Item 05 2023-01134 Ordinance Adding Section 13.16.125 to and Amending Section 18.52.010 of the Sacramento City Code Relating to a Storm Drainage Development Fee — Law and Legislation Committee, September 19, 2023

City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01134 9/19/2023 Discussion Item 5.

Ordinance Adding Section 13.16.125 to and Amending Section 18.52.010 of the Sacramento City Code Relating to a Storm Drainage Development Fee
File ID: 2023-01134
Location: Citywide
Recommendation: 1) Review an Ordinance adding section 13.16.125 to and amending section

18.52.010 of the City Code relating to a Storm Drainage Development Fee; and 2) pass a Motion forwarding the ordinance to City Council for approval.

Contact: Kelly Sherfey, Project Manager, (916) 808-1466, [email protected]; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455, [email protected], Pravani Vandeyar, Director, (916) 808-3765, [email protected]; Department of Utilities Presenter: Pravani Vandeyar, Director, (916) 808-3765, [email protected] Department of Utilities
Attachments:
1-Description/Analysis
2-Ordinance, Clean
3-Ordinance, Redline
4-Draft Department of Utilities Development Impact Fee Nexus Study Additional Description/Analysis
Issue Detail: In April 2015, Council adopted the 2035 General Plan (General Plan), including policies and implementation measures to prepare and adopt citywide development impact fee programs.

These programs would ensure new development pays its fair share of needed infrastructure improvements to support projected growth and development. The proposed ordinance adding section 13.16.125 of the City Code would establish a citywide Storm Drainage Development Fee.

The ordinance would also amend the City Coe relating to fee deferrals to add a reference to the new fee.

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File ID: 2023-01134 9/19/2023 Discussion Item 5.

Policy Considerations: The proposed ordinance has been guided by the City’s goals and policies as established in the General Plan, including the policies that promote a complete and adequate infrastructure system to support future development.

U 1.1.5 Growth and Level of Service. The City shall require new development to provide adequate facilities or pay its fair share of the cost for facilities needed to provide services to accommodate growth without adversely impacting current service levels.

U 1.1.6 Infrastructure Finance. The City shall develop and implement a financing strategy and assess fees to construct needed water, wastewater, stormwater drainage, and solid waste facilities to maintain established service levels and to mitigate development impacts to these systems (e.g., pay capital costs associated with existing infrastructure that has inadequate capacity to serve new development). The City shall also assist developers in identifying funding mechanisms to cover the cost of providing utility services in infill areas.

Economic Impacts: The storm drainage development impact fee will fund storm drainage infrastructure necessary to support development.

Environmental Considerations: The Community Development Department, Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b). The activity is a continuing administrative activity and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3).

Sustainability: The proposed ordinance and fee support new residential and non-residential development needed to meet the population growth projections outlined in the General Plan. The proposed development fee framework ensures that existing ratepayers are not paying the full cost of infrastructure to support new development, but rather that new growth pays its fair share of infrastructure costs, thereby allowing the City to develop in a sustainable manner.

Commission/Committee Action: None.

Rationale for Recommendation: The proposed Storm Drainage Development Fee is needed to ensure new development within the city pays its fair share of the cost for facilities needed to provide services to accommodate growth without adversely impacting current service levels. The establishment of a Storm Drainage Development Fee will provide the financial capacity to fund major storm drainage infrastructure projects necessary to meet future development demands.

Financial Considerations: The Storm Drainage Development Fee provides a mechanism to ensure that new development pays for the public infrastructure needs caused by new growth. The Storm Drainage Development Fee framework also includes administrative fees to recoup staff time required to administer the program. Revenues derived from the Storm Drainage Development Fee will be

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File ID: 2023-01134 9/19/2023 Discussion Item 5.
deposited in a separate fund. The Storm Drainage Development Fee will not have an impact on the General Fund.

Local Business Enterprise (LBE): Not applicable.

Background: As the Department of Utilities plans for the future development needs of the City, it has identified a need for new critical infrastructure that will be needed to sustain the growing population of Sacramento. For several decades the City has utilized existing infrastructure capacity to support new development. When capacity is no longer available, the City has relied on individual proposed developments to fund new infrastructure required by that project. In-depth analysis showed that the City’s development impact fee system is outdated, difficult to navigate, and is insufficient to fund infrastructure required to support the build out of the 2035 and draft 2040 General Plans. Additionally, the City’s incremental evolution of fees has resulted in a complex system that is cumbersome for the City to manage and for developers to determine financially feasibility of projects.

To avoid impeding the City’s rapidly paced development, critical infrastructure must be constructed to support the expanding population. Today’s utility development impact fees are significantly deficient and will not allow the Department of Utilities to begin design and construction of long-term infrastructure projects. To meet these future demands, the Department of Utilities retained Economic & Planning Systems (EPS) to update the water, storm drainage, sewer, and combined sewer system nexus studies to determine the appropriate development impact fees to fund necessary infrastructure projects in coordination with the growth trends of the City. The development impact fee nexus studies were updated using best practices, current data, and methodology calculated to meet all statutory and regulatory guidelines.

The recommended adjustments to the current water, sewer, and combined sewer system impact fees, as well as the establishment of the storm drainage development fee were based on nexus study findings. Without adjustment of the development impact fees, the City’s financial capacity to fund major water, sewer, combined sewer, and storm drainage infrastructure projects will continue to be eroded. This proposed ordinance establishes the storm drainage development fee.

Because of the impact these fee adjustments would have on the development community, the Department of Utilities developed an informational webpage on the proposed adjustment, requested public comment, and conducted extensive outreach.

In October 2023, staff will seek Council approval of all four utility development impact fees and request a January 1, 2024, implementation date.

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ORDINANCE NO.

Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE ADDING SECTION 13.16.125 TO AND AMENDING SECTION

18.52.010 OF THE SACRAMENTO CITY CODE, RELATING TO A STORM DRAINAGE

DEVELOPMENT FEE
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

Section 13.16.125 is hereby added to the Sacramento City Code to read as follows:

13.16.125 Storm drainage development fee.

A. General. A customer required to obtain city approval to add impervious area that drains to the city storm drain system is subject to a storm drainage development fee charged to recover an appropriate share of the capital costs of the city’s existing and new storm drainage system facilities. No city approval authorizing additional impervious area shall be issued unless the storm drainage development fee has been paid or the director has determined that the fee does not apply. Payment of the storm drainage development fee is in addition to payment of all other applicable fees and charges.

B. Amount of Fee. The fee established by this section is determined by reference to a schedule of fees adopted by city council resolution, subject to the annual adjustment made by the director as provided in subsection C.

C. Annual Adjustment. In January of each year, the director shall adjust the storm drainage development fee schedule then in effect to compensate for an increase in construction costs since the previous adjustment, by applying the following methodology:

1. The director shall first calculate the “current construction cost index,” which shall be the average of: (a) the average construction cost index for 20 U.S. cities published in the appropriate January issue of “Engineering News Record” (ENR) magazine; and (b) the construction cost index for San Francisco published in the same issue of ENR magazine.

2. The director shall then calculate the “fee adjustment factor,” by dividing the current construction cost index calculated pursuant to paragraph 1 of

this subsection by the construction cost index that was calculated in January of the last year in which the storm drainage development fee schedule was changed.

3. If the fee adjustment factor calculated pursuant to paragraph 2 of this subsection is one or less, the storm drainage development fee schedule then in effect shall remain unchanged. If the fee adjustment factor calculated pursuant to said paragraph is greater than one, the director shall adjust the storm drainage development fee schedule then in effect by multiplying each of the fees therein by the fee adjustment factor. If the storm drainage development fee schedule is adjusted as provided herein, the adjusted storm drainage development fee schedule shall become effective on July 1st following the January when the fee adjustment factor is calculated pursuant to paragraphs 1 and 2 of this subsection.

D. Credit for Mitigation Projects. The director may determine an appropriate credit to be given against the storm drainage development fee for a customer who constructs or contributes toward the construction of a project or projects that mitigate the impact on the storm drainage system of storm drainage flows from the customer’s premises.

E. City Development Impact Fees. Storm drainage development fees are subject to requirements in chapter 18.56, article I.

SECTION 2.

A. Subsection B of section 18.52.010 of the Sacramento City Code is hereby amended to read as follows:

B. “City fee” means any of the following fees:

1. Railyards transportation fee (section 18.36.040.A.1).

2. Richards Boulevard transportation fee (section 18.36.040.A.1).

3. Railyards public facilities fee (section 18.36.040.A.2).

4. Richards Boulevard public facilities fee (section 18.36.040.A.3).

5. Jacinto Creek facilities fee (sections 18.28.050.A.1 and 18.28.110.B).

6. North Natomas public facilities fee (section 18.24.050.A.1).

7. North Natomas transit fee (section 18.24.050.A.2).

8. North Natomas public land acquisition fee (section 18.24.280.A).

9. North Natomas Regional Park land acquisition fee (section 18.24.280.B).

10. Park development impact fee (section 18.44.030.A).

11. Building excise tax (section 3.36.010).

12. Willowcreek fee (section 18.32.050.A.1).

13. Sewer development fee (section 13.08.480).

14. Combined sewer development fee (section 13.08.490).

15. Water system development fee (section 13.04.820).

16. Storm drainage development fee (section 13.10.125).

17. Mixed income housing fee (chapter 17.712).

18. Transportation development impact fee for citywide benefit district (chapter

18.48).

19. Any fee adopted by the city council pursuant to chapter 18.56.

B. Except as amended by subsection A above, all provisions of section 18.52.010 remain unchanged and in full effect.

SECTION 3.

If any provision of this ordinance or its application to any person or circumstance is held invalid or ineffective by any court of competent jurisdiction, or by reason of any preemptive legislation, that invalidity shall not affect the validity of the remaining provisions of this ordinance. The City Council declares that it would have passed this ordinance and each section, subsection, subdivision, sentence, clause, phrase, and word, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or words be declared invalid.

ORDINANCE NO.

Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE ADDING SECTION 13.16.125 TO AND AMENDING SECTION

18.52.010 OF THE SACRAMENTO CITY CODE, RELATING TO A STORM DRAINAGE

DEVELOPMENT FEE
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

Section 13.16.125 is hereby added to the Sacramento City Code to read as follows:

13.16.125 Storm drainage development fee.

2. The director shall then calculate the “fee adjustment factor,” by dividing the current construction cost index calculated pursuant to paragraph 1 of

this subsection by the construction cost index that was calculated in January of the last year in which the storm drainage development fee schedule was changed.

E. City Development Impact Fees. Storm drainage development fees are subject to requirements in chapter 18.56, article I.

SECTION 2.

A. Subsection B of section 18.52.010 of the Sacramento City Code is hereby amended to read as follows:

B. “City fee” means any of the following fees:

1. Railyards transportation fee (section 18.36.040.A.1).

2. Richards Boulevard transportation fee (section 18.36.040.A.1).

3. Railyards public facilities fee (section 18.36.040.A.2).

4. Richards Boulevard public facilities fee (section 18.36.040.A.3).

5. Jacinto Creek facilities fee (sections 18.28.050.A.1 and 18.28.110.B).

6. North Natomas public facilities fee (section 18.24.050.A.1).

7. North Natomas transit fee (section 18.24.050.A.2).

8. North Natomas public land acquisition fee (section 18.24.280.A).

9. North Natomas Regional Park land acquisition fee (section 18.24.280.B).

10. Park development impact fee (section 18.44.030.A).

11. Building excise tax (section 3.36.010).

12. Willowcreek fee (section 18.32.050.A.1).

13. Sewer development fee (section 13.08.480).

14. Combined sewer development fee (section 13.08.490).

15. Water system development fee (section 13.04.820).

16. Storm drainage development fee (section 13.10.125). 1716. Mixed income housing fee (chapter 17.712).
1817. Transportation development impact fee for citywide benefit district (chapter 18.48).
1918. Any fee adopted by the city council pursuant to chapter 18.56.

B. Except as amended by subsection A above, all provisions of section 18.52.010 remain unchanged and in full effect.

SECTION 3.

Report
Development Impact
Fee Program and Nexus Studies

Prepared for:

City of Sacramento
Department of Utilities

Prepared by:

Economic & Planning Systems, Inc. (EPS)

February 13, 2023

EPS #212125

Table of Contents
Executive Summary ...................................................................... 1 Introduction and Background ................................................................ 1 Summary of Findings........................................................................... 9 Organization of Report ....................................................................... 13 The Water System Utility .............................................................. 14 Introduction and Description............................................................... 14 Growth, Demand, and Allocations ........................................................ 16 Buy-In Methodology and Fee per Equivalent Meter ................................. 17 Incremental Methodology and Fee per Equivalent Meter ......................... 19 Capital Costs, Allocation, and Cost per Equivalent Meter ......................... 24 Water System Development Impact Fee ............................................... 25 Comparison with Surrounding Communities .......................................... 26 Nexus Findings ................................................................................. 28 The Separated Sewer System Utility ............................................... 32 Introduction and Description............................................................... 32 Growth and Demand ......................................................................... 34 Incremental Methodology and Fee per Equivalent Standard Dwelling ........ 38 Comparison with Surrounding Communities .......................................... 43 Nexus Findings ................................................................................. 44 The Combined Sewer System Utility ............................................... 48 Introduction and Description............................................................... 48 Growth and Demand ......................................................................... 50 Incremental Methodology and Cost per Equivalent Standard Dwelling and Impermeable Square Foot ............................................... 51 Comparison with Surrounding Communities .......................................... 56 Nexus Findings ................................................................................. 57 The Storm Drainage System Utility ................................................. 63 Introduction and Description............................................................... 63 Growth, Demand, and Allocations ........................................................ 65 Buy-In Methodology, Fee Calculation, and Credits .................................. 66

Fee per Developable Acre and Square Foot ........................................... 70 Use of Fees ...................................................................................... 72 Comparison with Surrounding Communities .......................................... 73 Nexus Findings ................................................................................. 74

Appendices
Appendix A: Executive Summary
A-1: Square Feet per Employee Coefficients
A-2: Companion Charts to Tables 1-5 and 1-6
Appendix B: Water System Utility
B-1: Water System Asset Analyses
B-2: Capital Improvement Program
B-3: Companion Charts to Tables 2-10 and 2-11
Appendix C: Separated Sewer System Utility
C-1: Technical Memorandum, Department of Utilities
C-2: Sample of Basin Improvements
C-3: Separated Sewer Detailed Fee Schedule
C-4: Companion Charts to Table 3-8
Appendix D: Combined Sewer System Utility
D-1: Detailed Fee Schedule
D-2: Fee Comparisons of Sewer Systems
Appendix E: Storm Drainage System Utility
E-1: Assets by Basins and Basin Type
E-2: Companion Charts to Table 5-10

List of Tables
Table 1-1. Housing by Type and Employment ................................................. 2 Table 1-2. 2040 General Plan Projection Data and Utility Demand Indicator ........ 3 Table 1-3. Demand Indicators and Factors by Utility System ............................. 4 Table 1-4. Impact Fee Methodology by Utility System ...................................... 5 Table 1-5. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Unit—Single-Family, Retail, and Office .................................. 10 Table 1-6. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Acre—Single-Family, Retail, and Office ................................. 11

Table 2-1. Housing Units by Type ................................................................ 16 Table 2-2. Equivalent Meter Projection and new Growth Share ........................ 16 Table 2-3. Existing Assets .......................................................................... 18 Table 2-4. Equivalent Meter Buy-In Fee ....................................................... 19 Table 2-5. RiverArc Capacity, Benefit, and Cost Allocation .............................. 22 Table 2-6. CIP Summary of Proportional Allocations and Costs ........................ 24 Table 2-7. Future Demand Shares ............................................................... 24 Table 2-8. Equivalent Meter Buy-In and Future Cost Allocation ........................ 25 Table 2-9. Buy-In and Future Cost Fee Schedule for New Development ............ 25 Table 2-10. Fee Comparisons by Land Use and Meter Size .............................. 26 Table 2-11. Fee Comparisons by Land Use and Area ...................................... 27

Table 3-1. 2040 Projected Growth in Land Use .............................................. 35 Table 3-2. Existing and Projected Equivalent Standard Dwellings ..................... 37 Table 3-3. System Value and Improvement Costs .......................................... 39 Table 3-4. Improvement Cost per ESD ......................................................... 40 Table 3-5. Cost per ESD with Planning Costs ................................................ 40 Table 3-6. Development Impact Fee Schedule............................................... 41 Table 3-7. 2040 Estimated Capital Requirements .......................................... 42 Table 3-8. Fee Comparisons ....................................................................... 43

Table 4-1. Equivalent Standard Dwelling and New Impermeable Surface Storage Requirements and Costs ..................................................... 51 Table 4-2. Capacity Requirements Examples ................................................. 52 Table 4-3. New and Existing ESDs ............................................................... 53 Table 4-4. Cost per ESD with Planning Costs ................................................ 53 Table 4-5. Development Impact Fee Schedule—Sewerage and Drainage ........... 54 Table 4-6. Fee Examples ............................................................................ 55 Table 4-7. 2040 Sewer Improvement Costs and Revenue at Buildout ............... 55 Table 4-8. Vacant Acres and Impervious Surface ........................................... 56 Table 4-9. Fee Comparisons ....................................................................... 57

Table 5-1. New Growth by Acreage, Residential Units, and Nonresidential Square Feet ........................................................................ 65 Table 5-2. Existing Assets .......................................................................... 66 Table 5-3. System Value per Acre by Basin Type ........................................... 67 Table 5-4. Weighted Average Impermeable Surface Coefficient ....................... 68 Table 5-5. System Value per Impervious Acre and
Square Foot by Basin Type ......................................................................... 69 Table 5-6. Fee per Impervious Square Foot by Basin Type .............................. 70 Table 5-7. Pumped Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot ..................................................... 71 Table 5-8. Gravity Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot ..................................................... 72 Table 5-9. Proportional Shares by Basin Type for Shared Projects .................... 73 Table 5-10. Fee Comparisons ..................................................................... 74

List of Figures
Figure 2-1. Water System Boundaries and Key System and
Geographic Characteristics ......................................................................... 15

Figure 3-1. Separated Sewer System Utility Boundaries and Key System and Geographic Characteristics ................................................. 33

Figure 4-1. Combined Sewer System Utility Boundaries and Key System and Geographic Characteristics ................................................. 49

Figure 5-1. Storm Drainage System Utility Boundaries and Key System and Geographic Characteristics ................................................. 64

Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 1
Executive Summary
Introduction and Background
In 2011 and 2019, the City of Sacramento (City) Department of Utilities (DOU) prepared Development Impact Fee (DIF) programs using consultants Wildan Financial Services and NBS, respectively. These programs addressed methodologies, costs, maximum justifiable fees, and legal compliance to serve new development in each of the four utility systems administered by DOU: Water, Separated Sewer, Combined Sewer, and Storm Drainage. For a variety of reasons, these efforts were not implemented. In 2022, DOU engaged Economic & Planning Systems, Inc. (EPS) to refresh these efforts in their entirety.

Establishing impact fees requires the identification of the proportional share of improvement costs for current and future customers for existing and planned capital improvements. This measurement of equity, followed with the implementation of the maximum justifiable fees, assures that rate payers do not subsidize new growth and vice versa. With these basic considerations, discussed in general below and in detail in later chapters and supporting appendices, are the data elements, methodologies, and considerations used to determine proportional shares, funding requirements, and impact fees for each of the four utility systems.

Accompanying each section is the required structure and focus of a Nexus Study under the State of California’s Mitigation Fee Act (CA Government Code Section 66000 and following), which prescribes the means by which public agencies may impose and adopt development impact fees.

The remainder of this section covers the following topics:
 2040 General Plan Linkage
 Impact Fee Methodology, Types, and Limits
 Infrastructure Needs, Facility Standards, Level of Service, and Deficiencies  Standard Cost Adjustment Methodology
 Systemwide versus Special Benefit
 Nexus Requirements
 Summary of Findings
 Organization of the Report
This section will be followed by chapters for each utility system.

Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 2
2040 General Plan Linkage
The current timing of the DIF effort coincides with that of the City’s 2040 General Plan Update. The parcel-specific Housing and Employment projections through the 2040 planning horizon are used to establish the likely demand for utility services for this period. Importantly, projected development in the 2040 General Plan is for the period 2016-2040 for employment and 2017-2040 for housing. This report adjusts these projections by accounting for development that has occurred through April 2022 as evidenced by completed building permits. The projections in this study are for the period 2022-2040 or 2023-2040, depending on what is being projected. Also of note is that the Water Master Plan, currently in process by DOU, draws on the same 2040 Master Plan Update projections.

The projections of new and existing demand vary by the geographic area served by each system and, in the Separated Sewer System and the Storm Drainage System, by each subbasin. Only the Water System is citywide. The citywide Housing and Employment projections used in this report are as shown on Table 1-1.

Table 1-1. Housing by Type and Employment

Importantly, much of the new development is projected for parcels with existing development. These parcels will be developed more intensively. Any reductions in employment or housing caused by this intensification are deducted from the protected growth. The projection is net growth.

The projections for each utility system and basin are provided in each relevant section and in the appendices of this report.

2017 American
Community
Survey
As of
April 2022
General Plan
2040 Net
New Growth 2040 Totals
Units
Single Family Detached 117,570 118,670 11,900 130,570
Single Family Attached 12,900 13,300 8,700 22,100
Multifamily 64,300 70,600 40,600 111,200
Total Housing Units 194,800 202,570 61,200 263,870
Employment 2015 Estimated
As of April
2022
2040 New
Employment 2040 Totals
City of Sacramento 300,067 307,019 69,660 376,679
Sources: City of Sacramento Community Development Department and EPS Exec_1 2040 General Plan
Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 3
Housing by type and employment by standard industry classifications (SICs)1 are used to estimate water demand and sewer and drainage capacity requirements.

Housing type and employment by the SICs are associated with land use types. For nonresidential properties, employment by land use establishes a square footage requirement for new employees. The conversion factors are included as Appendix A-1. With square footage values and housing unit data associated with land use types, there are standard and customary measures of demand by land use for all utility systems in this report. Also, the location data in the General Plan projection is an important determinant of demand. Location determines the service received, as well as basin location and parcel size, all of which are important drivers of demand. All of these demand indicators for each service are as shown on Table 1-2.

Table 1-2. 2040 General Plan Projection Data and Utility Demand Indicator

Each demand indicator has demand factors that adjust by the expected capacity requirement of a land-use type or by the measured new impermeable surface.

In the Water System, the Separated Sewer System, and the sewer service of the Combined Sewer System, the factors used (EMs and ESDs) adjust by land use from a base of 1 for the typical requirements of single-family detached dwellings for the service received. The Storm Drainage System and the drainage aspect of the Combined Sewer System use new impermeable surface as the demand indicator. The impermeable surface demand indicator is always site-specific to actual, measured new impermeable surfaces. An illustration of the demand indicators with examples of some of the associated demand factors is shown in Table 1-3.

1 North American Industry Classification System, OMB 2022.

Utility System 2040 General Plan Projection Demand Indicator Water Housing Units and Commercial Square
Feet by Land-Use Type Equivalent Meter (EM)
Separated
Sewer
Basin, Housing Units and Commercial
Square Feet by Land-Use Type Equivalent Standard Dwelling (ESD) Combined Sewer
(Sewer)
Housing Units and Commercial Square
Feet by Land-Use Type Equivalent Standard Dwelling (ESD) Combined Sewer
(Drainage)
Parcel Size, Housing Units and
Commercial Square Feet New Impermeable Square Feet
Storm Drainage Basin, Parcel Size, Housing Units and
Commercial Square Feet New Impermeable Square Feet
Sources: DOU, City of Sacramento Community Development Department and EPS Exec_2 Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 4
Table 1-3. Demand Indicators and Factors by Utility System

All of the demand factors for all land uses are discussed for each utility in the chapters that follow.

In general, all of the demand factors, applied to all current and future land uses, measure the existing and future capacity requirements of all systems. These requirements are shared between current and future development in proportion to the demands placed by current and future development.

Impact Fee Methodology, Types, and Limits
The Buy-In and Incremental Approaches
Improvement costs for which a proportionate share can be determined include both existing and future improvements. A new water connection, for example, is benefitting from all of the past investment made by existing rate payers to acquire, produce, and deliver water. The current value of those assets is an investment value, or cost, in which new development should participate. A future improvement to increase water production capacity would be a responsibility of new growth if that capacity is not also required to improve an existing capacity deficiency, in which case, a shared responsibility would be required.

The two types of improvement costs and the proportional share considerations they involve describe two different impact fee methodologies: the Buy-In approach and the Incremental Cost approach. The Buy-In approach determines the value of current assets and allocates on a reasonable-relationship basis a Utility System
Demand
Indicator
Single Family
Detached
Dwelling
10,000 Square
Foot Office
Water EM 1 3.2
Separated Sewer ESD 1 3.3
Combined Sewer
(Sewer) ESD 1 3.3
Combined Sewer
(Drainage)
New
Impermeable
Surface
Site Specific Site Specific
Storm Drainage
New
Impermeable
Surface
Site Specific Site Specific
Sources: DOU and EPS Exec_3
Demand Factors
Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 5
proportionate share of the assets new growth will use. For example, the basis used in this report for the Water System is the total future water Equivalent Meters, which vary by land use as a size difference and is a reasonable measure of the demand requirement. The new growth percentage share of those meters by land use is the allocation mechanism for sharing existing facility costs.

The Incremental approach determines the planned infrastructure costs necessary to provide adequate levels and standards of service to current and new customers. Proportionate shares are typically an engineering determination of who benefits. These shares can be determined by the percentage approach used in the Buy-In approach, if that is reasonable. This, in fact, is the approach used in some of the future capital projects in the Water System. Other projects are assigned a specific percentage based on project-specific benefit. The Water System model allocates some of its projects in this manner. The Separated and the Combined Sewer Systems allocate all future capital projects directly to new growth because the identified projects are required to create the storage capacity necessary to accommodate new growth.

A simple matrix of the impact fee methodologies used in this report is shown on Table 1-4.

Table 1-4. Impact Fee Methodology by Utility System

The Limits of Impact Fee Methodologies and the Need for Regular Updates The methodology used, whether the Buy-In approach, the Incremental approach, or a combination (known as the Combined approach) is determined by data availability, feasibility, and management discretion. These factors define the scope, type, and limits of the impact fee methodology. There are, for example, substantial existing assets in the Combined Sewer System with significant current value. However, a Buy-In approach is not being used because of the difficultly in valuing these assets or their replacement cost. Some of the assets are more than 100 years old. The service area is also highly developed with complex underground infrastructure that is not always well documented. As a result, actual Utility System
Water Buy In Incremental
Separated Sewer - Incremental
Combined Sewer (Sewer) - Incremental
Combined Sewer
(Drainage) - Incremental
Storm Drainage Buy In -
Source: EPS Exec_4
Methodologies
Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 6
replacement costs on a systemwide basis cannot be reasonably estimated. In this circumstance, the existing Combined Sewer assets are improved through projects on an as-needed basis with other funding means, including with development or other agreements, bond financing, revolving funds, lines of credit, or other rate- based funding.

The limitations imposed by the condition and amount of information regarding existing infrastructure largely determine the methodologies that can be used.

These considerations are just one element in the careful construction of a development impact fee program, which requires scrupulous attention to the substantive and procedural requirements of the Mitigation Fee Act.

Methodologies are also limited by constantly changing circumstances in actual growth, cost inflation, and other changes. Impact fees are calculated assuming a level of demand growth that almost always will be different than that projected.

As discussed further below, the infrastructure costs in this report are based on January 2022 dollars, which will automatically adjust annually on an index basis.

However, that mechanism is rarely adequate in matching actual costs, which cannot be known with precision without actual construction. Indexes are also lagging indicators, whereas construction contracts are real-time. For these and other reasons, actual costs rarely match predicted costs. Finally, the need for a project can change as service priorities and technologies adapt. The reality of these circumstances underscores the importance of regular updates that account for actual project costs and reassess planned projects, growth demands, and readjusts impact fees as appropriate. State law requires updates every 8 years.

The complexity and issues involved in the impact fee programs in this report may indicate updates on a much more frequent basis.

Infrastructure Needs, Facility Standards, Level of Service, and Deficiencies
All infrastructure in this report is identified and prioritized under operating standards that take one, or both, of two forms: “standards of service” or “level of service”. Standards of service refer to adopted policies in law or professional practice that are either in place for a particular service or are intended to be.

Level of service refers to the actual service benefits in place. When the benefits received are less than the standards of service, a deficiency exists.

As mentioned above, new development cannot be required to fund deficiencies for existing customers. However, deficiencies in facilities that serve both new and existing customers can be split on a proportional share basis. In these instances, the level of service is, and must be, improved for all customers.

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In most instances in this report the planned capital projects have been identified either to maintain existing levels of service as growth occurs or to not perpetuate deficiencies. Utility services are unique in that new customers create a direct, immediate impact on the capacity requirements of the service being provided.

There must be sufficient capacity in these systems to provide a consistent level of service for all customers at the appropriate service standard. All projects on which impact fees are calculated in this report are designed to address deficiencies or capacity improvements that are shared or new capacity exclusively for new development.

Standard Cost Adjustment Methodology
Throughout this report, dollar values are stated in January 2022 dollars for all existing system assets values, for all estimates of future capital costs, and for all fee calculations. The adjustment methodology is a simple average of two widely used Construction Cost Indexes (CCIs) published by the Engineering News-Record (ENR):
 ENR-CCI for San Francisco as of January.
 ENR-CCI 20 California Cities Average as of January.

The use of this method dampens price spikes in any one city, although San Francisco is given more weight because its economics have a significant influence on the City due to its size and proximity.

Annual Adjustment
Any adopted development impact fees will adjust annually on July 1 in accordance with the methodology.

Systemwide Versus Special Benefit
Whether directed at existing deficiencies or capacity improvements for new development, all projects in this report also create systemwide capacities. Specific development projects required to extend water distribution lines or sewer collection lines or to install self-contained drainage systems are required to self- fund these improvements.

Nexus Requirements
The purpose of a Nexus Study is to establish the legally required nexus (or reasonable relationship) between projected new residential and nonresidential development in the City through General Plan buildout and the capital facilities that will be required to serve that new development.

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The nexus requirements for imposing development impact fees were established under Assembly Bill (AB) 1600 legislation, as codified by the Mitigation Fee Act (the Act; California Government Code section 66000 and following). The Act sets forth the procedural requirements for establishing and collecting development impact fees. These procedures require that “the impact fee advances a legitimate state interest, that a proper nexus between the impacts caused by the development and the condition which advances the governmental interest has been demonstrated”.
2 Section 66001 of the Act specifies:
(a) In any action establishing, increasing, or imposing a fee as a condition of approval of a development project by a local agency, the local agency shall do all of the following:
(1) Identify the purpose of the fee.
(2) Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in Section 65403 or 66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the public facilities for which the fee is charged.
(3) Determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. (4) Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed.
(b) In any action imposing a fee as a condition of approval of a development project by a local agency, the local agency shall determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.

Important for water and sewer impact fees, Section 66013 of the Act applies the principles of Section 66001 to water and sewer connection fees. Section 66013(a) states, in part, “when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed.” The Nexus Study sections in the Water, Separated Sewer, and

2 A Short Overview of Development Impact Fees, League of California Cities, 2003.

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Combined Sewer chapters will address the nexus requirements in Section 66013 terms.

In addition, in 2021, AB 602 amended the requirements for drainage services by creating a “standards and practices” section to the Act, codified as Government Code Section 66016.5. This provision is both declaratory of previously existing law and added certain new requirements. A new provision that pertains to this report requires that a nexus study “shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development” [66016.5(a)(5)(A)], and “large jurisdictions shall adopt a capital improvement plan as a part of the nexus study” [66016.5(a)(6)].

Water and sewer systems are specifically exempt from the requirements of Section 66016.5. Storm drainage, however, is subject to the provisions but may exercise an exemption to the square footage allocation method if the nexus study makes findings that include all of these:
 An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project.  An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.
 That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

The nexus findings of the Storm Drainage chapter will include these exemption requirements for the Storm Drainage System and the drainage portion of the Combined Sewer System. In both cases, the standard and customary method to establish a reasonable relationship between the fee and the burden to development is focused on impermeable surfaces. This allocation methodology supports equity among development of any size, density and land use.

Summary of Findings
Presented below are high-level comparative summaries of all proposed fees and the fees of surrounding jurisdictions for single-family, retail, and office land uses on a per unit and per acre basis. For the per unit comparison, single-family dwellings are presented on Table 1-5a, Retail land uses on Table 1-5b, and Office land uses on Table 1-5c. For the per acre comparisons, single-family dwellings are presented on Table 1-6a, Retail land uses on Table 1-6b, and Office land uses on Table 1-6c. Companion charts to these tables are provided in Appendix A-2. For each utility, all land uses and all fees are discussed in the chapters that follow, along with comparisons with surrounding jurisdictions.

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Table 1-5. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Unit—Single- Family, Retail, and Office

Table 1-5a - Single Family
Per Unit Fees
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [1] $13,493 $7,635 $6,479 - $27,607 Sacramento - Separated Sewer and Gravity Drainage $13,493 $3,565 $6,479 $530 $24,067 Sacramento - Separated Sewer and Pumped Drainage $13,493 $3,565 $6,479 $847 $24,384 Sacramento - SASD and Gravity Drainage $13,493 $3,194 $6,479 $530 $23,696 Sacramento - SASD and Pumped Drainage $13,493 $3,194 $6,479 $847 $24,013 Sacramento - All Areas Average [2] $13,493 $4,231 $6,479 $688 $24,753 Sacramento County - Uninc. $19,535 $3,194 $6,479 $2,994 $32,202 Folsom $4,647 $1,073 $6,479 $1,037 $13,236
Roseville $7,366 $447 $9,664 $279 $17,756
West Sacramento $18,006 $7,011 $6,479 $6,185 $37,681
Woodland $5,770 $7,125 - $1,362 $14,257
Average Excluding Sacramento [2] $11,065 $3,770 $7,275 $2,371 $23,026 Sacramento +/- Percent of Comparative Entities 22% 12% -11% -71% 8% Source: EPS Exec_5a
Notes:
[1] Includes Drainage under Local Sewer.
[2] Averages exclude cities where the services are not provided.

Single Family Fees per Dwelling Unit
Table 1-5b - Retail
Per Unit Fees
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [2] $7,930 $4,047 $1,296 - $13,272 Sacramento - Separated Sewer and Gravity Drainage $7,930 $1,889 $1,296 $543 $11,658 Sacramento - Separated Sewer and Pumped Drainage $7,930 $1,889 $1,296 $867 $11,982 Sacramento - SASD and Gravity Drainage $7,930 $2,053 $1,296 $543 $11,821 Sacramento - SASD and Pumped Drainage $7,930 $2,053 $1,296 $867 $12,146 Sacramento - All Areas Average [3] $7,930 $2,386 $1,296 $705 $12,176 Sacramento County - Uninc. $16,394 $2,053 $1,296 $2,465 $22,209 Folsom $5,190 $316 $1,296 $579 $7,380
Roseville $11,302 $149 $3,221 $303 $14,975
West Sacramento $11,545 $2,078 $1,296 $5,446 $20,365
Woodland $3,391 $2,908 - $1,400 $7,699
Average Excluding Sacramento [3] $9,564 $1,501 $1,777 $2,039 $14,525 Sacramento +/- Percent of Comparative Entities -17% 59% -27% -65% -16% Source: EPS Exec_5b
Notes:
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided.

Retail Fees per 1,000 Building Square Feet [1]
[1] Most juridictions assess fees on demand volume for each particular site and land use. The square-footage basis used for Retail and Office uses is for comparative purposes only for all fees across all jurisdictions and is based on a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail and 35 percent for Office.

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Table 1-6. Summary of Water, Sewer, and Storm Drainage Development Impact Fees per Acre—Single- Family, Retail, and Office

Table 1-5c - Office
Per Unit Fees
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [2] $5,664 $2,520 $1,296 - $9,480 Sacramento - Separated Sewer and Gravity Drainage $5,664 $1,176 $1,296 $361 $8,497 Sacramento - Separated Sewer and Pumped Drainage $5,664 $1,176 $1,296 $576 $8,712 Sacramento - SASD and Gravity Drainage $5,664 $1,467 $1,296 $361 $8,787 Sacramento - SASD and Pumped Drainage $5,664 $1,467 $1,296 $576 $9,003 Sacramento - All Areas Average [3] $5,664 $1,561 $1,296 $468 $8,896 Sacramento County - Uninc. $11,710 $1,467 $1,296 $1,761 $16,233 Folsom $3,707 $226 $1,296 $413 $5,642
Roseville $8,073 $149 $3,221 $216 $11,659
West Sacramento $8,246 $2,078 $1,296 $3,611 $15,232
Woodland $2,422 $1,744 - $1,000 $5,166
Average Excluding Sacramento [3] $6,832 $1,133 $1,777 $1,400 $10,786 Sacramento +/- Percent of Comparative Entities -17% 38% -27% -67% -18% Source: EPS Exec_5c
Notes:
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided.

Office Fees per 1,000 Building Square Feet [1]
[1] Most juridictions assess fees on demand volume for each particular site and land use. The square-footage basis used for Retail and Office uses is for comparative purposes only for all fees across all jurisdictions and is based on a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail and 35 percent for Office.

Table 1-6a - Single Family
Per Acre Fees
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [1] $94,450 $53,448 $45,353 - $193,251 Sacramento - Separated Sewer and Gravity Drainage $94,450 $24,954 $45,353 $3,508 $168,265 Sacramento - Separated Sewer and Pumped Drainage $94,450 $24,954 $45,353 $5,725 $170,482 Sacramento - SASD and Gravity Drainage $94,450 $22,360 $45,353 $3,508 $165,671 Sacramento - SASD and Pumped Drainage $94,450 $22,360 $45,353 $5,725 $167,889 Sacramento - All Areas Average [2] $94,450 $29,615 $45,353 $4,616 $173,112 Sacramento County - Uninc. $136,745 $22,360 $45,353 $20,959 $225,417 Folsom $32,529 $7,511 $45,353 $7,259 $92,652
Roseville $51,561 $3,129 $67,648 $1,953 $124,291
West Sacramento $126,042 $49,077 $45,353 $43,294 $263,766 Woodland $40,390 $49,875 - $9,531 $99,796
Average Excluding Sacramento [2] $77,453 $26,390 $50,927 $16,599 $161,184 Sacramento +/- Percent of Comparative Entities 22% 12% -11% -72% 7% Source: EPS Exec_6a
Notes:
[1] Includes Drainage under Local Sewer.
[2] Averages exclude cities where the services are not provided.

Single Family Fees at 7 Units per Acre
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Table 1-6b - Retail
Per Acre Fees
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [2] $86,355 $44,069 $14,111 - $144,535 Sacramento - Separated Sewer and Gravity Drainage $86,355 $20,575 $14,111 $5,586 $126,628 Sacramento - Separated Sewer and Pumped Drainage $86,355 $20,575 $14,111 $9,118 $130,159 Sacramento - SASD and Gravity Drainage $86,355 $22,360 $14,111 $5,586 $128,412 Sacramento - SASD and Pumped Drainage $86,355 $22,360 $14,111 $9,118 $131,944 Sacramento - All Areas Average [3] $86,355 $25,988 $14,111 $7,352 $132,336 Sacramento County - Uninc. $178,536 $22,360 $14,111 $26,844 $241,851 Folsom $56,516 $3,438 $14,111 $6,302 $80,367
Roseville $123,077 $1,623 $35,080 $3,298 $163,078
West Sacramento $125,723 $22,629 $14,111 $59,309 $221,773 Woodland $36,926 $31,668 - $15,248 $83,842
Average Excluding Sacramento [3] $104,156 $16,344 $19,354 $22,200 $158,182 Sacramento +/- Percent of Comparative Entities -17% 59% -27% -67% -16% Source: EPS Exec_6b
Notes:
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided.

Retail Fees per Acre [1]
[1] Most juridictions assess fees on demand volume for each particular site and land use. The acreage basis is for comparative purposes only for all fees across all jurisdictions and is based on a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25).

