Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00114 February 1, 2022 Discussion Item 13
Title: Storm Drainage Property Related Fee Ballot Election
Location: Citywide
Recommendation: Pass a Motion authorizing a ballot election for a new Storm Drainage property related fee.
Contact: William O. Busath, Director of Utilities (916) 808-1434, [email protected] ;
Chuong (Ryan) Pham, Business Services Manager (916) 808-8995, [email protected]; Dean Fujimoto, Program Manager, (916) 808-6645, [email protected]; Tyler Stratton, Program Specialist, (916) 808-1284, [email protected], Department of Utilities
Presenter: William O. Busath, Director of Utilities (916) 808-1434, [email protected]
, Department of Utilities
Attachments:
1-Description/Analysis
2-Map of 218 Protests 1.20.2022
File ID: 2022-00114 Discussion Item 13
February 1, 2022
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City of Sacramento
Description/Analysis
Issue Detail: There has not been a new Storm Drainage System Fee in the City of Sacramento since 1996. On May 12, 2020, the City Auditor presented the “Department of Utilities (DOU) Storm Drainage Fund Review” to City Council, which determined that there are insufficient storm drainage revenues to invest properly in the City’s Storm Drainage System, which is valued at $8.1 billion.
The City Auditor’s review found several key points, including:
• A complete drawdown of Storm Drainage Fund balance will occur by FY2029/30 with a continuation of the current underfunded level of service and Capital Improvement investment.
• A recommended enhanced Capital Improvement investment, consisting of $34 million annually, would immediately exhaust all available cash reserves without implementing fee increases.
Proposition 218, also called the “The Right to Vote on Taxes Act,” was approved in 1996 and requires a three-step process for approval of a Storm Drainage System Fee. The first step requires a “protest mailer” to be sent to property owners, the second step requires a public “rate hearing” be conducted, and the third step requires mailing special election ballots to property owners.
In December 2021, protest mailers were sent to all current DOU drainage customers. In January 2022, about two percent of City property owners -- who are not currently DOU drainage customers but would be subject to the new fee -- were sent a protest mailer.
See Attachment 1 for the results of the protest mailer by Council District as of January 20, 2022. The final results of the protest mailer will be shared during the presentation of this item.
A rate hearing was conducted on January 26, 2022 with the Utilities Rate Advisory Commission that provided an opportunity for the public to comment on the proposed property- related fee. The protest mailer results were presented at the hearing.
By mid-February, pending council approval, all customers will be sent a special ballot that can be used to vote on the proposed measure.
File ID: 2022-00114 Discussion Item 13
February 1, 2022
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City of Sacramento
The updated schedule is outlined below:
February 1, 2022 City Council Meeting – Seek
Authorization for Ballot Election
February 2022 Ballot Election Begins
March 2022 Ballot Election Ends
April 2022 City Council Meeting - Adopt Rate
Policy Considerations: Not applicable
Economic Impacts: Not applicable
Environmental Considerations: Not applicable
Sustainability: Not applicable
Commission/Committee Action: The Department of Utilities presented four Rate Workshops to the Utilities Rate Advisory Commission (URAC) from September through November of 2021.
The Department of Utilities presented three updates to the Water Committee from April through November of 2021. A public Rate Hearing was conducted with the URAC on January 26, 2022, and the URAC recommends City Council approve the ballot election.
Rationale for Recommendation: The City of Sacramento has an essential role in providing clean drinking water and protecting local water supplies by providing primary treatment of wastewater, managing creeks, streams, and stormwater runoff to prevent flooding and reducing trash pollution. Stormwater runoff can carry pollution, trash, harmful chemicals, and harmful bacteria into our local rivers, creeks, and streams, and on into the Delta.
Improvements to the system will help to minimize these pollutants. The proposed ballot measure, if passed, will provide the funding to perform these needed repairs and improvements.
Financial Considerations: The proposed new Storm Drainage Fee complies with the Proposition 218 mandate which allows utilities to charge rates sufficient to recover the cost of providing utility services.
Local Business Enterprise (LBE): Not applicable
Background: Sacramento’s local system of storm drains, levees, pumps, and pipes collect, and clean stormwater to protect our rivers and waterways from pollution. Levees, creeks, and canals help protect Sacramento communities from flooding by holding and conveying stormwater during large storms to prevent flooding neighborhoods and streets. Sacramento’s
File ID: 2022-00114 Discussion Item 13
February 1, 2022
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City of Sacramento
storm drainage system is up to 100 years old, and many levees, pipes, and pumps are rapidly deteriorating. Without repairs or improvements, there is increased risk of polluting our rivers and water sources, and of flooding in many areas of the City.
