CITY OF SAN MATEO
City Council Special Meeting
June 5, 2023
5:30 PM
City Hall Council Chamber
Entrance is on O’Farrell Street
COUNCIL MEMBERS
Amourence Lee, Mayor
Lisa Diaz Nash, Deputy Mayor
Rich Hedges
Adam Loraine
Rob Newsom Jr.
AGENDA
THIS MEETING CAN BE ATTENDED IN PERSON OR REMOTE BY JOINING ZOOM – SEE CODES BELOW.
PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND REMOTEL Y.
SEE END OF AGENDA FOR OPTIONS AND INSTRUCTIONS ON HOW TO PARTICIPATE IN THE MEETING.
To join via Zoom – click here:
June 5, 2023
To join via telephone: (408) 638-0968
Webinar ID: 871 9636 7701 Passcode: 249181
CALL TO ORDER
Roll Call
STUDY SESSION
The public will have an opportunity to comment during the consideration of these items.
1. Stormwater Funding – Survey Findings
Receive an update on the stormwater funding survey findings and staff recommendations for implementation of a stormwater fee; and provide direction and related input.
CEQA: This information is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b) (5).)
ADJOURNMENT
----------------------------------------------------------------------------------------------------------------------------- AGENDAS:
Agendas and material are posted on the City’s website on the Friday preceding each Council Meeting and can be viewed on the City's website at
www.cityofsanmateo.org
. Any supplemental material distributed to the Council after the posting of the agenda will be made part of the official record.
WATCHING A MEETING ON TV:
City Council meetings are broadcast live on Comcast/channel 27, Wave/channel 26, or AT&T/channel 99.
For transmission problems during the broadcast, please call (650) 522-7099. For all other broadcast comments, call (650) 522-7040, Monday-Friday, 8 a.m. - 5 p.m.
WATCHING A MEETING ON A COMPUTER:
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http://youtube.com/CityofSanMateo
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https://www.cityofsanmateo.org/193/Channel-San-Mateo-Live-Stream
PUBLIC COMMENTS/REQUEST TO SPEAK
Prior to the Meeting
Send comments to:
[email protected]
until 4 p.m. the day of the meeting.
During the meeting
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By Zoom:
Click the link at the top of the agenda and you’ll be added to the meeting. All attendees are muted by default. When the item of interest is open for consideration, select the “Raise Your Hand” icon and you will be called on at the appropriate time.
By telephone:
Call (408) 638-0968 and enter the conference ID found at the top of the meeting agenda. When the item of interest is open for consideration, select *9 to raise your hand. When called upon, press *6 to unmute, state your name and provide your comments.
In Person:
At the meeting complete a “Request to Speak” form, submit a request at the speaker kiosk or scan the QR code.
ACCESSIBILITY:
In compliance with the Americans with Disabilities Act, those with disabilities requiring special accommodations to participate in this meeting may contact the City Clerk’s Office at (650) 522-7040 or [email protected]
. Notification 48 hours prior to the meeting will
enable the City to make reasonable arrangements to ensure accessibility to this meeting.
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 1 Section Name: STUDY SESSION Account Number: 10-4679 File ID: 23-7535 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 05, 2023
SUBJECT:
Stormwater Funding – Survey Findings
RECOMMENDATION:
Receive an update on the stormwater funding survey findings and staff recommendations for implementation of a stormwater fee; and provide direction and related input.
BACKGROUND:
Project History:
The City operates and maintains a stormwater system to protect neighborhoods from flooding and prevent pollution of local waterways. The City’s stormwater infrastructure includes surface drains, underground pipes, pump stations, creeks and channels, and the Marina Lagoon (lagoon), which captures approximately three-fourths of the City’s drainage before it enters San Francisco Bay. The system requires long-overdue improvements to address flood control limitations and aging infrastructure. Unlike the City’s sanitary sewer system, stormwater infrastructure does not have a dedicated funding source.