Table 1-6c - Office
Per Acre Fees
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [2] $86,355 $38,415 $19,756 - $144,525 Sacramento - Separated Sewer and Gravity Drainage $86,355 $17,935 $19,756 $5,197 $129,243 Sacramento - Separated Sewer and Pumped Drainage $86,355 $17,935 $19,756 $8,482 $132,527 Sacramento - SASD and Gravity Drainage $86,355 $22,360 $19,756 $5,197 $133,667 Sacramento - SASD and Pumped Drainage $86,355 $22,360 $19,756 $8,482 $136,952 Sacramento - All Areas Average [3] $86,355 $23,801 $19,756 $6,839 $135,383 Sacramento County - Uninc. $178,536 $22,360 $19,756 $26,844 $247,496 Folsom $56,516 $3,438 $19,756 $6,302 $86,012
Roseville $123,077 $2,272 $49,112 $3,298 $177,759
West Sacramento $125,723 $31,681 $19,756 $55,061 $232,220 Woodland $36,926 $26,589 - $15,248 $78,763
Average Excluding Sacramento [3] $104,156 $17,268 $27,095 $21,351 $164,450 Sacramento +/- Percent of Comparative Entities -17% 38% -27% -68% -18% Source: EPS Exec_6c
Notes:
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided.

Office Fees per Acre [1]
[1] Most juridictions assess fees on demand volume for each particular site and land use. The acreage basis is for comparative purposes only for all fees across all jurisdictions and is based on a 1-acre parcel with a structure covering 35 percent of the parcel (i.e., a F.A.R of .35).

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There are many features to these comparisons that will be touched on in the chapters that follow. In the above tables, two points of Sacramento’s fee structure stand out in contrast to comparable jurisdictions. Sacramento has extraordinarily high sewer fees in its Combined Sewer System Utility. This is due to the high cost of managing a sewer system that mixes wastewater and stormwater runoff. The other “outlier,” in contrast, is the drainage fee set. Drainage fees are very low for reasons to be discussed in the Storm Drainage System Utility chapter. This is in light of the fact that the hydrology of Sacramento is very challenging, complex, and expensive to drain because of the flat, low-lying, delta topography.

Also significant is the comparison set used. The Water System Utility uses a broader set that is likely a fairer comparison for this system. This set is discussed in that chapter.

Organization of Report
This report is divided into 5 chapters and 5 appendices:
 Chapter 1 includes this Executive Summary.
 Chapter 2 details the Water System Development Impact Fee, Methodology, and Nexus Findings.
 Chapter 3 details the Separated Sewer System Development Impact Fee, Methodology, and Nexus Findings.
 Chapter 4 details the Combined Sewer System Development Impact Fee, Methodology, and Nexus Findings.
 Chapter 5 details the Storm Drainage System Development Impact Fee, Methodology, and Nexus Findings.
 Appendix A provides supporting detail and documentation for the Executive Summary.
 Appendix B provides supporting detail and documentation for the Water System Utility.
 Appendix C provides supporting detail and documentation for the Separated Sewer System Utility.
 Appendix D provides supporting detail and documentation for the Combined Sewer System Utility.
 Appendix E provides supporting detail and documentation for the Storm Drainage System Utility.

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The Water System Utility
Introduction and Description
The City’s Water System is maintained and operated by DOU and implements comprehensive drinking water programs that focus on the supply, production, storage, and distribution of high-quality drinking water; on system maintenance and improvements; and on water conservation. The Water System produces more than 25 billion gallons of drinking water annually acquired through the 25,000-square-mile watersheds of the American and Sacramento Rivers.

DOU maintains 2 water treatment plants, 28 active ground water wells, storage facilities, and more than 1,500 miles of water mains. DOU operates under legal and policy mandates to ensure that all delivered water meets or exceeds all state and federal drinking water standards. Also critical in times of drought is demand management by way of efforts to increase water efficiency throughout the City with education, incentives, resources, and information for home and business owners. Further, detailed information on the Water System is available online at https://www.cityofsacramento.org/Utilities/Water.

The Water System currently serves a resident population of 525,000 in approximately 203,000 housing units. The total population served is estimated to be up to 25 percent higher on weekdays because of commercial and government employment of surrounding-area residents. Total employment is approximately 307,000 in 83 million square feet of space. All water services to this residential and nonresidential population are provided through 142,000 metered accounts.

The Water System service area is generally contiguous with the incorporated boundaries of the City. The map of the service area is shown in Figure 2-1.

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Figure 2-1. Water System Boundaries and Key System and
Geographic Characteristics

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Growth, Demand, and Allocations
By 2040, the residential unit growth in the Water System service area is expected to change as shown on Table 2-1.

Table 2-1. Housing Units by Type

Housing units are projected to increase by 30.2 percent by 2040. This new growth in housing will constitute 23.2 percent of total housing units by 2040.

Residential unit growth is the best, general driver of demand for water capacity.

In a water utility, the capacity requirements are measured in Equivalent Meters (EMs), or similar. EMs are a measure of delivery volume and are indexed to the volume required of a typical single-family detached home. Meter size varies with the required delivery volume for a land use type. The current and future EM requirements are shown on Table 2-2.

Table 2-2. Equivalent Meter Projection and new Growth Share

2017
American
Community
Survey
As of
April 2022
General
Plan 2040
Net New
Growth
2040
Totals [1] % Change New Share
Units
Single Family Detached 117,570 118,670 11,900 130,570 10.03% 9.11% Single Family Attached 12, 900 13,300 8,700 22,100 66.17% 39.37% Multifamily 64,300 70,600 40 ,600 111,200 57.51% 36.51% Total Housing Units 194,800 202,570 61,200 263,870 30.3% 23.2% Sources: City of Sacramento Community Development Department and EPS water_1 Note:
[1] Totals may not add because of rounding.
2040 General Plan
Size
Current
Count Type
Flow
Factor
Equivalent
Meters
Unit
Increase
Percent
2040
Equivalent
Meters
2040 New
Equivalent
Meters
formula a b c = a * b d e = c * (d + 1) f = e - c
5/8-inch 174 Displacement 1.0 174 30.3% 227 53
3/4-inch 178 Displacement 1.0 178 30.3% 232 54
1-inch 131,511 Displacement 1.0 131,511 30.3% 171,308 39,797

1.25-inch 0 Displacement 1.5 0 30.3% 0 0

1.5-inch 3,910 Displacement 2.0 7,820 30.3% 10,186 2,366 2-inch 4,357 Displacement 3.2 13,942 30.3% 18,162 4,219 3-inch 802 Turbine Class I 7.0 5,614 30.3% 7,313 1,699
4-inch 698 Turbine Class I 12.6 8,795 30.3% 11,456 2,661 6-inch 208 Turbine Class I 26.0 5,408 30.3% 7,045 1,637 8-inch 112 Turbine Class II 56.0 6,272 30.3% 8,170 1,898 10-inch 18 Turbine Class II 84.0 1,512 30.3% 1,970 458
12-inch 0 Turbine Class II 106.0 0 30.3% 0 0
Totals 141,968 -- 181,226 236,067 54,841
New Growth Share of Total 23.2%
Source: DOU, EPS Water_2
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This demand profile of existing and future housing units drives the allocation of current and future shares of existing and future capacity requirements and their costs. The shares for existing system assets are determined under the Buy-In approach. Future shares are determined through the Incremental approach. These approaches are discussed in detail in the Executive Summary. The Water System is using both approaches.

Buy-In Methodology and Fee per
Equivalent Meter
The Buy-In approach is used to determine existing asset shares. Existing assets that will benefit future customers (existing treatment plants, wells, and transmission lines) have been paid for by current rate payers. Future customers will “buy in” to 23.2 percent of these assets by way of a buy-in development impact fee. The assets are depreciated and developer contributions are removed so only the remaining useful life of assets directly paid by rates is allocated.

An option exists in the determination of buy-in development impact fees to include current assets that are systemwide benefits and qualify as assets as defined under Generally Accepted Accounting Principles. These are fairly wide- ranging standards and include all buildings, equipment and improvements, land including easements, equipment, core software, rolling stock and related equipment, and even intangible assets such as franchise licenses. This allowable scope extends to all core functions (i.e., treatment plants, wells, and transmission lines) and to peripheral support functions including corporation yards and administration buildings. Although a broader suite of existing improvements would qualify, the approach used in this study is narrower. The assets included are those unambiguously used for water production, storage, and transmission. Not included are any assets that are not directly used for water system purposes, such as administration buildings or corporation yards and related equipment, all of which are indirectly used. Also not included are local distribution lines or service meters because these items benefit individual developments or parcels, instead of the system as a whole.

To value the included water assets, DOU engaged the engineering firms of West Yost and Carollo to provide estimates of value for the treatment plants, storage facilities, and wells under the general guidance established by the Association for Advancement of Cost Engineering (AACE). City staff developed estimates of value for the transmission mains using essentially the same methodology. The detail of all assets and methodologies is provided in Appendix B-1.

Other assets included are related to rolling stock and software, both of which have been valued from the City’s accounting records.

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The summary results of the water system current asset valuation are shown on Table 2-3.

Table 2-3. Existing Assets

Each component of an asset has been depreciated in accordance with the standard useful life of that component. Treatment plants, for example, have many components with different useful lives. The current value of each component is determined in one of two ways, depending on the circumstances:
 If the original cost and installation date are available, the original cost is depreciated on a straight-line basis for years in service. The remaining value is then adjusted to 2022 dollars using the standard cost adjustment methodology, which is defined in the Executive Summary chapter.  If the original cost is not available but the installation date is known, the replacement cost is estimated in 2022 dollars using the AACE protocols. This value is then depreciated for years in service.

In either case of valuing, each of the components are accumulated into the summaries shown in Table 2-3. Detailed depreciation of the assets and the component depreciation standards can be found in Appendix B-1.

Also, outstanding principal debt has been included as a deduction to asset value because the underlying assets are in service but have not been paid for by current rate payers. All existing and future customers will pay for these debt-financed assets through future rates. Deductions are also made for developer contributions Summary [1] Replacement Cost Depreciation
Current System
Value
Category
Transmission Mains $569,160,101 $334,676,965 $234,483,136 Wells [2] $156,875,500 $141,954,001 $14,921,499
Reservoirs $361,600,000 $234,500,000 $127,100,000
Treatment Plants
Sacramento River $1,218,300,000 $468,000,000 $750,300,000 E. A. Fairbairn $1,079,100,000 $597,100,000 $482,000,000 Software $3,491,478 $1,088,462 $2,403,016
Vehicles $10,102,308 $5,444,536 $4,657,772
Subtotal $1,615,865,423
Less Outstanding Principal Debt ($232,147,747)
Less Developer Contributions ($2,972,534)
Totals $3,398,629,387 $1,782,763,964 $1,380,745,142
Sources: Carollo, West Yost, DOU, City of Sacramento Water_3 Note:
[1] The full detail of the estimates and methodologies are provided in Appendix B-1. [2] The total Current System Value excludes Wells 165, 166 and 167 on the West Yost valuation analysis because these wells are not in service.

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because these assets were not directly funded by rate payers through rates.

The asset values for developer contributions have been depreciated for time in service.

The fee per EM calculation for the proportional share for new growth is shown in Table 2-4.

Table 2-4. Equivalent Meter Buy-In Fee

The fee will be used for a proportional share of capital improvements benefitting new growth. The projects and the process by which they are established is described in the next section under Capital Improvement Projects (CIPs).

The Buy-In fee is combined with the Incremental Fee, discussed below, for the total base Water System Development Impact Fee per EM. The calculation combining the two fees is shown on Table 2-8 later in this chapter. The allocation of the combined fee per EM by meter size is presented in Table 2-9, also later in this chapter.

Incremental Method ology and Fee per
Equivalent Meter
Future asset requirements are allocated through engineering determinations of proportional demands. If an asset has an equal demand from, or benefit to, all users, the allocation percentage for in-common facilities (23.2) is used. If the asset benefits growth more than existing customers, or vice versa, the allocation is adjusted accordingly. The capital improvement plan presented below details future projects and the specific allocation used.

Capital Improvement Program
DOU maintains Capital Improvement Program (CIP) plans for the Water System.

The CIP includes projects that are expected to be complete from within the next year to projects expected to be programmed for implementation as far into the future as 30 years. Because the planning horizon for the purpose of this study is Current System
2022 Value $1,380,745,142
New Growth Share % 23.20%
New Growth Share $320,332,873
Future Equivalent Meters 54,841
Fee per Equivalent Meter $5,841
Source: DOU, EPS Water_4
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2040, or 18 years, anticipated annual expenditures after this date are not included.

The CIP draws on documents and processes as follows:
 Updated facility plans and the related short-term projects adopted through the annual budget process.
 The Water Supply Master Plan of 2013 and an update currently underway.

Both plans are consistent with the demand projections in the 2035 General Plan Update and 2040 General Plan, respectively.
 CIPs and projects to implement the Master Plans and adapt the water system to future demand requirements and best practices.
 Other facility cost estimates and updated assessments of facility needs and costs as of September 2022. Related projects are incorporated into the formal CIP as appropriate.

In all aspects of the CIP planning and implementation process, the City is required by state law to provide safe, clean, affordable, and accessible water. Long-range water demand projections have identified a potential shortage of water treatment capacity within approximately the next 18 years. To prepare for and meet projected demand, the City needs to develop additional capacity, both in terms of quantity and quality.

To achieve the objectives of state law efficiently and effectively, a key methodology used by DOU is the Water+ Programmatic Approach.

The elements of this program guide the identification of system needs and subsequent actions and projects:
 Align the City’s water treatment capacity with the City’s continued growth and economic development.
 Protect the City’s drinking water against anticipated climate change impacts and other risks.
 Maintain water supply resiliency through conjunctive use of surface and groundwater supplies.
 Expand the community’s confidence in its affordable, safe, clean, and reliable drinking water.
 Engage the community in support of long-range planning for drinking water infrastructure.
 Equitably balance funding needs through development impact fees, customer water rates, grants, and loans.

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The CIP consists of 21 project types, or cost centers, for multiple individual projects of the same type, and totals $1,922,485,841. All proposed projects, costs, allocations, and descriptions are included in Appendix B-2. Major projects are discussed below.

Resiliency Projects, as a category of projects, are increasingly important because of changing regulations, continuing climate change, wildfires in the watershed, river pollution and algal toxins, among other risks impacting the City’s ability to reliably deliver high-quality drinking water. Development and implementation of Resiliency Projects will help protect the City’s water supply from these risks.

For the purposes of this study, Resiliency Projects address demand common to all customers; thus, costs will be shared proportionately:
 Ozone treatment capability in both water treatment plants to implement available technologies to enhance the capacity to mitigate risks from chemical contaminants, viruses, bacteria, and other microorganisms and to improve taste and smell. Ozone treatment will also provide for compliance with key anticipated future regulations.
 Fairbairn rehabilitation to provide 100 million gallons per day (mgd) firm and 120-mgd hydraulic capacity.
 Replacement of the chlorine gas system with a safer means of chlorine disinfection.
 Replacement of quicklime slaking to a delivered hydrated lime slurry to reduce on-site waste production.
 Elimination of hazardous chlorine gas and lime grit at both water treatment facilities.

All of the Resiliency Projects have a cost of $960,684,609. The proportional share for new growth is 23.2 percent, or $222,878,829
The RiverArc Project is also a Resiliency Project, in a sense, that will provide significantly improved backup and flexibility to water sources available for existing customers, new growth, and to surrounding communities. The project will divert water through an existing water intake structure from the Sacramento River to offset water currently diverted from the American River. Reduction of draws from the American River has been identified as a potential mitigation measure for climate change impacts to water supply in the American River watershed as described in the American River Basin Plan. In 2015 and 2021, Folsom Reservoir levels were very close to not being able to access municipal water supply intakes.

The flow of the Sacramento River, which is many times the size of the American River, has the capacity to reduce reliance on the American River. The proposed action will provide 30 mgd of additional water supply capacity to the City.

Demand for water from new growth is estimated to require 22 mgd.

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In addition, RiverArc will help facilitate the recharge of the groundwater storage basin via “direct” or “in-lieu” recharge in wet years for use in years when surface water supplies are depleted due to drought-like conditions and the water supply demands of the City, the region, and potentially other areas in northern California are strained. On the whole, RiverArc will better secure the ability to accommodate growth in the City and will benefit regional water suppliers, increase the sustainability of regional groundwater supplies, and provide additional environmental protection of the American River Watershed. The flexibility provided by RiverArc could allow for water to be delivered through raw water pipelines to a new regional water treatment plant, where it will be distributed through new and existing pipelines to the regional partners.

The estimated cost of RiverArc is $220,000,000 for an additional 30 million gallons of capacity. All other costs related to regional River Arc partners are excluded from this report because these other costs are not attributable to new growth in the City. The portion attributable to City new growth is 22 million gallons, or 73.33 percent of the 30-million-gallon capacity. The remaining capacity, 8 million gallons, addresses demand common to all customers because of the resiliency benefits. The 8-million-gallon portion will be shared proportionately between existing development and new growth. The calculations of attributable benefits and costs are shown in Table 2-5.

Table 2-5. RiverArc Capacity, Benefit, and Cost Allocation

The RiverArc project is proposed for completion towards the end of this decade.

Capacity
Allocation
[1]
Proportional
Benefit
Allocation Cost
New Growth and Shared Allocation formula
Capacity and Total Cost a 30.0 100.00% 220,000,000
New Growth b = (22 / 30) * a 22.0 73.33% 161,333,333
Existing Development - - - - Shared c = (8 / 30) * a 8.0 26.67% 58,666,667
Shared Allocation
Shared c 8.0 100.00% 58,666,667
New Growth d = c * 23.2 1.9 23.20% 13,610,667
Existing Development e = c - d 6.1 76.80% 45,056,000
New Growth and Existing Development Allocation
New Growth f = b + d 23.9 79.52% 174,944,000
Existing Development g = e 6.1 20.48% 45,056,000
Capacity and Total Cost h = f + g = a 30.0 100.00% 220,000,000 Sources: DOU, EPS Water_5
Note:
[1] In millions of gallons per day, rounded to the nearest tenth.

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An alternative to the RiverArc project, termed the Sacramento River Water Treatment Plant (SRWTP), is under consideration as a substitute for allocation to new growth but is not incorporated in any of the calculations at this time. The capital project summary for the SRWTP alternative is provided in Appendix B-2.

Although it involves a more complex governance option, RiverArc is the preferred alternative for allocation as it provides a potentially greater global benefit and the potential for reduced initial investment than SRWTP expansion. Essentially, the SRWTP focuses on capacity improvements. These are the major components:
 The development of an additional 75 million gallons per day (mgd) of increased capacity at the SRWTP. The 75 mgd project could be completed as one project or broken into two phases.
 Capacity improvements across the water main transmission system.  The addition of a new or replacement intake structure within the Sacramento River with a facility to support the additional supply needs.

The total cost is estimated at $493.8 million, with $195.9 million allocable to new growth, compared with the $174.9 million allocable from the RiverArc project.

Should the SRWTP become the priority for allocation, the Nexus Study can be amended.

A final category of capital planning and the Water+ Programmatic Approach is improvements to the distribution system at an estimated cost of $740,687,970.

These projects are also detailed in Appendix B-2. None of these projects are being allocated to the incremental portion of the Water System development impact fee. There are capacity-related projects in the distribution system improvements that could be funded with a proportional share from the Buy-In development impact fee or other sources.

A summary of all CIPs, costs, and proportional shares is shown on Table 2-6 below.

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Table 2-6. CIP Summary of Proportional Allocations and Costs

Capital Costs, Alloca tion, and Cost per
Equivalent Meter
All CIP Costs, the allocation of these costs to existing and future customers, and the cost per EM is shown in Table 2-7.

Table 2-7. Future Demand Shares

As shown, the cost per EM for future customers is $7,259. The allocation of the per EM fee by meter size is presented in Table 2-9 on the next page.

