HomeMy WebLinkAbout1999-03-02 City CouncilCity of Palo Alto
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:MARCH 2, 1999 CMR: 147:99
SUBJECT:FINANCING THE NEXT PHASE OF STORM DRAINAGE
IMPROVEMENTS
REPORT IN BRIEF
A Storm Drainage Master Plan (Master Plan) was presented to Council in 1994. The Plan
was under review by the Utilities Advisory Commission when California voters approved
Proposition 218 in November 1996. Proposition 218 raised questions about the ability of the
City to raise storm drainage fees without ratepayer approval, and Master Plan project
planning was put on hold, pending clarification of Proposition 218.
Public Works staff has since reprioritized Master Plan projects as a result of field crews’
observations of the storm drainage system performance over the past five years. Based on
a review by Public_Works Engineering and Operations staff, a reprioritized 30-year Plan is
now recommended at a lower cost than the original Plan submitted to Council in 1994.
The current rate level of the storm drainage fee will not support any additional capital
improvements. In order to fund new capital work, a fee increase will be needed. To comply
with Proposition 218’s requirements on property related fees, of which storm drainage
qualifies, any proposed fee increase must be brought to the ratepayers in a mail ballot
procedure. Assuming the Council directs staff to proceed, the earliest that a ballot procedure
could occur is in Spring 2000. Staff believes that the public’s awareness of the importance
of storm drainage improvements has been heightened by the Winter 1998 storms, and that
it is therefore appropriate to move forward in the near future with a proposed fee increase to
accomplish additional capital improvements. Staff has proposed a plan that would result in
an initial fee increase from the current $4.25 to $10 per household per month, effective in
fiscal year 2000-2001.
CMR:147:99 Page 1 of 13
RECOMMENDATION
Staff recommends that the Finance Committee and the City Council:
Provide feedback on the level of fee increase the Committee would like staff to
pursue. Staff recommends that the Finance Committee consider a level of funding
that would provide for:
a)an augmented maintenance, repair, and rehabilitation program, estimated at
$480,000 annually, beginning in 2000-01;
b)funding for San Francisquito Creek liaison work, studies, and minor repairs
over the next seven to ten years until a regional flood and erosion control
solution can be found for the Creek. Annual funding is estimated at $285,000,
beginning in 2000-01;
c)an annual capital budget funded on a pay-as-you-go basis such that all critical
and moderate Storm Drainage Master Plan priorities, totaling $48 million,
would be completed in approximately 30 years. Critical priorities are those
that would address chronic, moderate to severe street and intersection ponding
problems. Moderate priorities are those that would address periodic, moderate
street ponding problems.
Direct staff to work towards the goal of seeking ratepayer approval for a Storm
Drainage Rate increase in approximately one year. Staff’s recommendation would
require ratepayer approval for a fee increase from the current storm drainage fee of
$4.25 per household per month to approximately $10 in 2001, $11 in 2002, and no
more than the Consumer Price Index (CPI) thereafter. Staff estimates this would
result in a monthly fee of $12 in about 2007, and peaking at $13 in approximately
2012 through about 2030. (These numbers are approximate at this time, and would
be refined between, now and any Council approved mail ballot procedure.)
Indicate whether the Committee wishes to review a scope of services for a Request
for Proposal for consulting services to: a) validate the existing storm drainage fee
structure for compliance with Proposition 218, and b) work with staff to conduct a
public education and awareness effort on the status of the Storm Drainage Fund and
the proposed rate increase.
BACKGROUND
In 1994, staff presented to the Finance Committee a summary of the storm drain
infrastructure improvements recommended in the Storm Drain Master Plan and Storm Drain
Condition Assessment studies. The recommended work consisted of a $60 million, 30-year
program to replace or repair damaged drainage system components and to increase capacity
CMR:147:99 Page 2 of 13
by constructing new pipelines ($60 million in 1993 dollars has increased to roughly $71
million in current year dollars). Staff also presented a number of alternative funding
strategies, including debt financing, pay-as-you-go, and a combination of the two methods.