Budgets for maintenance, operation, and capital improvements rely primarily on the General Fund. However, the infrastructure needs are significant and there is not enough funding for system upgrades and to address flood control limitations.
In 2019, the Public Works Department began working with SCI Consulting Group (SCI) on a financial analysis of the City’s stormwater activities to understand the funding needs and options for revenue generation. Staff presented an overview of stormwater activities to the Sustainability and Infrastructure Commission (Commission) in December 2020 and continued to work with SCI on the funding analysis. At the February 2021 SIC meeting, staff presented a draft Stormwater Funding Analysis Report. Along with feedback from the Commission, the Stormwater Funding Analysis Report was presented to Council during the May 17, 2021 study session. Council directed staff to proceed to the next steps towards implementing a potential stormwater fee.
SCI’s scope of work included tasks for a public opinion survey, development of a fee report, public outreach, and potential mail balloting process pursuant to Proposition 218. The survey and initial community outreach were completed in December 2021. Staff presented the survey results to the Commission on March 9, 2022 and to Council on May 21, 2022. Due to the City’s work on Measure CC in 2022, the effort on the stormwater fee ballot initiative was scheduled for 2023.
At the March 20, 2023 study session, Council recommended moving forward with a robust outreach strategy, fee report, and a follow-up tracker survey beginning in April 2023 to retest the public’s willingness to support a citywide stormwater fee, including retesting the higher rate of $18.87 per month that would fund all needs identified in the Stormwater Funding Analysis. This report presents a review of stormwater activities, the stormwater funding analysis, a summary of the December 2021 survey results, the April 2023 stormwater survey results, the fee study, and next steps regarding outreach and a potential stormwater fee mailed ballot proceeding.
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CITY OF SAN MATEO
Overview of Storm System Activities
Public Works is responsible for stormwater master planning, regulatory compliance, maintenance and operation, and the implementation of capital improvements. Routine operation and maintenance activities by crews for stormwater management include cleaning and repairs of curbs, inlets, catch basins, pipes, outfalls, and the operation and maintenance of ten stormwater pump stations. Portions of San Mateo Creek, Leslie Creek, Borel Creek, Laurel Creek, and several channels that carry rain runoff from the City’s neighborhoods to the Marina Lagoon and San Francisco Bay are also maintained. As part of the stormwater compliance program, inspection teams work with local businesses to help them implement best management practices for pollution prevention.
The City’s Marina Lagoon and pump station are also important assets for stormwater and flood management. A remnant of a tidal slough that was diked and dredged, the lagoon is part of the City’s flood control system, while offering a recreation area, wildlife, and ecological resource. The lagoon receives stormwater runoff from a majority of the City, and pollutants are carried directly to it through streets and storm drains. Managing the lagoon as a flood control basin as its primary purpose includes maintaining operating levels, water exchange rates, the dam and pump station, and other infrastructure. Management also includes removal of nuisance aquatic plant control, water quality protection, wildlife management, permit compliance, and regulation of encroachments such as private docks, beaches, banks, and dredging.
Sedimentation of the lagoon over time has decreased the water depth, increased temperatures, and decreased the area amenable to safe boating. The lagoon changes also result in increased nuisance vegetation growth and negative impacts to water quality and aesthetics. A dredging feasibility study conducted in 2018 estimates that up to 270,000 cubic yards of sediment could be removed to restore the lagoon to its original capacity. Disposal options for dredged sediment could be limited or very costly due to potential pollutants found within the sediment. The costs for dredging the lagoon range from $8 million to $80 million depending on the extent of dredging and the disposal requirements. At this time, the sedimentation has not impacted the storage needed for flood control.
Stormwater Funding Analysis
The overall funding needs to effectively manage the City’s stormwater system are greater than what is currently available from the General Fund, which is approximately $3.6 million annually for operations, maintenance, and pollution prevention. The financial analysis identified the need for $9 million annually (escalated for 2023-24):
•$3.9 million for operation, maintenance, and regulatory compliance; •$2.0 million for Marina Lagoon dredging (annualized life-cycle costs derived from estimated dredging costs of as much as $80 million); and
•$3.1 million for other capital projects ($68 million amortized over 30 years).
