Intent to Initiate Prop 218 Process for Stormwater Fee;Adoption of Balloting Procedures and Approval of Stormwater Fee Report April 2, 2024
City Council Meeting
OVERVIEW
Background
Storm Drain Master Plan
Financial Needs
Proposed Rates
Proposition 218 Process
Next Steps
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
Background
Existing 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
In 2023, Council directed staff to proceed with Proposition 218 revenue measure; approved consulting agreement with HF&H for implementation of the Prop 218 noticing and voting process and funding for consulting work to develop a Storm Drain Master Plan (SDMP) February 2024, draft SDMP and preliminary results of the cost-of-service study, proposed funding level, and resulting fees presented to Facilities & Transportation Committee March 2024, draft Stormwater Fee Study presented to Council; Council provided feedback and direction
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
Financial Needs
Financial Needs
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
March 4 – Council provided direction to proceed with funding High and Very High projects
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
Annual StormwateR Fee Calculation to fund annual operations and high and very high priority capital improvement projects City of San Leandro | City Council Meeting Initiate Proposition 218 Process | April 2, 2024 HF&H Consultants, LLC 8
Prop 218 Process
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:
PROP 218 PROCESS
NEXT STEPS
April 2: Council to consider adoption of resolutions declaring intent to initiate proceeding to obtain approval of Stormwater Fee amendment, adopting balloting procedures and approving the Stormwater Fee Report April 5: Notice of Public Hearing mailed to all property owners subject to the Amended Stormwater Fee May 20: Council holds Public Hearing, if no majority protest (50%+1), Council considers finding that protest does not exist, directing ballot proceedings, (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” Amended Stormwater Fee implemented in FY 2024-25 Tax Assessments If majority of votes received are “no” Current Stormwater Fee implemented in FY 2024-25 Tax Assessments
RECOMMENDATION
Staff recommends Council adopt:
Resolution Declaring its Intention to Initiate a Proceeding to Obtain Approval of an Amendment of the City’s Stormwater Fee, a Property-Related Fee Resolution Adopting Ballot Procedures for the City’s Proposed Stormwater Fee Amendment and Approving Stormwater Fee Report