Sacramento City Council
October 17, 2023

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01248 10/24/2023 Discussion Item 13.

Proposed Storm Drainage Development Fee Ordinance and Resolution Establishing Water, Sewer, Combined Sewer Development Fees and Adopting Nexus Studies (Noticed 10/02/2023 & 10/10/2023; Pass for Publication (XX/XX/2023); Published (XX/XX/2023) File ID: 2023-01248
Location: Citywide
Recommendation: Pass a Motion to continue on October 24, 2023.

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-Resolution
3-Exhibit A of Resolution: Department of Utilities Development Fees Nexus Studies 4-Ordinance, Clean
5-Ordinance, Redline
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 Water, Sewer, and Combined

File ID: 2023-01248 10/24/2023 Discussion Item 13.

Sewer Development Fees are outdated and underfunded thus requiring necessary fee adjustments aligned with recently updated Nexus Studies. Additionally, 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 Code relating to fee deferrals to add a reference to the new fee.

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 Water, Sewer, Combined Sewer, and Storm Drainage Development Fees (Utility Development Fees) will fund infrastructure necessary to support development.

Environmental Considerations: It has been determined that the proposed activities are not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b).

The activities described in this report are the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. As a result the proposed activities are not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).

Sustainability: The proposed ordinance and fees 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: The Law and Legislation Committee reviewed the Storm Drainage Development Fee Ordinance on September 19, 2023, and forwarded a recommendation of approval to the City Council by a vote of four to zero.

Rationale for Recommendation: The proposed development fee adjustments are needed to ensure

File ID: 2023-01248 10/24/2023 Discussion Item 13.
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 and the fee adjustments of the Water, Sewer, and Combined Sewer Development Fees will provide the financial capacity to fund major infrastructure projects necessary to meet future development demands.

Financial Considerations: Development fees provide a mechanism to ensure that new development pays for the public infrastructure needs caused by new growth. The Utility Development Fees framework also includes administrative fees to recoup staff time required to administer the program. Revenues derived from the Utility Development Fees will be deposited in separate funds.

Staff is recommending that City Council authorizes a new accounting fund to be known as the Storm Drainage Development Fee Fund.

The Utility Development Fees 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 financial 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 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 Nexus Studies to determine the appropriate development impact fees to fund necessary infrastructure projects in coordination with the growth trends of the City. The Utility Development Fees 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 Development Fees, as well as the establishment of the Storm Drainage Development Fee, were based on findings in the Nexus Studies. Without adjustment of the Utility Development Fees, the City’s financial capacity to fund major water, sewer, combined sewer system, and storm drainage infrastructure

File ID: 2023-01248 10/24/2023 Discussion Item 13.
projects will continue to erode.

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

The Utilities Department requests implementation 90 days after adoption.

RESOLUTION NO. 2023-

Adopted by the Sacramento City Council

October 17, 2023

ADOPTING THE UPDATED UTILITY DEVELOPMENT FEES NEXUS STUDIES,

ESTABLISHING THE AMOUNT OF WATER, SEWER, COMBINED SEWER, AND STORM

DRAINAGE FEES, AND ESTABLISHING THE STORM DRAINAGE DEVELOPMENT FEE FUND

BACKGROUND

A. Established in 1979, by ordinance 4268, the City’s Water System Development Fee imposes a fee on residential and non-residential development projects. The purpose of the fee is to fund capacity improvements to accommodate projected new residential and non-residential development. 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.

B. Established in 1984, by ordinance 84-051, the City’s Sewer System Development Fee imposes a fee on residential and non-residential development projects. The purpose of the fee is capacity improvements to accommodate projected new residential and non- residential development. 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.

C. Established in 2005, by ordinance 2005-0020, the City’s Combined Sewer Development Fee imposes a fee on residential and non-residential development projects. The purpose of the fee is to fund capacity improvements to accommodate projected new residential and non-residential development. The Combined Sewer 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.

D. The Storm Drainage Development Fee was established by City Council on _____________, 2023. The purpose of the fee is to provide a minimum 100-year event protection to structures, a minimum 10-year event protection to streets, control urban runoff pollutants, and avoid public safety hazards. A new accounting fund must be created for the Storm Drainage Development Fee in accordance with Article IX, section 114, of the City Charter and with Government Code Section 66006.

E. New and improved utility infrastructure will be required to support the City of Sacramento’s General Plan and accommodate projected development and growth through 2040.

F. The City prepared the Development Impact Fee Program and Nexus Studies (Nexus Studies), attached as Exhibit A, which demonstrate a reasonable basis to establish Water, Sewer, Combined Sewer, and Storm Drainage Development Fees by establishing the relationship between new development, the needed utility infrastructure to serve that new development, the estimated cost of the additional infrastructure, and the amount of the development impact fees.

G. As demonstrated by the Nexus Studies, there is a reasonable relationship between the need for public facilities and the type of development projects on which the fee is imposed (new dwelling units, buildings, and structures; additions to the commercial building area and residential building area of buildings and structures; and changes in use of buildings and structures). These projects stimulate population growth, which in turn stresses the existing water system, combined sewer system, separated sewer system, and drainage system and triggers demand for new and improved facilities.

H. There is also a reasonable relationship between using fee revenues to fund public facilities and the type of development projects on which the fee is imposed. As explained above, these projects increase the demand for public facilities. Using fee revenues to satisfy this demand will ensure consistent levels of service for residents and mitigate public safety hazards associated with strained public facilities.

I. The Nexus Studies also establish the basis for determining a reasonable relationship between the amount of the water, combined sewer, separated sewer and drainage system development impact fees and the cost of public facilities attributable to particular development projects, taking into account anticipated growth and the costs of designing, constructing, installing, improving, and acquiring public facilities.

