Title
Adopt a Resolution to Appropriate $125,000 for Consulting Work to Develop a Storm Drain Master Plan and Manage the Proposed Storm Water Revenue Measure Process (Account 598-58-006-5120)
Staffreport
COUNCIL PRIORITY
• Fiscal Sustainability
SUMMARY
Additional funding is needed to develop a Storm Drain Master Plan that identifies and prioritizes the future investments needed in the storm water system and for management of the proposed revenue measure process.
RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution to appropriate $125,000 to fund consulting work to develop a Storm Drain Master Plan and manage the proposed Storm Water revenue measure.
BACKGROUND
The Clean Water Act adopted in 1972 established the basic structure for regulating the discharge of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the Clean Water Act, the US Environmental Protection Agency established the National Pollutant Discharge Elimination System (NPDES) Permit program to control discharge.
In 1993, the City established a Storm Water Fee as a funding source for San Leandro’s costs to fund activities related to stormwater pollution control, stormwater system maintenance, and improvement and repair of the infrastructure.
Unfortunately, the Storm Water Fee (of $26.33 per single family home on parcels of up to one-quarter acre) was established without an inflation factor and the net present value of $1.00 in 1993 is only $0.47 in 2023. In addition to the impact of inflation on the ability of the fee to cover the City’s cost of storm water management, the California State and Regional Water Boards continue to adopt State legislation to ensure that surface water is protected and sustainably managed for future generations. These unfunded mandates include elimination of illicit discharges and connections, new development and construction site controls, implementation of an inspection program for industrial and commercial properties, installation of trash capture devices throughout the City and significant and ongoing investment in Green Infrastructure to manage water on-site.
Since 1994, the General Fund has contributed to the Storm Water Fund in order to make it whole and as of June 30, 2023 the Storm Water Fund owed the General Fund approximately $2.5 million.
At the April 3, 2023 City Council meeting, staff provided an overview of Storm Water operations, including the status of the Storm Water Fund, and the City Council directed staff to proceed with the Proposition 218 voting process. On May 1, 2023, Council approved a $203,350 Consulting Services Agreement with HF&H for implementation of a Proposition 218 voting process.
Analysis
Additional analysis of the existing storm water system is needed, including an evaluation and prioritization of recommended improvements for overall flood protection and infrastructure investment to meet environmental mandates and adapt to climate change. A Storm Drain Master Plan document is under development to provide the comprehensive analysis necessary to ensure that the future needs of the storm drain system and compliance requirements are considered when setting rates.
The Storm Drain Master Plan will serve as the basis for determining an equitable rate structure and would be the foundation for the Storm Water Proposition 218 process. The intent of the proposed revenue measure is for the Storm Water Fund to again be self-sufficient and no longer require future General Fund contributions.
$125,000 in additional funding is needed to develop a Storm Drain Master Plan and for management of the proposed revenue measure process.
Financial Impacts
As the Storm Water Fund (Fund 598) is currently running an annual deficit, the General Fund would loan the funds to the Storm Water Fund. The Storm Water Fund would repay the General Fund assuming a revenue measure is approved in the future to make the Storm Water Fund solvent.
ATTACHMENT
Attachment A: Resolution for Appropriation of $125,000 to Account 598-58-006-5120
PREPARED BY: Cynthia Battenberg, Special Projects, Public Works Department