EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: September 20, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Patrick Heisinger, Interim City Manager
SUBJECT: Special Presentation from the East Palo Alto Sanitary District on Financing Options to Fund Infrastructure Improvements
Recommendation
It is recommended that the City Council allow representatives from the East Palo Alto Sanitary District (EPASD) to give a presentation regarding financing options for infrastructure improvements.
Background
On July 26, 2022, the City Council directed staff to take the necessary actions to draft the application to the San Mateo Local Agency Formation Commission (SMLAFCo) and to return to the City Council in the Fall with a draft application and resolution, If adopted, this action would initiate the Subsidiary District Process.
On July 27, 2022, the Director of Public Works sent a request to EPASD for several documents that would be necessary for the City to complete and submit the SMLAFCo application. Although EPASD was able to provide the City with some information, several key items were not received and therefore staff moved forward using alternative methods. For example, City staff requested GIS shapefiles, an EPASD 5-year Capital Improvement Plan (CIP), as well as the EPASD Hydraulic Model. EPASD was unable to provide these items for various reasons. Although the City was unable to acquire some of the requested information, the City’s consultant, Freyer and Laureta, who once served as consultant to EPASD, felt that enough information about the EPASD system had been shared to facilitate their efforts to draft the necessary documents for the SMLAFCo application.
On August 31, 2022, Betsy Yanez, the EPASD Board President, sent a letter to Mayor Abrica requesting a meeting between members of the EPASD Board, staff, and consultants, along with the \Mayor, Vice Mayor, and City staff.
On September 7, 2022, Mayor Abrica sent President Yanez a letter in response, . suggesting that a transparent, engaging process would provide better outcomes than meeting behind closed doors. As such, he invited EPASD and their consultants to present to the City Council, community, and other stakeholders at the City Council meeting on September 20, 2022.
EPASD agreed to attend the meeting on September 20, 2022.
Analysis
EPASD produced various documents in preparation for the September 20, 2022, City Council meeting. Without certainty of the EPASD preference for sharing the information presented in those documents with the City Council, City staff attached all of them.
Next Steps for the City
In conformance with City Council direction, staff intends to return to the City Council in October with a draft application and resolution, that if adopted, would initiate the Subsidiary District Process.
Fiscal Impact
None.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
A. Rate Study
B. EPASD Presentation
C. Consultant Presentation
D. Memorandum from EPASD