF CUPERTINO
As part of. the fee implementation task, the SCI team conducted an analysis of the City's Clean Water and Storm Protection system needs. This analysis is contained in a technical memorandum dated February 20, 2019 from the firm of Larry Walker Associates and is included in Appendix A of this Report. This analysis reviewed existing revenues and estimated the true costs to the Program of preventing local flooding and remaining in compliance with the current NPDES permit, commonly known as the Municipal Regional Permit ("MRP") issued by the Water Board to all Phase 1 permittees in the San Francisco Bay area. The first MRP was issued in 2009. The second MRP was issued in 2015 and is referred to as MRP 2.0.

PROGRAM REVENUES
The first step of the analysis was to review the revenues available to the City's Program.

Based on information provided by the City, the existing revenues are projected through Fiscal Year 2023-24 as shown in Table 1 below. These values are drawn from Appendix A, Table 1.

TABLE 1 - SUMMARY OF PROGRAM REVENUES
, Shown in thousands
1 Current Future
[~e~enue_Category 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Stormwater Charges $ 370 $ 370 $ 370 $ 370 $ 370 $ 370
Other Revenue $ ~ $ 9 $ 9 $ 9 $ 9 $ 9
General Fund Transfer In $ 818 $ . $ . $ . $ . $
TOTAL Revenues $ 1,197 $ 379 $ 379 $ 379 $ 379 $ 379

PROGRAM COSTS
The City's Program is influenced primarily by the requirements to prevent local flooding and to comply with the MRP 2.0. Cost estimates were based on budgetary and supplemental information provided by the City. In broadly assessing the Program's costs and following the City's current Budget structure, two main categories were used: Operations and Maintenance ("O&M") Costs, and Clean Water Program5 Costs. These categories reflect how the City generally allocates funds to implement its day-to-day storm drainage-related operations.
5 The City's Budget document uses "Non-Point Source" as the name for the Clean Water program .
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More detailed information can be found in Appendix A. The program costs are summarized in Table 2 below. The total costs shown in the right-hand column is for the five future years.

These values are drawn from Appendix A, Table 2.

Clean Water

TOTAL COSTS
TABLE 2- SUMMARY OF PROGRAM COSTS
Current
18-19
$ 477
$ 721
$1,197
Future
19-20
~
22-23
Shown in thousands
23-24 TOTAL
891 918 964 994 1,025 4,792
$ 1,443 $ 1,487 $ 1,550 $ 1,597 $ 1,647 $ 7,724

ANNUAL REVENUE REQUIREMENT
The proposed fee is scheduled to begin in Fiscal Year 2019-20. Therefore, the data presented in Appendix A for prior years do not factor into the analysis. What remains is a fiv~-year window in which projected revenue sources and projected costs are presented. (
Over the five fiscal years, the projected costs exceed revenues by $6.0 million. This is the amount that the proposed Clean Water and Storm Protection Fee would need to generate in order to bring the Program into balance. The resulting revenue requirement is therefore (

CITY OF CUPERTINO
based on an annual revenue, adjusted for inflation at 3.0% per year over the five-year period, that totals $6.0 million over those five years. These projections are summarized in Table 3 below.

Category
Expenditures
Shortfall
TABLE 3-ESTIMATE OF ANNUAL REVENUE REQUIREMENT
Current
18-19
Future
19-20
na , ..

Shown in thousands
1,487 1,550 1,597 1,647
$(1,108) $(1,171) $(1,218) $(1,268)
TOTAL
7,724
$ (5,829)
Revenue Requirement* $ 1,098 $ 1,131 $ 1,165 $ 1,200 $ 1,236 $ 5,828 * Revenues are increased by 3.0% annually for inflation 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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RATE STRUCTURE ANALYSIS
Proposition 218 states that the amount of a fee upon any parcel shall not exceed the proportional costs of the service attributable to the parcel. It also states that no fee may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property. As noted earlier, all properties that shed stormwater into the City's system are served by that system. In compliance with Proposition 218, the proposed 2019 Clean Water and Storm Protection Fee will only be imposed on properties that shed water, directly or indirectly, into the City's system. Additionally, the amount of use attributed to each parcel is proportionate to the amount of stormwater runoff contributed by the parcel, which is, in turn, proportionate to the amount of impervious surface area on a parcel (such as building roofs and pavements).

SINGLE-FAMILY RESIDENTIAL PARCELS AS BENCHMARK

CITY OF CUPERTINO
The most widely used method of establishing storm drainage rates6 is to use the average or median single-family residential parcel? ("SFR") as the basic unit of measure, or benchmark, which is called the single-family equivalent, or "SFE." Since the metric for this fee structure is impervious surface area, a benchmark amount of impervious surface area ("ISA") must be established.

Cupertino has a wide range of sizes of SFR parcels, which have varying percentages of impervious area ("%IA"). Generally, smaller, denser parcels tend to have a higher proportion of impervious area than larger, less dense parcels, which tend to have a lower percentage of impervious area. (This can be best visualized by the fact that larger residential properties tend to have a larger proportion of pervious landscaping, and therefore a smaller proportion of impervious area.) Therefore, the range of SFR was broken into four size categories as shown in Table 4 below with the medium category containing the largest number of parcels.

The City's 2018 SDMP includes an analysis of the % IA for Cupertino. 8 The SDMP findings of %IA for various land uses were used as a basis for this Report. Since the categories in the SDMP don't completely align with the rate categories established in this Report, some adjustments were made. A summary of these adjustments is shown in Appendix 8.

The median sized SFR parcel is 0.17 acre (approximately 7,405 square feet), which is also the median parcel size for the medium SFR rate category. That size of parcel is considered 6 Stormwater Utility Survey, 2017, page 2, Western Kentucky University. 7 The SFR category also includes multiplex parcels of two, three or four units, since the lot development characteristics do not vary significantly from the SFR parcels of similar size.