After consideration of staff’s recommendations, the Committee directed staff to:
1.Divide the proposed storm drain projects into three prioritized categories:
A.system repair and ongoing programs,
B.construction of new or improved drainage facilities in areas which are
substandard compared with the rest of the City, and
the remainder of the capacity upgrade projects.
Proceed with Category A and B projects, using a combination of bonds and storm
drainage fees.
Hold the projects in Category C in the Finance Committee while staff conducts an
extensive survey to determine the level of public interest in pursuing the storm drain
augmentation program.
During the Fall of 1995, a consultant was retained to assist staff in conducting a public
outreach campaign to gauge the level of public interest in storm drain improvements. The
consultant prepared an informational brochure outlining the proposed storm drain
infrastructure improvements and their costs, which was delivered to residents as an insert to
the Palo Alto Weekly in September 1995. Staff followed up by hosting a series of ten
community meetings between October 12 and November 15, 1995. At each of the meetings,
staff offered a detailed presentation of the history, rationale, and proposed funding strategy
for the proposed storm drain improvement program, and provided ample opportunities for
questions and comments from residents and business representatives.
Although the neighborhood meetings produced lively discussion, there was no consensus on
the merits of funding Category C projects. Residents of areas where ponding of storm water
runoff is a chronic problem due to drainage infrastructure deficiencies expressed the
strongest support for the drainage improvements. Concerns were expressed regarding the
fairness of a citywide fee paying for area-specific improvements, the wisdom of incurring
substantial long-term debt to finance the improvements, and the cost impacts on utility
ratepayers. Residents also sought more information regarding the implications of not
constructing the improvements and on City programs and policies discouraging the
construction of additional impervious area that would further increase storm water runoff.
Following the public outreach campaign, in December 1995, Council referred the storm drain
infrastructure improvement program to the Utilities Advisory Commission for technical
review. The Commission expressed concern regarding the benefits of the proposed drainage
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improvements relative to the cost of the program. The Commission also asked staff to do a
more thorough analysis of alternative project funding mechanisms. Staff’s review of the
program with the Commission was interrupted by the passage of Proposition 218.
In November 1996, Califomia voters passed Proposition 218, a comprehensive Constitutional
amendment that covers property-related fees, assessments, and taxes. Analysis by
Administrative Services Department staff and the City Attorney’s Office indicates that the
charge levied by the City for the storm drainage program is classified as a property-related
fee under the provisions of the Proposition. Consequently, the next time storm drainage fees
are proposed to be raised, they are subject to approval by a majority of property owners or
ratepayers. That approval may be in the form of a special mail ballot procedure. The timing
of such a procedure is not required to coincide with a primary or general election. Clarifying
legislation adopted by the Legislature after the passage of Proposition 218 allows the City
to ask voters for approval for an increased fee structure plus authority to increase fees in the
future by the Consumer Price Index (CPI) without subsequent voter approval.
As was reported in the 1998-99 Budget Issues report (CMR: 199:98), current Storm Drainage
Fund revenues will only support ongoing maintenance, storm water quality protection costs,
and debt service on existing bonds. The last fee increase was adopted in 1994-1995 to pay
for capital improvements, funded by bonds. A fee increase will be needed to pay for any
additional capital improvements in the future. To date, the majority of the planned
improvements that were funded by bonds have been completed, including storm drain pump
station improvements, storm drain system replacement/rehabilitation, curb and gutter
replacement, and Barron Park storm drain improvements.
DISCUSSION
Staff has had the opportunity to observe the performance of the City’s storm drainage system
for a period of five years since the completion of the Storm Drain Master Plan. The wet
winters of 1994-95, 1996-97, and 1997-98 provided particularly good opportunities to gauge
the adequacy of the drainage system during severe storm conditions. Valuable information
has been gathered during storm events by way of visual observations by Public Works
Operations staff, through tracking and analysis of residents’ reports ofponding conditions,
and through storm water pump station operational data collected by the City’s upgraded
telemetry system, installed in 1996. The observations have led staff to several key
conclusions:
Observations during actual storm events confirm the Master Plan’s finding that there
are components of the City’s storm drain system that lack adequate drainage capacity.