J. The Nexus Studies set out the proposed maximum amount of the development fees, attached as Exhibit B, and these amounts have been determined and calculated in a manner consistent with the Mitigation Fee Act.

K. On October 17, 2023, the City Council held a public hearing in the manner required by Government Code section 66018 to consider the adoption of this resolution. The public hearing was also noticed pursuant to and in compliance with Government Code sections 66016, 66019, and 6062a, and was held as part of a regularly scheduled meeting of the City Council.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. Findings

A. The recitals set forth above are true and correct and are incorporated herein by reference as findings.

B. The Nexus Studies do all of the following:

a. Identify the purpose of the fees.

b. Identify how the fees are to be used.

c. Determine how a reasonable relationship exists between the fees’ use and the type of development project on which the fees are imposed.

d. Determine how a reasonable relationship exists between the need for the facility and the type of development project on which the fees are imposed.

e. 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 imposed.

f. Demonstrate that the fees for existing and new public facilities are of proportional benefit to the development project being charged and do not exceed the reasonable cost of providing the service.

C. The Water, Sewer, Combined Sewer, and Storm Drainage Development Fee Schedule, attached as Exhibit B, has been determined and calculated in a manner consistent with the Nexus Studies.

D. SB 330 exemption findings are as follows:

a. Water System. Imposing the increased Water System Development Fee upon new housing projects is necessary to mitigate or avoid specific, adverse impacts upon the public health or safety and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact.
i. The City’s Urban Water Management Plan, Water Master Plan, and 2040 General Plan Update demonstrate that the City does not currently have water treatment capacity for projected growth through 2040. The forecasted capacity necessary to serve new growth is 57 million gallons a day, including 22 million gallons a day of new treatment capacity. DOU must construct or acquire additional capacity via acquisition or construction of new water sources, treatment, and storage and conveyance facilities. The Nexus Studies identify projects, RiverArc and the Sacramento River Water Treatment Plant, designed to meet the retail capacity requirements both in terms of quality and quantity for future customers.

ii. The Nexus Studies calculated the required contribution from new development to fully fund water treatment capacity for new growth through 2040.

iii. In order to fund the water treatment capacity projects, the City must collect the proportionate share of the cost from new development.

iv. California Health & Safety Code section 116525 requires the City to obtain a permit from the Division of Drinking Water in order to operate its public water system. The City’s Domestic Water Supply Permit Number 01-09- 06-PER-003 (Water Supply Permit) is a written public health and safety requirement that requires the City to maintain adequate financial capacity to reliably operate the City’s water system and comply with all statutory and regulatory drinking water requirements and conditions set forth in the Water Supply Permit. THe Water Supply Permit also contains findings that the City has demonstrated enough capacity to serve new growth for a ten- year period.

v. If the City charges new development less than its proportionate share of the cost of water treatment capacity, the City will not maintain adequate financial capacity to pay for the new water treatment capacity required to service projected new growth, which will violate the terms of the Water Supply Permit.

vi. The alternative to requiring individual development projects to pay for incremental water treatment capacity increases is not feasible because water treatment capacity is planned, designed, and constructed by means of complex, expensive projects. The Nexus Studies identify RiverArc (estimated $214 million) and the Sacramento River Treatment Plant (estimated $489 million) as examples of water treatment capacity projects that the City is considering.

b. Sanitary Sewer System. Imposing the increased Sewer System Development Fee upon new housing projects is necessary to mitigate or avoid specific, adverse impacts upon the public health or safety and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact. i. The City’s 2040 General Plan Update, 2018-2019 Sewer System Management Plan, Technical Memorandum: Preliminary Hydraulic Analysis Separated Sewer Basins located in Appendix C-1 of the Nexus Studies, and Nexus Studies demonstrate that the City does not currently have separated sewer capacity for projected growth through 2040.The City’s Sewer System Management Plan identifies 12 of 15 sewer basins in the City as having potential capacity deficiencies when future infill and redevelopment land use conditions are considered. Also, two additional basins have been identified as potentially having capacity deficiencies when considering future land use conditions. Table 3-3 in the Nexus Studies identifies the City’s current modelling for improvements necessary to expand sewer capacity to serve projected growth.

ii. The Nexus Studies also calculated the required contribution from new development to fully fund separated sewer capacity for new growth through 2040 in Table 3-3. Procedures for identifying capacity improvement costs associated with growth were derived from the methods noted in a Technical Memorandum, included in part in Appendix C of the Nexus Study, and some basins were then studied further utilizing improved hydraulic analysis and formalized in a master plan for those basins. Identified capacity improvements are incorporated into the City’s wastewater 30-Year Capital Improvement Program list and are awaiting funding.

iii. Water Code section 12263 authorizes the California State Water Resources Control Board to prescribe waste discharge requirements The City’s Sanitary Sewer System Permit (WQO 2022-0103-DWQ) (SSS Permit) is a written public health and safety requirement that prohibits discharge of wastewater that has the potential to affect surface waters of the state or create a nuisance. The SSS Permit requires the City to take a proactive approach to avoid wastewater spills caused by insufficient capacity due to population increase and/or new connections from industrial, commercial, and other system users and to facilitate adequate local funding and management of its sanitary sewer system. The SSS Permit also requires the City to establish and maintain a means to manage all necessary revenues and expenditures related to the sanitary sewer system and allocate the necessary resources to comply with the SSS Permit.

iv. If the City charges new development less than its proportionate share of the cost of new sanitary sewer capacity, then the City will not be able to allocate the necessary resources to pay for new capacity to meet projected new growth, which will contribute to the likelihood of sewage spills and violate the resource allocation terms of the SSS Permit.

