City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 0
City of San Leandro
2024 Stormwater Fee Study
March 4, 2024
City Council Meeting
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 1
AGENDA
Background
Storm Drain Master Plan
Financial Needs
Proposed Rates – Two Scenarios
Proposition 218 Process
Timeline
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 2
BACKGROUND
The City is proposing an amendment to the
current Stormwater Fee because additional
dedicated funding is needed to:
Remove trash and pollutants from rain runoff using
sustainable methods;
Repair and maintain critical pipes and pump
stations; and,
Invest in the highest-priority storm drainage
infrastructure projects for the City’s aging
infrastructure
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 3
BACKGROUND
Current Storm Water Fee established in 1993 to meet Clean Water Act requirements and manage Storm Water System
Current Fee generates approximately $1.07 million annually; Fee has not been increased since 1993 Costs for pollution control, O&M, monitoring and reporting, and capital needs continue to increase Costs have exceeded revenues in recent years
April 2023, Council directed staff to proceed with Proposition 218 revenue measure May 2023, Council approved a consulting agreement with HF&H for implementation of the Prop 218 noticing and voting process
September 2023, Council approved funding for consulting work to develop a Storm Drain Master Plan (SDMP)
February 2024, preliminary results of the SDMP, cost-of-service study, proposed funding level, and resulting fees presented to Facilities & Transportation Committee City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 4
STORM DRAIN MASTER PLAN (SDMP)
February 2024, Schaaf &
Wheeler presented the results of
the SDMP study, which,
mapped the City’s storm drain system;
evaluated flood risks, considers climate
adaptability; and,
recommended actions and prioritized
capital projects needed to maintain the
system and meet Water Board
regulations.
The SDMP identified the financial
needs of the system and is the basis
for establishing the amended
Stormwater Fee
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 5
FINANCIAL NEEDS
Annual Operating and Maintenance Costs
Trash Capture Devices Mainteance $200,000
Compliance $540,000
Street Cleaning $780,000
Pipe Cleaning $100,000
Green Infrastructure $100,000
General Fund Repayment $107,000
Other Operations & Maintenance $140,000
Subtotal - Operations & Maintenance $1,967,000
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 6
VERY HIGH AND HIGH PRIORITY PROJECTS
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 7
MEDIUM AND LOW PRIORITY PROJECTS
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 8
STORMWATER FEE AMENDMENT METHODOLOGY
Establish Annual Revenue Need
Calculate Single Family Equivalent (SFE)
Average impervious surface area, by parcel size
Calculate Non-Single Family land use equivalents (SFE per acre) Apartments
Commercial
Municipal
Schools
Parks
Golf Courses
Vacant Parcels - Developed
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 9
FINANCIAL NEEDS
Fund All
Projects
Fund High and
Very High
Projects Only
Operations & Maintenance
Trash Capture Devices Mainteance $200,000 $0 $200,000 $200,000 $200,000 Compliance $540,000 $0 $540,000 $540,000 $540,000
Street Cleaning $780,000 $0 $780,000 $780,000 $780,000
Pipe Cleaning $100,000 $0 $100,000 $100,000 $100,000
Green Infrastructure $100,000 $0 $100,000 $100,000 $100,000 General Fund Repayment $107,000 $0 $107,000 $107,000 $107,000 Other Operations & Maintenance $140,000 $0 $140,000 $140,000 $140,000 O&M Subtotal $1,967,000 $0 $1,967,000 $1,967,000 $1,967,000 Capital Improvement Projects
Very High Priority Projects $8,240,000 ($3,749,000) 1 $4,491,000 $424,447 2 $424,447 High Priority Projects $24,010,000 $24,010,000 $800,333 3 $800,333 Medium Priority Projects $24,590,000 $24,590,000 $819,667 3 Low Priority Projects $22,750,000 $22,750,000 $758,333 3 Capital Subtotal $79,590,000 ($3,749,000) $75,841,000 $2,802,780 $1,224,780 Total Annual Revenue Requirement $4,769,780 $3,191,780
Cost Description
Estimated
Current Cost
Less: Costs
Funded by Other
Sources Net Cost
Net Annual Cost 1 Estimated contribution
from CalTrans ($2,749,000)
and State grant ($1,000,000)
for the installation of
trash capture devices
2 Reflects bond-financing
Very High Priority Projects
(15-year term, 4.5% interest
rate)
3 Reflects PAYGo funding
amortized over 30 years
Annual Revenue Need
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 10
