The URL can be used to link to this page

CC 3-5-19 Item #7 Stormwater Ballot Intiative Fee Study PresentationCC 3/5/2019 Item #7 1 Fee Report and Balloting 2019 Clean Water & Storm Protection Initiative 1.Background 2.Current Storm Water Issues & Impacts 3.Clean Water and Storm Protection Programs 4.Fee Report 5.Ballot Process 6.Next Steps Presentation Outline 2 3/5/2019 2 Study Session •June 2018 •Pursue SD Revenue Survey •Aug -Nov 2018 •Priorities •Feasible Rates Results •January 2019 •Clean water •Storm protection (O&M) •Groundwater •Rates <$50 SD Master Plan •January 2019 •Capital Program •$79 million Fee Study •Revenue required •Rates Background 3 •Program is unsustainable •Revenue is fixed at $379k annually •Program budget for clean water & storm protection is ~$1.54M/year •$958k Clean Water •$586k Protection (O&M) •Revenue shortfall = $1.16M annually Issue 4 3/5/2019 3 •Draws away from other City priorities •Not reliable •This limits: •Smart investment in infrastructure •Ability to be effective and proactive 5 Impacts •Pollution prevention programs •Creek clean-up events •Land development oversight •Inspections •Regional collaboration for permit compliance The Clean Water Program (59% of budget) 6 3/5/2019 4 •Storm response •Street sweeping •Inlet Cleaning (2200) •Storm drain inspection/repair •Outfall inspection/repair •Trash full capture cleaning (147 & growing) Storm Protection (41% of budget) 7 O & M by the Numbers 4,300 inlets, manholes, outfalls 90 miles of pipeline 413 trash capture devices 9 miles of creeks $200m system value O & M by the Numbers 4,300 inlets, manholes, outfalls 90 miles of pipeline 413 trash capture devices 9 miles of creeks $200m system value ACHIEVE COMMUNITY PRIORITIES SMART, SUSTAINABLE INVESTMENT IN AGING INFRASTRUCTURE PROTECT LOCAL CREEKS & RECHARGE GROUNDWATER PROTECT PROPERTY FROM LOCAL FLOODING Why is City Implementing Program? 8 3/5/2019 5 •Determine Revenue Requirement •Apportion Costs Fairly Fee Report 9 Revenue Requirement •LWA Cost Projections •Two Programs •17 elements •5 years •$7.7m Cost •($1.9m ex rev) •$5.8m Rev Req’t •(CIP not included) 10 3/5/2019 6 •Based on fair share of stormwater runoff •Impermeable Surfaces Rates & Rate Structure Property Classifications Residential ( “per parcel” ) 6 size groups 61% of revenue (94% of parcels) Non-Residential ( “per acre” ) 7 categories based on impermeability characteristics 39% of revenue (6% of parcels)11 •$44.42 single-family rate •16,612 parcels •15,838 residential •774 non-residential •$1.1m revenue Recommended Rates 12 Figures are for FY 2019-20 Future years’ revenue assumed to increase @ 3% Single‐Family Residential * Small (Under 0.13 acre)36.58$ per parcel Medium (0.13 to 0.22 acre)44.42$ per parcel Large 0.23 to 0.40 acre)55.58$ per parcel Extra Large (over 0.40 acre)106.42$ per parcel Condominium 1(1 story) 36.58$ per parcel Condominium 2+ (2+ stories) 11.99$ per parcel Non‐Single‐Family Residential ** Multi ‐Family Residential 30.88$ per 0.1 acre Commercial / Retail / Industrial 40.38$ per 0.1 acre Office 30.88$ per 0.1 acre Church / Institutional 26.13$ per 0.1 acre School (w/playfield) 19.00$ per 0.1 acre Park 7.13$ per 0.1 acre Vacant (developed) 2.38$ per 0.1 acre Open Space / Agricultural Land Use Category no charge Proposed Fee FY 2019‐20 Low Impact Development Adjustment *** 25% Fee Reduction 3/5/2019 7 Sampling of Rates 13 Single Family Residential$3.70 / mo Commercial$13.46 / mo Vacant$0.59 / mo Rates are in addition to the existing Fee •$12 for the average home •$144/acre for non-residential Single Family Residential$44.42 / yr Average Commercial (0.4 acre)$161.53 / yr Average Vacant (0.3 acres)$7.13 / yr Storm Drain Fee Context Example Monthly Bills $60 – Water (winter) $24 – Sewer $150 – PG&E $150 – Comcast 14 $5 3/5/2019 8 •Green Infrastructure (LID) •Helps City achieve goals •Rate* reduced by 25% •Open Space / Agriculture not charged •Developed Vacant Land IS charged Some Rate Details * LID rate adjustment is for non-residential and condos only 15 Ballot Process (Prop 218) Mail Notice to Property Owners (March) Conduct Public Hearing (May 7) Majority Protest Can Halt Process 16 Ballot Period (May - June) Tabulate Ballots & Announce Results (June) City Clerk – Official Tabulator Simple Majority (50%) Approves Measure One Parcel – One Vote 3/5/2019 9 •Ballot Measures: •Statewide: 29 measures •Bay Area: 12 measures (e.g., Palo Alto (3), Burlingame, Berkeley (2), Moraga, Vallejo) •Stormwater Fee Mechanisms: •Statewide: 69 •Bay Area: 24 What Have Other Cities Done 17 •$92 – San Jose •$164 – Palo Alto •$0 – Sunnyvale •$150 – Burlingame •$109 – Santa Cruz •$88 – Los Altos (proposed) •$56 – Cupertino (includes existing $12 rate) Storm Drainage Rates in Other Cities 18 3/5/2019 10 Some Final Notes on Rates Most Impacted Owners •Apple ($55k – 18 parcels) •Cupertino USD ($26k – 11 site) •De Anza ($21k – 2 parcels) •Fremont UHSD ($18k – 1 site) •Vallco LLC ($19k – 12 parcels) •City ($15k – 51 parcels) No Exemptions for: •Seniors •Low Income •Churches •Governmental Indexed for inflation No Sunset 19 •Consider Fee Report •Resolution 19-022: •Initiating the Prop 218 Process •Approving Fee Report •Set Date for Public Hearing •Resolution 19-023: •Establishing Prop 218 Procedures Tonight’s Actions 20 3/5/2019 11 Council approval of Fee Report – March 5 Public notice – 45 day between notice and public hearing Community Meetings March 28 (QCC) April 9 (Sr. Center) April 13 (City Hall) April 30 (Sr. Center) Public Hearing & Rate Ordinance – May 7 Ballot period - May / June Next Steps 21 Questions 22