Sacramento’s flood risk is one of the highest in the nation because it sits at a low elevation on a flood plain and is largely surrounded by levees. In most cities, stormwater drains by gravity.
The City of Sacramento’s stormwater system relies on a complex system of pumps to drain stormwater into creeks and rivers. Many neighborhoods, including downtown Sacramento, rely on a “combined system” where sewage and stormwater are collected and conveyed in the same system of pipes (see map below). If old pipes or pumps fail in these areas, floodwater could include raw sewage, which can be harmful to public health and damage homes and rivers.
To continue to protect clean, local water, the City of Sacramento is proposing a potential ballot measure (required by proposition 218 for storm drainage rate increases) to fund repairs, maintenance, and improvements to its aging stormwater system, which protects local rivers, and water sources from pollution and toxins, and protects homes and businesses from flooding. The measure would generate approximately $20 million a year. These funds would be used to:
• Repair aging water pipelines and other infrastructure; • Replace aging and deteriorating pumps to prevent flooding; • Protect local water quality and water supplies;
File ID: 2022-00114 Discussion Item 13
February 1, 2022
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City of Sacramento
• Keep trash and harmful chemicals out of the American and Sacramento rivers and local creeks;
• Prevent sewage and human waste from flooding neighborhood streets; and • Provide safe, clean water for future droughts and emergencies.
The proposed fee would be based on impervious surfaces (buildings and pavement), and paid by industrial, commercial, residential, and other property owners. The proposed monthly fee, by type of property, is in the table below. All funds raised would be used only for Sacramento’s stormwater system and subject to citizen oversight and public audits.
Residential property rates are based on Sacramento County Assessor’s data, including an average gross parcel size which is multiplied by an Impervious Surface Coefficient (ISC) which is then multiplied by the $0.01975 annual net square foot rate. This calculation is the basis for the monthly fees in the Residential Property table below.
Non-residential property rates are based on Sacramento County Assessor’s data, including land use type and gross parcel size which is multiplied by an Impervious Surface Area Coefficient which is then multiplied by the $0.01975 annual net square foot rate. These formulas are a well-established storm drainage rate development method. Both Residential and Non-Residential parcels will have a minimum fee of $1 per month. Income-eligible customers may qualify for utility bill assistance. Property owners who have errors with their property type, acreage, or number of units listed in County Assessor data may correct this information with the County of Sacramento.
File ID: 2022-00114 Discussion Item 13
February 1, 2022
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City of Sacramento
American Ri ver
Sac
rame
nto River
80 80
5 5
50 99
160
99 SacramentoCounty
Yolo County
Del Paso Rd
24Th St
Ethan Way
Broadway
Seamas Ave
Sutterville Rd
Q St
Richards Blvd
14Th Ave
Rio Linda BlvdTruxelRd
59Th St
Pocket Rd
Norwood Ave
Bruceville Rd
Power Line Rd
Elder Creek Rd
Folsom Blvd
Franklin
Blvd
W El Camino Ave
Eastern Ave
X St
I St
CenterPkwy
Freeport Blvd
ElvasAve
16Th St
Marconi Ave
12Th St
StocktonBlvd
Alhambra Blvd
J St
Main Ave
Meadowview Rd
M
arysvilleBlvd
Mack Rd
Garfield Ave
47Th Ave
Riverside Blvd Kiefer Blvd
French Rd
3RdSt
San Juan Rd
65Th Street Expy
Auburn Blvd
Del Paso Blvd
Northgate
Blvd
Howe Ave
Exposition Blvd
Elsie Ave
Elk Grove Florin Rd
ECommerceW
ay
Munroe St
Cosumnes River Blvd
Arena Blvd
Natom
asBlvd
Fruitridge Rd
Bell AveN Market Blvd
Florin Perkins Rd
H St
Power Inn Rd
Bradshaw RdFlorin Rd
7ThSt
El Centro Rd
Garden Hwy
7 4
23 6
5 8
1 ¯
R:\GIS\Drainage\Projects\Rate_Increase\2021\Maps\Rate_Increase_2021_Protests_Letters_220120_V1 0 1 2
Miles
All maps & data provided are subject to Terms of Use identified in the City of Sacramento Open Data Policy at http://data.cityofsacramento.org/pages/disclaimer DOU - GIS 1/20/2022
Proposed Rate Increase:
Protest
Council District:
1 2
3 4
5 6
7 8
Map Date: January 20, 2022
Protests of Proposed Rate
Increases by Council District
Proposition 218 Notification
FY 2021/22 Proposed Utility Rate Increases
1 21 18138
2 27 15994
3 14 15648
4 44 19269
5 38 18750
6 36 20398
7 70 24328
8 17 16950
Uninc. 0 1571
District Protests Parcels