v. The alternative to requiring individual development projects to pay for incremental capacity increases is not feasible because the Nexus Studies identify sewer basins where capacity increases necessary to serve new growth cost millions of dollars. Preventing the City’s ability to collect new growth’s proportionate share of costs on a systemwide basis would create significant barriers to new development in specific sewer basins in the City.

c. Combined Sewer System. Imposing the increased Combined Sewer System Development Fee upon new housing projects is necessary to mitigate or avoid specific, adverse impacts upon the public health or safety and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact. i. The City’s 2040 General Plan Update and Nexus Studies demonstrate that the City does not currently have combined sewer system (CSS) capacity for projected growth through 2040. Section 9.4.3 of the City’s Design and Procedure Manual and the City’s Combined Sewer System Implementation Plan (CSSIP) confirm that the CSS does not contain additional capacity for development.

ii. The Nexus Studies calculated the required contribution from new development to fully fund CSS capacity for projected new growth through 2040.

iii. Water Code section 12263 authorizes the California Regional Water Resources Control Board Central Valley Region to prescribe waste discharge requirements The City’s Combined Sewer System Permit (NPDES CA0079111) (CSS Permit) is a written public health and safety standard that prohibits the discharge of wastewater sewage that has the potential to affect the surface waters of the state or create a nuisance. The CSS Permit requires the City to continue to implement its Long Term Control Plan (LTCP) to manage the flow capacity of the CSS to minimize CSS overflows and CSS outflows as new development and
redevelopment projects are implemented throughout the CSS service area that have the potential to increase CSS flows. The City’s permit also requires implementation measures to the maximum extent practicable to ensure that new flows from growth within the CSS service area do not result in an increase in CSS overflows or CSS outflows, or reduce the overall percentage of flow routed to the Sacramento Regional Wastewater Treatment Plant.

iv. If the City charges new development less than its proportionate share of the cost of new CSS capacity, the City will not be able to allocate the necessary resources to fully implement its LTCP or ensure that new flows from growth do not result in CSS overflows or CSS outflows, which will contribute to the likelihood of unpermitted discharges and violate the terms of the CSS Permit.

v. The alternative to requiring individual development projects to pay for necessary capacity increases is not feasible because, as the Nexus Studies note, there is no existing CSS capacity for new development to utilize. The capital improvements required by the demands of new growth are typically incremental enlargements of piping to provide the storage capacity required or periodic areawide storage facilities. On a per-project basis, the cost of in-line storage per foot of pipe translates to costly pipeline enlargement and replacement projects for those development projects that trigger the need for increased capacity. Preventing the City’s ability to collect new growth’s proportionate share of costs on a systemwide basis would create significant barriers to new development for projects that triggered capacity increases.

Section 2. Adoption of the Nexus Studies and Establishment of the Fee Amounts

The Nexus Studies and other supporting data referred to in the Nexus Studies are hereby approved and adopted. The amount of the Water, Sewer, Combined Sewer, and Storm Drainage Development Fees as shown on Exhibit B are hereby established pursuant to the Nexus Studies.

Section 3. Fund Establishment

The City Manager, or designee, is hereby authorized and directed to create a new accounting fund to be known as Storm Drainage Development Fee Fund.

Section 4. Zero-Dollar Impact Fees for Affordable Housing

The fees set forth in Exhibit B are hereby added to Exhibit A of Resolution 2019-0185 as follows:

Code
Section
Fee Name Dept. Fee Rate for Affordable
Dwelling Units*
Fee for All Other
Projects
Ch.

13.16.125
Storm drainage
development fee
DOU

$0.00

Per Resolution
2023-

These fees may be reduced to a zero -dollar rate when incurred in connection with the development of affordable housing as set forth in Resolution 2019-0185.

Section 5. Effective Date

The resolution takes effect 90 days after adoption..

Section 6.

Exhibit A and B are part of this resolution.

Table of Contents:

Exhibit A – Development Impact Fee Program and Nexus Studies Exhibit B – Water, Sewer, Combined Sewer, and Storm Drainage Development Fee Schedule

Adopted by the City of Sacramento City Council on October 17, 2023, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Attest:

The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the Sacramento City Council.

EXHIBIT A

DEVELOPMENT IMPACT FEE PROGRAM AND NEXUS STUDIES

EXHIBIT B

WATER, SEWER, COMBINED SEWER, AND STORM DRAINAGE

DEVELOPMENT FEE SCHEDULE

1. Water Development Fee*:

Meter Size (Inches) Fee
1 $13,036
1 ¼ $19,554
1 ½ $26,071
2 $41,714
3 $91,250
4 $164,250
6 $338,929
8 $730,002
10 $1,095,002
* Water Development Fee credit is given for existing water service connections. No Water Development Fee for fire service connections.

2. Sewer Development Fee: Either A or B

A. Combined Sewer Service Area
Fee Component Fee
Sewer $7,635 per each ESD
Storm Drainage $5.38 per sq. ft. of increased
imperviousness
(Offset by sewer portion of the fee)

B. Separated Sewer Development Fee Service Area

3. Drainage Development Fee*:

Drainage Basin Type Fee
Pumped Basin
$0.2434 per sq. ft. of additional
imperviousness
(Equivalent to $10,602 per acre of
additional imperviousness)
Gravity Basin
$0.1491 per sq. ft. of additional
imperviousness
(Equivalent to $6,496 per acre of
additional imperviousness)
*Also applies to areas of the Combined Sewer System, with separated City drainage basins.

