CITY OF SAN MATEO
5 7
7 9
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 40 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: June 16, 2025
SUBJECT:
Community Flood and Storm Protection Fee Increase for Fiscal Year 2025-26 — Adoption RECOMMENDATION:
Conduct a public hearing and adopt a Resolution to increase the Community Flood and Storm Protection Fee by 2.4 percent to account for the annual Consumer Price Index (CPI) increase.
BACKGROUND:
The City of San Mateo operates and maintains a stormwater system that provides vital services to protect neighborhoods from flooding and safeguard local waterways from pollution. This system comprises complex infrastructure, including surface drains, underground pipes and conduits, pump stations, creeks and channels, and the Marina Lagoon.
Improvements are needed to address flood control capacity limitations, aging infrastructure, enhanced operations and maintenance, and compliance with state and federal mandates to reduce pollutants in stormwater runoff.
The City’s stormwater system requires long-overdue upgrades to improve flood control and replace aging infrastructure.
Prior to 2024, the system lacked a dedicated funding source, and available funds were insufficient to adequately maintain and upgrade the drainage system.
On July 17, 2023, the City Council approved and adopted the Stormwater Fee Report, which outlines the financial requirements for implementing citywide stormwater improvements. At that meeting, the Council directed staff to initiate a Proposition 218 process to establish a new property-related fee. On January 16, 2024, following a two-month balloting process, the City Council certified the results of the vote and ordered the levying of the Community Flood and Storm Protection Fee (Stormwater Fee) for Fiscal Year 2024–25.
Beginning in Fiscal Year 2025–26 and for all future years, the Stormwater Fee is subject to an annual adjustment based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area, as of each December, with a maximum allowable increase of 3 percent. The CPI increase from December was 2.4 percent. Furthermore, any portion of the CPI above 3 percent is to be reserved as “Unused CPI” and may be applied in future years when the CPI is less than 3 percent. Since the CPI increase this year was below the cap, no Unused CPI will be banked. Pursuant to California Health & Safety Code Section 5473.1, the City Council must hold a public hearing before approving this annual adjustment.
The following table shows the proposed changes in monthly fees for Fiscal Year 2025-26.
Land Use Category Monthly Fee
Residential Cost (per parcel) FY 24/25 FY 25/26
Small Under 0.11 acre 5.55 5.68
CITY OF SAN MATEO
5 7
7 9
CITY OF SAN MATEO
5 7
7 9
Medium 0.11 to 0.17 acre 8.00 8.19
Large 0.18 to 0.23 acre 9.92 10.16
Extra Large Over 0.23 acre 11.08 11.35
Condominium 1 Level acre 5.35 5.48
Condominium 2+ Levels acre 2.71 2.78
Non-Residental (per acre) FY 24/25 FY 25/26
Commercial / Industrial 100.50 102.91
Office / Apartment / Institutional 81.82 83.78
Institutional w/Field 71.24 72.95
Park 5.53 5.66
Vacant (developed) 5.53 5.66
Open Space / Agricultural not charged
Funds from the Community Flood and Storm Protection Fee for the initial FY 2024–25 have been allocated to support operations and maintenance staff in the ongoing cleaning of storm catch basins, as well as critical capital improvements for minor storm drain “hotspot” repairs at several locations identified by engineering and operations staff.
Future revenues from this fee will continue to support these functions, along with major capital improvements to be identified in the upcoming Storm Drain Master Plan update and Marina Lagoon dredging projects. Staff will present the updated Master Plan to the City Council later this year for review of the proposed capital improvements.
Staff recommends that the City Council adopt the attached Resolution to increase the Community Flood and Storm Protection Fee by 2.4 percent for all parcels citywide.
BUDGET IMPACT:
Revenues from Community Flood and Storm Protection Fee for Fiscal Year 2024-25, after minor corrections to individual parcels, totaled $3,903,989.57. The proposed CPI increase of 2.4 percent will increase anticipated Fiscal Year 2025-26 revenue in the Storm Fund by approximately $93,700, for an estimated total of $3,997,700.
ENVIRONMENTAL DETERMINATION:
This Council action adopting a Resolution to establish the Community Flood and Storm Protection Fee rate for Fiscal Year 2025-26 is not a project subject to CEQA, because it consists of a government funding mechanism or other government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
Pursuant To Government Code Section 6066, notice of the public hearing was published twice in the San Mateo Daily Journal on May 30, 2025, and June 6, 2025, respectively.
ATTACHMENTS
Att 1 – Proposed Resolution
STAFF CONTACT
Jimmy Vo, Engineering Manager
[email protected]
(650) 522-7319