Drainage problems exist both in areas with minimal drainage facilities and areas with
facilities that are undersized. Many storms smaller than the 10-year storm event
(which was recommended as the design standard) resulted in ponding on streets and
intersections and minor structure flooding in several parts of the City.
CMR: 147:99 Page 4 of 13
There is general correlation between the areas of the City that experience the most
frequent drainage problems and the areas assigned the highest priority for drainage
improvements in the Master Plan. Drainage backups occur most often in the
neighborhoods in the eastern and northern portions of the City. These areas have
relatively flat, low-lying terrain that drains slowly and that may be below the high
water levels in the creeks during heavy storms. Streets that drain to the creeks by
gravity, without the advantage of a pump station, are particularly vulnerable to
ponding.
There is a need to reexamine the appropriateness of some of the specific
recommendations in the Master Plan. Recent experience suggests that some of the
projects recommended in the Master Plan may not be the optimum solution to the
drainage system deficiencies. In particular, during preparation of the Master Plan,
staff purposely attempted to avoid the need for additional storm water pump stations.
Pump stations are relatively expensive, may require land acquisition, result in ongoing
maintenance costs, and are subject to mechanical or electrical breakdown. If costs
and other factors are comparable, a system that drains by gravity is always preferable
to a pumped system. Staff’s observations of drainage system performance has shown,
however, that some of the worst drainage problems in the City occur on gravity
systems that are unable to drain when the creeks reach high levels. In some of these
cases, construction of a new pump station to pump existing pipelines may prove to be
a superior alternative to the installation of larger pipelines. Refinement of the scope
of drainage solutions for specific locations will require further engineering study.
Staff recommends that the Master Plan be used as a guide for development of storm
drain infrastructure improvements rather than a rigid set of mandates.
Several of the areas of the City with the most severe drainage deficiencies are not
addressed in the Master Plan. The Master Plan is a macroscopic overview of the
City’s storm-drain system. The computer model that was developed to analyze the
drainage system only contains storm drain trunk lines over 18" in diameter, which
make up approximately 30 percent of the total drainage network. In addition to
recommended modifications to address undersized trunk lines, the Master Plan’s cost
estimates include an allowance of approximately 20 percent for local drainage
improvements associated with the trunk lines.
Staff has noted that many of the chronic drainage problems observed in the field occur
in areas with inadequate or non-existent local drainage facilities. Many of these
deficiencies are unrelated to storm drain trunk lines or affect geographic areas too
small to be addressed by the Master Plan. These problem areas nevertheless merit
attention. The widespread extent of drainage deficiencies was very evident in the
February 1998 storms, when many areas throughout the City outside the San
Francisquito Creek flood plain experienced flooding caused by storm drainage
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backups. Staffhas concluded that the allowance factored into the Master Plan cost
estimates is not sufficient to cover the costs to correct local drainage deficiencies
throughout the City. Staff has developed a supplemental estimate to cover the cost
of these improvements.
Additional modifications to the City’s existing pump stations are required to optimize
their performance. In 1995-96, staff implemented a capital improvement project to
upgrade the City’s storm water pump stations. An important component of the project
was the upgrading of the stations’ monitoring and remote telemetry system. This
system monitors the performance of each of the pump stations and transmits the
information to a central computer located at the Utility Control Center. The system
has provided a wealth of information regarding pump station performance, including
pump run times, wet well water levels, and pump cycling patterns. Staff has been
able to take advantage of this information to identify further modifications that should
be made to the pump stations to improve their performance. Staff has also identified
improvements needed at each of the stations to improve worker safety, station
reliability and efficiency. Staff has developed a supplemental estimate to cover the
cost of recommended pump station upgrades.