Projects [1] Estimated Cost Existing New Existing New
formula a b c d = a * b e = a * c
Resiliency [2] $960,684,609 76.8% 23.2% $737,805,780 $222,878,829 RiverArc [3] $220,000,000 20.5% 79.5% $45,056,000 $174,944,000 Distribution [4] $740,687,970 100.0% - $740,687,970 -
Annual Misc. [5] $1,113,262 76.8% 23.2% $854,985 $258,277 Total Long-Term $1,922,485,841 7 9.29% 20.71% $1,524,404,735 $398,081,106 Sources: DOU, EPS Water_6
Notes:
[1] Excludes the Water Meter Program, all of which is allocated to Existing. [2] See Appendix B-2.
[3] From Table 2.5 and Appendix B-2.
[4] See Appendix B-2.
[5] See Appendix B-2.
[6] Totals may not agree with detailed allocations and numbers due to rounding effects.

Proportional Allocation
Percent Cost
Totals %$ % $
formula a b c = a * b d e = a * d
Demand Shares
Future Assets [1] $1,922,485,841 79.29% $1,523,549,750 20.71% $398,081,106 2040 Equivalent Meters [2] 236,067 181,226 54,841
Cost per Equivalent Meter $8,144 $8,407 $7,259
Sources: DOU, EPS Water_7
Notes:
[1] See Table 2-6.
[2] From Table 2-4.

Proportional Allocation
Current Development New Growth
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Water System Development Impact Fee
The cost and fee for per EM for the benefits of the existing system and the future requirements are shown on Table 2-8. Future customers will pay their share through the development impact fee.

Table 2-8. Equivalent Meter Buy-In and Future Cost Allocation

The total fee by meter size is shown on Table 2-9.

Table 2-9. Buy-In and Future Cost Fee Schedule for New Development

Current System
Future Capital
Costs Totals
Source: Table 2-4 Table 2- 7
2022 Value $1,380,745,142 $1,922,485,841 $3,303,230,982 New Growth Share % 23.20% 20.71% 21.7%
New Growth Share $320,332,873 $398,081,106 $718,413,979 Future Equivalent Meters 54,841 54,841 54,841
Fee per Equivalent Meter $5,841 $7,259 $13,100
Source: DOU, EPS Water_8
Size Base Fee w/ Admin
formula a a c d = a * c e = d * 1.03
5/8-inch 1.0 1.0 $13,100 $13,100 $13,493
3/4-inch 1.0 1.0 $13,100 $13,100 $13,493
1-inch 1.0 1.0 $13,100 $13,100 $13,493

1.25-inch 1.5 1.5 $13,100 $19,650 $20,239

1.5-inch 2.0 2.0 $13,100 $26,200 $26,986
2-inch 3.2 3.2 $13,100 $41,920 $43,177
3-inch 7.0 7.0 $13,100 $91,699 $94,450
4-inch 12.6 12.6 $13,100 $165,059 $170,011
6-inch 26.0 26.0 $13,100 $340,598 $350,816
8-inch 56.0 56.0 $13,100 $733,595 $755,603
10-inch 84.0 84.0 $13,100 $1,100,393 $1,133,405
12-inch 106.0 106.0 $13,100 $1,388,591 $1,430,249
Sources: DOU, EPS Water_9
Fee Per Meter
Fee Per
Equivalent
Meter
Flow
Factor
Equivalent
Meters
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Comparison with Surrounding
Communities
The comparison of the water fee with surrounding jurisdictions is shown on the following two tables. Table 2-10 shows comparative information by typical meter size for single-family residential, retail, and office uses. Table 2-11 includes the single-family land use and office and retail uses on a per 1,000 square foot basis and on a per acre basis. For both tables, complete comparative information in chart form is presented as Appendix B-3. High-level summaries for all fees in all jurisdictions, but on a narrower set of comparables for water fees, are presented in Chapter 1, the Executive Summary.

Table 2-10. Fee Comparisons by Land Use and Meter Size

Jurisdiction
Single
Family Retail Office
Typical: 1-inch meter
Sacramento $13,493 $86,355 $86,355
Sacramento County - Uninc. $19,535 $178,536 $178,536
Folsom $4,647 $56,516 $56,516
Orangevale $8,813 $58,398 $58,398
Roseville $7,366 $123,077 $123,077
Rocklin $19,987 $319,792 $319,792
Lincoln $17,634 $358,360 $368,501
West Sacramento $18,006 $125,723 $125,723
Woodland $5,770 $36,926 $36,926
Stockton $11,542 $86,939 $86,939
Average Excluding Sacramento $12,589 $149,363 $150,490
Sacramento +/- Percent [1] 7% -42% -43%
Source: EPS Water_10a
Note:

Site Specific
2, 2-inch meters
[1] Retail and Office uses have similar percent differences because all entities typically use 2, 2-inch meters for these land uses.

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Table 2-11. Fee Comparisons by Land Use and Area

The proposed fee in Sacramento is on par with the average for single-family land uses and significantly less for nonresidential land uses.

Jurisdiction
Single
Family Retail Office
Single
Family [2] Retail Office
per unit
Sacramento $13,493 $7,930 $5,664 $94,450 $86,355 $86,355 Sacramento County - Uninc. $19,535 $16,394 $11,710 $136,745 $178,536 $178,536 Folsom $4,647 $5,190 $3,707 $32,529 $56,516 $56,516
Orangevale $8,813 $5,363 $3,830 $61,691 $58,398 $58,398 Roseville $7,366 $11,302 $8,073 $51,561 $123,077 $123,077 Rocklin $19,987 $29,366 $20,975 $139,909 $319,792 $319,792 Lincoln $17,634 $32,907 $24,170 $123,436 $358,360 $368,501 West Sacramento $18,006 $11,545 $8,246 $126,042 $125,723 $125,723 Woodland $5,770 $3,391 $2,422 $40,390 $36,926 $36,926
Stockton $11,542 $7,983 $5,702 $80,797 $86,939 $86,939
Average Excluding Sacramento $12,589 $13,716 $9,871 $88,122 $149,363 $150,490 Sacramento +/- Percent [3] 7% -42% -43% 7% -42% -43%
Source: EPS Water_10b
Note:
[2] Based on 7 units per acre.
[3] Retail and Office uses have similar percent differences because all entities use 2, 2-inch meters for these uses.

Site Area Per Acre
per 1,000 sq. ft. [1]
[1] City of Sacramento’s water fee is assessed based on meter size. The Retail and Office fee values listed in this table are for comparative purposes only to allow comparison across all jurisdictions by area for a hypothetical development of a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail, and 35 percent for Office. This construct is for comparative purposes only and is used to compare fees of all types across juridictions. This methodology is used in the Executive Summary tables.

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Nexus Findings
For the Water System Utility, this section addresses the following requirements of the Mitigation Fee Act (California Government Code section 66000 et seq.).

Per California Government Code Section 66001

1. Identify the purpose of the fee.

2. Identify how the fee is to be used.

3. Determine how a reasonable relationsh ip exists between the fee’s use and the type of development project on which the fee is imposed.

4. Determine how a reasonable relationship exists between the need for the facility and the type of development project on which the fee is imposed.

5. Demonstrate a reasonable relationship between the amount of the fee and the cost of the facility or portion of the facility attributable to the development on which the fee is impose.

The Water System Development Impact Fee applies to all development in the service area in proportion to the measured expectation of water flow by land-use type.

1. Purpose of the Fee
The purpose of the Water System Development Impact Fee is to fund capacity improvements to accommodate projected new residential and non-residential development as detailed in Chapter 2.

2. Use of Fee
The Water System Development Impact Fee will be used to fund water facilities needed to secure, treat, store and transmit water for demand generated by development in the service area.

3. Reasonable Relationship between Use of Fee and Type of Development on Which the Fee is Imposed
The Water System Development Impact Fee varies by development type based on measured expectation of water demand by development type as measured by delivery volume requirements. This proportional fee will be used to fund capital projects identified in Chapter 2 and Appendix B. All improvements are designed to meet Federal, State and City requirements for standards of service in the most cost-effective manner to accommodate projected new residential and nonresidential development in the service area.

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A reasonable relationship therefore exists between the use of the Water System Development Impact Fee and the type of development on which the fee is imposed.

4. Reasonable Relationship between Need for Facility and Type of Project on Which the Fee is Imposed
New residential and nonresidential projects in the service area are required to connect to the City’s water system. New residents, employees, and patrons of the new developments will generate demand for increased water supply, treatment, storage and delivery. The water facilities needed to accommodate this demand were determined through the standards and criteria of the City’s capital planning process, the Water+ Programmatic Approach as described in Chapter 2.

A reasonable relationship therefore exists between the need for water facilities and new residential and nonresidential development projects on which the Water System Development Impact Fee is imposed because the portion of water facilities funded by the Water System Development Impact Fee is based on the amount of water demand generated by projected residential and non-residential development.

5. Reasonable Relationship between Amount of Fee and Cost of Facilities or Portion of Facilities Attributed to Development on Which Fee is Imposed The total cost of water facilities attributable to development and funded by the Water System Development Impact Fee is allocated by development type based on measured expectation of water demand by development type as measured by delivery volume requirements. Requirements are indexed in Equivalent Meters where an Equivalent Meter of one is the volume requirement of a typical single- family home. Higher, typical volume requirements equate to higher expected Equivalent Meter requirements. The Water System Development Impact Fee is based on a per Equivalent Meter basis, so is therefore both proportional to the expected demand and proportional with the cost of required facilities.

A reasonable relationship therefore exists between the amount of the Water System Development Impact Fee and the cost of the water facilities attributed to the residential and nonresidential development on which the fee is imposed because the costs are allocated based on the demand generated by new development for water facilities as measured by the demand generated by each development type.

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Per California Government Code Section 66013

1. Subsection (a): Notwithstanding any other provision of law, when a local agency imposes fees for water connections or sewer connections, or imposes capacity charges, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, unless a question regarding the amount of the fee or charge imposed in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue.

Finding on the Base Fee: The capital cost portion of Water System Development Impact Fee (Base Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. Costs are estimated for new and improved facilities necessary to accommodate the demand created by the water requirements from projected new residential and non-residential development. Future, periodic updates to the Water System Development Impact Fee will re-evaluate the costs expended and future needs and costs to ensure that the Base Fee has not and does not exceed the estimated reasonable cost of providing appropriate capital improvement services.

Finding on the Administrative Component: The administrative cost portion of Water System Development Impact Fee (Administration Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. The Administration Fee funds City costs associated with fee program administration and implementation including collection and accounting, annual reporting, capital planning, periodic updates to the Water System Development Impact Fee, and other related costs.

2. Subsection (c): A local agency receiving payment of a charge as specified in paragraph (3) of subdivision (b) shall deposit it in a separate capital facilities fund with other charges received, and account for the charges in a manner to avoid any commingling with other moneys of the local agency, except for investments, and shall expend those charges solely for the purposes for which the charges were collected. Any interest income earned from the investment of moneys in the capital facilities fund shall be deposited in that fund.

Finding: The City of Sacramento and the Department of Utilities has the systems in place to ensure compliance with Subsection c in accordance with Generally Accepted Accounting Principles, the Government Accounting Standards Board best practices and Generally Accepted Auditing Standards.

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3. Subsection (d): For a fund established pursuant to subdivision (c), a local agency shall make available to the public, within 180 days after the last day of each fiscal year, the following information for that fiscal year:
(1) A description of the charges deposited in the fund. (2) The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund.
(3) The amount of charges collected in that fiscal year. (4) An identification of all of the following:
(A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used.
(B) Each public improvement on which charges were expended that was completed during that fiscal year.
(C) Each public improvement that is anticipated to be undertaken in the following fiscal year.
(5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan.

Finding: The requirements of Subsection d are acknowledged and consistent with existing systems and practices.

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The Separated Sewer System Utility
Introduction and Description
The Separated Sewer System (Separated System) provides wastewater services to approximately 50,600 commercial and residential properties located in the City.

The Separated System includes approximately 813 miles of pipe and 32 wastewater pump stations in 40 sewer basins. This system is administered by DOU to provide safe and reliable collection and conveyance of wastewater and ensures the wastewater systems comply with all state and federal regulations.

The residential and commercial customers that receive service from the Separated System constitute approximately 33 percent of the total residential and commercial properties in the City. The balance is served by the City’s Combined Sewer System or the Sacramento Area Sewer District (SASD), a separate entity not under control of the City. All of the effluent from the City systems and SASD are delivered to a regional treatment facility owned and operated by the Sacramento Regional County Sanitation District.

On the map below (Figure 3-1) the boundaries of the Separated System are the basins in color that are outside of the red line encircling the Combined Sewer System (labeled “Combined”).

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Figure 3-1. Separated Sewer System Utility Boundaries and Key System and Geographic Characteristics

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Growth and Demand
For this study, the primary concern for the Separated System is the ability to accommodate growth through capacity improvements required for that growth.

The existing system, in contrast, will be maintained and improved by existing rate payers. For new growth, an incremental approach to improvements is appropriate. Capital requirements for new growth are identified through a consistent methodology to evaluate the hydraulic capacity of infrastructure in each basin of the Separated System, termed the Master Planning Dynamic Model (Dynamic Model). This process identifies improvements that will be needed to increase system capacity to accommodate projected sewer flows from new development. The infrastructure is of general benefit, or for use in common, and so excludes local collection lines. Also excluded are developments that are self-funding improvements through Mello-Roos districts or other funding agreements. The infrastructure that remains for this study is in basins without such agreements and includes pipes that serve relatively large tributary areas, manholes along backbone pipes, and pump stations.

The main driver to determine capital requirements is the projected new growth as of 2040 by each basin in the Separated System. The projections by land use are shown on Table 3-1.

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Table 3-1. 2040 Projected Growth in Land Use

Basin
Single
Family
Detached
Single
Family
Attached Multifamily
Food and
Retail Office
Manufacturing
and Other
Total
Commercial
[1]
6- - - - - - -
21 23 8 29 4 4 12 20
36 2 0 0 0 0 1 1
40 6 0 1 0 0 3 4
42 - - - - - - -
45 15 98 395 8 8 27 43
49 2 0 0 0 0 0 0
53 - - - - - - -
55 91 10 23 15 0 59 74
57 1 0 0 0 0 1 1
79 8 0 2 0 0 4 5
80 37 26 102 6 12 36 54
81 3 0 0 0 0 2 2
84 0 4 17 0 0 3 3
85 735 12 89 11 14 100 125
87 246 34 66 33 18 158 210
105 43 0 0 0 0 0 0
106 174 0 0 1 3 13 17
119 287 75 363 26 12 112 150
120 39 0 2 0 0 7 8
121 20 2 5 4 0 13 17
122 - - - - - - -
127 - - - - - - -
131 23 3 7 1 4 15 19
134 7 0 1 0 0 6 6
135 20 3 6 4 0 15 19
136 - - - - - - -
137 67 6 12 5 16 37 58
143 - - - - - - -
145 - - - - - - -
146 27 4 8 3 4 17 24
G301 380 28 64 80 63 637 780
G302 188 9 27 35 10 172 217
G303 631 108 354 92 44 358 494
G304 53 226 810 61 79 438 578
G305 53 83 312 74 125 211 410
G306 - - - - - - -
G354 279 165 582 25 12 63 99
G355 - - - - - - -
Totals 3,460 904 3,277 486 428 2,523 3,437
Sources: City of Sacramento Community Development Department and EPS Separated_1 Note:
[1] Totals may not add due to rounding.

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There are 29 basins in the Separated System that are projected to have some level of growth and 10 basins that have no projected growth. The calculated fees will apply to all of these basins because actual growth will always vary from projected growth. Growth may occur in any of the basins and may require accommodation.

The common indicator of demand for wastewater services is Equivalent Standard Dwelling (ESD) or equivalent, where an ESD of 1 is the expectation of average sanitary flow from a single-family detached home using average daily winter water-use data. This data is used to factor the ESDs for any land use. The projection of growth for both residential units and nonresidential square feet by land use then determines the ESD demands by basin. In ESD terms, both the existing and new growth demands by basin are shown on Table 3-2.

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Table 3-2. Existing and Projected Equivalent Standard Dwellings

Basin Number Existing
Growth
2023-2040
2040
Land Use
6 145 - 145
21 4 ,326 67 4 ,393
36 115 2 117
40 553 8 561
42 222 - 222
45 1 ,437 400 1 ,837
49 251 2 253
53 175 - 175
55 9
,692 144 9 ,836
57 119 1 120
79 126 11 137
80 2 ,369 153 2 ,522
81 29 4 33
84 8 16 24
85 3
,750 692 4 ,442
87 2,614 398 3,012
105 545 100 645
106 787 154 941
119 9
,650 642 10 ,292
120 905 45 950
121 649 42 691
122 110 - 110
127 94 - 94
131 362 36 398
134 153 10 163
135 962 34 996
136 570 - 570
137 4
,043 110 4 ,153
143 103 - 103
145 587 - 587
146 575 45 620
G301 2
,431 542 2 ,973
G302 1,032 436 1,468
G303 7 ,741 1 ,162 8 ,903
G304 2 ,482 1 ,006 3 ,488
G305 1 ,108 542 1 ,650
G306 Flood plain (no infrastructure) -
G354 6 ,859 1 ,014 7 ,873
G355 Executive Air port (county maintained) -
Totals 67 ,681 7 ,818 75 ,499
Share of 2040 ESDs 90% 10% 100%
Sources: City of Sacramento DOU and Community Development Department and EPS. Separated_2 Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 38
Incremental Method ology and Fee per
Equivalent Standard Dwelling
As noted above, DOU employs a consistent methodology to evaluate the hydraulic capacity of infrastructure. Both existing and future demand in each basin are evaluated to identify improvements that will be needed to increase system capacity to accommodate both existing and projected sewer flows. Improvements required for either the existing system or new growth can be isolated and identified by basin.

The methodology is maintained through the modelling of existing land uses, projected land uses, peak flows, existing and needed infrastructure, and costs.

Recently, the model was refined with the introduction of variations in flows by time of day, along with other variations (e.g., flow regulators, parallel pipes, cycling of pumps, tailwater changes, and other items). The use of this “dynamic” hydraulic modeling allows for an improved alternative analysis to determine the recommended capacity improvements where benefits and costs for each alternative can be evaluated and compared efficiently. The current results of the modelling in terms of improvement costs are depicted on Table 3-3.

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Table 3-3. System Value and Improvement Costs

Estimated
Basin Existing Value [2] To Existing System New Growth Only 2040 System funding: Existing Rate Payers Future Growth Value
formula: a b c d = a + b + c
6 $2,788,513 - - $2,788,513
21 $110,542,909 - - $110,542,909
36 $2,723,943 - - $2,723,943
40 $14,969,841 - - $14,969,841
42 $8,103,581 - - $8,103,581
45 $21,646,974 $1,466,299 $300,867 $23,414,141
49 $5,950,988 - - $5,950,988
53 $6,928,764 - - $6,928,764
55 $204,051,780 $33,105,049 - $237,156,829
57 $2,672,238 - - $2,672,238
79 $3,287,494 - - $3,287,494
80 $20,790,981 - $4,012,490 $24,803,471
81 $1,080,586 - - $1,080,586
84 $2,359,483 - - $2,359,483
85 $78,882,442 $5,262,718 $588,644 $84,733,804
87 $45,242,858 $6,150,946 $30,548 $51,424,352
105 $7,644,179 - - $7,644,179
106 $18,651,957 $796,891 $237,994 $19,686,842
119 $250,984,661 $12,098,758 - $263,083,419
120 $16,472,674 - - $16,472,674
121 $20,186,677 $1,141,364 - $21,328,041
122 $3,564,001 - - $3,564,001
126 $1,200,980 - - $1,200,980
127 $3,360,372 - - $3,360,372
131 $3,300,596 - - $3,300,596
134 $3,640,660 - - $3,640,660
135 $26,203,942 - - $26,203,942
136 $15,231,501 - - $15,231,501
137 $87,165,355 $1,904,134 $145,815 $89,215,305
143 $2,389,704 - - $2,389,704
145 $10,910,560 - - $10,910,560
146 $14,242,145 - - $14,242,145
G301 $54,405,797 $1,783,252 $11,331,639 $67,520,689
G302 $23,313,834 $7,287,154 $2,978,144 $33,579,132
G303 $169,438,820 $3,463,134 $4,542,548 $177,444,502
G304 $52,967,474 $4,510,374 $1,235,754 $58,713,602
G305 $24,328,171 $498,192 $834,516 $25,660,879
G306 Flood plain (no infrastructure) --
G354 $147,586,496 $7,022,097 $107,903 $154,716,496
G355 Ex. Air port - - -
Totals $1,489,213,934 $86,490,363 $26,346,863 $1,602,051,159 Source: DOU Separated_3
Notes:
[2] Estimated replacement value. Does not include depreciation or outstanding debt principal.

