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HomeMy WebLinkAboutStaff Report 202-05City of Palo Alto City Manager's Report ---"'-,..,.-- TO: HONORABLE CITY COUNCIL 0 FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: APRIL 4, 2005 CMR: 202:05 SUBJECT: MAILING OF BALLOTS FOR STORM DRAINAGE FEE INCREASE This is an informational report and no Council action is required. BACKGROUND On December 6, 2004, Council approved a resolution proposing an increase in the monthly Storm Drainage Fee from $4.25 to $10.00 per Equivalent Residential Unit (ERU) and a resolution establishing the procedures and timeline for a protest hearing and ballot proceeding for the Storm Drainage Fee increase (CMR:508:04). On March 7, 2005, Council held a public hearing to accept written and oral testimony on the matter of the proposed Storm Drainage Fee increase. Upon a determination that written protests were not received from a majority of property owners, Council adopted a resolution calling a special mail ballot proceeding for Tuesday, April 26, 2005 to allow owners of parcels subject to the Storm Drainage Fee increase to vote on whether the fee should be increased. DISCUSSION On April 4, 2005, staff mailed ballots and supplemental information (see Attachment A) to all owners of parcels subject to the Storm Drainage Fee, in accordance with the timeline adopted by Council for the mail ballot proceeding. Completed ballots must be received by the City Clerk no later than 8:00 p.m. on Tuesday, April 26, 2005, at which time the City Clerk will count and tabulate the ballots in the Council Chambers. Council will certify the results of the mail ballot proceeding on May 9, 2005. If the ballot proceeding results indicate that a majority of the voters voting upon the fee increase voted in favor of the increase, Council may adopt the fee increase by resolution amending Utility Rate Schedule D-I. ATTACHMENT Attachment A: Storm Drainage Fee increase ballot and supplemental information PREPARED BY: J TERESI Senior Engineer . CMR.:202:05 Page lof2 DEPARTMENT HEAD: CITY MANAGER APPROVAL: cc: Storm Drain Committee Palo Alto Chamber of Commerce CMR.:202:05 1Ll~ GLENN S. ROBERTS Director of Public Works --®do.uO EMILY HARRISON Assistant City Manager Page 2 of2 i _ ATTACHMENT A April 4, 2005 Dear Property Owner: On March 7,2005, the City Council held a public hearing on a proposed Storm Drainage Fee increase for properties within the City of Palo Alto. In January, you were mailed a notice and informational flyer regarding this public hearing and the specific fee increase proposed for your property. After receiving public testimony, the City Council took action to submit the proposed fee increase to property owners for approval. Enclosed with this letter is an official City of Palo Alto Property Owner Ballot and an official postage paid.Return Envelope. Please mark your ballot "yes" or "no" and return it in the Return Envelope to the City Clerk by no later than 8:00 p.m. on April 26, 2005, to 250 Hamilton Avenue, Palo Alto. The City must receive mailed ballots by April 26, 2005. Postmarks do no count. The votes cast as "yes" or "no" will determine the fate of this fee increase. Ballots that are not returned or are returned late cannot be counted, so please return your ballot. Two items are enclosed with these ballot materials for your information. First, a summary of the procedures for the ballot proceeding is provided on the back of this letter. The complete procedures for this process are on file at the City Clerk's office and are posted on the· City's web site (www.cityofpaloalto.orglstormdrain). The second enclosure is a copy of Resolution 8483, which the City Council passed on December 6, 2004, to formally establish the terms and amount of the proposed fee increase, and the projects/programs on which funds will be spent if property owners approve the fee increase. If you have any questions about the ballot proceeding, or if you are disabled and need special accommodation to vote, please call City Clerk Donna Rogers at (650) 329-2571. If you have questions regarding the fee increase, please call Matt Raschke in the