CC Resolution No. 20-090 Approving the Renewal and Collection of the Existing 2019 Clean Water and Storm Protection Fee for Fiscal Year 2020-2021RESOLUTION NO. 20‐090
A RESOLUTION OF THE CUPERTINO CITY COUNCIL
APPROVING THE RENEWAL AND COLLECTION OF THE EXISTING 2019
CLEAN WATER AND STORM PROTECTION FEE FOR FISCAL YEAR
2020‐2021
WHEREAS, on March 5, 2019, the City Council of the City of Cupertino
adopted Resolution 19‐022 initiating proceedings to obtain approval of the
proposed 2019 Clean Water and Storm Protection Fee (“Fee”), which is a property
related fee conforming to Article XIII D, Section 6 of the California Constitution,
and approved the Fee Report for the Water Quality and Flood Protection Fee (“Fee
Report”) which sets forth the basis and the amount of the 2019 Clean Water and
Storm Protection Fee on various parcels of land in order to finance, in compliance
with Article XIIID of the Constitution, the costs of the City’s Clean Water and
Storm Protection Program; and
WHEREAS, on March 18, 2019, a notice of public hearing was mailed to all
property owners whose property would be subject to the Fee, in accordance with
California Health and Safety Code Section 5473.1; and
WHEREAS, on May 7, 2019, the City Council adopted Resolution 19‐041 finding
that a majority protest does not exist and ordering a mailed ballot proceeding for
the proposed Fee proceeding in accordance with Article XIII of the Constitution,
Section 53755.5 of the Government Code; and
WHEREAS, on May 7, 2019, the City Council introduced Ordinance No. 19‐2183
establishing Chapter 3.38 of the Municipal Code to establish the Clean Water and
Storm Protection Fee; and
WHEREAS, on May 17, 2019, ballots were mailed to all property owners whose
property would be subject to the Fee; and
WHEREAS, on July 17, 2019, by its Resolution 19‐096 the City Council adopted
Ordinance No. 19‐2183 establishing Chapter 3.38 of the Municipal Code, found
that the Fee was approved by 51.15% of the returned ballots from property owners
of the property subject to the Fee and thereby ordered that the Fee for fiscal year
2019‐20 be levied at the rates specified in the Fee Report; and
Resolution No. 20‐090
Page 2
WHEREAS, Sections 3.38.040 through 3.38.070 of the Ordinance establishing the
2019 Clean Water and Storm Protection Fee allow the City Council to review the
Fee annually and apply a rate increase based on the change in the Consumer Price
Index (“CPI”) up to a maximum increase of 3% in any single year, and to collect
the Fee on the property tax roll in the same manner, by the same persons, and at
the same time as, the general taxes; and
WHEREAS, the City Council of the City of Cupertino finds and determines as
follows:
1. There is a need in the City to continue collecting the Clean Water and Storm
Protection Fee to cover the costs of the Clean Water and Storm Protection Program;
and
2. 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 to be charged the Fee. These relationships or nexus are
described in more detail in the above referenced Fee Report; and
3. The amounts of the Fee for each category of property, as set forth below in
the Schedule of Charges, are reasonable amounts, because the amounts are based
on the methodology established in the Fee Report.
NOW, THEREFORE, BE IT RESOLVED, by the City Council, that:
1. The City Council exercises its independent judgment and finds that this
Resolution does not constitute a project under the requirements of the California
Quality Act of 1970 and the State CEQA Guidelines (collectively, “CEQA”)
because it has no potential for resulting in physical change in the environment,
either directly or indirectly. In the event that this Resolution is found to be a
project under CEQA, it is subject to the exemption contained in CEQA Guidelines
section 15061(b)(3) because it can be seen with certainty that there is no possibility
that continued collection of an existing fee, with no change in use of the fee, may
have a significant effect on the environment. In this circumstance, the Resolution
continuing to charge the Clean Water Act and Storm Protection Fee would have
no effect on the environment because it does not involve any change in an existing
City program.
Resolution No. 20‐090
Page 3
2. Charges. The 2019 Clean Water and Storm Protection Fee shall continue to
be charged to each parcel within the City to contribute to the costs of the City’s
Clean Water and Storm Protection Program. The Fee charged to each parcel will
not be increased for Fiscal Year 2020‐2021.
3. Use of Revenue. The revenue derived from said Fee shall be used in
connection with implementing and enforcing Chapters 3.38 of the Cupertino
Municipal Code titled “Clean Water and Storm Protection Fee” and Chapter 9.18
titled “Stormwater Pollution Prevention and Watershed Protection.”