The Stormwater Funding Analysis Report identifies various funding sources for a stormwater utility, with the most common being a user fee like water, sewer, and garbage services. The report concludes that a user fee of approximately $18.87 per month for the average residential property would be required to fund the full annual cost of $9 million.
December 2021 Stormwater Funding Survey Results
In August 2021, Council authorized staff and SCI to mail a survey to all parcel owners to learn the priorities of the community, which projects or programs are most important, and gauge their willingness to invest in the stormwater program through either a stormwater property related fee or a citywide benefit assessment. The survey results showed neutral support for the stormwater fee. The stormwater fee had 49.9% support at the $10 per month level, raising $5 million annually, and 46.8% support at the $16 per month level, raising $8 million. Respondents were more likely to support a citywide stormwater fee that 1) protects the City from local street and property flooding by properly maintaining and operating its aging storm drainage infrastructure, 2) removes trash and pollution from San Francisco Bay and local waterways, and 3) has dedicated funds for stormwater and could not be taken away by the State, County, or even the Council. Conversely, respondents were less likely to support a citywide stormwater fee that would specifically fund Marina Lagoon issues such as 1) dredging and other stormwater improvements, 2) preventing unwanted vegetation and other pollutants, and 3) a recreational amenity and flood control facility.
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CITY OF SAN MATEO
The survey results showed support at slightly less than 50% at the $10 per month ($120 per year) rate for a stormwater fee. The consultant typically recommends moving forward on proposed mailed ballot proceeding only when the support level minus the margin of error is at least 50%, which was not met. However, it was thought that a lesser rate of under $100 per year, or approximately $8 per month, could have enough support to pass. The projects and issues that resonated with the community were well-rounded (infrastructure, environmental, and fiscal prudence) and form a solid basis for an outreach and education program. A robust outreach program would be needed to move the needle towards a majority approval. As discussed earlier, due to the work on the City’s Measure CC in 2022, the ballot initiative for the stormwater fee was scheduled to resume in 2023.
April 2023 Stormwater Funding Survey Results
In March 2023, Council authorized staff to mail a follow-up survey and to test two fees. The fee was updated from $16 to $18.87 a month to reflect inflationary costs. A lower $8 fee providing $4 million in funding was also tested separately. The surveys were accompanied by supplemental information and included questions about projects and issues that might affect how a voter would view a potential mailed ballot proceeding. Respondents were asked whether a project or issue would cause them to change their support of such a ballot. The ballots were mailed on March 31, 2023 with a due back date of April 21, 2023.
A total of 5,013 surveys were mailed, and 1,126 were returned in time to be included in the results. The return rate of
22.4% is considered above average for mailed surveys and is 7% higher than the total in responses received in November 2021. The findings show marginal support for a stormwater fee with 53.0% support at the $8 per month level, and 45.7% support for a fee at the $18.87 per month level. The potential stormwater fee requires a simple 50% majority for approval.
The margin of error on these results is 2.86%.
Respondents were more likely to support a citywide stormwater fee that 1) protects the City from local street and property flooding by rehabilitating and maintaining its aging stormwater infrastructure, 2) removes trash and pollution from San Francisco Bay and local creeks, 3) funds high-priority capital projects designed to protect against local flooding from extreme weather and improve water quality, and 4) strengthens infrastructure in response to extreme weather events, sea level rise, and more frequent and intense storms.
Conversely, respondents were less likely to support a stormwater fee that would specifically fund Marina Lagoon issues such as 1) dredging and other stormwater improvements, and 2) protecting Marina Lagoon by addressing drainage and water quality challenges in ways that are environmentally sustainable, including green infrastructure.
Overall results of this survey are congruent with the previous stormwater fee survey results of November 2021. Support levels for the four different rates tested over these surveys consistently show that price sensitivity is the key factor for property owners. SCI typically recommends moving forward on an initiative when the support level minus the margin of error is at least 50%. The support for a stormwater fee of $8 per month meets this threshold, however the support is marginal.
