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HomeMy WebLinkAboutStaff Report 7919 City of Palo Alto (ID # 7919) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/3/2017 City of Palo Alto Page 1 Summary Title: Authorize Staff to Vote “Yes” on the Storm Water Management Fee Ballots Title: Authorization for the City Manager to Vote on Storm Water Management Fee Ballots Received for Parcels Owned by the City of Palo Alto From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council direct the City Manager to vote ”Yes” on the City of Palo Alto’s Storm Water Management Fee for the approximately 85 ballots received for City-owned parcels. Background On October 24, 2016, the Palo Alto City Council adopted Resolution 9635, which called a Mail Ballot Election for Tuesday, April 11, 2017, to submit the proposed Storm Water Management Fee to property owners. If approved, this Fee would replace the existing Storm Drainage Fee, effective June 1, 2017. A “Description of the Proposed Storm Water Management Fee” is attached (Attachment A). Staff mailed approximately 20,000 ballots to property owners in February. Property owners of parcels subject to the Fee may cast a ballot for or against the Fee by returning their marked ballot(s) to the City Clerk’s Office by 5:30pm on Tuesday, April 11, 2017. The City received approximately 85 ballots for City-owned parcels. Policy Implication Voting in favor of the proposed Storm Water Management Fee is consistent with City Council’s direction to submit the proposed Fee to property owners via a Mail Ballot Election (Resolution 9635), and with the Procedures for the Conduct of Protest Hearing and Mail Ballot Election, (Resolution 9624). City of Palo Alto Page 2 Environmental Review Council direction to cast Ballots for City-owned parcels in favor of the proposed Palo Alto Storm Water Mangement Fee does not meet the definition of a project with for the California Environmental Quality Act (CEQA) under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5). The level of future CEQA review for projects developed with Fee funds will depend on the scope of the storm drain capital improvement projects that may be funded by the updated Storm Water Management Fee, if approved. Attachments:  Attachment A - Atty approved SWMF description 2 7 17 1 DESCRIPTION OF THE PROPOSED STORM WATER MANAGEMENT FEE  A. Overview  The proposed Storm Water Management Fee of $13.65 per ERU (Equivalent Residential Unit) per month  would replace the existing Storm Drainage Fee of $13.03 per ERU per month.   The Storm Water  Management Fee would have two components:  1)A Base Component of $7.48 per ERU per month (adjusted annually for inflation as discussed later in this document), which would continue until terminated by the City Council.  2)A Projects and Infrastructure Component of $6.17 per ERU per month (adjusted annually for inflation as discussed later in this document), which would end after 15 years, on June 1, 2032, unless extended by the voters. If approved, the Storm Water Management Fee would go into effect June 1, 2017.   Proceeds of the  Storm Water Management Fee would be available to the City exclusively to pay for:  Improving the quality of storm and surface water; The operation, maintenance, improvement and replacement of existing City storm drainage facilities; and The operation, maintenance, and replacement of future such facilities. 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, bio‐retention/infiltration basins and planters, and permeable pavement.  B. Background  The Palo Alto City Council established the Storm Drainage Fund and an associated Storm Drainage Fee in  1989 as an independent means to fund municipal storm drain capital improvements, maintenance, and  storm water quality protections programs.  The fee was last authorized in a 2005 property owner  election, and most of the current fee will sunset in June 2017.  Revenue generated by the fee since 2005  has funded seven high‐priority storm drain capital improvement projects as well as ongoing operational  costs.  The new Storm Water Management Fee was recommended to the City Council by an appointed  Blue Ribbon Storm Drain Committee of residents.   Adoption of the proposed new fee will enable the  implementation of additional drainage improvements throughout the City, including compliance with  state permit requirements mandating green storm water infrastructure.  Green storm water  infrastructure reduces runoff, improves storm water quality, and restores the natural water cycle by  collecting and retaining, and/or treating runoff rather than discharging it directly to storm drains.  C. Budget  1. Base Component  Each Year, the Base Component is anticipated to generate approximately $3.8 million (to be adjusted for  inflation in future years).  The Base Component has been calculated based on the City’s anticipated  ongoing costs for the engineering, maintenance, storm water quality protection, operation and  administration of the City’s storm water system, including regulatory permit compliance.  Floodplain Management  $    101,000  Engineering $    255,000  Storm Water Quality Protection  $ 1,135,000  Storm Drain System Maintenance $ 1,293,000  Emergency Response $    119,000  Administrative Support $ 1,112,000  SUBTOTAL (partially funded by other revenue) $ 4,015,000  Attachment A    2  2. Projects and Infrastructure Component  Each Year, the Projects and Infrastructure Component is anticipated to generate approximately $3.1  million (to be adjusted for inflation in future years).  