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PRESENTATION Item 13 - Storm Drainage Property Related Fee Ballot Election PP (PDF-1654 KB) [Updated 02/04/2022 @ 2:40 p.m.]

Sacramento City Council
February 1, 2022

Document
PRESENTATION Item 13 - Storm Drainage Property Related Fee Ballot Election PP (PDF-1654 KB) [Updated 02/04/2022 @ 2:40 p.m.]
Meeting
February 1, 2022
Body
Sacramento City Council
Original file
1.7 MB
Text extracted from the city's file for reading and search. Open the original on sacramento.granicus.com. That file is the official record.

DEPARTMENT OF UTILITIES

STORM DRAINAGE BALLOT ELECTION
City Council Meeting
February 1, 2022

Ballot Election Recommendation
2  Pass a Motion authorizing a ballot election for a new Storm Drainage property related fee

Storm Drainage System
3 4
Drainage Basins
 137 Drainage Basins
 82 Detention Basins

Major Drainage Assets
 105 pump stations
 842 miles of pipeline
 100 miles of levees
 76 miles of streams and
channels
5 Major Combined Sewer System Assets
 Sump 1
 Sump 2
 CWTP
 Pioneer Reservoir
 4 storage vaults
 282 miles of pipe
6 Storm Drainage Resources
 123 Employees
 107 Vehicles
 43 Generators
7 Levels of Service
8 100-year storm10-year storm
9  Aging infrastructure
$236 million
backlog of
projects
 High risk of flood
Levees
Pump Stations
Flood Fighting
System Risks
System Risks
 Risks to source water
quality
 Lack of CIP Funding
10 May 12, 2020 City Auditor Findings
The CityAuditor’s review found several key points, including:
 There are insufficient storm drainage revenues to invest properly in the City’s stormwater system, which is valued at $8.1 billion.  A recommended enhanced Capital Improvement investment of $34 million annually would immediately exhaust all available cash reserves without implementing fee increases.

Findings were not unexpected – no increase since 1996
11 Storm Drainage Funding Measure
12  Protect drinking source water quality and supplies,  Reduce combined sewage overflowing onto streets
 Replace aging and deteriorating pumps
 Repair aging pipelines
 Maintain streams and channels
 1300 jobs over 10 years
 Will provide $20 million annually

Proposed Fee Methodology
13 Different Customer Classes
 Residential - 3 Tiers of Single Family and Multifamily  Non-Residential (Commercial, Industrial, etc.)
 Impervious Surface Coefficient (ISC) for each class
 All rates based on $0.01975 per Net SqFt/yr

Residential Proposed Fee Amounts
14 Customer Tier Residential Property Density Monthly Fee Single Family #1 Parcel Gross Area less than 1/10 acre $3.13 Single Family #2 Parcel Gross Area between 1/10 acre & 1/4 acre $5.94 Single Family #3 Parcel Gross Area greater than 1/4 acre $10.78 Multi-Family #1 High Density 50+ Units per Acre $0.67 per unit Multi-Family #2 Medium Density 11-50 Units per Acre $2.41 per unit Multi-Family #3 Low Density 1-10 Units per Acre $5.84 per unit

Non-Residential Proposed Fee Amounts
15 Non-Residential Property Type* ISC
Agriculture 0.04
Public & Utilities 0.44
Industrial/Retail/Commercial 0.86
Office/Recreational/Church & Welfare/Personal Care & Health 0.80 Airport 0.30
Common Areas 0.30
Golf; Park; Cemetery; Miscellaneous; Vacant 0.10
Exempt 0.00
*$0.01975 per gross square foot x ISC (Impervious surface coefficient) annually  Example: Commercial building on a 53,000 gross square foot parcel  Proposed Fee is $0.01975 X 53,000 X 0.86 = $900 annually ($75 monthly) Sacramento Utility Rate Assistance (SURA)
16  8,500 participants
 $3.78M annual budget
 Discounted rates for water,
wastewater, and recycling and
solid waste services

17 30%
36%
12%
20%
2%
Definitely yes
Probably yes
Probably no
Definitely no
Undecided
Total
Yes
66%
Total
No
32%
Property Owner Survey Results
If there were an election today, do you think you would vote “yes” in favor of this measure or “no” to oppose it?
In April 2021, 54% of Single-Family Resident ratepayers indicated they would vote “yes” on this proposal in a dual-mode (phone and online) survey.

DOU Informational Outreach
18  Prop. 218 protest mailers
 Meetings with business, labor, community group
 6 Live Webinars Dec 2021 - Jan 2022
 Email invitations
 Social media content
 Full page ad in Inside Sacramento
 Digital ads
 Article on citywide blog
 Posts on Nextdoor

Multi-Language Outreach
19  Worked with the City's Community
Engagement Manager on multi-
language outreach
 Outreach items offered in Spanish,
Russian, Traditional and Simplified
Chinese:
 218 Informational Mailer
 Fact Sheet
 Frequently Asked Questions

20 Proposition 218 Protest Mailer
 Mailed to current DOU customers in December 2021
 Mailed to non-DOU customers subject to the new fees (about 2% of property owners) in January 2022
 Proposed fee amounts
 Protest Hearing date
 Written protests by US Mail or hand delivery
 50%+ protests to stop process
Committee/Commission Public Meetings
21  City of Sacramento Water Committee
 Four updates
◼ April - November 2021
 Utilities Rate Advisory Commission
 Two updates
 Four Rate Workshops
 Rate Hearing
◼ May - November 2021
 Helped improve the fee methodology

22 Proposition 218 Protest Results by Reason
Proposed Storm Water Fee Protest Summary
Results For Protests Received Through 1/25/22
Total Notices Mailed 154,123
- No Specific Comment 241 <1%
- Increase is Excessive or Unjustified 68 <1%
- Causes a Financial Hardship 30 <1%
- Reduce level of service to offset cost 13 <1%
- Quality/Level of service does not warrant increase 32 <1% Total Written Protests Received 384 <1%
23 Proposition 218 Protest Results by District
Protests by Council District
District Protests Parcels
1 25 18,062
2 35 15,863
3 38 15,434
4 54 19,019
5 42 18,490
6 40 20,270
7 92 24,201
8 52 16,881
Unincorporated 1 1,558
Total 379 149,778
Note- The total notices mailed, protests, and parcels listed above vary due to mapping processes that remove duplicate APNs and zero addresses

24 Public Rate Hearing
 Public Rate Hearing conducted on January 26, 2022
 218 Protest Mailer results
 Three members of the public provided comments
 The URAC recommended forwarding this item to Council for approval to authorize the ballot election
January 26, 2022 URAC Meeting - Rate Hearing
February 1, 2022 City Council Meeting – Seek Ballot Election Authorization
February 9, 2022 Ballot Election Begins
March 16, 2022 Ballot Election Ends
April 2022 City Council Meeting - Adopt Rate
April - June 2022 Billing System Configuration
July 1, 2022 New property fee implemented
25 Storm Drainage Ballot Election Schedule

THANK YOU

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