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CC Resolution No. 14-147 Approving the renewal and collection of the existing storm drain fees at no increase in rates for fiscal year 2014-2015 RESOLUTION) NO. 14-147 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING THE RENEWAL AND COLLECTION OF THE EXISTING STORM DRAIN FEES AT NO INCREASE IaN RATES FOR FISCAL YEAR 2014-20.15 WHEREAS, the City Council of the City of Cupertino enacted Municipal Code Chapter 3.36 in part to meet the City's federally mandated Stormwater Pollution Prevention and Management Program and establishing the authority for imposing and charging a storm drainage service charge; and WHEREAS; a report entitled "Engineer's Report, Assessment of Fees for Storm Drainage Purposes Nonpoint Source.Pollution Program (Exhibit A)," concerning the method of assessing an environmental fee to fund the City's Stormwater Management Program was prepared by the Director of Public Works pursuant to Section 3.36.080(B) of the City's Municipal Code and filed with the City Clerk on April 15, 2014; and WHEREAS, the report, filed with the City Clerk, was available for public inspection and review twenty (20) days prior to this public:hearing; and WHEREAS, the City Council of the City of Cupertino finds and determines as follows: 1. After considering the report entitled "Engineer's Report, Assessment of Fees for Storm Drainage Purposes Nonpoint Source Pollution Program" and the testimony received at this public hearing, the City Council hereby approves the report and herein incorporates it in the resolution. 2. There is a need in the City for -the continuation of a storm drainage service charge to cover the costs of the federally mandated program as heretofore described, in that properties within the city will not otherwise contribute a portion of costs toward this program and without the availability of such storm drainage service charge, the City's general fund will eventually be negatively impacted in such a manner as to jeopardize other essential services. 3. The facts and evidence presented establish that there is a reasonable relationship between the need for this fee and the impacts for which this fee shall be used, and that there is a reasonable relationship between the fee's use and the properties, which are 1 to be charged this fee. These relationships or nexuses are described in more detail in the above referenced report. 4. The amounts of the fee for each category of property, as set forth below, are reasonable amounts as such fees are based on runoff coefficients established in the Master Storm Drain Study and below the cost recovery. 5. It is further. determined that each and every parcel of land contained in said report will, and has received a benefit of flood control from the storm drainage system and that the charges imposed herein on each such parcel are in conformity with, and in fact lower than, the benefits that such parcel has received as further described in the report. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Cupertino, that: 1. Charge. The storm drainage service charge shall continue to be charged to each parcel within the city to contribute to the costs of the City's federal and state requirements for Nonpoint Source Control and a Stormwater Management Program. 2. Use of Revenue. The revenue derived from said charge shall be used in connection with implementing and enforcing Chapters 3.36 of the Cupertino Municipal Code entitled "Storm Drainage Service Charge" and Chapter 9:18 entitled "Stormwater Pollution Prevention and Watershed Protection." 3. Schedule of Charges. (a) Annual fees for each category of property will be assessed and collected as follows: Residential premises $ 12.00/parcel Apartment premises $ 144.00/acre Commercial/Industrial premises $ 144.00/acre Unimproved/Recreational $ 36.00/acre (b) The following public properties are exempt from, and shall not be assessed the environmental fee: 2 Cupertino Sanitary District Santa Clara County Santa Clara Valley Water District Southern Pacific Transportation Company State of California The Santa Clara County Fire Department The City of Cupertino The Cupertino Union School District The Foothill-De Anza Community College District The Fremont Union High School District The Midpeninsula Regional Park District United States of America 4. Tudicial Action to Challenge this Resolution. Any judicial action or proceeding to challenge, review, set aside, void, or annul this resolution shall be brought within 120 days from the date of its adoption. 