Proposed Financing Strategy
Staff has assessed the ongoing maintenance, repair, and rehabilitation needs for the storm
drain system based on experience over the past five years, and is recommending a three
pronged financing approach for the Storm Drainage Fund. It consists of:
1)$480,000 annually in additional operations and maintenance efforts;
2)$285,000 annually for a seven to ten year time frame for creek liaison work,
environmental studies, and local improvements until a regional solution to
creek flooding has been addressed; and
3)capital funding sufficient to complete the critical and moderate priority capital
improvements over the next 30 years. Staff has defined these priority capital
projects (discussed below and shown in Attachment A) as those that will
address street ponding problems which occur on a periodic to frequent basis,
and which cause moderate to severe ponding problems.
Each of these items is discussed in more detail below.
Operations and Maintenance:
When the Storm Drainage Fund was created by Council in 1989, maintenance staffing levels
were set at a minimum level in order to reduce the amount of the initial user fee and to allow
an opportunity for staff to evaluate actual needs through experience. The current
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maintenance staffmg level is 5.0 FTE, including in-house maintenance, emergency response,
and functional area administration. Staffing was shifted by about 2.0 FTE to Public Works’
General Fund in 1998-99 to reflect budget constraints, as bond funding is being depleted and
future capital work will require approval of a rate increase. Until this year, staffing had been
at a fixed level since the inception of the Fund, with the exception of the addition of an
instrumentation electri(ian in F¥ 1997-98.
Staff is recommending a $480,000 annual increase to the storm drainage budget to allow for
the following staffing and program additions, which will need to be requested through the
budget process, but which staff has used for financial planning purposes:
o One additional field crew member ($60,000);
O One administrative person to manage data for Storm Drainage billing and field
maintenance activities ($60,000). Administration of the storm drainage fee requires
staff time to update billing records to reflect changes in impervious area as properties
are developed, make other miscellaneous billing adjustments, and workwith the
Utilities Department Customer Service representatives to respond to customer billing
inquiries. There is also a need to collect, input, and manage field data related to the
maintenance of the storm drainage system using a computerized maintenance
management system. This information enables staff to identify trends and to adjust
maintenance schedules and locations based upon observed field conditions. These
tasks are currently performed on a sporadic basis by existing staff and could be done
far more effectively and efficiently by a dedicated staffperson;
O $60,000 annually to be set aside for future condition assessments of the storm
drainage system to be conducted approximately every ten years. A condition
assessment includes inspection of the individual manholes, catch basins, and pipelines
that make up the storm drainage system, evaluation of their current condition, and a
prioritized list of recommended repairs or replacements. Pipeline inspection is
performed with closed circuit television cameras that are pulled, through the pipes.
The original storm drain condition assessment was performed in 1991-92, at a cost of
$820,000. Future assessments could be performed at a lower cost by focusing on
those system components that were found to be in marginal condition in the original
assessment; and
O $100,000 annually to be set aside in an equipment replacement reserve for replacing
or upgrading storm water pump station equipment as needed. The City currently has
six pump stations throughout the City, and two additional stations are recommended
to be constructed as part of the storm drainage infrastructure improvements;
CMR:147:99 Page 7 of 13
$200,000 for an annual curb and gutter repair program. This funding was reduced
in recent years as the Storm Drainage Fund’s financial condition worsened, and this
would merely restore the funding to its previous level.
San Francisquito Creek Liaison Work and Local Improvements:
San Francisquito Creek is by far the largest remaining flooding threat in Palo Alto. The
February 2-3, 1998 flood displayed the magnitude of the damage potential from the
overtopping of this creek. While the Santa Clara Valley Water District and the San Mateo
County Flood Control District have primary responsibility for flood control on San
Francisquito Creek, it has become increasingly clear that implementation of a flood control
project on the creek will require a cooperative effort between the various cities and water
districts with jurisdiction over portions of the creek, the regulatory agencies, and the public.