Public Works Department at (650)617-3183, or visit the City's web site at. www.cityofpaloalto.org/stormdrain. Please Vote! City of Palo Alto Proposed Storm Drainage Fee Increase SUMMARY OF BALLOTING PROCEDURES If you are the owner of the property described on the enclosed Return Envelope, or a voting representative designated according to the City's procedures for this ballot proceeding, you may submit the enclosed ballot to the City to support or oppqse the proposed Storm Drainage Fee increase. Please follow the instructions below to complete and return your ballot. The full text of the procedures governing the fee increase proceedings is available on the City's website at www.cityofpaloalto.org/stormdrain/docs/2005-voting-procedure.pdf. 1. Register your vote on the enclosed ballot in favor of or against the proposed fee increase by placing an "X" in the corresponding box. Mark your ballot in ink, not pencil. 2. Place the marked ballot m the official Return Envelope, and seal the envelope. 3. Mark, sign and date the Return Envelope in ink. Do not use pencil. Ballots received in a Return Envelope without a signature will not counted. 4. Mail or personally deliver your ballot to the City Clerk's office at P.O. Box 51470, 250 Hamilton Avenue, Palo Alto, CA 94303 (The Return Envelope provides postage prepaid). The City must receive all ballots by April 26, 2005. Postmarks do not count. 5. Ballots must be received by the City Clerk prior to 8:00 p.m. on Tuesday, April 26,2005. Any ballots received after this time cannot legally be counted (ballots may be hand-delivered to the City Clerk any time prior to this date and time). 6. After 8:00 p.m., the City Clerk and her designees will tabulate the ballots. Only one ballot may be submitted for each property. 7. If the results of the balloting indicate that a majority of the property owners voting upon the fee increase voted in favor of the increase, the City Council may adopt the fee increase. The information in this notice and the accompanying materials were compiled and are dis,tributed at public expense by the City of Palo Alto in compliance with Article XlIID of the California Constitution, the Proposition 218 Omnibus Implementation Act and procedures adopted by the City of Palo Alto Resolution No. 8484~ This information is presented in the public interest. It is not intended to influence or attempt to influence the actions of the voters to vote 'yes" or "no" on the enclosed ballot. RESOLUTION NO. 8483 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ADOPTING THE AMOUNT OF THE PROPOSED STORM DRAINAGE FEE INCREASE, DESCRIBING THE STORM DRAIN CAPITAL IMPROVEMENTS AND PROGRAM ENHANCEMENTS ON WHICH THE PROPOSED FEE WILL BE SPENT IF APPROVED, AND ADOPTING A SCHEDULE FOR THE PROTEST HEARING AND MAIL BALLOT PROCEEDINGON THE PROPOSED FEE INCREASE [Approved By Palo Alto City Council on December 6, 2004] EXHIBIT "A" Description Of Amount Of The Proposed Storm Drainage Fee Increase A. Summary of current storm drainage fee system The City's current storm drainage billing system is based on Equivalent Residential Units ("ERU'), which are generally determined by the square footage of impervious surface area on a property. One ERU equals 2500 square feet of impervious surface area on a property, and the current fee for one ERU is four dollars and twenty-five cents ($4.25). The ERU calculation was based on a sampling of single-family and duplex properties in the City, in which the typical impervious surface area was 2500 square feet. Thus, all single-family and duplex residential properties in the City are presumed to have one ERU of impervious surface area and are currently charged $4.25 per month for that ERU, regardless of the actual impervious surface area of their property. Commercial, industrial, institutional, government, and multi-family residential properties are-charged for their actual amounts of impervious surface area, at a rate of one ERU per 2500 square feet of impervious area. B. Proposed storm drainage fee increase 1. New residential rate structure and increasedfee The proposal to increase storm drainage fees involves two