Fee
$3,565 per ESD

Hearing Report
Development Impact
Fee Program and Nexus Studies

Prepared for:

City of Sacramento
Department of Utilities

Prepared by:

Economic & Planning Systems, Inc. (EPS)

September 20, 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 ................................. 18 Incremental Methodology and Fee per Equivalent Meter ......................... 20 Capital Costs, Allocation, and Cost per Equivalent Meter ......................... 26 Water System Development Impact Fee ............................................... 27 Comparison with Surrounding Communities .......................................... 28 Nexus Findings ................................................................................. 30 The Separated Sewer System Utility ............................................... 34 Introduction and Description............................................................... 34 Growth and Demand ......................................................................... 36 Incremental Methodology and Fee per Equivalent Standard Dwelling ........ 40 Comparison with Surrounding Communities .......................................... 45 Nexus Findings ................................................................................. 46 The Combined Sewer System Utility ............................................... 50 Introduction and Description............................................................... 50 Growth and Demand ......................................................................... 52 Incremental Methodology and Cost per Equivalent Standard Dwelling and Impermeable Square Foot ............................................... 53 Comparison with Surrounding Communities .......................................... 58 Nexus Findings ................................................................................. 59 The Storm Drainage System Utility ................................................. 65 Introduction and Description............................................................... 65 Growth, Demand, and Allocations ........................................................ 67 Buy-In Methodology, Fee Calculation, and Credits .................................. 68

Fee per Developable Acre and Square Foot ........................................... 72 Use of Fees ...................................................................................... 74 Comparison with Surrounding Communities .......................................... 75 Nexus Findings ................................................................................. 76

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: Existing Equivalent Meters
B-2: Water System Asset Analyses
B-3: Capital Improvement Program
B-4: 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. Change in Maximum Daily Demand .............................................. 16 Table 2-2. Equivalent Meter Projection and new Growth Share ........................ 17 Table 2-3. Existing Assets .......................................................................... 19 Table 2-4. Equivalent Meter Buy-In Fee ....................................................... 20 Table 2-5. RiverArc Capacity, Benefit, and Cost Allocation .............................. 24 Table 2-6. CIP Summary of Proportional Allocations and Costs ........................ 26 Table 2-7. Future Demand Shares ............................................................... 26 Table 2-8. Equivalent Meter Buy-In and Future Cost Allocation ........................ 27 Table 2-9. Buy-In and Future Cost Fee Schedule for New Development ............ 27 Table 2-10. Fee Comparisons by Land Use and Meter Size .............................. 28 Table 2-11. Fee Comparisons by Land Use and Area ...................................... 29

Table 3-1. 2040 Projected Growth in Land Use .............................................. 37 Table 3-2. Existing and Projected Equivalent Standard Dwellings ..................... 39 Table 3-3. System Value and Improvement Costs .......................................... 41 Table 3-4. Improvement Cost per ESD ......................................................... 42 Table 3-5. Cost per ESD with Planning Costs ................................................ 42 Table 3-6. Development Impact Fee Schedule............................................... 43 Table 3-7. 2040 Estimated Capital Requirements .......................................... 44 Table 3-8. Fee Comparisons ....................................................................... 45

Table 4-1. Equivalent Standard Dwelling and New Impermeable Surface Storage Requirements and Costs ..................................................... 53 Table 4-2. Capacity Requirements Examples ................................................. 54 Table 4-3. New and Existing ESDs ............................................................... 55 Table 4-4. Cost per ESD with Planning Costs ................................................ 55 Table 4-5. Development Impact Fee Schedule—Sewerage and Drainage ........... 56 Table 4-6. Fee Examples ............................................................................ 57 Table 4-7. 2040 Sewer Improvement Costs and Revenue at Buildout ............... 57 Table 4-8. Vacant Acres and Impervious Surface ........................................... 58 Table 4-9. Fee Comparisons ....................................................................... 59

Table 5-1. New Growth by Acreage, Residential Units, and Nonresidential Square Feet ........................................................................ 67 Table 5-2. Existing Assets .......................................................................... 68 Table 5-3. System Value per Acre by Basin Type ........................................... 69 Table 5-4. Weighted Average Impermeable Surface Coefficient ....................... 70 Table 5-5. System Value per Impervious Acre and Square Foot by Basin Type .............................................................................................. 71 Table 5-6. Fee per Impervious Square Foot by Basin Type .............................. 72 Table 5-7. Pumped Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot ..................................................... 73 Table 5-8. Gravity Basins Zone Fee Calculation by Land Use per Gross Developable Acre and Square Foot ..................................................... 74 Table 5-9. Proportional Shares by Basin Type for Shared Projects .................... 75 Table 5-10. Fee Comparisons ..................................................................... 76

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 ................................................. 35

Figure 4-1. Combined Sewer System Utility Boundaries and Key System and Geographic Characteristics ................................................. 51

Figure 5-1. Storm Drainage System Utility Boundaries and Key System and Geographic Characteristics ................................................. 66

Sacramento DOU Development Impact Fee Program and Nexus Studies September 20, 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:
 Draft 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 September 20, 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 draft 2040 General Plan Update (2040 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 Update 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. In all cases, the 2040 General Plan data provides the primary drivers. In the Water system, the Water Master Plan drives the demand projection and draws on the same 2040 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.

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

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

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
Maximum Daily Demand (MDD) in
Equivalent Meters (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 September 20, 2023
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indicators with examples of some of the associated demand factors is shown in Table 1-3.

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 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
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approach and the Incremental Cost approach. The Buy-In approach determines the value of current assets and allocates on a reasonable-relationship basis a 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 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
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100 years old. The service area is also highly developed with complex underground infrastructure that is not always well documented. As a result, actual 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.

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 Sacramento DOU Development Impact Fee Program and Nexus Studies September 20, 2023
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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.

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.