In all, this includes the approximately 496 multiplex parcels in the City, which were distributed to the same four parcel size categories as the other SFRs. Any residential structure with five or more units is categorized as multi-family residential ("MFR"), which is calculated separately.
8 Section 2.2.3, page 2-6 of the City of Cupertino Storm Drain Master Plan. 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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to fall into the low-density residential category of the SDMP, which is reported to have a %IA of 55%. Therefore, the median parcel in Cupertino contains 4,073 square feet of impervious surface area ("ISA") as shown in the calculation below. This will be used as the benchmark (1 SFE) for all other size categories and other non-residential land uses. 1 SFE = %IA x Median Parc el Size
= 55% X 7,405 sf
4,073 sf
This becomes the basis for calculating the SFEs for all other types of land uses. The %IA for each size category was applied to the median size parcel in that category to calculate its median ISA. The SFE per parcel for each size category is a simple ratio of the median ISA for each category to the ISA (4,073 sD for the benchmark category of medium-sized parcels as shown in the following formula:

SFE p er Parcel =

SPECIAL NOTES ON CONDOMINIUMS
Median ISA
4,073
Condominium units are particularly difficult to categorize as they are often on very small (
individual parcels yet share larger common areas that are made up of landscaped (pervious) ( areas, parking lots and shared roofs, and other recreational uses (either pervious or impervious). The data for these variables is not readily available, so some assumptions are

CITY OF CUPERTINO
made about their characteristics.

Condominiums can be grouped into two categories: High density where they tend to have units on multiple fioors (similar to apartment buildings), and medium density where they are only one unit high (i.e., townhomes). For the medium-density condominium units, the presence of common areas with landscape features make them very similar to the small-lot SFR parcels, and therefore they are assigned the same ISA (3,354 sn and SFE per parcel as a small-lot SFR parcel.

For the high-density condominium units, further analysis was done. Fourteen condominium complexes with 1,246 unit~ were identified throughout the City. Using aerial photographs, measurements were made of the impermeable areas. A strong trend was found such that the average ISA per unit was 1,099 square feet. Therefore, the high-density condominiums are assigned an ISA of 1,099 square feet. This is 33% of the ISA for the medium-density condominiums.

Table 4 below shows a summary of the SFEs for single-family residential parcels. 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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TABLE 4- SUMMARY OF SINGLE·FAMIL Y RESIDENTIAL PARCELS
I
Median
Total Total Parcel SFE per
! Lot Type Parcel Siz_e Rii_nge Parcejs* Acres* Size % I A** IS A Parcel _ Acres SF SF
Small under 0.13 1,526 159 4,792 70% 3,354 0.82
Medium 0.13 to 0 .22 8,958 1,510 7,405 55% 4,073 1.00
Large 0.23 to 0.40 1,542 420 11,326 45% 5,097 1.25
Extra Large over 0.40 345 460 27,878 35% 9,757 2.40
Condosl (one story) 2,221 95 na na 3,354 0.82
Condos 2+ (2+ stories) 1,246 46 na na 1,099 0.27
15,838 2,690
* Total Parcel s and Acres do not factor into the bas is of the SFE cal culation; they are shown for informational purposes only.

NON-SINGLE-FAMILY RESIDENTIAL PARCELS

CITY OF CUPERTINO
Unlike the SFR parcels, the non-SFR parcels can vary widely in size as well as characteristics. For this reason, the parcels have been grouped into land use categories according their %IA characteristics (as shown in Appendix B). The SFE for each land use category is based on a per-acre basis, so size can be a variable in the calculation of the fee.

The SFE-per-acre can be computed for each category using the following formula:

SFEp erAcr e (43,560 sf I acre) x % I A
4, 073 sf
where 4,073 square feet is the amount of ISA in one SFE.

Table 5 below shows a summary of resulting the non-single-family parcel SFEs for each non-SFR land use category.
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CITY OF CUPERTINO

TABLE 5- SUMMARY OF NON-SFR PARCELS
I Total Total SFE per
1 Land Use Category Parcels* Acres* % I A** Acre
Multi-Family (Apartments) 79 200 65% 6.95
Commercial/ Retail/ lmdustrial 256 441 85% 9.09
Office 217 372 65% 6.95
Church/ Institutional 39 98 55% 5.88
School (w/playfield) 16 329 40% 4.28
Park 3 53 15% 1.60
Vacant (developed) 134 153 5% 0.53
Open Space/ Agricultural 240 1,192 na
TOTAL 984 2,837
* Total Parcels and Acres do not factor into the basis of the SFE calculation; they are shown for informational purposes only .
** %IA is taken from Appendi x B
Each individual parcel's SFE is then calculated by multiplying the parcel size (in acres9) times the SFE per acre for that land use category, as shown in the following formula:

SFE = Parcel Size (acres) x SFE p er Acre
DEVELOPED VACANT10 PARCELS
Developed vacant parcels are devoid of obvious structures or improvements but are distinguished from undeveloped vacant land by one of several characteristics. Typically, a developed vacant parcel has been graded to be ready for building construction (possibly as part of the original subdivision or adjacent street grading). In some cases, the parcel previously contained a structure or improvement that has been removed, but its fundamental alteration from a natural state remains. Although developed vacant parcels may have significant vegetative cover, the underlying soil conditions resulting from grading work or previous improvements usually cause some rainfall to runoff into the storm drainage system.

The %IA for developed vacant parcels is reasonably assumed to be 5%, which is also used as a minimum value of imperviousness for any land use type (excluding open space and agricultural land - see next section). Vacant parcels that have significant impervious paving remaining from prior improvements may be classified as Commercial or some other classification best representing the %IA of the parcel. 9 Parcel size for non-SFR parcels is calculated to the tenth of an acre or portion thereof. 10 "Vacant" in this Report refers to land that is devoid of improvements. It does not refer to land with vacant buildings or improvements, which would continue to shed water to the MS4 the same as if they were occupied.
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OPEN SPACE AND AGRICULTURAL PARCELS ARE Nor CHARGED
The City's storm drain system was developed in response to land development over the many decades. Tracts of land that have not yet been developed, or have been used primarily for agricultural purposes, have not created an impact on the system beyond the natural condition, and are therefore considered to receive no service from the system. In practical terms, these parcels generate no additional storm runoff beyond the natural condition. For these reasons, open space and agricultural parcels are not charged a Fee.