components. First, the charge per ERU would be raised from four dollars and twenty-five cents ($4.25) to ten dollars ($10). Second, the impervious surface area would no longer be presumed to be one ERU for all single- family and duplex properties. Instead, those properties would be placed into one of three ERU tiers based on the size of the property. Commercial, industrial, institutional, government, and multi-family residential properties would continue to be charged based on actual impervious surface area, but at the increased rate of $10 per ERU The following tables describe the changed rate structure and proposed fee increase: -. . ' ."'. ,'/i'i;' •. ,,,'i' RESII)ENTIALRATES(Single;;'Family&_nllple.x)'Ji~ "~';<\ .. PARCEL SIZE (sq.ft.) ERU PROPOSED RATE < 6,000 sq.ft. .8ERU $8.00 6,000-11,000 sq. ft. lERU $10.00 > 11,000 sq.ft. 1.4ERU $14.00 -:!,:COMMERCIAvRATES.· ·CommerCi31; industrial;.multifamil ,ires~ $10.00 per 2,500 square feet of impervious surface area (ERU), rounded to the nearest 0.1 ERU 4/4/2005 Page 1 2. Annual inflation adjustments to proposed fee increase In order to offset the effects of inflation on labor and material costs, the proposed fee increase would be subject to annual increases beyond the initial $10.00 per ERU rate as of July 1 of each year, starting in 2006. Inflation adjustments would be based on the lesser of the local rate of inflation (based on the change in the Consumer Price Index [CPI] for the S:;m Francisco- Oakland-San Jose CSMA, published by the United States Department of Labor, Bureau of Labor Statistics) or 6 percent. The City Council would have the authority and discretion to implement inflation adjustments on an annual basis as part of the City budget process. 3. Twelve year sunset provision for proposed fee increase The proposed stOrID drainage fee increase would sunset twelve (12) years from the date the fee increase is implemented, as the storm drain capital improvements to be funded by the increase would be completed by that time. 4. Oversight provision for proposed fee increase The City Council would appoint an oversight committee to monitor and review the proposed storm drain capital improvements and insure that the money raised from the increased Storm Drainage Fee is spent in accordance with this resolution. The oversight committee would report its findings to the City Council at least annually. 5. Applicability of the Rate Assistance Program The City's existing Rate Assistance Program, which provides a 20% discount to qualified low- income utility customers, would apply to the Storm Drainage Fee. 6. Pay-as-you-go funding of capital improvements The storm drain capital improvements to be funded through the proposed Storm Drainage Fee increase would be paid for on a pay-as-you-go basis, without debt financing. 7. Up-front payment of Storm Drainage Fees by City oj Palo Alto In order to accelerate the construction of the proposed storm drain capital improvements, the City of Palo Alto would pre-pay in advance the Storm Drainage Fees attributable to City-owned properties for a period of twelve years, upon approval of the increased Storm Drainage Fee. 4/4/2005 Page 2 EXHIBIT "B" List Of Storm Drain Capital Improvements And Program Enhancements To Be Completed With Funding From The Proposed Fee Increase A. 1. 2. 3. 4. 5. 6. Seven proposed storm drain capital improvement projects Construct pump station at 96" storm drain outfall to San Francisquito Creek (estimated cost = $4.5 million) Install new stOml drain pipelines to increase drainage capacity on Channing and Lincoln Avenues (from ChanninglHeather to Lincoln/Alma) (estimated cost = $4.6 million) Install Southgate neighborhood storm drain system (estimated cost = $2.0 million) Extend Gailen AvenuelBibbits Drive storm drain outfall to the Adobe Storm Water Pump Station (estimated cost = $650 thousand) Connect the Clara Drive storm drains to the Matadero Storm Water Pump Station (estimated cost = $900 thousand) Construct improvements to the Matadero Storm Water Pump Station and install new storm drain pipelines to increase drainage capacity leading to the Matadero Storm Water Pump station (estimated cost = $3.0 million) 7. Install storm drainage improvements along southbound Alma Street (estimated cost = $1.5 million) A map of the proposed projects is included in this exhibit. B. Proposed funding for enhanced maintenance of the City's storm drain system 1. $500,000 budgeted annually (subject to annual adjustment for inflation) to replace and/or rehabilitate deteriorated components of the City's storm drain system, including pipelines, catch basins, and manholes. 