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 Sacramento DOU Development Impact Fee Program and Nexus Studies September 20, 2023
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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 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

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

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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.

Both the Storm Drainage and the Combined Sewer utilities have a drainage component. The nexus findings in each chapter of these utilities will address the exemption requirements. 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] $13,036 $7,635 $6,479 - $27,150 Sacramento - Separated Sewer and Gravity Drainage $13,036 $3,565 $6,479 $530 $23,610 Sacramento - Separated Sewer and Pumped Drainage $13,036 $3,565 $6,479 $847 $23,926 Sacramento - SASD and Gravity Drainage $13,036 $3,194 $6,479 $530 $23,239 Sacramento - SASD and Pumped Drainage $13,036 $3,194 $6,479 $847 $23,556 Sacramento - All Areas Average [2] $13,036 $4,231 $6,479 $688 $24,296 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 18% 12% -11% -71% 6% 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] $7,661 $4,047 $1,296 - $13,004 Sacramento - Separated Sewer and Gravity Drainage $7,661 $1,889 $1,296 $543 $11,389 Sacramento - Separated Sewer and Pumped Drainage $7,661 $1,889 $1,296 $867 $11,713 Sacramento - SASD and Gravity Drainage $7,661 $2,053 $1,296 $543 $11,553 Sacramento - SASD and Pumped Drainage $7,661 $2,053 $1,296 $867 $11,877 Sacramento - All Areas Average [3] $7,661 $2,386 $1,296 $705 $11,907 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 -20% 59% -27% -65% -18% 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] $5,472 $2,520 $1,296 - $9,288 Sacramento - Separated Sewer and Gravity Drainage $5,472 $1,176 $1,296 $361 $8,305 Sacramento - Separated Sewer and Pumped Drainage $5,472 $1,176 $1,296 $576 $8,520 Sacramento - SASD and Gravity Drainage $5,472 $1,467 $1,296 $361 $8,595 Sacramento - SASD and Pumped Drainage $5,472 $1,467 $1,296 $576 $8,811 Sacramento - All Areas Average [3] $5,472 $1,561 $1,296 $468 $8,704 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 -20% 38% -27% -67% -19% Source: EPS Exec_5c
Notes:
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided. [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.

Office Fees per 1,000 Building Square Feet [1]
Table 1-6a - Single Family
Per Acre Fees
Water
Local
Sewer
Regional
Sewer Drainage Totals
Jurisdiction
Sacramento - Combined Sewer System [1] $91,250 $53,448 $45,353 - $190,051 Sacramento - Separated Sewer and Gravity Drainage $91,250 $24,954 $45,353 $3,508 $165,065 Sacramento - Separated Sewer and Pumped Drainage $91,250 $24,954 $45,353 $5,725 $167,282 Sacramento - SASD and Gravity Drainage $91,250 $22,360 $45,353 $3,508 $162,471 Sacramento - SASD and Pumped Drainage $91,250 $22,360 $45,353 $5,725 $164,688 Sacramento - All Areas Average [2] $91,250 $29,615 $45,353 $4,616 $169,911 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 18% 12% -11% -72% 5% 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] $83,429 $44,069 $14,111 - $141,609 Sacramento - Separated Sewer and Gravity Drainage $83,429 $20,575 $14,111 $5,586 $123,702 Sacramento - Separated Sewer and Pumped Drainage $83,429 $20,575 $14,111 $9,118 $127,233 Sacramento - SASD and Gravity Drainage $83,429 $22,360 $14,111 $5,586 $125,486 Sacramento - SASD and Pumped Drainage $83,429 $22,360 $14,111 $9,118 $129,018 Sacramento - All Areas Average [3] $83,429 $25,988 $14,111 $7,352 $129,410 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 -20% 59% -27% -67% -18% 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] $83,429 $38,415 $19,756 - $141,600 Sacramento - Separated Sewer and Gravity Drainage $83,429 $17,935 $19,756 $5,197 $126,317 Sacramento - Separated Sewer and Pumped Drainage $83,429 $17,935 $19,756 $8,482 $129,602 Sacramento - SASD and Gravity Drainage $83,429 $22,360 $19,756 $5,197 $130,741 Sacramento - SASD and Pumped Drainage $83,429 $22,360 $19,756 $8,482 $134,026 Sacramento - All Areas Average [3] $83,429 $23,801 $19,756 $6,839 $132,457 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 -20% 38% -27% -68% -19% Source: EPS Exec_6c
Notes:
[2] Includes Drainage under Local Sewer.
[3] Averages exclude cities where the services are not provided. [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).

Office Fees per Acre [1]
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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”, and 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 then that presented in the above multi-service comparison, and is likely a fairer comparison for this system. This broader set is discussed in that chapter and is used for comparative purposes with the Water services of other jurisdictions.

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, including metered connections of various sizes.

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
In the summer of 2021, Sacramento City Council adopted an Urban Water Management Plan (UWMP) that identified the projected water demands and necessary water entitlements to meet that demand based on the draft 2040 General Plan update (2040 Update). In early 2023, the update to the Water Master Plan (WMP)
3, which identifies needed infrastructure consistent with the UWMP, was completed by DOU based on the draft 2040 Update. As noted in the Executive Summary of this document, the 2040 Update is the basis for all the projections used for each of the utilities in this study. Thus, the UWMP, WMP and demand calculations in this document are based on the same projection of future demand – anchored to the 2040 Update.

Maximum Daily Demand (MDD) is a standard and customary unit of measurement for water capital facility planning. The metric is applicable to the measurement of current and future capacity demands from existing and new users. Based on information in the WMP, Table 2-1 illustrates existing and future capacity requirements measured in millions of gallons per day based on MDD.