HYBRID PARCELS
Some parcels may have both improvements as well as significant open space areas. For such parcels that contain a residence, the open space acreage does not increase the fee because residential parcels are not charged on a per-acre basis. Rather, they are charged based on the median ISA for that size category.

For such parcels that contain non-residential improvements (which are charged on a per­ acre basis), the chargeable acreage should be adjusted downward to reflect the improved area only, leaving the open space area "invisible" to the fee calculation. Where parcels have been found in this category, that acreage adjustment has been made.

Low IMPACT DEVELOPMENT RATE ADJUSTMENT

CITY OF CUPERTINO
The current NPDES Permit requires certain properties to construct stormwater treatment and attenuation facilities, also known as low impact development ("LID"). These facilities are typically designed to capture a portion of the storm flows, retain them, and enable them to infiltrate into the ground. While this is intended to help filter pollutants from the water, it also can reduce the parcel's stormwater runoff quantity to some extent, which in turn can reduce a parcel's impact on the system. In addition to NPDES-required LID, other parcel owners may elect to follow LID guidelines voluntarily.

The section of the MRP that requires LID facilities is Provision C.3 (New Development and Redevelopment). Compliance with C.3 is a well-established and convenient metric on which to base customer activities that further Program goals and affect Program costs. C.3 compliance can have impacts to many of the Program elements. In order to analyze the extent to which C.3 compliance will impact Program costs, each Program element was rated with one of four impact levels: none (0%), minor (25%), medium (50%), and major (80%).

By applying those impact levels to the costs of each Program element, it was determined that compliance with Provision C.3 equates to approximately 25% of the overall Program costs. Table 6 below shows the results of that analysis.

Based on that analysis, a commensurate reduction in the fees for certain C.3-compliant parcels is warranted. However, C.3 compliance brings with it some additional administrative burdens to verify ongoing compliance. While this burden is relatively minor, for single-family parcels where the annual fee is also relatively small, the administrative burden negates the LID benefits to the program. Therefore, single-family residential parcels do not qualify for the reduced fee. Conversely, C.3 compliance for condominiums is typically accomplished on a collective basis, so the minor administrative burden is spread across many parcels 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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making it insignificant. Therefore, a 25% reduction in fees will be applied to all C.3-compliant parcels that are either non-single-family or condominium.

TABLE 6- Low IMPACT DEVELOPMENT RATE ADJUSTMENT ANALYSIS ... :r ...

GI 0 ·- 0
I
I - Impact L:vel
C C "D •-,
MRP Provision ~ ~ ~ i Notes --- ------------ ---- - - --------------- Operations & Maintenance
Program Management
C.2 Municipal Operations
Clean Water Program
C.1
C,2
C.3
C.4
C.5
C.6
C.7
C.8
C.9
C.10
C.11
C.12
C.13
C,17
Permit Compliance
Municipal Operations
New Development and
Redevelopment
Industrial and Commercial
Site Controls
Illicit Discharge Detection and
Elimination
Construction Site Control
Public Information and
Outreach
Water Quality Monitoring
Pesticides Toxicity Control
Trash Load Reduction
Mercury Controls
PCBs Controls
Copper Controls
Annual Reports
Does not lessen Program Management
burden
Reduces storm flows in minor storm,
reducing burden on operations
Is a small part of overall Program
Compliance
Does not lessen Municipal Operations
compliance burden
Is all about C.3.

Provides controls
Does not lessen Illicit Discharge burden
Does not lessen Construction Controls
burden
Aids in educating property owners
Does not lessen WQ Monitoring burden
Capture & infiltration may filter out
pesticides
Many C.3 devices are considered a
partial trash capture device
Capture & infiltration may filter out
pollutants
Capture & infiltration may filter out
pollutants
Capture & infiltration may filter out
pollutants
Does not lessen reporting requirements

STORMWATER FEE CALCULATION

CITY OF CUPERTINO
The primary metric in this analysis is the SFE as illustrated above. To arrive at the fee amount for the various land use categories, the total City-wide SFEs must be divided into the total revenue requirement to arrive at the rate per SFE. Using the analysis above, that calculation is represented by the following formula:
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CITY OF CUPERTINO
SFERat e = Annua l Revenue Requirement
Total SFEs
Or, using numbers from the analysis:

SFERat e $1,097,787
24,713 .810
= $44.42 per SFE

This SFE rate amount is then multiplied by the SFEs per parcel or acre for the various land use categories to arrive at the Stormwater Fee Rate Schedule shown in Table 7 below.

TABLE 7 - PROPOSED 2019 CLEAN WATER & STORM PROTECTION FEE SCHEDULE Single-Family Residential *
-S1i11all (under 0.13 acre) 0.824 $ 36.58 per parcel -Medium {0.13 to 0.22 acre) 1.000 . $ 44.42 per parcel -Large (0.23 ta 0.40 acre) 1.251 $ 55.58 per parcel -Extra Large (over 0.40 acre) 2.396 $ 106.42 per parcel -Condominium 1 (1 story) 0.824 $ 36.58 per parcel -Condominium 2+ {2+ stories) 0.270 $ 11.99 per parcel Non-Single-Family Residential **
Multi -Family Residential 0.695 $ 30.88 per 0.1 acre
Commercial/ Retail/ Industrial 0.909 $ 40.38 per 0.1 acre Office 0.695 $ 30.88 per 0.1 acre
Church/ Institutional 0.588 $ 26.13 per 0.1 acre
School (w/playfield) 0.428 $ 19.00 per 0.1 acre
Park 0.160 $ 7.13 per 0.1 acre
Vacant (developed) 0.053 $ 2.38 per 0.1 acre
Open Space/ Agricultural no charge
Low Impact Development Adjustment ••• 25% Fee Reduction * SFR category also includes duplex, triplex and four -plex units. ** Non-SFR parcel size is calculated to the tenth of an acre or portion thereof . *** Low Impact Development Adjustment only applies to condominium and non-single-family properties.
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ANNUAL COST INDEXING
The 2019 Clean Water and Storm Protection Fee is subject to an annual adjustment tied to the Consumer Price lndex-U for the San Jose Area as of December of each succeeding year (the "CPI"), with a maximum annual adjustment not to exceed 3%. Any change in the CPI in excess of 3% shall be cumulatively reserved as the "Unused CPI" and shall be used to increase the maximum authorized rate in years in which the CPI is less than 3%. The maximum authorized rate is equal to the maximum rate in the first fiscal year the Fee was approved adjusted annually by the lower of either 3% or the change in the CPI plus any Unused CPI as described above.

