Loading...
HomeMy WebLinkAbout2000-06-12 City Council (13)TO: City of Palo Altb City Manager’s HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE:JUNE 12, 2000 CMR: 282:00 SUBJECT:APPROVAL OF AN ORDINANCE AUTHORIZING .MAIL BALLOT FOR THE ELECTIONS;RESOLUTION ESTABLISHING PROCEDURES FOR THE PROTEST HEARING AND ELECTION RELATING TO A PROPOSED INCREASE IN THE STORM DRAINAGE FEE;AND RE SOLUTION AMENDING UTILITIES RULE AND REGULATION 25 REPORT IN BRIEF The charge currently levied for the City’s storm drainage program is considered a property- related fee under Proposition 218, which requires a public protest hearing as well as property owner approval prior to implementation of any increase. This report requests Council approval of: an ordinance which authorizes elections by mail for various Proposition 218- type elections, including the election for the proposed storm drainage fee increase, proposed to be held on September 26, 2000; a resolution establishing procedures for the protest hearing for the storm drainage fee increase, and the election; and a resolution amending Utility Rule & Regulation 25 to conform to Proposition 218. CMR: 282:00 Page 1 of 4 RECOMMENDATION Staff recommends that Council: o Adopt an ordinance authorizing mail ballot elections. Adopt a resolution establishing procedures for the protest hearing and election relative to a proposed increase in the storm drainage fee. Adopt a resolution amending Utility Rule and Regulation 25 to conform to Proposition 218. BACKGROUND As discussed in CMR 147:99, a rate increase is required to maintain and improve the City’s storm drainage system. This proposed rate increase is governed by Proposition 218. On March 3, 19.99, staffpresented a report to the Finance Committee (Committee) describing a proposal for financing the next phase of storm drainage improvements. The report discussed the current financial status of the Storm Drainage Fund, the effects of Proposition 218 on the City’s ability to raise property-related fees, and staffs proposal for storm drainage infrastructure improvements. The report included a detailed discussion of an enhanced operations and maintenance program, and work associated with San Francisquito Creek. Staff also presented a long-term financing plan to fund storm drainage needs through an increase in the storm drainage fee. Staff has since completed a compliance analysis of Proposition 218; redefined the scope of needed storm drain improvements; prepared a proposed rate structure and rate increase (CMR 222:00) to f’mance storm drain operations and the next phase of storm, drainage capital improvements; and conducted a Study Session with the City Council regarding the proposed rate increase, the issues that have been raised by the public regarding this rate increase, and the proposed public education component of the rate increase process. DISCUSSION Palo Alto is one of the first California cities statewide to present a property-related fee increase to voters for approval since the passage of Proposition 218. This process will require a property owner election, which may. be conducted by mail ballot. The Elections Code authorizes cities to conduct certain elections, required by Proposition 218, by mail. The attached ordinance would authorize the City Council, by resolution, to conduct such elections by mail, on a case-by-case basis. The procedures for this storm fee increase election include voting by mail ballot. In accordance with Proposition 218, the City will mail a notice to all owners of property subject to the storm drain fee, informing them of a public protest hearing to be held on August 7, 2000. At that time, property owners will have the right to file a written protest opposing the proposed storm drainage fee increase. If a majority of property owners file a written protest, no further proceedings may occur. If a majority protest does not occur, the procedures require the City Council to call an election, which is proposed to take place on September 26, 2000. The ballot procedures clarify potential voter issues such as how to handle multiple owners of a single property, who can vote, the mechanics of voting, and the establishment of the City Manager as the designee to vote for City-owned CMR: 282:00 Page 2 of 4 parcels. Based on Proposition 218 and the Elections Code, the City is allowed to estab!ish such procedures to provide for clarity should issues arise as part of the voting process. (Attachment A). In compliance with Proposition 218, the City Attorney’s Office has developed comprehensive procedures to govern the protest hearing and mail ballot election required for seeking property owner approval of a storm drainage fee increase, The procedures define the election process by addressing specific provisions of Proposition 218 and by incorporating issues that might occur during the election (issues related to voter eligibility, the number of votes per parcel, etc.). Voters can obtain copies of the election process procedure at the Revenue Collections counter in the Civic Center, as well as at community library counters throughout the City. The procedures will be published in the newspaper and will also be accessible through the City’s Internet web site at: http://www.city.palo-alto.ca.us/stormdrain. These procedures are included in Attachment B and require approval by the City Council by adoption of the attached resolution. In addition, Utility Rule and Regulation 25, which governs the storm drainage fees., must be amended to bring it into conformity with Proposition 218. (Attachment C). ’RESOURCE IMPACT If property owners approve the fee increase, Palo Alto single-family and residential property owners can initially expect to pay an average of an additional $4.75 monthly