Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with SCI Consulting Group for Implementation of a Proposition 218 Voting Process for Enhanced Stormwater Rates for a Not to Exceed amount of $279,048; and to Approve the Appropriation of $229,048 in the Stormwater Fund
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Infrastructure
SUMMARY
City Council directed staff to proceed with a Proposition 218 voting process to update Stormwater fees from their 1993 levels. Given the legal framework of Proposition 218 and the Proposition 218 Omnibus Implementation Act, SCI Consulting Group submitted a responsive proposal demonstrating their expertise in conducting this process.
RECOMMENDATIONS
Staff recommend that the City Council adopt a resolution to approve and authorize the City Manager to execute a consulting services agreement with SCI Consulting Group for implementation of a Proposition 218 voting process for enhanced stormwater rates for a not to exceed amount of $279,048; and to approve the carryforward appropriation of $229,048 in the Stormwater Fund.
BACKGROUND
When established in 1993, the Stormwater Fund was intended to provide a funding source for San Leandro’s costs to comply with the provisions of the Stormwater Program, supporting activities related to stormwater pollution control, stormwater system maintenance, and improvement and repair of the infrastructure. Additional activities paid for by the fund and required by the National Pollutant Discharge Elimination System (NPDES) Municipal Regional Stormwater Permit (MRP) include public information/education, street sweeping, elimination of illicit discharges and connections, new development and construction site controls, and implementation of an inspection program for industrial and commercial properties.
Unfortunately, the Fund was established without an inflation factor. In the intervening years, in addition to increased labor costs, new unfunded mandates were imposed upon the Program, most notably the requirement for installation of trash capture devices throughout the City. Since 1994, there have been nine years when the General Fund was required to contribute to and maintain the Fund.
In 2024, the City conducted a similar stormwater funding Proposition 218 process that was unsuccessful. Staff is considering the lessons learned through that process and adjusting the strategy to address community outreach more directly with surveys, residential mailings and community outreach.
With this previous process in mind, staff initiated a new Request for Proposals for Stormwater Program Funding and Balloting Support on September 23, 2026. The City received three qualified proposals, and SCI Consulting Group was selected after staff review as the most responsive to the City’s request.
Analysis
It is staff’s intent that if new stormwater fees are approved, the Fund would be self-sufficient (not requiring future General Fund contributions), covering fully the operational and maintenance/repair/replacement costs of the Stormwater Program, and thereby improving the City’s overall financial sustainability.
Implementation of new stormwater fees involves a two-phased process. First, the City must hold a protest hearing to notify affected parcel owners of the proposed Stormwater Fees. If the protest is not successful, meaning less than 50% +1 of all property owners do not protest, the City may continue to phase two. Phase two requires the City to mail ballots to affected property owners which allows a “yes” or “no” vote to implement the proposed Stormwater Fees. If the City receives a majority of “yes” votes from those property owners who return the ballot, the City Council may adopt the Fee. If the City receives a majority of “no” votes, the Fee may not be adopted.
SCI Consulting Group’s proposed scope of work includes the following tasks:
• Baseline survey of residential property owners
• Gauge overall property owner support for potential Proposition 218 measure
• Research plan, questionnaire, and owner database
• Survey findings presentation (PPT)
• Proposition 218 Procedures resolution
• Notice, resolutions, and staff reports
• Printing and mailing of notices
• Public hearing script and protest tabulation support
• Ballot packets, printing, and mailing
• Ballot tabulation and certification support
• Levy roll submitted to Alameda County
Previous Actions
• April 3, 2023 - City Council Received Staff Presentation on the Status of the Stormwater Fund
• May 1, 2023 - City Council Adopted Resolution No. 2023-044 to Approve and Authorize City Manager to Execute a Consulting Services Agreement with HF&H Consultants for Implementation of Prop 218 Voting Process for Proposed Stormwater Rates
• April 2, 2024 - City Council Adopted Resolution No. 2024-030 Declaring Intention to Initiate a Proceeding to Obtain Approval of an Amendment of the City’s Stormwater Fee, a Property-Related Fee Conforming to Article XIII D, Section 6 of the State Constitution
• April 2, 2024 - City Council Adopted Resolution No. 2024-031 Adopting Ballot Procedures for the City’s Stormwater Fee Amendment
• May 20, 2024 - City Council Adopted Resolution No. 2024-001 PA Directing the City Manager to Vote “Yes” for City of San Leandro Owned Parcels (Stormwater Fee Amendment)
• May 20, 2024 - City Council Adopted Resolution No. 2024-044 Finding that a Majority Protest Does Not Exist (Stormwater Fee Amendment)
• July 15, 2024 - City Council Adopted Resolution No. 2024-102 Accepting the Tabulation Results for the City’s 2024 Stormwater Fee Amendment, A Property-Related Fee Conforming to Article XIII D, Section 6 of the State Constitution
Legal Analysis
City Attorney reviewed the Consultant’s requested edits to the City’s standard consultant services agreement and approved them as to form.
Financial Impacts
There are insufficient Storm Water funds available in the FY 2027 adopted budget to fund the consulting services agreement with SCI Consulting Group.
The FY 2027 adopted budget includes an appropriation of $50,000 in the Stormwater Fund. An additional appropriation of $229,048 in carryforward funds from FY 2026 is required to ensure that there is a total appropriation of $279,048 in the Stormwater Fund for the consulting services agreement with SCI Consulting Group.
ATTACHMENTS
A: Resolution for CSA with SCI Consulting Group
B: SCI Consulting Group Scope of Work
C: SCI Consulting Group Compensation Schedule
PREPARED BY: Kerry Parker, Environmental Services Manager, Public Works Department