Table 2-1. Change in Maximum Daily Demand

The forecasted capacity necessary to serve new growth is 57 MGD. Of the 57 MGD, 35 MGD is available within the existing treatment and conveyance system, which leaves a remaining 22 MGD. This demand forecast aligns with the draft 2040 Update. The WMP contemplated the possibility for higher overall system demands if drought rebound factors were assumed. This would have the effect of increasing the demand from existing users, thereby decreasing remaining capacity in the existing system for new growth, and thus triggering a larger incremental increase in production facilities to accommodate that new growth.

3 Water Master Plan Update, West Yost, Final Report January 2023.

Retail Only to 2040
Capacity Requirements formula
Millons of
Gallons Per
Day (MGD)
Existing MDD [1] a 150.50
Future Development MDD [2] b 57.00
Total Requirement c = a + b 207.50
Percent Increase in Existing d = b / a 37.9%
Percent Future of Total e = b / c 27.5%
Source: DOU water_1
Notes:
[2] WMP Table 7-2 adjusted per Note 1.
[1] WMP Table 6-1 plus 2% to account for future climate change per the American River Basin Study, discussed in detail below.

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Given statewide water efficiency mandates, the City is not electing to assume future water demands return to past practices. All water demand forecasts have also embedded expected water efficiency practices.

The WMP indicates the existing water system includes approximately 35 mgd of excess capacity available to serve future development. The remaining 22 mgd in future capacity requirements will necessitate DOU to construct or acquire additional capacity via acquisition or construction of new water sources, treatment, and storage and conveyance facilities. The capital projects to be discussed below are designed to meet the retail capacity requirements both in terms of quality and quantity for both existing and future customers.

For the City’s retail water customers, water delivery is almost exclusively via metered connections. Meters of different sizes vary by delivery capacity as measured by maximum allowable flow, expressed as either Flow Factor or Equivalent Meter (EM). The typical meter size for the capacity required for a single-family residence is a standard 1” meter with a Flow Factor or EM of 1.

Meters can be up to 10” in diameter with 84 times the flow capacity of a standard 1” meter.

For capacity charge purposes, costs are expressed per EM where the projection of future EMs is based on the WMP and draft 2040 Update projections. The future EM projection and the existing and future growth shares of 2040 capacity are shown on Table 2-2.

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

Equivalent Meters formula Factor
Existing Equivalent Meters [1] a 181,226
Future % Increase [2] b 37.9%
Future New Equivalent Meters c = a * b 68,637
Total Equivalent Meters d = a + c 249,863
Percent Future of Total e = c / d 27.5%
Percent Existing of Total f = 100% - e 72.5%
Sources: DOU and EPS water_2
Notes:
[1] See Appendix B-1.
[2] See Table 2-1.

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This demand profile of existing and future capacity requirements drives the allocation of current and future shares of existing capacity as well as future capacity requirements and their costs. The share percentages in Table 2-2 apply for assets of common benefit to all customers.

Via the Buy-In approach, discussed in detail in the Executive Summary, future development is buying into existing water system assets that have common (or shared) benefit. As described in more detail below, the current depreciated value of the existing system is allocated proportionately between existing and new development using the percentages in Table 2-2.

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, reservoirs, and transmission lines) have been paid for by current rate payers. Future customers will “buy in” to 27.5 percent of these assets by way of a buy-in development capacity charge. The assets are depreciated, and developer contributions and assets financed with long-term debt 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 capacity charges 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 intangible assets such as franchise licenses and water rights. 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 tangible and 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, 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-2. Other assets included Sacramento DOU Development Impact Fee Program and Nexus Studies September 20, 2023
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are related to rolling stock and software, both of which have been valued from the City’s accounting records. 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-2.

As mentioned above, 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 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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these debt-financed assets through future rate revenue. Deductions are also made for developer contributions 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 capital expenses related to the use by new growth of existing assets included in the calculation of current value in Table 2-3. The projects, and the process by which they are established, are described in the next section under Capital Improvement Projects (CIPs). Use of the fee will be accounted for and reported in accordance with Government Code section 66013 and as discussed in the Nexus Findings section below.

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 (27.5%) 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 and in Appendix B-3 details future projects and the specific allocation used.

Current System
2022 Value $1,380,745,142
New Growth Share % 27.50%
New Growth Share $379,704,914
Future Equivalent Meters 68,637
Fee per Equivalent Meter $5,532
Source: DOU, EPS Water_4
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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 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.
 UWMP identified water conservation practices, future water demands, water supplies, water efficiency practices, water shortage contingencies, and climate change adaptation considerations.
 Both the 2013 WMP and the current WMP are consistent with the demand projections in the 2035 General Plan Update and draft 2040 Update, respectively.
 CIPs to implement the Master Plans and adapt the water system to future demand requirements and best practices as identified in the 5 year and 30 year budgets.
 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.

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 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.

The CIP consists of 18 project types, or cost centers, for multiple individual projects of the same type, and totals 1,987,779,203. All proposed projects, costs, allocations, and descriptions are included in Appendix B-3. Major projects are discussed below.

Resiliency Projects, as a category of projects, are increasingly important because of changing regulations, continued 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 improvements common to all customers; thus, costs will be shared proportionately. Below are examples of upcoming Resiliency Projects:
 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 for finished water quality.  Fairbairn improvements to return 100 million gallons per day (mgd) firm from the existing 80 mgd and 120-mgd hydraulic capacity as one of the most cost- effective approaches to adding capacity for new growth.  Replacement of the chlorine gas system with a safer means of chlorine disinfection at all water supply facilities.

All of the Resiliency Projects have a cost of $882,352,352. The proportional share for new growth is 27.5 percent, or $ 242,646,897
The American River Basin Study (ARBS) and Climate Change

Climate change has the potential to alter local climatic patterns and meteorology.