4. Schedule of Charges.
a. Annual fees for each category of property will be assessed and collected
as follows:
Resolution No. 20‐090
Page 4
5.Judicial 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.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 7th day of July, 2020, by the following vote:
Vote Members of the City Council
AYES: Scharf, Paul, Chao, Sinks, Willey
NOES: None
ABSENT: None
ABSTAIN: None
SIGNED:
___________________ ________
Steven Scharf, Mayor
City of Cupertino
_________________________
Date
ATTEST:
_________________________________
Kirsten Squarcia, City Clerk
_________________________
Date
7/29/2020
7/29/2020
EXHIBIT A
ENGINEER'S REPORT
ASSESSMENT OF FEES FOR STORM DRAINAGE PURPOSES
NONPOINT SOURCE POLLUTION PROGRAM
A. Program Description and Purpose
The purpose of this assessment is to collect fees to fund the City of
Cupertino's Nonpoint Source Pollution Prevention Program mandated by the
Environmental Protection Agency (EPA) and the Clean Water Act.
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, trash, sediment and chemicals which accumulate on
streets, in neighborhoods, at construction sites, in parking lots, and on other
exposed surfaces are washed off by rainfall and carried away by stormwater
runoff (via city 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 City's storm
drainage system without treatment directly to the Bay. Many of these
pollutants are hazardous to aquatic and human life.
The City of Cupertino ha s implemented several mandated and pro-active
programs to mitigate this problem. Among other activities, these programs
include an illegal storm drain discharge investigation and elimination
complaint response program; scheduled proactive inspections of outdoor
housekeeping practices at business sites within the City; bi-weekly sweeping
of residential streets and weekly sweeping of commercial streets; installation
of trash capture devices and curb drain inlet screens to prevent litter from
entering the City's storm drainage system; inspection and cleaning of storm
drain structures and trash capture devices; public education and engagement
with teachers and students, educational activities offered at City events; and a
popular, unique, and well- established District-wide third-grade creek
education & field trip program led by the City's naturalist at McClellan Ranch
Preserve and Stevens Creek.
The State San Francisco Bay Regional Water Quality Control Board (Water
Board) approved the first Municipal Regional Permit (MRP) on October 14,
2009 and, on November 18, 2015, adopted the second regional permit (MRP 2)
with additional requirements that became effective on January 1, 2016. MRP 2
was issued to the City of Cupertino and 75 agencies or co-permittees which
discharge storm water through municipal drainage systems to local creeks
and the San Francisco Bay. The City of Cupertino and 14 other co-permittees
in Santa Clara County are members of the Santa Clara Valley Urban Runoff
Pollution Prevention Program (SCVURPPP) which works collaboratively to
maintain compliance with MRP 2. In addition to conducting local activities,
City staff work closely with the other SCVURPPP jurisdictions to implement
pollution prevention, source control, monitoring, and educational programs.
MRP 2 includes several mandated requirements that are being phased in over
the five-year permit term. The SCVURPPP has increased its co-permittee
membership assessments to help meet these requirements.
In fiscal year 2019-2020, the Nonpoint Source budget was increased to
accommodate a new street sweeping contract, enhanced assessment and
maintenance of aging structures, and additional staff to clean and maintain
the city’s storm drain system. The City’s storm drain system consists of more
than 2000 drain inlets, 146 of which are fitted with full trash capture devices,
and 90 miles of storm drainage pipes. Maintenance of these assets includes
twice per year cleaning of inlets and trash capture devices and protects the
city from flooding while preventing stormwater pollution. The budget for FY
2020-2021 includes those ongoing enhancements along with increased
allocations of staff time to more accurately reflect time spent on stormwater
pollution prevention tasks
B. Estimated Expenditures
The total estimated (amended) budget to implement the required programs
described above for fiscal year 2019-2020 was approximately $1,714,869.