MANAGEMENT AND USE OF 5TORMWATER FUNDS

CITY OF CUPERTINO
The City shall deposit into a separate account(s) all 2019 Clean Water and Storm Protection Fee revenues collected and shall appropriate and expend such funds only for the purposes outlined by this Report. The specific assumptions utilized in this Report, the specific programs and projects listed, and the division of revenues and expenses between the two primary categories (Clean Water and O&M) are used as a reasonable model of future revenue needs and are not intended to be binding on future use of funds.

The specific assumptions utilized in this Report, the specific programs or projects listed, and the division of revenues and expenses between the two primary categories (Clean Water and O&M) are used as a reasonable model of future revenue needs and are not intended to be binding on future use of funds.

Dated: February 20, 2019
Engineer of Work
By fe~
Jerry Bradshaw, License No. C48845
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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APPENDICES

APPENDIX A- REGULATORY ASSESSMENT & COST AND REVENUE ANALYSIS

CITY OF CUPERTINO
On the following pages is a regulatory assessment and cost and revenue analyses, drawn from a technical memorandum prepared for this project by Larry Walker Associates. The information contained in this Appendix forms a basis for the fee calculations in the main body of this Fee Report and is referenced as appropriate.
2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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Memorandum
DATE :

TO :

SUBJECT :

Cc:

Februaiy 20, 2019
Susan Barnes, SCI Consulting Group
Fee Study Repmt : Regulatory Assessment
& Cost and Revenue Analysis
Jerry Bradshaw , SCI Consulting Group
Cheri Donnelly , City of Cupertino
Jo Anne Johnson , City of Cupertino
Karen Ashby , Lany Walker Associates

1. INTRODUCTION

L A R R Y
WALKER
IA

ASSOCIATES
Rachel Warren
Airy Krich-Brinton
1480 Drew Ave., Suite 100
Davis, CA 95618
530.753.6400
[email protected]
[email protected]
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In the early 1990s, in response to the federal Clean Water Act (CWA) amendment of 1987 to address urban stormwater runoff pollution from Municipal Separate Stoim Sewer Systems ( (MS4s) and the pending federal National Pollutant Discharge Elimination System (NPDES) regulations that would implement the amendment , the San Francisco Bay Regional Water Quality Control Board (Regional Water Board) issued municipal stormwater Phase I NPDES permits to the countywide urban areas of Santa Clara , Alameda , San Mateo , and Contra Costa .

These countywide areas had individual pe1mits until 2009, when the Regional Water Board issued a Municipal Regional Stormwater Permit (MRP) . 1 The MRP was subsequently reissued in 2015 .2
The current MRP regulates stonnwater discharges from municipalities in Alameda , Contra Costa , San Mateo, and Santa Clara counties (including the City of Cupe1tino ), as well as the cities of Fairfield , Suisun City, and Vallejo in Solano County . The MRP includes requirements for the following components, including an increased focus on requirements for control of specific pollutants to address some of the more persistent water quality issues:
• C .1 Discharge Prohibitions and Receiving Water Limitations • C .2 Municipal Operations
• C .3 New Development and Redevelopment
• C.4 Industrial and Commercial Site Controls
• C .5 Illicit Discharge and Elimination
• C .6 Construc tion Site Controls
• C . 7 Public Infmmation and Outreach
1 Order R2-2009 -0074 as amended by Order No. R2-201 l -0083 2 Order No. R2-2015-0049
Appendi x A 2019 Clean Water and Storm Protection Fee Report Page 16 • C.8 Water Quality Monitoring
• C.9 Pesticides Toxicity Controls
• C. l O Trash Reduction
• C.11 Mercury Controls
• C.12 PCBs Controls
• C.13 Copper Controls
• C.14 Bacterial Controls
• C.15 Exempted and Conditionally Exempted Discharges
• C.16 Discharges to Areas of Special Biological Significance • C.17 Annual Reports
The City of Cupe1iino (City) is committed to water quality and watershed stewardship by continuing to build a safer, healthier, and more aesthetically pleasing community tlu-ough programs, initiatives , and ordinances that align with MRP activities . Over the years, the range of actions taken by the City has greatly increased in response to evolving regulatory requirements and community needs .

As a paii of the sto1mwater program initiative, the City leverages its resources by paiiicipating in a comprehensive eff01i in the Santa Clara Valley , the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP), which was initiated in 1990 and is organized, coordinated, and implemented in accordance with a memorandum of agreement (MO.A) between its 15 member agencies . The Santa Clara Valley collaboration is further supplemented by paiiicipation in the regional Bay Area Stonnwater Management Agencies Association (BA.SM.AA). In addition to directly benefitting member agencies with access to better science, the regional collaborations enhance technical approaches and ensure consistent messaging to the public and community decision makers . Implemented when the first st01mwater pe1mits were issued to Santa Clara Valley pe1mittees, the collaboration has effectively assisted member agencies in maintaining stonnwater programs that achieve federally and State-mandated water quality regulations .

The purpose of this Technical Memorandum is to develop a planning-level cost estimate for the full costs of implementing the stormwater program, which may be used to supp01i a funding measure for the City's stonn drain operations and maintenance and Clean Water Program needs .

The assessment includes a summary of known revenues and estimates of prior year, current year, and future implementation costs of the stormwater program. 3 This information may also be used in the future to budget program funding and/or to identify other potential funding sources . This memorandum is organized as follows :

1. Introduction

2. Approach

3. Results and Discussion
3 .1. Overall Summary

3.2. City Expenditures
3 Prior year is fiscal year 2017-2018; current is fiscal year 2018-2019; future is fiscal years 2019-2020 through 2023-2024 .

