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HomeMy WebLinkAboutCC 06-02-2026 Item No. 14 Storm Drain Fees_Supplemental ReportCC - 6-02-2026 #14 Storm Drain Fees Supplemental Report PUBLIC WORKS DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 • FAX: (408) 777-3333 CUPERTINO.GOV CITY COUNCIL STAFF REPORT SUPPLEMENTAL 1 Meeting: June 2, 2026 Agenda Item # 14 Subject Approval of Fiscal Year 2026-27 renewal of the 1992 Storm Drain Fee (with no increase) and renewal of the 2019 Clean Water and Storm Protection Fee with a 3% increase. Recommended Action 1. Adopt Resolution No. 26-067 (Attachment A) approving the renewal and collection of the 1992 Storm Drain Fee with no increase in rates for Fiscal Year (FY) 2026-27. 2. Adopt Resolution No. 26-068 (Attachment B) approving the renewal and collection of the 2019 Clean Water and Storm Protection Fee with a 3% increase in rates for FY 2026-27. Background: Staff’s responses to questions received from councilmember are shown in italics. Q1: Your staff report states that the 1992 Storm Drainage Service Charge Fee has "no mechanism to enable an annual increase." Can you explain how this came to be, and what does it take to create a mechanism to increase the fee - at least by a minimal CPI when needed? Is this outside the authority of the City Council? Staff response: Thank you for the question. This very question was contemplated by the Cupertino City Attorney in 2010 and outside expertise was sought at that time to evaluate the question. The 1992 fee, as established, allowed City Council to modify the amount of the fee, but did not define any methodology, schedule, or clearly defined formula for adjustment. Prop 218, as enacted in 1996, only allows increases to existing fees if the increase would be in accordance with such a schedule of adjustments with clearly defined formulas. Lacking that, increase to the 1992 fee (including establishing a defined adjustment schedule) could only happen with a majority vote of property owners or a two-thirds vote of the electorate via a ballot process. This question was again reviewed in 2019 during the process of establishing the 2019 Clean Water and Storm Protection Fee. At that time two options were evaluated – take the existing fee to a vote of the property owners or electorate under the requirements of Prop 218 and ask for an increase, or preserve the existing fee and go to the property owners to vote on establishing a second fee. In March 2019, City Council received information on this topic and adopted ballot procedures for the 2019 Clean Water and Storm Protection fee, resulting in a vote by property owners. Attachments Provided with Original Staff Report: A – Draft Resolution 1992 Fee B – Draft Resolution 2019 Fee C – Clean Water and Storm Protection Fee Ordinance with Fee Report D – Calendar Year 2025 AUP Attachments Provided with Supplemental 1: N/A