over the current monthly fee of $4.25 to fund storm drain improvements and maintenance; the exact increase would be based on lot size. With the proposed increase, the cost of storm drainage funding (6 percent) is a very small percentage of the property-owners total monthly bill. At the current funding level the Storm Drain Fund continues to experience financial fatigue, placing an extreme burden on the general fund through continued subsidies. Presently, the annual cost to the general fund is approximately $500,000 ,with an anticipated increase to approximately $800,000 annually. Without a resolution to the storm drain funding issue, necessary capital repairs cannot be undertaken. In addition, should voters not approve the tax increase the General Fund will have to be redistributed to include major storm drain cost at the expense of other General Fund priority projects. POLICY IMPLICATIONS Approval of staffs recommendation 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 drain system consistent with 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." -- CMR: 282:00 Page 3 of 4 TIMELINE June 12 June 16 Approval of Resolution adopting procedures for the protest hearin~ and the election, and.Resolution Amending Utility Rule & Regulation 25. ¯Notices of protest hearingmailed August 7 Protest hearing for proposed storm drainage fee increase September 26 Storm drainage fee election 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. ATTACHMENTS Attachment A: Ordinance Authorizing Mail Ballot Elections. Attachment B: Resolution Establishing Procedures for the Storm Drainage Fee Protest Hearing and Election. Exhibit A:Procedures for the Conduct of a Protest Hearing and Election Relating to a Proposed Storm Drain Utility Fee Increase Attachment C: ¯ Resolution Amending Utility Rule and Regulation 25. Associated Attachments CMR 147:99 CMR 222:00 CMR 409:99 CMR 191:98 CMR 227:99 PREPARED BY: Joyce White, Senior Financial Analyst DEPARTMENT HEAD: CITY MANAGER APPROVAL: Dirdctor, Administrative Services E~IL~RRISON Assistant City Manager .CMR: 282:00 Page 4 of 4 ATTACHMENT A ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADDING SECTION 2.40.015 TO CHAPTER 2.40 (MUNICIPAL ELECTIONS) OF THE PALO ALTO MUNICIPAL CODE TO AUTHORIZE THE USE OF MAIL BALLOT ELECTIONS SECTION i. ORDAIN as follgws: The council of the City of Palo Alto does I.The California Elections Code provides that any election or assessment ballot proceeding required or authorized by Article XIII C or XIII D of the California Constitution may be conducted wholly by mail. 2.In accordance with Section 4000 of the California ElectionslCode, City Council approval is required to authorize the use of mail ballots for such an election. 3.Section 4 of Article III of the Charter of the City of Palo Alto provides that the council may by ordinance determine the manner of holding elections. 4.The City Council finds that mail ballot elections held elsewhere inthe State have been shown to achieve higher voter turn out and also to be less expensive than the more traditional means of voting, and that authorizing the use of mail ballot elections for proceedings pursuant to Article XIII C or XIII D of the California Constitution is, therefore, in the public interest. SECTION 2..Section 2.40.015 is hereby added to Chapter 2.40 (Municipal Elections) of the Palo Alto Municipal Code to read as follows: Mail Ballot Elections. (a)The City Council is authorized to conduct elections wholly by mail ballot as described in subsection (b) of this section. The City Council shall determine whether an election will be conducted by mail at the time the election is called. Actions of the City Council pursuant to this section shall be set forth in a resolution approved at a regular or specia! meeting of the City Council. (b)The following items may be the subject of a mail ballot election: (i) Any election to approve a special tax as required or authorized by Article XIII C of the California Constitution. 000605 cl 0032314 (2)Any election to approve a property-related fee or charge as required or authorized by Article XIII D of the California Constitution. (3)Any assessment ballot proceeding required or authorized by Article XIII D of the California Constitution; provided, however, that such a proceeding shall be denominated an "assessment ballot proceeding" rather than an election. (c)Elections authorized by this section shall not occur on the same date as a statewide direct primary election or statewide general election. (d)Elections authorized by this section shall be deemed to.be special elections within the meaning of Section 3 of Article III of the Charter of the City of Palo Alto and shall be conducted in accordance with special provisions as may be adopted by resolution of the City Council with respect to assessment ballot proceedings and elections for property-related fees and charges, and, with respect to elections on taxes, in accordance with the provisions for mail ballot elections set forth in Elections Code sections 4100 and following, as now exist or may hereafter be amended, and in accordance with the provisions of this chapter. SECTION 3. This is not a project for purposes of the California Environmental Quality Act (CEQA). // // // // // // // // // // // // 000605 cl 0032314 SECT%ON 4. This ordinance shall be effective thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: on thee ~ City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Administrative Services 000605 c10032314 ATTACHMENT B RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ESTABLISHING PROCEDURES FOR THE CONDUCT OF A PROTEST HEARING AND ELECTION RELATING TO A PROPOSED STORM DRAIN UTILITY FEE INCREASE WHEREAS, Proposition 218 was adopted on November 6, 