3 PASSED AND ADOPTED at a regular meeting of the City-Council of the City of Cupertino this 61" day of May, 2014, by the following vote: Vote Members of the City Council AYES: Wong, Sinks, Chang, Mahoney, Santoro NOES: None ABSENT: None ABSTAIN: None ATTEST: APPROVED: 1�aA Grace Schmidt, City Clerk Gilbert Wong, Mayor 4 EXHIBIT A ENGINEER'S REPORT ASSESSMENT OF FEES FOR STORM DRAINAGE PURPOSES NONPOINT SOURCE POILLUTION PROGRAM A. Program Description and Purpose The purpose of this assessment is to collect fees for funding the City of Cupertino's Nonpoint Source Pollution Program mandated by the Environmental Protection Agency (EPA). Regulations by the EPA and the State of California require cities to take specific actions to eliminate or control pollutants in waters of the State. The term "nonpoint source pollution" represents a process whereby pollutants, debris, sediment and chemicals which accumulate on streets, in.neighborhoods, construction sites, parking lots and other exposed surfaces are washed off by rainfall and carried away by stormwater runoff(via drain inlets and pipes installed for flood control) into local creeks and the San Francisco Bay. Sources of these pollutants may include automobile exhaust and oil, pesticides, fertilizers, eroded soil, detergents, pet waste, paint, litter and other material carried through the storm drainage system—without treatment—directly to the Bay. Many of these pollutants are hazardous to aquatic and human life. The City of Cupertino has implemented several :mandated and optional programs to mitigate this problem. Among other activities, these programs include elimination of illegal discharges into storm drains, street sweeping, installation of trash capture devices and curb drain inlet screens to prevent litter from entering drain inlets, inspection and cleaning of storm drain structures, public education at City events and a City and school district-wide third-grade creek education & field trip program. The State San Francisco Bay Regional Water Quality Control Board (Water Board) approved the Municipal Regional Permit (MRP) on October 14, 2009. The permit was issued to 76 agencies or co-permittees (including the City of Cupertino) which discharge storm water through drainage systems to the San Francisco Bay. The MRP includes several mandated requirements that are being phased in over five years. The Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) has increased its co-permittee assessments to meet these requirements. With these and other MRP requirements on the horizon, the City has increased the NPS budget to ensure continued compliance. For FY 2014-.2015, the fee will provide revenue of $370,000, leaving approximately $169,000 to be paid from the General Fund. While Proposition 218 essentially prevents the City from increasing stormwater fees, it is important that the fees in place since 1992 continue to be collected. 5 B. Estimated Expenditures The total estimated budget to implement the required programs described above for fiscal year 2014-2015 is approximately$539,000. The breakdown of costs is estimated as follows: Countywide Program $ 140,000 SCVURPPPI Program Fee- Regional Permit Implementation Regional Watershed Monitoring (administered by EOA, Inc.2) State NPDES3 Permit Fees Countywide Public Education and Municipal Staff Training, CA Stormwater Quality Association (CASQA) Participation Annual Parcel Stormwater Fee Assessment for County Policy Development Operations and Maintenance $ 190,000 Catch Basin and Full Trash Capture Device Cleaning Street Sweeping On-call Emergency Spill Response Staff and Equipment to Implement Litter Reduction Measures City Public Education Awareness $ 50,000 Public Outreach Materials & Events Third-Grade Creek Education for Local Schools Support High School Students' Watershed and Creek Education Support De Anza College and Community Environmental Education Community Engagement - Creek Cleanup & Watershed Monitoring Events Local Programs $ 159,000 Development, Administration and Tracking of Mandated Programs Environmental Impact Review and Ordinance Revision Database Administration Illegal Discharge Complaint Investigation and Enforcement Industrial/Commercial Inspection Program Construction Site Inspection Program Verification of Treatment Measure Maintenance by Private Property Owners Low Impact Development (LID) Oversight Litter Reduction Education and Enforcement TOTAL $ 539,000 Santa Clara Valley Urban Runoff Pollution Prevention Program,a collaborative of 15 municipalities and agencies in Santa Clara County(Cupertino is a SCVURPPP member and co-permittee) 2 EOA,Inc.is the environmental engineering and regulatory consulting firm that manages the Santa Clara Valley Urban Runoff Pollution Prevention Program for the co-permittees. www.eoainc.com 3 National Pollutant Discharge Elimination System 6 C. Revenue and Assessment Revenues generated to fund this program are based on a factor calculated from the City's Master Storm Drain Study runoff coefficients and average;area of impervious surface per acre based on type of land-use development. The factor for each category is based on a comparison to an average residential parcel assigned a factor of one. The following table represents the approximate revenue stream for different categories of development. No. Parcels Annual Revenue Development Category Factor or Acre Cost/Unit Generated Residential 1 15,675 :Pcls $ 12.00 $ 188,100 Commercial/Industrial/ Apartments 12 1,049.47 Ac $ 144.00 $ 151,124 Unimproved/Recreational 3 877.75 Ac $ 36.00 $ 31,599 TOTAL $ 370,823 Each parcel has been identified and a fee established in a separate report entitled PARCEL ASSESSMENT REPORT. CTftm Borden Director of Public Works 4/14/14 7