Improvements Required
[1] The main document initiating the methodolgy used is the Technical Memorandum, Department of Utilities, November 18, 2009, included in Appendix C-1.

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Only the New Growth costs, or $26,346,863, are being used to calculate a base fee for new growth. A sample of the improvements and costs for one basin are included as Appendix C-2.

The base fee per ESD is shown on Table 3-4.

Table 3-4. Improvement Cost per ESD

The new growth share of planning costs is calculated on Table 3-5.

Table 3-5. Cost per ESD with Planning Costs

Planning costs involve ongoing hydraulic capacity analysis of peak flows associated with existing and projected land uses utilizing dynamic modeling approach. Hydraulic model results are utilized to assess alternative capital improvement projects to best address capacity issues for both existing and growth scenarios. Routine updates to flow input data and analysis are also conducted to ensure more accurate costing of capacity improvements to support growth. Planning costs of $6,850,000 are shared by existing and new development at a cost of $91 per ESD. The base and planning fee per ESD for new growth is $3,461.

The schedule of the fee by land use is shown on Table 3-6. A further detailed schedule is included as Appendix C-3.

Reference Cost
New Development Cost Allocation formula
Improvement Cost to Serve Growth Only Table 3 a $26,346,863 Improvement Cost per ESD
New Development ESDs Table 2 b 7,818
Improvement Cost per ESD c = a / b $3,370
Sources: DOU and EPS Separated_4
Item Reference Factors
formula
2040 Existing and New ESDs [1] Table 3-2 a 75,499
Master Planning Cost b $6,850,000
Master Planning Cost per ESD c = b / a $91
Improvement Cost per ESD Table 3-4 d $3,370
Total Cost per ESD e = c + d $3,461
Sources: DOU and EPS Separated_5
Notes:
[1] Planning costs are spread to all customers. The "non-fee funding requirement" amount is included on Table 3-7.

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Table 3-6. Development Impact Fee Schedule

ESD Factor
Cost per
ESD
Cost by Land
Use and
Factor
Administrative
Fee (3%) Fee
Residential
formula: a b c = a * b d = c * .03 e = c + d
Single Family Dwelling 1.00 per dwelling $3,461 $3,461 $104 $3,565 Apartment 0.66 per dwelling $3,461 $2,284 $69 $2,353
Hotel/Motel 0.43 per room $3,461 $1,488 $45 $1,533
Duplex 0.83 per dwelling $3,461 $2,873 $86 $2,959
College Dorm or Boarding House 0.4 per bed or resident $3,461 $1,384 $42 $1,426 Nonresidential
Retail 0.53 per 1,000 sq. ft. $3,461 $1,834 $55 $1,889
Dine-in Restaurant 1.77 per 1,000 sq. ft. $3,461 $6,126 $184 $6,310 Office (single story) 0.33 per 1,000 sq. ft. $3,461 $1,142 $34 $1,176 Hospital 1.62 per bed $3,461 $5,607 $168 $5,775
K-12 Schools 3.96 per 100 students $3,461 $13,706 $411 $14,117 Heavy Industrial 0.30 per 1,000 sq. ft. $3,461 $1,038 $31 $1,069 Colleges & Universities 0.76 per 1,000 sq. ft. $3,461 $2,630 $79 $2,709 Church 0.22 per 1,000 square feet $3,461 $761 $23 $784
Other Non-Residential 1.00 per 12,000 gal. (water/user/mo.) $3,461 $3,461 $104 $3,565 Sources: DOU and EPS Separated_6
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The following Table 3-7 is informational only and calculates the total cost of improvements by 2040 to improve the existing system and to mitigate the impacts of new growth.

Table 3-7. 2040 Estimated Capital Requirements

Reference Costs
Total Funding Requirement
Formula
Improvements to Accommodate New Growth aT a b l e 3 . 3 $26,346,863 Improvements to the Existing System bT a b l e 3 . 3 $86,490,363 Master Planning Costs cT a b l e 3 . 5 $6,850,000
Total Funding Required d = a + b + c $119,687,225
Funding Elements
Development Impact Fee
New Growth ESDs eT a b l e 3 . 2 7,818
Cost per ESD f Table 3.5 $3,461
Development Impact Fee Revenue g = e * f $27,058,301
Non-Fee Revenue Requirement
Total Funding Required d $119,687,225
Non-Fee Revenue Requirement h = d - g $92,628,924
Sources: DOU and EPS Separated_7
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Comparison with Surrounding
Communities
The comparison of the Separated Sewer fee with surrounding jurisdictions is shown on Table 3-8. The table includes a single-family land use and office and retail uses on a per 1,000 square foot basis and the same land uses on a per acre basis. Complete comparative information in chart form is presented as Appendix C-4, and high-level summaries are in Chapter 1, the Executive Summary.

Table 3-8. Fee Comparisons

The proposed fee in Sacramento appears high for retail because of very low fees in Roseville and Folsom.

Jurisdiction [1]
Single
Family Retail Office
Single
Family [2] Retail Office
per unit
Sacramento $3,565 $1,889 $1,176 $24,954 $20,575 $17,935 Sacramento County - Uninc. $3,194 $2,053 $1,467 $22,360 $22,360 $22,360 Folsom $1,073 $316 $226 $7,511 $3,438 $3,438
Roseville $447 $149 $149 $3,129 $1,623 $2,272
West Sacramento $7,011 $2,078 $2,078 $49,077 $22,629 $31,681 Woodland $7,125 $2,908 $1,744 $49,875 $31,668 $26,589
Average Excluding Sacramento $3,770 $1,501 $1,133 $26,390 $16,344 $17,268 Sacramento +/- Percent [3] -5% 26% 4% -5% 26% 4%
Source: EPS Separated_8
Note:
[2] Based on 7 units per acre.

Site Area Per Acre
per 1,000 sq. ft. [3]
[1] Does not include regional sewer fees. See table sets 1.5 and 1.6 in the Executive Summary and Appendix A-2 for comparative details that include regional sewer fees.
[3] Comparisons for Retail and Office land uses are based on the assumption of a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail, and 35 percent for Office. This construct is for comparative purposes only.

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Nexus Findings
For the Separated Sewer System Utility, this section addresses the following requirements of the Mitigation Fee Act (California Government Code section 66000 et seq.).

Per California Government Code Section 66001

1. Identify the purpose of the fee.

2. Identify how the fee is to be used.

3. Determine how a reasonable relationsh ip exists between the fee’s use and the type of development project on which the fee is imposed.

4. Determine how a reasonable relationship exists between the need for the facility and the type of development project on which the fee is imposed.

5. Demonstrate a reasonable relationship between the amount of the fee and the cost of the facility or portion of the facility attributable to the development on which the fee is impose.

The Separated Sewer System Development Impact Fee applies to all development in the service area in proportion to the measured expectation of sanitary sewer flow by land use type.

1. Purpose of the Fee
The purpose of the Separated Sewer System Development Impact Fee is to fund capacity improvements to accommodate projected new residential and non- residential development as detailed in Chapter 3.

2. Use of Fee
The Separated Sewer System Development Impact Fee will be used to fund sewer facilities needed to convey sanitary sewage generated by development in the service area to trunk lines for the regional treatment facility owned and operated by the Sacramento Regional County Sanitation District.

3. Reasonable Relationship between Use of Fee and Type of Development on Which the Fee is Imposed
The Separated Sewer System Development Impact Fee varies by development type based on measured expectation of sanitary sewer flows by development type. This proportional fee will be used to fund sanitary sewer facilities identified in Chapter 3, Appendix C and as set forth in the Dynamic Model (included by reference herein), which are designed to accommodate expected sanitary flows from new residential and nonresidential development in all basins with projected growth.

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A reasonable relationship therefore exists between the use of the Separated Sewer System Development Impact Fee and the type of development on which the fee is imposed.

4. Reasonable Relationship between Need for Facility and Type of Project on Which the Fee is Imposed
New residential and nonresidential projects in the service area are required to connect to the City’s sewer system. New residents, employees, and patrons of the new developments will generate increased sewer flows. Sewer facilities needed to accommodate this demand were determined based on the modelling of sewage generated by projected residential and nonresidential development by basin as set forth in Chapter 3, Appendix C and the Dynamic Model.

A reasonable relationship therefore exists between the need for sanitary sewer facilities and new residential and nonresidential development projects on which the Separated Sewer System Development Impact Fee is imposed because the portion of sewer facilities funded by the Separated Sewer System Development Impact Fee is based on the amount of sewage generated by projected residential and non-residential development.

5. Reasonable Relationship between Amount of Fee and Cost of Facilities or Portion of Facilities Attributed to Development on Which Fee is Imposed The total cost of sanitary sewer facilities funded by the Separated Sewer System Development Impact Fee is allocated amongst the projected new residential and nonresidential land uses in the service area based on the proportional demand each land use is anticipated to generate for the sanitary sewer facilities. The cost of sanitary sewer facilities is allocated to residential and nonresidential land uses based on the estimated proportionate demand each land use is anticipated to generate for the facilities. Demand for sewer facilities is measured by sewage generation rates for each land use category.

A reasonable relationship therefore exists between the amount of the Separated Sewer System Development Impact Fee and the cost of the sanitary sewer facilities attributed to the residential and nonresidential development on which the fee is imposed because the costs are allocated based on the demand generated by new development for sanitary sewer facilities as measured by the sewage generated by each development type.

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Per California Government Code Section 66013

Finding on the Base Fee: The Separated Sewer System Development Impact Fee for capital improvements (Base Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. Costs are estimated for new facilities necessary to accommodate the demand created by modelled sewer flows from new residential and non-residential development by location and land use type.

Finding on the Administrative Component: The administrative cost portion of Separated Sewer System Development Impact Fee (Administration Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. The Administration Fee funds City costs associated with fee program administration and implementation including collection and accounting, annual reporting, capital planning, periodic updates to the Separated Sewer System Development Impact Fee, and other related costs.

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Finding: The requirements of Subsection d are acknowledged and consistent with existing systems and practices.

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The Combined Sewer System Utility
Introduction and Description
The Combined Sewer System Utility (CSS) provides wastewater and drainage services to approximately 34,000 commercial and residential properties located in the City. The CSS includes approximately 443 miles of pipe and 15 wastewater pump stations in 14 combined sewer basins. There are also 4 storage facilities, 2 of which also function as pump stations, and are included in the 15 pump stations noted above. The CSS includes treatment facilities that are used during significant wet-weather events. This system is administered by DOU to provide safe and reliable collection and conveyance of wastewater and to ensure the wastewater systems comply with all state and federal regulations.

The residential and commercial customers that receive service from the CSS constitute approximately 23 percent of the total residential and commercial customers in the City. The balance is served by the City’s Separated Sewer System (discussed in Chapter 3) or the SASD, a separate entity not under control of the City. All of the effluent from the City systems and SASD are delivered to a regional treatment facility owned and operated by the Sacramento Regional County Sanitation District.

On the Map below (Figure 4-1), the boundaries of the CSS are within the red line, labeled “Combined”.

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Figure 4-1. Combined Sewer System Utility Boundaries and Key System and Geographic Characteristics

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Growth and Demand
Because the CSS mixes storm runoff and wastewater, the primary concern is to protect public health. In a storm event, the capacity of the system may be exceeded, causing outflows to the streets and overflows to the Sacramento River.

Storage allows the mix of drainage and wastewater to be held for later release when the system has the capacity to deliver the flow to the regional treatment facility.

To manage the CSS, the City uses a variety of methods to increase storage capacity to minimize the frequency and severity of outflows. As growth occurs, the primary means to increase storage capacity is to enlarge pipes for in-line storage. Funding is secured through development impact fees for that purpose, or if a larger, areawide storage project is desired, the capacity required is secured through agreements.

For new growth, because the CSS manages a mix of wastewater and drainage runoff, both impacts of sewer flow and drainage must be measured to calculate the storage requirements for each new development. For in-line storage and the supporting fees, the demand for capacity is per project and is calculated on the following two demand indicators and associated demand factors:
 For wastewater, the demand indicator is ESD, where an ESD of 1 is the expectation of average sanitary flow from a single-family detached home using average daily winter water-use data. This data is used to factor the ESD expectation for any land use.
 For drainage runoff, the demand indicator is new impermeable surface acres, or square feet. The factor is the total in a new development.

As will be discussed in more detail below, there is an interaction between the two impacts of wastewater flow and drainage runoff. This is to ensure that a standard for runoff storage of 7,600 cubic feet per acre is met by a development regardless of the development’s configuration of ESDs and new impermeable surface.

In effect, the storage required for wastewater mitigates a portion of the storage required for drainage, and vice-versa. Depending on a development’s configuration, a development subject to a wastewater impact fee may not also require a drainage fee, or both fees may be necessary to meet the storage requirement.

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Incremental Methodol ogy and Cost per
Equivalent Standard Dwelling and
Impermeable Square Foot
The capital improvements required by the demands are incremental enlargements of piping to provide the storage capacity required on a per project basis. The calculation to determine the storage requirement and the cost per ESD and per impermeable square foot is shown on Table 4-1.

Table 4-1. Equivalent Standard Dwelling and New Impermeable Surface Storage Requirements and Costs

A. Sewerage
Storage Capacity Requirement Per ESD [1]
formula Factor
City Sanitary Sewage Standard (Gal./ESD) [2] a 310
Maximum Sewer Generation Ratio [3] b 0.401
Maximum Sewer Flow c = a * b 124
Average Dilution Ratio [4] d 0.067
Gallons per ESD of Storage Capacity Needed e = c / d 1,851 Storage Cost Per ESD
Per Foot of Pipe
Required 48" New In-Line Storage Cost per Foot f $580
Existing 18" In-Line Storage Replacement Cost per Foot g $257 Net Cost of Required Pipe per Foot h = f - g $323
Per Cubic Foot of Pipe
48" Pipe i 12.56
18" Pipe j 1.76
Net Cubic Feet of Required Pipe per Foot k = i - j 10.80 Cost per Cubic Foot l = h / k $29.93
Required Storage Capacity and Cost per ESD
Gallons of Storage Capacity Needed per ESD m = e 1,851
Cubic Feet per Gallon n 0.133681
Cubic Feet of Storage Capacity Needed per ESD o = m * n 247.41 Cost per Cubic Foot l $29.93
Storage Capacity Cost per ESD p = o * l $7,406
B. Drainage
New Impervious Surface Requirement and Cost Per Square Foot Storage Requirement per Acre (cu. ft.) [5] q 7,600
Cost per Cubic Foot h $29.93
Cost Per Impervious Acre r = h * q $227,496
Cost Per Impervious Square Foot s = r / 43,560 $5.22
Source: DOU Combined_1
Notes:
[2] The current City of Sacramento Design and Procedures Manual, Section 9.4.7. [4] Source files: City of Sacramento, InfoWorks ICM Model. [1] The InfoWorks ICM Model determines maximum percentage of daily sanitary sewage generation expected during the height of a 10-year, 6-hour storm event. [3] The InfoWorks ICM Model estimates that the average flooding duration at areas with the worst outflows is approximately 7.2 hours. Based on the diurnal curve created from wastewater flow data in the combined sewer system, the maximum sewer generation during a 7.2 hour period is 40.1% of the total daily flow.
[5] The current Onsite Design Manual, Figure 10 storage requirement for detention in a 100-year storm event.

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As can be seen in Table 4-1, each ESD requires the creation of 1,855 gallons for storage. With a full pipe, and after applying the dilution ratio (the letter “d” in the formula), that storage will be composed of 124.3 gallons of wastewater, and 1,731 gallons of drainage. The drainage mitigated of 1,731 gallons, or 231.4 cubic feet, can be used for the required drainage mitigation that comes from increasing the impervious area of the site being developed. This requirement is 7,600 cubic feet per acre of new impermeable surface. In square foot terms, 1,326.3 square feet of new impermeable surface is mitigated by one ESD [i.e., 1,326.3=(231.4/43,560)*7,600].

It is possible for a development with enough ESDs relative to its parcel size to satisfy the drainage storage requirement from the drainage storage created by mitigating for ESDs. Examples of a range of developments are shown on Table 4-2.

Table 4-2. Capacity Requirements Examples

Example number 4, with 250 ESDs on 4 acres, would satisfy the drainage requirement through ESDs alone. The drainage fee would be fully credited. The other examples would pay reduced drainage fees based on the drainage mitigated through the ESDs. These same examples are presented in dollar terms on Table 4-6 later in this chapter, below the discussion of the fees.

Planning costs are being employed to help defray the cost of capacity improvements. These costs are being shared on a proportional basis between new growth and existing customers in accordance with the existing customer base by land use and the projected growth by land use in 2040. The calculation of proportional shares is shown on Table 4-3.

Formula 12 3 4
ESDs a 16 6 0 2 5 0
New Impermeable Acreage b 0.125 0.5 2 4
Required Mitigation in Cu. Ft. c = b * 7,600 cu.ft./acre 950 3,800 15,200 30,400 Required Mitigation in Sq. Ft. d = ( c / 7,600 ) * 43,560 ) 5,445 21,780 87,120 174,240 Drainage Storage Mitigated by ESD Mitigation
Drainage Mitigated in Cu. Ft. e = a * 231.4 cu.ft. 231.4 1,388.4 13,884.0 57,850.0 Drainage Mitigated in Sq. Ft. f = ( e / 7,600 ) * 43,560 ) 1,326.3 7,957.7 79,577.2 331,571.8 Remaining Required Mitigation and Fee
In Cubic Feet g = c - e cu.ft. 718.6 2,411.6 1,316.0 (27,450.0) In Square Feet h = d - f sq.ft. 4,118.7 13,822.3 7,542.8 (157,331.8) Sewer Fee yes yes yes yes
Drainage Fee yes yes yes none
Sources: DOU and EPS. Combined_2
Examples
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Table 4-3. New and Existing ESDs

The allocation of planning costs to existing and new growth and the cost per ESD is shown on Table 4-4.

Table 4-4. Cost per ESD with Planning Costs

Planning costs of $511,000 are shared by existing and new development at a cost of $7 per ESD. The base and planning fee per ESD for new growth is $7,413.

The schedule of the fee by land use is shown on Table 4-5 on the following page.

A further detailed schedule is included as Appendix D-1.

Residential
Units
2017
Units
2022
Units
2040
Units
Unit
Growth
ESD
Factors
Existing
ESDs
ESD
Growth
formula: a b c = b - a d e = a * d f = c * d
Single Family Detached 12,327 12,357 12,646 289 1 12,357 289 Single Family Attached 4,417 4,724 10,981 6,257 0.5 2,362 3,129 Multifamily 23,648 28,244 53,118 24,874 0.5 14,122 12,437 Totals 40,392 45,325 76,745 31,420 28,841 15,855
Non-Residential
Square
Feet per
Employee
2017
Units
2022
Units
2040
Units
Unit
Growth
ESD
Factors
Existing
ESDs
ESD
Growth
Employment
formula: ad f h = f - d
Retail/Food 23,313 23,494 28,329 4,835
Office 199,822 200,023 217,489 17,466
Manufacturing/Other 38,211 39,188 57,670 18,482
Totals 261,346 262,705 303,488 40,783
Square Feet (in 1,000s)
formula: b
c = ( a * b )
/ 1000
e = ( d * b )
/ 1000
g = ( f * b )
/ 1000 i = g - e j k = e * j l = I * j
Retail/Food [1] 500 11,657 11,747 14,165 2,418 0.25 2,937 605 Office 200 39,964 40,005 43,498 3,493 0.5 20,003 1,747
Manufacturing/Other [2} 500 19,105 19,594 28,835 9,241 0.25 4,899 2,310 Totals 70,726 71,346 86,498 15,152 27,838 4,661
ESD Totals 56,679 20,516
Sources: DOU and EPS Combined_3
Notes:
[1] Weighted average of Retail and Food land uses.
[2] Weighted average of Educational, Medical, Services and Industrial land uses.