As part of the draft 2040 General Plan, the City’s Climate Adaptation Plan (CAP) has been updated to be a standalone document to provide framework for Greenhouse Gas reduction and establish the City as a leader of climate action.

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Along with the draft 2040 General Plan Update, the CAP is also available for public review on request.

Incorporated into the Draft 2040 CAP are the results of a 2022 study published by the United States Bureau of Reclamation (USBR). The 2022 American River Basin Study (ARBS) was the product of a multi-year study to identify water supply- demand imbalances and climate change adaptation strategies specific to the American River Basin (Basin). The ARBS can be located at:
https://www.usbr.gov/watersmart/bsp/arbs/.

Overall results of the ARBS indicate the region can expect:
 A probability of fewer wet years and increased temperatures with earlier run- off times.
 In dry years, increased evapotranspiration rates for irrigation, changed snowpack and runoff dynamics and more frequently triggered legal flow criteria on the lower American River that results in an annualized reduction of diversions at the Fairbairn Water Treatment Plant.

As a result of increased temperature, the ARBS projects a 2-4 % increase in water demands through 2050, and upwards of 7% through 2070. Growth related water demands included in this document incorporate the lowest escalator (2%) to factor in climate change pressure. This factor was not previously included in water planning documents.

The ARBS also predicts warmer source water conditions in the future. Warmer source water conditions degrade the quality of the water. This Nexus Study incorporates the addition of advance Ozone Treatment to adapt to changing conditions.

The “RiverArc” Project is a Capacity and Resiliency Project, 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 ARBS. In 2015 and 2021, Folsom Reservoir levels were very close to not being able to meet minimum municipal water supply intake elevations. 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 that does not convey the same triggers that the City’s Fairbairn Water Treatment facility on the lower American River experiences during dry years or low flow rates that significantly limits that facility’s ability to divert the full permitted capacity.

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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 City and regional partners.

The estimated cost of RiverArc is $214,491,870 for an additional 30 million gallons of capacity dedicated to the City. All other costs related to regional RiverArc partners are excluded from this report because these other costs are not attributable to new growth within the City’s Water System. 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 reliability common to all customers in the City Water System 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

Capacity
Allocation
[1]
Proportional
Benefit
Allocation Cost
New Growth and Shared Allocation formula
Capacity and Total Cost a 30.0 100.00% 214,491,870
New Growth b = (22 / 30) * a 22.0 73.33% 157,294,038
Existing Development - - - - Shared c = (8 / 30) * a 8.0 26.67% 57,197,832
Shared Allocation
Shared c 8.0 100.00% 57,197,832
New Growth d = c * 27.5 2.2 27.50% 15,729,404
Existing Development e = c - d 5.8 72.50% 41,468,428
New Growth and Existing Development Allocation
New Growth f = b + d 24.2 80.67% 173,023,442
Existing Development g = e 5.8 19.33% 41,468,428
Capacity and Total Cost h = f + g = a 30.0 100.00% 214,491,870 Sources: DOU, EPS Water_5
Note:
[1] In millions of gallons per day (mgd), rounded to the nearest tenth.

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

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 for new growth at this time. The capital project summary for the SRWTP alternative is provided in Appendix B-3. RiverArc, although it involves a more complex governance structure, 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 of the SRWTP alternative is estimated at $489 million, with $194 million allocable to the 22 MGD of new growth, compared with the $173 million allocable from the RiverArc project. Should the SRWTP become the priority for allocation, the Nexus Study would be amended.

In addition to the portion of RiverArc allocated solely to new growth, other, exclusively new growth projects, include $75,493,000 for trunk main distribution lines and $13,229,000 for a new reservoir. All of these projects are detailed in Appendix B-3.

A final category of capital planning and the Water+ Programmatic Approach is improvements to the distribution system at an estimated cost of $858,297,551.

These projects are also detailed in Appendix B-3. 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 $7,124. The allocation of the per EM fee by meter size is presented in Table 2-9 on the next page.

Projects [2] Estimated Cost Existing New Existing New
formula a b c d = a * b e = a * c
Resiliency $882,352,352 72.5% 27.5% $639,705,455 $242,646,897 Growth $246,016,038 0.0% 100.0% - $246,016,038
Distribution $858,297,551 100.0% 0.0% $858,297,551 -
Annual Misc. $1,113,262 72.5% 27.5% $807,115 $306,147
Total $1,987,779,203 75.40% 24.60% $1,498,810,121 $488,969,082 Sources: DOU, EPS Water_6
Notes:
[1] Totals may not agree with detailed allocations and numbers due to rounding effects. [2] Details are provided in Appendix B-3. The elements that constitute the RiverArc project are shown on Table 2-5.

Proportional Allocation
Percent Cost
Totals %$ % $
formula a bc = a * b d e = a * d
Demand Shares
Future Assets [1] $1,987,779,203 75.40% $1,498,810,121 24.60% $488,969,082 2040 Equivalent Meters [2] 249,863 181,226 68,637
Cost per Equivalent Meter $7,955 $8,270 $7,124
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 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.