Since February, staff has been meeting with representatives from the cities of Menlo Park,
East Palo Alto, Portola Valley, and Woodside, the Santa Clara Valley Water District, the San
Mateo County Flood Control District, and the Coordinated Resource Management and
Planning (CRMP) representatives to discuss the possibility of forming a Joint Powers
Authority (JPA) to oversee a flood control project for the creek. Although funding
mechanisms have not yet been established, assessment district funding appears to be the most
likely, with properties that would benefit from San Francisquito Creek improvements paying
the assessments. Staff’s recommended rate proposal below provides for interim City funding
for San Francisquito Creek work. City funding could potentially be used for engineering
studies, environmental assessment, right-of-way acquisition, erosion control work, or local
improvements related to the regional flood control project.
Although the exact nature of the long-term San Francisquito Creek flood control
improvements is unknown at this time, it will be a major project that will have multiple
impacts on City infrastructure and the residents of the adjacent neighborhoods. In the early
stages of the coordination efforts on flood control issues, a staff member will be needed to
act as the City’s liaison with the other agencies, represent the City’s interests, undertake
various feasibility studies, .and conduct public outreach. As the planning and design process
begins, that position’s responsibilities may include technical review, coordination of project
review by various City departments, additional public outreach and education, and
management of City construction projects related to any flood control efforts funded by the
JPA. The liaison would also coordinate with the Santa Clara Valley Water District
maintenance staff to facilitate periodic sediment and vegetation removal from the other
Creeks in Palo Alto (Matadero, Adobe, and Barron). Staff estimates that the following is
needed over the next ten years for efforts related to San Francisquito Creek until a more
permanent and regional flood control solution is reached:
o $85,000 armually for ten years, beginning in 2000-2001, for a dedicated creek liaison
staff person;
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o $200,000 annually for seven to ten years beginning in 2000-2001, for activities that
may include engineering studies, environmental assessment, right or way acquisition,
public outreach, erosion control work, or local improvements related to the regional
flood control project.
Capital Improvements:
Given five years of experience since the publication of the Storm Drainage Master Plan,
Public Works staff has been able to observe the impacts of localized flooding on the storm
drainage system, and has revised the Storm Drain Master Plan recommendations. Staff’s
recommendation (Attachment A) totals $48 million in current year dollars, and is now
prioritized based upon what has been learned over the past several winter seasons. Staff
recommends that the first two priorities (listed below) be funded over 30 years:
Priority Group 1:CRITICAL PRIORITY, $24 million:
a)Complete rehabilitation to existing infrastructure that has
deteriorated, as identified in the 1993 Condition Assessment.
Priority Group 2:
b)Fund minimum set of infrastructure enhancements required to
address chronic, moderate to severe street ponding problems.
MODERATE PRIORITY, $24 million:
Set of enhancements to infrastructure recommended to address
periodic, moderate street ponding problems.
Funding these priorities would further require some level of engineering augmentation (.5
to 1.0 additional staff) for a period of 10 to 15 years, in order to handle the level of capital
work required to complete all critical and moderate priority capital improvements.
The following two priorities are not recommended to be funded at this time:
Priority Group 3:LOWER PRIORITY, $13 million:
Priority Group 4:
Enhancements to infrastructure that would be desirable if funding were
available to address relatively minor or infrequent street ponding
problems.
PROJECTS NO LONGER RECOMMENDED, $11 million"
Projects from the Storm Drain Master Plan not recommended at this
time due to lack of observed drainage problems in project areas.
CMR: 147:99 Page 9 of 13
Storm Drainage Fees
Staffs recommended fee proposal contains the three elements described above: an
augmented operations and maintenance program, a seven to ten year creek liaison and local
improvements program, and a 30 year capital program. This proposal requires that fees be
raised from the current level of $4.25 per household per month to approximately $10 initially
in 2001, $11 in 2002, with increases of no more than CPI thereafter. (Actual fee increases
would be less frequent after the initial ramping up). Rates of approximately $12 would be
needed in about 2007, and $13 in about 2012 through 2031. This recommendation is shown
in Attachment B.