Recommended Next Steps
1. Obtain Council agreement on an $8 per month stormwater fee.
2. Continue to finalize the fee report, which is necessary to meet Proposition 218 requirements and must be based on the final stormwater fee rate recommended by Council and proposed in the mailed ballot proceeding. The fee report provides justification as to which specific services and projects the proposed stormwater fee will cover.
3. Continue the stormwater fee public outreach effort.
4. Return to Council in mid-July with the final fee report and for authorization to commence the mailed notice, protest, and hearing process under Proposition 218.
5. Return to City Council in mid-September for a public hearing, and if a majority protest is not received, potential authorization to initiate a mail balloting process pursuant to Proposition 218.
6. Mail the ballots in October/November 2023.
7. Return to City Council in January 2024 with results.
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CITY OF SAN MATEO
If this schedule is followed and the mailed ballot proceeding is successful, the final fee approval would be in January 2024 with fees levied on tax bills in fall 2024.
BUDGET IMPACT:
There is no budget impact due to the presentation of this informational item.
ENVIRONMENTAL DETERMINATION:
This information is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
None
STAFF CONTACT
Evan Albert, Deputy Director of Public Works
[email protected]
650-522-7308
Azalea Mitch, Director of Public Works
[email protected]
650-522-7303
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STORMWATER FUNDING
City of San Mateo
June 5, 2023
Azalea Mitch – Director of Public Works
Jerry Bradshaw and Chris Coulter – SCI Consulting Group
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Agenda
• Stormwater System Overview
• Funding Analysis
• Survey Results
• Council Feedback and Next Steps
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Stormwater System
• 130 miles of storm drains
• 20 miles of open creeks and
drainage channels
• T en pump stations
• Three-mile Bayfront levee
• Trash racks and capture devices
• Green Infrastructure
• One flood control lagoon
• Drains 2/3 of the City
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Infrastructure
Challenges
• Capacity constraints
• Aging infrastructure
• Sedimentation of the Marina Lagoon
• Staffing
• Severe storms highlighted need for
dedicated funds
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Earlier this Year
5 • 2 hours – 125 year event
• 3 hours – 115 year event
• 12 hours – 300 year event
• Completed several technical analyses
• Community meetings:
• Marina Lagoon
• All other watersheds
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Outreach Strategy Underway
Community Flood and Storm
Protection Initiative
6 Website Social Channels Printed Mailers
ENewsletter
Community Meetings
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• Overview provided to SIC December 2020Needs Analysis – existing and future programs
• Overview provided to SIC February 2021Storm System Funding Analysis
• Funding Analysis provided to City Council May 2021Study Session with Council • Completed November 2021
• SIC March 9, 2022
• City Council Study Session March 21, 2022
Stormwater Survey (2021)
• In March 2023, Council directed staff to complete
an additional survey with the higher end fee
• Completed April 2023
Stormwater Survey
(2023)
• Outreach, fee study , and approval processImplementation Steps Storm Systems Evaluation Process
Storm
Systems
Funding
Mechanism
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Funding Analysis
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Stormwater Funding Initiative
• Evaluation of projected financial needs
• Approach: Create a proposed utility
• $86 million in Capital Improvement
• $3.9 million in O&M annually
• $2 million for annual lagoon costs
• Life Cycle / 30 year approach = $9 million annually
• Evaluation of potential funding sources
• Preliminary rate structure
• Community polling
• Public outreach (throughout process)
• Stormwater Fee Implementation
• Rate Study
• Prop 218 implementation
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Revenue Requirement and User Fee
Estimates