1996, adding Articles XIIIC and XIIID to the California Constitution; and WHEREAS, the City Council is considering a proposal to increase the storm drain utility fee; and WHEREAS, Article XIIID of the California Constitution imposes certain procedural and substantive requirements relating to property-related fees and charges (as therein defined) but does not set forth all of the procedures necessary to conduct a protest hearing and election, as required by Article XIIID for consideration of the storm drain utility fee; and WHEREAS, in order to conduct a fair and accurate protest hearing and election, the City Council finds it necessary and appropriate to adopt local procedures; NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION .I. The Council hereby approves the "Procedures For The Conduct Of A Protest Hearing And Election Relating To A Proposed Storm Drain Utilit9 Fee Increase," as set forth in Exhibit "A", attached hereto and incorporated herein by reference. SECTION 2. The Council hereby declares, its intent in adopting this resolution, to adopt procedures that are consistent, and in compliance with, Article XIIID of the California Constitution and with the Proposition 218 Omnibus Implementation Act (Government Code sections 53750 et seq.). // // // // // 000519 ¢1 0032310 SECTION 3.The Council finds that this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15273 (Rates, Tolls, Fares and Charges) of the CEQA Guidelines.. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst City Attorney Mayor CitY Manager Director of Public Works Director of Administrative Services 000519 el 0032310 2 EXHIBIT "A" PROCEDURES FOR THE CONDUCT OF A PROTEST HEARING AND ELECTION RELATING TO A PROPOSED STORM DRAIN UTILITY FEE INCREASE The following procedures have been adopted by the City Council of the City of Palo Alto for the purpose of conducting all proceedings required by Article XIIID of the California Constitution for consideration of a proposed storm drain utility fee increase. Where no specific procedures are imposed by Article XIIID, or the Proposition 218 Omnibus Implementation Act (Chapt. 28, 1997 stats.), these orocedures shall apply. TABLE OF CONTENTS B. C. D. E. F. Calculation of the fee Notice of the fee increase Eligibility to protest and vote Conduct of the public hearing Conduct of the election Conduct of post-election proceedings .Page 1 Pages 1 Pages 1-3 Pages 4-5 Pages 6-9 Pages 9 000602 cl 0032353 i i Calculation of the fee and proposed increase: Storm~’~rainage fees shall be calculated in accordance with Utili?_ Rate Schedule D-I and with Utilities Rule and Regulation 25. The following guidelines shall apply to giving notice of the fee increase, as required by Article XIIID, Section 6, of the California Constitution~ The record owner(s) of each parcel to which the increase is proposed to apply shall be determined from the last equalized secured property tax assessment roll; however, the City may use more recent ownership information obtained from the County Recorder than the last assessment roll. If the property tax roll indicates more than one owner, all owners (each owner) shall receive notice at the address shown in the property tax roll. Only property owners shall receive notice. The notice shall be sent by first class mail, at least forty-five (45) days prior to the date set for the public hearing on the fee increase. .3.The form of the notice of hearing is on file with the City Clerk. The notice provided by these procedures,in accordance with Articie XIIID,~ section 6 of the California Constitution, shall supersede and bein .lieu of notice required by any other statu~es tolevy or increase this fee. The City Clerk, or the delegate of the City Clerk, may certify the proper mailing of notices by an affidavit, which shall constitute conclusive proof of mailing in the absence of fraud. Failure of any person to receive notice shall not invalidate the proceedings. The following guidelines shall apply eligibility to file a protest and to vote: to determining The property owner(s) of parcels subject to the proposed fee increaseshall be entitled to a single protest and vote for each parcel. The last assessment 000602 cl 0032353 1 , roll of the Santa Clara County Recorder is presumptive evidence of ownership of the land for voting.purposes; however, the City may use more recent ownership information obtained from the County Recorder than the last assessment .roll, in which case, the more recent information, which shall be included in the master list, described in Section D 1 of these procedures, is presumptive evidence of ownership of the land for voting purposes, when a parcel is held as community property or in joint tenancy or as a tenancy in common, any spouse or joint tenant or t@nant in common shall be presumed to have authority to file a protest or cast a vote on behalf of such parcel. If the owner(s) of the property desire to designate a particular owner as the person authorized to file a protest or cast the vote for such parcel, they may file with the City Clerk, at any time prior to the commencement of the public hearing or the date of the election, as the case may be, a written authorization of such designation, signed by all the owners of record, and acknowledged in the manner that deeds~ of real property are required to be acknowledged to entitle such deeds to be recorded in.the Santa Clara County Recorder’s Office. Executors, administrators, and guardians may sign the protest and/or ballot provided for in these procedures on behalf of the estate represented by them. If such representatives are shown on the latest assessment roll as paying taxes and assessments ~on behalf of the property owner(s), that fact shall establish the right of such