In order to fund only the first two elements of staff s recommended rate plan, i.e., augmented
operations and maintenance and creek liaison work, an initial fee increase to $7.00 per month
(from the current $4.25 per household per month) would be needed in 2000-01. Therefore,
the capital component is not the most significant cause for the fee increase, but is only a part
of the reason for the increase.
Because of the passage of Proposition 218, staff is recommending a larger initial fee increase
than would have been the case prior to its passage. This is because staff had originally
planned on recommending periodic fee increases for the Storm Drain Fund, perhaps every
three years or so. Now, an initial rate increase is needed at a level that can be sustained with
only CPI increases over time, in order to avoid the need to return to the ratepayers for
subsequent approval.
Staff believes that the recommended option would result in the lowest fees over time
consistent with ongoing maintenance and rehabilitation needs as well as addressing the most
important storm drainage priorities over a 30 year time frame, with the most critical priorities
addressed first. (Priority one projects would be completed in roughly 13 years under staff’s
recommendation.) Given a 75-100 year useful life for storm drainage facilities, a 30-year
capital program seems reasonable. It further seems reasonable to address the critical and
moderate priority needs over 30 years, while lower priority items could be addressed as
funding was available after that.
Staff also recommends this option because it reaches a maximum of about $13.00 over the
next 30 years. Note that this fee proposal is lessthan what was reported to Council in 1994,
in which a monthly fee of about $16.00 was projected for year 30 of the financing plan. The
change is primarily due to reducing the list of recommended capital projects, and the
elimination of debt financing.
Staff has researched storm drainage fees in other communities to serve as a basis of
comparison for the proposed increases. In a nationwide survey of storm drainage fees
conducted by a major consulting firm in 1998, monthly residential fees ranged from $0.24
to $11.31. The scope of services funded by these monthly storm drainage fees varied widely
CMR:147:99 Page 10 of 13
from jurisdiction to jurisdiction. Palo Alto’s fee would be considered a relatively broad-
based fee, covering capital improvements, maintenance, and water quality protection costs.
Staff believes that the level of community awareness of the need for storm drainage
infrastructure improvements has heightened as a result of the wet winters over the past few
years and especially the February 1998 flood. This change in awareness provides both an
opportunity and a challenge for the City. Heightened support for drainage improvements
improves the chances for obtaining public approval of an increase in the storm drainage fee
through a mail ballot procedure. Staff would like to take advantage of the current public
opinion climate by preparing for a mail ballot procedure in the next twelve months. On the
other hand, staff must carefully manage the public’s expectations by accurately describing
the scope of the proposed storm drain improvements. Storm drain improvements alone are
not sufficient to prevent the type of flood disaster that occurred in February 1998. This type
of event can only be averted in the future through a comprehensive flood control project for
San Francisquito Creek, which is a regional project requiring regional funding beyond the
scope of the proposed drainage improvements.
ALTERNATIVES TO STAFF RECOMMENDATION
Modified Staff Recommendation
A slight variation on staff’s recommendation was also considered. The initial fee increase
would be slightly less, because capital funding in the first 7-10 years would be lower. As
creek liaison and local creek improvements phased out after 7-10 years, a more aggressive
capital spending program could be implemented so that all priority capital improvements
would still be completed over 30 years. The advantage of this modified recommendation is
that it would require an initial fee increase to only $8.00 per month for the first two years,
then to $9.00 per month for two additional years, before moving up to $10.00 per month.
This alternative, shown in Attachment C, is not recommended because it would delay the
time period for addressing capital work, and staff believes the public would want to see a
more rapid system improvement plan. (It would take roughly four years longer to complete
all priority one projects under this option vs. the recommended option.) Finally, this option
would rise to a higher fee at its peak over 30 years, $15 per month (vs. $13 per month under
the recommended option).