Appendix A 2019 Clean Water and Storm Protection Fee Report Page 17

2. APPROACH
To underst and the funding needs for the stom1water program, the "hue" costs for full implementation of the :MRP requirem ents must be understood . However , tracking and compiling staff time and resources across multiple departments can be a complex and time-consuming process . To identify the implementation costs for the City as comprehensively and efficiently as possible , an interview was conducted with key City staff, which included structured questions and discussions regarding the agency ' s staffing , implementation approach for the range of :MRP requirements , prior and cmTent stonnwater program revenues , and the estimated costs for program implementation . The revenues and expenditures were compiled and assigned to two main categories , which reflects how the City generally allocates funds to implement its day-to­ day st01mwater-related operations :
• Operations and Maintenance (O&M) : This includes ongoing and routine activities supp01ting the O&M of the stormwater infrastmcture, including inspection and cleaning of sto1m drain inlets , st01m drain lines, and trash capture devices , as well as sti·eet sweeping management (primarily :MRP provision C.2) .
• Clean Water Program : Tl?is includes ongoing and routine activities that are directly related to water quality improvement , such as implementation of the MRP requirements , paiticipation in the SCVURPPP , clean creek programs , community outreach , business and construction site inspections , street sweeping , and implementation of the City 's trash reduction plan (all MRP provisions , with the exception of green infrastructure projects).

3. RESULTS AND DISCUSSION
A summaiy and discussion of total City costs for implementation of the MRP during the prior year (2017-2018), current year (2018-2019), and future years (2019-2020 through 2023 -2024), is provided within this section . The cost inf01mation is presented in two ways: a summary of City expenditures by cost category (O&M and Clean Water Program) (3.1. Overall Summary) and a detailed breakdown of expenditures (3.2. City Expenditures) as they relate to the two cost categories . The approach and assumptions used to develop each of these summaries are described below . All costs are in present-value dollars .

3.1. Overall Summary
Costs for the full implementation of the st01mwater program were estimated based on budgetary and supplemental information provided by the City. The approach and assumptions used were as follows :
• The revenue and expenditures for 2017-2018 and 2018-2019 were based on the City 's 2018 and 2019 Adopted Budgets.
• FJJture revenue was assumed to be the same as that for the current fiscal year, 2018-2019 , without the transfers in from the General Fund (i.e., $379,000) (Table 1). • The category-specific expenditure totals in Table 2 were taken directly from the detailed City Expenditures for 2017 -2018 through 2023-2024 (see Section 3.2, Table 4). (
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• Future cost projections were based on the available costs from 2017-2018 , information obtained during City staff interviews , and a percentile multiplier (3% for personnel costs and non-personnel costs and 3.57% for paiticipation in SCVURPPP) . Additional details ( Appendi x A 2019 Clean Water and Storm Protection Fee Report Page 18 regarding assumptions for future, potential cost increases related to specific MRP provisions are provided in 3.2. City Expenditures .

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Appendix A 2019 Clean Water and Storm Protection Fee Report Page 20 The estimated revenue for 2017-2018 through 2023-2024 is shown in Table 1 and Figure 1.

Table 1. Overall Summary of Revenue
; - - ·- . , -•-· -· ~· •-•----,,--~-· ..... ·-
PriorCaJ CurrentCaJ Future - Projected
Revenue Category 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 O&M Fund 100-85
Total Fund Revenue $1,700 $0 $0 $0 $0 $0 $0
Transfer in (General Fund) $448 ,250 $476,503 $0 $0 $0 $0 $0 Clean Water Program Fund 230-81
Fines and forfeitures $6,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 Charges for services $380,000 $370,000 $370,000 $370,000 $370,000 $370,000 $370,000 Transfer in (General Fund) $375,720 $341,785 $0 $0 $0 $0 $0 Total Revenue $1,211,670 $1,197,288 $379,000 $379,000 $379,000 $379,000 $379,000 [a] Values are from the City's Fiscal Year 2018-2019 Adopted Budget.4 (2018 Adopted Budget and 2019 Adopted Budget for both Non-Point Source (Fund 230-81) (p. 407-409) and Storm Drain Maintenance (Fund 100-85) (p. 434-435)).
4 https://www .cupertin o.o rg/home/showdoc um ent?id= ? 1776 Appendix A 2019 Clean Water and Storm Protection Fee Report Page 21 The total estimated expenditures for 2017-2018 and 2018-2019 (based on the 2018 and 2019 Adopted Budgets ) and the total estimated expenditures for the next five years, organized by cost category, are shown in Table 2 and Figure 1.

Table 2. Overall Summary of Total Estimated Costs for MRP, by Cost Category arid Fiscal Year . , .

Priorl3 l CurrentlaJ Future - Projected
Cost Category 2017-2018 2018~2019 2019-2020 , 2020-2021 2021-2022 2022-2023 . 2023~2024 O&M $449,950 $476,503 $552,000 $569,000 $586,000 $603,000 Fund 100-85 $622,000 Clean Water Program $761,720 $720,785 $891,000 $918,000 $964,000 $994,000 $1,025,000 Fund 230-81 Total Expenses $1,211,670 $1,197,288 $1,443,000 $1,487,000 $1,550,000 $1,598,000 $1,646,000 [a) Values are from the City's Fiscal Year 2018-2019 Adopted Budget5 (2018 Adopted Budget and 2019 Adopted Budget for both Non-Point Source (Fund 230-81) (p. 407-409) and Storm Drain Maintenance (Fund 100-85) (p. 434-435)).
5 https://www .cupertino.org /home /showdocume nt?id=? 1776 ,i1- 1dixA 2019 Clean Water and St..,......_0 rotection Fee Report Page $1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
17-18 18-19 19-20 20-21 21-22 22-23 23-24
- o&M, Fund 100-85 - clean Water Program, Fund 230-81 - Total Revenue Figure 1. Overall Summary of Total Estimated Costs and Revenue for MRP, by Cost Category and Fiscal Year

3.1.1. Overall Summary: Discussion
Below are a few key observations regarding the overall estimated expenditures:
• Dwing the observed time period , the estimated cost of stormwater program implementation will exceed the estimated, dedicated revenue (Figure 1). • The Clean Water Program costs account for the larger portion (62%, as a seven-year average) of the City ' s stormwater-related costs .
• Overall , it is anticipated that the City ' s stormwater program will spend similar percentages on O&M and the Clean Water Program annually . Additional , one-time cost increases are included for the Clean Water Program in FY 2021-2022 , based on potential increases in MRP requirements (as described in 3.2. City Expenditures) . • Based on the information available and the assumptions made , the total cost of the st01mwater program is expected to increase by 36% between 2017-2018 and 2023 -2024 (Figure 1). However, it should be noted that the cost increase could be greater depending upon the requirements of the final, renewed MRP .
o Between 2018-2019 and 2019-2020 , a 21 % increase in the total cost of the sto1mwater program is anticipated to occur. This increase is based on a thorough evaluation of the City personnel and non-personnel costs required to implement the current MRP provisions and provide sto1m protection (as described in 3.2. City Expenditures) .