The breakdown of budgeted expenses and actual expenses for the partial
fiscal year are estimated as follows:
FY 19-20
Amended Budget
FY 19-20 Actuals
7/1/2019 - 6/17/2020
Staffing $ 535,826.00 $ 528,196.85
Materials $ 42,696.00 $ 32,248.97
Contract Services $ 944,217.00 $ 468,730.28
Allocations & Contingencies $ 144,424.00 $ 88,521.75
Cost Share Programs $ 47,706.00 $ 828.72
Total $ 1,714,869.00 $ 1,118,526.57
Activities undertaken within the Nonpoint Source program for permit
compliance:
Countywide Program
SCVURPPP Program Assessment - Regional Permit Implementation
Regional Watershed Monitoring (administered by EOA, Inc.1)
State NPDES 2 Permit Fees
Countywide Public Education and Municipal Staff Training
CA Stormwater Quality Association (CASQA) Participation
County Policy Development
Operations and Maintenance
Catch Basin and Frequent Trash Capture Device Cleaning
Installation of Trash Capture and Retractable Screen Devices
On-call Emergency Spill and Discharge Response
Staff and Equipment to Implement City's Mandated Litter Reduction Plan
Street Sweeping (weekly in commercial areas)
City Public Education Awareness
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
Staff to Conduct Public Education, Training and Outreach
CA Product Stewardship Council membership (Extended Producer
Responsibility)
Local Programs
Development, Administration, and Evaluation of Mandated Programs
Environmental Impact and New and Redevelopment Review
Ordinance Revisions
Database Maintenance
Illegal Discharge Complaint Investigation and Enforcement
Industrial/Commercial Discharger Inspection Program
1 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
2 NPDES: National Pollutant Discharge Elimination System
Construction Site Inspection Program
Verification of Treatment Measure Maintenance by Private Property
Owners
Low Impact Development (LID) and Green Infrastructure Management
Litter Reduction Education and Enforcement
City's Participation in Multiple Countywide and Regional Programs
Annual Parcel Stormwater Fee Assessment
Other Staffing Costs
Contingencies and Cost Allocations
C. Revenue And Assessment
Revenues generated to fund this program come from two fees assessed on
parcels in Cupertino. The Storm Drain Fee was established in 1992. Revenues
from that fee are inadequate to meet the expenses associated with
maintaining the storm drain system in Cupertino and ensuring compliance
with the MRP, so the Clean Water and Storm Protection fee was established
in 2019 and first appeared on 2019-2020 property tax bills. As assessed on the
2019-2020 tax roll and direct-billed, the revenue from the two fees will total
$1,477,387.
1992 Storm Drain Fee
Fees 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.
Certain parcel-owners such as schools and government entities were exempt
from such fees in 1992 and as such are not assessed this fee.
The fee assessed on the 2019-2020 tax roll totals $372,741. Those fees were
applied to 15,911 single-family residential parcels, 378 commercial parcels,
and 236 parcels in other categories (office, institutional, school park, vacant,
etc.).
Each parcel was identified and a fee established in a separate report
submitted to the County entitled Certification of Special Assessment Annual
Enrollment.
2019 Clean Water and Storm Protection Fee
The Clean Water and Storm Protection Fee is imposed on properties that shed
water, directly or indirectly, into the City’s storm drainage system, and is
calculated to be proportionate to the amount of stormwater runoff
contributed by each parcel, which is in turn proportionate to the amount of
impervious surface area. The details of the methodology are described in the
Fee Report as prepared by SCI in February of 2019 that is attached to the
Clean Water and Storm Protection fee ordinance. The calculations are
informed by the City’s 2018 Storm Drain Master Plan, which includes an
anlysis of % of impervious area for Cupertino, and rates are further calculated
by parcel size and land use category. Unlike the 1992 fee, the Clean Water and
Storm Protection fee is subject to treatment under prop 218 and as such all
parcels are assessed the fees without exemptions.
The fees assessed on the 2019-2020 tax rolls totalled $1,005,692.84. Those fees
were applied to 15,911 single-family residential parcels, 492 commercial
parcels, and 115 parcels in other categories (office, institutional, school park,
vacant, etc.). Fees billed directly to parcel-owners that do not receive
property tax bills (such as schools and government) totaled $98,952.98
applied to 88 parcels.
The total revenue from the Clean Water and Storm Protection fee for 2019-
2020 is $1,104,646.
D. Annual Review
The Clean Water and Storm Protection Fee included annual review
requirements beginning with fiscal year 2020-2021 as described in ordinance
19-2183 (Chapter 3.38 of the Cupertino Municipal Code). Section 3.38.040
describes the review process and allows for an annual increase based on the
change in CPI as of December each year up to 3% maximum if actual
additional costs are incurred.
The expenses attributed to the Nonpoint Source Program during the partial
year since the new fee was adopted were less than budgeted and it is
anticipated that by the end of fiscal year 2019-2020, expenses will not have
exceeded revenues and no increase is recommended. Several factors
contributed to coming in under budget and below the revenue amount that
are not reflective of the ongoing cost of the program. Most significantly,
staffing allocations needed to be adjusted to accurately reflect the workload,
and those allocations will go into effect in fiscal year 2020-2021. Additionally,
the program was understaffed for a portion of the year, creek education field
trips that were planned for the spring were cancelled due to COVID-19 so
busing expense moneys went unspent, and a project to enhance the creek
education curriculum was delayed due to COVID-19 as well. The adopted
budget for fiscal year 2020-2021 anticipates full staffing and full use of funds
that will exceed projected revenues, coming in at $1,815,092, so any fund
balance realized in the current fiscal year will be needed to meet expenses in
the next.
A full year of expenses and revenues for the Nonpoint Source Program will
be examined by external auditors and reviewed by the City’s Audit
Committee in advance of the 2021-2022 fee renewal process.
____________________________
Roger Lee
Director of Public Works