representative(s) to sign the protest and/or ballot. If such representatives are not shown on the latest assessment roll, the representatives may file with the City Clerk, at any: time prior to the commencement of the public hearing, or the date of the election, as the case may be, certified copies of the written documentation establishing the legal representation. If more than one representative is shown on the latest assessment roll as paying taxes and assessments on behalf of the property owner(s), the right to sign the protest or ballot for the property shall be determined in the manner provided in subsection C 2 with respect to co-owners. The protest and/or ballot of any public or quasi- public corporation, private corporation, or 000602 cl 0032353 2 o unincorporated association may be signed by any person so authorized in writing by the board of directors or trustees or other managing body thereof. Such-Written authorization, attested by its seal and duly acknowledged, may be filed with the City Clerk prior to commencement of the ~ublic hearing or prior to the date of the election, as the case may be. The owner of any parcel to which the fee increase is proposed to apply, appearing on the assessment roll, which has been assessed in the wrong name or to unknown owners, or which has passed from the owner appearing as Such on the last equalized assessment roll since the same was made, may sign the protest and/or ballot for such parcel by filing with the City Clerk, at any time prior to the commencement of the public hearing, or prior to the date of the election, as the case may be, a duly acknowledged proxy from such former owner, or evidence of his or her ownership by a conveyance duly acknowledged showing the title to be vested in the person claiming the right to sign the protest and/or ballot, accompanied by a certificate of a competent searcher of titles which certifies that a search of the official records of the county since the date of the conveyance discloses no conveyance or transfer out from the grantee or transferee named in the conveyance. The City Manager is designated as the voting representative with respect to City-owned property.. If no documentation relating to the voting authority for a parcel is filed with the City Clerk prior to the commencement of the public hearing, or prior to the date of the election, as the case may be, as provided for in this section C,.the ownership information shown in the latest assessment roll or such newer information as the City may have obtained from the County Recorder shall be conclusive evidence of ownership for protest and/or voting purposes, and the owner or representative who votes on behalf of the parcel shall be presumed to be legally authorized to do so. In any case where the documentation provided to the City Clerk in accordance with this section C is ambiguous or unclear, the City Attorney shall determine whether the documentation is adequate for the purpose provided. 000602 ¢1 0032353 ~The following guidelines shall [apply to the conduct of the public hearing: ¯ The Director of Public Works shall prepare a written report (also referred to as the "master list") for the City Council, which shall contain a list of all parcels to which the fee increase is proposed to apply, and the amount of the proposed fee increase for each parcel. The proposed fee increase shall include the proposed initial increase plus any proposed inflation adjustment. o Only written protests that are legibly signed by an eligible property owner (refer to Section C regarding eligibility), that identify the parcel for which the protest is made, and that state the grounds for the protest will be considered; provided, that the Council may waive any irregularities in the form or content of any written protest if the protest is in substantial compliance with these procedures. The City Clerk shall endorse on each written protest the date it is filed with the C±ty Clerk, and shall show whether the protest was filed prior to the close of the public testimony portion of the public hearing. No protest received after the close of. the public testimony portion of the public hearing shall be counted in determining the amount of protest, but the Council may, in its discretion, consider such protests in making its decision. Written protests may be withdrawn in writing at any time before the conclusion of the public testimony portion of the public hearing; All written protests shall be considered public records. At the time and place fixed for the hearing, or at any time to which the hearing is adjourned, the Council shall: (i)Hear all persons interested in the matter of the proposed fee increase; (ii)Hear all objections,protests or other written communications from any owner of property subject to the proposed fee increase; and (iii)Take and receive oral and documentary evidence pertaining to the proposed fee increase. 