Accelerated Capital Plan
Staff defined this option as the same as the recommended option above, but with sufficient
capital funding to complete priorities 1 and 2 projects over 20 years instead of 30 years. For
this more accelerated program, fees would have to be raised to $12.50 initially in 2001. This
option would require more frequent, subsequent increases than in staff’s recommendation,
although still no more than CPI. This would result in a maximum fee of $15 in about 2021.
Because this scenario, shown in Attachment D, results in earlier and more accelerated fee
increases, it is not recommended.
CMR:147:99 ’Page 11 of 13
Gradual Capital Funding
Staff defined this alternative as the funding needed to complete only priority 1 capital
projects over 30 years. For this more modest program, fees would have to be raised to $9.00
initially in 2001, then to $10.00 in about 2011, and to $11.00 in about 2029. This alternative
is shown in Attachment E, and is not recommended because it would not address projects of
moderate priority, i.e., those areas with periodic, moderate ponding problems.
RESOURCE IMPACT
Not moving forward with a rate increase would require that the Storm Drainage Fund
eliminate all future capital projects, and fall further behind in the maintenance of the existing
storm drainage system.
POLICY IMPLICATIONS
Approval of staff’s recommendations is consistent with the Comprehensive Plan: Policy N-
24 states that the City should "improve storm drainage performance by constructing new
system improvements where necessary and replacing undersized or otherwise inadequate
lines with larger lines or parallel lines." Program N-36 further states that the City should
"complete improvements to the storm drainage system consistent with the priorities outlined
in the City’s 1993 Storm Drainage Master Plan, provided that an appropriate funding
mechanism is identified and approved by the City Council."
TIMELINE
After Council direction is received, staffwill begin to prepare a draft Request for Proposals
(RFP) for consulting assistance to evaluate the storm drainage fee methodology for
compliance with Proposition 218. The consultant(s) will also be asked to assist staff in
developing a public outreach and education program on the proposed fee increase, which
would be needed prior to any mail ballot procedure.
Finance Committee feedback on whether they wish to participate in reviewing the draft RFP
is requested at this time. However, due to the upcoming budget hearings, review of the RFP
by the Committee could delay moving forward by 2-3 months. Staff estimates that it will
take about 12 months to select a consultant, have the rate methodology reviewed, perform
public outreach and education, and hold a mail ballot procedure. The earliest that a ballot
procedure could occur, therefore, is March 2000.
ENVIRONMENTAL REVIEW
Consideration of financial options does not require California Environmental Quality Act
(CEQA) review. Individual projects will be subject to environmental review as they are
further developed.
CMR:147:99 Page 12 of 13
ATTACHMENTS
Attachment A
Attachment B
Attachment C
Attachment D
Attachment E
Attachment F
Attachment G
Reprioritized Capital Projects
Recommended Rate Plan
Modified Staff Recommendation
Accelerated Rate Plan
More Modest Rate Plan
All Rate Plans Presented Together
Detailed Rate Forecast on Recommended Rate Plan
PREPARED BY:Jim Steele, Manager, Investments and Debt
Joe Teresi, Senior Engineer
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
cc:Utilities Advisory Commission
CAd m~i ni~AtiTvcS’f)~.S~rvicCt~r
GLENN S. ROBERTS
Director of Public Works
ity Manager
CMR:147:99 Page 13 of 13
ATTACHMENT A
PRIORITIZED LIST OF STORM DRAIN
IMPROVEMENT PROJECTS
PRIORITY GROUP 1 (CRITICAL PRIORITY):
a)
b)
Remaining rehabilitation of existing infrastructure that has deteriorated, as identified
in the 1993 Condition Assessment..
Minimum set of infrastructure enhancements required to address chronic, moderate
to severe street ponding problems.