Appendi x A 2019 Clean Water and Storm Protection Fee Report Page 23

3.2. City Expenditures
Costs for the implementation of the stonnwater program for the MRP were estimated based on budgetmy and supplemental information provided by the City . When determining which costs to include, the City considered , at a minimum, the following:
• Labor;
• Materials;
• Contract Services;
• Contingencies; and
• Cost Allocation.

The following key pieces of information were provided by the City :
• "Fund 230-81 - Environmental Programs FYI 7 _ 18 Expenditure (Actual) " spreadsheet, which details the expenditures for the Clean Water Program by expense type for FY 2017-2018 .
• "Fund 230-81 - Environmental Programs FYI 7 _ 18 Revenue (Actual)" spreadsheet , which details the revenues for the Clean Water Program by expense type for FY 2017 - 2018 .
• "Fund 230-81 - Environmental Programs FY18_ 19 Expenditure (Budget)" spreadsheet , which details the amended budget and expenditures to date for the Clean Water Program by expense type for FY 2018-2019 .
• "Fund 230-81 - Environmental Programs FY18_19 Revenue (Budget)" spreadsheet, which details the amended budget and revenues to date for the Clean Water Program by expense type for FY 2018-2019 .
• " 100-85-818 FYI 7 _18 Expense (actual)" spreadsheet , which details the expenditures for O&M by expense type for FY 2017-2018 .
• "100-85-818 FYI 8 _ 19 Expense (Budget) " spreadsheet , which details the amended budget and expenses to date for O&M by expense type for FY 2018-2019 . • Hard copy tables describing the staff positions under "230-81-802 Env Mgmt Cln Crk Strm Drain- Environmental Programs-Non Point Source" and "FTE- General Fund ." • Hard copy "Resolution 18-039, Schedule B -Engineering " describing the various fees effective July 1, 2018.
• The City ' s Fiscal Year 2018-2019 Adopted Budget 6 detailing the revenue, expenditure , and General Fund Costs for the 2018 adopted Budget and 2019 Adopted Budget for both Non-Point Source (Fund 230-81) (p. 407-409) and Storm Drain Maintenance (Fund 100- 85) (p. 434-435).
6 https ://www .cupertino.org /home/showdocument ? id=2 l 776 Appendix A 2019 Clean Water and Storm Protection Fee Report Page 24 (
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The approach and assumptions used were as follows:
• All costs were identified as O&M Costs or Clean Water Program Costs (Table 4). • The City's "Cost Allocation" for each fund, which includes overhead costs such as Human Resources, Finance, and Information Technology Supp011, are divided as follows:
o The full Cost Allocation amount for O&M (Fund 100-85) is accounted for under Provision C.2.
o The Cost Allocation amount for Clean Water Program (Fund 230-81) is allocated prop01tionally to specific MRP provisions based on the identified labor costs. • The City's contribution to SCVURPPP was determined as follows:
o Based on the Memorandum of Agreement, the City's annual, prop01tional cost share is 2.46% of the annual SCVURPPP Program Budget.
o The City's payment history (July 2008 through July 2018) was used to determine the average annual increase in the City's contribution (3.57%). This multiplier was used to estimate contributions for future years.
o · The total SCVURPP contribution was distributed equally amongst the MRP provisions (C.2 through C.13).
• Future costs were projected as follows :
o Future projections were based on the available costs from 2017-2018 and a percentile multiplier (3% for personnel costs and non-personnel costs and 3.57% for paiticipation in SCVURPPP). This is based on preliminary feedback from Regional Water Board staff that the MRP should not change significantly . However, if significant changes are made to the MRP during the renewal process, then the estimates should be modified accordingly .
o Implementation costs for specific MRP provisions are anticipated to require an additional increase dming the first year of the next MRP te1m.7 These increases were applied as additive percent increases only for FY 2021-2022. These are preliminary estimates, and the actual cost increases are to be determined upon adoption of the new MRP. These provisions, the anticipated , potential cost increase for each, and the rationale for the potential increase are as follows:
- C.3 New Development and Redevelopment (5%). This estimated increase is based on potential expansion of the C.3 requirements to small projects and single-family residences, which would necessitate updating the application materials and.guidance, including the C.3 Technical Guidance . In addition, there will be increased costs associated with enhanced O&M requirements for green infrastructure projects . This does not include costs for implementation/installation of green infrastructure projects . 7 The current MRP expires on December 31, 2020. If the MRP is reissued on schedule , the new MRP will begin to be implemented on January 1, 2021. These increases have been applied to the anticipated , first full year of implementation of the new MRP, beginning July 1, 2021.

Appendix A 2019 Clean Water and Storm Protection Fee Report Page 25 - C.10 Trash Load Reduction (7.5%). This estimated increase is based on anticipated, new monitoring/assessment costs and implementation requirements, including the assessment of private catchments . In addition, by 2022, the City will need to achieve 100% reduction of the trash load from its base trash generation level; based on the 2017-2018 Annual Rep01i, the City is cmTently achieving 93% reduction .
- C.11 Mercury Controls and C.12 Polychlorinated Biphenyls (PCBs) Controls (7.5%). This estimated increase is based on implementation of new programs for building demolition to address mercmy and PCBs. - C.17 Annual Reports (5%). This estimated increase is based on anticipated changes in rep01iing requirements and the potential for some increased costs related to electronic rep01iing (via EPA) and cost rep01iing (via the state). o No incremental projections were made for expenses described as "one-time costs ." The total expenditmes for 2017-2018 (prior year) and 2018-2019 (current year), based on the adopted budgets for those years, and the total, estimated expenditures for the next five years (future), organized by cost category (fund) and MRP provision, are shown in Table 4.8 Only total fund values are included for 2017-2018 and 2018-2019. 8 The total costs for each cost category (fund) are also summarized in Table 2.

