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Home My WebLink AboutRESO 9673170417 jb 6053948 1 Resolution No. 9673 Resolution of the Council of the City of Palo Alto Declaring the Results of the Mail Ballot Election Management Fee R E C I T A L S A. On August 29, 2016, by its adoption of its Resolution No. 9624, the City Council (i) existing Storm Drainage Fee and B. A complete descri which is attached hereto and incorporated herein by reference. C. On October 24, 2016, following a properly noticed protest hearing at which it was determined that a majority protest against the Proposed Fee did not exist, the City Council adopted its Resolution No. 9635 . D. The Election Resolution (i) called a mail ballot election for Tuesday, April 11, 2017 to submit the Proposed Fee to property owners; (ii) directed that the Election be conducted pursuant to the Procedures; and (iii) directed staff to conduct the Election. E. The Election was conducted as directed by the City Council, and the City Clerk has tabulated the ballots cast in the Election. F. The City Council desires to declare the results of the Election. NOW, THEREFORE, the City Council HEREBY resolves as follows: SECTION 1. The City Council declares and certifies that the results of the Election are as follows: a. Total Ballots Returned and Not Withdrawn: 8,257. b. Votes In Favor: 5,161. c. Votes Opposed: 2,931. SECTION 2. The City Council declares that the Proposed Fee has been approved by the property owners in the Election. DocuSign Envelope ID: E3D306D8-BB1C-44A1-878F-0C7D65C7BCDE 170417 jb 6053948 2 SECTION 3. The City Council may, by future action, levy the Proposed Fee at any rate as adjusted by the inflation adjustment set . // // // // // // // // // // // // // // // // // // // // // // DocuSign Envelope ID: E3D306D8-BB1C-44A1-878F-0C7D65C7BCDE 170417 jb 6053948 3 SECTION 4. The Council finds that this resolution, declaring the results of a mail ballot election is categorically exempt from California Environmental Quality Act review under CEQA Guidelines Section 15061(b)(3), because these actions do not have the potential for causing a mechanism for storm water management projects is not a project under CEQA Guidelines of government funding mechanisms which do not involve commitment to any specific project which may result in a potentially significant environmental impact. Thus, no environmental analysis is required at this time. Future CEQA review will occur based on the selection of storm drain capital improvement projects that may be funded by the proposed storm water management fees. INTRODUCED AND PASSED: April 17, 2017 AYES: DUBOIS, FILSETH, FINE, HOLMAN, KNISS, KOU, SCHARFF, TANAKA, WOLBACH NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Public Works Director of Administrative Services DocuSign Envelope ID: E3D306D8-BB1C-44A1-878F-0C7D65C7BCDE 170417 jb 6053948 4 DESCRIPTION OF THE PROPOSED STORM WATER MANAGEMENT FEE A. Overview The proposed Storm Water Management Fee would have two components: A Base Component A Projects and Infrastructure Component B. Proposed Rates (Effective June 1, 2017) The Proposed Rate for the Storm Water Management Fee effective June 1, 2017 is: $13.65 per ERU (Equivalent Residential Unit) per month. This is comprised of: Base Component of $7.48 per ERU per month; and Projects and Infrastructure Component of $6.17 per ERU per month C. Inflation Adjustment In order to offset the effects of inflation on labor and material costs, the maximum rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) will be increased annually each July 1 (beginning July 1, 2018), by the lesser of (i) the percentage change in the Consumer Price Index [CPI] for the San FranciscoOaklandSan Jose CSMA, published by the United States Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%. The City Council would have the authority to set the rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) at any rate that is less than or equal to the inflation adjusted maximum rate. D. Duration 1) Base Component The Base Component would be charged monthly, beginning June 1, 2017, until terminated by the City Council. DocuSign Envelope ID: E3D306D8-BB1C-44A1-878F-0C7D65C7BCDE 170417 jb 6053948 5 2) Projects and Infrastructure Component The Projects and Infrastructure Component would be charged monthly, beginning June 1, 2017. Unless further extended by the voters, the Projects and Infrastructure Component would no longer be charged beginning June 1, 2032. E. Method of Collection and Calculated The Storm Water Management Fee would be collected and calculated in the manner set forth in City of Palo Alto Utilities Rule and Regulation No. 25, subject to the exemptions set forth in this Section E. As a general rule, ERU's are assigned to each parcel subject to the fee on the following basis: SingleFamily Residential Parcels: Lot Size ERU's <6,000 sq. ft. 0.8 ERU 6,000 11,000 sq. ft. 1.0 ERU >11,000 sq. ft. 1.4 ERU All Other Improved Parcels: Number of ERU = Impervious Area (Sq. Ft.) / 2,500 Assigned ERU's are rounded to the nearest onetenth of an ERU. Unimproved parcels are not subject to the Storm Water Management Fee, and the fee will not be charged for developed parcels that (i) have their own maintained storm drainage facility or facilities, and which do not utilize City facilities or (ii) make no substantial contribution of storm or surface water to the City's storm drainage facilities. For a more complete description of the manner of collection and calculation of the Storm Water Management Fee, reference is made City of Palo Alto Utilities Rule and Regulation No. 25. F. Use of Funds Proceeds of the Storm Water Management Fee would be available to the City exclusively to pay for: (A) Improving the quality of storm and surface water; (B) The operation, maintenance, improvement and replacement of existing City storm drainage facilities; and (C) The operation, maintenance, and replacement of future such facilities. DocuSign Envelope ID: E3D306D8-BB1C-44A1-878F-0C7D65C7BCDE 170417 jb 6053948 6 Permissible uses would include, but not be limited to, Green Storm Water Infrastructure programs (including financial incentives to property owners) intended to reduce the quantity of storm water entering the City's public storm water system or to improve the quality of storm water before it enters that system through measures including, but not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bioretention/infiltration basins and planters, and permeable pavement. G. Oversight provision for proposed fee increase The City Council would appoint an oversight committee to monitor and review expenditures for all storm water funding elements, including, but not limited to, Green Storm Water Infrastructure projects, storm water Capital Improvement Program projects, and Incentive Project funding and ensure that the money raised from the increased storm water management fee is spent in accordance with this resolution. The Committee would be empowered to consider and recommend consolidation of Green Storm Water Infrastructure and Incentive Project funding for particular projects. The City Council may choose to retain the members of the existing Councilappointed Storm Drain Oversight Committee to perform this oversight function. The oversight committee would report its findings to the City Council at least annually. H. Payasyougo funding of capital improvements The storm drain capital improvements to be funded through the proposed Storm Water Management Fee would be paid for on a payasyougo basis, without debt financing. 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