The Projects and Infrastructure Component has  been calculated based on anticipated 15‐year costs for the Storm Drain Capital Improvement Program  (which includes both major capacity upgrade projects and capital improvement repair and  rehabilitation), Incentive Projects, and Green Storm Water Infrastructure Projects.    Storm Drain Capital Improvements  $ 1,104,000     Debt Service for Past Capital Projects*  $    947,000   Storm Drain System Repairs    $    400,000  Capital Program Engineering Support  $    177,000  Green Storm Water Infrastructure Projects $    375,000  Incentive Projects    $    125,000  SUBTOTAL      $ 3,128.000    * Debt service obligations end in Fiscal Year 2024, after which this budget is available for use for new  capital improvements.     The fifteen‐year budget for major capital improvements was based on the following projects depicted  on the attached exhibit:    a. Loma Verde Avenue (Louis Road to Sterling Canal) storm drain capacity upgrade (Midtown)   $2,200,000  b. Corporation Way/East Bayshore Road Pump Station to Adobe Creek (Baylands) $2,420,000  c. West Bayshore Road to Adobe Creek storm drain capacity upgrade (Palo Verde) $1,390,000  d. West Bayshore Road Pump Station to Adobe Creek (Palo Verde) $1,040,000  e. East Charleston Road to Adobe Creek storm drain capacity upgrade (Charleston Terrace)  $1,300,000  f. East Meadow Circle storm drain connection to Adobe Creek Pump Station (E Meadow  Circle)$360,000  g. East Meadow Drive to Adobe Creek Pump Station storm drain capacity upgrade (Ortega)  $400,000  h. Fabian Way storm drain capacity upgrade (Fabian Way) $580,000  i. Hamilton Avenue (Center Drive to Rhodes Drive) storm drain capacity upgrade (Duveneck‐St  Francis) $3,440,000  j. Louis Road (Embarcadero Road to Seale‐Wooster Canal) storm drain capacity upgrade  (Garland/Midtown) $6,910,000  k. Louis Road (Seale‐Wooster Canal to Matadero Creek) overflow storm drain (Midtown)  $1,560,000  l. Colorado Pump Station integration with Matadero Pump Station (Midtown) $430,000  m. Center Drive storm drain capacity upgrade (Crescent Park) $1,620,000    Project costs were estimated based upon the best information currently available for the purpose of  developing a reasonable and appropriate capital improvement program budget.  Final selection and  sequencing of individual projects is subject to further study and analysis, such as analysis under the  California Environmental Quality Act.     D. Annual 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 Francisco‐Oakland‐San Jose CSMA, published by the United States  Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%.       3  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.     E. Method of Collection and Calculated  As a general rule, ERU's are assigned to each parcel subject to the fee on the following basis:    Single‐Family 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 one‐tenth of an ERU.    Fees are generally collected on water bills.  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 (available  online at www.cityofpaloalto.org/sdbrc), subject to the following exemptions:      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.    F. 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 properly.  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 Council‐appointed Storm Drain Oversight Committee to perform this oversight function.   The oversight committee would report its findings to the City Council at least annually.    G. Pay‐as‐you‐go 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 pay‐as‐you‐go basis, without debt financing.    H. Additional Information  Should you have any questions about the public hearing, please call or write to:  Beth Minor, City Clerk,  P.O. Box 10250, Palo Alto, CA  94303.  Telephone:  (650) 329‐2571.    For questions about the proposed fee, please call Joe Teresi in the Public Works Engineering Services  Division at (650) 329‐2129 or visit the City’s web site at www.cityofpaloalto.org/sdbrc.  HWY 10 1 W. Bays h o r e R o a d Lom a V e r d e A v e n u e Co l o r a d o A v e n u e Middlefield Road Ore g o n E x p r e s s w a y El Camino Real Ro a d Pa g e M i l l Alma Street Emerson Street Ch a n n i n g A v e n u e Emb a r c a d e r o R o a d 2. CORPORATION WAY ($2.4 MILLION) 9. HAMILTON AVE($3.4 MILLION) 5. EAST CHARLESTON ROAD ($ 1.3 MILLION) 12. COLORADO PUMP STATION ($430 THOUSAND) 6. EAST MEADOW CIRCLE ($360 THOUSAND) 8. FABIAN WAY ($ 580 THOUSAND) 1. LOMA VERDE AVE. ($2.2 MILLION) 7. EAST MEADOW DRIVE ($400 THOUSAND) 13. CENTER DRIVE ($1.6 MILLION) 11. LOUIS ROAD (SEALE - WOOSTER CANAL) ($1.5 MILLION) 3. WEST BAYSHORE ROAD ($1.3 MILLION)10. LOUIS ROAD (EMBARCADERO ROAD - SEALE -WOOSTER) ($6.9 MILLION)4. WEST BAYSHORE ROAD PUMP STATION ($1 MILLION) This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. 0'3000' ProposedStorm DrainCapital Improvements For Storm Water Management Fee CITY O F PALO A L TO IN C O R P O RAT E D C ALIFOR N I A P a l o A l t oT h e C i t y o f A P RIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto rhada, 2016-08-17 10:22:25Ballot Measure 2016 (\\cc-maps\gis$\gis\admin\Personal\Storm.mdb)