Project Name
Pump station evaluation and upgrades
Relocate & pump 96" outfall into San Francisquito Creek
Newell Road pipeline, outfall, and pump station (System CC)
Harker Street pipeline (System CC)
Lincoln Avenue pipeline (System BB)
Parallel/Replacement pipelines (System BB)
Extend Gailen Ave./Bibbits Dr. outfall to Adobe Pump station
Improve drainage along southbound Alma Street
Connect Clara Drive drains to Matadero Pump Station
Balance of previously identified rehabilitation projects
from 1993 condition assessment
Location Cost (20005M)
Citywide $3.57
North Palo Alto $3.71"
Green Gables $3.62
Community Ctr.$2.41
Professorville $2.25
Professorville $1.78
Charleston Terr.$1.05"
Alma Street $1.21"
De Anza $0.55*
Citywide $4.16
SUBTOTAL =$24.31
*New priorities identified from observations by field crew over last 5 years
PRIORITY GROUP 2 (MODERATE PRIORITY):
Set of enhancements to infrastructure recommended to address periodic, moderate street
ponding problems.
Project Name Location Cost (2000 $M)
Southgate neighborhood drainage
Chaucer Street pipeline (System AB)
Parallel pipes (System ZZ)
Increase capacity @ EmbarcaderoiE. Bayshore
Kellogg Avenue pipeline (System BB)
Pitman Avenue pipeline (System CC)
Parallel pipes (System NN)
Parallel/Replacement pipelines (System GG)
(Loma Verde/Sterling Canal/Seale-Wooster Canal)
Install pipelines to connect siphons
Parallel pipes (System MM)
Middlefield Road pipeline (System MM)
Replacement pipelines (System CC)
Southgate $1.78’
Crescent Park $0.18
Baylands $0.65
Baylands $0.48*
Community Ctr.$1.70
Crescent Park $3.71
Ortega $0.60
Midtown/South PA $7.13
Various areas $3.33*
Charleston Ten’.$2.75
Charleston Ten’.$0.64
Green Gables $0.69
SUBTOTAL =$23.64
(Note:staff’s recommended rate plan accommodates completing Priorities
1 and 2 over 30 Years)
PRIORITY GROUP 3 (LOWER PRIORITY):
Set of enhancements to infrastructure that would be desirable if fimding were available to
address relatively minor or infrequent street ponding problems.
Project Name Location Cost (2000 $M)
Parallel pipelines (System DD)
West of Foothill Expressway
Parallel pipelines (System OO)
Waverley Street outfall (System GG)
Dana Avenue pipeline (Systems BB/CC)
Parallel/Replacement pipelines (System WW)
California Avenue pipeline (System J J)
Parallel pipelines (System EE)
Seale Addition $2.38
Foothills $1.19"
Industrial/Comm.$0.60
Old South PA $1.42
Green Gables $1.58
Arastradero Rd.$3.01
College Terrace $1.13 ’
Walnut Grove $1.43
SUBTOTAL =$12.74
PRIORITY GROUP 4 (PROJECTS NOT RECOMMENDED):
Set of projects from the Storm Drain Master Plan not recommended at this time due to lack
of observed drainage problems in project areas.
Project Name Location Cost (2000 SM)
Plug DD diversion
Louis Road outfall (System GG)
Middlefield Road outfall (System GG)
Parallel pipelines (System QQ)
Parallel/Replacement pipelines (System XX)
Parallel pipelines (System ZB)
Laguna Avenue pipeline
E1 Centro pipeline
Parallel pipelines (System KK)
Parallel pipelines (System ZA)
Replacement pipelines (System AA)
Replacement pipelines (System UU)
Replacement pipelines (System TT)
Parallel pipelines (System J J)
S. Green Gables $0.01
Midtown $0.54
Midtown $0.64
Fairmeadow $1.37
Barron Park $0.89
W. Charleston $1.89
Barron Park ’$0.42
Barron Park $0.21
Stanford Res. Park $0.58
Hillview/Arastra.$0.02
Boyce Addition $1.13
Barron Park $0.16
Barron Park $1.55
Evergreen Park $1.96
SUBTOTAL =$11.37
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