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Table 4. City Estimated Expenditures for MRP, by Cost. Category (Fund) and Fiscal Year ~ C
·- - -- .

PriorlaJ CurrentlaJ Future - P rojectedlbJ
Fund MRP Provision 2017-2018 2018-2019 2019-2020 2020-202 1 2021-2022 2022-2023 2023-2024 I Fund 100-85, Operat ions & Maintenance I
Program Management $59,000 $61 ,000 $63,000 $65,000 $67,000 C.2 Municipal Operations $493,000 $508,000 $523,000 $539,000 $555,000 I Fund Total $449,950 $476 ,503 $552,000 $569,000 $586,000 $603,000 $622, 000 I Fund 230-81 , Clean Water Program
C.1 Permit Compliance $23,000 $24,000 $25,000 $25,000 '$26,000 C.2 Municipal Operations $148,000 $153,000 $157,000 $162,000 $167,000 C.3 New Development and Redevelopment $70,000 $72,000 $77,000 $80,000 $82,000 C.4 Industrial and Commercial Site Controls $83,000 $86,000 $88,000 $91 ,000 $94,000 C.5 Illicit Discharge Detection and Elimination $129,000 $133,000 $137,000 $141,000 $145,000 C.6 Construction Site Control $43,000 $44,000 $46,000 $47,000 $49,000 C.7 Public Information and Outreach $118,000 $122,000 $126,000 $129,000 $133,000 C.8 Water Quality Monitoring $11,000 $11,000 $12,000 $12,000 $13,000 C.9 Pesticides Toxicity Control $21,000 $21,000 $22,000 $23,000 $23,000 C.10 Trash Load Reduction $130,000 $134,000 $148,000 $152,000 $157,000 C.11 Mercury Controls $24,000 $25,000 $27,000 $27,000 $28,000 C.12 PCBs Controls $51,000 $52,000 $57,000 $59,000 $61,000 C.13 Copper Controls $11,000 $11,000 $12,000 $12,000 $13,000 C.17 Annual Reports $29,000 $30,000 $33,000 $34,000 $35,000 Fund Total $761,720 $720,785 $891,000 $918,000 $964,000 $994,000 $1,025,000 Total $1,211,670 $1,197,288 $1,443,000 $1,487,000 $1 ,550,000 $1,598 ,000 $1,646,000 [a] Values are from the City's Fiscal Year 2018-2019 Adopted Budget9 (2018 Adopted Budget and 2019 Adopted Budget for both Non-Point Source (Fund 230-81) (p. 407-409) and Storm Drain Maintenance (Fund 100-85) (p. 434-435)) .
[b] Each value for the fiscal years under the "Future - Projected" column is considered to be estimated and has been rounded to the nearest $1,000; thus, summing individual values may result in a slightly different total than those shown in the "Fund Total" and "Total" rows. 9 https://www .cupe1iino.org/home/showdocument ?id=2 l 776 Appendix A 2019 Clean Water and Storm Protection Fee Report Page 27 --------------------------------------------------------- PAGE 28
APPENDIX 8 -PERCENT AGE OF IMPERVIOUS AREA ESTIMATIONS

CITY OF CUPERTINO
Section 2.2.3 of the Storm Drain Master Plan (SDMP, 2018) provided information about the percentage of impermeable area (%IA) for various land use types. Table 8 below summarizes that information.

TABLE 8- PERCENT OF IMPERVIOUS AREA FROM STORM DRAIN MASTER PLAN ~ dU_se ________ %_o_lA_
Commercial/Industrial 85
Very Low Density Res. 35
Low Density Res. 55
Low-Medium Density Res 70
Medium Density Res 80
High Density Res. 75
Medium-High Density Res. 70
Open Water 100
Parks/Open Space 15
Public (Schools, Gov't, etc.) 45
Quasi-Public/Institutional 65
Transportation/Right of Way 90
Undeveloped 0
Several of the SDMP land use types were the same as the rate categories for this Report.

However, some of the rate categories in this Report did not precisely match the land uses in the SDMP, so adjustments were made. Table 9 below shows the SDMP categories on the left side and the Fee Report rate categories on the right side. The ones in green matched sufficiently to use them outright. The ones in beige required some adjustments, which are explained below the Table.
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TABLE 9- PERCENTAGE OF IMPERVIOUS SURFACE FROM STORM DRAIN MASTER PLAN [ ______ Storm Drain Master Plan~__ Fee Report _________ Low-Medium Density Res 70 70 Srmall SFR
Low !Density Res. 55 55 Mediu lilil1SFR
-45 Large SFR
Very L.ow Density Res. 35 35 Very !!_arge SFR
Quasi -Public/Institutional 65 65 Multi-Farm
C01ililmercial/lndustriai 85 85 [ 0mm/lndust
~l!l a,si1-Pwibllic/ lnsti ,t 1:1 t ional 65, 65 0ffice Public (Schools, Gov't, etc .) 45 55 Institutional
40 Schools
Parks/0,:,en Space 15 - 15 Parks
Undeveloped 0 5 Vacant
0 Open Space
EXPLANATION OF ADJUSTMENTS TO %IA
• Large Single-Family Residential- This category falls between the Medium and Very Large categories without a corresponding land use in the SDMP. That gap was split evenly to arrive at a %IA of 45%. This created an array of %IA for the residential rate categories that aligns well with other communities and associated fee reports. • Institutional & Schools - The SDMP grouped schools with other governmental uses, however the Fee Report distinguishes between governmental/institutional uses and schools (with play field areas). The SDMP blended rate of 45% was used as a basis to split the Fee Report categories to arrive at %IA values of 55% and 40%, respectively. Again, these values align relatively well with other communities and associated fee reports.
• Vacant & Open Space - The SDMP assigned a value of 0% for the undeveloped land use while the Fee Report distinguishes between open space/natural terrain and vacant land that has been developed (but not improved). It is assumed that the SDMP blended the two categories, which was split for the Fee Report categories to arrive at %IA values of 5% and 0%, respectively. Further justification for the %IA of zero for open space land is provided in the body of the Fee Report. Again, these values align relatively well with other communities and associated fee reports. 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
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APPENDIX C- STORMWATER RATES FROM OTHER MUNICIPALITIES