000602 cl 0032353 4 The hearing may be continued from time to time, as tbe~ Council determines necessary to complete its consideration of the proposed fee increase. If the Council determines, at the close of the public testimony portion of the public hearing, that written protests have been received from property owners representing a majority of the parcels subject to the proposed fee increase, the Mayor shall declare the proceedings closed; and the fee increase shall not be approved. If the Council determines, at the close of the public testimony portion of the public hearing, that written protests have not been received from property owners representing a majority of the parcels subject to the proposed fee increase, the Council may: i)Remedy and correct any clerical error or informality in the report containing the proposed fee increase for each property; correct any minor defects in the proceedings; and correspondingly, revise and correct any of the acts or determinations of any City officers or employees, as contained therein, provided, that any such modification or correction shall not result in an increase in the fee proposed for any individual parcel, which is greater than the amount shown in the notice mailed to the property owner pursuant to Section B and subsection D 1 of these Procedures; (ii)Confirm said report, as may" have been amended in accordance with subparagraph (i) of this subsection D 5, and each of the proposed fee increases therein; (iii)Adopt a resolution calling for an election. The resolution .calling for an election shall state that .the election is being held for the purpose of submitting the fee increase to a vote of the property owners of parcels subject to the proposed fee increase. o The date of the election shall be no less than forty- five (45) days after adoption of the resolution. 000602 el 0032353 5 The following guidelines shall apply .to the conduct of the election. The City Clerk shall be responsible for the conduct of the election governed by these procedures. The City Clerk may designate one or more persons as electi-on officials, to assist the City Clerk in canvassing the ballots. The election shall be by mailed ballot. The property owner(s) of parcels subject to the proposed fee increase shall have one vote for each parcel. The determination of eligibility for voting shall be in accordance with section C of these procedures. The City Clerk shall use the master list of each parcel for which the fee increase is proposed to apply, the eligible voter for each parcel, and the voter’s address. The master list shall be the list prepared by the Director of Public Works in accordance with subsection D I, as confirmed by the City Council in accordance with subsection D 5(ii) and as may be updated by the City Clerk in accordance with information received pursuant to Section C, of these procedures. o The ballot and election materials, described in subsections D ii and D 12, along with a stamped, self- addressed return envelope, shall be mailed to the property owner of record of each parcel subject to the proposed fee increase, or to such other eligible voter, as determined in accordance with section C, by depositing them in the U.S. Mail, first class, postage prepaid, on or before the twentieth (20th) day prior to the date set for the election. The ballot shall be nonforwardable. Any ballot that is returned to the City Clerk shall not be forwarded by the City Clerk. The City Clerk, or the delegate of the City Clerk, may certify the proper mailing of ballots by an affidavit, which shall constitute conclusive proof of mailing in the absence of fraud. Whenever the City Clerk is required to mail a ballot to any address outside the territorial limits of the United States, the City Clerk shall mail the ballot airmail and, if under any law of the United States 000602 el 0032353 6 official election ballots may be mailed without the payment of postage, the City Clerk shall so mail the ballot. The city Clerk shall send a second ballot to any qualified voter upon receipt of a statement under penalty of perjury that the voter has failed to receive, lost, or destroyed his or her original ballot. The City Clerk shall keep a record of each ballot sent to and received from a voter and shall verify, prior to counting any duplicate ballot, that the voter, has not attempted to vote twice, or that another person has not attempted to vote on behalf of the particular parcel. If it is determined that a voter has attempted to vote twice, or that more than one vote has been attempted for the same parcel, both ballots shall be void. All ballots shall be voted on or before the day of the election. After marking the ballot, the voter shall either: (a) return the ballot by mail or (b) return the ballot in person to the City Clerk. i0.Upon receipt of the ballot in its envelope, the City Clerk shall compare the property identification and name on the envelope containing the ballot and the signature of the voter certifying that he or she is authorized to sign the envelope on behalf of that property, with the master list of eligible voters, described in subsection E 3. If the City Clerk determines that- the ballot in its envelope has been returned by a person not on the master list, the ballot shall be rejected and shall not be counted. The cause of the rejection shall be written on the face of the identification envelope. The City Clerk will not accept a ballot (i) (ii) (iii) that is a photocopy; enclosed in an envelope that does not contain an original signature; that lacks an identifiable "yes" or "no" vote. No ballot shall be removed .from its identification envelope until the time for processing. No ballot shall be rejected for cause after the envelope has been opened. 000602 cl 0032353 ii. 12. All ballots shall be received by the City Clerk no later than 8:00 p.m. on election day. Postmarks do not count. The form of the ballot shall be as follows: (i)The ballot shall contain the ballot measure: Shall the proposed stormdrain utility fee increase, including the inflation adjustment index, be approved? YES NO following 13. 14. (ii)The ballot may. be preprinted in a manner so as to allow machine tabulation of the votes. (iii)Because this is a property owner election, all ballots will be in English. The election materials shall include all supplies necessary for the use and return of the ballot. The election materials may, but need not, contain a voter information pamphlet. The identification envelope for return of the ballot shall contain the following: (i)The name of the property owner. (ii)The address of the property owner. (iii)A declaration, under penalty Of perjury, stating that the voter is the owner of record or the. authorized representative of the owner(s) entitled to vote and is the person whose name appears on the identification envelope. (iv)Space for the voter to print his or her name and for the signature.of the voter. (v)The date of signing and place of execution of the declaration described in paragraph (iii). 