CITY COUNCIL STAFF REPORT
DATE: March 11, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF THE FISCAL YEAR 2026/2027 CSA 152 SPECIAL
ASSESSMENT RATE
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
In accordance with an administrative services agreement with Riverside County for administration of the County Service Area 152 (“CSA 152”) for the National Pollutant Discharge Elimination System (“NPDES”), Riverside County requires the City to establish its CSA 152 budget and confirm the levy of special assessment for Fiscal Year 2026/2027 so that Riverside County can assemble and coordinate with the County’s levy of special assessments. This item approves the CSA 152 special assessment rate of $9.50 per single family residential property, which remains unchanged from prior years’ assessments.
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, MAKING FINDINGS AND REAFFIRMING THE ESTABLISHMENT AND SETTING OF RATES FOR COUNTY SERVICE AREA 152 FOR FISCAL YEAR 2026/2027 TO FUND THE CITY’S NATIONAL POLLUTION DISCHARGE
ELIMINATION SYSTEM (NPDES) PERMIT IN ORDER TO OPERATE AND MAINTAIN THE CITY’S DRAINAGE AND FLOOD CONTROL SYSTEMS.”
BACKGROUND:
The NPDES Program is a federally mandated program to control non-point sources of runoff pollution. In 1972, the Federal Water Pollution Control Act (“Clean Water Act” or “CWA”) was amended to provide that discharge of pollutants to waters of the United States from any point source is effectively prohibited, unless the discharge is in compliance with a NPDES Permit.
In 1982, the Clean Water Act was amended to establish a framework for regulating municipal and industrial stormwater discharges under the NPDES Program.
City Council Staff Report
March 11, 2026 -- Page 2
Approval of FY 2026/2027 CSA 152 Special Assessment Rate In 1997, the City adopted Chapter 8.70 (Stormwater Management and Discharge Controls) of the Municipal Code which incorporates regulations of the NPDES Program.
Pollutants in urban runoff are carried through what the NPDES permit calls a Municipal Separate Storm Sewer System (“MS4”). The MS4 includes the entire system of streets, curb gutters, catch basins, storm drains, channels, etc., that convey stormwater runoff (rain) from one location to the various waters of the United States, including Tahquitz Creek, Palm Canyon Wash, and Whitewater River.
The main goal of the NPDES permit is to prevent runoff coming from public or private properties from polluting the waters of the United States. The permit allows the City to identify various locations of pollution, to review existing programs designed to protect against water pollution, to develop new programs to meet federal requirements, and to provide programs to educate the public on the problems associated with polluted stormwater runoff.
The permit also allows the City to regulate the discharge of pollutants from development projects, existing industrial facilities, restaurants, and commercial sites. Therefore, the City is required to inspect these sites with a frequency that is based on various factors.
This includes the type of business, the activities that occur at the site, the types of potential pollutants present, past compliance history, and proximity to waters of the United States. Businesses are assigned a high, medium or low inspection priority, based on the Standard Industrial Code (SIC). Businesses that are classified as high priority must be inspected annually, medium priority businesses are inspected once every two years, and low priority businesses are inspected once every five years.
Examples of polluted stormwater runoff that are to be prevented through the City’s NPDES inspection program are shown in the following photos:
Photo 1: Erosion and sediment
pollution caused by an active
construction site.
Photo 2: Leaking fluids from stored
equipment.
City Council Staff Report
March 11, 2026 -- Page 3
Approval of FY 2026/2027 CSA 152 Special Assessment Rate Riverside County originally formed CSA 152 to finance a portion of its programs and obligations associated with its NPDES Permit. The City of Palm Springs annexed into CSA 152 in 1993 to allow for the levy of special assessments to offset the City’s costs related to administering its own NPDES Program.
STAFF ANALYSIS:
On January 23, 2025, the City Council approved an Administrative Services Agreement with Riverside County that facilitates the County’s administration of the NPDES Program on the City’s behalf to be offset by the special assessments collected in CSA 152. The special assessment rate in Palm Springs is $9.50 annually, per Benefit Assessment Unit (“BAU”). BAU is defined as a single-family home on a 7,200 square feet (1/6 acre) lot.
The County subsequently approved the agreement in June 2025, and this is the effective date of the new 5 year agreement that also contains 2 one-year options for renewal.
Riverside County originally formed CSA 152 to finance a portion of its programs and obligations associated with its NPDES Permit. The City annexed into CSA 152 in 1993, to allow for the levy of special assessments to offset the City's costs related to administering the NPDES Program. The City has renewed the Administrative Services agreement every five years since the annexation.
In accordance with the City’s agreement with Riverside County, the City is required to complete its annual report for the CSA 152 Program and confirm the CSA 152 assessment. This will allow Riverside County the time needed to assemble and coordinate the levy of the special assessments in the next tax roll.
Staff recommends that the City Council adopt the Resolution making certain findings and setting the BAU for CSA 152 at the currently adopted existing rate of $9.50. This is equal to the previous BAU special assessment rates adopted by the City Council. A copy of the Photo 3: Oils and polluted
contaminants in a drainage gutter
Photo 4: Clean-up of illegal dumping into
a stream bed.
City Council Staff Report
March 11, 2026 -- Page 4
Approval of FY 2026/2027 CSA 152 Special Assessment Rate required annual report, confirming the special assessment rate is appropriate, is included as Attachment A. The Riverside County Office of Economic Development requires City approval by April 6, 2026.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT:
The CSA 152 special assessment of $9.50 per BAU is estimated to generate approximately $482,026 in revenue in Fiscal Year 2026/2027 to fund all activities associated with the City’s NPDES Program.
REVIEWED BY:
Department Director: Kristopher J. Mooney
City Engineer: Joel Montalvo
City Manager: Scott Stiles
ATTACHMENTS:
A. Fiscal Year 2025/26 Annual Report
B. Resolution