Units ESDs
Units ESDs
Reference Formula Factors
2022 Existing ESDs Table 4.3 a 56,679
2040 New ESDs Table 4.3 b 20,516
2040 Total ESDs c = a + b 77,195
Master Planning Cost d $511,000
Master Planning Cost per ESD e = d / c $7
Storage Capacity Cost per ESD Table 4.1 f $7,406
Total Cost per ESD g = e + f $7,413
Sources: DOU and EPS Combined_4
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Table 4-5. Development Impact Fee Schedule—Sewerage and Drainage

By Land Use ESD Factor
Cost per
ESD
Cost by Land Use
and Factor
Administrative
Fee (3%) Fee
Formula: a b c = a * b d = c * 3% e = c + d
Sewerage
Residential
Single Family Detached 1.00 per dwelling $7,413 $7,413 $222 $7,635 Apartment 0.66 per dwelling $7,413 $4,893 $147 $5,039
Hotel/Motel 0.43 per room $7,413 $3,188 $96 $3,283

0.83 per dwelling $7,413 $6,153 $185 $6,337
College Dorm or Boarding House 0.4 per bed or resident $7,413 $2,965 $89 $3,054 Nonresidential
Retail 0.53 per 1,000 sq. ft. $7,413 $3,929 $118 $4,047 Dine-in Restaurant 1.77 per 1,000 sq. ft. $7,413 $13,121 $394 $13,515 Office (single story) 0.33 per 1,000 sq. ft. $7,413 $2,446 $73 $2,520 Hospital 1.62 per bed $7,413 $12,009 $360 $12,369
K-12 Schools 3.96 per 100 students $7,413 $29,355 $881 $30,236 Heavy Industrial 0.30 per 1,000 sq. ft. $7,413 $2,224 $67 $2,291 Colleges & Universities 0.76 per 1,000 sq. ft. $7,413 $5,634 $169 $5,803 Church 0.22 per 1,000 square feet $7,413 $1,631 $49 $1,680 Other Non-Residential 1.00 per 12,000 gal. (water/user/mo.) $7,413 $7,413 $222 $7,635 Drainage
New Impervious Surface Cost per Square Foot - All Land Uses $5.22 $0.16 $5.38 Sources: DOU and EPS Combined_5
Note:
[1] See the report text for an explanation of the interaction between the sewer fee and the drainage fee.

Single Famity Attached, Duplex,
Triplex, Quadplex and Similar
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If the sewer fee is charged first on a project, the drainage fee is reduced or is not applied, depending on a project’s configuration. A few examples are shown on Table 4-6.

Table 4-6. Fee Examples

Drainage fees could be charged first, in which case, the relationships are reversed with the same cost outcome.

Table 4-7 is informational only and calculates the total cost of improvements by 2040 to mitigate the sewer impacts of new growth.

Table 4-7. 2040 Sewer Improvement Costs and Revenue at Buildout

Formula 12 3 4
ESDs a 1 6 60 250
New Impermeable Acres b 0.125 0.5 2 4
New Impermeable Sq. Ft. c = b * a 5,445 21,780 87,120 174,240 Sewer Fee per ESD d $7,635 $7,635 $7,635 $7,635
Drainage fee per Sq. Ft. e $5.38 $5.38 $5.38 $5.38
Sewer Fee f = a * d $7,635 $45,812 $458,123 $1,908,848
Drainage Fee g = c * e $29,290 $117,161 $468,642 $937,284 Drainage Credit h = See Note [1] ($7,134) ($42,807) ($428,068) ($937,284) Total Fee i = e + f - g $29,791 $120,166 $498,698 $1,908,848 Sources: DOU and EPS. Combined_6
Note:
[1] This is the value in drainage fees of the drainage mitigated by the sewer fee. The percent of the 7,600/acre standard for storage mitigated by ESDs (231.4 cu.ft./ESD) is converted to the land square feet mitigated (see Tables 4.1 and 4.2) and multiplied by the drainage fee per square foot. Credit is applied up to the full value of the drainage fee.

Examples
reference formula Factors
Total Cost per ESD Table 4.4 a $7,413
Total New 2040 ESDs Table 4.3 b 20,516
Improvement Costs and Revenue with Buildout c = a * b $152,083,255 Sources: DOU and EPS Combined_7
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Also for informational purposes, Table 4-8 shows a forecast of the typical method to determine new impermeable surfaces.

Table 4-8. Vacant Acres and Impervious Surface

A standard expectation would be construction costs and revenue to approximate $105 million at $5.22 per square foot in the CSS service area. But as shown above, the drainage mitigation provided by the development of ESDs reduces or eliminates a drainage mitigation requirement.

Comparison with Surrounding
Communities
The comparison of the CSS with surrounding jurisdictions is shown on Table 4-9.

The table is for the sewer fee only and includes a single-family land use and office and retail uses on a per 1,000 square foot basis and the same land uses on a per acre basis. Complete comparative information in chart form is presented as Appendix D-2, and high-level summaries are in Chapter 1, the Executive Summary.

Maximum Impervious Surface
Land Use Parcels Acres
Impervious
Surface
Coeffient
(ISC)
Impervious
Surface
Buildout
Acres
Impervious
Surface
Buildout
Square Feet
formula: a bc = a * b
d = c *
43,560
Industrial 174 180 85% 153 6,672,007
Irregular/Waste 207 39 90% 35 1,523,153
Office 94 73 90% 66 2,862,779
Public [1] 43 18 90% 16 697,562
Recreation [2] 4 9 5% 0 19,639
Residential 557 177 50% 89 3,860,476
Retail/Commercial 176 112 90% 101 4,409,061
Totals 1,255 609 460 20,044,678
Sources: DOU and EPS Combined_8
Notes:
[1] The Number of Parcels, and Area values for the "Public" landuse are left unchanged from the 2015 update.
[2] Recreation has had one parcel removed from the calculations, a 109 acre parcel in the railyards area. This area has had its area distributed to the office, residential, public, and retail land use calculations.

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Table 4-9. Fee Comparisons

Importantly, a comparative table for the drainage element of the fee cannot be made because of the credit system in Sacramento. Typically, drainage fees are for all new impermeable surface, including buildings. In Sacramento, direct credits are given for drainage mitigation as a result of the sewer mitigation required for new ESDs. No jurisdiction in the area has a comparable system of any magnitude.

The proposed fees are the highest in the region because of the realities of a combined system: a high storage requirement to mitigate the health risks of the combined wastewater and drainage flows from the system.

Nexus Findings
For the Combined Sewer System Utility (CSS), this section addresses the following requirements of the Mitigation Fee Act (California Government Code section 66000 et seq.) as it relates to the Combined Sewer System Utility and as discussed in Chapter 4, which is incorporated here by reference.

Per California Government Code Section 66001

1. Identify the purpose of the fee.

2. Identify how the fee is to be used.

3. Determine how a reasonable relationsh ip exists between the fee’s use and the type of development project on which the fee is imposed.

Jurisdiction [1]
Single
Family Retail Office
Single
Family [2] Retail Office
per unit
Sacramento $7,635 $4,047 $2,520 $53,448 $44,069 $38,415 Sacramento County - Uninc. $3,194 $2,053 $1,467 $22,360 $22,360 $22,360 Folsom $1,073 $316 $226 $7,511 $3,438 $3,438
Roseville $447 $149 $149 $3,129 $1,623 $2,272
West Sacramento $7,011 $2,078 $2,078 $49,077 $22,629 $31,681 Woodland $7,125 $2,908 $1,744 $49,875 $31,668 $26,589
Average Excluding Sacramento $3,770 $1,501 $1,133 $26,390 $16,344 $17,268 Sacramento +/- Percent [3] 103% 170% 122% 103% 170% 122% Source: EPS Combined_9
Note:
[2] Based on 7 units per acre.

Site Area Per Acre
per 1,000 sq. ft. [3]
[1] Does not include regional sewer fees. See table sets 1.5 and 1.6 in the Executive Summary and Appendix A-2 for comparative details that include regional sewer fees. [3] Comparisons for Retail and Office land uses are based on the assumption of a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail, and 35 percent for Office. This construct is for comparative purposes only.

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4. Determine how a reasonable relationship exists between the need for the facility and the type of development project on which the fee is imposed.

5. Demonstrate a reasonable relationship between the amount of the fee and the cost of the facility or portion of the facility attributable to the development on which the fee is impose.

The Combined Sewer System Development Impact Fee includes two fees, one for sewer and one for runoff, and applies to all development in the service area. The sewer fee is in proportion to the measured expectation of sanitary sewer flow by land use type. The drainage portion is in proportion to new impermeable square footage and applies only if drainage is not mitigated by the sewer fee as explained below and in Chapter 4.

1. Purpose of the Fee
The purpose of the Combined Sewer System Development Impact Fee is to fund capacity improvements to accommodate projected new residential and non- residential development as detailed in Chapter 4.

2. Use of Fee
The Combined Sewer System Development Impact Fee will be used to fund sewer pipe capacity or equivalent improvements to convey and store sanitary sewage and drainage runoff generated by development in the service area to mitigate the risk of river, roadway and property contamination during storm events. Release of this combined storage is timed to coincide with available capacity for discharge to trunk lines connected to the regional treatment facility, which is owned and operated by the Sacramento Regional County Sanitation District.

3. Reasonable Relationship between Use of Fee and Type of Development on Which the Fee is Imposed
The Combined Sewer System Development Impact Fee varies by development type and parcel size. Development in the CSS typically creates net-new sewer flows and net-new impermeable surfaces, both of which impact the CSS. Because sewer and runoff mix in the CSS and require the same storage medium (48” in- line pipes), mitigated sewer flows also mitigate a measured volume of storm- event runoff. Please see Table 4-1 in Chapter 4 for detailed calculations and discussion of these interactions. The Combined Sewer System Development Impact Fee takes these interactions into account by development type and parcel size in the calculation of the fee.

Sewer generation rates by land-use type are measured for typical flows by way of an index termed Equivalent Dwelling Unit (EDU) where the typical single-family home has a EDU of one. The sewer portion of the Combined Sewer System Development Impact Fee is a per EDU fee and is the cost to mitigate the impact of each EDU. A proposed development in the CSS will include the land-use type(s) and the required sewer EDUs and a measure of new impermeable surfaces on the Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
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parcel(s) involved. If the mitigation required for runoff is less than the runoff mitigation provided by the required EDUs, only the sewer portion of the Combined Sewer System Development Impact Fee applies. If drainage remains to be mitigated, the drainage portion of the Combined Sewer System Development Impact Fee is applied to the unmitigated portion on a per square foot basis. The fee is the cost of storage, using the same storage medium, to satisfy the established standard for runoff mitigation in the CSS to minimize the risks of contamination from storm events.

A reasonable relationship therefore exists between the use of the Combined Sewer System Development Impact Fee and the type of development on which the fee is imposed.

4. Reasonable Relationship between Need for Facility and Type of Project on Which the Fee is Imposed
New residential and nonresidential projects in the service area are required to connect to the CSS system. New residents, employees, and patrons of the new developments will generate increased sewer and drainage flows. Storage needed to accommodate this demand were determined based on the modelling of sewage and storm water runoff generated by existing and projected residential and nonresidential development.

A reasonable relationship therefore exists between the need for CSS storage facilities and new residential and nonresidential development projects on which the Combined Sewer System Development Impact Fee is imposed because the portion of storage facilities funded by the Combined Sewer System Development Impact Fee is based on the amount of sewage and runoff generated by projected residential and non-residential development.

5. Reasonable Relationship between Amount of Fee and Cost of Facilities or Portion of Facilities Attributed to Development on Which Fee is Imposed The Combined Sewer System Development Impact Fee is the cost of storage capacity. The cost is allocated amongst the projected new residential and nonresidential land uses in the service area based on the proportional demand each development is anticipated to generate for storage capacity.

A reasonable relationship therefore exists between the amount of the Combined Sewer System Development Impact Fee and the cost of the sanitary sewer facilities attributed to the residential and nonresidential development on which the fee is imposed because the costs are allocated based on the demand generated by new development for storage capacity as measured by the new impermeable surface of development parcels and by the sewage generated by each development type.

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Per California Government Code Section 66016.5 (AB 602) The section is included to address the drainage element of the Combined Sewer System Development Impact Fee. Most requirements of the legislation are met in the findings under 66001. Those that are not yet addressed are as follows.

1. Exception requirement to the housing square footage basis:
a) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project. b) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.
c) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

The findings for the exception are as follows:
a) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project.

New imperious surfaces drive the demand for drainage facilities. In housing developments, new impervious surfaces incorporate the footprint on a parcel, capturing ground floor living spaces as well as driveways, sidewalks, patios and other such surfaces. A square footage of proposed units basis would introduce inequities. For example, a two-story home with the same footprint as a single- story home would pay twice the fee while causing an identical impact on the drainage system. This inequity would be amplified in multistory apartment and condominium buildings or towers.
b) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.

For storm water runoff, the standard, customary and equitable method to establish a reasonable relationship between the fee charged, the facilities required, and the type of development on which the fee is imposed is with a direct measure of new impermeable surfaces. New runoff as a result of development establishes the demand for new or improved capacity, the cost of which is the basis of the fee.
c) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

A fee basis of impermeable square footage ensures equity for the allocation of the cost of the impact from development. The fee is proportional to the impact caused by new impermeable surfaces. Smaller developments with identical unit footprints Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
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will have the same fees. Smaller footprints will have proportionately lower fees.

Similarly, multifamily apartment building and towers will have lower impacts and fees on a per unit basis as the size of the units decline and/or the number of floors increase.

2. Capital improvement plan requirement as part of a nexus study:

Capital improvements funded by the Combined Sewer System Development Impact Fee are limited to pipe enlargements on a per project basis or to periodic areawide storage facilities. Areawide improvements involve separate agreements with developers and may include a proportionate share funded by fee revenue.

Project master planning and programming are carried out as part of the annual budget process.

3. Blanket statement on the remaining requirements of 66013:

The remaining requirements of 66013 are either addressed in the findings under 66001, 66013 below and in Chapter 4, all of which are incorporated herein by reference, or will be through the public outreach, public hearing and adoption process, implementation process and the accounting and reporting process, all of which are acknowledged.

Per California Government Code Section 66013

Finding on the Base Fee: The Combined Sewer System Development Impact Fee for capital improvements (Base Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. Costs are estimated for new facilities necessary to accommodate the demand created by modelled sewer flows from new residential and non-residential development by land-use type.

Finding on the Administrative Component: The administrative cost portion of Combined Sewer System Development Impact Fee (Administration Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. The Administration Fee funds City costs associated with fee program administration and implementation including collection and accounting, annual reporting, capital planning, periodic updates to the Combined Sewer System Development Impact Fee, and other related costs.

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Finding: The requirements of Subsection d are acknowledged and consistent with existing systems and practices.

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The Storm Drainage System Utility
Introduction and Description
The City DOU Storm Drainage System Utility (Storm Drainage System) is responsible for managing creeks, streams, and stormwater runoff to prevent flooding of streets and properties and to mitigate contamination from pollution and pathogens. Specifically, the Storm Drainage System is required to design improvements that:
 Meet the needs of a growing community.
 Provide a minimum 100-Year Event protection to structures.  Provide a minimum 10-Year Event protection to streets.  Control urban runoff pollutants.
 Avoid public safety hazards.

Effective stormwater management is complicated in Sacramento by the City’s mostly flat topography and location on a low-lying flood plain. More than all other cities in California, less reliance can be placed on gravity to manage runoff.

A system of primary and secondary levees largely surrounds the City and is managed by the Sacramento Area Flood Control Agency (SAFCA) Joint Powers Authority, which includes the City as a member. The City’s separate Storm Drainage System must often pump all runoff up through the levees to discharge to the rivers. Within the system itself, design considerations are focused on the capacity for temporary storage, as well as the normal considerations for conveyance. As a result, the system consists of local storm drains, in-line flow controls, levees, pumps, and pipes to collect, store, filter, and clean stormwater in 134 separate drainage basins serving approximately 155,000 parcels.

For land use, every parcel has an allowable runoff, as determined by the size and capacity of a basin. If a new development proposes to exceed that allowance, either onsite storage must be provided or an agreement must be entered into that provides for another mitigation measure. All of the above attributes of the Storm Drainage System are necessary to mitigate the risk of flooding and of polluting rivers and water sources. Adequate maintenance and capacity improvements are required for both existing and new development.

A map of the area affected by the storm drainage impact fee is shown on Figure 5-1.

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Figure 5-1. Storm Drainage System Utility Boundaries and Key System and Geographic Characteristics

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The areas labelled as “Pumped” or “Gravity” Basins denote basins with two different asset characteristics. Each basin type includes assets that are used in common, such as pump stations in Pumped Basins, and in all basins, main drainage lines, storage basins, or canals servicing a large area. Not included are smaller lines serving individual properties or large, master planned communities, where the drainage infrastructure has been installed and is maintained by separate agreements. Most of the North Natomas area and the Delta Shores development in the southern part of the City are examples of these excluded areas.

Growth, Demand, and Allocations
The key measure of demand for stormwater services is impermeable (or impervious) surface. New impermeable surface is driven primarily by the development of “greenfields” or the redevelopment of existing development to new or more intensives uses. Projected new growth in the service area by residential and nonresidential land uses through 2040 is displayed on Table 5-1.

Table 5-1. New Growth by Acreage, Residential Units, and Nonresidential Square Feet

All new growth data is specific by parcel for land use type, for numbers of units or employees, for parcel size, and for other factors. As shown, Table 5-1 summarizes acreage by land use and units of housing. Nonresidential land uses include estimated building square footage based on expectations of the space required per projected future employees. The factors, or “coefficients,” used are provided in Appendix A-1.

Residential Units Acres [1] Units
Single Fam Residential (6 - 8 DU/acre) 905 5,891
Multifamily MDR (<30 DU/acre) 261 3,601
Multifamily HDR (30+ DU/acre) 548 15,808
Total 1,714 25,300
Non-Residential [2]
Square Feet in
Thousands
(1000's)
Retail/Food 155 2,461
Office/Services 450 4,604
Medical 264 2,746
Educational 46 1,438
Industrial 908 3,710
Total 1,823 14,959
Total Acreage 3,536
Sources: City of Sacramento Department of Community Development, EPS. Storm_1 Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
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Buy-In Methodology, Fee Calculation,
and Credits
To accommodate the growth, an impact fee is proposed to participate in capital capacity improvements benefitting new growth or to create new capacity solely attributable to new growth. For these purposes, a buy-in approach to a development impact fee is being employed. As mentioned above, every parcel is assigned an allowable runoff, which is defined in the City’s On-Site Design Manual. This allowable runoff is an allocation of available capacity in a basin to each parcel based on parcel size. Use of this allocation is also a use of a share of existing assets that has been paid for by current rate payers. Future customers will “buy in” to a proportional share of these assets by way of a buy-in development impact fee.

To determine an appropriate fee, this analysis includes only the key assets of the Storm Drainage System that could be efficiently valued (large diameter pipe mains and pump stations). Canals, ditches, drainage basins, and other assets for which replacement values or costs could not reasonably be obtained are not included. The assets used to establish value were classed into two types of basins, Zones, because of their similar assets: pumped or gravity basins. Figure 5-1 above shows the location of these two Zones. City staff employed a two-step process to determine the estimated value of existing storm drainage assets.

First, the estimated replacement cost in 2022 dollars was determined by City staff. Second, the existing values were depreciated based on their anticipated remaining useful life, so only the value of the remaining useful life is included as part of the fee calculation. Table 5-2 shows the estimated total replacement value of system assets, the accumulated depreciation of those assets, and the current value by basin type.