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

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

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 $1,987,779,203 $3,368,524,344 New Growth Share % 27.50% 24.60% 25.8%
New Growth Share $379,704,914 $488,969,082 $868,673,996 Future Equivalent Meters 68,637 68,637 68,637
Fee per Equivalent Meter $5,532 $7,124 $12,656
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 $12,656 $12,656 $13,036
3/4-inch 1.0 1.0 $12,656 $12,656 $13,036
1-inch 1.0 1.0 $12,656 $12,656 $13,036

1.25-inch 1.5 1.5 $12,656 $18,984 $19,554

1.5-inch 2.0 2.0 $12,656 $25,312 $26,071
2-inch 3.2 3.2 $12,656 $40,499 $41,714
3-inch 7.0 7.0 $12,656 $88,592 $91,250
4-inch 12.6 12.6 $12,656 $159,466 $164,250
6-inch 26.0 26.0 $12,656 $329,058 $338,929
8-inch 56.0 56.0 $12,656 $708,739 $730,002
10-inch 84.0 84.0 $12,656 $1,063,109 $1,095,002
Sources: DOU, EPS Water_9
Fee Per
Equivalent
Meter
Flow
Factor
Equivalent
Meters
Fee Per Meter
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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 $13,036 $83,429 $83,429
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] 4% -44% -45%
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 $13,036 $7,661 $5,472 $91,250 $83,429 $83,429 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] 4% -44% -45% 4% -44% -45%
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. [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 methodology is also used in the Executive Summary tables.

Site Area Per Acre
per 1,000 sq. ft. [1]
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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. The Buy-In portion of the fee will be used for capital expenses related to the use by new growth of existing assets included in the calculation of current value in Table 2-3. The incremental portion of the fee will be used for capacity enhancements and in the proportion of cost for the enhancement benefitting new development.

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 existing and future 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, existing 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 September 20, 2023
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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.

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

Table 3-4. Improvement Cost per ESD

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

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 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.

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 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. The allocation of planning costs to existing and new growth and the cost per ESD is shown on Table 4-4. Planning costs of $511,000 are shared by existing and new 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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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.

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

Table 4-3. New and Existing ESDs

Table 4-4. Cost per ESD with Planning Costs

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 September 20, 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 September 20, 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

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 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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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.

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 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 September 20, 2023
Economic & Planning Systems, Inc. (EPS) 68
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. 4 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

4 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 with revenue from the fee and benefitting existing customers with rate-based or other funding.
 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]
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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 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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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.

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

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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

$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Fee per Dwelling Unit
Chart 1-5a
Single Family Development Impact Fees
per Dwelling Unit
Water Combined Sewer System Drainage Local Sewer Regional Sewer

Chart to Table 1-5b

$0
$5,000
$10,000
$15,000
$20,000
$25,000 Fee per 1,000 Building Square Feet
Chart 1-5b
Retail Development Impact Fees
per 1,000 Building Square Feet
Water Combined Sewer System Drainage Local Sewer Regional Sewer

Chart to Table 1-5c

$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
Fee per 1,000 Building Square Feet
Chart 1-5c
Office Development Impact Fees
per 1,000 Building Square Feet
Water Combined Sewer System Drainage Local Sewer Regional Sewer

Chart to Table 1-6a

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000 Fee per Dwelling Unit
Chart 1-6a
Single Family Development Impact Fees
per Acre
Water Combined Sewer System Drainage Local Sewer Regional Sewer

Chart to Table 1-6b

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Fee per 1,000 Building Square Feet
Chart 1-6b
Retail Development Impact Fees
per Acre
Water Combined Sewer System Drainage Local Sewer Regional Sewer

Chart to Table 1-6c

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Fee per 1,000 Building Square Feet
Chart 1-6c
Office Development Impact Fees
per Acre
Water Combined Sewer System Drainage Local Sewer Regional Sewer

APPENDIX B:

Water System Utility

Appendix B-1: Existing Equivalent Meters
Appendix B-2: Water System Asset Analyses
Appendix B-3: CIP
Appendix B-4: Companion Charts to Tables 2-10 and 2-11

Appendix B-1
Existing Equivalent Meters

Size
Current
Count Type
Flow
Factor
Equivalent
Meters
formulaa b c = a * b
5/8-inch 174 Displacement 1.0 174
3/4-inch 178 Displacement 1.0 178
1-inch 131,511 Displacement 1.0 131,511

1.25-inch 0 Displacement 1.5 0

1.5-inch 3,910 Displacement 2.0 7,820
2-inch 4,357 Displacement 3.2 13,942
3-inch 802 Turbine Class I 7.0 5,614
4-inch 698 Turbine Class I 12.6 8,795
6-inch 208 Turbine Class I 26.0 5,408
8-inch 112 Turbine Class II 56.0 6,272
10-inch 18 Turbine Class II 84.0 1,512
12-inch 0 Turbine Class II 106.0 0
Totals 141,968 -- 181,226
Source: DOU, EPS Appendix_B.1

Appendix B-2
Water System Asset Analyses

Treatment Plants

Reservoirs

Wells

Transmission Mains

Appendix B-3
CIP
Summary

Descriptions

Appendix B-4
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-4.1
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-4.2
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-4.3
Water Development Impact Fees
Office - 2, 2" Meters

Table 2-11: Charts by Land Use and Area

$0
$5,000
$10,000
$15,000
$20,000
$25,000 Fee per Dwelling Unit
Chart B-4.4
Water Development Impact Fees
per Dwelling Unit
Single Family

$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000 Fee per 1,000 Building Square Feet
Chart B-4.5
Water Development Impact Fees
per 1,000 Building Square Feet
Retail

$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000 Fee per 1,000 Building Square Feet
Chart B-4.6
Water Development Impact Fees
per 1,000 Building Square Feet
Office

Charts per Acre

$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000 Fee per Dwelling Unit
Chart B-4.7
Water Development Impact Fees per Acre
Single Family

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000 Fee per 1,000 Building Square Feet
Chart B-4.8
Water Development Impact Fees per Acre
Retail

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000 Fee per 1,000 Building Square Feet
Chart B-4.9
Water Development Impact Fees per Acre
Office

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

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.

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). 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.

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.