000602 el 0032353 ~8 vi)A notice that the envelope contains arI official ballot and is to be opened on!y hy the appropriate election officials. 15.The vote of each voting property owner shall be secret; and no voter shall place any mark upon a ballot that will make that ballot identifiable. 16.To the extent not covered by these procedures, -the voting shall be consistent with the provisions of the Elections Code, insofar as the City Clerk determines such provisions are applicable to these proceedings and are not inconsistent with Article XIID of the California Constitution. The followinq guidelines shall apply to the conduct of post-election proceedings: Not later than 30 days after the election, ~the City Clerk shall transmit to the Council a written notification as to the results of the election. o If the election results indicate that a majority of the voters voting upon the fee increase voted in favor of the increase, the City Council may adopt the fee increase by resolution .amending Utility Rate Schedule D-I. 000602 cl 0032353 ATTACHMENT C RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING ANDADOPTING AN AMENDMENT TO RULE AND REGULATION 25 GOVERNING STORM DRAINAGE FEES WHEREAS, pursuant to Chapter 12.20 of the Palo Alto Municipal Code the City Council may by resolution adopt rules and regulations governing utility services contracts and the fees and charges therefor; and WHEREAS, the City Council has determined to revise the existing Rule and Regulation 25 pertaining to storm drainage fees; NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION i. Pursuant to Section 12.20.010 of the Palo Alt0 Municipal Code, the Rule and Regulation 25, as amended, governing storm drainage~ fees, attached hereto and incorporated herein, is hereby approved and adopted~ // // // // // // // // // // // // // 000601 cl 0032349 SECTION 2. The Council finds that this is not ~ project as defined by the California Environmental Quality Act ("CEQA"). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Administrative Services Director of Utilities Director of Public Works 000601 cl 0032349 2 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 A. GENERAL: For the purpose of CPAU Rate Schedule D-1 and this Rule and Regulation, the following words and terms shall be defined as follows, unless the context in which they are used clearly indicates otherwise. The definitions of words and terms set forth in Titles 12 and 13 of the Palo Alto Municipal Code shall also apply herein to the extent that they are not inconsistent herewith: "Developed Parcel" shall mean any lot or parcel of land altered from its natural state by the construction, creation or addition of impervious area, except public streets and highways. "Equivalent Residential Unit (ERU)" shall mean the basic unit for the computation of storm drainage fees. The ERU:s for all parcels other than single-family residential properties shall be computed to the nearest 1/10 ERU using the following formula: Number of ERU = Impervious Area (Sq. Ft.) 2,500 Sq. Ft. The ERU’s for single-family residential properties shall be computed as set forth in CPAU Rate Schedule D-1. "Impervious Area" shall mean any part of any developed parcel of land that has been modified by the action of persons to reduce the land’s natural ability to absorb and hold rainfall. This includes any hard surface area which either prevents or retards the entry of water into the soil mantle as it entered under natural conditions pre-existent to development, and/or a hard surface area which causes water to run off the surface in greater quantities or at an increased rate of flow from the flow present under natural conditions pre-existent to development. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 6-13-00 Supersedes Sheet No / dated 7-1-98 Sheet No. -1 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 By way of example, common impervious areas include, but are not limited to roof tops, walkways, patios, driveways, parking lots or storage areas, concrete or asphalt paving, gravel roads, or any cleared, graded, paved, graveled, or compacted surface or packed earthen materials, or areas covered with structures or other surfaces which similarly impede the natural infiltration of surface water into the soil mantle. = = "Non-Single-Family Residential Property" shall include all developed parcels zoned or used for multi-family, commercial, industrial, retail, governmental, or other non-single family residential purposes and shall include all developed parcels in the City of Palo Alto not defined as single-family residential property herein. "Parcel" shall mean the smallest separately segregated lot, unit or plot of land having an identified owner, boundaries, and surface area which is documented for property tax purposes and given a tax lot number by the Santa Clara County Assessor. "Primary CPAU Account" shall mean that CPAU account, as determined below, that will be assessed the storm drainage fee for a given developed parcel: (A) (B) If there is only one CPAU account associated with a developed parcel, then that account is the Primary CPAU Account. If thereis more than one CPAU account associated with a developed parcel, then the Primary CPAU account shall be the account listed below, in order of preference: (1)The CPAU account designated