Table 5-2. Existing Assets

Summary [1] Current System
Replacement Cost Depreciation Value
Pumped Basins Zone
Pump Stations $323,120,611 $265,152,773 $57,967,838
Drainage Mains $272,920,396 $166,481,442 $106,438,954
Total Pumped Basins $596,041,007 $431,634,215 $164,406,792 Gravity Basins Zone
Drainage Mains $62,740,618 $38,271,777 $24,468,841
Total Storm Drainage System $658,781,625 $469,905,992 $188,875,633 Source: DOU Storm_2
[1] Details of the asset values by basin are included in Appendix E-1.

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The depreciated value of existing Storm Drainage System assets is calculated by dividing the depreciated value of improvements by the total acreage in each respective basin Zone (gravity and pumped), as shown in Table 5-3.

Table 5-3. System Value per Acre by Basin Type [1]

Given the value per acre of the capacity, a second step is necessary to allocate the value of the capacity equitably across all configurations of properties that affect runoff. The measure used for this purpose is impermeable surface.

Factor
Pumped Basins Zone
Current System Value $164,406,792
Total Acreage 32,789
Value per Acre $5,014
Gravity Basins Zone
Current System Value $24,468,841
Total Acreage 8,135
Value per Acre $3,008
Source: DOU Storm_3
Note:
[1] Gross developable acres.

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To determine the current value of the Storm Drainage System on an impermeable surface basis, the entire system was evaluated to determine the weighted average impermeable surface for all land uses. The summary of that analysis is presented in Table 5-4.

Table 5-4. Weighted Average Impermeable Surface Coefficient [1]

Impermeable
Customer Class Parcels Gross Acres ISC Acres
Agriculture 14 310.5 0.04 12.4
Airport 3 179.5 0.30 53.9
Cemetery 19 76.3 0.10 7.6
Churches & Welfare 556 1 ,322.0 0.80 1 ,057.6
Common Area 910 632.9 0.30 189.9
Golf 9 817.9 0.10 81.8
Industrial 2 ,065 4 ,011.2 0.86 3 ,449.6
MFR1 2 ,360 227.6 0.84 191.2
MFR2 10 ,736 2 ,745.7 0.70 1 ,922.0
MFR3 3 ,837 1 ,373.5 0.52 714.2
Miscellaneous 1 ,062 215.8 0.10 21.6
Office 1 ,792 2 ,017.1 0.80 1 ,613.6
Park 780 2 ,476.5 0.10 247.6
Personal Care & Health 118 228.1 0.80 182.5
Public & Utilities 1
,093 2 ,919.6 0.44 1 ,284.6
Recreational 21 122.7 0.80 98.2
Retail / Commercial 3 ,202 2 ,436.6 0.86 2 ,095.5
SFR1 18 ,085 1 ,195.0 0.66 788.7
SFR2 94 ,051 14 ,425.4 0.54 7 ,789.7
SFR3 7 ,452 3 ,202.2 0.35 1 ,120.8
Vacant 5 ,754 5 ,763.9 0.10 576.4
Totals 154 ,879 46 ,699.8 0.5032 23 ,499.3
Sources: DOU, NBS [2] and EPS Storm_4
Note:
[1] The ISC is the proportion of land that is impermeable. [2] The table is a compilation from data included in the NBS study for a Storm Drainage System maintenance fee: City of Sacramento Storm Drain Utilit
y Property Related Fee Study, NBS, December 2021.

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The average impermeable surface for all lands in the Storm Drainage System is

50.32 percent, or an Impervious Surface Coefficient (ISC) of 0.5032. The value of the capacity of the system on a per impermeable acre and square foot basis is as shown in Table 5-5 for each basin Zones.

Table 5-5. System Value per Impervious Acre and Square Foot by Basin Type

The entitlement process in DOU requires the identification of new impermeable surface square feet for all new development. This is determined by City staff and the applicant either through a drainage study or other means such as an existing study in a master planned area. The values per impermeable square foot in Table 5-5 are, therefore, also the base fees by basin type. To support planning for capacity improvements, the impact fee includes an additional $329 fee per acre, and the proposed fees will include a 3 percent administrative charge. These calculations and the final fee per square foot by Zone are shown in Table 5-6.

Factor
Pumped Basins Zone formula
Value per Gross Developable Acre [1] a $5,014
Average ISC b 0.5032
Value per Impermeable Acre c = a / b $9,964
Value per Impermeable Square Foot d = c / 43.560 $0.2287 Gravity Basins Zone
Value per Gross Developable Acre [1] d $3,008
Average ISC e 0.5032
Value per Impermeable Acre f = d / e $5,978
Value per Impermeable Square Foot g = f / 43.560 $0.1372 Source: DOU Storm_5
Note:
[1] Table 5.3
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Table 5-6. Fee per Impervious Square Foot by Basin Type

As mentioned above, the identification of new impermeable surfaces would occur during the entitlement process. Full credits are applied to existing impermeable surfaces.

Fee per Developable Acre and Square
Foot
The fee would apply on a per impermeable square foot basis. For informational purposes, the expected cost for a greenfield development is calculated below.

These calculations are on a developable acre and square foot basis and are also used for comparative purposes with other jurisdictions.

For context, most new growth in Sacramento will not be greenfield development.

The majority of new growth in Sacramento is projected to be reuse or the intensification of development. A 100 percent credit is applied to existing impermeable surfaces. Most properties will be levied lower fees, or even no fees, as a result.

Factor
Pumped Basins Zone formula
Base Fee per Impervious Acre (Table 5) a $9,964
Master Planning Fee b $329
Subtotal c = a + b $10,293
Administrative Fee d 3%
Fee per Impervious Acre e = (d + 1) * c $10,602
Fee per Impervious Square Foot f = e / 43,560 $0.2434
Gravity Basins Zone
Base Fee per Impervious Acre (Table 5) g $5,978
Master Planning Fee h $329
Subtotal i = g + h $6,307
Administrative Fee j 3%
Fee per Impervious Acre k = (j + 1) * i $6,496
Fee per Impervious Square Foot l = k / 43,560 $0.1491
Source: DOU and EPS Storm_6
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The expected cost on a gross, greenfield developable acre and square foot basis requires a reasonable standard with which to project new impermeable surfaces by land use. That standard cannot be the actual, measured ISC for existing development in Table 5-4 because new development is generally denser than has historically been the case.

The standard to be used is the ISC, but as standardized statewide through research by, and adopted by, the California Environmental Protection Agency. 3 Although similar in some respects to some of the actual, measured ISCs, the State of California standard specifies the expected impervious surface of all major land use types for future development.

The tables that follow apply the standard to projected development by land use type and calculate the base fee per developable acre and square foot. Table 5-7 calculates the fee for the Pumped Basins Zone. Table 5-8 calculates the fee for the Gravity Basins Zone.

Table 5-7. Pumped Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot

3 User’s Guide for the California Impervious Surface Coefficients, Office of Environmental Health Hazard Assessment, California Environmental Protection Agency, December 2010.

Pumped Basins Zone
Land Use
As
Percent
As
Ratio
formula: a b c = b * 43,560 d e = c * d f = e / 43,560 Residential:

Single Fam Residential (6 - 8 DU/acre) 54% 0.54 23,522 $0.2434 $5,725 $0.1314 Multifamily HDR (30+ DU/acre) 84% 0.84 36,590 $0.2434 $8,906 $0.2044 Multifamily MDR (<30 DU/acre) 66% 0.66 28,750 $0.2434 $6,997 $0.1606 Non Residential:

Retail 86% 0.86 37,462 $0.2434 $9,118 $0.2093
Hotel/Motel [2] 80% 0.80 34,848 $0.2434 $8,482 $0.1947
Office 80% 0.80 34,848 $0.2434 $8,482 $0.1947
Hospital 80% 0.80 34,848 $0.2434 $8,482 $0.1947
Schools 44% 0.44 19,166 $0.2434 $4,665 $0.1071
Church 80% 0.80 34,848 $0.2434 $8,482 $0.1947
Industrial 86% 0.86 37,462 $0.2434 $9,118 $0.2093
Parking lot [3] 86% 0.86 37,462 $0.2434 $9,118 $0.2093
Sources: DOU, EPS Storm_7
Notes:
[1] Table 5.6
[1] Uses the Office rate.
[2] Uses the Retail rate.

ISC Standard
By Land Use
Impervious
Square Feet
Per Gross
Developable
Acre
Fee Per
Impervious
Square Foot
[1]
Fee Per
Gross
Developable
Acre
Fee Per Gross
Developable
Square Foot
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Table 5-8. Gravity Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot

The effective cost per square foot will be lower in most cases because of the application of credit for existing impermeable surfaces.

Use of Fees
Revenue from the proposed fees will be used to:
 Support storm drainage master planning.
 Participate in capital capacity improvements benefitting new growth and existing customers.
 Create new capacity solely benefitting to new growth.  Improvements to common facilities that primarily include:
‒ New pipes 36" or greater
‒ Pipe upsizing
‒ New detention basins
‒ Capacity improvements at pump stations
‒ New pump stations.

Gravity Basins Zone
Land Use
As
Percent
As
Ratio
formula: a b c = b * 43,560 d e = c * d f = e / 43,560 Residential:

Single Fam Residential (6 - 8 DU/acre) 54% 0.54 23,522 $0.1491 $3,508 $0.0805 Multifamily HDR (30+ DU/acre) 84% 0.84 36,590 $0.1491 $5,457 $0.1253 Multifamily MDR (<30 DU/acre) 66% 0.66 28,750 $0.1491 $4,287 $0.0984 Non Residential:

Retail 86% 0.86 37,462 $0.1491 $5,586 $0.1282
Hotel/Motel [2] 80% 0.80 34,848 $0.1491 $5,197 $0.1193
Office 80% 0.80 34,848 $0.1491 $5,197 $0.1193
Hospital 80% 0.80 34,848 $0.1491 $5,197 $0.1193
Schools 44% 0.44 19,166 $0.1491 $2,858 $0.0656
Church 80% 0.80 34,848 $0.1491 $5,197 $0.1193
Industrial 86% 0.86 37,462 $0.1491 $5,586 $0.1282
Parking lot [3] 86% 0.86 37,462 $0.1491 $5,586 $0.1282
Sources: DOU, EPS Storm_8
Notes:
[1] Table 5.6
[1] Uses the Office rate.
[2] Uses the Retail rate.

ISC Standard
By Land Use Fee Per Gross
Developable
Square Foot
Impervious
Square Feet
Per Gross
Developable
Acre
Fee Per
Impervious
Square Foot
[1]
Fee Per
Gross
Developable
Acre
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Funding for capacity improvements that benefit existing and new development must be shared in proportion to the impact new growth and existing parcels have on the system. Master Planning for those capital activities must also be shared.

With two classes of basins, a proportional share must be defined for each basin type. The proportional share by basin class is shown on Table 5-9.

Table 5-9. Proportional Shares by Basin Type for Shared Projects

Capital projects and Master Planning that benefit new growth exclusively can be funded entirely with fee revenue withing the related Zone.

Comparison with Surrounding
Communities
The comparison of the Storm Drainage System fee with surrounding jurisdictions is shown on Table 5-10. The table includes a single-family land use and office and retail uses on a per 1,000 square foot basis and all of these land uses on a per acre basis. All comparisons assume greenfield development. Complete comparative information in chart form is presented as Appendix E-1, and high- level summaries are in Chapter 1, the Executive Summary.

Basin Class Acres
Proportionate
Shares
Pumped Basins Zone formula
New Development b 2,491 7.60%
Existing Development a 30,299 92.40%
Totals c = a + b 32,789 100.00%
Gravity Basins Zone
New Development g 1,046 12.85%
Existing Acres h 7,089 87.15%
Totals i = g + h 8,135 100.00%
Source: DOU and EPS Storm_9
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Table 5-10. Fee Comparisons

The proposed fees in Sacramento are exceptionally low compared with neighboring jurisdictions. This is due to the high level of asset depreciation, to the limited scope of assets that can be reasonably valued at this time, and to the exclusive use of the Buy-In approach, which is also the only feasible approach at this time.

Nexus Findings
For the Storm Drainage Utility, this section addresses the following requirements of the Mitigation Fee Act (California Government Code section 66000 et seq.) as it relates to the Storm Drainage System Utility and as discussed in Chapter 5, which is incorporated herein by reference.

Per California Government Code Section 66001

1. Identify the purpose of the fee.

2. Identify how the fee is to be used.

3. Determine how a reasonable relationship exists between the fee’s use and the type of development project on which the fee is imposed.

Green Field Development Only
Jurisdiction
Single
Family Retail Office
Single
Family [1] Retail Office
per unit
Sacramento - Pumped $818 $837 $556 $5,725 $9,118 $8,482 Sacramento - Gravity $501 $513 $341 $3,508 $5,586 $5,197 Sacramento County - Uninc. $2,994 $2,465 $1,761 $20,959 $26,844 $26,844 Folsom $1,037 $579 $413 $7,259 $6,302 $6,302
Roseville $279 $303 $216 $1,953 $3,298 $3,298
West Sacramento $6,185 $5,446 $3,611 $43,294 $59,309 $55,061 Woodland $1,362 $1,400 $1,000 $9,531 $15,248 $15,248
Average Excl. Sacramento $2,371 $2,039 $1,400 $16,599 $22,200 $21,351 Sacramento
Pumped +/- Percent of Average -66% -59% -60% -66% -59% -60% Gravity +/- Percent of Average -79% -75% -76% -79% -75% -76% Source: EPS Storm_10
Notes:
[1] Based on 7 units per acre.
[2] Comparisons for Retail and Office land uses are based on the assumption of a 1-acre parcel with a structure covering 25 percent of the parcel (i.e., a F.A.R of .25) for Retail, and 35 percent for Office. This construct is for comparative purposes only.

Site Area Fee per Acre
per 1,000 sq. ft. [2]
Sacramento DOU Development Impact Fee Program and Nexus Studies February 13, 2023
Economic & Planning Systems, Inc. (EPS) 75

4. Determine how a reasonable relationship exists between the need for the facility and the type of development project on which the fee is imposed.

5. Demonstrate a reasonable relationship between the amount of the fee and the cost of the facility or portion of the facility attributable to the development on which the fee is impose.

The Storm Drainage Development Impact Fee differs by two zones (Zones), or subcomponents: one for gravity-dependent basins and one for pump-dependent basins. The fee Zones are legally, financially, and functionally independent of, and shielded from each other in the administration of the fee, to include the collection, accounting and use of funds.

1. Purpose of the Fee
The purpose of the Storm Drainage Development Impact Fee for each Zone is to fund storm drainage infrastructure and facilities within the respective Zone that are needed to maintain or improve the level of service as growth occurs to convey, contain, and discharge to the public drainage system stormwater generated by new residential and commercial development within the respective Zone of the Storm Drainage Utility Service Area (Area).

2. Use of Fee
The Storm Drainage Development Impact Fee for each Zone will be used to fund capital improvements within the respective zones to the storm drainage system consisting of master planning and the improvement or construction of new storm drainage facilities needed to collect, contain, and discharge to the public drainage system stormwater generated within the respective Zone.

3. Reasonable Relationship between Use of Fee and Type of Development on Which the Fee is Imposed
The Storm Drainage Development Impact Fee for each Zone will be used exclusively for the benefit of the Zone in which it is collected to fund the storm drainage facilities as described in this chapter, Chapter 5, in each respective Zone. New residential and nonresidential development in the Zones will generate more stormwater runoff by creating additional impervious surface area, generating the need for facilities that collect, contain, and discharge stormwater.

A reasonable relationship therefore exists between the use of the Storm Drainage Development Impact Fee and the type of development on which the fee is imposed because the fee will be used to construct new or improved storm drainage facilities that collect, contain, and discharge to the public storm drainage system stormwater runoff generated by the residential and nonresidential development.

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4. Reasonable Relationship between Need for Facility and Type of Project on Which the Fee is Imposed
Development of residential and nonresidential properties will increase impervious surface area and associated storm water runoff, unless these properties have no new impervious surface, in which case the fee is waived. Storm drainage facility needs are established pursuant to the City of Sacramento Department of Utilities Capital Project and Master Planning process that establishes the drainage facilities needed to collect, contain, and discharge storm water based on the land uses anticipated to develop in the respective Zones. Specific requirements, or standards, are established by the Design and Procedures Manual which requires that City drainage improvements shall be designed to:
 Meet the needs of a growing community.
 Provide a minimum 100 Year Event protection to structures.  Provide a minimum 10 Year Event protection to streets.  Control urban runoff pollutants.
 Avoid public safety hazards.

A reasonable relationship therefore exists between the need for storm drainage facilities and new residential and nonresidential projects with net new impervious surfaces on which the Storm Drainage Development Impact Fee is imposed on a square foot basis. This is because each project that creates new impervious surface area will generate additional storm water runoff, and the storm drainage facilities are necessary to collect, contain, and discharge this level of increased storm water runoff in compliance with established standards of service.

5. Reasonable Relationship between Amount of Fee and Cost of Facilities or Portion of Facilities Attributed to Development on Which Fee is Imposed As a Buy-In fee, the total current value of storm drainage facilities is divided by the total estimated impervious surface in the entire City of Sacramento to derive the current value per impervious square foot of each type of drainage system (pumped or gravity). The fee applies to any new, measured impervious square foot, as determined through the plan review process, that is not mitigated on site.

Collected fees will be used for improvements on a proportional match basis as specified in Chapter 5 or used to construct new facilities that exclusively benefit new growth.

The Storm Drainage Development Impact Fee in each Zone does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. Future, periodic updates to the Storm Drainage Development Impact Fee will re-evaluate the costs expended and future needs and costs to ensure that the fee has not and does not exceed the estimated reasonable cost of providing appropriate capital improvement services.

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Economic & Planning Systems, Inc. (EPS) 77
Finding on the Administrative Component: The administrative cost portion of the Storm Drainage System Development Impact Fee (Administration Fee) does not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed. The Administration Fee funds City costs associated with fee program administration and implementation including collection and accounting, annual reporting, capital planning, periodic updates to the Separated Sewer System Development Impact Fee, and other related costs.

Per California Government Code Section 66016.5 (AB 602) Most requirements of the legislation are met in the findings for 66001. Those that are not yet addressed are as follows:

1. Exception requirement to the housing square footage basis:
d) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project. e) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.
f) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

The findings for the exception are as follows:
d) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project.

New imperious surfaces drive the demand for drainage facilities. In housing developments, new impervious surfaces incorporate the footprint on a parcel, capturing ground floor living spaces as well as driveways, sidewalks, patios and other such surfaces. A square footage of proposed-units basis would introduce inequities. For example, a two-story home with the same footprint as a single- story home would pay twice the fee while causing an identical impact on the drainage system. This inequity would be amplified in multistory apartment and condominium buildings or towers.
b) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.

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Economic & Planning Systems, Inc. (EPS) 78
measure of new impermeable surfaces. The current plan review process requires the identification of new impermeable square feet. New runoff as a result of development establishes the demand for new or improved capacity, the cost of which is the basis of the fee.
c) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.

A fee basis of impermeable square footage ensures equity for the allocation of the cost of the impact from development. The fee is proportional to the impact caused by new impermeable surfaces. Smaller developments with identical unit footprints will have the same fees. Smaller footprints will have proportionately lower fees.

Similarly, multifamily apartment buildings and towers will have lower impacts and fees on a per unit basis as the size of the units decline and/or the number of floors increase.

2. Capital improvement plan requirement as part of a nexus study:

Capital improvements funded by the Storm Drainage System Development Impact Fee are limited to the amounts and purposes as described in the 66001 findings and Chapter 5. Project master planning and programming are carried out as part of the annual budget process.

APPENDICES

APPENDIX A:

Executive Summary

Appendix A-1: Square Feet per Employee Coefficients
Appendix A-2: Companion Charts to Tables 1-5 and 1-6

Appendix A-1
Square Feet per Employee Coefficients

Table A-1a Coefficients for Square Feet per Employee-All Nonresidential Land Uses

Land Use
Square Feet per
Employee
Education 700
Food 600
Government 500
Office 200
Retail 450
Services 500
Medical 350
Industrial 1,000
Source: BAE Appendix_A.1
Note:
[1] Sacramento General Plan Update, Existing Conditions Technical Memorandum: Market Demand Study, Bay
Area Economics July, 2019.

Appendix A-2
Companion Charts to Table Sets 1-5 and 1-6.