SINGLE FAMILY EQUIVALENT (SFE)
Sampled 3% of all Single-Family Parcels
Average Impervious Surface Area of Medium Size Parcels = 3,067 sq. ft. Rates are derived for each non-Single Family land use type based on how they compare to the SFE
Single-Family
Residential (SFR)
Parcel Sizes
Parcel Size Range
(square footage)
# of
Parcels
% of SFR
Parcels
Average
Impervious
Surface Area
SFE per
Parcel
Small < 3,200 1,193 6% 1,602 0.52
Medium 3,200 to 7,200 16,111 79% 3,067 1.00
Large > 7,200 3,094 15% 4,617 1.51
20,398 100% 9,287
𝑆𝑆𝑆𝑆𝑆𝑆 𝑃𝑃𝑃𝑃𝑃𝑃 𝐴𝐴𝐴𝐴 =
(43,560 square feet per acres) 𝑥𝑥 𝐴𝐴𝐴𝐴 𝐴𝐴𝐴𝐴 % 𝑜𝑜𝑜𝑜 𝐼𝐼𝐼𝐼𝐼𝐼 𝐼𝐼 𝐼𝐼𝐼𝐼 𝐴𝐴 𝐴𝐴 3,067 square feet of Impervious Areas per SFE
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 11
NON-SINGLE FAMILY CALCULATION – SFE PER ACRE
𝑆𝑆𝑆𝑆𝑆𝑆 𝑃𝑃𝑃𝑃𝑃𝑃 𝐴𝐴𝐴𝐴 =
(43,560 square feet per acres) 𝑥𝑥 𝐴𝐴𝐴𝐴 𝐴𝐴𝐴𝐴 % 𝑜𝑜𝑜𝑜 𝐼𝐼𝐼𝐼𝐼𝐼 𝐼𝐼 𝐼𝐼𝐼𝐼 𝐴𝐴 𝐴𝐴 3,067 square feet of Impervious Areas per SFE
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 12
ANNUAL STORMWATER FEE CALCULATION
Fund ALL Projects Fund High and Very High Projects
Land Use
Category
SFE
Rate
Medium
SFE Rate
Proposed Fee
FY 2024-25
Current
Fee
Additional
Monthly Cost
a b c = a * b d e = (c - d)/12
Single-Family Residential $ per parcel $ per parcel
Small < 3,200 sq. ft. 0.52 $49.92 $26.07 $26.33 ($0.02) Medium 3,200 to 7,200 sq. ft. 1.00 $49.92 $49.92 $26.33 $1.97 Large > 7,200 sq. ft. 1.51 $49.92 $75.15 $26.33 $4.07
Non-Single-Family Residential $ per Acre $ per Acre
Apartments/Condos 10.13 $49.92 $505.70 $157.98
Commercial 12.44 $49.92 $621.02 $210.64
Municipal 12.44 $49.92 $621.02 N/A
Schools 7.87 $49.92 $392.88 N/A
Parks 2.36 $49.92 $117.81 N/A
Golf Courses 0.25 $49.92 $12.48 N/A
Vacant - Developed Parcels 0.25 $49.92 $12.48 N/A
Undeveloped Parcels/Open Space No Charge
Land Use
Category SFEs
Medium
SFE Rate
Proposed Fee
FY 2024-25
Current
Fee
Additional
Monthly Cost
a b c = a * b d e = (c - d)/12
Single-Family Residential $ per parcel $ per parcel
Small < 3,200 sq. ft. 0.52 $74.61 $38.96 $26.33 $1.05
Medium 3,200 to 7,200 sq. ft. 1.00 $74.61 $74.61 $26.33 $4.02 Large > 7,200 sq. ft. 1.51 $74.61 $112.31 $26.33 $7.17
Non-Single-Family Residential $ per Acre $ per Acre
Apartments/Condos 10.13 $74.61 $755.79 $157.98
Commercial/Municipal 12.44 $74.61 $928.13 $210.64
Schools 7.87 $74.61 $587.17 N/A
Parks 2.36 $74.61 $176.08 N/A
Golf Courses 0.25 $74.61 $18.65 N/A
Vacant - Developed Parcels 0.25 $74.61 $18.65 N/A
Undeveloped Parcels/Open Space No Charge N/A
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 13
PROPOSED ANNUAL STORMWATER FEES
Land Use
Category
Current
Fee
Proposed Fee – Option 1
(Fund All Projects)
Proposed Fee – Option 2
(Fund High/Very High Projects)
Single Family – Small (<3200 sf) $26.33 per parcel $38.96 per parcel $26.07 per parcel Single Family – Small (3200-7200 sf) $26.33 per parcel $74.61 per parcel $49.92 per parcel Single Family – Small (>7200 sf) $26.33 per parcel $112.31 per parcel $75.15 per parcel Multi Family $157.98 per acre $755.79 per acre $505.70 per acre Commercial/Industrial $210.64 per acre $928.13 per acre $621.02 per acre Municipal N/A $928.13 per acre $621.02 per acre
Schools N/A $587.17 per acre $392.88 per acre
Parks N/A $176.08 per acre $117.81 per acre
Golf Courses/Vacant Developed N/A $18.65 per acre $12.48 per acre Undeveloped/Open Space N/A N/A N/A
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 14
PROP 218
PROCESS
Public Notice mailed to all property owners, followed by a Public Hearing 45 days later. Assuming no majority protest, Ballot mailed to property owners, including basis for fee and amount of fee, followed by a Public Hearing 45 days later Step 1
Step 2
If a simple majority (50% +1) vote “yes”, the fee can be adopted by the City Council.
The Prop 218 property-related fee process requires two distinct steps:
City of San Leandro | City Council Meeting 2024 Stormwater Fee Amendment Study | March 4, 2024 HF&H Consultants, LLC 15
NEXT STEPS
April 2 – Council to consider issuance of Proposition 218 notice with proposed Stormwater Fee
Staff Recommends Option 2 – Fund High and Very High capital projects only Notice mailed no later than April 5
May 20 – Council hold Public Hearing; If no majority protest (50%+1), Council considers whether to proceed with the balloting for the proposed amended fee Ballots mailed no later than May 24
July 8 – Ballots due to City Clerk by 5pm
July 15 – Council certifies ballots results and considers adoption of fee if majority of votes received are “yes”
Updated Stormwater Fee implemented in FY 2024-25 Tax Assessments