as the "house account" or, if none or more than one, then; CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIESEffective 6-13-00 Supersedes Sheet No 2 dated 7-1-98 Sheet No. -2 SPECIAL STORM AND SURFACE WATEI~ "~ DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 o So (2)The CPAU account in the name of the owner of the parcel~ or if none, then; (3)The CPAU account(s) in the name of the occupier(s) of the parcel. ~ (4)If more than one account, then the CPAU account that includes the most CPAU services. "Single-Family Residential Property" shall include all developed parcels with either one or two single-family detached housing units or one two-unit attached dwelling structure commonly known as a "duplex." "Storm and Surface Water Control Facilities" shall mean all man-made structures or natural water course facility improvements, developments, properties or interest therein, made, constructed or acquired for the conveyance of storm or surface water runoff for the purpose of improving the quality of, controlling, or protecting life or property from any storm, flood, or surplus waters. "Storm Drainage Facilities" shall mean the storm and surface water drainage systems comprised of storm and surface water control facilities and any other natural features which store, control, treat and/or convey storm . and surface water. Storm Drainage Facilities shall include all natural and man-made elements used to convey storm water from the first point of impact with the surface of the earth to the suitable receiving body of water or location internal or external to the boundaries of the CiW of Palo Alto. Such facilities include all pipes, appurtenant features, culverts, streets, curbs, gutters, pumping stations, channels, streams, ditches, wetlands, detention/retention basins, ponds, and other storm water conveyance and CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-13-00 Supersedes Sheet No 3 dated 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. -3 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 11. treatment facilities whether public or private. See CPAU Rule and Regulation No. 8 "Access to Premises." "Storm and Surface Water" shall mean water occurring on the surface of the ¯ land, from natural causes such as rainfall, whether falling or flowing onto the land in question. "Undeveloped Parcel" shall mean any parcel which has not been altered from its natural state by the construction, creation, or addition of impervious area. B. STORM DRAINAGE FEES: There is hereby imposed on each and every developed parcel of land within the City of Pal. Alto, and the owners and occupiers thereof, jointly and severally, a storm drainage fee. This fee is deemed reasonable and is necessary to pay for: (A) Improving the quality of storm and surface water; (B)The operation, maintenance, improvement and replacement of the existing City storm drainage facilities; and (C) The operation, maintenance, and replacement of future such facilities. It is the intent of the City of Pal. Alto, and the City has calculated the storm drainage fee in such a.manner, that the amount of the fee imposed upon any parcel shall not exceed the proportional cost of the service attributable to the parcel. It is the further intent of the City that revenues derived from the fee shall not exceed the funds required to provide the property-related services described in this Rule and Regulation 25, and that revenues derived from the CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 6-13-00 Supersedes Sheet No 4 dated 7-1-98 Sheet No. -4 SPECIAL STORM AND SURFACE WATER ¯ DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 2~ J fee shall not be used for any purpose other than those described in this Rule and Regulation 25. All of the proceeds of these fees are deemed to’ be in payment for use of City storm dCainage facilities by the developed parcel on, and with respect to, which the fee is imposed, and the owners and/or occupiers thereof. The storm drainage fee shall be payable monthly and shall be paid to CPAU, as billed by CPAU, for each and every developed parcel in the City by the owner or occupier responsible for the Primary CPAU account for other CPAU services for the subject parcel, unless otherwis~ agreed in writing by CPAU. The method of billing described in this Rule and Regulation 25 has been designed for administrative efficiency. However, because the storm drainage fee is a "property-related fee" as defined by Article XIIID, Section 6 of the California Constitution, a property owner may in writing request that the storm drainage fee for a parcel owned by the property owner be billed directly to the owner, notwithstanding the typical method of billing. Because the storm drainage fee is a "property-related fee," the parcel owner shall be responsible to pay all unpaid or delinquent storm drainage fees. For administrative efficiency, the storm drainage fee for condominium and townhouse-style developments is typically billed to the CPAU account of the Homeowners’ Association. o If a developed parcel does not have a CPAU account on the effective date of this Rule and Regulation, a new account shall be established for that parcel and billed to the owner as shown on the latest County Assessor’s property tax rolls until such time as a Primary CPAU account is established for other CPAU services. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIESEffective 6-13-00 Supersedes Sheet No 5 dated 7-1-98 Sheet No. -5 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 When an undeveloped parcel is developed, a new account shall be established and billed to the owner of that parcel as shown on the latest property tax rolls of the Santa Clara County Assessor until such time as a Primary CPAU account is established for other CPAU services. 