2. $90,000 budgeted annually (subject to annual adjustment for inflation) to fund additional storm drain maintenance resources, including staff and/or contract services, to perform services including, but not limited to, storm drain cleaning, minor storm drain repairs, video inspection of storm drain pipelines, and/or curb and gutter repairs. C. Funding of innovative proj ects 1. . $125,000 budgeted annually (subject to annual adjustment for inflation) for innovative proj ects to reduce the amount of storm water runoff and environmental pollutants that enter storm drains and creeks. D. Funding of storm water quality protection activities 1. $100,000 budgeted annually (subject to annual adjustment for inflation) to pay for existing services related to storm water quality protection currently funded through the Wastewater Treatment Fund. E. Funding of additional engineering staff 1. $115,000 budgeted annually (subject to annual adjustment for inflation) for an additional staff engineer to assist with implementation of the recommended storm drain capital improvements. 4/4/2005 Page 3 The City of Palo Alto mraschk, 2004-12-1508:32:23 PRoposeo PROJECTS -MRICS (\\cc-maps~ls$\gis\aann\Personal\rnraschk.mdbJ Proposed StonnDrain Capital Improvements This map is a product of the City of Palo Alto GIS -. 3000' This document is a graphIC represariation only erbes! available sources. The City 01 Palo Alto assumes no responsibility lor any errors. 0196910 2004 City of Palo Alto Shall the monthly Storm Drainage Fee for developed residential and non- residential properties be increased to $10.00 per Equivalent Residential Unit (ERU) for a period of 12 years, subject to an annual adjustment for inflation up to a maximum of six percent per year? The storm drainage fee will be used to improve local drainage and prevent street flooding by funding: • high-priority storm drain system capacity upgrades, • drainage system repairs, • enhanced storm drain maintenance, and • storm water quality protection activities DYES D NO I "'C ~m .-0 0--(,) CG s:::: 'u w .-... == 0 o~ CO w w C/) C/) W 0:: Cl Cl « w :c I- ~ Cl ~ W OJ -- -- -.~. -_ .. -- I hereby declare under penalty of perjury that I am the record owner, or the authorized representative of the record owner, of the parcel identified as ccSitus_StreeCAddress». Date Printed Owner's Name Owner's Signature Assessor's Pa reel N umber: 111110111111111111111111111111111111111111111111111 0111111111111111111111111111111 0111111111111111111111111111111011111 ASS E S S 0 R SPA R eEL N U M B E R Owner of Record: «Assessee» «Assessee2» <<In_Care_oCName>> «Mailing_Address» «Mailing_CitLand_State» «Mailing_Zip_Code» BALLOT WILL NOT BE OPE~ED OR COUNTED UNLESS INFORMATION ABOVE IS COMPLETED ----------------------------------------------------------------------------------------------------------------------------------- DETACH THIS STUB BEFORE MAILING. DO NOT RETURN IT WITH THE BALLOT. THIS FLAP IS NOT THE BALLOT. The storm drain system is a Palo Alto utility, and the storm drainage fee is collected through monthly City utility bills. The current and proposed monthly storm drainage fee for your property is shown below. Current Fee Pro~osed Fee* Utility Account Information «Proposed _Fee «VAline1» «Current Fee» «V Aline2» -» «VAline3» ~---------------- * Commencing with the effective date of Council adoption, following voter approval. The fee for fiscal years 2006-2007 and beyond may be adjusted annually for inflation (at the discretion of the City Council) by the Consumer Price Index or 6%, whichever is lower. -.---.----------.--.. -.. ~-----•.• ---.--.~--<-, "-.-.. "--_ .• --"-.~---•. ----------,.-.-•.