Chart to Table 1-5a

Chart to Table 1-5b

Chart to Table 1-5c

Chart to Table 1-6a

Chart to Table 1-6b

Chart to Table 1-6c

APPENDIX B:

Water System Utility

Appendix B-1: Water System Asset Analyses
Appendix B-2: Capital Improvement Program
Appendix B-3: Companion Charts to Tables 2-10 and 2-11

Appendix B-1
Water System Asset Analyses

Treatment Plants

Reservoirs

Wells

Transmission Mains

Appendix B-2
CIP
Summary

Total Budget
Parent Program Share $ % Share $ %
BACKFLOW PREVENTION DEVICE3330 Total $150,000 $150,000 100.00% $0 0.00% BASE CIP CONTINGENCY-WATER Total $18,000,000 $18,000,000 100.00% $0 0.00% DISTRIB MAIN REHAB PROGRAM Total $179,337,970 $179,337,970 100.00% $0 0.00% DOU FACILITIES IMPR/REHAB Total $2,850,000 $2,188,817 76.80% $661,183 23.20% DOU IT PROGRAM Total $8,390,000 $6,443,571 76.80% $1,946,429 23.20% DRINKING WATER QUALITY 3330 Total $1,375,000 $1,056,008 76.80% $318,992 23.20% FIRE HYDRANT & GATE VALVE REPL Total $5,250,000 $5,250,000 100.00% $0 0.00% FLORIN RES BACK UP ENGINE Total $1,750,000 $1,344,011 76.80% $405,989 23.20% FWTP REHAB Total $40,730,000 $31,280,887 76.80% $9,449,113 23.20% INFORMATION TECHNOLOGY - SCADA Total $26,191,990 $20,115,607 76.80% $6,076,383 23.20% RESERVOIR REHAB PROGRAM Total $54,520,000 $41,871,691 76.80% $12,648,309 23.20% RESIDENTIAL WATER METERING PRO Total $45,050,000 $45,050,000 100.00% $0 0.00% SECURITY & EMERG PREP PROG Total $4,950,000 $3,801,630 76.80% $1,148,370 23.20% SHASTA PARK 4MG RES AND PMP ST Total $250,000 $192,002 76.80% $57,998 23.20% SRWTP IMPROVEMENTS PROGRAM Total $53,075,460 $40,762,275 76.80% $12,313,185 23.20% SRWTP INTAKE SED RMVL Total $200,000 $153,601 76.80% $46,399 23.20% SRWTP PROPERTY ACQUISITION3350 Total $911,580 $700,099 76.80% $211,481 23.20% TRANS MAIN REHAB PROGRAM Total $26,499,999 $20,352,160 76.80% $6,147,839 23.20% UNPLANNED CORRECTIVE MAINT. Total $9,000,000 $6,912,055 76.80% $2,087,945 23.20% WATER+ PROGRAM [1] $1,329,830,580 $966,706,427 72.69% $363,124,153 27.31% WELL REHAB PROGRAM Total $113,060,000 $86,830,766 76.80% $26,229,234 23.20% ANNUAL MISCELLANEOUS $1,113,262 $854,985 76.80% $258,277 23.20% Totals $1,922,485,841 $1,479,354,562 76.95% $443,131,279 23.05% Adjustment for New Resiliency Unrelated to New Growth
Totals from Above $1,922,485,841 $1,479,354,562 76.95% $443,131,279 23.05% Resiliency Cost Unrelated to New Growth $45,056,356 100.00% ($45,056,356) -100.00% Adjusted Totals $1,922,485,841 $1,524,410,918 79.29% $398,074,923 20.71% Sources: DOU Alternative 3.1, EPS Appendix_B.2a
Note:
[1] The Water+ Program includes the $220,000,000 RiverArc project to increase capacity by 30 mgd. New growth will need 22 mgd of this capacity for new growth exclusively. The value of this capacity is $161,333,333 and is allocated to New Growth. The remaining 9 mgd will benefit all customers, so is shared equally between Existing Customers (76.80%) and New Growth (23.20%). These shares are $45,056,356 and $13,610,311 respectively.

Existing Customers New Growth

Descriptions

Page 1 of 2 ends

CIP Objective Description
Backflow Prevention Device3330
To ensure compliance with the City's Cross-
Connection Control Program, the
Department of Utilities annually tests
backflow devices to ensure that backflow
prevention assemblies are working properly.

Annually test backflow devices for city
departments requiring backflow testing and
repairs and issue a permit, or “tag” to show
compliance of the State requirement.

BASE CIP CONTINGENCY-WATER
Reserve for unforeseen capital program
needs.

Facilitate the completion of capital projects
by reserving appropriations for minor
overruns and provide a source of funds for
small projects that could not be anticipated
before the start of the fiscal year.

Distrib Main Rehab Program
Improve water distribution system reliability
including increased pressures and fire
suppression capabilities.

Replace water distribution mains (pipes
twelve-inch in diameter or smaller) and
other work associated with the distribution
system that have maintenance issues or
have exceeded their useful life.

DOU Facilities Impr/Rehab
Improve the existing condition of
Department of Utilities facilities through
maintenance and/or replacement projects
for continued occupancy of Department of
Utilities sites.

This program provides funding for capital
improvements to Department of Utilities
facilities including space planning and
rehabilitation projects.

DOU IT Program
Supports initiatives through technology
advancements by providing reliable systems
that improves customer service and staff
with tools to be more efficient and make
decisions that promotes the Department’s
vision.

Planning and implementation of IT initiatives
as well as coordination and management of
IT resources and oversight on all identified
IT programs, software, hardware upgrades,
and consulting services.

Drinking Water Quality 3330
Comply with drinking water regulatory
requirements of the California Surface
Water Treatment Rule, and California Code
of Regulations Title 22.

Provide for drinking water regulatory efforts
that encompass water production through
the water treatment plants, wells, and
reservoirs; and distribute this water to
ratepayers.

Fire Hydrant & Gate Valve Repl
Replace valves and fire hydrants to facilitate
positive system shutdowns and improve the
system’s reliability and safety.

Replace valves and fire hydrants in the
water distribution system that have failed or
are obsolete.

Florin Res Back Up Engine
Complete necessary improvements for
reliability of pump station and redundancy
needs for maintenance, including needed
safety upgrades. (Parent CIP to close in
FY24.)
Design and construct various improvements
at Florin Pump Station including air quality,
improved communications, flow meter
replacement, pump redundancy,
programming improvements, and improved
safety and reliability of station.

FWTP Rehab
Make available to the City a reliable 100-
120 million gallons per day of water
treatment capacity at the E.A. Fairbairn
Water Treatment Plant.

Rehabilitate the E.A. Fairbairn Water
Treatment Plant (FWTP) structures
constructed in 1964.

Information Technology - SCADA
Provide improvements and maintenance of
the SCADA system that have been deemed
essential and critical and are used by
Operations to remotely control and monitor
the facilities and equipment for the Water,
Wastewater, and Storm Drainage
infrastructure per the SCADA master plan.

This program funds the maintenance and
improvements of the Supervisory Control
and Data Acquisition (SCADA) system as
defined in the SCADA master plan.

Page 2 of 2 ends

Reservoir Rehab Program
Improve the water system reliability and
extend useful lives of the City’s reservoirs.

Rehabilitation work at water reservoirs,
including booster pump stations, which may
include patching interior and exterior
coatings, improvements to cathodic
protection systems, pump and motor
improvements, electrical upgrades,
structural repairs, etc.

Residential Water Metering Program
Comply with AB 2572, promote
conservation, and bill customers for the
amount of water they use. Once the City is
fully metered, a replacement program will
be developed to replace meters, gateways,
endpoints and other associated
infrastructure.

Install water meters at residential homes
that do not currently have meters.

Assembly Bill (AB) 2572 requires water
meters be installed on existing water service
connections by 2025. Once the City is fully
metered, a replacement program will be
developed and implemented.

Security & Emerg Prep Prog
Implement the Department of Utilities’
Security Master Plan recommendations, as
accepted by City Council in September
2014.

Provide security improvements to key
Water, Drainage, and Wastewater facilities
as recommended in the DOU Security
Master Plan.

Shasta Park 4Mg Res And Pmp St
Provide water to the southern portion of the
City during peak hour demands, fire
demands, and emergencies. (Parent CIP to
close in FY24.)
Design and construct a four million gallon
(4MG) water storage reservoir, booster
pump station, and two groundwater wells.

SRWTP Improvements Program
Make available to the City a reliable 160
million gallons per day of water treatment
capacity at the Sacramento River Water
Treatment Plant (SRWTP).

Maintenance projects, upgrades due to
regulatory changes, safety improvements,
or updating antiquated electrical equipment
are examples of projects to be designed and
implemented.

SRWTP Intake Sed Rmvl Parent CIP to close in FY24
SRWTP Property Acquisition Parent CIP to close in FY24
Trans Main Rehab Program
Ensure the reliability of the water
distribution system and reduce potential
damage from transmission main breaks.

Replace existing water transmission mains
(pipes larger than twelve-inch diameter)
that have significant maintenance issues
with new reliable mains that meet City
standards.

Unplanned Corrective Maint.

Enable repairs needed to continue operating
efficiently.

Correct and repair unexpected critical
failures with the City’s water infrastructure.

Water+ Program
Ensure the City has sufficient and resilient
water treatment capacity for the future
water demands of the City of Sacramento.

Design plans and specifications for the
development of necessary water supply
expansion improvements needed due to
expected growth as well as resiliency
projects for the City's water supply and
facilities.

Well Rehab Program
Improve City’s water supply reliability and
groundwater extraction capability. A reliable
groundwater supply will optimize
conjunctive management of the City’s water
supply and will allow the City to participate
in future drought banking programs and
water transfers.

Rehabilitate and replace dilapidated
infrastructure at the City potable
groundwater facilities. Monitoring
capabilities may be required and other work
associated with the groundwater well
program.

Annual Miscellaneous See Description
This represents estimated remaining
available appropriations for the current year
for the Transmission and Distribution Main
Rehabilitaion Programs. Estimated
requirements for future years are in those
programs and are described above.

Sources: DOU and EPS Appendix_B.2b

Appendix B-3
Companion Charts to Tables 2-10 and 2-11

Table 2-10: Charts by Land Use and Meter Size

$0
$5,000
$10,000
$15,000
$20,000
$25,000
Chart B-3.1a
Water Development Impact Fees
per Dwelling Unit
Single Family 1" Meter

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Chart B-3.2a
Water Development Impact Fees
Retail - 2, 2" Meters

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Chart B-3.3a
Water Development Impact Fees
Office - 2, 2" Meters

Table 2-11: Charts by Land Use and Area

Charts per Acre

APPENDIX C:

Separated Sewer System Utility

Appendix C-1: Technical Memorandum, Department of Utilities, November 18, 2009
Appendix C-2: Sample of Basin Improvements
Appendix C-3: Separated Sewer Detailed Fee Schedule
Appendix C-4: Companion Charts to Table 3-8

Appendix C-1
Technical Memorandum, Department of Utilities, November 18, 2009

Appendix C-2
Sample Basin Improvements
Basin G303
Improvements are the net of Plate 9 minus Plate 8. ESD are current to 2022 (see Table 3-2) based on 2040 General Plan projections (Table 3-1). Costs are escalated to 2022 dollars (Table 3-3).

Appendix C-3
Separated Sewer Detailed Fee Schedule

Land Use
ESDs per
Unit Factor
Cost Per
ESD
Fee per
Unit
Residential
Single Family Residential 1.00 Per residence $3,461 $3,565 Apartments 0.66 Per residence $3 ,461 $2 ,362
Duplex 0.83 Per residence $3 ,461 $2 ,946
Triplex 0.60 Per residence $3,461 $2,150
Fourplex 0.60 Per residence $3 ,461 $2 ,155
Mobile Home 0.67 Per residence $3,461 $2,395
Hotel and Motel 0.43 Per room $3 ,461 $1 ,530
College Dorm / Boarding House 0.40 Per bed or resident $3,461 $1,410 Residential Care/Skilled Nursing Facility 0.49 Per residence $3 ,461 $1 ,740 Retail
Single Retail 0.53 per 1,000 sq. ft. $3,461 $1,889
Community Shopping Center 0.85 per 1,000 sq. ft. $3 ,461 $3 ,040 Market 0.59 per 1,000 sq. ft. $3,461 $2,106
Dine-In Restaurant 1.77 per 1,000 sq. ft. $3 ,461 $6 ,322 Drive-In or Fast Food Restaurant 2.48 per 1,000 sq. ft. $3,461 $8,848 Cocktail Lounge/Bar 1.58 per 1,000 sq. ft. $3,461 $5,643 Coffee Shop 0.93 per 1,000 sq. ft. $3 ,461 $3 ,331
Service Station 1.25 per 1,000 sq. ft. $3,461 $4,460
Theatre 0.43 per 1,000 sq. ft. $3 ,461 $1 ,538
Commercial
Car Wash 3.64 per 0.1 acre of property $3,461 $12 ,976
Clinic: Medical, Dental, Veterinarian 0.32 per 1,000 sq. ft. $3 ,461 $1 ,127 Food Processing 3.02 per 1,000 sq. ft. $3,461 $10,750
Store/Office Combo 0.43 per 1,000 sq. ft. $3 ,461 $1 ,523 Auto Repair 0.18 per 1,000 sq. ft. $3,461 $658
Auto Sales 0.70 per 1,000 sq. ft. $3 ,461 $2 ,481
Unclassified Commercial 0.33 per 1,000 sq. ft. $3,461 $1,170 Industrial and Warehouse
Light Industrial 0.27 per 1,000 sq. ft. $3 ,461 $951
Heavy Industrial 0.30 per 1,000 sq. ft. $3,461 $1,058
Office Warehouse (>30% Office) 0.67 per 1,000 sq. ft. $3 ,461 $2 ,397 Distribution Warehouse (15%-30% Office) 0.13 per 1,000 sq. ft. $3,461 $454 Storage Warehouse (3%-14% Office) 0.08 per 1,000 sq. ft. $3 ,461 $286 Mini-Storage0 . 0 5 per 1,000 sq. ft. $3,461 $166
Unclassified Warehouse 0.15 per 1,000 sq. ft. $3,461 $542 Office
Single Story 0.33 per 1,000 sq. ft. $3,461 $1,167
Two Story 0.18 per 1,000 sq. ft. $3 ,461 $648
Multi-Story 0.11 per 1,000 sq. ft. $3,461 $398
Schools and Hospitals
Hospital 1.62 per bed $3 ,461 $5 ,772
Public Elementary , Middle, or Highschool 3.96 per 100 students $3,461 $14,127 Public or Private Colleges 3.84 per acre of property $3,461 $13 ,689 Private School 3.48 per acre of property $3,461 $12,406 Church 0.22 per 1,000 sq. ft. $3 ,461 $800
Sources: DOU and EPS Appendix_C.3

Appendix C-4
Companion Charts to Table 3-8
Per Unit

Per Acre

APPENDIX D:

Combined Sewer System Utility

Appendix D-1: Detail ed Fee Schedule
Appendix D-2: Fee Comparisons of Sewer Systems

Appendix D-1
Combined Sewer System Detailed Fee Schedule

All Land Uses
New Impervious Surface Cost per Square Foot $5.38
Land Use
ESDs
per
Unit Factor
Cost Per
ESD
Fee per
Unit
Residential
Single Family Residential 1.00 Per residence $7 ,413 $7,635 Apartments 0.66 Per residence $7 ,413 $5,060
Duplex 0.83 Per residence $7 ,413 $6,309
Triplex 0.60 Per residence $7 ,413 $4,605
Fourplex 0.60 Per residence $7 ,413 $4,615
Mobile Home 0.67 Per residence $7,413 $5,130
Hotel and Motel 0.43 Per room $7,413 $3,276
College Dorm / Boarding House 0.40 Per bed or resident $7 ,413 $3,019 Residential Care/Skilled Nursing Facility 0.49 Per residence $7 ,413 $3,727 Retail
Single Retail 0.53 per 1,000 sq. ft. $7 ,413 $4,047
Community Shopping Center 0.85 per 1,000 sq. ft. $7 ,413 $6,510 Market 0.59 per 1,000 sq. ft. $7,413 $4,511
Dine-In Restaurant 1.77 per 1,000 sq. ft. $7,413 $13,541 Drive-In or Fast Food Restaurant 2.48 per 1,000 sq. ft. $7 ,413 $18,950 Cocktail Lounge/Bar 1.58 per 1,000 sq. ft. $7 ,413 $12,087 Coffee Shop 0.93 per 1,000 sq. ft. $7 ,413 $7,136
Service Station 1.25 per 1,000 sq. ft. $7 ,413 $9,553
Theatre 0.43 per 1,000 sq. ft. $7,413 $3,294
Commercial
Car Wash 3.64 per 0.1 acre of property $7,413 $27,793
Clinic: Medical, Dental, Veterinarian 0.32 per 1,000 sq. ft. $7 ,413 $2,413 Food Processing 3.02 per 1,000 sq. ft. $7 ,413 $23,026
Store/Office Combo 0.43 per 1,000 sq. ft. $7 ,413 $3,261 Auto Repair 0.18 per 1,000 sq. ft. $7 ,413 $1,410
Auto Sales 0.70 per 1,000 sq. ft. $7,413 $5,313
Unclassified Commercial 0.33 per 1,000 sq. ft. $7,413 $2,507 Industrial and Warehouse
Light Industrial 0.27 per 1,000 sq. ft. $7 ,413 $2,038
Heavy Industrial 0.30 per 1,000 sq. ft. $7 ,413 $2,265
Office Warehouse (>30% Office) 0.67 per 1,000 sq. ft. $7 ,413 $5,135 Distribution Warehouse (15%-30% Office) 0.13 per 1,000 sq. ft. $7 ,413 $972 Storage Warehouse (3%-14% Office) 0.08 per 1,000 sq. ft. $7,413 $613 Mini-Storage0 . 0 5 per 1,000 sq. ft. $7,413 $357
Unclassified Warehouse 0.15 per 1,000 sq. ft. $7 ,413 $1,160 Office
Single Story 0.33 per 1,000 sq. ft. $7 ,413 $2,499
Two Story 0.18 per 1,000 sq. ft. $7 ,413 $1,388
Multi-Story 0.11 per 1,000 sq. ft. $7 ,413 $852
Schools and Hospitals
Hospital 1.62 per bed $7,413 $12,363
Public Elementary , Middle, or Highschool 3.96 per 100 students $7 ,413 $30,257 Public or Private Colleges 3.84 per acre of property $7,413 $29,320 Private School 3.48 per acre of property $7,413 $26,571 Church 0.22 per 1,000 sq. ft. $7 ,413 $1,713
Sources: DOU and EPS Appendix_D.1

Appendix D-2
Companion Charts to Table 4-9
Per Unit

$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000 Fee per Dwelling Unit
Chart D-2.1
Combined Sewer Development Impact Fees
per Dwelling Unit
Single Family
Local Regional

$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000 Fee per 1,000 Building Square Feet
Chart D-2.2
Combined Sewer Development Impact Fees
per 1,000 Building Square Feet
Retail
Local Regional

$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Fee per 1,000 Building Square Feet
Chart D-2.3
Combined Sewer Development Impact Fees
per 1,000 Building Square Feet
Office
Local Regional

Per Acre

$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000 Fee per Dwelling Unit
Chart D-2.4
Combined Sewer Development Impact Fees per Acre
Single Family
Local Regional

$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000 Fee per 1,000 Building Square Feet
Chart D-2.5
Combined Sewer Development Impact Fees per Acre
Retail
Local Regional

$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000 Fee per 1,000 Building Square Feet
Chart D-2.6
Combined Sewer Development Impact Fees per Acre
Office
Local Regional

APPENDIX E:

Storm Drainage System Utility

Appendix E-1: Assets by Basins and Basin Type
Appendix E-2: Companion Charts to Table 5-10

Appendix E-1
Assets by Basins and Basin Type
Pumped Basins

Gravity Basins

Appendix E-2
Companion Charts to Table 5-10
Charts per Unit

Per Acre Charts

Law and Legislation CommitteeSeptember 19, 2023

Law and Legislation Committee
September 19, 2023