6.BASIS FOR CALCULATION (B) (c) (D) The storm drainage fee shall be based on the relative contribution of storm and surface water from a given developed parcel to City storm drainage facilities. The relative contribution of storm and surface water from each developed parcel shall be based on the amount of impervious area on that parcel and shall determine that parcel’s storm drainage fee. For administrative efficiency, the impervious area of condominium and townhouse-style developments is typically calculated for the entire development rather than on a per-parcel basis. The extent of impervious area will be established to the nearest square foot by any of the following methods: Computation of the impervious area using on-site measurements of the apparent outside boundaries of the impervious area in or on such developed parcels made by CPAU or on its behalf; or (2)Computation of the impervious area using the dimensions of the impervious area in or on the developed parcels which are set forth and contained in the records of the office of the County Assessor. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 6-13-00 Supersedes Sheet No 6 dated 7-1-98 Sheet No. -6 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 o (3)Estimation, calculation and computation of the impervious area using aerial photography or photogrammetry, or using the information and data from on-site measurements of like or similar property or features or as contained in City or County records. (4)Computation of the impervious area using information submitted by building permit Applicants on forms provided by the City, subject to review and correction by the City. CALCULATION OF MONTHLY FEE o Monthly fees for all developed parcels shall be computed in accordance with the following formula: Number of ERU’s x Rate per ERU as set forth in CPAU Rate Schedule D-1. APPLICATION (A) . (B) Developed Parcels: Storm drainage fees shall apply to all developed parcels within the City, including those classified as non-profit or tax- exempt for ad valorem tax purposes. The fees shall apply to all government properties, to the full extent permitted by the constitutions of the United States and the State of California, including developed parcels of the City of Palo Alto, City-owned buildings and parks, but excluding public streets and highways. Undeveloped Parcels: Storm drainage fees shall not be levied against undeveloped parcels that have not been altered from their natural state as defined herein under "Impervious Areas." CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-13-00 Supersedes Sheet No 7 dated 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. -7 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 (c)Proportional Reduction of Fees: Developed parcels that have their own maintained storm drainage facility or facilities, and which do not utilize City facilities or which make no substantial contribution of storm or surface water to the City’s storm drainage facilities shall be subject to the storm drainage fee only to the extent they do contribute storm and surface water to City storm drainage facilities or use storm and surface water treatment services of the City. Developed parcels that have a portion of their impervious area within City of Palo Alto shall be charged only for that portion of impervious area which is in the City of Palo Alto. Developed parcels that drain totally or partially into an area Outside the City of Palo Alto shall be charged only for that portion of impervious area that causes drainage within the City of Palo Alto. The City of Palo Alto has calculated the storm drainage fee for each parcel based on information available to the Public Works Department as to the amount of impervious area for the parcel, as well as other relevant information regarding the parcel. However, it is the intent of the City of Palo Alto that no fee shall exceed the proportional cost of services attributable to the parcel. Therefore, a parcel owner has the right, through Administrative Review, to request a proportional reduction in the storm drainage fee if the owner believes that the parcel contributes less water to the City’s storm drainage facilities or uses fewer storm or surface water treatment services, notwithstanding the amount of the parcel’s impervious area. ADMINISTRATIVE REVIEW (A)Any person who owns or pays the storm drainage fee for a developed parcel and who disputes the amount of any storm drainage fee for the parcel, or who requests a deferred payment schedule therefor may request a revision or modification of such fee from the City Engineer. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIESEffective 6-13,00 Supersedes Sheet No 8 dated 7-1-98 Sheet No.-8 SPECIAL STORM AND SURFACE WATE] "~ DRAINAGE UTILITY REGULATIONS RUISE AND REGULATION 25 (B) (c) The person seeking Administrative Review shall make such request in writing pursuant to Rule and Regulation 11 Section F. The request for Administrative Review must be signed by the property owner. The City Engineer shall conduct the review. The City Engineer shall review the request and all data and documentation deemed by the City Engineer to be relevant to the request, and shall make a written determination as to whether the fee for the parcel exceeds the proportional cost of the service attributable to the parcel. If the City Engineer determines that the fee is proportional to the cost of service, no adjustment shall be made. If the City Engineer determines that the fee exceeds the proportional cost of service, the fee shall be adjusted accordingly. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO Effective 6-13-00 UTILITIES Supersedes Sheet No 9 dated 7-1-98 Sheet No. -9