CITY OF CUPERTINO
There have been relatively few voter-approved local revenue measures in the past 15 years to support stormwater programs in California. A summary of those efforts plus some others in process or being studied is shown in Table 10 on the following page, in roughly chronological order. Amounts are annualized and are for single family residences or the equivalent.
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TABLE 10- RECENT STORM DRAIN BALLOT MEASURES
l . . . Annual Munic1pahty Status R Year Mechanism ate - - - - San Clemente Successful $ 60.15 2002 Balloted Property -Related Fee Carmel Unsuccessful $ 38.00 2003 Balloted Property-Related Fee Palo Alto Unsuccessful $ 57.00 2003 Balloted Property -Related Fee Los Angeles Successful $ 28.00 2004 Special Tax - G. 0 . Bond Palo Alto Successful $ 120.00 2005 Balloted Property -Related Fee Rancho Palos Verde
Successful , then recalled and
$ 200.00 2005, 2007 Balloted Property-Related Fee reduced Non-Balloted Property-Related
Encinitas Unsuccessful $ 60.00 2006
Fee adopted in 2004,
challenged , balloted and failed
in 2006
Successful, Overturned by
Ross Vall ey Court of Appeals, Decertified $ 125.00 2006 Balloted Property-Related Fee by Supreme Court
Santa Monica Successful $ 87.00 2006 Special Tax
San Clemente Successfully renewed $ 60.15 2007 Balloted Property-Related Fee Solana Beach
Non-Balloted , Threatened by
$ 21.84 2007 Non-Balloted & Balloted
lawsuit, Balloted, Successful Property-Related Fee
Woodland Unsuccessful $ 60.00 2007 Balloted Property -Related Fee Del Mar Successful $ 163.38 2008 Balloted Property-Related Fee Hawthorne Unsuccessful $ 30.00 2008 Balloted Property-Related Fee Santa Cruz Successful $ 28.00 2008 Special Tax
Burlingame Successful $ 150.00 2009 Balloted Property-Related Fee Santa Clarita Successful $ 21.00 2009 Balloted Property -Related Fee Sto«kto n Unsuccessful $ 34.56 2009 Balloted Property-Related Fee County of Contra Costa Unsuccessful $ 22.00 2012 Balloted Property-Related Fee Santa Clara Valley Water
Successful $ 56.00 2012 Special Tax !District
City of Berke ley Successful varies 2012 Measure M- GO Bond County of LA Deferred $ 54.00 2012 NA
San Clemente Successful $ 74.76 2013 Balloted Property-Related Fee ,Vall ejo San & Flood Successful $ 23.00 2015 Balloted Property-Re lated Fee Culver City Successful $ 99.00 2016 Special Tax
Palo Alto Successful $ 163.80 2017 Balloted Property-Related Fee Reauthorization of 2005 Fee
Town of Moraga Unsuccessful $ 120.38 2018 Balloted Property-Related Fee City of Berkeley Successful $ 42.89 2018 Balloted Property-Related Fee Los Angeles Flood Successful $ 83.00 2018 Special Tax
Control
City of Los Altos In Process NA NA Balloted Property-Relate d Fee City of Al ameda Studying NA NA Balloted Property-Related Fee Count y of San Joaquin Studying NA NA Balloted Property-Related Fee City of Sacramento Studying NA NA Balloted Property-Related Fee City of Salinas Studying NA NA NA
City of Santa Clara Studying NA NA Balloted Property-Related Fee County of San Mateo Studying NA NA NA
County of El Dorado Studying NA NA NA
County of Orange Studying NA NA NA
County of Ventura Studying NA NA NA

CITY OF CUPERTINO
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CITY OF CUPERTINO

In addition to the agencies listed above in Table 10 that have gone to the ballot for new or increased Stormwater Fees, there are several other municipalities throughout the State that have existing Stormwater Fees in place. Some of these rates are summarized in Table 11 below. Amounts are annualized and are for single family residences or the equivalent.

The City's proposed $44.42 SFR rate is well within the range of stormwater rates adopted by other municipalities.

TABLE 11 - SAMPLE OF RATES FROM OTHER MUNICIPALITIES
• • 1• Annual T f F Mumc1pa 1ty ype o ee Rate
--- ---~ -~ ~--- -- - -- -
Bakersfield $ 200.04 Property-Related Fee
Culver City $ 99.00 Special Tax
Davis $ 84.94 Property-Related Fee
Elk Grove $ 70.08 Property-Related Fee
$ 190.20 Property-Related Fee
Hayward $ 28.56 Property-Related Fee
Los Angeles $ 27.00 Special tax
Palo Alto $ 136.80 Property-Related Fee
Redding $ 15.84 Property-Related Fee
Sacramento (City) $ 135.72 Property-Related Fee
Sacramento (County) $ 70.08 Property-Related Fee
San Bruno $ 46.16 Property-Related Fee
San Clemente $ 60.24 Property-Related Fee
San Jose $ 91.68 Property-Related Fee
Santa Cruz $ 109.08 Special Tax
Stockton* $ 221.37 Property-Related Fee
Vallejo Sanitation and Flood
$ 23.64 Property-Related Fee Control District
West Sacramento $ 144.11 Property-Related Fee
Woodland $ 5.76 Property-Related Fee
* This is the ca I cu I ated average rate for the City of Stockton, which has 15 rate zones with rates ranging from $3.54 to $651.68 per year. 2019 CLEAN WATER AND STORM PROTECTION FEE REPORT
FEBRUARY 2019
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