CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 16 Section Name: {{section.name}} Account Number: 10-4679 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: January 16, 2024
SUBJECT:
Community Flood and Storm Protection Fee – Ballot Results RECOMMENDATION:
Adopt a Resolution certifying the tabulation results for the Community Flood and Storm Protection Fee, ordering levy of the fee for Fiscal Year 2024-25; and designate the City Manager to administer fee collection.
BACKGROUND:
The City of San Mateo operates and maintains a stormwater system, which provides vital services to safeguard neighborhoods from flooding and protects local waterways from pollution. The system consists of complex infrastructure including surface drains, underground pipes and conduits, pump stations, creeks and channels, and the Marina Lagoon.
The City’s stormwater system requires improvements to address flood control capacity limitations and deficiencies related to aging infrastructure, enhanced operations and maintenance, and improvements to minimize pollutants in stormwater runoff as required by state and federal mandates.
In 2019, Public Works staff retained a public financing consultant firm, SCI Consulting Group (SCI), to conduct a financial analysis of the City’s stormwater activities to understand funding needs and options for revenue generation. The Stormwater Funding Analysis Report, with feedback from the Sustainability and Infrastructure Commission (SIC), was presented to City Council on May 17, 2021. Council directed staff to proceed with the next steps towards implementing a potential stormwater fee.
On June 5, 2023, staff presented public opinion survey results to Council. After hearing the survey results, Council directed staff to work with SCI to complete a Stormwater Fee Report. The purpose of the Stormwater Fee Report was to calculate stormwater capital program, operation and maintenance, and regulatory compliance costs and the appropriate fee structure for different parcel classes to balance costs and revenue.
Council approved and adopted the final Stormwater Fee Report on July 17, 2023, which recommended a fee structure based on a $96 annual fee for an average single-family home. Council directed staff to initiate a Proposition 218 proceeding to establish a new property-related fee in accordance with the Stormwater Fee Report. During a public hearing on October 16, 2023, it was determined that a majority of property owners subject to the proposed fee had not submitted a written protest to its imposition, resulting in Council direction to staff to proceed with the required mail balloting process. Ballots for the stormwater fee were mailed to approximately 26,726 property owners on November 1, 2023, with a deadline for submittal of 5:00 PM on December 17, 2023. Since some property owners own multiple properties, the total number of parcels subject to the proposed fee and for which votes could be submitted is 28,994.
Ballots could either be mailed directly to the independent Certified Public Accountant contracted to tally the ballots or returned in person to the City Clerk’s Office. A total of 10,032 votes were submitted, with votes categorized as in favor of
CITY OF SAN MATEO
the fee (“Yes”), opposed to the fee (“No”), or invalid, which could result from a ballot not being signed, no clear indicated vote, or two designated votes (i.e., both “Yes” and “No” votes). Results for the Community Flood and Storm Protection Fee are detailed in the attached tabulation report and summarized as follows:
Total Number of Valid Votes 10,032
Total Number of “Yes” Votes 5,195
Total Number of “No” Votes 4,837
Total Number of “Invalid” Votes 85
As determined by the ballots cast, 51.78% of the valid votes cast by property owners were in support of the measure, representing a majority. Since a majority protest, as defined by Article XIII D of the California Constitution, did not exist on the October 16th public hearing and a majority of valid ballots cast by property owners were in favor of the fee, City Council has jurisdiction to order levying the Community Flood and Storm Protection Fee. Staff recommends City Council adopt the attached resolution to certify the tabulation results and order the levying of the Community Flood and Storm Protection Fee for Fiscal Year 2024-25. Staff would then proceed with providing the County Assessor’s Office the necessary fee details for each parcel to enable placement of the fee on the 2024-25 tax roll.
BUDGET IMPACT:
If the proposed fee is levied, the revenue will be approximately $4,000,000 in the first fiscal year. The fee is subject to a maximum annual increase of 3% based on the Consumer Price Index (CPI), to be approved annually by Council. Staff will bring recommended stormwater fee assessments based on CPI annually to City Council for consideration.
ENVIRONMENTAL DETERMINATION:
This action 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
Att 1 – Proposed Resolution
Att 2 – Final Tabulation Report
STAFF CONTACT
Jimmy Vo, Senior Engineer
[email protected]
(650) 522-7319