Operations
$3.9 M
Capital Program
$3.1 M
Lagoon Dredging
$2 M
Annual Requirement
= $9 M
Equates to ~$ 226/ year
~$18.87 / month
(average home)
$98 $50 $78
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2023 Community Survey (tracker)
How
Mailed on March 31, 2023 – Completed April 25 2023
Separately tested Stormwater fee between $96 -$226/year ($8 -18.87/month) Why
Test messaging & current willingness to invest (16 months since previous survey) Revisit community priorities – Verify alignment with City’s Projects and issues polled to gauge support
What
5,000 surveys
Stormwater – Clean Creeks and Flood Protection
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Stormwater Survey Findings
• City-wide Stormwater Fee (Annual)
• $96– 53.0% support
• $226– 45.7% support
• Margin of error = 2.86%
• Slightly higher if taken separately
• (NOTE: Survey used monthly rates of $8 and $18.87)
12 53.0% 45.7%
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Projects & Issues
13 50%
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Combined Survey Findings
14 20212023 2021 2023
High RateLow Rate
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Findings
• Results show support for a stormwater fee of $8/month ($96/year) • Less than half of what is needed for full funding ($18.87/month) • Projects and Issues:
• Top tier: flood protection, environmental (trash/pollution),impact of climate change
• Bottom tier: Marina Lagoon work has little support – dredging and green infrastructure
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Financial Realities
• Full funding needs amount to $9M/year
• Proposed fee would provide $4M/year
• Strategy for consideration:
• Maintain existing $3.2M/year in funding for O&M.
• Use $4M/year of potential future revenue for additional O&M costs, Marina Lagoon dredging set aside, and stormwater CIP projects. 16 22 of 30
Financial Reach
17 Marina Lagoon dredging
costs:
1) Will depend on amount,
contaminants, and
disposal
2) Could range from $1M
to $2M per year
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Council Feedback and Direction
• Proceed with $8/month stormwater fee
• Fee structure / funding strategy
• Timeline
18 Tracker
Survey
April 2023
(COMPLETE)
Fee Study
Fee
Report /
Prop 218
Notice
July 2023
Hearing
October 2023
BallotingNotice
End
Balloting
November
2023
Council
Update
June 2023
Now 20242023
Funding
Begins
Fall
2024Results
January
2024
Community Outreach
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Backup Slides
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1960s: Elevation 91 ft. CSM Datum
1988: Elevation 98 ft. CSM Datum / 3.1 ft. NAVD
1988: Elevation 95 ft. CSM Datum / 0.1 ft. NAVD
2002/2012: Elevation 97.5 ft. CSM Datum / 2.6 ft. NAVD / 3 ft. NAVD 100 Yr. Base Flood 2014: Elevation 97.3 ft. CSM Datum / 2.4 ft. NAVD / 2 ft. NAVD 100 Yr. Base Flood 1988: 4 pumps, 1
standby
532 acre-ft
2002: 5 pumps
2014: > 331 acre-ft
HISTORICAL CHANGES
Pump Operation, Volume
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Stormwater Projects & Issues
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Would Fund Lagoon
Ensure Recreation at Lagoon
Pays for Lagoon Dredging, etc
Dedicated,Sustainable Funds
Protect Marina Lagoon Environment
First Step Against Climate Change & SLR
High-Priority Capital Projects
Funds Dedicated - Cannot Be Taken
Remove Trash & Pollution
Local Flooding / Aging Infrastructure
% Support
Detailed Support by Projects and Issues for All Respondents Much More Likely Somewhat More Likely No Impact Somewhat Less Likely Much Less Likely 28 28 of 30
Stormwater System
• 130 miles of storm drains
• 20 miles of open creeks and
drainage channels
• Ten pump stations
• Three-mile Bayfront levee
• Trash racks and capture devices
• Green Infrastructure
• One flood control lagoon
• Drains 2/3 of the City
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Stormwater Funding Needs
Marina Lagoon
Management
Capital Improvement /
Operations and
Maintenance
Comprehensive Storm
System Funding
Evaluation
• Flood control
• Algae management
• Sedimentation
• City-wide flood control capacity needs
• Storm system operation /
maintenance
• Dedicated stormwater
funding source
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